FTSE 100 watch: French election continues to buoy Footsie

on Apr 25, 2017
Updated: Mar 11, 2020

The UK benchmark index has climbed into positive territory in today’s session, extending yesterday’s gains, with investors continuing to cheer the outcome of the first round of France’s presidential election. In individual movers, Whitbread (LON:WTB) has fallen to the bottom of the blue-chip leaderboard after updating investors on its full-year performance this morning.

As of 12:24 BST, the FTSE 100 index had added 11.82 points to stand 0.16 percent higher at 7,276.50, with risk-on sentiment continuing after the first round of France’s election over the weekend saw centrist Emmanuel Macron come on top.
“The market’s Macron love affair continued this morning, if albeit at a far slower pace,” Connor Campbell at Spreadex commented in a note, adding that the Footsie’s full recovery to the level before Theresa May’s snap election announcement last Tuesday was “likely dependent on how long trading is driven by the French election result”.

Laura Foll, Henderson UK equity income and growth manager, meanwhile told Reuters that “the UK has its own esoteric risks at the moment, with its own election and the bigger ongoing Brexit issue”.
Moving on to individual stocks, Whitbread has been today’s biggest blue-chip faller in percentage terms after the group’s chief executive flagged ‘tougher consumer environment’ going forward. The Costa Coffee and Premiere Inn owner, however, posted a rise in sales and hiked its payout to shareholders.
“[The valuation] feels fairly full to us, reflecting embedded value within Whitbread’s core two brands, but with waning UK consumer dynamics likely to cap near-term growth prospects,” Panmure Gordon analysts said, as quoted by Reuters. Whitbread’s shares are currently changing hands 7.96 percent in the red at 3,964.00p.
**The FTSE 100 was 0.15 percent up 7,275.84 points as of 12:31 BST on Tuesday, 25 April 2017.**