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Despite fresh problems for the advertising group, the FTSE 100 recovered from heavy early losses to extend its winning streak to nine. wpp,
The FTSE 100 index closed just 3.92 points higher at 9,760.06, another record close.
The FTSE 250 fell 171.99 points, 0.8%, to 22,276.28, and Objective The All-Share closed down 3.09 points, 0.4%, at 769.80.
WPP fell 17% as it warned year-on-year performance was “below expectations” as it cut the company’s outlook.
The London-based advertising agency firm said revenue fell 8.4% to £3.26 billion in the third quarter, and were down 3.5% on a like-for-like basis.
Revenue less pass-through costs fell 11% to £2.46 billion, which fell similarly by 5.9%.
New chief executive Cindy Rose acknowledged that recent performance was “unacceptable” and promised to take action to address it.
“There is still a lot to do,” Ms Rose said, “We are optimistic, energetic and confident that we are making the right plan.”
It’s the latest in a series of troubled days for WPP investors, with shares down 63% in the last 12 months.
In European equities on Thursday, the CAC 40 in Paris closed down 0.5%, while the DAX 40 in Frankfurt closed little changed.
Stocks in New York were mixed, with the Meta platform falling 9.7%, which weighed on the S&P 500 and Nasdaq.
The Dow Jones Industrial Average was up 0.5%, the S&P 500 index was 0.3% lower, and nasdaq composite Was down 0.8%.
Meta, which owns Facebook and Instagram, forecast increased investment and higher operating costs after a third quarter distorted by a heavy tax provision.
Chief Executive Mark Zuckerberg told investors he thinks the right strategy is to “aggressively pursue manufacturing capacity.”
Investors also appreciated the sharp comments of the Federal Reserve Chairman jerome powell That defied market pricing for another interest rate cut in December.
Mr Powell, speaking after the Fed cut rates by a quarter point at its October meeting, said the December cut was not a “foregone conclusion” and cuts should not be assumed.
JPMorgan analyst Michael Ferroli said: “By Powell’s standards, these were unusually harsh comments.”
While Bank of America said Mr Powell came out “vigorously” against market pricing cuts in December and drove the message home “multiple times” during the press conference.
The US rates call came ahead of central bank meetings in Japan and Europe.
The Bank of Japan took the decision by a majority of seven versus two to keep interest rates unchanged.
A statement issued by the BOJ after the monetary policy meeting said interest rates were kept at 0.5%, matching the consensus quoted by FXStreet.
“There still remain high uncertainties regarding the impact of trade and other policies on economic activity and prices at home and abroad,” the BOJ said in a statement after the decision.
While in Europe, European Central Bank It left rates unchanged for the third consecutive meeting, leaving its outlook for inflation largely unchanged.
The Frankfurt-based lender decided interest rates on the deposit facility, main refinancing operations and marginal lending facility remain unchanged at 2.00%, 2.15% and 2.40% respectively.
The widely expected decision is the third consecutive hold by the ECB after similar outcomes in July and September.
Before the pause in July, it had made the cut for seven consecutive meetings.
“Despite the US tariffs, despite all the different sources of uncertainty, the European economy continues to see some growth,” said Mark Wall, chief European economist at Deutsche Bank.
“Economic ‘flexibility’ is keeping the ECB under control and policy on track,” he said.
Mr Powell’s comments put the dollar on the front foot and pushed bond yields upwards.
At the close of the London Stock Exchange on Thursday, the pound was priced at $1.3149, down from $1.3236 on Wednesday.
The euro fell to $1.1565 from $1.1660.
Against the yen, the dollar was trading at 154.11 yen, higher than 152.10 yen.
The yield on US 10-year Treasuries was reported at 4.09%, up from 4.00% on Wednesday.
The yield on US 30-year Treasuries was raised to 4.64% from 4.57%.
In London, lender Standard Chartered rose 1.9% after saying it expected to reach its return on tangible equity target in 2025 rather than 2026.
Chief Executive Officer Bill Winters said the progress was broad and highlighted strong double-digit growth in Wealth Solutions and Global Banking, along with good momentum in global markets.
On the FTSE 250, Computecentre gained 5.0% as it said it delivered a strong third quarter with continued momentum in North America, an improvement in the UK and a return to growth in Germany.
Ithaca Energy and Harbor Energy rose 4.6% and 3.3% respectively after a Financial Times report said the UK government could end its windfall tax on the oil and gas sector a year earlier than planned.
Meanwhile, a conditional transaction began at lender Shawbrook Group in London.
Shares closed at 396 pence, well above the 370p offer price, giving it a market value of just over £2bn.
Unconditional dealing in the London Main Market will begin on Tuesday next week.
TT Electronics was a star performer, rising 59% after accepting a £287 million takeover approach from Secor Technologies.
Based in Braunshofen, Switzerland, Secor develops and manufactures electronic components, devices and systems.
Woking, England-based TT, which also makes electronic components, said the cash and shares value each share in TT at 155p.
At the time of closing of the London Stock Exchange on Thursday, the price of Brent oil was $ 64.92 per barrel, which was $ 64.52 late on Wednesday evening.
Gold was little changed, trading at $3,998.00 an ounce, compared with $3,997.24 on Wednesday.
The biggest risers on the FTSE 100 were Airtel Africa, up 6.4 pence at 274.8p, Auto Trader, up 15.2p at 808.8p, Centrica, up 3.3p at 179.8p, Standard Chartered, up 28.0p at 1,544.0p, and GSK, up 31.0p at 1,783.0p.
The biggest fallers on the FTSE 100 were WPP, down 61.7p at 298.85p, JD Sports Fashion, down 3.32p at 95.0p, Whitbread, down 80.0p at 2,967.0p, Segro, down 14.4p at 699.7p and Burberry, down 26.0p. Remained at 1,280.0p.
Friday’s global economic calendar includes GDP data from Canada, Eurozone inflation data and Chicago PMI in the US.
There are no significant events scheduled in the UK corporate calendar for Friday.
– Contributed by Alliance News