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London open: FTSE steady ahead of busy week
London stocks were steady in early trade on Monday as investors eyed a busy week, with policy announcements due from the Federal Reserve, the Bank of England and the Bank of Japan.
At 0840 GMT, the FTSE 100 was flat at 8,302.21.
Kathleen Brooks, research director at XTB, said: “It may be the last full week of trading before 2025, however, there is a bumper week of data and news to digest that could impact market performance before year end. Central bank decisions, year-end economic data and European political developments are all worth watching.”
As far as the BoE rate decision on Thursday is concerned, Brooks said there is virtually no expectation of a rate cut, with the market instead pricing in a 76% chance of a cut in February.
“The BOE have been vocal about their plans for gradual rate cuts, however the weak run of confidence data and economic data means that the commentary from the BOE will be worth watching on Thursday. While we doubt the BOE will cut rates, they could signal a faster pace of cuts next year. There are currently three cuts expected, however, we think that the BOE could cut at a faster pace due to the deterioration in the economic data. If the BOE does sound concerned about the growth outlook at this week’s meeting, then it could have a big impact on financial markets even if they don’t cut rates on Thursday.
“There is also a chance that the market starts pricing in a 50bp cut for February, after arch hawk Catherine Mann said in a recent speech that super-sized rate cuts could have a bigger impact on the economy rather than a gradual approach to rate cuts.”
Investors were mulling the latest data from Rightmove, which showed that new seller asking prices fell by 1.7% on the month in December following a 1.4% decline the month before.
On the year, prices were up 1.4% following 1.2% growth in November.
The average price of a home was £360,197 this month, versus £366,592 a month earlier.
Rightmove said that despite “the festive lull”, activity remains “substantially” stronger than the same period a year ago, with the number of sales being agreed up 22% and new buyer demand up 13%.
“This momentum is a good sign for another Boxing Day activity bounce,” it said.
Tim Bannister, Rightmove director of property science, said: “We are now looking ahead to the traditional Rightmove Boxing Day bounce in home-mover activity, which has increasingly become a key date in the housing market calendar. Each year, our real-time data can pinpoint the exact moment that the turkey is finished, family games run out of steam, mobile devices are picked up, and prospective movers flood onto Rightmove and get their 2025 move started.
“If this year is anything like recent years, those early birds who get their search started the day after the festivities are over are likely to be rewarded with plenty of fresh property choice to consider.”
In equity markets, Bunzl was boosted by an upgrade to ‘outperform’ at RBC Capital Markets.
Ladbrokes owner Entain was under the cosh after Australia’s financial crime regulator began civil penalty proceedings against the company related to alleged contraventions of an anti-money laundering and counter-terrorism financing act.
Entain said that, judging by the fines handed out for similar cases in the past, the investigation “may result in a penalty being levied which could be potentially material”.
DCC fell after a downgrade to ‘sector perform’ at RBC Capital Markets, while PageGroup was knocked lower by a downgrade to ‘neutral’ at BNP Paribas Exane.
