BAE shares soar however FTSE 100 struggles, Taylor Wimpey rallies
European markets are below stress after Fitch’s AAA downgrade, with the FTSE 100 index down by 0.9% or 68.01 factors at 7598.26. The flight from threat left shares together with Rio Tinto, Diageo and JD Sports Fashion about 2% lower.
Among these reporting outcomes, packaging agency Smurfit Kappa fell 14p to 3046p and the West Africa-focused gold explorer Endeavour Mining misplaced 7% or 121.84p at 1708.2p.
BAE Systems led the FTSE 100 index after its sturdy outcomes, with shares up 42p to 975.4p and again close to the document of 1037p seen in April.
Half-year figures additionally lifted demand for housebuilder Taylor Wimpey, which jumped 4.6p to 118.7p, and for medical gadgets group Convatec. The latter improved 7.6p to 213.4p after upgrading its full-year steerage.
The FTSE 250 index misplaced 127.53 factors to 18,938.13, led by a result-day decline of 6% or 9.9p to 158.1p for Spirent Communications.
Taylor Wimpey revenues hit by hovering mortgage prices
Taylor Wimpey has seen hovering mortgage charges “inevitably” affect the primary half, with the housebuilder recording a slide in earnings and income tumbling by 21%.
Chief govt Jennie Daly stated there have been “variable” market circumstances in the course of the six months to June 2, with an encouraging begin. That was earlier than a weaker second quarter when the Bank of England responded to greater than anticipated inflation by elevating rates of interest by a half level to 5%.
The FTSE 100 firm has seen 27% of its first time patrons attempt to adapt by taking out longer mortgages- over 36 years. The determine was 7% a 12 months earlier.
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Key market knowledge as FTSE 100 falls
Take a have a look at all the important thing market knowledge as the FTSE 100 misplaced greater than 60 factors on the again of Fitch downgrading US bonds.
Nuclear submarines, jet fighters and electrical airplane batteries ship BAE Systems orders to a document over £66 billion
Defence multinational BAE Systems has reported a document order backlog, sending its half-year revenue and dividend for shareholders up by over 10% every.
Its chief govt, Charles Woodburn, known as it “an increasingly uncertain world”, and stated the FTSE 100 firm’s “global footprint” and “leading technologies” meant it might “effectively support the national security requirements and multi-domain ambitions of our government customers.”
Order consumption within the six months to the top of June hit £21.1 billion, taking the backlog to £66.2 billion. Sales within the interval had been up 11% to £12 billion and underlying earnings had been £1.3 billion, up 10%.
BAE will assist Australia purchase its first nuclear-powered submarines as a part of the brand new “Aukus” defence pact between the Antipodean nation, the UK and the US. It additionally acquired orders for UK’s subsequent era of fighter jets an is engaged on the battery system for an electrical airplane, the Heary ES-30.
It lifted its dividend by 11% to 11.5p and introduced plans to return an additional £1.5 billion to buyers by way of a share buyback.
Ryanair flies document 18.7 million passengers in July
Ryanair flew 18.7 million passengers in July, shattering earlier data, as Brits sought to flee the rain atr residence regardless of harmful warmth in a lot of Europe.
The whole was up 11% from July 2022 and marked the primary time the Irish provider has flown 18 million passengers in a month. Its flights remained 96% full.
Ryanair operated 102,000 flights within the month, whereas 800 had been cancelled, principally due to strikes.
Budget airline Ryanair reduce its passenger development forecast for the total 12 months to 183.5 million (PA)
/ PA WireFellow low-cost airline Wizz Air’s passenger numbers additionally elevated, to simply over 6 million, 20% extra than in July 2022. Its CO2 emissions per passenger had been down for the month.
Brent Crude rally continues, highest in three months
The rise in oil costs continued immediately after Brent Crude traded above $85 a barrel at its highest degree in additional than three months.
The newest enhance got here after figures confirmed a bigger-than-expected decline in US crude inventories. Recent good points for the oil benchmark have adopted a voluntary manufacturing reduce by Saudi Arabia and indicators of bettering international demand.
Brent has risen for 5 weeks in a row, registering its strongest month in over a 12 months throughout July following a soar in value of 14%. It fell as far as $70 a barrel in June, from close to to $100 final August.
US credit score rating downgrade hits shares
Asia markets have fallen and benchmarks in London and New York are going through weaker classes after Fitch downgraded its US credit score rating.
The company stated its transfer from the top-notch AAA to AA+ mirrored the anticipated fiscal deterioration over the following three years, as nicely as a excessive and rising normal authorities debt burden and the “erosion of governance”.
Last night time’s downgrade, which was closely criticised by White House officers, follows an analogous transfer by S&P throughout 2011’s debt ceiling deadlock.
Deutsche Bank strategist Jim Reid stated: “S&P being the primary to downgrade 12 years in the past was far greater information and has allowed buyers to regulate for crucial bond market on the earth not being a pure AAA anymore, but it surely’s nonetheless a giant determination.”
Futures markets are displaying the S&P 500 index down by 0.3% and the Nasdaq Composite off 0.6%, whereas CMC Markets expects the FTSE 100 index to open 30 factors lower at 7636.
In Asia, markets have fallen sharply with Tokyo’s Nikkei 225 and Hang Seng in Hong Kong each down by greater than 2%.
Recap: Yesterday’s high tales
Good morning. Here’s a abstract of our high tales from yesterday:
