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London open: Stocks gain ahead of payrolls; Reckitt surges
London stocks rose in early trade on Friday as investors digested the latest house price and retail industry data and looked ahead to the US non-farm payrolls report.
At 0835 GMT, the FTSE 100 was up 0.4% at 8,142.58.
The payrolls report for October is due at 1230 GMT, along with the unemployment rate and average earnings.
Richard Hunter, head of markets at Interactive Investor, said: “The next test which rounds off a packed week of updates comes later with the release of the non-farm payrolls report, where the current consensus is that 113,000 jobs will have been added last month, compared to 254,000 in September and where unemployment is expected to remain steady at 4.1%.”
On home shores, figures released earlier by Nationwide showed that house price growth slowed in October.
House prices ticked up 0.1% on the month following 0.6% growth in September. This was below expectations for 0.3% growth.
On the year, house prices increased 2.4% in October, down from 3.2% a month earlier.
The average price of a home stood at £265, 738, down from £266,094 in September.
Nationwide chief economist Robert Gardner said: “Housing market activity has remained relatively resilient in recent months, with the number of mortgage approvals approaching the levels seen pre-pandemic, despite the significantly higher interest rate environment.
“Solid labour market conditions, with low levels of unemployment and strong income gains, even after taking account of inflation, have helped underpin a steady rise in activity and house prices since the start of the year.
“Providing the economy continues to recover steadily, as we expect, housing market activity is likely to continue to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth.”
Investors were also mulling the latest retail industry data, which showed that footfall declined in October, reversing much of September’s surprise uplift.
Footfall jumped 3.3% in September, the first rise in over year and a notable improvement on August’s 0.4% dip.
But according to the latest data from the British Retail Consortium and Sensormatic, total UK footfall decreased 1.1% in October, dampening hopes for the start of a more positive trend.
High streets recorded a 3.6% slide, compared to September’s 0.9% uptick, while shopping centre footfall was down 1.6%. In September, it rose 2.3%.
Retail park footfall increased by 4.8%. But that was below September’s 7.3% spike.
Andy Sumpter, EMEA retail consultant at Sensormatic, said: “While this will be disappointing for many retailers, who may have hoped the positive figures in September would spell the start of a more consistent uptick in store traffic, it perhaps shouldn’t come as a surprise.
“We expect to see a bumpy recovery as myriad market conditions – from the cost of living to shaky consumer confidence around the Budget – continue to make footfall performance volatile.”
Helen Dickinson, chief executive of the British Retail Consortium, said the timing of half term had made for tough comparatives.
However, she added: “Retailers have seen footfall consistently fall since the pandemic. Thriving high streets and town centres not only good for local economies but also form a key part of the social fabric of communities up and down the country.
“Retailers needs a policy environment that supports growth and investment.”
In equity markets, Reckitt Benckiser surged to the top of the FTSE 100 after its subsidiary Mead Johnson was cleared of liability in a US trial investigating whether it – and Abbott – hid bowel disease risks associated with premature-baby formula.
CMC Markets gained as it announced a long-term partnership with New Zealand bank ASB, to provide ASB’s clients with a customised trading platform, integrating CMC’s technology with the bank’s existing systems.
Schroders was boosted by an upgrade to ‘outperform’ at BNPP Exane.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Reckitt Benckiser Group Plc | +8.97% | +420.00 | 5,104.00 |
| 2 |  |
Schroders Plc | +3.55% | +12.20 | 356.20 |
| 3 |  |
South32 Limited | +2.90% | +5.30 | 188.00 |
| 4 |  |
Banco Santander S.a. | +2.53% | +9.50 | 384.50 |
| 5 |  |
Aib Group Plc | +2.25% | +9.25 | 420.00 |
| 6 |  |
Investec Plc | +1.85% | +11.00 | 606.00 |
| 7 |  |
Gsk Plc | +1.83% | +25.50 | 1,418.00 |
| 8 |  |
Rolls-royce Holdings Plc | +1.61% | +8.60 | 544.00 |
| 9 |  |
Bp Plc | +1.49% | +5.60 | 382.25 |
| 10 |  |
Shell Plc | +1.38% | +35.50 | 2,614.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Coca-cola Europacific Partners Plc | -1.96% | -120.00 | 6,000.00 |
| 2 |  |
Carnival Plc | -1.77% | -27.50 | 1,529.50 |
| 3 |  |
International Consolidated Airlines Group S.a. | -1.52% | -3.20 | 207.70 |
| 4 |  |
Smurfit Westrock Plc | -1.34% | -54.00 | 3,961.00 |
| 5 |  |
Smith (ds) Plc | -1.28% | -7.00 | 538.50 |
| 6 |  |
Pershing Square Holdings Ltd | -1.04% | -36.00 | 3,434.00 |
| 7 |  |
Jd Sports Fashion Plc | -0.93% | -1.15 | 122.85 |
| 8 |  |
Haleon Plc | -0.81% | -3.00 | 369.40 |
| 9 |  |
Smith & Nephew Plc | -0.73% | -7.00 | 954.00 |
| 10 |  |
Severn Trent Plc | -0.62% | -16.00 | 2,552.00 |
US close: Stocks sharply lower following tech earnings, PCE reading
Wall Street stocks closed sharply lower on Thursday as market participants were again zeroed in on Q3 earnings and a number of key data points.
