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London open: Stocks flat as investors mull GDP data
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.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Hammerson Plc | +898.75% | +286.52 | 318.40 |
| 2 |  |
Woodside Energy Group Ltd | +1.57% | +20.00 | 1,294.00 |
| 3 |  |
Bhp Group Limited | +1.47% | +34.00 | 2,346.00 |
| 4 |  |
Banco Santander S.a. | +1.30% | +5.00 | 390.50 |
| 5 |  |
Rio Tinto Plc | +1.19% | +63.00 | 5,372.00 |
| 6 |  |
South32 Limited | +0.79% | +1.50 | 192.50 |
| 7 |  |
Prudential Plc | +0.54% | +3.80 | 703.80 |
| 8 |  |
Bp Plc | +0.54% | +2.10 | 390.25 |
| 9 |  |
Wise Plc | +0.30% | +2.00 | 664.00 |
| 10 |  |
Intercontinental Hotels Group Plc | +0.24% | +20.00 | 8,364.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Intermediate Capital Group Plc | -3.60% | -84.00 | 2,248.00 |
| 2 |  |
3i Group Plc | -2.80% | -95.00 | 3,294.00 |
| 3 |  |
Melrose Industries Plc | -2.72% | -12.80 | 458.40 |
| 4 |  |
Smiths Group Plc | -2.61% | -46.00 | 1,715.00 |
| 5 |  |
International Consolidated Airlines Group S.a. | -2.26% | -4.80 | 207.50 |
| 6 |  |
Halma Plc | -1.92% | -51.00 | 2,604.00 |
| 7 |  |
Jd Sports Fashion Plc | -1.67% | -2.60 | 152.95 |
| 8 |  |
Smith (ds) Plc | -1.64% | -7.60 | 456.00 |
| 9 |  |
British American Tobacco Plc | -1.62% | -45.00 | 2,729.00 |
| 10 |  |
Intertek Group Plc | -1.62% | -85.00 | 5,155.00 |
Monday newspaper round-up: Coal power plant, Deloitte, RBS scandal
Britain’s only remaining coal power plant at Ratcliffe-on-Soar in Nottinghamshire will generate electricity for the last time on Monday after powering the UK for 57 years. The power plant will come to the end of its life in line with the government’s world-leading policy to phase out coal power which was first signalled almost a decade ago. – Guardian
Almost half of British adults will ration their energy use this winter, a survey has found, as energy bills will rise again by 10% this week. Charities have called on the government to do more to help vulnerable people to heat their homes, with the average household bill scheduled to rise by £149 after the energy price cap increases on Tuesday. – Guardian
Deloitte cut its UK partners’ pay packets by £48,000 in the last financial year as it sought to promote more people to its senior ranks. The “big four” firm said average partner pay was down to £1.012m for the year to the end of May, compared with £1.060m in 2023. It said this reflected the fact it had been increasing its number of people in senior posts, with 80 of its employees promoted to partner over the past 12 months. – Telegraph
The Government is poised to approve the extension of HS2 into Euston station, despite concerns it could saddle the taxpayer with billions of pounds in extra costs. The move will ensure that the high-speed rail route runs into the centre of London rather than ending at Old Oak Common in the west of the capital. Chancellor Rachel Reeves will reportedly use her first Budget next month to approve funding for the project, which will also include a multi-billion-pound transformation of Euston. – Telegraph
Instead of the London Stock Exchange’s junior market looking forward to celebrating its 30th birthday next year, the City is braced for the threat of a Halloween “Nightmare on Aim Street” at next month’s budget. In the run-up to Labour’s first budget in almost 15 years — to be delivered the day before Halloween — investors have been spooked by concerns that the Treasury is considering cutting a “vital” tax relief that has underpinned the Alternative Investment Market (Aim) since shortly after it was launched in 1995. – The Times
The Financial Conduct Authority permitted the destruction after only 12 months of more than one million documents collated during a banking scandal investigation — despite the fact that the regulator has a policy of retaining documents for 25 years. The regulator told Promontory, a private sector firm it commissioned to look into the mistreatment of thousands of small businesses by Royal Bank of Scotland, that it needed to keep the documents it had compiled for one year after it had completed its work. – The Times
