of FTSE100 It ended the day at 7,662.51 points, down 0.73%. FTSE250 It rose 0.05% to close at 19,118.97 points.
Shares of banking giant HSBC and mining company Glencore also fell following the announcement of financial results.
On the currency market, the pound rose 0.01% against the dollar to trade at $1.2624, while against the euro it fell 0.07% to trade at 1.1671 euros.
“Stock indexes remained largely unchanged during multiple Fed, ECB, and MPC member speeches as investors remained cautious ahead of the release of the FOMC minutes and after Nvidia’s strong results.” said. I.G. Axel Rudolph, Senior Market Analyst.
“Meanwhile, the UK public sector recorded its largest ever surplus and CBI factory orders were better than expected, both of which indicate that the current recession may be shallow.”
“Mortgage rates in the United States once again exceeded 7%, and new home prices unexpectedly fell in Canada.”
Rudolph added that U.S. natural gas prices have risen about 10% from 3-1/2-year lows as gas producers seek to scale back drilling activity and cut production.
“Amid rising tensions in the Middle East, oil prices on the day recovered their initial decline, and gold prices maintained their upward trajectory for the sixth straight day.”
Manufacturing is mixed as UK hits record borrowing surplus
In economic news, Federation of British Industry (CBI) revealed that the performance of the UK manufacturing sector was mixed.
According to the Industrial Trends Survey, production decreased in the three months to February, and the net balance was -19, down from -10 in January.
Production decreased in 15 of the 17 subcategories, including chemicals, automobiles, and transportation equipment.
Nevertheless, there were signs of improvement in the order book, although it was reported to still be below normal for this time of year.
The balance rose to -20 from -30 in January, slightly above consensus expectations.
The export backlog also showed improvement, although it was below normal, with the balance increasing from -27 in the previous month to -14, exceeding the long-term average of -18.
However, the increase in sales price expectations was significant, rising from 9 in January to 17, the highest level since July 2023.
“The situation for UK manufacturing remains challenging,” deputy chief economist Anna Leach said. C.B.I..
“However, there were some encouraging signs: Orders have improved and manufacturers continue to expect production to improve in the coming months.
“It is vital that the Prime Minister seizes this opportunity to put the country on a sustainable growth path as we prepare for the Budget.”
Meanwhile, official data from the Office for National Statistics (ONS) revealed that the UK achieved a record monthly borrowing surplus in January, albeit narrowly below expectations.
Net public sector borrowing, excluding public sector banks, hit a surplus of more than £16.7bn last month, more than double the £7.5bn surplus recorded in January last year and the first monthly record since 1993. It was the largest since then.
Analysts had expected the surplus to be closer to £18.5bn, but the actual figure was lower.
The large surplus was due to self-assessed tax returns due on 31 January, with total income from self-assessed income tax and capital gains tax of £33bn, down £1.8bn on the previous year.
However, borrowing fell by £3.1bn to £96.6bn in the year to January as falling inflation reduced debt servicing costs.
Lower-than-expected debt interest payments also contributed to total central government spending, which came to £102.6bn, slightly below the Office for Budget Responsibility’s forecast of £103.9bn.
ONS Deputy Director-General Jessica Barnaby said: “Despite increased spending on public services and benefits due to lower RPI rates, interest paid on the government’s national debt and the absence of last year’s energy support scheme, overall “Spending is down from this time last year.” Public institution.
“Public sector debt as a share of GDP has been increasing year on year and remains at levels last seen in the 1960s.”
On the continent, Germany was the first to significantly revise its economic forecasts downward in response to weak global demand and growing geopolitical uncertainty.
Production growth in 2024 is currently expected to be only 0.2%, a government spokesperson told reporters, in sharp contrast to the previous forecast of 1.3% released in the fall. said.
HSBC slides results, BT in green position
On the London stock market, HSBC Holdings The stock plunged 8.39% after announcing record annual profit growth and a $2 billion share buyback.
The banking giant fell short of expectations as it absorbed a $3 billion hit from exposure to Chinese banks.
HSBC’s full-year pre-tax profit rose 78% to $30.3 billion due to high global interest rates, but fell short of the average forecast of $34.1 billion compiled by brokerages.
