London’ FTSE 100 was relatively flat following a busy series of results from Lloyds, Rolls-Royce, Beazley and Indivior, the latest firm to jump from the capital’s markets.
The capital’s blue-chip index was hovering between being flat and marginally in the red, being 0.08 per cent down by 10am, at 7,662.31.
The FTSE 250, which is more aligned with the UK’s domestic market, was in the green around 0.27 per cent up, with Indivior’s shares up 18 per cent.
Shortly after 9.30am, it was revealed the UK is already powering away from the shallow recession recorded in the second half of last year as business activity picked up again in February.
Private sector output rose to its highest level in nine months in February, surprising economists who had expected a slight fall in activity, according to the latest S&P’s purchasing managers’ index (PMI).
The biggest corporate new this morning was Lloyds Banking Group, which reported an uptick in annual profits on the back of higher interest rates while setting aside £450m for an FCA motor finance probe.
Its shares were down by about 1.59 per cent in early trading.
The biggest riser on the FTSE 100 was Beazley, up more than nine per cent, after the insurer said shareholders will reap the rewards of a strong 2023 as it aims to put $300m (£236.7m) into their pockets.
Rolls-Royce Holdings shares were up more than six per cent, after it reported another set of strong results. The British engineering and defence behemoth said it also had record free cash flow, as its new chief executive led a remarkable turnaround.
Meanwhile, advertising giant WPP reiterated its plans to invest £250m in proprietary technology to enhance its AI and data position. Its shares were the biggest faller on the FTSE 100, down more than three per cent.
The biggest riser on the 250 was Invidior, up 19 per cent, the opioid dependence treatment maker, which said said it will start consultations with shareholders on plans to shift its primary listing to the US in yet another blow to the London Stock Exchange.
Jupiter also rose by more than six per cent after the London asset manager surprised markets by exceeding expectations in its annual results, as profits surged to £105.2m, 15 per cent ahead of analyst forecasts.
Hargreaves Lansdown fell the most on the 250, after it reported market growth and interest from cash push its assets under administration for the firm up to £142.2bn. Its shares fell by more than 7.5 per cent by 10am.
Elsewhere, the chief executive of global recruitment firm Hays has said he is “not satisfied” with the company’s performance as demand for permanent jobs slipped again amid an increasingly difficult economic environment. The recruitment industry is often seen as a litmus test of the wider economy.
The capital also woke up to positive Asian trading, and strong results from Nvidia, which revealed another stunning set of earnings, reporting record sales of $22.1bn in its fourth quarter, ahead of analyst estimates, in a sign that the artificial intelligence (AI) boom is far from over.
Sentiment was set to be boosted after Japan’s Nikkei beat its record reached in 1989, closing at 39,098.68, underpinned by strong earnings and tech optimism.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “The Nikkei has re-found its mojo but it’s been a long time coming. The Japanese stock market peaked in December 1989, and in the years since the Nikkei has been unable to break higher. But the recent red-hot rally in Japanese stocks has helped the index finally beat the previous record set 34 years ago.
“The Nikkei has been buoyed by another wave of excitement for the prospects for the tech sector, coming off the back of Japanese companies logging record quarterly profits. The weaker yen has helped exporters like Toyota, Honda and Sony, with strong demand for vehicles, machinery and computer chips from around the world.”
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