The FTSE 100 extended gains on Wednesday after key CPI US inflation data came in lower than expected and eased concerns over soaring prices.
US July Core Consumer prices rose 0.3% month-on-month versus an estimated 0.5% and headline year-on-year CPI rose 8.5% against 8.7% expectations.
S&P 500 futures gained 0.74% to 4,195 and NASDAQ futures surged 2.5% ,while the FTSE 100 rose 0.3%.
A lower than expected inflation reading will raise questions about the ferocity of future interest hikes and ease the pressure on households.
Aviva
Aviva shares rose 10.9% to 459.5p after the company announced a 14% growth in adjusted operating profit to £829 million against £725 million in HY1 2022.
The firm also mentioned a 7.3% climb in General Insurance gross written premiums to £4.6 billion compared to £4.7 billion.
The insurance group noted a widened IFRS loss to £633 million from £198 million, however it said the loss was linked to adverse market movements, and did not impact capital or cash remittances.
Aviva commented it was on track to meet its FY 2022 goals, and declared a dividend of 10.3p per share, marking a 40% rise year-on-year.
The company added it was considering a share buyback in its FY 2022 results, pending regulatory and market approval.
Admiral
Admiral shares spiked 7.9% to 2,124 despite a 48% fall in operating profit to £251.3 million in HY1 2022 compared to £482.2 million the previous year.
The insurance group’s net revenue dropped 9% to £720 million from £790 the last year, with its tumbling results linked to higher inflation and a volatile market environment.
“A big drop in profits is unusual for Admiral but comes as no surprise if you’ve already seen recent warnings from fellow insurers Sabre and Direct Line,” said Hewson.
“Claims inflation has caused significant headaches in the motor insurance industry, fueled by used car prices shooting up, higher repair costs, fixes taking longer to complete and wages going up.”
However, Admiral announced a 60p per share dividend, alongside a 45p special dividend from the sale of its Penguin Portals comparison business.
RS Group
RS Group shares gained 1.9% to 1,037p after the group confirmed its intended acquisition of Mexican industrial and automation products distributor Risoul y Cia SA de CV.
The company is set to acquire the distributor for a cash consideration of $275 million on a cash-free and debt-free basis.
“We are excited about deepening our presence in Mexico and having a strong platform to expand into Latin America, a region we can see benefiting from nearshoring owing to de-globalisation and a greater focus on improving sustainability through reducing distances products travel,” said RS Group in a statement.
