Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
London open: Stocks rally again despite political chaos
London stocks rose in early trade on Thursday following positive sessions in the US and Asia, as investors mulled the latest minutes from the US Federal Reserve and continued to shrug off political turmoil.
At 0915 BST, the FTSE 100 was up 1.1% at 7,184.44.
Prime Minister Boris Johnson was hanging on to his position by the skin of his teeth despite more than 50 ministers resigning amid claims he misled them over his knowledge of sexual harassment allegations against an MP he promoted as an aide.
Neil Wilson, chief market analyst at Makets.com, said: “Stock markets across Europe are firmer this morning with the major bourses notching 1% gains in early trade following a solid session in Asia and a third straight positive day for Wall Street.
“Boris clings on but the resignations keep on coming and even that great political heavyweight and giant intellect (!) Zahawi has called for him to go only two days after being made chancellor. It’s over for sure.
“FOMC minutes were clear and unambiguous: the Fed will do whatever it takes to tame inflation. Ninety times was ‘inflation’ mentioned in the minutes, while mentions of ‘recession’ struck out at zero.”
Market participants were also digesting the latest survey from Halifax, which showed that house prices rose in June at their fastest monthly pace since early 2007 despite the cost-of-living crisis.
Prices rose 1.8% from May, when they increased 1.2%. On the year, meanwhile, house prices were up 13% in June, versus a 10.7% jump the month before. The average house price pushed up to another record high of £294,845.
The annual growth rate was the highest since late 2004.
Russell Galley, managing director at Halifax, said the UK market had continued to defy any expectations of a slowdown.
“The supply-demand imbalance continues to be the reason house prices are rising so sharply,” he said. “Demand is still strong – though activity levels have slowed to be in line with pre-Covid averages – while the stock of available properties for sale remains extremely low.
“Property prices so far appear to have been largely insulated from the cost-of-living squeeze. This is partly because, right now, the rise in the cost of living is being felt most by people on lower incomes, who are typically less active in buying and selling houses. In contrast, higher earners are likely to be able to use extra funds saved during the pandemic, with latest industry data showing that mortgage lending has increased by the highest amount since last September.”
In equity markets, miners were on the rise as metals prices pushed up, with Glencore, Anglo American, Rio Tinto and Antofagasta all higher.
RS Group rallied after an upbeat trading statement, while Legal & General gained after saying it had had a good start to 2022, and that it expects to deliver double-digit growth in cash and capital generation for the first half.
Currys surged even as the electricals retailer said it expects annual profits to be lower as consumers started to tighten their belts amid the cost-of-living crisis.
Keith Bowman, investment analyst at Interactive Investor said Currys had reported “broadly encouraging annual results following what has been a tough few years”.
“Group sales on a currency adjusted basis are flat, although up 10% on a two-year like-for-like basis, while both pre-tax profit and the dividend payment are ahead of City estimates,” he said.
Drax powered ahead after it said late on Wednesday that full-year adjusted EBITDA was set to be “slightly above” the top of the range of analyst expectations.
On the downside, housebuilder Persimmon slumped even as it said it expects half-year profits to be “modestly” higher than expectations, despite rising energy and raw materials prices and wage increases. Peers Barratt and Berkeley followed suit.
Entain fell after saying that online gaming revenue would be flat in the current year, as customers started to cut back on spending amid soaring inflation and prices.
Top 10 FTSE 100 Risers
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Anglo American Plc | +7.55% | +198.50 | 2,827.50 |
| 2 |  |
Glencore Plc | +6.70% | +27.35 | 435.80 |
| 3 |  |
Antofagasta Plc | +6.20% | +64.50 | 1,104.50 |
| 4 |  |
Bhp Group Limited | +4.71% | +102.00 | 2,266.50 |
| 5 |  |
Rio Tinto Plc | +4.68% | +219.50 | 4,907.00 |
| 6 |  |
Bp Plc | +3.76% | +13.85 | 382.50 |
| 7 |  |
Standard Chartered Plc | +3.67% | +21.20 | 599.40 |
| 8 |  |
Prudential Plc | +3.37% | +33.20 | 1,017.00 |
| 9 |  |
Legal & General Group Plc | +3.04% | +7.10 | 240.30 |
| 10 |  |
Melrose Industries Plc | +2.71% | +4.10 | 155.20 |
Top 10 FTSE 100 Fallers
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Persimmon Plc | -5.47% | -102.00 | 1,763.00 |
| 2 |  |
Flutter Entertainment Plc | -3.58% | -302.00 | 8,136.00 |
| 3 |  |
Coca-cola Hbc Ag | -3.27% | -60.00 | 1,777.50 |
| 4 |  |
Smith & Nephew Plc | -2.06% | -24.00 | 1,141.00 |
| 5 |  |
British American Tobacco Plc | -1.79% | -62.50 | 3,426.00 |
| 6 |  |
Next Plc | -1.69% | -104.00 | 6,034.00 |
| 7 |  |
Diageo Plc | -1.47% | -53.00 | 3,558.00 |
| 8 |  |
Johnson Matthey Plc | -1.44% | -27.00 | 1,847.00 |
| 9 |  |
Segro Plc | -1.03% | -10.30 | 992.20 |
| 10 |  |
Croda International Plc | -0.91% | -62.00 | 6,764.00 |
Thursday newspaper round-up: Gambling, HSBC, Phones4U, GSK
The value of food exports to the EU dropped by £2.4bn in the first 15 months after Brexit, according to analysis of HMRC data. However, overall exports, which were hit by the double whammy of Brexit red tape as well as decreased demand in hospitality due to the pandemic in 2021, recovered in the first three months of this year, the figures show. Data tracking exports since 1 January 2021, when the Brexit transition year ended, show UK food exports dropped by 19% to £10.4bn in the 15 months to 31 March 2022. – Guardian
MPs will this week write to the prime minister to voice concern that No 10 policy advisers with past ties to the gambling industry may be opposing tougher regulation designed to protect vulnerable people and addicts. It comes as Guardian analysis reveals that the industry lavished £280,000 on MPs in the run-up to an overhaul of gambling laws, which were expected to be published next week. – Guardian
HSBC is closing in on a deal to sell its Russian business to the banking tycoon Igor Kim following pressure from MPs to withdraw and fully condemn Vladimir Putin’s war in Ukraine. The lender is understood to be in talks with Expobank, which is owned by Mr Kim, over a sale, with discussions said to be at an advanced stage. – Telegraph
The chairman of Six Nations Rugby has denied conspiring to destroy Phones 4U when he ran the mobile operator O2, despite discussing business opportunities with his rival at EE. Ronan Dunne testified to the High Court on Wednesday that he attended a secret lunch with Olaf Swantee in 2012 but said he did not discuss pricing strategies for the two networks’ upcoming 4G services. – Telegraph
GSK shareholders have overwhelmingly voted in support of plans to break up the drugs group through the demerger and listing of Haleon, its consumer healthcare business, later this month. At a general meeting yesterday at Heathrow, 99.8 per cent of voting investors approved the separation, which is set to take place via the listing of Haleon on the London Stock Exchange on July 18. – The Times
