FTSE 100 Live Wednesday
- Japan deal lifts markets
- Court clears jailed ex-traders
- Wetherspoon sales cheer
Market update: Trade deal lifts FTSE 100 to new record, Informa up 5%
10:14 , Graeme EvansAstraZeneca and GSK shares were among today’s FTSE 100 index beneficiaries as risk appetite surged on the back of Japan’s US trade deal.
London’s top flight added another 0.6% to a fresh record of 9075.84, while benchmarks in Paris and Frankfurt rallied 1% on hopes that a European deal on tariffs is imminent.
Tokyo’s Nikkei 225 earlier jumped 3.5% after tariffs on America’s fifth biggest trading partner were set at 15% compared with a previously threatened 25%.
The developments sparked a relief rally for the country’s automotive manufacturers, led by a rise of 18% for Mazda and 14% for Toyota.
Pharmaceutical stocks fared well in London as hopes that the industry may yet duck President Trump’s threatened 200% tariffs helped AstraZeneca rise 3% or 276p to 10,628p and GSK by 20p to 1367.5p.
Transatlantic retailer JD Sports Fashion also lifted 3% or 2.8p to 88.6p and the US-focused Sunbelt equipment hire business Ashtead added 122p to 4857p.
The best performing blue-chip stock was the business events and academic publishing group Informa, which lifted 5% or 37.6p to 863.6p on half-year results.
It upgraded full-year guidance after reporting 24% growth in adjusted operating profit, while the company also confirmed £150 million of additional share buybacks.
A flight from safe havens led to falls of 2% for Centrica, SSE, Severn Trent and United Utilities at the bottom of the FTSE 100. Silver miner Fresnillo also retreated 16p to 1450p following its second quarter production update.
The FTSE 250 index cheered 80.20 points to 22,014.46, led by an 8% rise for online fashion retailer ASOS.
JD Wetherspoon rose 4% or 28p to 808p after the pub chain reported like-for-like sales growth of 5.1% in the final quarter of its financial year.
Warm weather boosted the performance, meaning the operator of 794 pubs is on track to meet expectations in annual results in October.
Construction materials business Breedon fell 7% or 28.6p to 359.4p after warning that full-year results will be at the low end of the current range of market forecasts.
Chief executive Rob Wood said it had been a challenging first half of the year but that the group remains well-placed for when construction activity improves.
Broker Peel Hunt said Breedon remained in good shape as it retained its Buy recommendation and target price of 565p.
Heathrow fire disruption cost seen at “tens of millions”
10:00 , Graeme EvansThe boss of Heathrow today insisted the “right decisions were taken by the right people” during the dramatic shutdown of the airport in March caused by an electricity substation fire.
Chief executive Thomas Woldbye said the cost of the disruption would amount to low double digit millions of pounds and said Heathrow was still considering taking legal action against National Grid.
Heathrow revealed that revenue in the six months to June rose by 1.9% to £1.7 billion while underlying earnings were 0.8% higher at £959 million.
The number of passengers passing through the airport rose 0.3% to 39.9 million. The airport expects to handle around 84 million over the year as a whole but is very close to its current capacity.
Rate-rigging convictions quashed by Supreme Court
09:07 , Graeme EvansTwo financial market traders who were jailed for manipulating benchmark interest rates have had their convictions quashed at the Supreme Court.
Former Citigroup and UBS trader Tom Hayes was found guilty of multiple counts of conspiracy to defraud over manipulating the London Inter-Bank Offered Rate (Libor) between 2006 and 2010.
Carlo Palombo, ex-vice president of euro rates at Barclays bank, was found guilty of conspiring with others to submit false or misleading Euro Interbank Offered Rate (Euribor) submissions between 2005 and 2009.
Japan trade deal sparks European markets rally
08:49 , Graeme EvansEuropean stock markets are trading higher after risk appetite was boosted by Japan’s trade deal with the United States.
Under last night’s agreement, Japan will face a 15% tariff and open its economy to US goods, including cars, trucks, rice and certain agricultural products.
Japan also agreed to invest $550 billion in the US, President Trump said on his Truth Social platform.
