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FTSE 100 Eyes Best Month Since Feb on Earnings, Energy

  • Energy stocks set to outperform peers in July
  • NatWest gains ​after 2026 performance outlook raise
  • IG slides after $1.3 bln deal for prediction markets ‌operator Underdog

July 31 (Reuters) - London's FTSE 100 hit an intraday record high for the third session in a row on Friday, and was set to register weekly and monthly gains, as robust earnings buoyed markets through ​a week of central bank decisions and Middle East hostilities.

The blue-chip FTSE 100 ​index rose 0.5% to 10,947.73 points by 1003 GMT, poised for ⁠its biggest monthly jump since February, and sharpest weekly gain in over two months, ​while the midcap FTSE 250 climbed 0.4%.

  • On Friday, miners were the biggest boosts to the ​index, with industrial metal miners rising 2.1%, tracking a rise in copper prices. Precious metal miners rose 0.9%.

  • Heavyweight energy stocks added 1.4%, despite a dip in oil prices to below $90 a barrel. The sector ​has gained over 15% in July, set to outperform peers, as U.S.-Iran hostilities escalated, ​threatening fuel supplies.

  • Corporate earnings were in full swing, with investor attention split between reports and macro factors.

  • NatWest ‌gained ⁠4.3% after the lender reported a better-than-expected first-half operating profit before tax of £4.3 billion ($5.8 billion) and raised its outlook for the year.

  • IG Group sank 10.2% to the bottom of the FTSE 100 after it agreed to acquire U.S. daily fantasy sports and prediction markets operator Underdog ​for up to $1.3 billion.

  • Sainsbury's ​inched up 2.5% after ⁠the supermarket chain agreed to sell Argos for at least £120 million ($161 million), exiting the general retail business.

  • This week, U.S. Federal Reserve Chair Kevin ​Warsh said policymakers were committed to combating inflation after a divided ​Fed kept ⁠interest rates unchanged, providing little clarity on the central bank's next move.

  • The Bank of England on Thursday also held rates, but the number of dissenters stood at three compared with expectations ⁠of two, ​as the impact of the Iran conflict on ​the economy worried policymakers.

  • Greggs shed 6% to end at the bottom of the FTSE 250 after RBC downgraded the ​fast-food chain's stock to "sector perform" from "outperform".

Reporting by Purvi Agarwal in Bengaluru; Editing by Vijay Kishore

Source: Reuters


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