The FTSE 100 finished the day on an up note as investors shrugged-off worries about rising interest rates, despite the more hawkish comments coming from the US Federal Reserve on Wednesday.
The benchmark FTSE 100 closed roughly 1.1% higher, or about 85 point, to end the day at 7,554.31, boosted by bank stocks and a weaker pound, recovering all of the losses ran up at the start of the week.
The move comes despite worries about how central banks deal with rising inflation, as well as the continuing tensions in Ukraine and the political turmoil in the UK at the moment thanks to Boris Johnson’s partygate scandal.
After better than expected US GDP growth in the fourth quarter, US markets started Thursday on the front foot as traders appeared to brush off rate rise worries following the Fed meeting. Official data showed that US GDP jumped 6.9% in the last three months of 2021 compared to the same period a year earlier. Economists has expected the US economy to have grown at a 5.5% annualized pace.
The Dow Jones Industrial Average had added more than 0.25% at the UK close to 34,234, but despite the bright start, the S&P 500 and Nasdaq failed to hold on to earlier gains. At the UK finish, the S&P 500 was 0.2% down at 4,340, while the tech-heavy Nasdaq Composite fell nearly 0.7% to 13,448.
DR MARTENS STOMPED ON
Investors put the boot into Dr Martens as the iconic British brand lost 9% to close at 294p as 11% sales growth to £307 million for the third quarter, including Christmas, disappointed investors.
Growth slowed from the first half as the boot seller gave greater priority to the higher margin direct-to-consumer business over wholesale sales to third parties.
drinks giant Diageo (DGE) added around 1% to finish at £37.355 after serving up forecast-beating first half organic net sales growth of 20% as strong demand in its off-trade business and continued recovery in the on-trade bolstered results.
For the six months to December 2021, the Johnnie Walker whisky-to-Smirnoff vodka maker delivered a 22.5% jump in operating profit to £2.7 billion thanks to bumper demand for scotch, tequila and beer.
‘We have made a strong start to fiscal 22,’ insisted CEO Ivan Menezes. While Diageo expects near-term volatility to remain, ‘including potential impacts from Covid-19, global supply chain constraints and rising cost inflation’, he is ‘confident in our ability to successfully navigate these disruptions through the remainder of the year’.
Over the medium-term, Diageo continues to expect organic net sales to consistently grow ‘within a range of 5% to 7% and organic operating profit to grow sustainably within a range of 6% to 9%’.
Mining giant Anglo American (AAL) managed 1%-plus gains at £34.51 after reporting flat production for the fourth quarter, though diamond output was highlight of the quarter amid ‘strong’ consumer demand.
EasyJet (EZJ) reversed earlier modest losses to nudge 0.8% up at 635.8p as the low-cost carrier cautioned that the Omicron variant would continue to have a short-term impact, though the budget airline also touted a strong summer ahead with capacity returning to near pre-pandemic levels.
For the first quarter to December 2021, pre-tax losses more than halved to £213 million from £423 million as revenue increased to £805 million from £165 million, although following the easing of restrictions in the UK in January, EasyJet has seen a ‘sustained step change improvement in booking volumes’.
Shopping centre landlord Hammerson (HMSO) rallied more than 4% to 339.37p after the group upgraded its earnings outlook amid better-than-expected rental income and a strong recovery in footfall that has continued into 2022.
AROUND THE MARKET
Soft drinks group Britvic (BVIC) bubbled up 1.8% to 881p as the Robinsons-to-Tango maker reported a rise in first quarter revenue, led by ongoing growth in its At-Home channel and a recovery in the Out-of-Home channel in October and November.
‘Out-of-Home trading in December was impacted by changes in consumer behaviour and a downturn in socialising in GB and Ireland due to the Omicron Covid-19 variant,’ the company explained.
‘With the announcement last week of the easing of restrictions across the UK and Ireland, we anticipate the Out-of-Home channel will continue its recovery back towards 2019 levels.’
IG Group (IGG) sparked up 3.6% to 851.5p as the financial trading platform published strong results for the half to November 2021 despite lapping tough comparatives.
IG also issued a confident outlook, emphasising the ‘step change’ in its active client base since the pandemic, while also reiterating medium-term revenue growth targets.
Russian gold miner Petropavlovsk (POG) improved 1.2% to 15.1p after reporting full year production in line with guidance following a ‘strong’ end to the year.
