Household energy bills will fall by 7% from July after the latest energy price cap was revealed by Ofgem today.
The cut fuelled a positive day for the UK economy after retail sales figures topped forecasts and consumer confidence showed improvement.
On the corporate front, Games Workshop forecast a big jump in annual sales and profits.
FTSE 100 Live Friday
- Retail sales top forecasts
- Ofgem price cap falls
- Games Workshop profits surge
Market update: FTSE 100 airlines enjoy tailwinds, Games Workshop retreats
10:15 , Graeme EvansThe shares of Rolls-Royce today broke new ground above 850p as the engines giant joined airlines easyJet and IAG at the top of a stronger FTSE 100 index.
Rolls rallied by another 2% or 17p to a record 856p, continuing the strong run that has taken the stock from near 100p in early 2023 and 570p at the start of 2025.
Low-cost airline easyjet put back 18p to 567.8p as investors warmed to this week’s interim results, while British Airways owner IAG cheered 6.4p to 332.8p.
The advance by the widely-held trio was accompanied by a rise of 9.6p to 462.6p for GKN Aerospace owner Melrose Industries.
The FTSE 100 index improved 37.07 points to 8776.33 amid expectations that leading Wall Street benchmarks are set to open slightly higher.
On the fallers board, retailers Marks & Spencer and JD Sports Fashion failed to benefit from a batch of supportive updates on the cost-of-living front.
The improved spending outlook was driven by a 7% cut in the Ofgem energy price cap, as well as an upturn in consumer confidence in the latest GfK report.
Official retail sales figures also offered encouragement after the impact of April’s sunny weather on food sales led to a forecast-beating monthly jump of 1.2%.
M&S fell 8.4p to 375.6p and JD Sports dropped 1.1p to 84p at the end of a week of volatility for their shares after they posted annual results on Wednesday.
Warhammer retailer Games Workshop also featured on the fallers board, declining from a record level after a strong year-end update led to profit taking by investors.
The shares fell 590p to 15,280p as Peel Hunt cut its recommendation from Buy to Add, noting a 19% rise for the FTSE 100 newcomer so far this year.
However, the bank lifted its price target to 16,500p as today’s update showed record licensing revenues of £50 million alongside a forecast for annual profits in the year to 1 June of not less than £255 million.
That’s up 26% on a year ago and compares with Peel Hunt’s £240 million forecast.
The FTSE 250 index rose 0.2% or 40.87 points to 20,840.53, with the shares of AJ Bell up 7% or 31.2p to 488.4p after the investment platform reported a 12% rise in half-year profits to £68.8 million.
Sterling extends strong run after retail sales boost
09:36 , Graeme EvansThe pound has risen 0.5% to a fresh three-year high against the US dollar, lifted by today’s batch of positive updates on the UK economy.
The move to $1.348 against an under-pressure greenback means sterling has gained by more than 6% since 7 April and by 10% since mid-January.
Today’s advance to the highest level since February 2022 was aided by strong retail sales, as well as an upturn in consumer confidence and today’s fall in the Ofgem energy price cap.
UBS Global Wealth Management believes a level of $1.40 is on the horizon after updating its forecasts for the year to next June.
It said: “The latest pound-dollar readings have been largely dollar-driven, with other currencies such as the euro also benefiting against the greenback.
“However, UK growth also held up decently and the latest inflation print surprised to the upside.
“While we acknowledge sustainably elevated inflation in the UK, we are wary not to overinterpret the numbers given annual resetting of regulated prices and other temporary factors.
“We thus hold on to our expectation of “only” quarterly cuts by the Bank of England, which should lend some support to the pound over time.”
New record for Rolls-Royce shares, AJ Bell up 8%
08:34 , Graeme EvansThe FTSE 100 index has risen 27.38 points to 8766.64, with airline groups IAG and easyJet among the best performing stocks with gains of 1%.
They were joined on the risers board by Rolls-Royce, which lifted another 14p to set a fresh record of 853p.
On the fallers board, a strong week for Vodafone on the back of annual results ended on a downbeat note as shares drifted half a penny to 78.5p.
Games Workshop also retreated despite today’s strong year-end update, with shares off their record high with a decline of 530p to 15,340p.
The FTSE 250 index rose 22.05 points to 20,821.71, led by AJ Bell as a 12% improvement in half-year profits to £68.8 million helped the investment platform’s shares to rally 8% or 37.3p to 495p.
Games Workshop licensing revenues hit record, profits jump
07:44 , Graeme EvansGames Workshop, the maker of Warhammer, today forecast a big jump in annual profits to more than £250 million.
In a brief update, the FTSE 100-listed company said core revenues will be not less than £560 million for a rise of at least 13%.
It generated a record £50 million from licensing, up from £31 million last time.
The company recently secured a deal with Amazon.com for the adaption of the Warhammer 40,000 universe into films and TV series.
The group’s pre-tax profit for the year to 1 June is estimated to be not less than £255 million, up from £203 million in 2023/24.
It said: “Licensing revenue in the period is at a record level and we are not expecting this to be repeated in 2025/26. Licensing remains a significant area of focus.”
Consumer confidence shows improvement
07:36 , Graeme EvansGfK’s long-running consumer confidence index today increased by three points but remains firmly in negative territory at minus 20.
The improvement was driven by a five-point increase in confidence in personal finances over the coming year and a four-point boost in the outlook for the general economy.
The major purchase index – an indicator of confidence in buying big ticket items – rose three points to minus 16, its highest level since the end of last year.
The survey was taken at the beginning of this month, following the recent round of “Awful April” household bill rises.
Ofgem energy price cap falls
07:15 , Graeme EvansThe typical household energy bill is to fall by about £11 a month, the energy regulator said today.
Updating its quarterly price cap, Ofgem said the price for a typical household who use electricity and gas and pay by direct debit will go down by 7% to £1,720 a year.
This is £152 per year higher than the cap set for the same period last year.
Ofgem said a recent fall in wholesale prices accounted for around 90% of the fall for the July to September period. The remainder is primarily due to changes to the operating cost allowances energy suppliers can recover.
Retail sales jump, fine weather boosts food demand
07:09 , Graeme EvansRetail sales volumes rose by a bigger-than-expected 1.2% in April, the Office for National Statistics said today.
The fourth monthly increase in a row benefited from fine weather after food stores reported strong trading.
The figure, which compares with City forecasts for growth of about 0.3%, follows a rise of 0.1% in March.
The ONS said sales volumes rose by 1.8% in the three months to April, when compared with the three months to January.
Food stores sales volumes rose by 3.9%, mostly recovering from falls in February and March.
Supermarkets, specialist food stores such as butchers and bakers, and alcohol and tobacco stores all grew during the month, with some retailers attributing this to the good weather.
Non-food stores sales volumes fell by 0.7% over the month. This was because of falls in clothing stores and other non-food stores, having posted strong growth in March.
FTSE 100 seen higher as Asia markets rally
07:00 , Graeme EvansA steadier session on Wall Street means the FTSE 100 index is poised to resume its recent gains, with futures trading pointing to a rise of about 0.2%.
London’s top flight ended yesterday down by 0.5% or 47.20 points at 8739.26, having been more than 1% lower as higher bond yields weighed on global stocks.
The Dow Jones Industrial Average followed Wednesday’s 1.9% decline with an unchanged performance, while the Nasdaq Composite closed 0.3% higher.
Asia markets are higher, with the Hang Seng index up 0.5% and the Nikkei 225 about 0.6% stronger after Japan’s annual inflation rate of 3.6% met forecasts.
