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London open: Stocks flat as investors eye ADP
London stocks were steady in early trade on Thursday following mostly weaker US and Asian sessions, as investors eyed the release of US jobs data.
At 0845 BST, the FTSE 100 was flat at 8,272.96.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: “Today, eyes are on the ADP report. A consensus of analyst estimates on Bloomberg predict that the US economy may have added 144K private jobs last month, a certain rebound from the 122K printed a month earlier.
“A data in line with expectations, or ideally stronger-than-expected, could pour some cold water on the recession worries and keep indices stable into Friday’s official jobs figures. A softer-than-expected figure on the other hand will likely fuel the recession worries and could further weigh on US treasury yields, the dollar and stock indices.”
In equity markets, housebuilder Vistry gained as it announced a further £130m share buyback as it posted a 7% increase in first-half pre-tax profit.
In the half year to 30 June, pre-tax profit rose to £186.2m from £174m in the same period a year earlier, with total completions up 9.1% to 7,792. Vistry hailed “good demand” across its Partner Funded markets.
Premier Inn owner Whitbread was also higher after an upgrade to ‘neutral’ at Redburn, while RS Group was boosted by an upgrade to ‘buy’ at Citi.
On the downside, Admiral, Antofagasta, DS Smith, Aviva, Croda, IAG and Prudential were all weaker as they traded without entitlement to the dividend.
Associated British Foods fell as it said like‐for‐like sales at Primark were expected to fall by around 0.5% in the second half of the financial year, with a projected decline of 0.9% in the fourth quarter due to wet weather in the UK and Ireland which hit footfall and seasonal sales in womenswear and footwear.
Primark revenue growth is expected to be around 4% for the period, driven by a strong contribution from its continued store expansion programme.
Currys was in the red even as the electricals retailer posted a jump in sales for the 17 weeks to 24 August as it took a nearly 50% share of the UK laptop market.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Severn Trent Plc | +2.19% | +57.00 | 2,658.00 |
| 2 |  |
Banco Santander S.a. | +2.05% | +7.50 | 373.00 |
| 3 |  |
United Utilities Group Plc | +1.94% | +20.00 | 1,049.00 |
| 4 |  |
Wpp Plc | +1.90% | +13.40 | 720.20 |
| 5 |  |
Barclays Plc | +1.77% | +3.95 | 227.65 |
| 6 |  |
Standard Chartered Plc | +1.68% | +12.60 | 762.60 |
| 7 |  |
Sse Plc | +1.65% | +31.50 | 1,945.00 |
| 8 |  |
Centrica Plc | +1.58% | +1.95 | 125.40 |
| 9 |  |
Phoenix Group Holdings Plc | +1.52% | +8.50 | 569.50 |
| 10 |  |
Taylor Wimpey Plc | +1.40% | +2.20 | 159.05 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Woodside Energy Group Ltd | -6.98% | -96.00 | 1,280.00 |
| 2 |  |
Associated British Foods Plc | -4.80% | -120.00 | 2,381.00 |
| 3 |  |
Sant Uk.8fepf | -2.88% | -4.00 | 135.00 |
| 4 |  |
Smith (ds) Plc | -2.63% | -12.20 | 451.80 |
| 5 |  |
Admiral Group Plc | -2.52% | -74.00 | 2,857.00 |
| 6 |  |
Rolls-royce Holdings Plc | -2.50% | -12.00 | 468.70 |
| 7 |  |
Gen.acc.7se.pf | -2.33% | -3.00 | 125.50 |
| 8 |  |
Wise Plc | -1.99% | -13.50 | 666.00 |
| 9 |  |
Halma Plc | -1.85% | -47.00 | 2,497.00 |
| 10 |  |
Spirax Group Plc | -1.53% | -115.00 | 7,390.00 |
US close: Dow does little to reclaim Tuesday’s heavy losses
Major indices turned in a mixed performance on Wednesday as the blue-chip Dow Jones managed to claw back some of yesterday’s losses.
At the close, the Dow Jones Industrial Average was up 0.09% at 40,974.97, while the S&P 500 slipped 0.16% to 5,520.07 and the Nasdaq Composite saw out the session 0.30% weaker at 17,084.30.
The Dow closed 38.04 points higher on Wednesday, doing little to reverse losses recorded in the previous session as traders returned from the Labor Day long weekend to fresh manufacturing data that seemingly indicated that US economic growth had slowed.
On the macro front for Wednesday, the Bureau of Economic Analysis revealed that the US trade deficit had widened to $78.8bn in July, the largest gap in more than two years, up from June’s $73.0bn shortfall. Exports increased 0.5% to a record high of $266.6bnm while imports surged 2.1% to $345.4bn.
Elsewhere, US factory orders rose by 5% in July to $592.1bn, according to the Census Bureau, rebounding from June’s 3.3% decline and beating market forecasts for a 4.7% increase.
On another note, the Labor Department said job openings had fallen by 237,000 to 7.67m in July, down from June’s downwardly revised reading of 7.91m and missing market expectations for a reading of 8.1m. July’s print was also the weakest reading since January 2021.
Finally, US mortgage applications increased by 1.60% week-on-week in the seven days ended 30 August, according to the Mortgage Bankers Association of America.
In the corporate space, Nvidia shares traded lower after Bloomberg revealed that the Justice Department had issued the chipmaker with subpoenas, while Dick’s Sporting Goods smashed earnings estimates but issued cautious guidance ahead of November’s Federal election, and Dollar Tree shares slumped after the discount retailer missed on earnings and lowered full-year guidance.
Thursday newspaper round-up: X, Marks & Spencer, Volvo
More than a quarter of advertisers are planning to cut spending on Elon Musk’s X over concerns about the social media platform’s content and trust in the information disseminated, according to new global research. Advertising revenue flowing to X has been in freefall since Musk bought the site, then known as Twitter, for $44bn (£38bn) in October 2022, claiming it had not lived up to its potential as a platform for “free speech”. – Guardian
Marks & Spencer is using artificial intelligence to advise shoppers on their outfit choices based on their body shape and style preferences, as part of efforts to increase online sales. The 130-year-old retailer is using the technology to personalise consumers’ online experience, and suggest items to buy. – Guardian
The BBC has confirmed plans to cut dozens more jobs in its local operations even as bosses pledged to spend £80m on diversity programmes. The BBC will cut around 115 editorial and production roles as it battles to plug a black hole in its finances, equivalent to 3pc of the division’s workforce. Further cuts are planned in operations departments. – Telegraph
Volvo, the Swedish car marque renowned for its environmental commitment, has scrapped plans to sell only fully electric cars by 2030 in the latest sign of a global slowdown in growth for battery-powered vehicles. Another of Europe’s leading car makers, Germany’s Volkswagen, has indicated it could shed thousands of jobs because of expected lower demand in a market disrupted by political and regulatory diktats on zero-emission vehicles. – The Times
The proportion of former rental properties for sale is the highest on record, an increase that may be driven by landlords’ fears of an increase in capital gains tax in the budget, according to Rightmove. Eighteen per cent of properties for sale were previously on the rental market, compared with 8 per cent in 2010. The property website said that landlords’ fears that the budget on October 30 would result in an increase in capital gains tax — a tax on the profit made when an asset is sold — could be behind the surge. – The Times
