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London open: Stocks edge higher in quiet trade
London stocks edged higher in early trade on Monday amid a dearth of corporate news, as investors eyed the release of the latest US inflation data this week.
At 0830 GMT, the FTSE 100 was up 0.3% at 7,905.23.
CMC Markets analyst Michael Hewson said: “As we look ahead to another week, the main focus is going to be on tomorrow’s US January CPI report, along with retail sales later in the week. Better-than-expected numbers are unlikely to be positive in the context of being near a peak for US rates.
“It’s also a big week for UK economic data after last week’s Q4 GDP numbers which showed the economy stalled. While there were some pockets of strength there is little doubt that the UK economy remains fragile and will continue to remain so as we look towards Wednesday’s CPI and tomorrow’s wages data.
“Headline inflation is still well above 10% and expected to remain so even after this week’s CPI reading, which means consumers are likely to remain cash-strapped for some time to come, a trend that is likely to be reinforced by January retail sales numbers on Friday.”
On the corporate front, there was no FTSE 350 news of note out, so broker notes were providing most of the action.
Smiths and Weir Group were high risers after Goldman Sachs reinstated coverage of the stocks at ‘buy’.
On the downside, housebuilders Persimmon, Taylor Wimpey, Barratt Developments, Crest Nicholson and Redrow all fell after rating downgrades at Deutsche Bank.
Water companies Severn Trent and Pennon were under the cosh after downgrades to ‘sector perform’ from ‘outperform’ at RBC Capital Markets, and Network International was hit by a downgrade to ‘equalweight’ at Barclays.
Outside the FTSE 350, Kape Technologies surged after saying it had received a $1.51bn (£1.25bn) takeover offer from its largest shareholder, Teddy Sagi.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
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| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Spirax-sarco Engineering Plc | +1.72% | +200.00 | 11,820.00 |
| 2 |  |
Coca-cola Hbc Ag | +1.60% | +30.50 | 1,940.50 |
| 3 |  |
International Consolidated Airlines Group S.a. | +1.58% | +2.54 | 163.24 |
| 4 |  |
National Grid Plc | +1.50% | +15.50 | 1,050.00 |
| 5 |  |
Smiths Group Plc | +1.40% | +24.50 | 1,774.00 |
| 6 |  |
Centrica Plc | +1.22% | +1.20 | 99.34 |
| 7 |  |
Carnival Plc | +1.19% | +9.80 | 831.80 |
| 8 |  |
Antofagasta Plc | +1.16% | +19.50 | 1,694.00 |
| 9 |  |
Croda International Plc | +1.16% | +78.00 | 6,788.00 |
| 10 |  |
British American Tobacco Plc | +1.15% | +35.00 | 3,080.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
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| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Persimmon Plc | -2.55% | -38.00 | 1,453.00 |
| 2 |  |
Taylor Wimpey Plc | -2.05% | -2.50 | 119.25 |
| 3 |  |
Barratt Developments Plc | -1.29% | -6.10 | 466.30 |
| 4 |  |
Bp Plc | -0.96% | -5.40 | 554.60 |
| 5 |  |
Bt Group Plc | -0.96% | -1.30 | 134.70 |
| 6 |  |
Dcc Plc | -0.75% | -34.00 | 4,528.00 |
| 7 |  |
Anglo American Plc | -0.64% | -20.50 | 3,207.50 |
| 8 |  |
Berkeley Group Holdings (the) Plc | -0.61% | -26.00 | 4,266.00 |
| 9 |  |
Ocado Group Plc | -0.54% | -3.40 | 631.80 |
| 10 |  |
Fresnillo Plc | -0.46% | -3.60 | 787.00 |
US close: Dow gives up early gains
Wall Street stocks were firmly in the red at the close of trading on Thursday, extending heavy losses recorded in the previous session.
At the close, the Dow Jones Industrial Average was down 0.73% at 33,699.88, while the S&P 500 lost 0.88% to 4,081.50 and the Nasdaq Composite saw out the session 1.02% weaker at 11,789.58.
The Dow closed 249.13 points lower on Thursday, a roughly 500 point turn around from early gains, to extend Wednesday’s losses.
Thursday’s primary focus was, as almost always, on the Labor Department‘s jobless claims report, which revealed Americans lined up for unemployment benefits at an accelerated clip in the seven days ended 4 February.
Initial jobless claims rose by 13,000 week-on-week to 196,000, up from the prior week’s nine-month low of 183,000 and above economists expectations for a reading of 190,000. Continuing claims printed at 1.68m, up 38,000 week-on-week, while the four-week moving average for initial claims, which aims to strip out week-to-week volatility, declined from 191,750 a week earlier to 189,250.
Also drawing an amount of investor attention, Disney shares traded higher after the entertainment giant posted smaller-than-expected subscriber losses, as well as quarterly earnings and revenues that beat estimates, and announced plans to cut jobs in an effort to lower overheads.
Earnings from Hilton, Kellogg and Ralph Lauren all beat estimates thanks to revenues topping forecasts, Philip Morris missed earnings projections by just $0.01, even as revenues topped expectations, and PepsiCo posted a rise in quarterly profits and hiked its annual dividend but sales indicated that consumers may soon feel the pinch of higher prices.
PayPal reported a quarterly earnings beat after the close of trading.
Monday newspaper round-up: Telecoms providers, NatWest, energy firms
Britain’s biggest telecoms providers are preparing to launch inflation-busting price increases for broadband and mobile contracts this spring, hitting consumers with a combined bill worth £600m more than if these deals had matched the cost of living. BT, EE, Vodafone, Virgin Media, O2 and TalkTalk are to increase bills for tens of millions of customers under “mid-contract price rises” from April and May. – Guardian
NatWest is set to reveal its largest annual profit since the 2008 financial crisis amid speculation that the taxpayer-backed bank will ramp up the size of its bonus pool just as consumers struggle with the cost of living crisis. The banking group, which is still 45% state-owned, is expected to report £5.1bn in pre-tax profits for 2022 when it reveals annual results on Friday, according to City analysts. – Guardian
A million more Britons will start paying tax on their savings this year as a result of a stealth raid by the Treasury and higher interest rates, analysis for the Telegraph shows. Ten straight Bank of England rate rises from 0.1pc to 4pc have boosted earnings on thousands of savings accounts after years of dismal returns. However, a £1,000 tax-free allowance on savings interest that was designed to spare most people from the taxman has not been increased in line with inflation since it was introduced in 2016. – Telegraph
More gas and electricity suppliers could go bust because soaring numbers of households are unable to pay their bills, the industry body has warned. Emma Pinchbeck, chief executive of Energy UK, urged the government to scrap April’s 20 per cent rise in energy bills, saying that otherwise “millions more households will fall into debt”, with “disastrous” consequences for consumers and companies. – The Times
The tycoon considering a bid for Manchester United has raised €3.5 billion via his Ineos business to build the greenest chemical cracker in Europe. Sir Jim Ratcliffe has landed finance from 21 commercial banks for the project located in Antwerp, Belgium. – The Times
