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 IPOs and placings
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 jump as investors eye interest rate peak
(Sharecast News) - London stocks jumped on Thursday, while sterling fell further after the Bank of England hiked rates for the tenth month in a row. "While the likes of Powell, Lagarde, and Bailey refrained from stating that this week's rate hike is the final twist of the knife, it could yet be one and done for some," explained Josh Mahony, senior market analyst at IG.
"Meanwhile, growing optimism that inflation has peaked brings confidence that this year will allow for the dovish pivot theme to build a bullish financial market environment this year."
The FTSE 100 added 0.76% to 7,820.16, while the pound was down 0.90% against the US dollar at 1.2264.
In parallel, the second-tier index surged by 3.60% to 20,614.69.
The BoE lifted interest rates by 50 basis points as expected, but also hinted that inflation may have peaked. Rates were increased to 4% - the highest level since October 2008 - as the Bank looks to tackle inflation.
The Monetary Policy Committee voted 7-2 to hike rates by 0.5 percentage points, with Swati Dhingra and Silvana Tenreyro opting to keep rates at 3.5%. They had also voted for no change in December.
The BoE said in a statement: "Global consumer price inflation remains high, although it is likely to have peaked across many advanced economies, including in the United Kingdom.
Looking ahead, Bank said further tightening in monetary policy would be required "if there were to be evidence of more persistent pressures".
This appeared to mark a softening from its earlier stance, as the Bank had previously said it would "respond forcefully, as necessary" to signs of further inflation and "further increases in Bank Rate may be required".
On Wednesday night, the US Federal Reserve lifted interest rates by 25 basis points, as expected, but markets rallied after Chair Jerome Powell warned that more interest rate hikes were coming and said it would be "very premature to declare victory" on inflation but acknowledged that "the disinflationary process has started".
In equity markets, fashion retailer JD Sports Fashion surged to the top of the FTSE 100 as the company revealed it is aiming to grow revenues and margins by double digits over the next five years alongside a rapid store expansion under a strategy outlined by new chief executive Regis Schultz.
Advertising giant WPP rallied as French peer Publicis surged on the back of its full-year results.
Oil and gas giant Shell slipped even as it posted a record fourth-quarter profit of $9.8bn, driven by higher trading from its liquefied natural gas (LNG) operations. Annual earnings doubled to $39.87bn, also a record, as the company cashed in on soaring energy prices inflamed by Russia's invasion of Ukraine a year ago. The full-year dividend was lifted 16% to $1.03 a share.
Shell also announced a new share buyback programme of $4bn, which is expected to be completed by the first quarter 2023 results announcement.
BT Group reversed earlier losses to trade sharply higher as the telecoms company reiterated its full-year outlook despite seeing third-quarter revenues slip.
Standard Chartered was knocked lower by a downgrade to 'neutral' at Goldman Sachs.
Centrica shares slid as the British Gas owner suspended the forced instalment of prepayment meters, after an investigation showed the homes of vulnerable customers were being broken into.
Cyber security firm NCC tumbled after it warned on profits, saying that market headwinds were impacting current trading and that it expects to cut jobs.
Market Movers
FTSE 100 (UKX) 7,820.16 0.76% FTSE 250 (MCX) 20,614.69 3.60% techMARK (TASX) 4,528.51 2.31%
FTSE 100 - Risers
Ocado Group (OCDO) 734.80p 11.30% JD Sports Fashion (JD.) 181.50p 11.15% Persimmon (PSN) 1,531.00p 8.62% SEGRO (SGRO) 920.20p 8.26% Scottish Mortgage Inv Trust (SMT) 805.40p 7.79% Hargreaves Lansdown (HL.) 944.00p 6.98% Ashtead Group (AHT) 5,732.00p 6.94% BT Group (BT.A) 132.40p 6.86% RS Group (RS1) 1,022.00p 6.74% Taylor Wimpey (TW.) 126.50p 6.66%
FTSE 100 - Fallers
Airtel Africa (AAF) 111.20p -4.39% Centrica (CNA) 98.18p -3.13% BAE Systems (BA.) 830.00p -2.81% BP (BP.) 478.80p -2.77% Standard Chartered (STAN) 669.60p -2.59% Rio Tinto (RIO) 6,064.00p -2.23% HSBC Holdings (HSBA) 591.00p -1.71% Shell (SHEL) 2,337.50p -1.23% Reckitt Benckiser Group (RKT) 5,626.00p -1.19% Imperial Brands (IMB) 2,034.00p -0.78%
FTSE 250 - Risers
Carnival (CCL) 878.80p 13.69% Future (FUTR) 1,715.00p 12.61% Molten Ventures (GROW) 395.00p 12.28% Currys (CURY) 78.20p 12.03% ASOS (ASC) 982.00p 10.15% Hammerson (HMSO) 29.21p 9.69% LondonMetric Property (LMP) 207.00p 9.12% Liontrust Asset Management (LIO) 1,290.00p 8.95% Target Healthcare Reit Ltd (THRL) 87.10p 8.74% JTC (JTC) 785.00p 8.73%
FTSE 250 - Fallers
Paragon Banking Group (PAG) 576.00p -5.26% NCC Group (NCC) 176.20p -4.45% Hunting (HTG) 339.00p -3.56% Balfour Beatty (BBY) 363.00p -1.47% Virgin Money UK (VMUK) 187.90p -1.34% Ferrexpo (FXPO) 156.80p -1.07% Tullow Oil (TLW) 34.68p -0.86% Telecom Plus (TEP) 1,960.00p -0.71% Wood Group (John) (WG.) 139.80p -0.57% Harbour Energy (HBR) 309.40p -0.51%
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 and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | 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.