Hot Features
Premium
Register for streaming realtime charts, analysis tools, and prices.
London open: Stocks fall ahead of payrolls; AJ Bell surges on upgrade
London stocks fell in early trade on Friday as investors eyed the latest US non-farm payrolls report.
At 0910 GMT, the FTSE 100 was down 0.5% at 7,520.25.
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: “The latest employment report is due from the US today, which would be the last before the Federal Reserve meets in mid-December. A weak figure would increase recession risk, which may well keep markets subdued.
“However, at the same time, poor economic expectations reduce the Fed’s need to take heat out of the economy by sharp interest rate increases to tackle inflation, so the net effect of a worse-than-expected number may not be as badly received as feared.
“Expectations are for a 208,000 increase, which, if met, is likely to increase investors’ willingness to take risks, which should in turn boost markets. In the meantime, markets are nervously awaiting the results, with Asian stocks trading lower, and US futures edging downwards too. That’s likely to bleed into the FTSE which could end the week on a low note.”
The payrolls report is due at 1330 GMT, along with the unemployment rate and average earnings.
In equity markets, BP, Harbour Energy and Shell all gushed lower as oil prices eased ahead of Opec+ talks.
On the upside, Primark owner AB Foods was the top performer on the FTSE 100 after upgrades to ‘overweight’ at Morgan Stanley and to ‘neutral’ at Goldman Sachs.
Elsewhere, AJ Bell surged to the top of the FTSE 250 after an upgrade to ‘buy’ at Jefferies.
Low-cost airline Wizz Air flew higher after saying it had seen passenger numbers jump in November. A total of 3.68m passengers were booked onto Wizz Air flights last month, a 70% hike on November 2021.
IT infrastructure provider Softcat also rose after it announced the appointment of Dr Kathryn Mecklenburgh – the current interim chief financial officer of online fashion retailer Asos – as its new CFO.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
|||||||
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Associated British Foods Plc | +3.18% | +50.50 | 1,638.00 |
| 2 |  |
Ocado Group Plc | +2.65% | +17.60 | 682.40 |
| 3 |  |
Rolls-royce Holdings Plc | +2.62% | +2.28 | 89.21 |
| 4 |  |
Smurfit Kappa Group Plc | +1.88% | +56.00 | 3,033.00 |
| 5 |  |
Hargreaves Lansdown Plc | +1.69% | +14.40 | 867.00 |
| 6 |  |
Smith (ds) Plc | +1.65% | +5.00 | 308.80 |
| 7 |  |
St. James’s Place Plc | +1.58% | +18.50 | 1,186.00 |
| 8 |  |
Intertek Group Plc | +1.56% | +64.00 | 4,157.00 |
| 9 |  |
Halma Plc | +1.53% | +34.00 | 2,253.00 |
| 10 |  |
International Consolidated Airlines Group S.a. | +1.44% | +1.92 | 134.88 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
|||||||
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Bp Plc | -2.48% | -12.15 | 477.30 |
| 2 |  |
Carnival Plc | -2.31% | -16.80 | 709.00 |
| 3 |  |
Shell Plc | -1.60% | -38.00 | 2,344.00 |
| 4 |  |
Rio Tinto Plc | -1.59% | -89.00 | 5,509.00 |
| 5 |  |
Hikma Pharmaceuticals Plc | -1.49% | -23.00 | 1,518.50 |
| 6 |  |
Ferguson Plc | -1.28% | -124.00 | 9,532.00 |
| 7 |  |
Glencore Plc | -1.04% | -5.80 | 550.90 |
| 8 |  |
Hsbc Holdings Plc | -0.96% | -4.80 | 493.10 |
| 9 |  |
Fresnillo Plc | -0.95% | -8.60 | 894.60 |
| 10 |  |
Standard Chartered Plc | -0.94% | -5.60 | 589.20 |
US close: Stocks slide as traders book post-Powell profits
Wall Street stocks were mostly lower at the close on Thursday, having surged in the previous session after Federal Reserve chair Jerome Powell suggested a slowdown in the pace of rate hikes was on the horizon.
