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London open: Stocks dip at the start of the week
Stocks in London were trading slightly lower on Monday following a negative close to trading on Wall Street the week before.
Last Friday, a mixed U.S. non-farm payrolls had seen stocks on the other side of the Pond finish modestly lower.
“In essence there was something for everyone in Friday’s jobs report, weaker jobs growth, the unemployment rate inching lower, and robust wage growth,” said Michael Hewson, chief market analyst at CMC Markets UK.
“Ultimately it spoke to a resilient US economy, as well as a possible Fed pause in September, ahead of this week’s CPI report, although there are some on the FOMC who are still on the ‘more rate hikes to come’ line.”
As at 0846 BST, the FTSE 100 was dipping 23.1 points to 7,541.29, while the second-tier index was off by 38.01 points to 18,896.72.
US equity futures on the other hand were moving up by with those linked to the S&P 500 22.25 points higher to 4,520.25.
Stocks in Asia Pacific traded mixed overnight.
On the previous Friday, the Department of Labor reported a 187,000 increase in hiring (consensus: 200,000), alongside a -49,000 revision to prior months’ data.
Average hourly earnings on the other hand rose by a tenth of a percentage point more than expected or 0.4% month-on-month and the rate of unemployment dipped to 3.5%.
UK house prices fell at a month-on-month pace of 0.3% in July, reaching an average level of £285,044, according to mortgage lender Halifax.
That saw the year-on-year rate of decline ease from 2.6% in June to -2.4%.
In parallel, the Recruitment and Employment Confederation said that its Permanent Staff Placements Index fell from 46.4 in June to 42.4 for July, versus an average reading of 55.3 in 2022.
Commenting on the REC’s survey, Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: “The Report on Jobs survey should leave the MPC feeling more confident that it already has put enough pressure on businesses’ finances and on underlying consumer demand to slow the jobs market and cool wage growth.”
PageGroup announces special payout for shareholders
PageGroup reported a decline in operating profit in its half-year results on Monday, to £63.9m from £115.3m year-on-year. The firm also saw a decrease in its conversion rate to 12.1%, and a reduction in total headcount by 5.0% to 8,572 employees. However, it declared a 4.5% hike in its interim dividend and a special dividend, with its full-year operating profit outlook remaining consistent with prior projections.
Shipping services specialist Clarkson reported a sharp jump in first-half profit, driving by a strong performance in its broking division. The company on Monday said pre-tax profit for the six months to June 30 came in at £52.2m, up from £42m a year earlier. “The broking teams delivered a very strong first half, with standout performances from the tanker, specialised product, gas, offshore and sale and purchase sectors,” Clarkson said in a statement.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Rolls-royce Holdings Plc | +1.74% | +3.60 | 210.10 |
| 2 |  |
Tui Ag | +1.08% | +6.50 | 608.50 |
| 3 |  |
Easyjet Plc | +0.86% | +3.90 | 455.20 |
| 4 |  |
Melrose Industries Plc | +0.49% | +2.60 | 532.00 |
| 5 |  |
3i Group Plc | +0.47% | +9.00 | 1,909.00 |
| 6 |  |
St. James’s Place Plc | +0.35% | +3.20 | 910.40 |
| 7 |  |
Bae Systems Plc | +0.35% | +3.50 | 1,012.50 |
| 8 |  |
Hsbc Holdings Plc | +0.28% | +1.80 | 638.20 |
| 9 |  |
Itv Plc | +0.25% | +0.18 | 73.62 |
| 10 |  |
Hikma Pharmaceuticals Plc | +0.24% | +5.00 | 2,105.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Flutter Entertainment Plc | -2.21% | -335.00 | 14,825.00 |
| 2 |  |
Glencore Plc | -1.86% | -8.60 | 454.60 |
| 3 |  |
Antofagasta Plc | -1.68% | -27.50 | 1,606.00 |
| 4 |  |
Bt Group Plc | -1.57% | -1.80 | 113.10 |
| 5 |  |
Anglo American Plc | -1.56% | -35.00 | 2,207.50 |
| 6 |  |
Taylor Wimpey Plc | -1.43% | -1.70 | 117.30 |
| 7 |  |
Smurfit Kappa Group Plc | -1.42% | -46.00 | 3,196.00 |
| 8 |  |
National Grid Plc | -1.41% | -13.80 | 965.80 |
| 9 |  |
Carnival Plc | -1.38% | -17.00 | 1,211.50 |
| 10 |  |
Ashtead Group Plc | -1.36% | -78.00 | 5,664.00 |
Monday newspaper round-up: MP earnings, BP, NatWest, business confidence, small boats
MPs have been paid £10m from second jobs and freelance work over the past year, largely driven by the size of Boris Johnson’s earnings as well as former Tory ministers taking up a slew of highly paid roles, a Guardian analysis has found. Almost 18 months after the furore around second jobs led to promises of a crackdown, MPs’ earnings from work outside parliament have continued to rise. – Guardian
Ministers have resurrected proposals to send illegal migrants to Britain’s overseas territories as part of alternative options to tackle the small boats crisis. Ascension Island is one of the territories being looked at again as a possibility to take migrants to before a permanent destination for them is found. – The Times
Hiring migrants illegally will be “financially ruinous” for businesses under a new crackdown to stop Britain from being seen as soft on immigration. Fines for bosses who employ migrants in the UK illegally will triple to up to £60,000 per employee, making the practice so economically damaging that it can “put them out of business”. – Telegraph
Business confidence fell last month amid jitters over the slowing UK economy dampening company plans to hire more staff, according to a survey of more than 4,000 firms. Optimism has declined, with higher interest rates and weak global demand contributing to gloom across the services and manufacturing sectors. – Guardian
BP is considering building two huge offshore wind farms in British waters without government subsidy contracts in what would be a first for the sector. Bernard Looney, the energy group’s chief executive, said it could start building the Morgan and Mona projects in the Irish Sea as soon as “late next year” and may not seek contracts from the government to guarantee their revenues. The wind farms together would boast up to 214 turbines about 20 miles off the coasts of north Wales and northwest England and could power 3.4 million homes. – The Times
NatWest has granted itself “sweeping new powers” to limit cash deposits and withdrawals, fuelling warnings that banks are forcing customers towards a “cashless society”. The high-street bank has told current account holders it is bringing in new conditions “giving us the right to set limits on inbound and outbound payments”. – Telegraph