Computacenter was weaker after it announced the immediate departure of Christian Jehle as its chief financial officer and an executive director by mutual agreement, with his responsibilities temporarily managed by the finance team and executive management until a successor is appointed.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Bp 8%pf | +4.14% | +5.50 | 138.50 |
| 2 |  |
Bunzl Plc | +1.36% | +48.00 | 3,568.00 |
| 3 |  |
Barclays | +1.34% | +3.60 | 273.00 |
| 4 |  |
International Consolidated Airlines Group S.a. | +1.26% | +3.70 | 296.90 |
| 5 |  |
Natwest | +1.26% | +5.10 | 410.60 |
| 6 |  |
Bp 9% 2nd Prf | +0.98% | +1.50 | 154.50 |
| 7 |  |
Standard Chartered Plc | +0.87% | +8.70 | 1,005.50 |
| 8 |  |
South32 Limited | +0.77% | +1.30 | 170.10 |
| 9 |  |
3i Group Plc | +0.74% | +27.00 | 3,673.00 |
| 10 |  |
Smith (ds) Plc | +0.73% | +4.00 | 551.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Centrica Plc | -2.71% | -3.55 | 127.60 |
| 2 |  |
Barratt Redrow Plc | -1.81% | -7.90 | 429.10 |
| 3 |  |
Rentokil Initial Plc | -1.65% | -6.80 | 406.10 |
| 4 |  |
Diageo Plc | -1.47% | -38.50 | 2,580.00 |
| 5 |  |
Prudential Plc | -1.42% | -9.20 | 640.40 |
| 6 |  |
Next Plc | -1.23% | -122.00 | 9,782.00 |
| 7 |  |
Sse Plc | -1.23% | -20.50 | 1,648.00 |
| 8 |  |
Ashtead Group Plc | -1.15% | -60.00 | 5,136.00 |
| 9 |  |
Diploma Plc | -1.09% | -48.00 | 4,374.00 |
| 10 |  |
Marks And Spencer Group Plc | -1.03% | -4.10 | 393.60 |
US close: Dow Jones turns in seventh-straight losing session
Major indices delivered a mixed performance on Friday as the blue-chip Dow Jones turned in its seventh-consecutive losing session.
At the close, the Dow Jones Industrial Average was down 0.20% at 43,828.06, while the S&P 500 was flat at 6,051.09, and the Nasdaq Composite saw out the session 0.12% firmer at 19,926.72.
The Dow closed 86.06 points lower on Friday, extending losses recorded in the previous session after last month’s producer price index came in hotter than expected.
On Friday’s macro slate, US import prices rose more or less as expected last month on the back of dearer energy. According to the US Department of Labor, in seasonally adjusted terms, import prices edged up at a month-on-month pace of 0.1%. Economists had forecast a decline of 0.2%.
Export prices, on the other hand, were unchanged versus October, held back by a 0.4% drop in agricultural export prices.
In the corporate space, Broadcom shares were up more than 24% after the chipmaker topped Q4 adjusted earnings estimates overnight as AI revenues surged 220% year-on-year.
No major earnings were released on Friday.
Monday newspaper round-up: Water companies, TalkTalk, Persimmon
Water companies should spend more on helping vulnerable customers, according to consumer groups, as households in England and Wales brace for steep bill increases to be announced this week. The water regulator, Ofwat, is due to reveal on Thursday how much water bills will rise over the five years from next April. – Guardian
Voters have broadly accepted that the £40bn in tax rises in Rachel Reeves’s first budget are “necessary” to improve public services, despite the majority expecting to be worse off as a result, according to research. The chancellor announced in October a package of tax increases in order to fund investment in public services, particularly the NHS and schools – with the largest revenue-raiser a £25bn increase in employer national insurance contributions (NICs). – Guardian
Standing charges on business electricity bills have risen sixfold since 2018 and are set to climb further in the next five years, analysts have said. The charges have increased from £31 per day – or 3.2pc of total energy bills – to £190 per day or 12.8pc, according to the consultancy Cornwall Insight. It means businesses already hit by National Insurance and minimum wage increases face an additional squeeze from what many see as a stealth charge. – Telegraph
TalkTalk is to cut hundreds of jobs as the debt-laden broadband business scrambles to strip out £120m in costs. In an update to investors last week, TalkTalk outlined plans for a “radical” restructuring that is expected to lead to hundreds of job losses. The company has already begun a redundancy consultation as it prepares to scrap around 130 jobs at its Salford-based consumer division. It is understood that further cuts will follow at a wholesale business, dubbed Platform X, taking total losses into the hundreds. – Telegraph
Budget tax rises and a new cladding levy will cost Persimmon Homes up to £40 million a year and add “billions” of expenses across the industry, the boss of one of Britain’s biggest housebuilders has warned. Dean Finch said there was a “disconnect” between the government imposing ever-increasing costs on the sector and its calls for developers to build 300,000 new homes a year. – The Times
