London close: Stocks rise as investors look to Nvidia earnings
By Josh White
Date: Wednesday 26 Feb 2025
(Sharecast News) - London stocks ended higher on Wednesday, with investors maintaining a cautious yet positive stance ahead of Nvidia's earnings release in the United States later in the global day.
The FTSE 100 index advanced 0.72% to close at 8,731.46 points, while the FTSE 250 also gained 0.72%, settling at 20,595.90 points.
In currency markets, sterling was last up 0.26% on the dollar to trade at $1.2699, as it gained 0.25% against the euro, changing hands at €1.2077.
"US stock indices stemmed this week's falls despite US new home sales dropping more than expected as investors instead focus on after-hours Nvidia earnings, which are likely to determine the next few days' trend," noted IG senior technical analyst Axel Rudolph.
"European indices led the way with the DAX 40 rising close to 1.5% and once again trading close to its record high despite German consumer morale unexpectedly falling."
Rudolph noted that most commodity prices slid on Wednesday, except copper and steel prices which rose by more than a percentage point amid new US tariff threats.
"Gold, silver and crude oil prices were little changed on the day but natural gas and heating oil prices fell by around 2.5%-to-3% amid more clement weather forecasts."
Ukraine-US deal lacks security guarantees, UK retailers warn of cost increases
In geopolitical news, Ukrainian president Volodymyr Zelenskyy confirmed that a minerals agreement with the United States did not include security guarantees for Ukraine, despite initial expectations.
The deal, set to be signed in Washington on Friday during Zelenskyy's meeting with US president Donald Trump, was focussed on the joint development of Ukraine's natural resources, including oil and gas.
While Kyiv had originally pushed for security commitments as part of the agreement, the final terms instead would establish a fund allocating 50% of proceeds from future resource monetisation to Ukraine.
The absence of explicit guarantees had sparked debate in Ukraine, with prime minister Denys Shmyhal asserting that the deal was still tied to broader security discussions.
Tensions between Trump and Zelenskyy had been rising, particularly after recent US-Russia ceasefire talks in Saudi Arabia that excluded Ukraine.
Trump, meanwhile, reiterated his stance that US financial and military aid had been crucial in sustaining Kyiv's war effort.
On home shores, the UK retail sector warned of significant job losses due to regulatory changes that could make part-time employment increasingly unviable.
The British Retail Consortium estimated that up to 160,000 positions could be at risk over the next three years, with part-time workers disproportionately affected.
It said the expected cuts stemmed from rising costs tied to employer National Insurance contributions and an increase in the National Living Wage, both of which were announced in the most recent Budget.
Industry leaders had expressed concerns that upcoming reforms, including new taxation thresholds and employment regulations, would further pressure retailers, particularly those reliant on seasonal and student workers.
In response, the BRC said it was launching a policy initiative aimed at protecting jobs and fostering investment in the sector.
"Retail is a key source of employment right across the economy - the industry and its supply chains account for a third of jobs in one-fifth of UK constituencies and retail plays a vital role in upskilling the workforce and boosting productivity growth, currently spending £4bn a year on training," said BRC chief executive Helen Dickinson.
"Retail has long offered the first rung of the career ladder to hundreds of thousands of young people, playing a vital role in communities up and down the country.
"However, between rising employer National Insurance contributions, higher NLW costs, and incoming employment regulations, the government may be kicking away the ladder for the next generation."
On the continent, Germany's consumer sentiment looked set to weaken in March, according to the latest survey from GfK and the Nuremberg Institute for Market Decisions.
The consumer climate index dropped to -24.7 points from -22.6 in February, reaching its lowest level since April last year.
That reading fell short of analyst expectations, which had projected an improvement to -21.4, reflecting continued economic uncertainty among German households.
Across the Atlantic, new home sales in the US fell sharply in January, reaching their lowest level in three months.
According to data from the Census Bureau and the Department of Housing and Urban Development, single-family home sales declined 10.5% from December to an annual rate of 657,000, missing forecasts of 680,000.
The downturn was most pronounced in the Northeast, where sales fell 20%, followed by declines of 16.7% in the Midwest and 14.8% in the South.
The West was the only region to see an increase, with sales rising 7.7%.
However, the inventory of new homes on the market rose to its highest level since 2007, with 495,000 properties available, representing a nine-month supply at current sales rates.
