FTSE 100 Rises as ECB Cuts Rates and Markets React to Earnings News

Dr. Martens jumps 24%, Wise plans US move, and Wizz Air crashes on weak outlook

FTSE 100 Climbs After ECB Rate Cut

The FTSE 100 index edged up 0.2% on Thursday, buoyed by the European Central Bank’s decision to cut interest rates by 25 basis points. The move was widely expected by markets and comes amid slowing inflation and stagnant eurozone growth.

The ECB deposit facility rate now stands at 2%, down from its mid-2023 peak of 4%. Meanwhile, the British pound eased 0.1%, trading above $1.35.

ECB Justifies Rate Cut Amid Slowing Inflation

Eurozone inflation fell to 1.9% in May, dipping below the ECB’s 2% target. However, economic growth remains weak, with GDP expanding just 0.3% in Q1 2025.

With rising geopolitical risks and mounting concerns over US tariffs impacting European industries—particularly steel and automotive—the ECB moved to stimulate demand and ease borrowing conditions.

Dr. Martens Surges 24% on Profit Growth Forecast

Dr. Martens (LON:DOCS) shares soared over 24% after the company posted stronger-than-expected profits for the previous year and forecast further gains. Despite a 10% revenue drop to £788 million, profit reached £34.1 million, with the firm now targeting up to £74 million in pre-tax profit for FY26.

Under new CEO Ije Nwokorie, the footwear brand will shift focus to its core product lines and reduce reliance on discounting, with improved inventory control supporting margins.

Fevertree Reaffirms Outlook Amid US Growth

Fevertree Drinks (LON:FEVR) held firm, supported by strong US sales and a strategic partnership with Molson Coors. The company reiterated its 2025 guidance and reported continued progress in its £71 million share buyback programme, having already repurchased £42.5 million worth of shares.

Wise Announces Move to US Listing

Wise PLC (LON:WISEA) gained after announcing plans to shift its primary listing to the US, while retaining a secondary listing in London. The move aims to broaden the investor base and enhance share liquidity.

Wise posted a 15% revenue increase to £1.21 billion and a 17% rise in pre-tax profits to £564.8 million for the year ending 31 March 2025.

Wizz Air Plunges 28% on Weak Outlook

Wizz Air (LON:WIZZ) shares fell more than 28% after the airline issued a weaker-than-expected FY26 forecast, missing EBITDA estimates despite a net profit beat of €214 million.

FY25 revenue of €5.27 billion and EBITDA of €1.13 billion fell short of analyst projections. The company also flagged slower capacity growth and muted revenue expectations in the first half of FY26.

Unite Group Targets Empiric in Takeover Bid

Empiric Student Property (LON:ESP) shares jumped over 6% after confirming it had received a non-binding acquisition proposal from Unite Group (LON:UTG), valuing shares at 107p.

The board has entered an engagement phase, with a firm offer deadline set for 3 July.

Kingspan Eyes US Roofing Expansion

Kingspan is planning over $1 billion in new investment into the US residential roofing market, aiming to capitalise on supply gaps. The firm envisions a “roofing mega-site,” though analysts warn of high entry barriers and stiff competition in the $24 billion market.

Workspace Reports Resilient Results

Workspace Group (LON:WKP) delivered stable full-year results, supported by growth in recurring rental income. Trading profit after interest rose 1.2% to £66.8 million, though net rental income dipped 3.2% to £122.1 million due to asset disposals.

CMC Markets Gains on Stockbroking Revenue

CMC Markets (LON:CMCX) saw a 7% rise in operating income to £332.8 million, thanks to strong performance in stockbroking and institutional services. Pre-tax profits increased 5% to £63.6 million, with EPS up 12% to 18.8p.

Source: (Investing.com)