FTSE 100 Live 05 March: Markets rebound, Games Workshop strong run continues

European shares have rebounded while the pound is at a four-month high versus a faltering dollar amid another session of market-moving political developments.

Speculation of a US compromise on Canada and Mexico tariffs boosted the Wall Street outlook and helped the FTSE 100 index advance 0.7% or 65.64 points to 8824.64.

The gains were even stronger in Germany, where changes to borrowing rules in order to bolster spending on defence and infrastructure ensured the Dax followed last night’s big fall with a surge of 3.4%.

China’s targeting of another year of 5% GDP growth also helped risk appetite in Asia and beyond as the Hang Seng index lifted 2.8% and the Shanghai Composite added 0.5%.

The performance by the FTSE 100 index was held back by the impact of a stronger pound on some of the benchmark’s leading overseas earning stocks.

The pound topped $1.28 for the first time since mid-November as the poor run for the dollar continued on the back of tariff-related US economic uncertainty.

US stocks have also suffered after the S&P 500 index last night fell 1.2% to erase all the gains since Donald Trump’s election in November.

However, comments by US Commerce Secretary Luttnick that suggested that Canada tariffs may be rolled back today boosted US futures and lifted a number of London-listed stocks with direct American exposure.

They included investment bank and credit card business Barclays, which reversed a poor run by rallying 5% or 15.5p to 307.9p. The shares were 314p on Monday afternoon.

Sunbelt plant hire firm Ashtead also improved 191p to 4595p, while the tech investor Scottish Mortgage gained 32.5p to 1002.5p and British Airways owner IAG resumed its strong run with a rise of 11.3p to 330.5p.

Games Workshop topped the blue chip pile after more strong trading by the Warhammer firm in January and February led to another profit upgrade.

In January, Games Workshop’s first set of results as a FTSE 100 company beat City expectations with half-year profit up by a third to £126.8 million.

The shares today rose 7% or 1020p to a fresh record of 14,780p, while broker Peel Hunt said the trading momentum justified a new price target of 15,000p.

Defensive stocks were out of favour at the bottom of the FTSE 100 index as National Grid fell 29.8p to 942.2p, GSK lost 25.5p to 1483.5p and British American Tobacco weakened 72p to 3084p.

The FTSE 250 index outperformed the top flight by following Tuesday’s 2.1% reverse with an advance of 1.5% or 301.96 points to 20,252.46.

Breedon shares jumped 13% or 57.5p to 485p after the construction materials group announced a further step into the US market with the £187 million acquisition of Missouri-based road surfacing business Lionmark.

US expansion helped Breedon offset “significant market headwinds” in Britain and poor weather conditions as underlying profits rose 4% to £150.8 million.

Other stronger mid-caps included Aston Martin Lagonda following a rise of 7.85p to 83.1p and recruitment firm Hays after a gain of 4.4p to 72.4p.

Support from Inchcape directors after they spent a combined £500,000 on shares helped the car distribution firm rise 41p to 726.5p.

Balfour Beatty shares fell 5% or 21.8p to 433.8p after the infrastructure group said Leo Quinn is to step down as chief executive later this year after a decade in charge. Philip Hoare, chief operating officer of AtkinsRéalis, is to succeed him.

Breedon shares have jumped 13% in the FTSE 250 index after the construction materials group announced a further step into the US market.

It is buying Lionmark, a Missouri headquartered materials and surfacing business with a focus on road infrastructure end markets.

The acquisition, which has an enterprise value of $238m (£187 million), is expected to double the company’s US revenues.

Breedon also posted annual results, which showed revenues 6% higher at £1.6 billion after the company entered the US market for the first time.

Pre-tax profits rose 4% on an underlying basis to £150.8 million as the expansion offset “significant market headwinds” in Britain and poor weather conditions.

The dividend is 7% higher at 14.5p. Shares rose 56.5p to 484p.

Outsourcing group Capita today swung back to an annual profit as it said it is “moving at pace” with a ramped-up cost-cutting plan.

The group overcame an 8% drop in revenues as it recorded a £116.6 million pre-tax profit in 2024, against losses of £106.6 million the previous year.

Capita is a major contractor for the Government and local authorities, while it manages the licence fee for the BBC and runs recruitment for the British Army.

It has been accelerating the use of AI and generative AI to speed up certain tasks.

The shares rose 7.5% or 1p to 13.85p following the results.

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Paddy Power and Betfair owner Flutter Entertainment last night hailed a strong start to 2025, with record levels of online betting during the NFL Super Bowl.

The FanDuel business said some three million active customers placed nearly 18 million bets during the showpiece event, with $470 million (£367 million) wagered during the day.

The gambling giant also forecast significant growth this year, helping its London-listed shares to rise 2% or 340p to 20,890p.

In the UK and Ireland, Flutter said it has been boosted by sports results favouring the bookies, particularly in the Premier League.

Flutter moved its primary main market listing from London to New York last year, although it kept a secondary listing on the London Stock Exchange.

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The FTSE 100 index is 0.5% or 46.38 points higher at 8805.38, with Games Workshop the top performer after its upgrade to annual profit guidance.

The Warhammer firm rallied 8% or 1078p to a fresh record high of 14,838p.

It was joined on the risers board by Barclays, which put back recent losses with a jump of 7% or 19.45p to 311.85p, and by US-focused Ashtead after a gain of 3% or 138p to 4542p.

British Airways owner IAG added 4% or 13.6p to 332.8p and Rolls-Royce surged above the 800p threshold for the first time with an advance of 28.8p to 815.2p.

The FTSE 250 index followed yesterday’s 2.1% reverse by adding 1.6% or 324.21 points to 20,274.71.

Strong performers included the construction materials group Breedon, which surged 11% or 45p to 472.5p after unveiling the acquisition of a Missouri-based materials and surfacing business alongside annual results.

US stock futures are pointing to an improved session amid hopes of a compromise deal in relation to Mexico and Canada trade tariffs.

IG Index said: “US Commerce Secretary Luttnick suggested that Canada tariffs may be rolled back today, just one day after implementation, but the tone of president Trump's speech suggests tariffs will remain in place.”

The S&P 500 index last night lost another 1.2% to leave the benchmark back where it was at the time of Trump’s election in November.

Trading has also been volatile in Germany, where the Dax yesterday fell 3.5% in its worst session since 2022. This followed a rise of 2.6% the previous day.

IG predicts a rebound of about 476 points this morning: “Dax futures look to be the big winner overnight, following news that the various parties had agreed on a huge spending package for defence and infrastructure.”

Meanwhile, the Hang Seng index rose 2.8% and the Shanghai Composite by 0.5% after China kept its growth target for this year at 5%.

Banknote printer De La Rue today bolstered the outlook for its currency division after reporting a “substantial upward increase in activity”.

With an order book of £347 million at the end of January, the company said currency growth in the 2025/26 financial year should be significantly higher than its previous guidance.

De La Rue recently agreed the sale of the Authentication division to Crane NXT for £300 million, a move set to complete in the first half of this year.

The disposal will allow De La Rue to repay existing banking facilities and reduce the remaining deficit on its legacy defined benefit pension scheme.

Chief executive Clive Vacher said: "The Currency division is now benefitting from the success we have had in transforming the business over the last five years with a substantial upward increase in activity predicted by the growing order book.

“With sales for the 2026 financial year now largely contracted and the proposed sale of Authentication proceeding as planned, we will be able to focus on delivering finished banknotes, polymer and security features to our Currency customers efficiently and effectively.

"We expect FY26, our next financial year, to bring a significant escalation in the performance of our Currency business."

FTSE 100-listed Games Workshop today lifted profit guidance after reporting that January and February trading has been ahead of expectations.

In a brief statement, the Warhammer hobby firm said its performance had been strong across the core business as well as licensing.

The group has a deal with Amazon.com for the adaption of the Warhammer 40,000 universe into films and TV series.

In January, Games Workshop’s first set of results as a FTSE 100 company beat City expectations with half-year profit up by a third to £126.8 million.

The shares have risen by 48% in the past year.

The FTSE 100 index is set to improve after closing yesterday’s session 1.3% lower due to worries over the impact of US tariffs.

Futures trading points to a rise of about 0.7% or 65 points, having suffered its worst session since October with a fall of 1.3% or 112.31 points to 8759.

The mood has been helped by stronger trading in Asia, led by the Hang Seng index after a rise of more than 2.5%.

The poor run for US stocks continued last night as the Dow Jones Industrial Average fell 1.6%, S&P 500 index retreated 1.2% and the Nasdaq Composite fell 0.4%.

The price of Brent Crude oil stands at $70.89 a barrel, while gold is at $2915 an ounce, the pound at its highest level since December at $1.2794 and Bitcoin at $87,460.