ConvaTec rises on jump in profit, Hikma slides despite revenue growth
On London's equity markets, ConvaTec Group rose 6.56% after reporting a jump in full-year profit and revenue.
The medical products company said it expected further strategic progress in 2025, reinforcing investor confidence.
Pets at Home surged 6.94% following speculation that the company could be the target of a takeover, with markets blog Betaville suggesting private equity interest, possibly from a firm with a similar business in the US.
Defence contractor Chemring Group added 3.08% after reporting a record-high order book, although it did not comment on recent speculation of a buyout approach from Bain Capital.
Meanwhile, Burberry gained 4.72% after Kepler Cheuvreux upgraded the stock, anticipating a slow recovery in European luxury sales through the second half of 2025 and a full margin rebound by 2026.
On the downside, Hikma Pharmaceuticals fell 5.75% despite strong annual revenue growth, as core operating profits and weaker margins disappointed investors.
Aston Martin Lagonda plunged 11.34% after announcing plans to cut 5% of its global workforce and delaying the launch of its first electric vehicle to later in the decade, further extending a timeline that had already been pushed to 2027.
The luxury carmaker also reported a widening of its annual losses.
BP declined 1.76% after it announced a strategic shift, cutting investments in low-carbon and alternative fuels while increasing spending on oil and gas.
The energy major said it expected structural cost reductions of between $4bn and $5bn by 2027, and was planning to reallocate capital to drive free cash flow and shareholder returns.
Elsewhere, Hammerson slid 6.7% after reporting a sharp increase in full-year losses, largely due to a £497m impairment on its "value retail" portfolio.
The property developer's IFRS losses ballooned to £526m in 2024 from £51m in the prior year, with adjusted earnings also falling due to disposals.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 8,731.46 0.72%
FTSE 250 (MCX) 20,595.90 0.72%
techMARK (TASX) 4,753.02 0.41%
FTSE 100 - Risers
Hiscox Limited (DI) (HSX) 1,119.00p 4.97%
Convatec Group (CTEC) 259.00p 4.86%
Lloyds Banking Group (LLOY) 71.76p 4.58%
Entain (ENT) 741.60p 4.16%
Barclays (BARC) 308.95p 4.08%
Standard Chartered (STAN) 1,248.50p 3.96%
Flutter Entertainment (DI) (FLTR) 21,570.00p 3.95%
Beazley (BEZ) 858.50p 3.75%
Smith & Nephew (SN.) 1,148.00p 3.66%
Antofagasta (ANTO) 1,791.50p 3.55%
FTSE 100 - Fallers
Hikma Pharmaceuticals (HIK) 2,154.00p -6.18%
Relx plc (REL) 3,805.00p -2.56%
Persimmon (PSN) 1,175.00p -2.53%
Intertek Group (ITRK) 5,120.00p -2.10%
BAE Systems (BA.) 1,345.00p -1.54%
BP (BP.) 430.90p -1.37%
Unite Group (UTG) 842.00p -1.35%
Pearson (PSON) 1,317.00p -1.16%
GSK (GSK) 1,467.00p -1.11%
Centrica (CNA) 147.60p -1.07%
FTSE 250 - Risers
Burberry Group (BRBY) 1,108.00p 7.83%
Pets at Home Group (PETS) 248.20p 7.73%
Wizz Air Holdings (WIZZ) 1,657.00p 5.95%
Indivior (INDV) 651.00p 5.51%
Alpha Group International (ALPH) 2,780.00p 4.12%
Lancashire Holdings Limited (LRE) 602.00p 3.44%
Foresight Solar Fund Limited (FSFL) 76.50p 3.38%
Ferrexpo (FXPO) 77.20p 3.35%
Lion Finance Group (BGEO) 5,590.00p 3.14%
Chemring Group (CHG) 385.00p 3.08%
FTSE 250 - Fallers
Aston Martin Lagonda Global Holdings (AML) 97.00p -11.98%
Hammerson (HMSO) 272.40p -5.87%
ITV (ITV) 71.25p -4.17%
Wood Group (John) (WG.) 36.86p -4.01%
Mony Group (MONY) 196.70p -2.14%
Kainos Group (KNOS) 749.00p -2.09%
Rathbones Group (RAT) 1,668.00p -1.77%
Deliveroo Class (ROO) 140.20p -1.69%
Future (FUTR) 944.50p -1.61%
Jupiter Fund Management (JUP) 80.60p -1.59%
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