U.K. equities continue to climb for a seventh consecutive session, supported by positive movements in other European markets. However, gains are somewhat tempered by concerns over potential trade tariffs from the Trump Administration and their possible impact on economic growth.
Investors are closely analyzing earnings reports alongside the data revealing a larger-than-expected budget deficit.
The FTSE 100 index has risen by 28.29 points, or 0.33%, reaching 8,576.58.
Intermediate Capital has seen a 5.5% increase. The company reported assets under management (AUM) at $106.571 billion at constant currency for the third quarter ended December 31, 2024, marking a 27.5% increase from the previous year and a 5.1% rise from last quarter.
Aviva's shares are up 3.6%, and Halma's have risen by 2.5%. Other gainers include Diploma, Entain, Pershing Square Holdings, Smiths, Ashtead Group, Beazley, Rolls-Royce Holdings, and Persimmon, with increases ranging from 1.5% to 2%.
Firms such as Haleon, Lloyds Banking, Scottish Mortgage, DCC, Barratt, Redrow, IMI, Compass Group, and InterContinental Hotels are also performing well.
Conversely, EasyJet's stock has fallen by over 3%, despite the company reporting a narrower pre-tax loss for the first quarter. EasyJet reported a headline pre-tax loss of £61 million for the quarter ending December 31, 2024, compared to a loss of £126 million in the same period last year.
Headline EBITDA surged to £148 million from the previous year's £74 million, with revenue increasing to £2.037 billion from £1.800 billion in 2023. Passenger revenue climbed to £1.255 billion, up from the prior year's £1.133 billion.
Vodafone and Marks & Spencer have declined by 1.5% and 1.3%, respectively. Additional underperformers include United Utilities, Coca-Cola, Vistry Group, and NatWest Group.
According to the Office for National Statistics, the U.K.'s budget deficit more than doubled in December compared to the previous year, largely due to spending increases surpassing revenue gains.
Public sector net borrowing rose by £10.1 billion from the previous year to £17.8 billion in December, marking the highest borrowing for December in four years and exceeding the Office for Budget Responsibility's forecast of £14.6 billion.
Concurrently, borrowing for daily public sector operations rose by £7.3 billion to £10 billion, the highest December deficit in two years.
For the financial year up to December, borrowing stood at £129.9 billion, which is £8.9 billion more than during the same period last year, as reported by the data.
