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London open: Stocks extend rally ahead of US inflation data
UK stocks were inching higher on Monday morning, though risk appetite was capped by markets already trading at record highs ahead of some crucial inflation data from the US later in the week.
The FTSE 100 was up just 0.11% at 8,443, after setting a fresh closing high of 8433.76 on Friday following six straight days of gains. The index has now risen 6% over the past month.
Dovish central bank expectations drove the FTSE 100 and European indices – including the Dax, Cac and Stoxx 600 – to record highs last week. However, cautious comments from Federal Reserve members about the near-term path for inflation have shown diverging approaches from central banks on either side of the Atlantic, with US policymakers keen to keep interest rates higher for longer.
US inflation figures released on Wednesday may give markets an indication about how the Fed will act in the coming months. Consensus forecasts point to a slowdown in price growth in April, with the core annual rate expected to ease to 3.6% from 3.8%.
“If that’s the case, investors could breathe a sigh of relief and enjoy the dovish news from other central banks. We would then see the euro and sterling extend gains against the dollar, the yields ease and stock markets surf on a fresh wave of optimism,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
“But if the numbers surprise to the upside for the fourth straight month, it will be hard to keep the Fed hawks contained.”
Diploma jumps, Phoenix and Victrex fall
Specialist distribution business Diploma saw shares jump nearly 6% after lifting its annual guidance following a 17% rise in first-half adjusted earnings, boosted by acquisitions. It now expects constant currency revenue growth of around 16%, up 5 percentage points from previous guidance, made up of 6% organic revenue growth and 10% from acquisitions.
Savings and retirement group Phoenix was out of favour, dropping 2% after the announcement that its chief financial officer of four years is to step down later this year. The company did not give a reason for his departure.
High-performance polymers group Victrex fell 2% after underlying profits dropped by 34% in the first half following an 11% drop in volumes and 14% decline in group revenues.
An automated iron ore train operated by mining giant Rio Tinto has derailed after colliding with a set of stationary wagons in north-western Australia on Monday, causing shares in the company to slip 1%.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
International Consolidated Airlines Group S.a. | +2.07% | +3.75 | 184.95 |
| 2 |  |
Bt Group Plc | +1.85% | +1.95 | 107.35 |
| 3 |  |
Kingfisher Plc | +1.45% | +3.80 | 265.40 |
| 4 |  |
Fresnillo Plc | +1.21% | +7.00 | 584.50 |
| 5 |  |
Vodafone Group Plc | +1.15% | +0.80 | 70.20 |
| 6 |  |
Barclays Plc | +1.00% | +2.15 | 216.10 |
| 7 |  |
Tui Ag | +0.95% | +5.50 | 587.00 |
| 8 |  |
3i Group Plc | +0.91% | +26.00 | 2,877.00 |
| 9 |  |
Wpp Plc | +0.80% | +6.80 | 852.40 |
| 10 |  |
British American Tobacco Plc | +0.78% | +19.00 | 2,452.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Bae Systems Plc | -2.87% | -40.00 | 1,354.00 |
| 2 |  |
Phoenix Group Holdings Plc | -2.40% | -12.50 | 508.00 |
| 3 |  |
Crh Plc | -1.98% | -134.00 | 6,646.00 |
| 4 |  |
Ocado Group Plc | -1.72% | -6.00 | 342.30 |
| 5 |  |
Persimmon Plc | -1.44% | -20.50 | 1,404.00 |
| 6 |  |
Itv Plc | -1.40% | -1.10 | 77.20 |
| 7 |  |
Pearson Plc | -1.12% | -11.20 | 986.40 |
| 8 |  |
Hargreaves Lansdown Plc | -1.07% | -9.20 | 852.80 |
| 9 |  |
British Land Company Plc | -1.03% | -4.20 | 403.40 |
| 10 |  |
Rio Tinto Plc | -0.96% | -54.00 | 5,551.00 |
Monday newspaper round-up: BT, ultra-long mortgages, Fever-Tree
BT has said it is increasingly using artificial intelligence to help it detect and neutralise threats from hackers targeting business customers amid repeated attacks on companies. The £10.5bn group is aiming to build up its business protecting customers from online criminals and has patented technology that uses AI to analyse attack data to allow companies to protect their tech infrastructure. British businesses are routinely facing hacking attempts, and some recent high-profile victims have included including the outsourcer Capita, Royal Mail and British Airways. – Guardian
Homebuyers are increasingly being forced to “gamble” with their retirement prospects to get on the housing ladder by taking on ultra-long mortgages lasting beyond the end of their working life, it has been claimed. More than a million mortgages that stretch beyond the borrower’s state pension age have been arranged in the last three years, figures show. The data, obtained via a freedom of information (FoI) request by the former Lib Dem pensions minister Steve Webb, show the proportion of home loans arranged to last into retirement increased from 31% in the final quarter of 2021 to 42% in the same period last year. – Guardian
The sale of new petrol-fuelled motorcycles is set to be banned from 2040, under plans due to be announced by ministers as part of the Government’s net zero crackdown. The move would affect all vehicles classed as “L3” and upwards, including scooters and light, medium and higher-powered motorcycles. There are around 1.3m motorcycles registered in the UK. – Telegraph
Women are driving record worklessness because of ill health, analysis has found, as a growing number drop out of the jobs market because of neck and back pain. More than 1.5m women have dropped out of the workforce because of long-term sickness, according to analysis by the Trades Union Congress (TUC), which blamed rising NHS waiting lists for the crisis. The figure marks a 48pc increase compared with five years ago, equivalent to 503,000 women. – Telegraph
Fever-Tree is teaming up with one of the leading makers of French rosé wine as it seeks to grab a slice of the lucrative spritz market from Aperol. The mixers group, which is best known for its range of upmarket tonics, will uncork a pale pink rosé spritz today, created in a collaboration with the Provence-based Maison Mirabeau winery. – The Times
A former lord chancellor has urged the government to strengthen measures to address national security concerns raised by the ownership of a stake in Vodafone. Sir Robert Buckland has called for an independent committee to oversee the risks of the 14.6 per cent stake held by e&, a telecoms group based in the United Arab Emirates. – The Times