At the end of trading, the Dow Jones Industrial Average was down 0.56% at 34,395.01 and the S&P 500 was off 0.09% at 4,076.57, while the Nasdaq Composite managed gains of 0.13% to 11,482.45.
The Dow closed 194.76 points lower, taking a bite out of the serious gains it recorded on Wednesday after Powell’s remarks.
“US markets initially opened higher after the latest core PCE inflation numbers showed that inflation continued to moderate in October, while weekly jobless claims fell to 225,000,” said CMC Markets chief market analyst Michael Hewson.
“While these gains appear to have given way to some profit taking, the underlying narrative of a softer inflation and growth outlook appears to be being supported by this afternoon’s US data.
“This combination of softer inflation as core prices rose by 0.2% in October, and 5% year-on-year, shows that the Fed doesn’t need to be any more aggressive than it already has hinted it will be, pushing the dollar lower in the aftermath of Fed chair Powell’s comments yesterday.”
A series of data points were in focus earlier in the session, with market participants digesting news that Americans wage and salary growth had accelerated in October, supporting faster consumption.
According to the Department of Commerce, personal incomes grew at a month-on-month pace of 0.7% in October.
In parallel, personal consumption expenditures were up by 0.8% month-on-month.
Elsewhere, unemployment claims in the US slipped over the latest week.
According to the Department of Labor, in seasonally adjusted terms, initial jobless claims fell by 16,000 to 225,000 over the week ending on 26 November.
Economists at Barclays had forecast an increase to 245,000.
On another note, S&P Global‘s manufacturing PMI was revised slightly higher for November, coming in at 47.7, up from a preliminary reading of 47.6, but still pointed to the first contraction in factory activity since June 2020.
Still on data, the Institute for Supply Management‘s manufacturing purchasing manufacturers index fell into correction territory, declining to 49 in November, down from 50.2 in October and pointing to the first contraction in factory activity since May 2020.
Finally, construction spending in the US decreased 0.30% month-on-month in October, according to the Census Bureau.
In equities, retailers were in focus with Dollar General tumbling 7.56%, after the rural and suburban-focussed discount general store operator posted a miss on third-quarter earnings and cut its full-year forecast, citing higher costs.
Membership warehouse giant Costco was 5.13% weaker after it reported a 5.7% rise in sales for November, compared to growth of 7.7% in October, while America’s largest grocer Kroger was 1.59% lower despite better-than-expected third-quarter earnings and a guidance hike.
On the upside, cinema operator AMC Entertainment jumped 13% after a volatility halt in trading at lunchtime.
AMC had announced plans to make about a fifth of its staff redundant on Tuesday, while chief executive officer Christina Spade was set to depart the firm after less than three months in the post.
Friday newspaper round-up: UK farmers, Total, Royal Mail
UK farmers are receiving negligible profits for many items as food prices rise and supermarkets boast record takings. An average block of cheese or loaf of bread produces less than a penny for farmers, and fruit producers do not fare much better, making just 3p from each kilo of apples. – Guardian
French oil giant TotalEnergies has become the first major North Sea operator to cut investment as a direct result of Rishi Sunak’s windfall tax. The €157bn (£134bn) company is to reduce planned spending on new wells by a quarter next year as the levy forces drilling businesses to reexamine their plans. – Telegraph
Royal Mail has accused striking staff of assault and intimidation against workers crossing the picket line as the dispute between the two sides becomes increasingly bitter. One person was headbutted while some employees were followed and filmed, according to claims made by the company as strikes entered their fifth month. – Telegraph
The former head of the competition regulator is set to take a job at a US consultancy where he will advise on anti-trust issues. Andrea Coscelli, who stepped down as chief executive of the Competition and Markets Authority in July after six years, will set up a new London office as co-head in Europe of Keystone Strategy. – The Times
Britain’s third-biggest cinema chain is ready to swoop on a rival in a “huge consolidation play” ahead of a possible stock market flotation. Tim Richards, who founded Vue International in 1999, confirmed the company was ready to take advantage of any opportunities that presented themselves as speculation mounts that Cineworld could be broken up. – The Times
