FTSE 100 ends in the green despite dip in airlines

• FTSE 100 up 13 points
• US markets trend higher 
• Proctor & Gamble hikes forecast for commodity and freight costs

5:05pm: The Footsie edges out small gain 

The UK-blue chip index added 13 points (0.19%) by day’s end to sit at 7,218. The gain was facilitated by positivity in the US market which countered headwinds from airline sector. 

News that Heathrow increased fees by 53% drove aviation stocks lower, as the airport now has the distinction of being the most expensive in the world. 

“Airlines are on the back foot once again today, with sharp losses for IAG, Tui, and easyJet dragging down the wider FTSE index,” Joshua Mahony, Senior Market Analyst at IG wrote in an afternoon note. “Rising UK Covid cases and the recent emergence of the Delta plus strain do provide a little cause for concern, although there remains hope that the successful vaccination drive should help protect the travel sector from any further disruptions. from any further disruptions.” 

The analyst went on to say that the Heathrow fee hike comes at an inopportune time, as airlines had hoped to raise prices to offset lockdown losses. 

Elsewhere, the Dow Jones Industrial Average continues to trend higher up 165 points (0.47%) to 35,424 at noon. The S&P 500 was also in the green at midday, adding 28 points (0.63%) holding at 4,514. The tech-weighed NASDAQ climbed 97 points (0.64%) sitting at 15,117, better than expected earnings have aided in growth across the US market. 

4:15pm: The FTSE 100 spikes to highest levels of the day in a late surge from London’s blue-chip stocks

A mix of stocks are leading the way, with () topping the Footsie leaderboard, up 2.75%, followed by Hikma Pharma (LSE:HIK), Fresnillo () and Polymetal International ().

“US markets are helping to drive European indices higher, as fears over rising inflation and the impending period of monetary tightening are put on the back burner for now,” said Joshua Mahony at IG. 

He said UK banks also remain a key focus as we close in on a November rate-rise, with markets now pricing in an 82% chance of a 25-basis point hike.

“Notably, the past week has seen tech outperform despite rising Treasury yields, highlighting easing concerns that monetary tightening will drive a swift move from growth to value.”

The Footsie is up 14 points at 7220.

3.35pm: Proctor & Gamble warning weighs on UK peers 

Traders in London are still struggling to find direction but US benchmarks have started on the front foot as Wall Street has cheered further strong third-quarter corporate earnings.

The Dow Jones Industrial Average added over 112 points or 0.3% at 35,371 while the broader-based S&P 500 advanced 0.5% and the Nasdaq index was up 0.24% in early deals in New York.

So far in the current earnings season, 82% of S&P 500 companies that have so far reported earnings have beaten expectations.

Today it was the turn of pharmaceuticals and consumer goods giant (), which beat third-quarter earnings expectations by 25 cents per share, though revenue fell slightly below.

Proctor & Gamble was a faller, even though the consumer products giant’s first-quarter beat revenue and earnings estimates.

However, it hiked its forecast for commodity and freight costs for coming quarters, seeing further increases in inflation.

Later, an update from () will be keenly watched, with the video streaming giant has given guidance for 3.5mln of net subscriber additions and earnings per share of US$2.55 a share, while the Street is forecasting 3.8mln net adds, US$7.48bn of revenue and US$2.57 of EPS.

Its new hit show, Squid Game, which has attracted a record 111mln viewers around the world since going live, launched on 17 September so perhaps came too late to move the dial much.

Netflix shares are modestly in the red, as are those of…