UK’s top stocks gain ground as business activity turns a corner
The FTSE 100 index gained 14.07 points, or 0.19%, to close at 7,483.58.
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Your support makes all the difference.London’s top stock market has gained ground and the pound reached a more than two-month high against the dollar, as new data showed the UK’s private sector returned to growth this month.
Energy stocks helped buoy the FTSE 100 on Thursday despite oil prices tumbling further.
The blue-chip index gained 14.07 points, or 0.19%, to close at 7,483.58.
It comes as new preliminary data from the closely watched S&P Global/ CIPS flash UK PMI survey showed that UK business activity edged up this month, driven by growth for companies in the services sector.
The survey indicated that while recession risks remain, the pause in interest rates hikes has helped inject confidence into some areas of the economy
The UK services PMI unexpectedly moved back into growth territory, reinforcing the view that the economy may once again defy expectations and avoid recession
Craig Erlam, senior market analyst for Oanda, said: “This morning we had PMI surveys from the UK and euro area and in both cases, we saw some improvements that may suggest both are starting to turn a corner, albeit extremely gradually in the case of manufacturing.
“In fact, the UK services PMI unexpectedly moved back into growth territory, reinforcing the view that the economy may once again defy expectations and avoid recession.
“Growth will remain almost flat but the repeated display of resilience is encouraging. The question is whether it will translate into interest rates staying high for longer.”
The pound was up more than 0.3% against the US dollar to 1.253, having touched its highest point against the currency since early September during the day.
Sterling was up by 0.2% against the euro to 1.1493.
Elsewhere for European stock markets, Germany’s Dax closed 0.23% higher and France’s Cac 40 up 0.24%.
Over in the US, markets were closed for the Thanksgiving national holiday.
The price of Brent crude oil fell by 1.2% to 80.97 US dollars per barrel.
In company news, Virgin Money saw its share price slide after the bank revealed its pre-tax profits tumbled by more than 40% over the latest year, as it set aside some £300 million for expected loan losses.
The group said it expects to see arrears tick up in the new financial year with more customers struggling with loan repayments and credit amid higher interest rates and the cost-of-living squeeze.
Its share price was down by 6.5% at close.
Shares in Jet2 slipped after the travel firm said it took a £14 million hit from the summer’s air traffic control disruption and wildfires and flooding on Greek islands.
Nevertheless, its profits were boosted as average prices of its holiday packages increased over the latest half year, and bookings for next year’s summer are proving strong.
Its share price closed 0.9% lower.
The biggest risers on the FTSE 100 were Intertek, up 131p to 3,960p, Weir Group, up 33p to 1,852p, Ashtead, up 75p to 4,800p, BP, up 7.35p to 473.5p, and Rolls-Royce, up 3.2p to 240.7p.
The biggest fallers on the FTSE 100 were Vodafone, down 4.05p to 70.87p, Whitbread, down 140p to 3,204p, IAG, down 4.55p to 154.25p, National Grid, down 29p to 1,004.5p, and Imperial Brands, down 45p to 1,833.5p.