FTSE 100 rises on Next boost; recession worries loom

accreditation
0:00
play article
Subscribers can listen to this article
Getty Images
Getty Images
Andrew Brookes


The exporter-heavy FTSE 100 rose on Thursday as retailer Next rallied following its annual profit forecast, offsetting the impact from data showing contraction in UK business activity and indicating the economy could already be in recession.

The blue-chip FTSE 100 climbed 0.4%, extending gains to a third straight session and outperforming most regional peers. The domestically focused FTSE 250 midcap index also gained 0.5%.

British clothing retailer Next surged 7.4% after raising its pretax profit forecast for the current year, pushing the broader retailers index to a more than four-month high.

Oil majors BP and Shell rose more than 1% each as crude oil prices rebounded amid dollar weakness.

Britain's services sector ended 2022 in a lacklustre fashion, with new orders falling and hiring frozen during December, a survey showed, highlighting the likelihood that Britain is already in recession.

"Our expectation is that in comparison to previous downturns, it is not going to be as severe, as the pandemic and impacted recession of 2020-2021," said Jeremy Batstone-Carr, European strategist at Raymond James.

"It will be fairly shallow, with a marked revival beginning to emerge towards the back end of this year."

Adding to the gloom were the minutes from the Federal Reserve's December meeting that dimmed hopes for a sooner-than-expected reduction in interest rates.

Among individual stocks, Prudential shed 1.7% after Exane BNP Paribas downgraded the insurer to "underperform".

Asia-exposed investment bank HSBC rose 2.0% to a four-month high after China said it would reopen the border with Hong Kong on 8 January.


We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
17.23
-0.2%
Rand - Pound
21.31
+0.1%
Rand - Euro
18.73
-0.1%
Rand - Aus dollar
12.24
-0.1%
Rand - Yen
0.13
-0.5%
Platinum
1,004.27
-3.3%
Palladium
1,670.39
+0.2%
Gold
1,923.72
-0.3%
Silver
23.70
-0.9%
Brent Crude
87.47
+1.5%
Top 40
74,857
+0.5%
All Share
80,879
+0.5%
Resource 10
78,510
+0.4%
Industrial 25
103,697
+0.5%
Financial 15
16,271
+0.5%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders