FTSE 100 close: London joins Nvidia fuelled rally following strong PMI

London’ FTSE 100 closed in the green following strong PMI data, enabling London to join a global rally prompted by strong results from Nvidia’s yesterday evening.

Having recorded a sluggish morning, the capital’s blue-chip index closed 0.29 per cent higher to trade at 7,684.49. The FTSE 250, which is more aligned with the UK’s domestic market, rose around 0.76 per cent at 19,263.50.

Equities all over the world rallied following Nvidia’s results last night. The tech firm reported record sales of $22.1bn in its fourth quarter, ahead of analyst estimates, in a sign that the artificial intelligence (AI) boom is far from over.

The DAX in Berlin rose 1.5 per cent while the CAC in Paris rose 1.3 per cent. US markets also got off to a very strong start.

“Whilst records have been breaking all over the place after Nvidia’s barnstorming fourth quarter update, things have looked distinctly tepid on both the FTSE 100 and 250,” Danni Hewson, head of financial analysis at AJ Bell.

Markets in London only moved into the green after new figures showed that the UK was already powering away from the recession it fell into at the end of last year.

Private sector output rose to its highest level in nine months in February, surprising economists who had expected a slower expansion, according to the latest S&P’s purchasing managers’ index (PMI).

The biggest corporate new this morning was Lloyds Banking Group, which reported an uptick in annual profits on the back of higher interest rates, despite setting aside £450m for the FCA’s motor finance probe.

Its shares rose 6.6 per cent following the news.

The biggest riser on the FTSE 100 was Beazley, up nearly nine per cent, after the insurer announced plans to return $300m to shareholders after a strong 2023.

Rolls-Royce Holdings shares were up over 11 per cent, after it reported another set of strong results.

Underlying profit more than doubled on last year, rising to £1.6bn, driven by its Civil Aerospace segment. This was well ahead of analyst expectations.

Meanwhile, advertising giant WPP‘s profit slumped by around 70 per cent from £1.2bn to £346m as big tech firms pulled out of advertising deals. Its shares lost 6.4 per cent.

WPP reiterated its plans to invest £250m in proprietary technology to enhance its AI and data position.

There were also some big updates on the FTSE 250. Invidior rose 22 per cent after confirming it will start consultations with shareholders on plans to shift its primary listing to the US in yet another blow to the London Stock Exchange.

Among fund managers, Jupiter rose by more than 10 per cent after the London manager exceeded expectations in its annual results. Profits surged to £105.2m, 15 per cent ahead of analyst forecasts.

Hargreaves Lansdown fell the most on the FTSE 250, despite reporting that assets under administration rose to £142.2bn. Investors were spooked by rising costs at the DIY investment firm, while investment into new technologies was also slashed.

Nikkei hits record high

Japan’s Nikkei beat its record reached in 1989, closing at 39,098.68, underpinned by strong earnings and tech optimism.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “The Nikkei has re-found its mojo but it’s been a long time coming. The Japanese stock market peaked in December 1989, and in the years since the Nikkei has been unable to break higher. But the recent red-hot rally in Japanese stocks has helped the index finally beat the previous record set 34 years ago.

“The Nikkei has been buoyed by another wave of excitement for the prospects for the tech sector, coming off the back of Japanese companies logging record quarterly profits. The weaker yen has helped exporters like Toyota, Honda and Sony, with strong demand for vehicles, machinery and computer chips from around the world.”