iNVEZZ.com, Wednesday, November 26: Britain’s blue-chip index has edged higher in today’s session, boosted by better-than-expected growth figures from the US, as well as continuing speculation about further stimulus from the European Central Bank (ECB).
Travel shares have underperformed, with Tui Travel (LON:TT) posting the most notable fall in the sector after mid-cap peer Thomas Cook (LON:TCG) warned of a tougher trading environment.
Footsie edges higher
As of 12:24 GMT, the UK benchmark index had added 11.20 points to stand 0.17 percent higher at 6,742.34.
Market sentiment has found support in yesterday’s third-quarter gross domestic product (GDP) data from the world’s largest economy, with the GDP figure revised up to an annualised 3.9 percent, from 3.5 percent.
“A rising (US) tide lifts all boats,” traders at Capital Spreads said in a morning note , as quoted by CNBC.
Hopes that the ECB would announce more stimulus at its upcoming policy meeting next week has also boosted investor sentiment.
Benno Galliker, a trader at Luzerner Kantonalbank AG, told Bloomberg that there was “still a lot of money around which could be invested back into equities”.
Blue-chip winners and losers
Shares in Tui Travel have been sold off today, with Reuters quoting traders as pointing to readacross from sector rival Thomas Cook which today cautioned that growth would slow down next year as a result of a more difficult trading environment. (Thomas Cook share price plummets following CEO resignation) Tui Travel’s share price has lost 1.99 percent to 418.00p, while shares in Thomas Cook are currently trading 20.68 percent lower at 109.38p.
Compass Group (LONCPG) has also lost ground in today’s session after revealing that a strong pound had hit its profits for the year ended September 30. (Compass share price: Catering firm lifts dividend after 'another good year') The Guardian reported that analysts were also concerned that chief executive Richard Cousins, who is a non-executive at troubled Tesco (LON:TSCO), might need to spend more time at the supermarket group. Compass’ share price has lost 1.30 percent to 1,060.00p so far in today’s session.
BT Group (LON:BT.A) has been among today’s standout blue-chip risers after EE’s German and French owners confirmed that they were in talks to sell Britain’s biggest mobile network operator to the FTSE 100 telecoms giant. BT’s share price has added 2.30 percent to 404.90p. Rival Sky (LON:SKY) has also gained ground and is currently trading 1.63 percent higher at 933.00p.