Investing.com -- British stocks were mostly flat at Wednesday’s open, as inflation surged to its highest level in over a year, while investors also assessed earnings from JD Sports and M&S.
As of 0710 GMT, the blue-chip index FTSE 100 fell 0.06%, while British pound rose 0.3% against the dollar to 1.34, touching the level again this week.
Meanwhile, European equity indices also edged lower at open after the apparent failure of Ukraine peace talks. DAX index in Germany fell 0.1%, the CAC 40 in France 0.2%.
U.K. inflation jumps
The surge in U.K. inflation to 3.5% year-over-year in April, up from 2.6% in March and well above the Bank of England’s 2.0% target, is likely to prompt the central bank to delay further interest rate cuts.
On a monthly basis, inflation rose sharply by 1.2%, compared to 0.3% in March.
Economists had expected the consumer price index to increase 3.3% annually and 1.1% monthly.
JD Sports profit dips 12% as costs rise; shares slump
JD Sports Fashion PLC (LON: JD ) reported a nearly 12% drop in statutory pre-tax profit for the 52 weeks ending February 1, impacted by higher acquisition costs and finance charges.
Pre-tax profit decreased to £715 million from £811 million in the prior 53-week period, with a £53 million rise in adjusting items contributing to the decline.
Meanwhile, group revenue climbed 10.2% to £11.46 billion from £10.40 billion, or 12% higher when adjusted for constant currency.
JD Sports shares fell over 10% at open.
M&S shares dip after $400 mln cyberattack impact warning
Shares of Marks and Spencer Group PLC (LON: MKS ) fell over 3% after the retailer said it expects a $400 million hit to operating profit from a cyberattack last month, with online disruptions likely continuing through July.
The company also reported a 24% drop in pretax profit to £511.8 million, mainly due to a noncash impairment on its Ocado (LON: OCDO ) Retail investment.
However, revenue rose 6% to £13.82 billion, led by growth in food, fashion, home, and beauty. Adjusted operating profit climbed 17% to £984.5 million.
Currys raises full-year profit forecast
Currys PLC (LON: CURY ) updated its full-year profit forecast, now anticipating adjusted pretax earnings around £162 million for the fiscal year ending May 3, up from its earlier estimate of £160 million. Analysts had predicted a consensus of £159 million.
The firm posted a 2% increase in group like-for-like sales for the year, matching closely with the expected 2.1%, with stronger-than-anticipated results primarily coming from the Nordic markets.
Coats Group shares fall despite revenue growth
Coats Group PLC (LON: COA ) started 2025 strongly, with group revenues rising 4% at constant exchange rates over the first four months.
This growth was driven by solid performances in Apparel and Footwear, both up 5%.
However, shares fell 2.8% at open.
SSE reports steady profit but cuts investment plans for 2025
SSE PLC (LON: SSE ) released its full-year 2024/25 results, revealing steady operational results while scaling back its long-term investment strategy in response to evolving economic conditions.
For the fiscal year ending 31 March 2025, adjusted operating profit was £2.42 billion, remaining largely unchanged from the previous year.
The company also reduced its five-year investment forecast by £3 billion to £17.5 billion, attributing the revision to shifts in the broader economic landscape impacting its energy operations.
(This story will be updated)