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London open: Stocks flat amid Middle East woes
London stocks were steady in early trade on Monday as a boost from rising oil prices was offset by concerns about the conflict in the Middle East.
At 0900 BST, the FTSE 100 was flat at 7,599.29.
Richard Hunter, head of markets at Interactive Investor, said: “With the number of moving parts on the increase, investors are tending to err on the side of caution.
“The possibility of escalating violence in the Middle East and the potential for the conflict to fan out to the wider region has seen a shift in favour of haven assets, with the US dollar, Treasury bonds and gold all spiking.
“At the same time the oil price has moved higher once more on potential supply disruptions, while in the US a consumer sentiment survey suggested some deterioration.”
In equity markets, miners advanced in tandem with metals prices, with Rio Tinto, Antofagasta and Glencore all up.
St James’s Place was the top riser, having tanked on Friday after confirming it was reviewing its fees and charges structure.
Severn Trent gained after Jefferies upgraded the shares to ‘buy’ from ‘underperform’.
Online supermarket Ocado was the worst performer on the FTSE 100, knocked lower by a downgrade to ‘underweight’ at Barclays.
Hipgnosis tumbled after saying it had abandoned plans to pay an interim dividend in order to make sure it complies with its debt covenants, as it now expects lower payments from its US catalogue.
Elsewhere, Mike Ashely’s Frasers Group was in focus as it upped its stake in fast fashion retailer Boohoo to 15.1% from 13.4%. Last week, the company – which owns Sports Direct, House of Fraser and Flannels, among others – increased the stake from 9.1%.
Top 10 FTSE 100 Risers
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| Sponsored by Plus500 |
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| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
St. James’s Place Plc | +3.37% | +21.60 | 661.80 |
| 2 |  |
Rio Tinto Plc | +1.66% | +84.00 | 5,157.00 |
| 3 |  |
Prudential Plc | +1.63% | +14.40 | 898.40 |
| 4 |  |
Next Plc | +1.52% | +104.00 | 6,958.00 |
| 5 |  |
Antofagasta Plc | +1.47% | +20.50 | 1,417.50 |
| 6 |  |
Severn Trent Plc | +1.43% | +35.00 | 2,482.00 |
| 7 |  |
British American Tobacco Plc | +1.41% | +34.50 | 2,481.50 |
| 8 |  |
Tui Ag | +1.30% | +5.40 | 420.40 |
| 9 |  |
Shell Plc | +1.29% | +35.00 | 2,757.00 |
| 10 |  |
Persimmon Plc | +1.28% | +13.00 | 1,026.00 |
Top 10 FTSE 100 Fallers
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| Sponsored by Plus500 |
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| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Ocado Group Plc | -4.63% | -24.60 | 506.20 |
| 2 |  |
Intertek Group Plc | -1.86% | -78.00 | 4,123.00 |
| 3 |  |
Ferguson Plc | -1.51% | -210.00 | 13,670.00 |
| 4 |  |
Hikma Pharmaceuticals Plc | -1.20% | -25.00 | 2,053.00 |
| 5 |  |
Gsk Plc | -1.17% | -17.60 | 1,492.40 |
| 6 |  |
Astrazeneca Plc | -1.11% | -122.00 | 10,852.00 |
| 7 |  |
Easyjet Plc | -1.02% | -4.00 | 387.20 |
| 8 |  |
Compass Group Plc | -0.77% | -16.00 | 2,056.00 |
| 9 |  |
Halma Plc | -0.76% | -14.50 | 1,882.00 |
| 10 |  |
Scottish Mortgage Investment Trust Plc | -0.68% | -4.60 | 674.40 |
US close: Stocks mixed on Middle East concerns, bank results
Wall Street markets finished the week with a mixed performance on Friday, fuelled by the ongoing uncertainty surrounding the conflict between Israel and Hamas, partially offset by robust quarterly results from three of the nation’s largest lenders.
At the close, the Dow Jones Industrial Average had a modest gain of 0.12% to settle at 33,670.29, while the S&P 500 declined 0.5% to 4,327.78.
