London open: Markets directionless in wake of central bank decisions
Sharecast
Published Sep 22, 2023 09:48
London open: Markets directionless in wake of central bank decisions
Sharecast - London's FTSE 100 was up 0.1% at 7,689, but was swinging between gains and losses in the opening half an hour's trade.
Richard Hunter, head of markets at Interactive Investor, said "a downbeat mood" is evident across global stock markets at the moment as investors adjust their interest-rate expectations to a "higher-for-longer mantra" in the UK and US.
The Federal Reserve and Bank of England left interest rates unchanged this week, but policymakers from both sides argued that rates are likely to stay elevated for some time yet, and even another rate hike might be possible if incoming economic data suggests it is needed.
In the UK in particular, Hunter said the prospect of a long pause in rates is "putting more pressure on an economy which is only showing tepid growth at the moment". He said: "The uncertainty has been most keenly felt in the FTSE250 index, which is seen as a natural barometer for the domestic economy, and which has fluctuated between positive and negative territory this year, currently standing down by 1.5%."
Friday sees the release of a host of purchasing managers' indices (PMIs) across the Eurozone, UK and US.
Other data revealed that UK retail sales rebounded in August from the rain affected prior month, rising 0.4% on the back of strong food and clothing purchases by consumers. This was an improvement from the 1.1% decline in July but slightly below the 0.5% increase expected by analysts.
Meanwhile, the GfK Consumer Confidence index increased four points to -21, the highest reading since January 2022.
Ocado (LON:OCDO) attempts a rebound
Ocado was among the best performers as it attempted to claw its way back after plummeting 20% yesterday following a broker downgrade by Exane Paribas to 'underperform'. Prior to this week, the stock had more than doubled since June.
JD Sports Fashion was extending gains after impressing the market with its interim results yesterday, with pre-tax profits jumping by 26%.
AstraZeneca (NASDAQ:AZN) was higher after announcing positive results from the TROPION-Breast01 phase three trial on Friday.
Market Movers
FTSE 100 (UKX) 7,689.21 0.14%
FTSE 250 (MCX) 18,612.45 -0.14%
techMARK (TASX) 4,377.22 0.21%
FTSE 100 - Risers
Auto Trader Group (AUTO) 634.80p 2.55%
Rightmove (RMV) 565.40p 1.98%
Ocado Group (OCDO) 659.40p 1.79%
AstraZeneca (AZN) 11,070.00p 1.69%
JD Sports Fashion (JD.) 146.35p 1.00%
Lloyds Banking Group (LON:LLOY) 44.83p 0.91%
Hargreaves Lansdown (LON:HRGV) (HL.) 818.00p 0.79%
Get The App
Diageo (LON:DGE) 3,164.00p 0.78%
Frasers Group (FRAS) 818.50p 0.68%
Admiral Group (LON:ADML) (ADM) 2,460.00p 0.65%
FTSE 100 - Fallers
Phoenix Group Holdings (PHNX) 520.60p -2.87%
CRH (CDI) (LON:CRH) 4,311.00p -1.71%
InterContinental Hotels Group (IHG (LON:IHG)) 6,100.00p -1.10%
Smith (DS) (SMDS) 286.20p -1.07%
Beazley (BEZ) 561.50p -1.06%
Melrose Industries (LON:MRON) (MRO) 467.00p -0.98%
Hikma Pharmaceuticals (LON:HIK) 2,092.00p -0.85%
Diploma (LON:DPLM) 3,058.00p -0.84%
Halma (LON:HLMA) 2,008.00p -0.84%
Unite Group (LON:UTG) 930.00p -0.64%
FTSE 250 - Risers
Ascential (ASCL) 196.90p 3.47%
Moonpig Group (MOON) 171.50p 2.51%
Victrex (LON:VCTX) plc (VCT) 1,456.00p 2.39%
Rathbones Group (RAT) 1,790.00p 2.29%
Ithaca Energy (ITH) 172.70p 2.07%
Watches of Switzerland Group (WOSG) 591.00p 1.63%
Investec (INVP) 478.70p 1.42%
Spirent Communications (LON:SPT) 138.10p 1.25%
Just Group (LON:JUSTJ) (JUST) 73.10p 1.11%
Bank of Georgia Group (LON:BGEO) 3,735.00p 1.08%
FTSE 250 - Fallers
Baltic Classifieds Group (BCG) 193.80p -3.58%
Apax Global Alpha Limited (APAX) 163.00p -2.63%
Volution Group (FAN) 350.00p -2.56%
Ceres Power Holdings (LON:CWR) 339.20p -2.47%
Allianz (ETR:ALVG) Technology Trust (ATT) 258.00p -2.46%
Vesuvius (VSVS) 437.40p -2.41%
TBC Bank Group (TBCG) 2,935.00p -2.00%
Babcock International Group (LON:BAB) 377.40p -1.87%
Lancashire Holdings Limited (LRE) 607.50p -1.78%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 450.50p -1.53%
Read more on Sharecast.com
Written By: Sharecast
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.