Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
London open: Stocks edge up as investors mull Rightmove data
London stocks edged up in early trade on Monday as investors mulled the latest house price research from Rightmove and looked ahead to earnings from US tech giant Nvidia this week.
At 0900 GMT, the FTSE 100 was up 0.2% at 8,079.56.
Richard Hunter, head of markets at Interactive Investor, said markets in the UK “made a positive if slightly unconvincing start in early trade” given the global backdrop.
He noted: “The FTSE 100 is now up by 4.5% so far this year and the FTSE 250 4.2%, with gains from earlier in the year having been eclipsed by the rush for growth stocks in other jurisdictions, most notably with investors looking to ride the coattails of the technology surge in the US and more latterly chasing the Trump trade.
“The UK’s reputation as a more stable, and even defensive investment destination tends to weigh against prospects in this kind of environment, despite the increasingly accepted acknowledgement that valuations are historically cheap against most other developed markets.”
Looking ahead to the rest of the week, attention will turn to Nvidia’s third-quarter results on Wednesday.
On home shores, data released earlier by Rightmove showed that house prices eased in November as uncertainty around the Budget weighed on demand.
According to the latest house price index, average new selling asking prices fell by 1.4% month-on-month in November, to £366,592. That was steeper that the 0.8% drop usually seen at this time year of year.
Year-on-year, prices rose 1.2%.
However, Rightmove said that despite the government’s Budget at the end of October having a “dampening” effect, overall market activity was stronger than last year.
The number of agreed sales was up 26%, while the number of new sellers coming to market was 6% higher.
There were also early signs of a further uptick in demand following the Bank of England’s decision to trim interest rates at the start of November, the second reduction so far this year.
Tim Bannister, Rightmove’s director of property science, said: “There’s been a lot of news to digest for homeowners over the last few weeks, and it appears that the market may still be chewing it over.
“We had been seeing a drop-off in buyer demand, both in the lead up to the Budget and in its immediate aftermath, as it was confirmed that there will be an increase to stamp duty charges.
“However, a second Bank Rate cut and a boost of optimism regarding 2025 appear to have reversed this trend at least temporarily.”
Rightmove currently expects new seller asking prices to rise by 4% in 2025, its highest prediction since 2021, as lower mortgage rates help release pent-up housing demand.
Bannister added: “The big picture of market activity remains positive when compared to the quieter market at this time last year. This sets us up for what we predict will be a stronger 2025 in both prices and number of homes sold, particularly if mortgage rates fall by enough to significantly improved affordability for more of the mass market.”
In equity markets, aerospace company Melrose shot to the top of the FTSE 100 as it held full-year guidance after a rise in revenues driven by aftermarket demand in its engines division, particularly in defence.
Revenue rose 7% in the four months to October 31, with aftermarket up 32% year on year although original equipment volume growth remained constrained by industry-wide supply chain issues, Melrose said in a trading statement.
The company still expects adjusted operating profit £550m – £570m, adding that it was on track to hit a £700m profit target in 2025.
Heavily-weighted miners were among the top performers, with Rio Tinto, Glencore and Anglo all up.
Safety equipment maker Halma ticked higher as it announced the acquisition of Lamidey Noury Medical, a Paris-based manufacturer of medical technology devices, for €50m.
Elementis rallied as it announced that chief executive officer Paul Waterman would step down after nine years in the role, with a transition planned no later than its annual general meeting in April.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Melrose Industries Plc | +8.56% | +41.90 | 531.40 |
| 2 |  |
South32 Limited | +2.86% | +5.30 | 190.70 |
| 3 |  |
Banco Santander S.a. | +1.45% | +5.50 | 384.50 |
| 4 |  |
United Utilities Group Plc | +1.34% | +14.50 | 1,099.50 |
| 5 |  |
Bhp Group Limited | +1.22% | +25.00 | 2,079.00 |
| 6 |  |
Rio Tinto Plc | +1.10% | +53.00 | 4,857.50 |
| 7 |  |
Intermediate Capital Group Plc | +1.10% | +22.00 | 2,020.00 |
| 8 |  |
Gsk Plc | +1.04% | +13.50 | 1,314.50 |
| 9 |  |
Anglo American Plc | +1.03% | +23.50 | 2,304.00 |
| 10 |  |
Standard Chartered Plc | +0.98% | +9.20 | 952.60 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Astrazeneca Plc | -1.01% | -101.00 | 9,877.00 |
| 2 |  |
Rolls-royce Holdings Plc | -0.85% | -4.60 | 534.20 |
| 3 |  |
Tesco Plc | -0.64% | -2.20 | 343.50 |
| 4 |  |
Barratt Redrow Plc | -0.56% | -2.30 | 407.20 |
| 5 |  |
Sse Plc | -0.52% | -9.00 | 1,706.50 |
| 6 |  |
Jd Sports Fashion Plc | -0.51% | -0.60 | 117.80 |
| 7 |  |
Ashtead Group Plc | -0.49% | -30.00 | 6,154.00 |
| 8 |  |
Rentokil Initial Plc | -0.45% | -1.80 | 399.00 |
| 9 |  |
Centrica Plc | -0.37% | -0.45 | 120.80 |
| 10 |  |
Coca-cola Hbc Ag | -0.36% | -10.00 | 2,744.00 |
US close: Major indices return some post-election gains
Wall Street stocks closed lower on Friday as major indices shrugged off last week’s record-setting post-election rally.
