FTSE Steadies as Investors Await ECB Decision, Airlines Under Pressure
The FTSE 100 index slightly increased as the mid-caps retreated in anticipation of the European Central Bank's interest rate decision. Wizz Air's significant profit drop impacted the airline sector, while Dr Martens led gains with strategic changes. Economic indicators from the U.S. and NATO defence spending are also in focus.
On Thursday, Britain's FTSE 100 index edged up modestly, contrasting with mid-cap stocks that saw declines as market players held their breath for an anticipated interest rate cut from the European Central Bank. At 0948 GMT, the FTSE 100 was up 0.2%, while FTSE 250 dropped by the same margin.
The dramatic 25.9% fall of Wizz Air shares, following a stark 62% decline in annual operating profit tied to aircraft constraints, was a major factor dragging down the FTSE 250. This impact extended to other travel stocks like easyJet and ICAG, which saw more modest declines over 1%. In contrast, Dr Martens surged by 23.2% after revealing a successful plan to curb discounting and project profit growth.
Aside from the ECB's rate decision, market participants are eager for insights from President Christine Lagarde on future policies. Simultaneously, U.S. economic data, particularly Friday's non-farm payroll figures, will be closely analyzed amid growing concerns over tariffs. Meanwhile, a report highlighted a sharp drop in staff among British construction firms, and Mitie Group paused its share buyback program.
(With inputs from agencies.)
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