LIVE UPDATED: 16:39 – 02/11/23
Key events:
- The FTSE 100 closed over 1% higher on Thursday
- BoE expects inflation to fall ‘significantly further'
- The BoE keeps rates at 5.25%
16:39 – The FTSE 100 closes up
The FTSE 100 closed higher on Thursday, up 1.41% after the BoE kept rates on hold at 5.25%. However, the central bank warned that rates could stay high for some time.
Both in Europe and the US, equities made strong gains.
15:20 – The FTSE 100 rally's
European stocks have performed well so far on Thursday as we head into the last hour of trading. The FTSE 100 is up more than 1%, with Ocado shares leading the way, although they have dipped slightly after gaining over 9% earlier in the session.
BT has been another strong performer in the index after its half-year results, currently trading over 5% above Wednesday's close. Shell and Sainsbury's, which also reported updates, have both climbed more than 4%.
Elsewhere in Europe, the CAC 40 has rallied more than 2%, alongside the EuroStoxx 50 and Ibex 35.
US indices are also performing positively, with the Dow, S&P 500, and Nasdaq all up over 1%.
13:43 – BoE Governor expects Inflation to Fall ‘Significantly Further'
BoE Governor Andrew Bailey, writing exclusively for The Standard, says “inflation has fallen significantly,” and they “expect it to fall significantly further, probably to below 5%” when the October data is published in a couple of weeks.
He added that previous rate increases are working to bring inflation lower.
12:41 – Entain Edges Higher Following Q3 Release
Entain shares edged higher after releasing a Q3 update for the three months from 1 July 2023 to 30 September 2023 on Thursday.
The betting company revealed its Total Group Net Gaming Revenue (NGR), including the US, increased by 7% and 10% on a constant currency basis compared to the same period last year.
12:10 – The BoE Keeps Rates on Hold
The Bank of England has kept interest rates on hold once again for the second month in a row. The Monetary Policy Committee voted 6 to 3 to keep rates at 5.25%.
The GBPUSD jumped following the rate decision, currently up 0.49% at around 1.2210.
11:37 – Shell Shares Rise Following Q3 Results
Shell's London-listed shares are up 1.9% Thursday after reporting its third-quarter results. The oil giant reported a profit of $6.2 billion, in line with estimates. The company benefited from higher oil prices.
While Shell's profit rose from the $5.1 billion reported in Q2, it represented a decline from the $9.45 billion reported during the same period a year ago, when oil prices also surged due to the Russia-Ukraine conflict.
Shell also announced a $3.5 billion share buyback, which will be carried out over the next three months.
10:48 – Haleon Reports Organic Revenue Growth But Shares Fall
In its Q3 update, Haleon reported 5% organic revenue growth, but the company's profit declined, and it missed consensus revenue expectations.
Shares are currently down over 2%,
Read more
10:27 – Ocado the Top FTSE 100 Mover
Ocado is the biggest mover in the FTSE 100 so far on Thursday, currently up around 9.5% following a decline over the past couple of months that saw it hit lows last seen in June.
The biggest loser is Hikma Pharmaceuticals, which is down over 4%. The company reported a solid trading update, but it expects revenue and operating margin growth at the lower end of guidance.
09:33 – BT Shares Rally
BT's shares are up more than 6% at the time of writing following its half-year results for the six months ended 30 September 2023.
09:00 – Sainsbury Raises FY24 Guidance
Sainsbury raised its FY24 guidance on Thursday after strong volume and market share growth. The supermarket giant said it is gaining volume from all of its grocery competitors and has grown ahead of the market throughout the first half and made “record market share gains.”
The company now expects to report underlying profit before tax in FY 2023/24 of between £670 million and £700 million, the upper half of the previous guidance range of £640 million to £700 million. In addition, SBRY expects Retail free cash flow of at least £600 million, above the previous guidance of at least £500 million.
Sainsbury shares are currently up more than 5% after releasing the interim results.
Read more
07:00 – BoE Interest Rate Decision at 1pm
The BoE will deliver its latest interest rate decision at 12 pm, with expectations that it will keep rates on hold at a 15-year high of 5.25%. At its last meeting, the central bank chose to pause after a number of consecutive rate increases.
While inflation has declined from previous highs, it has remained elevated. In addition, Bloomberg reported that the BoE is likely to highlight the recession risks and “forecast a bleak period for the UK economy in the months leading up to the next general election.”
06:45 – Some big names are expected to report updates this morning
Companies expected to report updates today:
- Shell – Q3 earnings
- BT Group – Interim results
- Sainsbury – Interim results
06:30 – Market Recap
The FTSE 100 closed Wednesday's session higher at +0.29%, with stocks in general moving positively the day before the BoE's interest rate decision (Thursday, November 2).
The biggest mover during Wednesday's session was Next, which jumped 4.5% on the back of its positive earnings release. The biggest loser was Standard Chartered, which declined 2.73%.
