In Thursday's trading session, the FTSE 100 saw modest gains, buoyed by a positive sentiment in the corporate sector, which eclipsed worries about geopolitics and inflation.
The index fluctuated between 8,120.20 and 8,065.22 throughout the day, compared to the previous closing position of 8,085.07. It currently stands at 8,119.10, showing a 0.42% increase from the previous day.
Within the FTSE 100's portfolio of stocks, 70 have been trading positively overnight. Halma led the charge with a notable increase exceeding 7% following its strong financial performance. Gains over 2% were also observed in Endeavour Mining, Centrica, and Beazley. Experian and Diploma reported gains over 1.5%.
Conversely, JD Sports Fashion saw a significant decline, dropping more than 14% amidst a profit warning. Vodafone and Frasers experienced losses exceeding 2%, while Melrose Industries, National Grid, British Land Co, and DCC all faced declines over 1%.
In currency markets, the GBP/USD pair dipped 0.09% overnight, settling at 1.2639, with the sterling fluctuating between $1.2660 and $1.2623 during the day's trade. The EUR/GBP pair decreased by 0.10%, reaching 0.8326, whereas the GBP/JPY pair fell 0.72% to 195.25.
U.K. bond yields strengthened more than their counterparts, as markets tempered expectations for rate cuts from the Bank of England amidst higher-than-expected inflation rates. Yields on ten-year bonds increased by 0.72% to 4.5020%, with the day's range between 4.5310% and 4.4860%. This is up from 4.4700% from the previous day.
Economic data released earlier revealed that the Confederation of British Industry's Industrial Trends Survey indicated a sharper decline in manufacturing output volumes for the quarter ending in November compared to the preceding three months leading to October. The monthly net balance of new orders registered at -19 in November, an improvement from -27 in October, yet below market expectations of -25. However, optimism surrounding a prospective rise in output volumes in the coming quarter through February bolstered market sentiment.
