FTSE 100 Rises on Strong Earnings, Novo Nordisk Falls Sharply

The FTSE 100 index experienced a robust increase on March 15, 2024, climbing by 54.88 points, or 0.6%, to close at 9,136.32. This surge was primarily driven by positive earnings reports from major companies such as AstraZeneca and Barclays. In contrast, shares of Novo Nordisk plummeted following a disappointing earnings forecast, impacting investor sentiment.

Investors in London were presented with a flurry of corporate earnings announcements. Notably, shares in Games Workshop rose sharply by 5.4% after the company reported a remarkable 29% increase in pre-tax profit, reaching £262.8 million for the financial year ending June 1. Revenue also saw a significant boost of 17%, amounting to £617.5 million, up from £525.7 million the previous year. The company announced a total dividend of £5.20, a 24% increase from last year’s £4.20.

AstraZeneca, the largest constituent of the FTSE 100, also contributed to the index’s rise, with shares climbing 3.4%. The Cambridge-based pharmaceutical company reported a 30% increase in pre-tax profit for the second quarter of 2025, reaching $3.13 billion, up from $2.4 billion a year earlier. Revenue rose 12% to $14.46 billion, exceeding analysts’ expectations of $14.31 billion.

Barclays saw its shares advance 2.5% after delivering strong results, although it did not raise its guidance. Bank of America characterized Barclays’ performance as “good,” noting that underlying profits were approximately 11% above consensus estimates, driven mainly by higher non-interest income and lower impairments.

Despite the overall positive sentiment, Croda International faced challenges, with its stock declining 10%. Although the specialty chemicals maker reported a 4.9% increase in revenue for the first half of 2025, its pre-tax profit fell 19% to £85.5 million, down from £106.1 million a year prior.

The broader European markets mirrored the UK’s performance, with the CAC 40 in Paris rising 0.7% and the DAX 40 in Frankfurt advancing 1%. However, Novo Nordisk’s shares plunged 23% after the company revised its full-year sales and profit forecasts downward, citing lower-than-expected uptake of its weight-loss and diabetes treatments in the United States. The company now projects sales growth of between 8% and 14%, down from 13% to 21%, and operating profit growth of 10% to 16%, reduced from 16% to 24%.

Analysts at Jefferies expressed concern that this outlook cut could lead to significant downgrades in profit forecasts for 2025. The market reaction underscored the volatility surrounding pharmaceutical stocks, particularly in the face of competitive challenges.

In the United States, stock markets exhibited more subdued activity, with the Dow Jones Industrial Average down 0.3%, the S&P 500 0.1% lower, and the Nasdaq Composite also declining by 0.1%. A report from the Conference Board highlighted a slight increase in consumer confidence, albeit from low levels, alongside a larger-than-expected drop in job openings.

Attention now turns to the US Federal Reserve, which is expected to maintain interest rates in the range of 4.25% to 4.5% during its upcoming meeting. This would mark the fifth consecutive hold after a rate cut in December 2023. Analysts at Morgan Stanley anticipate that Fed Chair Jerome Powell will adopt a balanced approach, acknowledging inflation risks while projecting potential rate cuts later in the year.

Additionally, trade negotiations between Chinese and US delegations continued in Stockholm, with both sides aiming to extend a truce set to expire in two weeks. Analysts suggest that an extension could pave the way for a potential meeting between Chinese President Xi Jinping and former US President Donald Trump, raising hopes for a trade deal.

In currency markets, the British pound eased to 1.3337 against the US dollar, while the euro fell to 1.1537. The US dollar traded slightly lower against the Japanese yen at 148.38.

On the commodities front, Brent crude oil was quoted higher at $70.74 per barrel, and gold prices rose to $3,327.45 per ounce.

The day ahead will bring additional corporate earnings reports, including results from defense manufacturer BAE Systems, Asia-focused lender HSBC, and pharmaceutical firm GSK. Furthermore, economic indicators such as interest rate decisions in the US and Canada, along with US economic growth figures, are anticipated to influence market sentiment moving forward.