ADVFN Morning London Market Report: Monday 8 August 2022

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London open: Stocks gain as investors digest China trade figures


London stocks rose in early trade on Monday as investors mulled the latest trade data out of China.

At 0845 BST, the FTSE 100 was up 0.4% at 7,472.32.

Sentiment got a boost after China reported a record trade surplus for July thanks to strong export growth.

Exports grew 18% year-on-year in the month, coming in comfortably ahead of analysts’ expectations for a 14% jump. Imports rose 2.3% year-on-year in July, however, missing expectations of 4% growth.

Despite the positive tone, analysts struck a cautious note about the Chinese data.

“Exports held up well last month, thanks to a backlog of orders still being cleared. But it won’t be long before shipments drop back on cooling foreign demand,” said Julian Evans-Pritchard, senior China economist at Capital Economics. “Meanwhile, imports continued to trend down, pointing to further domestic weakness.”

On Friday, a stronger-than-expected US non-farm payrolls report weighed on markets as it reignited concerns about more aggressive tightening from the Federal Reserve.

In equity markets, investment platform Hargreaves Lansdown was the top riser on the FTSE 100 after price target increases at both Deutsche Bank and Barclays.

Recruiter PageGroup was weaker despite backing its full-year expectations and posting a rise in first-half pre-tax profit and revenue, as it hailed a strong performance across its geographies, disciplines and brands. In the six months to 30 June, pre-tax profit grew 80% to £114.5m, while revenues were up 27.5% at £977.3m.

Shipping services company Clarkson was also in the red even as it reported a jump in interim profit, driven by its broking division. Pre-tax profit rose to £42m from £27.3m.

Outside the FTSE 350, Joules surged after confirming it is in talks with Next about the potential acquisition of a £15m minority stake in the lifestyle brand.


Top 10 FTSE 100 Risers

# Name Change Pct Change Cur Price
1 Hargreaves Lansdown Plc +7.99% +70.80 956.60
2 Spirax-sarco Engineering Plc +2.06% +235.00 11,665.00
3 Experian Plc +1.93% +55.00 2,901.00
4 Segro Plc +1.86% +19.50 1,068.00
5 Ashtead Group Plc +1.61% +73.00 4,606.00
6 3i Group Plc +1.60% +19.50 1,242.00
7 Bunzl Plc +1.51% +46.00 3,101.00
8 Taylor Wimpey Plc +1.46% +1.80 124.95
9 Barratt Developments Plc +1.39% +6.70 490.10
10 Persimmon Plc +1.35% +25.00 1,875.50


Top 10 FTSE 100 Fallers

# Name Change Pct Change Cur Price
1 Wpp Plc -1.64% -13.40 801.20
2 Phoenix Group Holdings Plc -1.19% -8.00 662.00
3 Marks And Spencer Group Plc -1.03% -1.40 134.75
4 Bhp Group Limited -0.91% -20.50 2,226.00
5 Astrazeneca Plc -0.83% -90.00 10,776.00
6 Gsk Plc -0.64% -10.60 1,656.40
7 Micro Focus International Plc -0.61% -1.80 292.00
8 Itv Plc -0.53% -0.38 71.64
9 Glencore Plc -0.51% -2.40 464.40
10 Vodafone Group Plc -0.49% -0.60 120.84


Monday newspaper round-up: City workers, energy bills, National Grid

City workers received double-digit wage rises while people on the lowest incomes were paid annual increases of just 1% in the last year, according to a study that illustrates the ability of better-paid workers to protect themselves from the cost of living crisis. The CEBR (Centre for Economics and Business Research) said workers in the banking and insurance sector had secured inflation-busting increases together with lawyers, accountants and professional services staff, mainly among those working in London’s financial district. – Guardian

UK charities are warning people of the severe consequences of not paying their energy bills, as a campaign to stop payments from October gains momentum. The Don’t Pay UK group, which is demanding a reduction of bills to an affordable level, has reportedly gathered support from 80,000 people who intend to cancel their direct debit payments from 1 October, when the regulator raises the energy price cap, the maximum amount suppliers are allowed to charge. – Guardian

The foreign takeover of Britain’s main natural gas pipeline is to be reviewed under new national security rules amid mounting fears of a winter energy crisis. Ministers have launched an investigation into the sale of a 60pc stake in National Grid’s gas transmission business to a consortium led by the Australian investment business Macquarie. – Telegraph

The City regulator faces questions over its failure to intervene earlier at a failed money transfer business, amid fears that the service was used to launder the proceeds of crime. The Times has established that the Financial Conduct Authority had opportunities to tackle the regulated business months or even years before its collapse, including when it was taken over by a tyre fitter with no experience in financial services. The company, which cannot be named for legal reasons, handled about £2.5 billion. It is in insolvency administration, with most of the customer funds frozen by police and HM Revenue & Customs. – The Times

The National Crime Agency has come under fire from an MP and a former police and crime commissioner for an alleged failure to properly investigate claims of document tampering and signature forgery by Britain’s banks. Kevin Hollinrake, a member of the Commons’ Treasury select committee, claimed there had been a “woeful lack of proactivity” from the agency over the issue, which the committee asked it to look into in 2019. The Conservative MP, also co-chairman of the all-party parliamentary group on fair business banking, said he was concerned about the agency’s handling of a particular case, as well as its broader approach. – The Times


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