Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
London close: Stocks rise as US debt ceiling hopes simmer
(Sharecast News) - London's stock markets ended Thursday's trading session on a positive note, buoyed by optimism around a potential deal to raise the US debt ceiling. The FTSE 100 index closed the day up 0.25% at 7,742.30, while the FTSE 250 rose 0.43% to settle at 19,298.25.
BT Group remained in focus, however, after it unveiled plans to eliminate up to 55,000 positions over the coming years.
In currencies, sterling was last down 0.5% on the dollar to trade at $1.2424, while it strengthened marginally against the euro to change hands at €1.1524.
"European markets got off to a strongly positive start to the day ... [but] the afternoon session has seen a modest retreat from the highs of the day," said CMC Markets chief market analyst Michael Hewson.
"US markets initially acted as a drag, before pulling higher on comments from House Republican Kevin McCarthy that a debt ceiling deal could be on the floor of the house by next week.
"On that basis, confidence is growing that the melodrama playing out in Washington DC is merely a piece of political theatre, and that a deal will happen eventually, as it has on so many previous occasions."
US initial jobless claims fall by more than expected
There were no major data releases in the UK on Thursday, but across the pond, a fresh release showed a greater-than-anticipated decrease in initial jobless claims last week.
The Department of Labor's latest report revealed that for the week ended 13 May, the volume of first-time unemployment filings fell to 242,000, marking a drop of 22,000.
That was significantly lower than the projected figure of 250,000 claims.
Additionally, the four-week moving average - a less volatile measure that offers a clearer view of the overarching trend - nudged downwards by 1,000, coming in at 244,250.
In addition to initial claims, the number of continuing unemployment claims saw a downturn as well.
The measure, which accounts for individuals filing for benefits beyond their first claim, fell by 8,000 to land at 1.799 million for the week ended 6 May.
Nancy Vanden Houten at Oxford Economics explained that the bulk of the decline in first-time claims was the result of a drop in Massachusetts, however, noting that fraudulent claims in that state had reportedly inflated figures over recent weeks.
"Apart from Massachusetts, initial claims have stabilised in recent weeks after drifting higher in the first quarter - a reminder that labour market conditions are still relatively tight," she said.
"While we expect the Fed to leave rates steady at its June meeting, a resumption of rate hikes can't be ruled out if labour market conditions don't ease more significantly."
Aston Martin surges on Geely investment, Future tumbles
On London's equity markets, medical products manufacturer ConvaTec ended the day 5.02% higher, buoyed by a revised upward full-year organic revenue guidance.
Aston Martin Lagonda emerged as one of the top gainers, soaring 12.46% after Chinese auto conglomerate Geely announced plans to invest £234m in the luxury car maker, becoming its third-largest shareholder.
Genuit Group, the maker of plastic pipes and ventilation products, also had a strong day with shares rising by 13.76% after it predicted annual earnings would modestly exceed market expectations.
Housebuilders found a solid footing following an encouraging update from Vistry Group, which witnessed its shares ascend 4.55%.
The company forecast impressive adjusted annual earnings north of £450m, with the news also benefiting other firms in the sector, with Persimmon, Barratt Developments, and Taylor Wimpey gaining 1.78%, 1.28% and 0.52%, respectively.
Premier Foods, the owner of brands including Mr Kipling and Oxo, improved 2.47% on the back of a dividend hike and increased full-year profits, despite a challenging operating environment.
Budget airline easyJet rose 1.46% after it expressed optimism about the upcoming summer season and reported a narrower first-half loss, aligning with market predictions.
On the downside, BT Group dropped 5% after the telecom giant announced plans for significant job reductions involving up to 55,000 positions over the coming years.
The news came as it reported adjusted core earnings up 5% to £7.9bn.
On a pre-tax basis, BT posted a 12% fall in profit to £1.7bn due to increased depreciation from network build and specific items, partially offset by adjusted EBITDA growth.
"Telecoms appears to be awash with job cuts with Vodafone and BT reducing the size of their workforces," said Victoria Scholar, head of investment at Interactive Investor.
"Both have been struggling with the pressures of inflation, most notably from energy.
"BT is focusing on digitisation and integrating AI, a shift which is likely to require fewer workers."
Elsewhere, Burberry Group trended downwards, shedding 5.2% despite an increase in full-year profit and a strong fourth quarter powered by the rebounding Chinese market.
Royal Mail parent International Distributions Services slid 5.99% after it reported a substantial full-year loss resulting from a year-long dispute with unions over pay and conditions.
Publishing firm Future took the hardest hit, plunging 15.87% after lowering its full-year expectations amid challenging market conditions.
In the energy sector, Energean saw its shares decline 7.93% after cutting production guidance for the year and announcing its decision on the Olympus fields off Israel would come by year-end.
In broker note action, high-street retailer Marks & Spencer was weighed down by 1.16% following a downgrade to 'neutral' from 'buy' at Citi.
Several stocks including GSK, Unilever, and PageGroup experienced minor losses as they traded ex-dividend, falling 1.29%, 1.16%, and 0.63%, respectively.
Reporting by Josh White for Sharecast.com.
FTSE 100 +19.07 (+0.25%) 7,742.30
RISERS JD Sports Fashion +5.92% 172.65p ConvaTec Group +5.02% 226p Ashtead Group +3.35% 4,960p Standard Chartered +2.88% 642.6p DCC +2.72% 4,990p Experian +2.45% 2,802p Informa +2.24% 722.6p Scottish Mortgage Investment Trust +2.09% 635p Abrdn +2.03% 211.1p RS Group +1.96% 862.4p
FALLERS Burberry Group -5.2% 2,389p BT Group -5% 140.7p Ocado Group -3.07% 397.7p National Grid -2.85% 1,108p Centrica -2.46% 116.8p Severn Trent -2.05% 2,820p Unite Group -2.01% 900p Imperial Brands -1.84% 1,786p Anglo American -1.75% 2,328.5p United Utilities Group -1.74% 1,044.5p
FTSE 250 +82.2 (+0.43%) 19,298.25
RISERS Genuit Group +13.76% 339p Aston Martin Lagonda Global Holdings +12.46% 260p Tullow Oil +7.37% 24.48p Keller Group +6.55% 716p Asos +5.47% 453.5p TBC Bank Group +4.87% 2,475p Vanquis Banking Group +4.78% 230p Mitchells & Butlers +4.67% 208.4p Helios Towers +4.58% 96p Vistry Group +4.55% 851p
FALLERS Future -15.87% 880p Energean -7.93% 1,138p Tritax EuroBox -7.36% 64.2p International Distributions Services -5.99% 208.9p Videndum -3.89% 692p Supermarket Income REIT -3.24% 83.7p UK Commercial Property REIT -3.05% 54p Tritax Big Box REIT -2.92% 143.2p Centamin -2.24% 104.7p LondonMetric Property -2.13% 183.9p
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.