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(Alliance News) - London's FTSE 100 ended higher on Thursday, as hefty share price gains for Auto Trader and commodity stocks offset Johnson Matthey's heavy declines, as well as falls in the retail sector.
In the US, stocks cautiously nudged higher, with the exception of a Disney-hit Dow, recovering after being battered following Wednesday's hot US consumer price index print.
London's large-cap index, stacked with international earners which benefit from a weaker sterling, closed up 44.03 points, or 0.6%, at 7,384.18.
The mid-cap FTSE 250 index ended up 140.80 points, or 0.6%, at 23,574.05. The AIM All-Share index closed up 3.03 points, or 0.2%, at 1,246.93.
The Cboe UK 100 index ended up 0.8% at 731.96. The Cboe 250 was up 0.4% at 21,056.06, though the Cboe Small Companies ended down 0.2% at 15,587.26.
In mainland Europe, the CAC 40 stock index in Paris rose 0.2%, while the DAX 40 in Frankfurt closed up 0.1%, setting a new record close again.
"It's been a fairly positive session for markets in Europe with the FTSE 100 making a fresh 20 month high, and the Stoxx 600 and German DAX again setting new record peaks," CMC Markets analyst Michael Hewson commented.
The FTSE 100 hit its best level since the onset of the pandemic.
Although European equities largely escaped Wednesday's US inflation data unscathed, both sterling and the euro were badly hit, however.
The pound slumped to USD1.3381 late Thursday, from USD1.3492 at the London equities close on Wednesday. Sterling fell to its lowest level since December 2020.
The euro was priced at USD1.1462, down from USD1.1529, falling below USD1.15 for the first time since July of last year. Against the Japanese yen, the dollar was trading at JPY114.02, up from JPY113.86.
Oanda analyst Craig Erlam added: "The view in the markets is increasingly becoming that the Fed will be forced to act long before they have indicated. The central bank can't bury its head in the sand for much longer and may be forced to accept that earlier hikes will be necessary if higher pressures persist. The transitory narrative is starting to fall on deaf ears."
In New York, the S&P 500 was up 0.2% at the time of the closing bell in London. The Nasdaq Composite was 0.8% higher, though the Dow Jones Industrial Average was down 0.3%.
"US markets are seeing a bit of a rebound after yesterday's sharp sell-off, probably helped by the fact that the US bond market is closed for Veteran's Day," Hewson added.
The Dow was hurt by Walt Disney, whose shares were down 7.3%.
The film and television content producer late Wednesday reported that fourth-quarter revenue missed the mark and growth in its streaming arm slowed.
In the fourth quarter ended October 2, revenue increased 26% year-on-year to USD18.53 billion from USD14.71 billion. Revenue missed CNN cited forecasts of USD18.8 billion. Disney swung to a quarterly pretax profit of USD290 million, from a USD580 million loss a year earlier.
Disney posted diluted earnings per share of USD0.09, swinging from a USD0.39 loss a year earlier. Minus some one-off items, diluted EPS amounted to USD0.37, swinging from a USD0.20 loss. The USD0.37 missed CNN cited consensus forecasts of USD0.52.
Disney+ subscribers totalled 118.1 million at the end of the quarter, up 60% annually and 1.8% quarter-on-quarter. Quarterly growth slowed from the third quarter's 12% climb, however.
AJ Bell analyst Russ Mould commented: "Delays to key releases and a mixed reaction to some of its more recent films and shows has set it back in what remains an extremely competitive streaming market.
"The House of Mouse needs to get its house back in order if it is to hit Chief Executive Bob Chapek's ambitious targets."
Gold stood at USD1,861.20 an ounce at the London equities close on Thursday, rising against USD1,856.96 late Wednesday. The yellow metal squeezed out further gains as investors continue to be mindful of rampant inflation. Gold is seen as a hedge against inflation.
"Inflation readings seem to be providing gold with the strength to rally further, as the metal touches USD1,860 for the first time since June. Commodities as a group appear to have further to run now that inflation prints have started picking up again, with no sign as yet that supply has begun to respond in a meaningful fashion," IG Markets analyst Chris Beauchamp commented.
In London, gold miner Centamin closed among the best mid-cap performers, rising 5.5%.
The FTSE 100, meanwhile, got a boost from Anglo American and BHP. The duo added 5.9% and 3.9%, respectively, in a strong day for the mining sector.
Auto Trader surged 14%. The digital automotive marketplace said it delivered its highest ever six-monthly revenue and profit, with consumer engagement and retailer numbers at record levels.
For the six months to September 30, revenue was GBP215.4 million, up 82% from GBP118.2 million last year and pretax profit more than doubled to GBP150 million from GBP66.2 million.
At the other end of the large-caps, Johnson Matthey was the worst performer, giving back 19%. The speciality chemicals company said it will exit an underperforming business and announced the departure of its chief executive.
Johnson Matthey said it has concluded that the potential returns from its Battery Materials business would not "be adequate to justify further investment".
Johnson Matthey also said Chief Executive Robert MacLeod will retire early next year, with Liam Condon hired from Germany's Bayer to succeed him. MacLeod will step down in February after eight years and will stay on until July to help with the transition.
The company also warned its full-year outturn will be at the lower end of expectations. It cited supply chain shortages for its auto industry customers and labour shortages in the US hurting its Health business.
Also closing in the red was Burberry, down 5.4%. Concern about the British fashion house's prospects in China took the gloss off an upbeat first-half performance.
For the 26 weeks to September 25, revenue jumped 38% to GBP1.21 billion from GBP878 million last year. Operating profit surged to GBP207 million from GBP88 million, and pretax profit more than doubled to GBP191 million from GBP73 million.
Weighing on its shares, however, were developments in the key market of China. Beijing authorities have sealed off a mall and locked down several residential compounds over a Covid flare-up, as the latest outbreak spread to the Chinese capital's central districts. Six new cases were found in Beijing's central districts of Chaoyang and Haidian on Thursday morning, local media reported, all close contacts of people infected recently in northeastern Jilin province.
B&M dropped 5.6%, although it also posted improved interim results. Concerns that the variety retailer's growth will begin to moderate hit its stock on Thursday.
For the 26 weeks to September 25, revenue increased by 1.2% to GBP2.27 billion from GBP2.24 billion last year, and pretax profit rose 2.4% to GBP241.4 million from GBP235.6 million.
Elsewhere in London, Ted Baker closed down 6.4%. Initially climbing after reporting a narrowed interim loss, before sliding on e-commerce worries.
The retailer's revenue rose 18% to GBP199.3 million from GBP169.5 million in the 28 weeks to August 8. Pretax loss narrowed to GBP25.3 million from a GBP86.4 million loss a year before.
However, e-commerce sales fell 14% year-on-year, tracking tough comparatives.
"Losing ground in e-commerce is bad no matter how you slice it. The online shopping boom hasn't showed any signs of slowing, and we would've like to see the same from Ted's eCommerce sales," Hargreaves Lansdown analyst Laura Hoy commented.
Friday's local corporate calendar has third quarter results from pharmaceutical firm AstraZeneca and a trading statement from housebuilder Redrow.
Brent oil was quoted at USD82.48 a barrel late Thursday, down sharply from USD84.12 late Wednesday.
The economic calendar has eurozone industrial production data at 1000 GMT.
By Eric Cunha; ericcunha@alliancenews.com
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