Europe open: Shares power ahead as UK's FTSE 100 hits record

23rd Apr 2024 07:56

(Sharecast News) - European shares opened higher on Tuesday, with Britain's FTSE 100 index hitting a record high.

The pan-European Stoxx 600 index was up 0.47% to 504.68 in early deals. The FTSE 100 reached 8068 points, up 0.55% to clear its previous high of 8,047 set in February 2023.

"The market's sprits are being lifted by an initial easing of tensions in the Middle East, as well as preparations for a very busy week for corporate news," said Hargreaves Lansdown analyst Sophie Lund-Yates.

"Not all the updates are expected to be overly positive, big tech kicks off with Tesla results this evening. The tech-darling's valuation has come under renewed pressure on news of price cuts, and its dramatic efforts to boost demand means there's an element of trepidation about the earnings release."

In economic news the beleaguered UK Conservative government of Rishi Sunak's hopes of throwing around tax cuts as a general election bribe took a hit when public sector borrowing overshot forecasts.

Public sector net borrowing, excluding state-controlled banks, came in at £12bn in March, the Office for National Statistics said. This was above expectations of around £10bn.

Borrowing in the financial year ending March 2024 was provisionally estimated at £120.7bn, down £7.6bn than a year ago, but £6.6bn more than forecast by the Office for Budget Responsibility (OBR).

Public sector net debt excluding public sector banks at the end of March 2024 was provisionally estimated at 98.3% of GDP; 2.6 percentage points more than at the end of March 2023, and remains at levels last seen in the early 1960s, the ONS said.

In equity news, retail shares were in focus. Primark owner Associated British Foods surged after lifting annual guidance, while JD Sports Fashion was also higher after announcing it was buying US chain Hibbett for $1.08bn.

Swiss drugmaker Novartis gained as the company raised its full-year guidance after reporting better-than-expected first-quarter results.

Renault fell despite the French vehicle maker reporting a 1.8% uptick in its first-quarter revenue, led by strong performance in its financing business.

Reporting by Frank Prenesti for Sharecast.com