FTSE Modestly Higher; Airline Stocks Drift Lower

(RTTNews) - The U.K. stock market is modestly higher in early afternoon trades on Thursday as investors making purchases at select counters amid expectations the Federal Reserve will announce an interest rate cut in its upcoming monetary policy meeting.

Investors are also awaiting crucial U.S. private sector and non-farm payroll reports, due later today, and early tomorrow, respectively.

The benchmark FTSE 100, which advanced to 9,210.93 earlier in the session, was up 18.72 points or 0.2% at 9,196.71 a little while ago.

Next, up 2.5%, is the top gainer in the FTSE 100 index. WPP, Associated British Foods, Auto Trader Group and JD Sports Fashion are also up more than 2%.

Hiscox, Howden Joinery, Kingfisher, Convatec Group, Tesco, Beazley, Marks & Spencer, Aviva, Weir Group, RightMove, Sainsbury (J), Lloyds Banking Group, Informa and Severn Trent are gaining 1.3 to 2%.

Low-cost airline and travel firm Jet2 is down 13.5% after the company said it anticipates its EBIT to land towards the lower end of the consensus range. Easyjet is down more than 3%.

Admiral Group is down by about 2.5%, while Endeavour Mining, BAE Systems, Entain, Rolls-Royce Holdings, Antofagasta, Anglo American Plc and Fresnillo are down 1 to 2%.

Shares of animal genetics company Genus are soaring 12.5% after the company reported strong annual results with a 24% increase in adjusted profit before tax.

Online trading platform IG Group Holdings is up 1.5% after launching a new share buyback program.

On the economic front, survey data published by S&P Global showed that the UK construction sector contracted for the eighth consecutive month in August due to marked reductions in the housing and civil engineering works.

The construction Purchasing Managers' Index posted 45.5 in August, up from 44.3 in July. However, the score remained well below the 50.0 mark indicating sharp fall in construction output.

"Construction activity has decreased throughout the year-to-date, which is the longest continuous downturn since early-2020," S&P Global Market Intelligence Economics Director Tim Moore said.

"August data signaled only a partial easing in the speed of decline after output fell at the fastest pace for over five years in July," said Moore.