London stocks were still a little weaker by midday on Tuesday following gains in the previous session, as investors mulled the latest house price and retail sales data.
The FTSE 100 was down 0.4% at 7,161.61.
Figures released earlier out of China showed that the unadjusted trade surplus rose to $58.3bn in August from $56.6bn in July, coming in above consensus expectations for a decline to $53.2bn.
Export growth rose to 25.6% year-over-year from 19.3% in July, which was ahead of consensus expectations for a slowdown to 17.3%. Meanwhile, import growth increased to 33.1% y/y in August from 28.1% the month before, versus expectations for a slowdown to 26.9%.
On home shores, a survey released earlier by Halifax showed house prices hit a record high in August, although the pace of annual growth slowed.
The cost of a property rose 7.1% on the year to £262,954 – the highest level on record. However, this was down from 7.6% growth in July and marked the slowest growth in five months. Still, compared to June 2020, when the housing market began to reopen from the first lockdown, prices remain more than £23,600 higher, or +9.9%.
On a monthly basis, house prices were 0.7% higher in August, having risen 0.4% in July.
Halifax managing director Russell Galley, said: “Much of the impact from the stamp duty holiday has now left the market, as highlighted by the drop in industry transaction numbers compared to a year ago. However, while such Government schemes have provided vital stimulus, there have also been other significant drivers of house price inflation.
“We believe structural factors have driven record levels of buyer activity – such as the demand for more space amid greater home working. These trends look set to persist and the price gains made since the start of the pandemic are unlikely to be reversed once the remaining tax break comes to an end later this month.”
Elsewhere, the latest survey from the British Retail Consortium and KPMG showed retail sales growth slowed in August as demand unleashed after the end of lockdowns began to fizzle out. Total sales rose 3% compared with 3.9% a year earlier and less than half the 6.9% rate over the past three months. Compared with August 2019, total sales rose 8.9%.
Helen Dickinson, chief executive of the BRC, said: “As post-lockdown pent-up demand has softened, the growth in retail sales we have seen over the past few months slowed for August. Nonetheless, we still saw growth above pre-pandemic levels, as people returned to stores in greater numbers. With wedding season in full swing and workers gradually returning to the office, formalwear was a strong performer.”
In equity markets, Ocado was the worst performer on the FTSE 100 after UBS cut its price target to 2,100p from 2,300p as it said the company remains “the most credible online grocery solution provider” but challenges are growing.
TP ICAP lost ground after it said annual revenue at constant currency would be broadly unchanged despite falling profit and income in the first half of the year. Pre-tax profit declined to £28m in the six months to the end of June from £78m a year earlier as revenue dropped to £936m from £990m.
Integrafin slumped after founder Michael Howard sold a 1.1% stake in the company.
On the upside, packaging group DS Smith gained after it said trading was continuing to strengthen due to high demand for its boxes despite rising transportation and energy costs.
Vistry rallied as the housebuilder lifted its full-year profit expectations as it posted a rise in first-half profit and revenue, hailing a better-than-expected performance amid “positive” demand.
Marks & Spencer was boosted by an upgrade to ‘buy’ from ‘neutral’ at UBS, which said its analysis suggests further earnings upside.
Market Movers
FTSE 100 (UKX) 7,161.61 -0.36%
FTSE 250 (MCX) 24,195.72 -0.22%
techMARK (TASX) 4,861.37 -0.35%
FTSE 100 – Risers
Smith (DS) (SMDS) 459.70p 2.22%
Burberry Group (BRBY) 1,973.50p 1.99%
Whitbread (WTB) 3,241.00p 1.79%
Phoenix Group Holdings (PHNX) 638.20p 1.30%
Associated British Foods (ABF) 1,983.00p 1.10%
Rightmove (RMV) 739.60p 1.09%
Anglo American (AAL) 3,106.00p 0.89%
Flutter Entertainment (CDI) (FLTR) 14,720.00p 0.82%
BT Group (BT.A) 165.95p 0.70%
Rolls-Royce Holdings (RR.) 112.82p 0.70%
FTSE 100 – Fallers
Ocado Group (OCDO) 1,975.50p -2.06%
Berkeley Group Holdings (The) (BKG) 4,710.50p -1.86%
Antofagasta (ANTO) 1,410.00p -1.71%
Smiths Group (SMIN) 1,432.50p -1.55%
Rentokil Initial (RTO) 585.20p -1.28%
Experian (EXPN) 3,274.00p -1.18%
Spirax-Sarco Engineering (SPX) 16,405.00p -1.17%
HSBC Holdings (HSBA) 383.15p -1.06%
Polymetal International (POLY) 1,453.00p -1.06%
Imperial Brands (IMB) 1,553.00p -1.05%
FTSE 250 – Risers
Vistry Group (VTY) 1,277.50p 4.41%
Marks & Spencer Group (MKS) 188.70p 4.23%
Apax Global Alpha Limited (APAX) 216.50p 2.12%
Morgan Advanced Materials (MGAM) 415.50p 2.09%
TUI AG Reg Shs (DI) (TUI) 308.40p 2.05%
Rotork (ROR) 357.20p 2.00%
SSP Group (SSPG) 265.50p 1.45%
Trainline (TRN) 373.60p 1.36%
Games Workshop Group (GAW) 12,210.00p 1.33%
Capital & Counties Properties (CAPC) 178.30p 1.31%
FTSE 250 – Fallers
TP Icap Group (TCAP) 181.48p -7.91%
IntegraFin Holding (IHP) 567.50p -3.81%
Dechra Pharmaceuticals (DPH) 4,740.00p -3.62%
National Express Group (NEX) 243.20p -2.72%
AJ Bell (AJB) 426.40p -2.11%
Mediclinic International (MDC) 306.80p -2.11%
Synthomer (SYNT) 533.50p -2.02%
TI Fluid Systems (TIFS) 296.00p -1.99%
Petropavlovsk (POG) 20.92p -1.88%
Bytes Technology Group (BYIT) 549.00p -1.79%
