(Alliance News) - European blue-chips traded mixed on Thursday afternoon, with measures in Paris and Frankfurt rising, but that same positivity eluding the FTSE 100 in London.
The FTSE 100 index fell 29.72 points, 0.3%, at 8,682.81. The large-cap benchmark was hurt by the likes of AstraZeneca and BP, who traded lower as shares went ex-dividend.
The FTSE 250 rose 28.93 points, 0.1%, at 20,736.72, and the AIM All-Share rose 2.48 points, 0.3%, at 721.91.
The Cboe UK 100 fell 0.3% to 870.84, the Cboe UK 250 rose 0.1% to 18,049.16, and the Cboe Small Companies added 0.1% at 15,931.97.
The CAC 40 in Paris and Frankfurt's DAX 40 each rose 0.5%.
Against the dollar, the pound perked up to USD1.2601 midday Thursday, from USD1.2572 at the time of the London equities close on Wednesday. The euro rose to USD1.0434 from USD1.0409. Against the yen, the dollar fell to JPY150.24 from JPY151.62.
Convera analyst George Vessey commented: "Upcoming UK retail sales and flash PMI data will be critical for sterling on Friday. The UK inflation report and strong wage growth support our expectation of a Bank of England hold in March and rate cuts starting in May. Leading indicators suggest inflation will stay high in the UK, and growth may surprise positively. These factors could delay gradual rate cuts but won't change the overall view of a slow disinflationary process. Traders have slightly reduced BoE easing expectations from 65 basis points to 50 while still anticipating two rate cuts by year-end, which is more than the BoE's forecast of one cut per quarter.
"In addition to rate differentials supporting the pound, its sensitivity to global risk appetite will keep traders vigilant amidst geopolitical uncertainties. However, the UK is currently out of Trump's tariff line, providing sterling an advantage over the euro."
An ounce of gold rose to USD2,948.66 early Thursday afternoon, from USD2,925.48 at the time of the closing bell in London on Wednesday. A barrel of Brent faded slightly to USD76.31 from USD76.41.
In New York, the Dow Jones Industrial Average is called down 0.2%, while the S&P 500 and Nasdaq Composite are called 0.3% lower.
Still to come on Thursday is a US initial jobless claims reading at 1330 GMT.
"The release of US unemployment claims data will give some insight into how the jobs market is holding up across the Atlantic – a key consideration in the decision-making of the Federal Reserve," AJ Bell analyst Russ Mould commented.
According to FXStreet cited consensus, numbers are to show initial jobless claims picked up to 215,000 in the week just gone, from 213,000.
Federal Reserve officials in January agreed they would need to see progress on inflation before cutting interest rates further, and expressed concern about the impact tariffs will have in making that happen, minutes released Wednesday showed.
"Participants indicated that, provided the economy remained near maximum employment, they would want to see further progress on inflation before making additional adjustments to the target range for the federal funds rate," the minutes from the Federal Open Market Committee's January meeting said.
In London, Centrica jumped 7.1%. The British Gas owner reported a profit decline but lifted its dividend and announced a share buyback. It also reported an "expansion in the Irish power market" as well as a deal with Petrobras in Brazil.
Centrica announced an additional GBP500 million buyback, taking its total programme to GBP2.0 billion. It upped its annual dividend by 13% to 4.5 pence per share, and plans a further increase to 5.5p in 2025.
Revenue last year fell by a quarter to GBP19.91 billion from GBP26.46 billion. Pretax profit slumped 74% to GBP1.68 billion from GBP6.47 billion.
"2024 was a good year for Centrica as we made further operational improvements and ramped up our
investment programme. This has resulted in happier customers and more innovative propositions, but there is so much more we can do. Looking ahead, I want to see Centrica continue to focus on the areas that make the biggest difference. We are investing in the energy transition, ensuring our customers have the energy they need, when they need it at a price they can afford. Everything we do must deliver an appropriate return, and our investments during 2024 demonstrate our ability to invest responsibly and profitably," Chief Executive Chris O'Shea said.
"Centrica has been transformed in recent years, and most of our businesses delivered against our medium-term expectations two years ahead of schedule. We now have greater resilience and financial flexibility supporting the capital returns, dividend increases and new investments in Ireland announced today. Our confidence in the future is as strong as it's been for a long time and I look
forward to continuing to deliver for our colleagues, our customers and our shareholders."
In Ireland, the firm reported the next stage of an investment programme, upping its flexible electricity generation capacity by 50%. The deal with Petrobras will see the Brazilian oil and gas company purchase 800,000 tonnes per year of liquefied natural gas for 15 years, commencing in 2027.
"The agreement comprises approximately 30% of Centrica's US portfolio and will be sourced from Centrica's Sabine Pass and Delfin supply agreements," Centrica added.
Lloyds Banking Group rose 6.2%. It announced a new share buyback but reported a decline in profit as it set aside another GBP700 million for motor finance provisions.
"The more positive response to Lloyds' full-year numbers compared with its immediate peer group is less a reflection of the results themselves and more related to the fact it had lagged behind its rivals heading into this earnings season. A significant increase in provisions associated with motor finance mis-selling is unlikely to have caught investors on the hop. However, the fact the government's attempt to intervene on lenders' behalf was rejected by the Supreme Court is obviously unhelpful and the increased provision meant profit came in below forecasts," AJ Bell analyst Russ Mould commented,
"This issue remains a lingering uncertainty for the business ahead of the latest hearing in early April but the decision to sanction a sizeable share buyback and deliver a healthy increase in the dividend suggests management are not overly concerned."
Ithaca Energy jumped 12%. It said oil production rose faster than the market forecast in the year just gone.
The London-based oil and gas company operating in the North Sea said production was 80,200 barrels of oil equivalent per day in 2024, at the top end of market guidance range and 14% higher than 70,239 in 2023.
Elsewhere in London, Greatland Gold added 8.7%. The firm, which has precious and base metal assets in Australia, hails "exceptional drilling results" from the West Dome target at the Telfer gold-copper mine.
"Drilling confirms high grade mineralisation in the West Dome Underground is associated with the same geological units seen at the active Main Dome Underground," Greatland said.
Greatland has a market capitalisation of around GBP1.17 billion, placing it among the largest AIM listings.
By Eric Cunha, Alliance News news editor
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