FTSE 100 Live: Stocks off highs and Kingfisher hit by profit warning

Proactive Investors -

• FTSE 100 up 7 points at 7,660
• Kingfisher (LON:KGF) slips on profit warning
• Ocado (LON:OCDO) rises on upbeat Ocado Retail trading

Futures point to a firm start in New York

US futures pushed higher ahead of the open on Wall Street, after a sluggish session on Monday, as investors await the Federal Reserve’s interest rate decision and guidance on the future path of monetary policy.

In pre-market trading, futures for the Dow Jones Industrial Average were 0.2% higher, while those for the S&P 500 rose 0.2%, and contracts for the Nasdaq 100 futures were up 0.2%.

Kit Juckes at Societe Generale (EPA:SOGN) said: “The market doesn’t expect a Fed hike but the dot-plot, which currently suggests there will be one more this year before a steady fall, thereafter, could see cuts pushed further out, while the tone of the statement is certain to be hawkish, as the FOMC reinforces the ‘higher for longer’ message.”

Shares of online grocery delivery company Instacart will begin trading, five days after Arm’s blockbuster debut signalled a warming market for new US listings.

The shares will list at $30, the top end of the range it gave investors last week.

Back in London, and at midday the FTSE 100 is holding in positive territory, but it's marginal, now up 7 points at 7,660.

UK set to see highest inflation in G7 - OECD

The UK economy is set to witness the highest inflation rate of the world's G7 advanced economies this year, according to new forecasts.

The Organisation for Economic Co-operation & Development also increased its predicted average UK inflation rate for 2023 compared with its previous estimate.

Economists at the globally recognised organisation also reduced their UK growth forecast slightly for next year amid pressure from higher interest rates.

The OECD expects UK inflation of 7.2% for 2023, increasing its previous forecast of 6.9% from June, this would be the fastest rate across the G7 and third fastest across the G20.

Compared with July, annual inflation fell in fifteen member states, remained stable in one and rose in eleven.

But this still leaves inflation well over the European Central Bank’s inflation target of 2%.

Food, alcohol & tobacco prices were 9.7% higher than a year ago, down from 10.8% in the year to July.

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Services inflation dipped to 5.5% from 5.6%, while industrial goods inflation dropped to 4.7% from 5%

Energy prices continued to pull inflation lower; they were 3.3% lower than a year ago.

Berenberg puts faith in TrustPilot

Shares in Trustpilot Group PLC (LON:TRST) is another winner today with shares soaring 15% after first-half results.

Analysts at Berenberg have increased financial year 2023 adjusted Ebitda forecasts by a whopping 34% after management said this figure would exceed market expectations.

“We think that this upgrade is impressive considering the tough macro backdrop, and it highlights Trustpilot’s resilience and the operational leverage inherent in its business model as it continues to scale,” the broker said.

Berenberg highlighted an acceleration in North American bookings and progress on pricing initiatives.

The broker has a buy rating on the firm with a 160p price target.

It thinks one of Trustpilot’s key competitive advantages is the consumer engagement in the platform, noting total cumulative reviews were up 25% year-on-year, while claimed domains were up 23% and TrustBox impressions were up 15%.

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