Global Market Trends
The global market is experiencing a significant shift as shares traded higher on Thursday, ahead of the European Central Bank’s decision. The FTSE 100 index rose by 0.5% to 9,270.78, while the FTSE 250 increased by 0.5% to 21,633.32. The AIM All-Share also saw a 0.3% increase to 764.63.
European Market Performance
In Paris, the CAC 40 was up by 0.9%, and in Frankfurt, the DAX 40 saw a 0.2% increase. Despite the recent political turmoil in France, most Paris blue-chip stocks traded in the green, with Societe Generale being the top performer with a 2.5% increase. LVMH was the worst performer, with a 0.2% decline.
Currency Fluctuations
The pound fell to $1.3508 from $1.3548, while the euro declined to $1.1685 from $1.1722. Against the yen, the US dollar surged to JP¥147.98 from JP¥147.35. The yield on the US 10-year Treasury narrowed to 4.05% from 4.06%, and the 30-year yield decreased to 4.69% from 4.71%.
Expected Economic Decisions
The European Central Bank’s interest rate decision is expected to be announced, with policymakers likely to keep rates unchanged. The US inflation figures and weekly jobless claims data will also be released, which may impact the market. According to Rostro analyst Joshua Mahony, the easing cycle may have run its course, and inflation remains largely at target.
US Market Expectations
The Dow Jones Industrial Average and S&P 500 are expected to open 0.2% higher, while the Nasdaq Composite is expected to open 0.3% higher. The US annual consumer price inflation rate is expected to have accelerated to 2.9% in August, up from 2.7% in July. UBS analyst Mark Haefele commented that a moderation in jobs growth and manageable inflation should keep the Fed on track to cut rates.
Company Performance
Klarna, a buy-now-pay-later service provider, saw its stock jump 15% on its debut on Wednesday. Oracle added 36% after its earnings report. Gold miner Fresnillo and oil major BP were among the top performers in London, despite the fall in bullion and Brent prices. Trainline shares increased by 8.3% after announcing a new share buyback program.
THG’s Financial Performance
THG, a Manchester-based retail firm, reported a pretax loss of £66.7 million in the first half of 2025, widened from £56.4 million the previous year. Revenue weakened by 7.6% to £783.4 million, while THG Beauty sales dropped 12%. However, THG maintained its guidance, expecting THG Beauty to deliver second-half revenue growth of 1.0% to 3.0% at constant currency.
Conclusion
The global market is experiencing a period of uncertainty, with the European Central Bank’s decision and US inflation figures expected to impact the market. Despite this, shares are trading higher, and companies such as Klarna, Oracle, and Trainline are seeing significant increases in their stock prices. As the market continues to evolve, it is essential to stay informed about the latest trends and expectations to make informed investment decisions.
