Market update: JD kicks on amid FTSE 100 progress, Babcock falls back
10:03 , Graeme EvansJD Sports Fashion shares set a fast pace in a stronger FTSE 100 index today as the retailer benefited from signs of turnaround progress by brand partner Nike.
The Bury-based chain jumped 7% or 5.8p to 87.5p after pre-market dealings on Wall Street showed the US sportswear giant on course for a strong session.
Nike sentiment was boosted by its earnings conference call, including optimism that headwinds are set to moderate after the disruption of its Win Now strategy.
Efforts to clear old stock meant fourth quarter revenues fell by a smaller-than-expected 12%, with the rate of decline set to slow in the current quarter.
Nike said trade tariffs could cost it around an extra one billion US dollars (£727 million) but added it was taking action to offset the hit.
Broker Peel Hunt, which has a price target of 200p on JD shares, said: “Other brand relationships are important, but a recovering Nike is crucial to JD’s fortunes.
“The valuation of JD implies big downgrades ahead but we just do not see it. Hopefully this is the start of a turning point.”
Other stocks in demand in the FTSE 100 included education resources business Pearson, which lifted 29.5p 1082p, and Sunbelt owner Ashtead after a rise of 102p to 4585p.
Banks also fared well as Barclays improved 6.05p to 337.25p, NatWest lifted 8p to 508.2p and Lloyds Banking Group advanced 0.8p to 76.5p.
Their momentum and optimism of a US-China trade deal helped the FTSE 100 index to rise 39.42 points at 8775.02 as global markets ended the week on the front foot.
The Nikkei 225 benefited from last night’s strong performance by Wall Street tech stocks to close above 40,000 for the first time since January, while benchmarks in Paris and Frankfurt improved 1%.
On the FTSE 100 fallers board, BAE Systems dipped 15p to 1872.5p and BT Group eased 0.6p to 191.95p.
Babcock International succumbed to a bout of profit taking in the wake of this week’s results, falling 33p to 1124p as Deutsche Bank switched from Buy to Hold.
The FTSE 250 index, which closed at a 10-month high last night, added another 0.5% or 114.59 points to 21,589.25.
Construction business Kier led the way, rising 4% or 7.5p to 208p after Peel Hunt lifted its price target to 235p. The shares were 115p in April.
Kretinsky named Royal Mail chair, Government gets golden share
09:59 , Graeme EvansCzech billionaire Daniel Kretinsky is to become chairman of Royal Mail after completing the takeover of the postal service.
Kretinsky’s EP Group said that he is to head up the board as chairman of both Royal Mail and its parent company International Distribution Services.
In April, shareholders approved the £3.6 billion takeover deal, giving the more than 500-year-old company a foreign owner for the first time.
Royal Mail’s new owner also said on Friday that it had issued a £1 so-called golden share to the UK Government, as agreed under the deal.
The golden share means the firm must keep Royal Mail’s headquarters and tax residency in the UK.
Car production down a third on a year ago
09:50 , Graeme EvansThe number of new cars and commercial vehicles built in the UK fell for the fifth consecutive month in May, figures show.
Production was down by a third compared to the same time a year ago, said the Society of Motor Manufacturers and Traders (SMMT).
Excluding 2020, when Covid lockdowns saw factories shuttered or running at greatly reduced capacity, it was the lowest performance for the month since 1949.
In the year to date, production is down by almost 13% on 2024, to 348,226, the lowest since 1953.
The SMMT said the reduction was mainly due to ongoing model changeovers, restructuring and the impact of US tariffs.
JD Sports up 7% on Nike read-across, FTSE 100 up 0.3%
08:29 , Graeme EvansJD Sports Fashion shares are top of the FTSE 100 index after brand partner Nike reported a smaller-than-expected drop in quarterly revenues last night.
The Bury-based group rose 7% or 6.1p to 87.8p, its highest level since May.
The FTSE 100 index added 0.3% or 28.63 points to 8764.50, with miners Glencore and Rio Tinto up another 1% as they continue to benefit from a weaker dollar.
Babcock International succumbed to a bout of profit taking by falling 24p to 1133p and BT Group dipped a penny to 191.6p.
Today’s advance by the FTSE 100 follows another strong session on Wall Street.
Richard Hunter, head of markets at Interactive Investor said: “For all the trials and tribulations this year, leading global markets are bumping against the ceiling of new record highs.
“Investors have fresh wind in their sails, perhaps most starkly illustrated by the benchmark S&P 500 in the US, which has rallied by more than 20% since its April low to come within just a few points of its highest ever level.
“The 30% rebound of the technology heavy Nasdaq is even more striking, as the “Magnificent Seven” have come back into fashion.”
Health and wellness firms among UK's fastest growing
08:12Health and fitness brands are among Britain’s fastest-growing companies as entrepreneurs tap into blossoming lifestyle trends, new rankings show.
Research for the annual Sunday Times 100 found that Glasgow-based activewear brand DFYNE took the top spot this year.
In second place is Healf, a London-based retailer selling health products from vitamins and minerals to fitness watches and sleep masks.
Tech momentums lifts Nikkei 225, Hang Seng index lower
07:40 , Graeme EvansTokyo’s Nikkei 225 today outperformed other Asian markets, lifting by 1.4% to close above 40,000 for the first time since last January.
Tech-focused stocks fared well amid a strong week for counterparts on Wall Street, while Tokyo inflation figures also offered encouragement.
Nippon Sheet Glass led today’s session with a gain of 7%, while SoftBank lifted 2% and Tokyo Electron added 4%.
In contrast, the Hang Seng index was 0.2% lower and the Shanghai Composite fell 0.7% in afternoon dealings.
Nikkei 225 breaks 40,000, FTSE 100 and pound firm
07:03 , Graeme EvansThe S&P 500 index last night rose 0.8% to close just short of a record high as US markets experienced a strong session.
The Dow Jones Industrial Average lifted 0.9% and the Nasdaq Composite by 1%, with Nvidia at another all-time high after adding 0.5%.
In Asia, the Nikkei 225 returned above the 40,000 threshold for the first time since January after a surge of more than 2%. However, the Hang Seng index dipped 0.4%.
The FTSE 100 index rose 0.2% or 16.85 points to close last night at 8735.60 as the weaker dollar bolstered mining stocks including Anglo American.
The top flight is set to open about 0.1% higher today, while the pound is steady at yesterday’s near four-year high above $1.37.
