Friday, November 22, 2024

London open: Stocks flat as investors mull GDP data – Vox Markets

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London stocks were steady in early trade on Monday as data showed the UK economy grew less than initially thought in the second quarter of the year.
At 0825 BST, the FTSE 100 was flat at 8,318.46.

Figures released earlier by the Office for National Statistics showed that GDP grew 0.5% in the three months to June, down from a previous estimate of 0.6% growth.

The ONS said the services sector grew by 0.6% the second quarter, with widespread growth across the sector. This was partially offset by falls in both the production and construction sectors.

GDP for 2023 as a whole was estimated to have increased by 0.3%, revised up from the first estimate of 0.1% growth, mainly due to updated data from the income approach to measuring GDP.

ONS director of economic statistics, Liz McKeown, said: “Today’s updated GDP figures for 2023 and 2024 include new annual survey data, VAT returns and updates information about the relative size of each industry for the first time.

“However, after taking on these improvements, the quarterly growth path across the last 18 months is virtually unchanged.

“Our latest data show that household savings continue to increase and are now at the highest rate since the Covid-19 lockdowns.”

Elsewhere, the latest survey from Nationwide showed that house prices grew at their fastest annual rate in two years in September.

Prices rose 3.2% on the year following 2.4% growth in August and marking the fastest pace of growth since November 2022.

On the month, prices increased 0.7% in September following a 0.2% decline the month before.

The average price of a house stood at £266,094 in September, versus £265,375 a month earlier.

Robert Gardner, Nationwide’s chief economist, said: “Income growth has continued to outstrip house price growth in recent months while borrowing costs have edged lower amid expectations that the Bank of England will continue to lower interest rates in the coming quarters.

“These trends have helped to improve affordability for prospective buyers and underpinned a modest increase in activity and house prices, though both remain subdued by historic standards.”

Market participants were also mulling news of more stimulus in China, after three megacities announced the relaxation of home buying rules and the central bank said it would ask lenders to lower mortgage rates.

In equity markets, heavily-weighted miners were among the top performers as iron ore and copper prices rose, with Rio Tinto, Anglo American, Glencore and Antofagasta all up.

On the downside, Rightmove slumped as it rejected a fourth, £6.2bn takeover offer from Rupert Murdoch’s Australian property business REA Group, saying it continues to undervalue the property portal.

Under UK takeover rules, REA still has until 1700 BST on Monday to either make a firm intention to make an offer for Rightmove or walk away.

Aston Martin tanked as it said full-year profits were expected to decline as a result of a cut to wholesale volume guidance due to supply chain disruption and weak demand in China.

The luxury carmaker said it was reducing wholesale volume forecasts for 2024 by 1,000 units due to tough market conditions. It also said it needed to “smooth the cadence of wholesale volumes over the coming quarters to deliver on its demand-led approach and maximise production efficiencies”.

3i Group fell after short-seller Shadowfall Capital took out a multimillion-pound short position against the investment trust, saying that its largest holding, Action, was overvalued.

Market Movers

FTSE 100 (UKX) 8,318.46 -0.03%
FTSE 250 (MCX) 21,217.48 -0.11%
techMARK (TASX) 4,869.96 0.06%

FTSE 100 – Risers

Rio Tinto (RIO) 5,429.00p 2.26%
Anglo American (AAL) 2,485.50p 1.95%
BP (BP.) 394.30p 1.58%
Glencore (GLEN) 433.80p 1.58%
Antofagasta (ANTO) 2,067.00p 1.27%
Shell (SHEL) 2,451.50p 1.13%
Prudential (PRU) 705.00p 0.71%
AstraZeneca (AZN) 11,694.00p 0.34%
Flutter Entertainment (DI) (FLTR) 17,860.00p 0.34%
Reckitt Benckiser Group (RKT) 4,706.00p 0.28%

FTSE 100 – Fallers

Rightmove (RMV) 642.00p -3.98%
3i Group (III) 3,256.00p -3.92%
International Consolidated Airlines Group SA (CDI) (IAG) 208.50p -1.79%
easyJet (EZJ) 530.80p -1.74%
Intermediate Capital Group (ICG) 2,296.00p -1.54%
Smiths Group (SMIN) 1,737.00p -1.36%
Barclays (BARC) 226.50p -1.20%
Unite Group (UTG) 945.00p -1.15%
Airtel Africa (AAF) 115.50p -1.11%
Smith (DS) (SMDS) 458.80p -1.04%

FTSE 250 – Risers

Fidelity China Special Situations (FCSS) 229.00p 7.01%
Discoverie Group (DSCV) 628.00p 3.80%
Baltic Classifieds Group (BCG) 309.50p 3.69%
Energean (ENOG) 922.50p 3.19%
Ocado Group (OCDO) 394.10p 2.58%
Balfour Beatty (BBY) 445.60p 2.01%
Pets at Home Group (PETS) 315.00p 1.94%
Trainline (TRN) 343.60p 1.90%
JTC (JTC) 1,098.00p 1.86%
Elementis (ELM) 166.00p 1.72%

FTSE 250 – Fallers

Aston Martin Lagonda Global Holdings (AML) 141.50p -11.29%
Primary Health Properties (PHP) 98.30p -3.91%
IntegraFin Holding (IHP) 364.50p -2.80%
Crest Nicholson Holdings (CRST) 188.60p -2.38%
Savills (SVS) 1,168.00p -2.34%
Genuit Group (GEN) 471.00p -2.28%
TI Fluid Systems (TIFS) 162.80p -2.16%
SSP Group (SSPG) 159.00p -1.79%
Bankers Inv Trust (BNKR) 110.80p -1.77%
TR Property Inv Trust (TRY) 349.50p -1.69%

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