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Investing.com -- British stocks gained on Thursday, led by strong performances from U.K. companies that reported better-than-expected earnings results and optimism over EU-U.S. trade talks, creating a new milestone for the blue-chip index.
The FTSE 100 index rose about 0.8% to 9,136.40 and the British pound fell 0.4% against the dollar to 1.3527.
DAX index in Germany gained 0.3%, the CAC 40 in France slipped 0.4%.
EU and U.S. reportedly near trade deal
The European Union and the United States are approaching a trade agreement that would set tariffs at 15% on European imports, according to a Financial Times report on Wednesday.
The potential deal would include exemptions for certain products, with both sides agreeing to waive tariffs on aircraft, spirits, and medical devices.The European Commission stated on Wednesday that its main priority is to reach a negotiated solution with the United States to prevent the implementation of 30% U.S. tariffs scheduled to take effect at the beginning of August.
This developing trade arrangement comes as both economic powers work to resolve ongoing trade tensions and establish more favorable terms for transatlantic commerce.
Britain, India reach trade agreement
During Indian Prime Minister Narendra Modi’s visit on Thursday, Britain and India finalized a free trade deal designed to lower tariffs on products such as textiles, whisky, and cars, while boosting market opportunities for companies.
"We’ve entered a new global era, and that is one that requires us to step up, not to stand aside... by building deeper partnerships and alliances," British Prime Minister Keir Starmer said.
Strong earnings lift companies’ share
Reckitt Benckiser Group PLC (LON:RKT) shares soared nearly 10% after the consumer goods company raised its full-year revenue outlook following second-quarter sales that exceeded analyst expectations.
The maker of Lysol and Dettol reported 1.9% like-for-like net revenue growth for the quarter, outpacing the 1.7% forecast by analysts.
The company’s performance was boosted by strong results in emerging markets, which helped offset weaker demand in North America and Europe.
Vodafone (NASDAQ:VOD) Group PLC (LON:VOD) shares climbed over 3% after reporting a 3.9% year-over-year rise in group revenue to €9.4 billion in its fiscal first quarter.
The telecommunications company’s performance was boosted by the consolidation of Three U.K. and growth across Africa. Group service revenue rose 5.3% to €7.9 billion, with organic growth in all regions except Germany.
In the U.K., total revenue increased 14.5% to €1.9 billion, while service revenue rose 15.2% to €1.6 billion following the May 31 completion of the Three UK merger.
ITV PLC (LON:ITV) shares also moved higher, rising more than 13% toward one-year highs after the broadcaster reported better-than-expected first-half performance.
The company’s results were driven by stronger advertising revenue and solid growth at its Studios division, with ITV stating it was on track to meet its full-year targets.
Lloyds Banking Group PLC (LON:LLOY) shares gained ground after the bank reported second-quarter profit ahead of expectations.
The banking group posted underlying pre-tax profit of £2.03 billion, 16% above consensus, supported by a one-off impairment release and reduced remediation costs.
BT Group PLC (LON:BT) shares surged 10.5% after the telecom company reported first-quarter operating profit in line with expectations and named Virgin Media O2’s CFO Patricia Cobian as its next finance chief.
Adjusted EBITDA came in at £2.05 billion for the quarter, matching the £2.04 billion average forecast from analysts.
Centrica (OTC:CPYYY) PLC (LON:CNA) shares rose after the company reported better-than-expected first-half EBIT and raised its interim dividend by 22% to 1.83p per share for the six-month period ended June 30, while keeping full-year guidance unchanged.
Relx PLC (LON:REL), the global provider of information-based analytics and decision tools, reported strong financial results for the first half of 2025, with underlying revenue growth of 7% to £4,741 million.
Company shares rose over 1%.
The company’s adjusted operating profit increased by 9% on an underlying basis to £1,652 million, while adjusted earnings per share grew 10% at constant currency to 63.5p.
Howden Joinery Group Plc (LON:HWDN) shares surged 8.9% after the kitchen supplier reported stronger-than-expected first-half results.
The U.K.-based company posted a 3.2% increase in sales to £997.6 million for the 24 weeks ended June 14, with adjusted sales rising 4.3% when accounting for two fewer trading days compared to the previous year.
In contrast, Wizz Air Holdings PLC (LON:WIZZ) shares declined after the Hungarian low-cost carrier reported weaker-than-expected financial results for the first quarter and chose not to issue full-year guidance, citing ongoing uncertainty.
For the three months ended June 2025, Wizz Air generated revenue of €1.43 billion, just shy of the €1.44 billion consensus estimate.
The airline also signaled a softer revenue outlook for the current quarter.
Discoverie Group PLC (LON:DSCV), a designer and manufacturer of customised electronics, reported first quarter sales growth of 3% at constant exchange rates compared to the same period last year, with performance in line with management’s expectations.
The group maintained its full-year adjusted earnings guidance for the fiscal year ending March 31, 2026, despite mixed performance across its business units.
Shares of Discoverie fell 1.8% after the results.