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London open: Stocks edge down ahead of data raft
London stocks fell in early trade on Wednesday as investors eyed a raft of UK data releases and third-quarter US GDP figures.
At 0900 GMT, the FTSE 100 was down 0.3% at 7,432.40.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Hopes for a softer landing for the mighty US economy are failing to lift overall sentiment in Europe, as investors focus on the risks of sticky inflation.
“Comments from a usually hawkish Fed policymaker that there could be room for cuts to interest rates if the price spiral keeps heading in the right direction look set to push Wall Street higher at the open.
“But the FTSE 100 has opened on the backfoot with little to spark a wave of buying. Central bank policymakers in Europe have been more guarded, with Christine Lagarde of the ECB stressing that wage pressures remain elevated, and Andrew Bailey of the Bank of England warning that higher rates will be needed for a prolonged period.”
On the macroeconomic front, third-quarter US GDP figures are due at 1330 GMT. On home shores, net lending, consumer credit and mortgage approvals data for October are scheduled for release at 0930 GMT.
In equity markets, Asia-focused banks Standard Chartered and HSBC were among the worst performers on the FTSE 100, while Aviva was knocked lower by a downgrade to ‘hold’ from ‘buy’ at Deutsche Bank.
Pennon Group was in the red as it posted a near-60% drop in half-year underlying pre-tax profit.
Elsewhere, Halfords tumbled as it narrowed its guidance range for annual profit, highlighting a softening in demand for its big-ticket discretionary categories. It now expects FY24 underlying pre-tax profit of between £48m and £53m, down from previous guidance of £48m to £58m.
On the upside, Ocado surged as chairman Rick Haythornthwaite bought 9,500 ordinary shares in the company for 561p each, paying about £53,000.
Precious metals miners Fresnillo and Endeavour shone as gold prices rose.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Ocado Group Plc | +3.56% | +20.20 | 587.20 |
| 2 |  |
Easyjet Plc | +3.25% | +13.70 | 434.90 |
| 3 |  |
Fresnillo Plc | +3.01% | +16.80 | 575.80 |
| 4 |  |
British Land Company Plc | +2.86% | +9.90 | 355.70 |
| 5 |  |
Rightmove Plc | +2.08% | +11.00 | 538.60 |
| 6 |  |
Land Securities Group Plc | +1.77% | +11.00 | 633.00 |
| 7 |  |
Segro Plc | +1.41% | +11.40 | 820.00 |
| 8 |  |
Smith (ds) Plc | +1.25% | +3.50 | 283.60 |
| 9 |  |
Taylor Wimpey Plc | +1.14% | +1.45 | 128.45 |
| 10 |  |
Auto Trader Group Plc | +1.12% | +8.00 | 719.20 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Standard Chartered Plc | -2.60% | -17.20 | 645.00 |
| 2 |  |
Hsbc Holdings Plc | -2.24% | -13.60 | 593.60 |
| 3 |  |
Rentokil Initial Plc | -2.21% | -9.80 | 432.90 |
| 4 |  |
Centrica Plc | -1.74% | -2.60 | 146.55 |
| 5 |  |
Aviva Plc | -1.65% | -7.00 | 417.60 |
| 6 |  |
Bae Systems Plc | -1.19% | -12.50 | 1,038.00 |
| 7 |  |
Hiscox Ltd | -1.07% | -11.00 | 1,016.00 |
| 8 |  |
Whitbread Plc | -1.04% | -33.00 | 3,144.00 |
| 9 |  |
Bunzl Plc | -1.01% | -30.00 | 2,945.00 |
| 10 |  |
Compass Group Plc | -0.92% | -19.00 | 2,052.00 |
US close: Stocks extend rally, reclaim earlier losses
US stocks closed higher on Tuesday as major indices reclaimed some of their earlier losses.
At the close, the Dow Jones Industrial Average was up 0.24% at 35,416.98, while the S&P 500 was 0.10% firmer at 4,554.98 and the Nasdaq Composite saw out the session 0.29% higher at 14,281.76.
The Dow closed 83.51 points higher on Tuesday, taking a bite out of losses recorded in the previous session.
Stocks searched for direction at the bell on Tuesday as market participants took stock of what has been another strong month for major indices despite mounting macroeconomic pressures.
However, Boeing, which received an upgrade from analysts at RBC Capital, as well as retailers Nike and Walmart, traded higher and gave the blue-chip Dow Jones a boost in afternoon trading.
On the macro front, S&P/Case-Shiller‘s home price index increased to 318.59 points in September, up from 317.84 points in August and well and truly ahead of the 23-year average of 183.01 points and near its all-time high of 318.71 points in June 2022.
On another note, the Richmond Federal Reserve‘s manufacturing index decreased to -5 in November, down from +3 in October and missing market expectations for a reading of +1. Of its three component indices, shipments fell from +9 to -8, new orders edged down from -4 to -5, and employment decreased from +7 to 0.
Data also showed that consumer confidence had improved in November, despite most consumers still expecting an imminent recession, with the Conference Board‘s index rising to 102 for the month, up from a downwardly revised print of 99.1 from October and ahead of estimates for a reading of 101.
Elsewhere, Federal Reserve banker Christopher Waller expressed confidence that monetary policy was “currently well positioned” to slow the economy and bring inflation back to 2%. Traders generally expect the Federal Open Markets Committee to keep its key lending rate steady at its December meeting.
Also in focus, US Treasury yields dipped, with the yield on the benchmark 10-year note down almost six basis points at 4.33%.
In the corporate space, Zscaler was in the red despite the cloud security company posting Q1 adjusted earnings and revenues that beat expectations, while software firm CrowdStrike turned in an all-time high in terms of net new annual recurring revenues of $223.0m and record profitability.
Wednesday newspaper round-up: Telecoms providers, redundancy capital, Telegraph
A Tory MP who accused the gambling regulator of being too “heavy handed” has received more than £8,000 in hospitality and payments from the betting industry this year, including tickets to see Madonna. Craig Whittaker, the MP for Calder Valley in West Yorkshire, criticised the Gambling Commission in an article for the Conservative Home website last week. – Guardian
The UK’s biggest telecoms providers are lining up above-inflation price increases for broadband and mobile customers that will add almost £500m to consumers’ bills from next spring, according to a new estimate. BT, EE, Vodafone, Virgin Media O2 and TalkTalk are to increase bills for more than 22 million broadband and mobile phone customers under “mid-contract” price rise clauses from April and May next year. – Guardian
A downturn in tech and construction has made London the redundancy capital of Britain, new data shows. One in six companies is planning to cut staff as the jobs market there is disproportionately hit by slumps in retail, housebuilding and IT, according to the Recruitment and Employment Confederation (REC). – Telegraph
An anti-greenwashing rule intended to stop fund managers from misleading investors with unsubstantiated environmental claims has been put back by six months. The Financial Conduct Authority (FCA) revealed the new regime would now be implemented on May 31 next year and not immediately as previously planned. – The Times
More than two thirds of subscribers to The Daily Telegraph have said they would be less likely to read the newspaper if it is taken over by an Abu Dhabi-backed group, according to a survey highlighting the risks to the publication from its possible change of ownership. A YouGov poll of more than 500 adults found that 69 per cent of those who had a subscription, and 64 per cent who were readers, were either “a bit” or “much” less likely to continue to pick the paper if it is backed by Sheikh Mansour bin Zayed al-Nahyan of Abu Dhabi. This rose to 76 per cent of subscribers and readers when the United Arab Emirates’ history of censorship was highlighted to survey respondents. – The Times
