UK stocks gain after Nvidia forecast ignites global rally
UK stocks rose as Nvidia's positive forecast sparked a global rally. The FTSE 100 climbed 0.5% and the FTSE 250 increased by 0.2%. Aerospace and defence stocks rebounded, with Rolls-Royce and BAE Systems gaining over 2.5%. Halma and Games Workshop surged on strong forecasts. JD Sports fell 3% on lower profit expectations. Market focus shifts to the U.S. jobs report and UK retail sales figures.
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FTSE 100 rises 0.5%, FTSE 250 up 0.2%
Games Workshop, Halma stocks surge on strong forecast
JD Sports falls on seeing annual profit at lower end of forecast
Nov 20 (Reuters) - London’s main stock indexes rose on Thursday and looked set to break their losing streak, as defence and financial shares led a recovery amid a global rally sparked by AI bellwether Nvidia’s upbeat forecast.
The blue-chip FTSE 100 (.FTSE) climbed 0.5% as of 11:45 GMT, on track to halt a five-day decline. The domestically focused FTSE 250 (.FTMC) rose 0.2% and was set to snap a six-day losing run.
The aerospace and defence sector (.FTNMX502010) rebounded 2.7% after a setback in the previous session. Industry heavyweights Rolls-Royce (RR.L) and BAE Systems (BAES.L) both gained over 2.5%.
A relief rally swept through global equity markets after chip bellwether Nvidia’s upbeat forecast quelled some concerns over elevated valuations following analysts’ caution recently that the AI boom may be outpacing fundamentals.
The European technology index (.SX8P) climbed 0.8%, while technology stocks (.FTUB1010) in London also added 0.4%.
Moreover, UK’s investment banking stocks (.FTNMX403010) and life insurers (.FTNMX303010) gained 1% and 0.8%, respectively.
Pharmaceutical giant AstraZeneca (AZN.L) advanced about 1% after its drug to control growth of non-cancerous tumours was approved in the U.S., pushing the pharma sector (.FTNMX201030) up 0.5%.
Halma (HLMA.L) jumped 12.4% to an all-time high after the health and safety technology provider lifted annual revenue forecast on strong U.S. data centre demand.
Miniature war-games maker Games Workshop (GAW.L) soared 11.2%, hitting a record high on strong half-year forecast.
Market attention now shifts to the delayed U.S. jobs report, which will provide fresh insights into the health of the U.S. economy following the resolution of the recent government shutdown.
Additionally, Friday’s UK retail sales figures will also be on investors’ radar to gauge the nation’s economic health, after this week’s data showed inflation easing for the first time in five months.
Among other movers, Johnson Matthey (JMAT.L) shares fell 5% after the chemicals company said that finance chief Richard Pike will take on a new role as chief operating officer.
Sportswear retailer JD Sports (JD.L) fell 3% after forecasting annual profit at the lower end of market expectations.
