Lunchtime market roundup: FTSE 100 advances ahead of US nonfarms

London’s blue chip index continued to easily outperform its peers in Paris and Frankfurt on Wednesday midday ahead of US nonfarm payrolls data as Brent rose above the $70 per barrel mark while sterling rose against the dollar.

The FTSE 100 index was up 76.10 points, 0.7%, at 10,429.98. The FTSE 250 was down 142.40 points, 0.6%, at 23,327.88, and the AIM all-share was up 1.89 points, 0.2%, at 817.65.

The Cboe UK 100 was up 0.7% at 1,041.50, the Cboe UK 250 was down 0.6% at 20,670.54, and the Cboe small companies was up 0.2% at 18,787.17.

The pound was quoted at $1.3693 at midday on Wednesday in London, higher compared to $1.3661 at the equities close on Tuesday. The euro stood at $1.1910, higher against $1.1901. Against the yen, the dollar was trading at JP¥153.47, down from JP¥154.23.

Among blue chips, Barratt Redrow fell 5.5% after trimming its dividend and reporting weaker half-year results.

The session also saw further pressure on so-called artificial intelligence-disrupted names. St James’s Place sat at the bottom of the FTSE 100, down 12%, while Relx fell 4.8% and Schroders dropped 3.0%.

Water utility Severn Trent rose 1.4% after expressing confidence in financial 2026, which it expects to be its ‘highest-ever year’ of capital investment.

The Coventry-based group said trading is in line with expectations and pointed to ‘strong momentum’ at the start of the new regulatory cycle, which runs to March 31 and marks the first of the typical five-year planning period for UK water companies.

Capital expenditure is expected at the top end of its £1.7 billion to £1.9 billion guidance range. The company also aims to meet performance-related targets, including securing at least £40 million in outcome delivery incentives and price control deliverables.

Chief Executive James Jesic, promoted last month, welcomed the government’s white paper on water regulation as ‘a step in the right direction’ and said the company looks forward to further clarity on the transition plan later this year.

The update follows a decision in May 2025 by regulator Ofwat that will see Severn Trent customers face higher bills from January 2026. Average annual bills are set to rise 47% over five years to £583 in 2029-30 from £398 in 2024-25, below the 54% increase to £612 that the company had proposed.

Smurfit WestRock edged rose 2.1% after reporting a sharp rise in annual earnings, even as fourth-quarter performance in North America was impacted by additional downtime.

For 2025, net sales increased to $31.18 billion from $21.11 billion in 2024, while net profit more than doubled to $699 million from $319 million.

Adjusted Ebitda climbed to $4.94 billion from $3.39 billion, although adjusted earnings per share fell to $2.05 from $2.34.

Looking ahead, the packaging group expects 2026 adjusted earnings before interest, tax, depreciation and amortisation in a range of $5.0 billion to $5.3 billion, with first-quarter adjusted Ebitda forecast between $1.1 billion and $1.2 billion.

Further, the firm expects adjusted Ebitda of around $7 billion by 2030 and an adjusted Ebitda compound annual growth rate of around 7% over 2026 to 2030.

CEO Tony Smurfit said: ‘Our medium-term plan clearly sets out how we will continue to build Smurfit Westrock, as one of the world’s great companies, delivering secure, superior, and long-term value for all of our stakeholders. The Investor Update will cover our five-year financial targets through 2030 and the capital allocation priorities that we believe will drive superior performance and enhanced shareholder returns, underpinned by our performance-led, owner-operator model.’

Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.1%, the S&P 500 index up 0.1%, and the Nasdaq Composite flat.

The yield on the US 10-year Treasury was quoted at 4.13%, narrowing from 4.14%. The yield on the US 30-year Treasury was quoted at 4.78%, unchanged from 4.78% Tuesday.

Attention now turns to US nonfarm payrolls data for January, due at 1330 GMT. Nonfarm payroll employment is anticipated to have increased by 70,000, compared to 50,000 in December.

The US unemployment rate is expected to hold at 4.4%, unchanged from December.

The ADP report on Tuesday, which precedes the official Bureau of Labor Statistics release, showed US private employers added an average of 6,500 jobs a week in the four weeks ending January 24, up from 5,000 a week in the four weeks ending January 17.

Daniel Takieddine at Sky Links Capital Group said: ‘While the ADP employment gauge improved modestly from its prior reading, the focus remains on the nonfarm payrolls release. Markets expect job creation to pick up to around 70,000 from December’s 50,000, while the unemployment rate is projected to hold at 4.4%. A downside surprise would amplify concerns that labor market momentum is fading alongside softer consumption, potentially triggering renewed pressure on US assets.’

In European equities on Wednesday, the DAX 40 in Frankfurt was down 0.1%, while the CAC 40 in Paris was also down 0.1%, weighed by a 20% slump in Dassault Systemes after it reported lower fourth-quarter revenue.

The Paris-based software firm said revenue for 2025 came in at the lower end of its target range, though it is focused on building ‘new levers of growth and profitability’ in the year ahead.

Fourth-quarter pretax profit rose 3.7% to €525.1 million from €506.3 million, but total revenue fell 4.2% to €1.68 billion from €1.75 billion. Software revenue dropped 5.0% to €1.52 billion.

Back in London, Picton Property rose 5.3% after LondonMetric Property, up 0.4%, expressed interest in its formal sale process.

Picton Property Income, a Guernsey-registered real estate investment trust with a market capitalisation of around £448.6 million, said it looks forward to progressing discussions with interested parties but stressed LondonMetric has not made an offer and there is no certainty one will be forthcoming.

Among smaller caps, IG Design Group surged 31% after upgrading guidance. The greetings and gift packaging firm expects adjusted operating margins beyond financial 2026 of 4% to 5%, consistent with prior guidance.

It now guides to financial year revenue of $280 million to $285 million, up from previous guidance of $270 million to $280 million and ahead of market consensus of $275 million, and said adjusted profit will exceed current expectations.

MJ Gleeson fell 9.4% after reporting half-year revenue of £173.1 million, up from £157.9 million a year earlier, but pretax profit declined to £1.7 million from £3.6 million as build-cost inflation outpaced net selling price increases.

The housebuilder kept its interim dividend flat at 4.0p per share and said full-year 2026 market expectations are ‘achievable’, subject to a strong spring selling season.

In commodities, Brent oil traded above the $70 mark at $70.10 a barrel at midday in London, up from $68.82 late Tuesday. Gold was quoted at $5,111.40 an ounce, up from $5,011.70.

Still to come on Wednesday’s economic calendar, in addition to US nonfarm payrolls, is the US monthly budget statement.

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