Airline stocks jump on EasyJet results
Aviva rises as it maintains dividend
UK factories cut prices in December
FTSE 100 up 0.1, FTSE 250 adds 0.5

Jan 25 Reuters UK shares rose on Wednesday, as upbeat earnings from airline EasyJet and insurer Aviva helped outweigh worries about Britain39;s gloomy economic outlook and further interest rate rises.

The bluechip FTSE 100 edged up 0.1 and the midcap FTSE 250 index climbed 0.5, bucking a cautious mood across European markets.

Airline stocks got a lift after EasyJet said it expected to beat market expectations for 2023 on strong bookings into summer.

easyJet has shown how a postpandemic recovery is done, Hargreaves Lansdown equity analyst Sophie LundYates wrote in a note.

Its superior proposition means its planes are at the right airports, with the right routes, to capture demand as holidaymakers return to the skies in force.

EasyJet jumped 10.4, set for its best day in almost a year, while Ryanair added 3.7 and British Airway parent IAG rose 2.3 to hit its highest since January 2022.

UK39;s main equity indexes kicked off 2023 on an upbeat note, with the FTSE 100 flirting with record levels as signs of moderation in inflation and expectations of smaller interest rate hikes from the Federal Reserve boosted global sentiment.

Data showed Britain39;s manufacturers unexpectedly reduced their prices in December, in a welcome move for the Bank of England which is weighing how much higher it needs to take interest rates….