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FTSE 100 Live 12 September: Blue-chip index surges 1%, Fevertree and Trainline post updates

FTSE 100 Live (Evening Standard)
FTSE 100 Live (Evening Standard)

FTSE 100 jumps 1%, Trainline up 11% after update but Fevertree lower

08:38

The FTSE 100 index has bounced 1% or 84.97 points to 8278.91, reflecting the impetus from last night’s strong finish for Wall Street markets.

Big risers included Scottish Mortgage Investment Trust, which jumped 22.2p to 816.6p thanks to yesterday’s 8% surge for portfolio company Nvidia.

A broker upgrade meant drinks firm Diageo also featured on the FTSE 100 risers board as shares added 2% or 60.5p to 2494.5p. Glencore also fared well, lifting 9.35p to 371.15p following a recovery in the copper price.

Investment manager M&G fell 5.2p to 203.9p after the high-yielding stock traded without the right to its latest dividend award.

The FTSE 250 index improved 212.72 points to 20,749,97, led by Trainline’s rise of 11% or 31.8p to 332p after its upgrade to full-year guidance.

Precision measurement firm Renishaw put on 50p to 3350p after its results while figures by construction firm Kier left its shares broadly unchanged.

AIM-listed Fevertree Drinks fell 8% or 66.6p to 795.9p after lowering full-year revenues guidance due to the impact of June’s poor weather.

ECB policymakers seen making second rate cut

07:56 , Graeme Evans

The European Central Bank’s (ECB) policy decision is due at 1.15pm, with a quarter point reduction in deposit rate to 3.5% fully priced in by markets.

Peel Hunt said the risks to growth, the continued easing of inflation and wage pressures, and well-anchored medium-term inflation expectations made today’s decision by a data-dependent ECB “an easy and uncontroversial decision.”

After cutting in June and pausing in July, another reduction today will reinforce expectations that the ECB is lowering rates in a repeated cut and pause pattern.

Peel Hunt said the key question is whether such an approach is still the right one amid signs of slowing momentum.

It added: “Any signs of a shift in the ECB’s reaction function towards growth risks and away from inflation risks may lead to a recalibration of money market expectations towards a steeper expected path of rate cuts.”

Trainline lifts guidance as ticket sales hit £3bn

07:41 , Graeme Evans

Trainline today boosted its full-year guidance as the online ticketing firm benefits from increased competition between rail carriers in Europe.

Net ticket sales increased to £3 billion in the six months to 31 August, a rise of 14% and ahead of Trainline’s full-year guidance range between 8% and 12%.

Revenues of £229 million grew by 17%, above the company’s forecast of between 7% and 11%.

UK consumer net ticket sales were £2 billion, 15% higher as industry e-ticket penetration grew to 51% of sales in the half-year from 46% the year before.

The performance also reflected a reduced impact from strike action as UK consumer revenues grew 17% to £106 million. In Spain, the company has tripled net ticket sales in the last two years.

Trainline now sees full-year net ticket sales and revenue growth at the top end of their respective guidance ranges and adjusted earnings above expectations.

Kier Group pays down debt as profits rise and order book nears £11 billion

07:34 , Michael Hunter

Kier Group, the construction firm behind a range of projects across London, has reported a rise in annual revenue of almost a fifth and higher profit.

It was helped by a “high quality order book” which reached almost £11 billion, up 7%.

Profit before tax for the year to the end of June rose almost a third to £68.1 million.

It said that the increased earnings meant it was able to cut debt.

Andrew Davies, CEO, said: “The contracts within our order book reflect the bidding discipline and risk management now embedded in the business.

I am also pleased to report that the Group significantly reduced its average month-end net debt position as well as improved its year-end net cash position

Current trading is in line with its expectations, Kier said.

The company redeveloped Twickenham Gateway in partnership with Network Rail and refurbished Morley House on Regent Street for The Crown Estate.

Fevertree sales brighten after June washout

07:28 , Graeme Evans

Fevertree Drinks today reported strong summer trading, with sales growth of 13% in July and August boosted by a surge in demand for its Mojito cocktail mixer.

The group now expects to deliver brand growth of between 7% and.10% for the second half of the year, although the impact of June’s poor weather means the full-year performance will be short of hopes at 4%-5%.

Fevertree revenues for the first half were broadly unchanged at £170.6 million, up 2% on a constant currency basis. Strong margin recovery lifted underlying earnings by 79% to £81.2 million.

Chief executive Tim Warrillow said: “The Fevertree brand performed well against a tough market backdrop.”

Index seen higher, US stocks rally on rate cut optimism

07:07 , Graeme Evans

The FTSE 100 index is poised for a strong session after Wall Street rallied on optimism that the Federal Reserve is set to cut interest rates next week.

The S&P 500 index lifted 1.1% and the Nasdaq by 2.2% after figures earlier in the day revealed US inflation dropped to an annual rate of 2.5% in August.

Core inflation came in slightly higher than expected, diminishing the chances that policymakers will opt for a more aggressive 0.5% cut.

The focus on monetary policy continues later, with the European Central Bank expected to reduce its deposit rate for the second time in the cycle to 3.5%.

The FTSE 100 fell 0.15% yesterday but is forecast to open today’s session about 97 points higher at 8297.