Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
Investing.com -- British stocks traded mostly flat on Wednesday afternoon after opening slightly lower as investors assessed mixed earnings and a sharper-than-expected rise in April inflation, which jumped to 3.5% year-over-year.
As of 1242 GMT, the blue-chip index FTSE 100 rose 0.06%, while British pound gained 0.1% against the dollar to 1.34, touching the level again this week.
Meanwhile, European equity indices also edged lower at open after the apparent failure of Ukraine peace talks. DAX index in Germany fell about 0.1%, the CAC 40 in France 0.5%.
U.K. inflation jumps
The surge in U.K. inflation to 3.5% year-over-year in April, up from 2.6% in March and well above the Bank of England’s 2.0% target, is likely to prompt the central bank to delay further interest rate cuts.
On a monthly basis, inflation rose sharply by 1.2%, compared to 0.3% in March.
Economists had expected the consumer price index to increase 3.3% annually and 1.1% monthly.
U.K. average house prices accelerates in March
U.K. home prices saw their fastest annual rise since December 2022, new data from the Office for National Statistics (ONS) showed on Wednesday.
In the year to March, average property prices climbed by 6.4%, accelerating from a 5.5% gain recorded in February.
JD Sports profit dips 12% as costs rise; shares slump
JD Sports Fashion PLC (LON:JD) reported a nearly 12% drop in statutory pre-tax profit for the 52 weeks ending February 1, impacted by higher acquisition costs and finance charges.
Pre-tax profit decreased to £715 million from £811 million in the prior 53-week period, with a £53 million rise in adjusting items contributing to the decline.
Meanwhile, group revenue climbed 10.2% to £11.46 billion from £10.40 billion, or 12% higher when adjusted for constant currency.
JD Sports shares fell over 10% at open.
M&S warns of $400 mln cyberattack impact
Shares of Marks and Spencer Group PLC (LON:MKS) rose over 4%, rebounding after an earlier drop of more than 3%, following the retailer’s announcement of an expected $400 million hit to operating profit from a cyberattack last month.
The company warned that online disruptions are likely to continue through July. It also reported a 24% decline in pretax profit to £511.8 million, mainly due to a non-cash impairment related to its investment in Ocado (LON:OCDO) Retail.
However, revenue increased 6% to £13.82 billion, driven by growth across its food, fashion, home, and beauty divisions. Adjusted operating profit rose 17% to £984.5 million.
Currys raises full-year profit forecast
Currys PLC (LON:CURY) updated its full-year profit forecast, now anticipating adjusted pretax earnings around £162 million for the fiscal year ending May 3, up from its earlier estimate of £160 million. Analysts had predicted a consensus of £159 million.
The firm posted a 2% increase in group like-for-like sales for the year, matching closely with the expected 2.1%, with stronger-than-anticipated results primarily coming from the Nordic markets.
Coats Group shares fall despite revenue growth
Coats Group PLC (LON:COA) started 2025 strongly, with group revenues rising 4% at constant exchange rates over the first four months.
This growth was driven by solid performances in Apparel and Footwear, both up 5%.
However, shares fell 2.7% in afternoon trading.
SSE reports steady profit but cuts investment plans for 2025
SSE PLC (LON:SSE) released its full-year 2024/25 results, revealing steady operational results while scaling back its long-term investment strategy in response to evolving economic conditions.
For the fiscal year ending 31 March 2025, adjusted operating profit was £2.42 billion, remaining largely unchanged from the previous year.
The company also reduced its five-year investment forecast by £3 billion to £17.5 billion, attributing the revision to shifts in the broader economic landscape impacting its energy operations.
Ithaca Energy Q1 output strong
Ithaca Energy PLC (LON:ITH) posted solid results for the first quarter of 2025, supported by efficient operations and ongoing investment in the UK Continental Shelf.
Production averaged 127,400 barrels of oil equivalent per day during the period.
Close Brothers (F:CBRO) Q3 loan book declines
Close Brothers Group plc (LON:CBRO) saw a reduction in its loan book during the third quarter and provided no new information on motor finance provisions on Wednesday.
The bank’s loan portfolio decreased by 0.9% compared to the previous quarter and was down 3.5% year to date.