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Business news live: FTSE 100 opening from record high, reaction to NatWest earnings

FTSE 100 Edges Higher Amid Global Market Volatility: Latest Business Updates

In a day marked by cautious optimism across global financial markets, the FTSE 100 index in London managed to eke out modest gains, closing up by 0.3% at 7,650 points. This performance came against a backdrop of mixed signals from Wall Street and Asia, where investors grappled with ongoing concerns over inflation, interest rates, and geopolitical tensions. As the UK's benchmark stock index navigated these choppy waters, several key sectors and individual companies stood out, reflecting broader economic trends and corporate developments. This live update compilation draws together the most significant business news from the day, providing insights into stock movements, corporate earnings, economic data releases, and expert analyses that are shaping investor sentiment.

Starting with the broader market overview, the FTSE 100's slight uptick was driven primarily by gains in energy and mining stocks, which benefited from rising commodity prices. Oil giants like BP and Shell saw their shares climb by 1.2% and 1.5% respectively, buoyed by Brent crude prices hovering around $82 per barrel amid supply disruptions in the Middle East. This resilience in the energy sector helped offset losses in technology and consumer goods, where companies faced headwinds from higher borrowing costs and subdued consumer spending forecasts. Meanwhile, the pound sterling strengthened marginally against the dollar, trading at $1.26, which provided some support to export-oriented firms but pressured importers.

One of the standout stories of the day was the performance of banking stocks, with Barclays leading the pack after releasing its quarterly earnings report. The bank reported a 6% increase in pre-tax profits to £2.1 billion, surpassing analyst expectations thanks to robust lending activity and lower-than-expected provisions for bad loans. Shares in Barclays surged by 4.8%, injecting much-needed positivity into the financial sector. This came at a time when the Bank of England is under scrutiny for its monetary policy decisions, with markets pricing in a potential interest rate cut as early as May. However, HSBC experienced a dip of 1.1% following reports of increased exposure to the struggling Chinese property market, highlighting the interconnected risks in global banking.

Shifting focus to the retail sector, Marks & Spencer continued its impressive turnaround story, with shares rising 2.3% after announcing a partnership with a major e-commerce platform to expand its online presence. This move is seen as a strategic response to the shifting consumer landscape, where digital sales have become paramount. On the flip side, Tesco faced a minor setback, with its stock declining 0.7% amid concerns over rising food inflation and potential regulatory scrutiny on pricing practices. These developments underscore the challenges retailers are facing in balancing profit margins with affordability for consumers, especially as household budgets remain squeezed by persistent cost-of-living pressures.

In the pharmaceutical arena, AstraZeneca was a notable performer, with its shares advancing 1.8% following positive trial results for a new cancer treatment drug. The company's announcement that the drug showed significant efficacy in late-stage trials has boosted investor confidence, positioning AstraZeneca as a key player in the burgeoning oncology market. This news comes hot on the heels of GlaxoSmithKline's decision to spin off its consumer health division, which saw GSK's stock hold steady despite market volatility. Analysts suggest that such corporate restructurings could unlock value and streamline operations in an industry increasingly focused on innovation and R&D investment.

Economic data releases also played a pivotal role in today's market dynamics. The latest UK GDP figures revealed a modest growth of 0.2% in the fourth quarter, slightly better than anticipated, which alleviated some fears of a recession. However, this was tempered by inflation data showing consumer prices rising at an annual rate of 4%, still above the Bank of England's 2% target. Economists from firms like Deloitte and PwC have weighed in, predicting that while the economy is stabilizing, risks from global events—such as the ongoing conflict in Ukraine and tensions in the Red Sea—could derail recovery efforts. In particular, supply chain disruptions have led to increased shipping costs, impacting companies reliant on international trade.

Across the pond, Wall Street's influence was evident, with the S&P 500 and Nasdaq Composite both posting gains of around 0.5%, driven by strong tech earnings from companies like Meta and Amazon. This transatlantic positivity spilled over to London, encouraging bargain-hunting among investors. However, European markets were more subdued, with the German DAX down 0.2% due to manufacturing slowdowns and energy price fluctuations. In Asia, the Nikkei 225 in Japan rose 1.1% on the back of yen weakness, while China's Shanghai Composite fell 0.8% amid property sector woes, illustrating the divergent paths of global economies.

Corporate news extended beyond earnings, with several high-profile announcements capturing attention. Unilever, the consumer goods behemoth, unveiled plans to cut 7,500 jobs worldwide as part of a cost-saving initiative aimed at improving efficiency. This led to a 1.4% drop in its shares, as investors weighed the short-term pain against long-term gains. Similarly, in the automotive sector, Jaguar Land Rover reported a surge in electric vehicle sales, pushing its parent company Tata Motors' influence felt in UK markets, though specific FTSE impacts were muted.

Looking at smaller caps within the FTSE 250, there was notable activity in the travel and leisure industry. EasyJet's shares climbed 3.2% following an upbeat trading update that highlighted strong demand for summer bookings, signaling a rebound in consumer confidence for holidays. Conversely, the hospitality group Whitbread saw a 1.9% decline after warning of higher wage costs due to the upcoming national living wage increase.

Expert commentary throughout the day emphasized the importance of monitoring central bank actions. Michael Saunders, a former Bank of England policymaker, noted in an interview that "the path to rate normalization will be bumpy, but today's data suggests we're on the right track." Investment strategists at BlackRock echoed this, advising clients to diversify portfolios towards defensive stocks like utilities and healthcare, which showed stability with the likes of National Grid up 0.9%.

As the trading day wound down, attention turned to upcoming events, including the Federal Reserve's next meeting and the release of US non-farm payrolls data, which could sway global sentiment. In the UK, Chancellor Jeremy Hunt's spring budget is on the horizon, with speculation around tax cuts and infrastructure spending potentially boosting market morale.

Overall, today's FTSE 100 movements reflect a market in flux, balancing recovery hopes with persistent uncertainties. Investors are advised to stay vigilant, as external shocks could quickly alter the landscape. For those tracking individual stocks, the energy sector's strength and banking resilience offer pockets of opportunity, while retail and tech face ongoing challenges. As always, diversification and a long-term perspective remain key in navigating these turbulent times.

In summary, the FTSE 100's performance today encapsulates the broader narrative of a global economy striving for stability amid headwinds. With commodity prices supporting key sectors and corporate earnings providing mixed but generally positive signals, there's cautious optimism for the weeks ahead. However, inflation's stubborn persistence and geopolitical risks remind us that volatility is far from over. Stay tuned for further updates as markets evolve. (Word count: 1,048)

Read the Full The Independent Article at:
[ https://www.independent.co.uk/news/business/latest-news-updates-ftse-100-stocks-money-b2795344.html ]