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LONDON MARKET CLOSE: Stocks mixed amid BoE rate cut and US trade deal
- London stocks ended mixed as investors reacted to the Bank of England's "hawkish" rate cut and a US-UK trade deal.
- The FTSE 100 closed 0.3% lower, while the FTSE 250 and AIM All-Share indices rose 0.61% and 1.0%, respectively.
- The Bank of England's Monetary Policy Committee voted 5-4 for a quarter-point rate cut, with two members calling for a larger reduction and two preferring no change.
- ING described the rate cut as "hawkish" as the Bank of England did not endorse market expectations of faster cuts.
- A US-UK trade deal was announced later in the day, with the US removing tariffs on UK steel and aluminium and reducing tariffs on UK car exports.
- Prime Minister Keir Starmer hailed the deal as a sign that the UK is "open for business."
- Stocks making notable moves included IMI, up 5.1% after retaining its revenue growth forecast, and Weir Group, up 4.1% after an upgrade from UBS.
- Renishaw jumped 19% on the FTSE 250 after avoiding a profit downgrade, while British Gas owner Centrica fell 7.6% despite backing annual profit guidance.
- Brent oil prices rose to USD62.75 a barrel, while gold prices fell to USD3,340.18 an ounce.
- Friday's economic calendar includes UK industrial production data, while British Airways owner IAG will report first-quarter results.
LONDON MARKET MIDDAY: BoE cuts; Trump says "full" US-UK trade deal
- European equities rose on Thursday, following a Bank of England interest rate cut and US-UK trade deal expectations.
- The BoE lowered the bank rate by 25 basis points to 4.25%, with a split vote among the monetary policy committee members.
- The FTSE 100 and 250, along with the AIM All-Share, climbed, while the Cboe UK indices also rose.
- The CAC 40 in Paris and the DAX 40 in Frankfurt also surged.
- The BoE maintained a cautious stance on further monetary policy changes, but analysts predict a shift in wording.
- US President Donald Trump announced a "full and comprehensive" trade deal with the UK, with more details expected at a press conference.
- Prime Minister Keir Starmer is also expected to provide an update on US trade talks later in the day.
- In London, Mondi shares rose, while Centrica and S4 Capital declined.
- Oil prices increased, while gold traded lower.
LONDON BROKER RATINGS: UBS cuts Hammerson, raises Weir Group
- 8th May 2025 09:57
- The following London-listed shares received analyst recommendations Thursday morning and on Wednesday:
- FTSE 100
- Goldman Sachs cuts Shell price target to 40 (42) EUR - 'buy'
- Goldman Sachs cuts BP price target to 450 (480) pence - 'buy'
- UBS raises Weir Group to 'buy' (neutral) - price target 2,850 (2,250) pence
- Jefferies raises NatWest price target to 530 (520) pence - 'buy'
- Barclays raises NatWest price target to 620 (580) pence - 'overweight'
- Jefferies raises Lloyds price target to 92 (90) pence - 'buy'
- Kepler Cheuvreux cuts Lloyds price target to 74 (75) pence - 'hold'
- Jefferies raises Barclays price target to 405 (395) pence - 'buy'
- Kepler Cheuvreux raises Coca-Cola HBC price target to 3,830 (3,270) pence - 'hold'
- Barclays raises Imperial Brands target to 3,650 (3,350) pence - 'overweight'
- FTSE 250
- RBC raises 3i Infrastructure price target to 430 (405) pence - 'outperform'
- Berenberg starts Telecom Plus with 'buy' - price target 2,600 pence
- Barclays cuts Trainline price target to 270 (325) pence - 'equal weight'
- JPMorgan cuts Trainline price target to 325 (370) pence - 'neutral'
- HSBC cuts Deliveroo to 'hold' - price target 180 pence
- Jefferies cuts Deliveroo to 'hold' (buy) - price target 180 (225) pence
- UBS cuts Hammerson to 'sell' (neutral) - price target 245 (305) pence
- Jefferies raises OSB Group price target to 565 (540) pence - 'buy'
- OTHER MAIN MARKET
- JPMorgan cuts Bank of Ireland price target to 10.30 (11.60) EUR - 'underweight'
- JPMorgan cuts AIB price target to 6.40 (7.30) EUR - 'neutral'
LONDON MARKET OPEN: Fed supports dollar; UK PM to make trade update
- European stocks opened higher on Thursday, with varying gains across major indices.
- The FTSE 100, FTSE 250, and AIM All-Share all posted modest gains, while the Cboe UK indices also rose.
- In Paris and Frankfurt, the CAC 40 and DAX 40 also saw increases.
- Sterling weakened against the US dollar, while the euro and yen also fell against the dollar.
- The Federal Reserve indicated it will be patient with monetary policy as it assesses the impact of US trade policy.
- The Fed maintained the target range for the federal funds rate, and US stocks rose on Wednesday.
- Asian stocks also saw gains on Thursday, with the Nikkei 225, Shanghai Composite, Hang Seng Index, and S&P/ASX 200 all ending higher.
- The Bank of England is expected to cut interest rates on Thursday, and any changes to its forward guidance will be closely watched.
- Prime Minister Keir Starmer is expected to provide an update on trade talks with the US, with reports of a potential deal with Donald Trump.
- In London, shares in Next and InterContinental Hotels Group rose, while drug makers GSK and AstraZeneca declined.
- Metro Bank's shares increased as it reported profitability in the first quarter of 2025, while Flutter Entertainment lowered its US earnings forecast.
- Brent crude oil prices dipped, while gold prices fell back from recent highs.
LONDON MARKET EARLY CALL: FTSE 100 to climb before BoE decision
- London's FTSE 100 is expected to open higher on Thursday, recovering from Wednesday's loss, ahead of the Bank of England's interest rate decision.
- US media reports suggest that Donald Trump will announce a trade deal with the UK, providing a positive sentiment boost to the market.
- The Fed maintained interest rates and signaled a patient approach, acknowledging the potential impact of tariffs on inflation and unemployment.
- Fed Chair Jerome Powell emphasized the Fed's ability to act quickly if needed but noted the uncertainty around tariffs.
- Global stock markets showed positive momentum, with gains in the US, Japan, China, and Australia.
- The Bank of England is expected to cut interest rates, and analysts anticipate a shift towards a faster pace of policy easing.
- The UK government is likely to miss its fiscal rules, potentially leading to tax hikes, according to an economic think tank.
- Economic growth forecasts for 2025 have been revised downwards to 1.2% by the National Institute of Economic & Social Research.
- Thursday's corporate calendar includes full-year results from Airtel Africa and a trading statement from Next.
- Commodity prices showed little change, with Brent crude oil and gold making minor gains.
All Market News Today 619 headlines
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