The tech-heavy Nasdaq Composite faced a more substantial setback, finishing down 1.23% at 13,407.23.
In currency markets, the dollar was last up 0.06% on sterling to trade at 82.4p, while it decreased by 0.03% against the euro to 95.12 euro cents.
Meanwhile, the greenback declined 0.07% on the yen to change hands at JPY 149.46.
“Following China deflation worries, after inflation data missed expectations of a rise, and heightened tensions in the Middle East, European stock indices ended the week on a negative note,” said IG senior market analyst Axel Rudolph earlier.
“Their US counterparts fared better though as major US banks reported rising profits from higher interest rates on loans.
“They did warn that the economy was slowing as customers depleted their savings, though.
“In other news, Xbox maker Microsoft closed its $69bn deal for Activision Blizzard as the UK regulator gave it the green light.”
Consumer confidence drops in October amid inflation concerns
In economic news, the University of Michigan revealed that the consumer confidence index took a dip in October, reflecting growing concerns among Americans about rising inflation rates.
The decline in consumer sentiment was notable, but there was a silver lining in the long-term outlook.
The University‘s report indicated that the index slipped from September’s reading of 68.1 to 63.0 for early October, slightly below the consensus forecast of 67.5.
That decline suggested that consumers are feeling the pinch of inflation, which had been a persistent concern in recent months.
However, the report also highlighted that long-term expected business conditions remained relatively stable.
That suggested that consumers maintain a degree of optimism, believing that the current economic challenges, including inflation, may not persist in the long run.
In a related economic development, import price increases for September failed to meet economists’ expectations.
Mixed performance among major lenders’ stocks, Boeing faces challenges
In equity markets, shares of major financial institutions showed a mixed performance.
Citigroup registered a decline of 0.24%, while JPMorgan Chase increased 1.5%, and Wells Fargo jumped 2.99%.
Elsewhere, Boeing faced a significant decline of 3.34% in its stock price amid concerns that the aerospace giant might need to revise its full-year guidance for 737 MAX aeroplanes.
The concerns stemmed from previously disclosed manufacturing flaws at one of Boeing’s crucial suppliers, casting a shadow on the company’s outlook.
Monday newspaper round-up: Inflation, energy help, landlords, Hipgnosis
Headline inflation eased again in September, official figures are expected to show this week, while pay growth is slowing. Economists polled by Refinitiv expect the Office for National Statistics (ONS) to say annual inflation fell slightly to 6.5% in September from 6.7% in August. However, that is still well above the Bank of England’s 2% target. – Guardian
Hundreds of thousands of struggling households in Great Britain risk missing out on government help to pay their energy bills this winter if they fail to make an application for financial support that opens on Monday, according to fuel poverty activists. About 800,000 bill payers missed out on an energy bill rebate of £150 last winter through the government’s warm home discount after complex changes were made to the scheme, said National Energy Action. – Guardian
Landlords are paying an extra £5.5bn a year to their banks following a surge in mortgage rates, data shows. Buy-to-let investors are now collectively paying £15bn a year in mortgage interest, a 58pc jump since November 2021 when the Bank of England began raising interest rates, analysis by Hamptons shows. – Telegraph
A former owner of Safe Hands Plans is being sued by the company’s administrators for allegedly selling the pre-paid funerals business in a deal involving customer funds. Dave Milson sold Safe Hands to Richard Wells, a motor racing enthusiast, in February 2020 through an “inherently dishonest” scheme, according to a multimillion pound High Court claim filed last month by FRP Advisory, the administrator The deal involved the “misapplication of trust moneys for the improper purpose of financing the acquisition”, it is alleged. Milson, 66, has yet to file a defence and neither he nor Wells, 37, responded to requests for comment. – The Times
A top ten shareholder in Hipgnosis Songs Fund has castigated the board and said investors should vote against the “continuation” of the music rights company to give them more power over restructuring the business. Tom Treanor, the executive director of Asset Value Investors, said shareholders were furious with the Hipgnosis board for striking a heavily discounted $440 million deal to sell almost a fifth of its portfolio. – The Times