“The company is suffering from a $3 billion charge on its stake in a Chinese bank and write-downs related to the sale of commercial real estate and its French operations. That disrupted its results a bit and led to missed results. “What are the full-year forecasts?” AJ Bell Danny Hewson, Head of Financial Analysis;
“There is some fabrication in this outlook, as the company now expects its previously targeted profit margin to reach the mid-teens in 2024, but only if one-time factors are removed. It will be done.
“Costs are going up and loan losses are going in the wrong direction from the banks’ point of view.”
In other places, glencore The company fell 1.45% after the company reported that its full-year adjusted EBITDA was halved due to lower commodity prices.
Similarly, rio tinto The company fell 1.46% after revealing a $1.5 billion hit to underlying profit in 2023 due to commodity price fluctuations, partially offset by a stronger dollar and lower energy prices.
BAE Systems Despite reporting higher-than-expected full-year profits and expecting further sales growth this year, the stock fell 0.9%.
Rising geopolitical tensions, which typically cause governments to increase military spending, did not prevent the company’s decline.
dark trace and close sibling group faced significant declines of 7.35% and 8.39%, respectively.
Cybersecurity firm Darktrace fell after U.S. peer Palo Alto Networks lowered its full-year earnings outlook, while Close Brothers remained under pressure from continued concerns over regulatory investigations into auto lending. I received it.
On the positive side, BT Group It rose 1.64% following the announcement of the sale of BT Tower to MCR Hotels for £275m.
MCR said it intends to preserve the landmark formerly known as the Post Office Tower as an iconic hotel.
Report by Josh White of Sharecast.com.
market mover
FTSE100 (UK X) 7,662.51 -0.73%
FTSE250(MCX) 19,118.97 0.05%
Techmark (TASX) 4,355.73 -0.38%
FTSE 100 – Riser
InterContinental Hotels Group (IHG) 8,530.00p 2.35%
International Consolidated Airlines Group SA (CDI) (IAG) 150.95p 2.20%
BT Group (BT.A) 108.60p 1.64%
Beazley (BEZ) 582.00p 1.48%
CRH (CDI) (CRH) 6,224.00p 1.37%
B&M Europe Value Retail SA (DI) (BME) 524.20p 1.31%
Halma (HLMA) 2,310.00 pence 1.23%
Sainsbury (J) (SBRY) 259.30p 1.17%
Endeavor Mining (EDV) 1,312.00p 1.16%
Convatec Group (CTEC) 245.00p 1.16%
FTSE 100 – Falls
HSBC Holdings (HSBA) 589.80p -8.39%
Centrica (CNA) 129.30p -3.07%
Entain (ENT) 898.80p -2.62%
Flutter Entertainment (DI) (FLTR) 16,165.00p -2.56%
Ocado Group (OCDO) 518.20p -2.56%
Croda International (CRDA) 4,906.00p -1.86%
Vodafone Group (VOD) 65.96p -1.65%
Rio Tinto (RIO) 5,151.00p -1.51%
Smith (DS) (SMDS) 320.00p -1.30%
DCC (CDI) (DCC) 5,752.00p -1.27%
FTSE 250 – Riser
Curry (CURY) 68.55p 4.10%
Octopus Renewable Infrastructure Trust (ORIT) 78.30p 3.85%
Greencoat UK Wind (UKW) 134.10p 3.55%
Target Healthcare REIT Co., Ltd. (THRL) 78.80p 3.55%
Genus (GNS) 1,912.00p 3.35%
Bank of Georgia Group (BGEO) 4,385.00p 3.30%
Indivia (INDV) 1,356.00 pence 3.20%
Tritax Eurobox (GBP) (EBOX) 52.40p 3.15%
Baltic Advertising Group (BCG) 243.00p 2.97%
Aston Martin Lagonda Global Holdings (AML) 170.60p 2.96%
FTSE 250 – Falls
Byte Technology Group (BYIT) 537.00p -10.72%
Close Brothers Group (CBG) 323.40p -8.39%
Urban Logistics REIT (SHED) 118.60p -5.57%
Darktrace (DARK) 342.00p -5.00%
Oxford Instruments (OXIG) 2,095.00 pence -4.12%
Trustpilot Group (TRST) 185.60p -3.93%
Future (FUTR) 670.50p -2.47%
Kainos Group (KNOS) 1,060.00p -2.21%
Victrex plc (VCT) 1,321.00p -2.08%
Edinburgh Worldwide Investment Trust (EWI) 144.20p -2.04%