FTSE 100 watch: Footsie rallies despite string of profit warnings

FTSE 100 watch: Footsie rallies despite string of profit warnings

The FTSE 100 has surged in London this Thursday, finding support in hopes over the US-China trade relations which have boosted investor sentiment around the world. The blue-chip index has shrugged off falls in Pearson (LON:PSON), Imperial Brands (LON:IMB) and International Consolidated Airlines (LON:IAG) which all cautioned on profits.

FTSE 100 rallies

As of 13:34 BST, the Footsie had surged 82.06 points to stand 1.13 percent higher at 7,372.05. Investors have cheered news that China’s commerce ministry is in close communication with Washington over next month’s trade talks. US President Donald Trump meanwhile signalled that a deal could be reached soon.

“Following yesterday’s positive session in the US, there seems to be a bit more optimism, but it’s pretty fragile,” Markets.com analyst Neil Wilson said, as quoted by Reuters.

Blue-chip fallers

In individual FTSE 100 movers, Pearson is trading deep in negative territory after the blue-chip publisher warned that its operating profit will come in at the bottom end of its guidance range, following  weaker-than-expected trading in the company’s  US Higher Education Courseware business during the key selling season. Pearson’s shares are 15.10 percent worse off at 730.80p.

Imperial Brands has also posted a hefty fall after cautioning on earnings amid the ongoing crackdown on vaping in the US. Shares in the tobacco maker are changing hands 10.01 percent lower at 1,858.80p.

British Airways and Iberia parent IAG has also warned on profits this Thursday, flagging an impact from this month’s strike at the British flag carrier cautioning that “any further industrial action will additionally impact IAG’s full year 2019 operating profit”. Shares in the blue-chip group are 2.96 percent in the red at 465.90p.

The FTSE 100 index was 1.17 percent up at 7,375.11 points as of 13:53 BST on Thursday, 26 September 2019.

By Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.
Invezz uses cookies to provide you with a great user experience. By using Invezz, you accept our privacy policy.