At the close, the Dow Jones Industrial Average was down 0.70% at 43,444.99, while the S&P 500 lost 1.32% to 5,870.62 and the Nasdaq Composite saw out the session 2.24% weaker at 18,680.12.
The Dow closed 305.87 points lower on Friday, extending losses recorded in the previous session after Federal Reserve chairman Jerome Powell indicated that the central bank was in no rush to continue cutting interest rates.
Underlining sentiment on Friday was news that US retail sales increased 0.4% month-on-month in October, according to the Census Bureau, following an upwardly revised 0.8% gain in September and beating consensus estimates of a 0.3% rise. Excluding automotive retailers, sales edged up just 0.1% month-on-month.
Elsewhere on the macro front, US import prices decreased to 140.8 in September, according to the Bureau of Labor Statistics, down from 141.40 in August, while export prices slipped to 146.80 points, down from 147.90 in the prior month.
On another note, the Federal Reserve Bank of New York‘s Empire State manufacturing index surged to 31.2 in November, up from -111.9 in October and smashing expectations for a reading of -0.7 with the best print seen since December 2021. New orders climbed 38 points to 28.0, while the shipments index rose 35 points to 32.5.
Finally, US business inventories increased 0.1% month-on-month in September, according to the Bureau of Labor Statistics, slowing from the prior month’s 0.3% increase and short of expectations for a reading of 0.2%.
In the corporate space, shares in semiconductor equipment and services business Applied Materials traded lower after issuing weak revenue guidance, while Domino’s Pizza traded higher on the back of news that Berkshire Hathaway had taken a stake in the restaurant chain.
Pharmaceutical stocks were also under the cosh after Donald Trump said he would nominate vaccine sceptic Robert F Kennedy Jr to the Department of Health and Human Services.
Monday newspaper round-up: Energy bills, Black Friday, Lloyds Bank, Sephora
Household energy bills across Great Britain are set to rise at the start of next year, analysts predict, putting more pressure on household finances. Officially, the price cap for January-March 2025 will be set on Friday morning by regulator Ofgem, limiting what energy providers can charge in England, Scotland and Wales. – Guardian
Black Friday is fast becoming Black Fraud Day with the discount period now “prime time” for scammers, according to Britain’s cybersecurity chief, who said criminals were using artificial intelligence to trick shoppers. With online criminals taking advantage of an eagerness to save money amid the cost of living crisis, last Christmas people in the UK were scammed out of more than £11.5m, figures show, almost £1m more than in the same period in 2022. Fake clothing or high-end tech listings on social media were among the common ploys used to dupe people. – Guardian
Lloyds Bank has been accused of “swamping” lawyers with truckloads of post to stop them claiming compensation for drivers in the car finance mis-selling scandal. Courmacs Legal claimed it was receiving “tens of thousands” of legal letters every day from the bank’s finance arm, Black Horse, which other lenders instead send electronically. – Telegraph
Thousands more investors are seeking to sue Hargreaves Lansdown over Neil Woodford’s failed equity fund, claiming the investment platform continued to recommend the product even as it ran into issues. RGL Management, the litigation firm, is seeking to double the number of people represented in a High Court claim against Hargreaves Lansdown, taking the number of claims from 2,750 to more than 5,000. – Telegraph
Sephora, the LVMH-owned make-up giant, is ramping up its store expansion in the UK as it attempts to take on rivals such as Boots in the battle for British beauty. Guillaume Motte, its chief executive, said he wanted to double the size of the business in Britain by opening new shops and expanding its online channel. “We’re probably looking in the next two to three years to have at least 20 stores in the UK,” he told The Times. – The Times
A parcel company that previously received brickbats for poor service has more than doubled its annual pre-tax profits after a “record year” for deliveries. Evri said that a £32 million investment in customer service and the growing number of consumers shopping online for second-hand goods had helped to boost growth, with parcel volumes rising by 14.9 per cent to more than 730 million during the 53 weeks to the end of February. – The Times
