Market update: FTSE 100 up 1%, IAG and defence firms higher
10:16 , Graeme EvansBuyers kept Rolls-Royce and BAE Systems in their sights today as the FTSE 100 index advanced another 1% to trade within reach of March’s record high.
GKN Aerospace owner Melrose Industries and British Airways business IAG also fared well as the FTSE 100 rose 1% or 83.97 points to 8801.94.
That compares with the record close of 8871.31 seen on 3 March and intraday high of 8908 set the same day.
The turnaround from April’s post tariff lows has been cheered by retail investors after Hargreaves Lansdown today reported a big jump in confidence among its clients.
The latest jump for London stocks followed the deferral of Donald Trump’s planned 50% EU tariffs, which led to strong sessions in Frankfurt and Paris on Monday.
UK and US markets were closed yesterday, with Wall Street set to follow Europe’s lead with gains of about 1% at the opening bell.
In London, demand for defence and aerospace stocks benefited from speculation that NATO members will agree to raise defence expenditure at a summit next month.
BAE Systems and Rolls-Royce both traded at fresh records as a result, up 3% or 52p to 1895p and 2.5% or 21.8p to 857.6p respectively.
Melrose Industries advanced 14.5p to 465.9p, while Babcock International added 15.5p to 918.5p.
IAG lifted 11.2p to 331p, alongside gains of 3.1p to 176.1p for BT Group and 25.5p to 1451p for drugs giant GSK.
Whitbread shares rose 48.6p to 2847.6p after it announced that Christine Hodgson will lead its board from September, replacing Adam Crozier who has been chair for seven years.
A shortened fallers board was led by Endeavour Mining and Fresnillo after their shares fell 3% on the back of a 1.5% drop in the gold price.
The FTSE 250 index rose 235.46 points to 20,944.18, with speciality chemicals company Elementis up 13% or 16.8p to 146.8p after it said it intended to launch a buyback of shares.
The planned move was announced alongside the sale of its talc business to IMI Fabi for an enterprise value of $121 million.
FTSE 100 up 1% as Rolls and BAE continue strong run
09:23 , Graeme EvansThe FTSE 100 index is above 8800 for the first time in three months, boosted by strong performances in the defence and aerospace sectors.
London’s top flight opened the shortened week up 1% or 89.36 points to 8807.33, which compares with the record close of 8871.31 set on 3 March and the intraday high of 8908 on the same day.
GKN Aerospace business Melrose Industries rose 4% and BA and Iberia owner IAG lifted by 3.5%, while Rolls-Royce added 22p to trade at 857.8p.
Hopes that NATO members will agree to raise defence expenditure at a summit next month helped to boost BAE Systems by another 2% or 45p to 1888p.
The UK-focused FTSE 250 index surged 1.2% or 243.29 points to 20,952.01.
Stock market confidence up sharply in May
08:45 , Graeme EvansRetail investors appear to have regained their appetite for UK stocks after a survey by Hargreaves Lansdown today showed that confidence among clients is up 70% compared with April.
Confidence in UK economic growth increased at an even quicker pace, rising 85% on the previous month.
Victoria Hasler, head of fund research at Hargreaves Lansdown, said: “After a terrible month in April, May saw a huge rebound in investor confidence among HL clients.
“The pause in tariffs, combined with opportunities presented by the fall in markets, saw investor confidence rise across all regions in our survey.”
FTSE 100 makes strong start, BAE Systems up 2%
08:13 , Graeme EvansThe FTSE 100 index is up 0.8% or 70.02 points to 8787.99, with BAE Systems among those on the front foot after a jump of 2% or 30p to 1873p.
Rolls-Royce has also continued its recent strong run by adding another 17.35p to 853.15p, while British Airways owner IAG is 3% or 9.3p higher at 329.1p.
Whitbread shares rose 26.1p to 2825.1p after it announced that Christine Hodgson will lead its board from September, replacing current chair Adam Crozier.
Other stronger stocks include BP and Shell after gains of 1%, while AstraZeneca is 42p higher at 10,478p.
Food prices rise for fourth month in a row
07:39 , Graeme EvansFood inflation rose for the fourth consecutive month in May, the British Retail Consortium-NIQ Shop Price Index showed today.
Food prices are 2.8% higher than a year ago, up from April’s 2.6%. Fresh food prices are rising particularly quickly, up to 2.4% higher than last May from April’s 1.8%.
Shop prices overall remained in deflation, at 0.1% cheaper than a year ago and unchanged from April.
BRC chief executive Helen Dickinson said: “With retailers now absorbing the additional £5 billion in costs from April’s increased employer national insurance contributions and national living wage, it is no surprise that inflation is rearing its head once again.”
Whitbread appoints new chair as Crozier steps down
07:26 , Graeme EvansPremier Inn owner Whitbread today announced that Christine Hodgson will lead its board from September 1.
The current Severn Trent chair, who has held senior roles across technology and consumer-facing sectors, replaces Adam Crozier.
The former ITV and Royal Mail boss has been Whitbread chair for the past seven years, having joined the board in 2017. Corporate guidelines recommend a nine-year tenure for non-executive directors.
FTSE 100 seen higher after EU markets surge
06:59 , Graeme EvansThe FTSE 100 index is seen rising by about 0.8%, while US futures are also higher after European markets rallied on Monday.
The Frankfurt-based Dax lifted 1.6% and the Cac 40 in Paris improved by 1.2% after the date of Donald Trump’s 50% EU tariffs was put back to 9 July.
With Wall Street closed yesterday for Memorial Day, futures trading is pointing to a rise of about 1% for leading US benchmarks.
The pound starts the week at $1.355 while Brent Crude is $64.58 a barrel ahead of this week’s meeting of OPEC ministers.
