Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
London open: Stocks fall but Rightmove surges on potential takeover
London stocks fell in early trade on Monday at the start of what is expected to be a fairly quiet session, with US markets closed for the Labor Day holiday.
At 0845 BST, the FTSE 100 was down 0.3% at 8,353.43.
Richard Hunter, head of markets at Interactive Investor, said: “The UK’s premier index drifted in early trade, despite the prospect of more M&A activity both underpinning share price performances while also confirming the fact that international institutions have been casting the slide rule over UK corporates.
“Given cheap valuations on a historical basis as well as in comparison to many developed markets elsewhere, the UK has inevitably become something of a hunting ground. The latest potential target in the premier index is Rightmove, after comments from Australia’s REA Group that it was considering making an offer having identified a ‘transformational opportunity’ in combining the two online property websites.”
Rightmove surged more than 20% after the Australian real estate advertising company confirmed speculation that it was considering a possible cash and share offer for UK property platform.
REA, majority owned by Rupert Murdoch’s News Corp, said in a statement that it sees “clear similarities” between the two groups, but has not yet approached, nor had any discussions with, Rightmove regarding any potential offer.
Barratt Developments gained after UBS upgraded shares of the housebuilder to ‘buy’ from ‘neutral’ and lifted the price target to 630p from 610p.
IT provider Kainos tumbled after saying it expects full-year revenues to be below market forecasts due to the tougher trading environment in services as clients delayed decisions on projects, but adjusted pre-tax profit would be in line with consensus estimates.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Woodside Energy Group Ltd | +3.32% | +46.00 | 1,432.00 |
| 2 |  |
Aib Group Plc | +2.89% | +13.00 | 462.50 |
| 3 |  |
Banco Santander S.a. | +1.34% | +5.00 | 378.50 |
| 4 |  |
Crh Plc | +1.19% | +80.00 | 6,824.00 |
| 5 |  |
Auto Trader Group Plc | +1.10% | +9.40 | 860.40 |
| 6 |  |
Sainsbury (j) Plc | +1.03% | +3.00 | 295.40 |
| 7 |  |
Segro Plc | +0.96% | +8.40 | 879.60 |
| 8 |  |
Tesco Plc | +0.79% | +2.80 | 356.50 |
| 9 |  |
Bt Group Plc | +0.72% | +1.00 | 140.00 |
| 10 |  |
Pershing Square Holdings Ltd | +0.70% | +26.00 | 3,762.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Croda International Plc | -2.29% | -94.00 | 4,013.00 |
| 2 |  |
Smurfit Westrock Plc | -2.06% | -74.00 | 3,517.00 |
| 3 |  |
Diploma Plc | -2.02% | -90.00 | 4,374.00 |
| 4 |  |
Halma Plc | -1.80% | -47.00 | 2,559.00 |
| 5 |  |
Spirax Group Plc | -1.75% | -135.00 | 7,560.00 |
| 6 |  |
Bhp Group Limited | -1.49% | -31.00 | 2,052.00 |
| 7 |  |
Jd Sports Fashion Plc | -1.30% | -1.80 | 136.15 |
| 8 |  |
Prudential Plc | -1.29% | -8.40 | 643.60 |
| 9 |  |
Wise Plc | -1.21% | -8.50 | 696.00 |
| 10 |  |
Rio Tinto Plc | -1.13% | -54.00 | 4,716.00 |
US close: Stocks higher following July PCE numbers
Wall Street stocks closed higher on Friday as investors digested a key inflation reading.
At the close, the Dow Jones Industrial Average was up 0.55% at 41,563.08, while the S&P 500 advanced 1.01% to 5,648.40 and the Nasdaq Composite saw out the session 1.13% firmer at 17,713.62.
The Dow closed 228.03 points higher on Friday, extending gains recorded in the previous session and setting the blue-chip index on a course for another record close.
Friday’s primary focus was last month’s personal consumption expenditures price index, with the Federal Reserve Bank’s preferred inflation gauge rising in July, according to the Commerce Department, in line with preliminary estimates. The personal consumption expenditures index increased by 0.2% month-on-month or 2.5% on a year-on-year basis, exactly in line with consensus estimates. Stripping out volatile food and energy prices, core PCE also increased 0.2% for the month but was 2.6% higher on the year, slightly softer than the 2.7% estimate.
Elsewhere on the macro front, the Chicago purchasing managers index rose to 46.1 in August, according to the Institute for Supply Management, up from 45.3 in July and ahead of market expectations for a print of 45.5.
Finally, consumer confidence in the States was virtually unchanged in August, as Americans continued to try and anticipate the winner of the next presidential elections. The final reading for the University of Michigan‘s consumer confidence index printed at 67.9 for August, against a reading of 66.4 in July. Economists had pencilled in a print of 68.0.
In the corporate space, athleisure giant Lululemon missed quarterly revenue expectations for the first time since March 2022, while cosmetics retailer Ulta Beauty posted its first earnings miss since May 2020.
Monday newspaper round-up: Ride-hailing apps, ticket prices, Abercrombie & Kent
Uber and other ride-hailing apps should be forced to publish data on drivers’ workloads so that regulators can tackle exploitation and cut carbon emissions, campaigners argue. Analysis by the pressure group Worker Info Exchange suggests drivers for Uber and its smaller rivals may have missed out on more than £1.2bn in wages and costs last year because of the way they are compensated. – Guardian
The North Sea industry has warned the government not to toughen its windfall tax on oil and gas profits in the autumn budget, claiming it risks losing £12bn in tax receipts and jeopardising 35,000 jobs. The industry’s trade association, Offshore Energies UK (OEUK), has presented Treasury officials with data analysis that appears to show that proposed changes to the tax regime would devastate the sector’s predicted investment over the second half of this decade. – Guardian
Charging consumers higher ticket prices as the level of demand increases will be reviewed by the Government, the Culture Secretary has said. Ticketmaster has faced a flurry of criticism for its use of “dynamic pricing” after Oasis fans reported paying more than £300 for one of the Britpop band’s reunion shows. Fans had expected to pay around £150 and Ticketmaster was the only one of three platforms to have engaged in the practice. – Telegraph
Abercrombie & Kent is preparing for a potential float following a post-pandemic boom in luxury holidays. The travel company’s parent, Abercrombie & Kent Travel Group, has begun conversations with bankers about floating on the stock market within 18 to 24 months. However, executives are weighing up whether to list in New York, London or another European stock market. – The Times
Businesses face paying thousands of pounds in fines if they do not uphold new protections for employees introduced by Labour as part of its overhaul of workers’ rights. The Times has been told ministers are considering a warning system which would allow companies to make improvements before being hit with fines. – The Times
