The FTSE 100 achieved another record high and also closed above the 8,000 point mark for the first time ever, as European stocks set aside US inflationary worries.
The CAC 40 in Paris also achieved a record high on Thursday, though equities in New York struggled in the wake of US producer price data.
The FTSE 100 index ended up 14.70 points, or 0.2%, at 8,012.53. It struck a record high of 8,047.06 points earlier on Thursday.
The large-cap index closed above the 8,000 point mark roughly eight years after ending a day above the 7,000 point threshold. That feat was achieved on March 20, index operator FTSE Russell noted shortly after the closing bell on Thursday.
It was around 40 years ago, in December 1983, that the index first closed above 1,000 points.
The FTSE 250 closed 15.82 points, or 0.1%, lower at 20,156.77. The AIM All-Share edged up by just under 0.10 of a point, closing at 869.59.
The Cboe UK 100 closed up 0.1% at 801.94, the Cboe UK 250, however, fell 0.1% to 17,553.06. The Cboe Small Companies lost 0.2% to 14,012.77.
In European equities on Thursday, the CAC 40 in Paris surged 0.9%, it had hit a record high in late-morning trade. The DAX 40 in Frankfurt closed up 0.2%.
On a monthly basis, the US producer price index for final demand increased 0.7% in January, reversing from a 0.2% decline in December.
This came above expectations, according to FXStreet. Markets had expected the producer price index to increase 0.4% in January.
Excluding food, energy and trade services, the index for final demand rose 0.6% in January. The US Bureau said this was the index’s largest advance since March 2022.
On an annual basis, the index for final demand rose 6.0% in January, slowing from a 6.5% increase in December. Markets had expected producer price inflation to cool to 5.4%.
Stocks in New York were lower around the time of the closing bell in London, spooked by the inflation data.
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite each fell 0.7%.
The pound was quoted at $1.2004 at late Thursday in London, largely unchanged from $1.2007 at the close on Wednesday. The euro stood at $1.0674 Thursday, up slightly against $1.0669 at the London equities close on Wednesday. Against the yen, the dollar was trading at JP¥134.08, lower compared to JP¥134.32.
In London, British Gas owner Centrica climbed 5.7%.
It reported a swing to a statutory loss in 2022 on re-measurement and higher operating costs, but adjusted profit tripled as revenue surged 84%.
The Windsor, England-based firm revealed a pretax loss of £240 million in 2022, compared to a profit of £954 million in 2021.
The swing to a loss was on re-measurements after taxation, Centrica said, largely reflecting the revaluation of UK energy supply hedging positions due to wholesale gas and power price falls towards the end of the year. The cost for re-measurement and settlement of derivative energy contracts ballooned to £8.48 billion in 2022 from £434 million in 2021.
However, adjusted operating profit tripled to £3.31 billion from £948 million.
Centrica added it intends to extend its existing £250 million buyback programme, announced in November, by an additional £300 million. This would result in Centrica buying back 10% of its share capital, the power utility said.
Standard Chartered rose 4.1%. It reported a pretax profit of $4.29 billion in 2022, up 28% from $3.35 billion in 2021, as interest income jumped by nearly 50% to $15.25 billion from $10.25 billion.
Profit fell short of consensus, however. It also announced a $1 billion share buyback.
Among FTSE 250 stocks, Indivior tumbled 14%. The pharmaceutical company reported a swing to loss as it counts the cost of litigation provisions.
It posted a pretax loss of $95 million in 2022 from a profit of $190 million in 2021, despite a jump by 14% in net revenue to $901 million from $791 million.
Indivior booked a $290 million exceptional provision in 2022, as it navigates initial mediation sessions in late January regarding legacy civil multi-district antitrust litigation.
Sausage casings maker Devro received an increased and ‘final’ takeover offer from suitor Saria worth £564 million.
The Glasgow, Scotland-based firm deems the bid ‘fair and reasonable’. Devro shares ended 6.7% higher, giving it a market capitalisation of £547.6 million.
On AIM, Jaywing tumbled 35%. The advertising and marketing agency expects an annual outturn below market expectations.
Its pipeline of new business remains ‘encouraging’ but warned it has seen a softening in demand over the past two months.
As a result, significant project revenue previously expected to start in the fourth quarter of its financial year is now unlikely to begin by the March 31 year-end.
Full year revenue is now expected between £22.0 million and £22.5 million, compared to £23.3 million in financial 2022, with adjusted earnings before interest, tax, depreciation and amortisation ahead of last year but below market expectations.
Brent oil was quoted at $85.13 a barrel in London on Thursday, up from $84.07 late Wednesday. Gold was quoted at $1,835.31 an ounce, higher against $1,832.19.
Friday’s economic calendar has a UK retail sales reading and German producer price index data at 0700 GMT.
The local corporate calendar has annual results from lender NatWest and property investment firm Segro.
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