Economic news

FTSE 100 Notches Record Close on US-EU Trade Deal Optimism, Earnings Boost

  • FTSE 100 up 0.9%, FTSE 250 up 0.6%
  • Reckitt soars after raising annual revenue growth forecast
  • ITV jumps after forecast-beating HY results
  • BT Group surges after appointing new CFO
  • Vodafone rises on Q1 growth improvement

July 24 (Reuters) - Britain's FTSE 100 rose on Thursday to a record close, boosted by upbeat corporate results and optimism over a potential EU-U.S. trade agreement.

The benchmark FTSE 100 closed up 0.9% at 9,138.37 points. The domestically oriented midcap FTSE 250  gained 0.6%.

The personal care and grocery stores index  led sectoral gains, up 2.6%, boosted by Reckitt , up 9.9%, after the consumer goods company raised its annual revenue forecast.

Healthcare stocks rose 1.9% with AstraZeneca up 2.1% after the drugmaker's rare immune disorder drug succeeded in an advanced trial.

GSK added 1.4% after the U.S. Food and Drug Administration on Wednesday extended its review of the drugmaker's blood cancer drug.

Media stocks advanced 2.3%, led by ITV, which rose 13.3% after the broadcaster's half-year results beat forecasts.

Conversely, precious metal miners fell 1.4%, tracking a drop in gold prices. Endeavour Mining fell 1.3%, and Fresnillo was down 2.1%.

In company news, BT Group advanced 10.4%, topping the FTSE 100 index, after the telecom firm named Patricia Cobian as its first female chief financial officer.

Howden Joinery soared 8.9% after reporting a rise in first-half profit.

Vodafone gained 3.4% after reporting a 5.5% increase in organic service revenue in the first quarter.

Airtel Africa soared 7.3% after posting higher quarterly results.

Anglo American's copper and diamond production fell in the first half of the year. Shares of the miner edged 0.9% down.

BP will exit its planned green hydrogen production facility in Australia as it pivots back to oil and gas, a spokesperson said. Shares of the energy major were down 1.7%.

Meanwhile, an EU spokesperson signalled that a U.S.-EU deal was within reach, which would result in broad 15% import tariffs on the 27-member bloc.

Additionally, surveys showed British companies are struggling to grow and the job market continues to weaken, but inflation pressures are still lurking in the economy.

A Reuters poll showed the Bank of England is expected to cut interest rates in August and November with steady economic growth anticipated.

Britain and India also signed a free trade agreement.

Reporting by Sukriti Gupta; Editing by Sahal Muhammed and Ed Osmond

Source: Reuters


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