At the close, the Dow Jones Industrial Average was down 0.90% at 41,763.46, while the S&P 500 lost 1.86% to 5,705.45 and the Nasdaq Composite saw out the session 2.76% weaker at 18,095.15.
The Dow closed 378.08 points lower on Thursday, extending losses recorded in the previous session after a preliminary GDP reading showed the US economy had grown at a 2.8% annualised clip in Q3, falling short of the 3.1% print expected by analysts.
Corporate earnings were again in focus on Thursday, with Meta Platforms trading lower after missing expectations for user growth and warning that capital expenditures would increase in 2025, while Microsoft issued revenue guidance that disappointed investors.
After the bell, tech earnings were again in focus, with Apple posting better-than-expected quarterly earnings but said earnings had been impacted by a one-time charge related to the reversal of European General Court decision that will require it to pay €13.0bn in back taxes to the Irish government, while Amazon also said quarterly earnings beat expectations after its cloud and advertising units showed strong growth.
On the macro front, US employers announced 55,597 job cuts in October, according to Challenger, Gray and Christmas, down from September’s reading of 72,821 but markedly higher than 36,836 at the same time a year earlier.
Elsewhere, Americans lined up for unemployment benefits at a decelerated pace in the week ended 26 October, according to the Labor Department. Initial jobless claims fell by 12,000 to 216,000 last week, well below market expectations for a reading of 230,000, reinforcing the view that the US labour market remains resilient to the Federal Reserve’s restrictive interest rate policy, adding weight to the argument that the central bank will likely steer clear of making any further aggressive rate cuts at its upcoming meetings.
On another note, the US personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, rose 0.2% in September, according to the Commerce Department, putting the 12-month inflation rate at 2.1%.
Finally, the Chicago Fed‘s purchasing managers index sank to 41.6 in October, according to the Institute of Supply Management, down from 46.6 in September and well and truly short of expectations for a reading of 47.
Friday newspaper round-up: Boeing, Amazon, Harland & Wolff
Striking Boeing workers will vote on an improved contract offer on Monday, which includes a 38% pay rise over four years and a bigger signing bonus, their union said on Thursday. More than 30,000 factory workers who produce Boeing’s strongest-selling 737 Max commercial jet and other planes have been on strike since 13 September and have rejected two earlier offers from Boeing. – Guardian
Amazon became the latest of the “magnificent seven” tech giants to report quarterly earnings on Thursday, with all eyes once again on cloud computing and any sign of a return on vast AI investments. Shares in the e-commerce giant rose in after-hours trading. The company reported revenue of $158.9bn against analyst expectations of $157.2bn, and earnings per share of $1.43, compared to $1.16 expected by Bloomberg analysts. – Guardian
Carmakers including Honda and BMW have temporarily halted sales to customers in recent days as the industry grapples with a motor finance scandal that lawyers have warned will be “bigger than PPI”. Honda last weekend ordered showrooms not to deliver vehicles bought via financing deals following a shock court ruling on commissions paid to car salesmen. – Telegraph
The fallout from the car loans scandal has widened after it emerged that Metro Bank had temporarily halted its asset finance lending to review the ramifications of a shock court ruling. Several lenders have frozen their motor finance operations in recent days, causing chaos in the car loans market, following a Court of Appeal judgment last Friday that set a much higher bar for the disclosure of commission arrangements between credit brokers and lenders than had been required by existing regulations. Lenders were found to be liable for brokers’ lack of transparency. – The Times
Harland & Wolff’s leading executive has failed to meet an administrator-imposed deadline to provide a statement of affairs at the troubled shipbuilder, which is now not expected to be able to repay creditors. Russell Downs, the group’s executive chairman, has asked administrators at Teneo to extend the deadline to November 5. – The Times
