FTSE 100 ahead of European peers after dollar boost

London markets were back on a winning streak on Thursday, outperforming European peers after a strong session for the US dollar.

The FTSE 100 was pulled higher as shares in Standard Chartered soared by nearly 9% after it revealed improved quarterly earnings.

The blue-chip index closed 50.91 points higher, or 0.63%, to 8,172.15.

Standard Chartered told investors that it was continuing to benefit from higher interest rates, which had helped drive an increase in profits that was better than analysts had been expecting.

It also marks a contrast to major UK high street banks who have seen earnings come down from the highs hit during 2023.

Meanwhile, US markets were moving higher after the Federal Reserve said yesterday evening it was keeping interest rates at the same level for longer.

“The chair of the Federal Reserve Jerome Powell gave with one hand and took away with the other from a market perspective,” said AJ Bell investment director Russ Mould.

“As the Fed kept rates on hold as expected, Powell largely dismissed any idea they might rise from the current levels despite inflation proving more stubborn than hoped.

“However, he did warn rates would stay higher for longer.”

On Wall Street, the S&P 500 and Dow Jones were both 0.5% higher by the time European markets closed.

News on interest rates may have given the dollar a boost, with the pound down 0.25% to 1.25 US dollars. Sterling was also down 0.1% to 1.168 euros.

Germany’s top stock index, the Dax, edged 0.15% lower and in France, the Cac 40 was down 0.88% at close.

In other company news, shares in Revolution Bars jumped higher after the bar chain confirmed it had held talks with rival operator Nightcap over a potential takeover deal.

The company said it had had an “exploratory meeting” with Nightcap, having previously revealed it was considering putting itself up for sale as part of a major restructuring plan.

Shares in Revolution were 13.8% higher at the end of the day.

Shell shares also moved higher after the energy giant unveiled further returns for shareholders, with another 3.5 billion US dollars (£2.8 billion) in share buybacks.

It also said earnings fell by less than feared over the first three months of the year, compared with the same time last year. Its share price was up 1.9% at close.

The biggest risers on the FTSE 100 were Standard Chartered, up 61p to 756p, Smurfit Kappa, up 200p to 3,674p, Prudential, up 23.6p to 728.6p, IAG, up 5.25p to 178.3p, and Scottish Mortgage Investment Trust, up 23.8p to 857.6p.

The biggest fallers on the FTSE 100 were Whitbread, down 98p to 3,001p, Beazley, down 19.5p to 639.5p, Melrose Industries, down 18.2p to 603p, Kingfisher, down 4.4p to 244p, and Glencore, down 7.8p to 458.7p.