Hot Features
Premium
Trade like a pro: Leverage real-time discussions and market-moving ideas to outperform.
London open: Stocks gain ahead of key policy announcements; HSBC results in focus
London stocks rose in early trade on Monday as investors mulled results from the likes of HSBC and Pearson, and looked ahead to a series of key central bank policy announcements this week.
At 0845 GMT, the FTSE 100 was up 0.8% at 7,351.45.
Rate decisions are due this week from the Bank of England, the Bank of Japan and the US Federal Reserve.
The BoE is expected to keep interest rates unchanged on Thursday.
Tickmill Group said: “The LSEG’s assessment shows a 90% probability that the BoE will maintain the current rates. While the BoE is likely to hold rates steady, the market remains divided on whether there could be another rate hike later this year.
“According to a recent Reuters poll, 16 out of 28 respondents indicated that the likelihood of another rate hike this year is high. The BoE’s messaging and the language in its policy statement will be crucial in shaping market expectations. The central bank’s communication will play a significant role in determining whether or not a rate increase is anticipated in the near future.”
On the macro front, net lending and mortgage approvals figures are due out at 0930 GMT.
In equity markets, Airtel Africa jumped to the top of the FTSE 100 as it reported a rise in half-year revenues and said it expects to deliver an improved EBITDA margin in FY24 versus a year earlier.
Ascential rocketed after agreeing to sell its digital commerce business and its product design business, WGSN, for a combined £1.4bn. The digital commerce business will be sold to Omnicom for around £741m, while WGSN will be sold to Apax Partners for up to £700m.
HSBC was firmer after it posted a smaller-than-expected jump in third-quarter profits and announced a $3bn share buyback. In the three months to the end of September, pre-tax profit rose to $7.7bn from $3.2bn in the same period a year earlier, falling short of consensus expectations of $8.1bn.
Matt Britzman, equity analyst at Hargreaves Lansdown: “There wasn’t much in these results to upset the apple cart and the fresh buyback is testament to a strong capital position.
“HSBC is the only major UK-listed bank to still be up year-to-date after Standard Chartered left the club last week. Yet the valuation still looks downbeat, paving the way for some impressive investor returns.”
Education publisher Pearson advanced as it lifted its profit guidance for the full year by £20m despite a slowdown in revenue growth in the third quarter.
Mike Ashely’s Frasers Group gained after saying it had sold the Missguided fast-fashion brand to Shein for an undisclosed sum, and hinted at further potential collaborations with the Chinese ecommerce giant.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
St. James’s Place Plc | +2.98% | +18.40 | 636.80 |
| 2 |  |
Rightmove Plc | +2.86% | +13.70 | 492.90 |
| 3 |  |
Centrica Plc | +2.26% | +3.50 | 158.60 |
| 4 |  |
Smiths Group Plc | +2.01% | +31.50 | 1,601.50 |
| 5 |  |
Persimmon Plc | +1.96% | +19.30 | 1,004.50 |
| 6 |  |
Tui Ag | +1.94% | +8.00 | 419.40 |
| 7 |  |
Prudential Plc | +1.92% | +16.20 | 859.40 |
| 8 |  |
Diageo Plc | +1.90% | +57.50 | 3,082.50 |
| 9 |  |
Fresnillo Plc | +1.89% | +10.40 | 560.00 |
| 10 |  |
Informa Plc | +1.88% | +13.20 | 715.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Sainsbury (j) Plc | -0.31% | -0.80 | 254.70 |
| 2 |  |
Carnival Plc | -0.29% | -2.40 | 838.60 |
| 3 |  |
Bp Plc | -0.28% | -1.50 | 529.00 |
| 4 |  |
Ferguson Plc | -0.20% | -25.00 | 12,595.00 |
| 5 |  |
British Land Company Plc | -0.10% | -0.30 | 294.90 |
| 6 |  |
Marks And Spencer Group Plc | -0.05% | -0.10 | 214.40 |
| 7 |  |
Shell Plc | -0.00% | -0.00 | 1,894.60 |
| 8 |  |
Just Eat Plc | -0.00% | -0.00 | 861.00 |
| 9 |  |
Nmc Health Plc | -0.00% | -0.00 | 938.40 |
| 10 |  |
Standard Life Aberdeen Plc | +0.00% | +0.00 | 274.10 |
Monday newspaper round-up: Interest rates, house prices, Hargreaves Lansdown
The recent rise in interest rates has been blamed for ending Britain’s wealth boom and causing total household wealth to plunge by a quarter since the Covid-19 pandemic. A report by the Resolution Foundation, a thinktank, and Abrdn, the asset manager, said the fall was due to a drop in house prices and pension pots, which account for about £4 out of every £5 of total wealth, and played a leading role in rising wealth across the country over the 40 years leading up to the pandemic. – Guardian
House prices have fallen in every local property market in the south and east of England this year, as higher mortgage rates have weakened demand for new homes, figures have shown. About 80% of markets in the UK registered house price falls over 2023 compared with last year, the property portal Zoopla found. – Guardian
The approval of 27 new drilling licenses in the North Sea has been hailed as a victory by Energy Minister Claire Coutinho, who said it will reduce Britain’s reliance on expensive imports. A new set of offshore oil and gas fields has been announced by the Government, marking a clear division between the Conservatives and Labour ahead of the next election. – Telegraph
Jeremy Hunt is walking a financial tightrope. The Chancellor is under pressure to offer a boost to voters before next year’s general election, whether in the form of tax cuts or extra spending. However, estimates from the Office for Budget Responsibility (OBR) suggest that just £6bn of headroom will be available for next month’s Autumn statement – the smallest margin since the watchdog was set up in 2010 and minuscule compared to Britain’s £2.6 trillion debt pile. – Telegraph
Hargreaves Lansdown has fired a warning shot at its billionaire co-founder after the tycoon publicly attacked bosses at the company. Disclosures in the FTSE 100 wealth manager’s latest annual report show that the business had “shared protocols” with Peter Hargreaves, 77, its biggest shareholder, and his board representative to “ensure a common understanding of how interactions will take place”. – The Times
