FTSE 100 strengthens on commodity rally; Compass announces buyback

UK Market: The UK stock market moved higher on Wednesday, with the blue-chip FTSE 100 index gaining around 1%, driven by a strong earnings update from Compass Group and a surge in commodity stocks ahead of crucial US inflation data that will determine Federal Reserve’s monetary policy. Miners gained around 2% as metal prices rose on signs of lower domestic Covid-19 infections in China and tracking crude prices that recovered on supply concerns as the European Union moved further on gaining support for a ban on oil imports from Russia.

Compass Group Plc (LON: CPG): The shares of the multinational contract foodservice company were up by around 6%, with a day’s high of GBX 1,765.50. The company released its annual revenue forecast and announced a £500 million share buyback after a strong first-half.

Airtel Africa Plc (LON: AAF):  The shares of the multinational telecommunications and mobile money services company were down by around 5%, with a day’s low of GBX 128.20. the company reported a net profit of US$240 million in Q4, a 56% on-year jump. Its revenue surged by 20.6% for the year to US $4,714 million and 17.8% for Q4.

Homeserve Plc (LON: HSV): The shares of the multinational home emergency repairs and improvement business were up by around 15%, with a day’s high of GBX1,125. The company reported that Canadian investment firm Brookfield Asset Management is nearing a US$5 billion takeover.

US Markets: The US market is likely to get a quiet but positive start in trades today, as indicated by the futures indices. S&P 500 future was up by 9.81 points or 0.25% at 4,001.05, while the Dow Jones 30 futures was up by 0.26% or 84.96 points at 32,160.74. The technology-heavy index Nasdaq Composite future was up by 0.30% at 12,345.86 (At the time of writing – 8:50 AM ET).

US Market News:

The shares of the fast-food restaurant holding company Wendy’s (WEN) slid by 3.4% in the premarket session after the company reported an adjusted profit of 17 cents per share, 1 cent below estimates. The fast-food restaurant chain is seeing a negative impact from higher costs for suppliers and labour.

The share of the multinational doughnut company Krispy Kreme (DNUT) jumped by 1.6% in the premarket trading session after beating top and bottom-line estimates for its latest quarter. The company’s sales per hub metric jumped 49.2% for international markets and 19.4% for the US and Canada.

European Indices Performance (at the time of writing):

FTSE 100 Index One Year Performance (as on 11 May 2022)

(Source: Refinitiv)

Top 3 Volume Stocks in FTSE 100*: Lloyds Banking Group plc (LLOY), BP Plc (BP.), Vodafone Group Plc (VOD).

Top 3 Sectors traded in green*: Energy (3.02%), Basic Material (2.38%) and Consumer Cyclicals (2.15%).

Top 3 Sectors traded in red*: Healthcare (-1.36%), Technology (-0.41%) and Utilities (-0.36%).

London Stock Exchange: Stocks Performance (at the time of writing) 

Crude Oil Future Prices*: Brent future crude oil (future) price and WTI crude oil (future) price were hovering at $106.49/barrel and $104.00/barrel, respectively.

Gold Price*: Gold price was quoted at US$ 1,851.95 per ounce, up by 0.59% against the prior day’s closing.

Currency Rates*: GBP to USD: 1.2356; EUR to USD: 1.0548.

Bond Yields*: US 10-Year Treasury yield: 2.930%; UK 10-Year Government Bond yield: 1.8395%.

*At the time of writing