Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
London open: Stocks rise after late Wall Street rally
London stocks rose in early trade on Tuesday following a late rally on Wall Street, as traders returned to their desks after the long weekend.
At 0835 BST, the FTSE 100 was 1.2% firmer at 7,321.53. Markets were closed on Monday for the funeral of Queen Elizabeth II.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: “The FTSE 100 has opened higher, taking a lead from the close on Wall Street, and cheered by the lifting of a chunk of Covid restrictions in China. But investors are largely expected to be biding their time, waiting for a flurry of central bank activity later in the week, with large rate hikes expected on both sides of the Atlantic. On Wall Street stocks fluctuated in value, drifting higher at the close, amid an absence of a new raft of data to grab onto. But expectations are firming up, that given strong jobs reading and stubborn inflation, another 0.75% rate rise will wash up on shore on Wednesday, the third such hike in a row.
“In the UK, the focus will switch back to speculation over whether the new Truss government is heading for a collision course with the Bank of England with a slash and spend approach to buoy up the economy, at a time when central bank policymakers are trying to suppress demand to try and sink inflation. The Bank of England is expected to decide on another 0.5% rate hike when policymakers meet later this week, but speculation is growing that they could plump for a 0.75% hike given inflation looks set to head back up to double digits.”
In equity markets, holiday giant TUI gained as it said winter bookings were at 78% of pre-Covid pandemic levels, and that it still expects to swing to a profit this year.
British Airways and Iberia parent IAG and budget airlines Wizz and easyJet all flew higher.
Consumer healthcare company Haleon gained as it said operating profits grew more than 20% in the six months ended 30 June, driven by increased revenues and margins.
SSE was boosted by an upgrade to ‘overweight’ from ‘neutral’ at JPMorgan.
On the downside, Schroders tumbled as a five for one split was applied to the share price.
B&Q owner Kingfisher was in the red as it reported a fall in first-half profits against a tough comparator last year when DIY boomed during pandemic lockdowns, and said it was facing a “more uncertain macroeconomic environment”.
Media group Future tanked following a Sky News report that chief executive Zillah Byng-Thorne has informed the company’s chairman that she plans to retire in the next 18 months.
Online greeting card and gift retailer Moonpig also fell sharply even as it backed its full-year guidance and said overall trading since 1 May has been in line with its expectations.
Top 10 FTSE 100 Risers
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
British American Tobacco Plc | +1.64% | +56.50 | 3,507.00 |
| 2 |  |
Hsbc Holdings Plc | +1.45% | +7.70 | 537.30 |
| 3 |  |
Lloyds Banking Group Plc | +1.39% | +0.66 | 48.47 |
| 4 |  |
Diageo Plc | +1.38% | +51.50 | 3,796.50 |
| 5 |  |
Bp Plc | +1.27% | +5.75 | 457.80 |
| 6 |  |
Shell Plc | +1.22% | +28.00 | 2,324.50 |
| 7 |  |
Imperial Brands Plc | +1.20% | +23.00 | 1,933.50 |
| 8 |  |
Standard Chartered Plc | +1.13% | +6.80 | 609.00 |
| 9 |  |
Burberry Group Plc | +1.10% | +19.00 | 1,743.00 |
| 10 |  |
Bt Group Plc | +1.08% | +1.50 | 140.55 |
Top 10 FTSE 100 Fallers
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Schroders Plc | -82.90% | -2,087.40 | 430.60 |
| 2 |  |
Ocado Group Plc | -6.56% | -44.00 | 627.00 |
| 3 |  |
Ashtead Group Plc | -5.54% | -236.00 | 4,026.00 |
| 4 |  |
Persimmon Plc | -4.86% | -69.50 | 1,360.50 |
| 5 |  |
Segro Plc | -4.28% | -37.80 | 845.60 |
| 6 |  |
Berkeley Group Holdings (the) Plc | -4.06% | -146.00 | 3,449.00 |
| 7 |  |
Barratt Developments Plc | -3.94% | -16.90 | 412.10 |
| 8 |  |
Kingfisher Plc | -3.60% | -8.90 | 238.40 |
| 9 |  |
Admiral Group Plc | -3.48% | -79.00 | 2,193.00 |
| 10 |  |
Taylor Wimpey Plc | -3.11% | -3.35 | 104.20 |
US close: Major indices snap two-day losing streak
Wall Street stocks closed higher on Monday as major indices reclaimed a fraction of last week’s heavy losses ahead of this week’s FOMC meeting.
At the close, the Dow Jones Industrial Average was up 0.64% at 31,019.68, while the S&P 500 was 0.69% firmer at 3,899.89 and the Nasdaq Composite saw out the session 0.76% stronger at 11,535.02.
The Dow Jones was up 197.26 points at the close on Monday, snapping a two-day losing streak.
Stocks traded higher as market participants looked ahead to this week’s Federal Reserve policy meeting, set to kick off on Tuesday, with the central bank widely expected to hike interest rates by another 75 basis points.
On the macro front, the National Association of Housebuilders‘ housing market index fell for the ninth month in a row in September, dropping to 46 and missing market expectations for a print of 47.
“Buyer traffic is weak in many markets as more consumers remain on the sidelines due to high mortgage rates and home prices that are putting a new home purchase out of financial reach for many households,” said NAHB Chairman Jerry Konter.
In the corporate space, automotive giant Ford revealed after the close that supply chain issues were on track to cost the group as much as $1.0bn in the third quarter, sending shares south in extended trading.
Tuesday newspaper round-up: UK business investment, Drax, Tasty, Rolls-Royce
Business investment in the UK fell to the lowest rate in the G7 group of wealthy nations despite corporation tax cuts, the government has been warned, as ministers prepare £30bn of giveaways targeted at companies and higher-income workers. The Institute for Public Policy Research (IPPR) said a “race to the bottom” on the headline tax rate on company profits had failed to boost investment and economic growth in Britain over the past 15 years. – Guardian
MPs have warned consumers may end up paying higher bills if the government rushes into providing further state support for power station owner Drax. As part of Liz Truss’s £150bn energy bills freeze, renewable and nuclear power generators are being asked to supply electricity below current market rates. – Guardian
Europe’s economies face a permanent blow from higher energy costs as the Continent weans itself off cheap Russian energy, Barclays’ chief economist for the region has warned. Silvia Ardagna at the bank said the bloc’s push for “independence from Russian gas” will pull down growth, push up inflation and drag down the euro. – Telegraph
A quirk of market abuse regulations forced a quoted restaurant group to issue its half-year results yesterday, even though it was a bank holiday to mark Queen Elizabeth II’s state funeral. Tasty, operator of the Wildwood and DimT chains, had intended to issue its interims at 7am today, but was told by Cenkos, its broker, that it had to push the button 24 hours earlier. – The Times
Rolls-Royce is at the centre of a multimillion-pound battle over the alleged stealing of business secrets from a technology company that provided the luxury carmaker with software enabling its clientele to customise their £250,000 cars virtually. The action brought by Topalsson, a software engineer, goes to the High Court in London next month in a claim and counterclaim by the Goodwood-based Rolls-Royce Motor Cars over breach of contract in the provision of the so-called configurator technology. – The Times
