London open: Banking and mining stocks lift FTSE 100 to new heights

(Sharecast News) - London's FTSE 100 raced ahead of the 8,100 level on Friday morning, helped by strong results from NatWest and decent gains in the mining sector provided a lift. One hour after markets opened, the UK's top-tier index was up 0.5% at 8,121, on track to notch its fourth record close of the week. The benchmark finished Thursday's session at 8,078.86, having gained 3.3% in the past eight trading sessions.

In economic news, UK consumer confidence edged higher in April, a long-running survey showed on Friday, as falling inflation helped boost sentiment. The latest GfK Consumer Confidence Index rose two points to -19, after March's score of -21 was unchanged on February. In April 2023, the index stood at -30.

Joe Staton, client strategy director at GfK, said: "While the overall index score remains negative, all of the underlying five measures this April are significantly better than they were last April.

US inflation in focus

Wall Street stocks finished sharply lower on Thursday after US GDP data revealed that, while economic growth slowed sharply in the first quarter, price pressures picked up with the so-called core price deflator nearly double the rate of the preceding two quarters.

Friday will see the release of March's personal consumption expenditures (PCE) index - the Federal Reserve's preferred measure of inflation - due out at 1330 BST, which is expected to show annual inflation rising to 2.6% from 2.5% in February. The core PCE index however is forecast to slow to 2.6% from 2.8%.

"The fear is to see a higher inflation print, of course, which would further batter the Fed cut expectations. But the 'good' news is, it looked like yesterday's price action already embedded today's core PCE print. Therefore, bad news are - at least - partially priced in," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

NatWest rises on Q1 beat

NatWest posted a less-than-expected 27% fall in first-quarter earnings, with pre-tax operating profits falling to £1.3bn from £1.8bn a year earlier. Analysts were forecasting a figure closer to £1.2bn. "NatWest Group has delivered a strong set of results for the first quarter - with an operating profit of £1.3 billion - as we remain focused on the priorities we set out in February, which will help us shape the future of this bank," said chief executive Paul Thwaite.

Lloyds, Standard Chartered and HSBC were also in demand, while Barclays was lower.

Mining stocks were mostly higher as commodities prices rose, with Rio Tinto, Glencore and Antofagasta in positive territory.

However, Anglo American was bucking the trend after rejecting an "opportunistic" £31bn bid from rival miner BHP, saying it significantly undervalued the company. The stock surged 16% on Thursday. "The BHP proposal is opportunistic and fails to value Anglo American's prospects, while significantly diluting the relative value upside participation of Anglo American's shareholders relative to BHP's shareholders," Anglo said in a statement. The company also said the proposed structure was also "highly unattractive".

Pearson was in the red despite saying that its first-quarter performance was in line with its expectations. The educational publisher and services group also said that it was on track to achieve its 2024 guidance.

Market Movers

FTSE 100 (UKX) 8,121.46 0.53% FTSE 250 (MCX) 19,753.27 0.77% techMARK (TASX) 4,533.70 0.40%

FTSE 100 - Risers

Pershing Square Holdings Ltd NPV (PSH) 3,962.00p 3.23% NATWEST GROUP (NWG) 299.10p 3.21% Hikma Pharmaceuticals (HIK) 1,903.00p 2.64% Ashtead Group (AHT) 5,910.00p 2.60% St James's Place (STJ) 431.60p 2.52% Schroders (SDR) 355.60p 2.42% Persimmon (PSN) 1,313.50p 2.42% Centrica (CNA) 134.45p 2.32% Intermediate Capital Group (ICG) 2,020.00p 2.28% Fresnillo (FRES) 591.00p 2.07%

FTSE 100 - Fallers

Convatec Group (CTEC) 260.00p -5.66% Barclays (BARC) 200.15p -1.89% Pearson (PSON) 976.60p -1.51% Intertek Group (ITRK) 4,910.00p -0.77% Smith (DS) (SMDS) 337.80p -0.65% Compass Group (CPG) 2,219.00p -0.58% Next (NXT) 9,054.00p -0.55% Flutter Entertainment (DI) (FLTR) 14,810.00p -0.44% Ocado Group (OCDO) 360.90p -0.39% BAE Systems (BA.) 1,316.00p -0.30%

FTSE 250 - Risers

Darktrace (DARK) 622.40p 20.39% Target Healthcare Reit Ltd (THRL) 79.00p 4.36% Elementis (ELM) 141.80p 3.81% Abrdn (ABDN) 146.35p 3.68% Dr. Martens (DOCS) 73.90p 3.57% Diversified Energy Company (DEC) 1,128.00p 3.30% Bridgepoint Group (Reg S) (BPT) 226.20p 2.91% Polar Capital Technology Trust (PCT) 2,910.00p 2.65% Renishaw (RSW) 4,165.00p 2.46% Jupiter Fund Management (JUP) 76.60p 2.41%

FTSE 250 - Fallers

Currys (CURY) 60.25p -2.43% Foresight Solar Fund Limited (FSFL) 85.10p -1.85% Dunelm Group (DNLM) 967.00p -1.63% WH Smith (SMWH) 1,163.00p -1.61% Moonpig Group (MOON) 152.60p -1.55% Impax Environmental Markets (IEM) 376.00p -1.44% Templeton Emerging Markets Inv Trust (TEM) 152.40p -1.30% Syncona Limited NPV (SYNC) 125.60p -1.10% Petershill Partners (PHLL) 202.50p -0.98% Inchcape (INCH) 778.50p -0.95%