Japan is America’s fifth biggest trading partner, making it by far the biggest permanent trade deal the Trump administration has reached so far.
The shares of car makers Toyota and Mazda rose 14% and 17% respectively, while the Nikkei 225 surged 3.5% and the Topix index lifted 3.2% to a new record.
In Europe, the Cac 40 rose 1.2% in Paris and the Dax lifted by 0.7% in Frankfurt amid hopes a deal between the US and European Union could be imminent.
FTSE 100 at new record, AstraZeneca and Informa rally
08:20 , Graeme EvansThe FTSE 100 index has moved deeper into record territory, lifting 0.4% or 32.10 points to 9055.91.
Business events and academic publishing group Informa is the best performing blue-chip stock after it upgraded full-year guidance alongside interim results.
Shares rose 4% or 37.2p to 863.2p as the group reported 24% growth in adjusted operating profit and confirmed £150 million of additional share buybacks.
Pharmaceutical companies GSK and AstraZeneca bolstered the FTSE 100 after their shares lifted 22.5p to 1370p and 260p to 10,612p respectively.
In the FTSE 250, JD Wetherspoon shares were 1.5p higher at 781.5p after the pub chain said it was in line with expectations for the financial year about to end.
Construction materials business Breedon fell 22.2p to 365.8p after warning that full-year results will be at the low end of the current range of market forecasts.
Chief executive Rob Wood said it had been a challenging first half of the year but that he remained confident in medium-term prospects.
JD Wetherspoon on track as weather boosts sales
07:41 , Graeme EvansJD Wetherspoon today said warm weather boosted trading after reporting a 5.1% rise in like-for-like sales for the 12 weeks to Sunday.
The group, which operates 794 pubs, added that profits are in line with expectations after underlying sales lifted 5.1% in the financial year about to end.
Chair Tim Martin said sales volumes have recently overtaken pre-pandemic levels.
He said: “Wine, for example, has shown strong growth, with Villa Maria from New Zealand and Prosecco from Italy both shooting the lights out. Spirits have improved in recent months and whisky volumes are significantly above pre-pandemic levels.
"Draught volumes are performing strongly with Guinness being the standout performer. On the food front, breakfasts, terribly slow post-pandemic, have recovered their lustre and are now well ahead.”
Car makers boosted by Japan trade deal, European futures higher
07:23 , Graeme EvansThe shares of car makers Honda and Toyota are up 11% and 14% respectively after Japan struck a trade deal with the US.
The agreement, which includes a 15% tariff on Japanese exports to the US, helped the Nikkei 225 to rise 3.8% and the Topix index by 3.4%.
It has been reported that the 15% rate will apply to the automotive industry, which accounts for around 30% of Japan’s exports to the US.
President Trump had previously threatened a “reciprocal” tariff rate of 25% on Japan as well as a 25% levy on autos.
UBS Global Wealth Management said: “The US's deal with Japan is better than market expectations, as the lower tariffs on autos could translate into a 0.4 percentage point improvement in Japan’s real GDP growth this year and again in 2026.”
“The deal reduces risks to Japan’s economic growth, in our view, and removes downside risks for the Japanese currency.”
Other stock markets have rallied on hopes that the US might reach trade deals with other countries before the 1 August deadline.
The Hang Seng index is 1.1% higher while futures markets are pointing to gains of about 1% for the Dax and Cac 40 in Frankfurt and Paris respectively.
Nikkei 225 surges on US trade deal, FTSE 100 seen higher
07:01 , Graeme EvansThe FTSE 100 index is seen trading at a new record after stock market sentiment was boosted by Japan’s trade deal with the US.
IG Index futures point to a rise of about 0.5% to 9069 at today’s opening bell.
Last night, London’s top flight outperformed European benchmarks with a rise of 10.82 points to a record close of 9023.81.
On Wall Street, the Dow Jones Industrial Average rose by 0.4% and the S&P 500 index stayed in record territory following an improvement of 0.1% to 6309.62. The Nasdaq Composite fell 0.4%.
Japan’s trade deal boosted the country’s stock market, with the Nikkei 225 up 3.5%.
