Stocks yielded early gains as the opening bell on Wall Street approached and ahead of the quarterly expiry of financial derivatives contracts on US indices and individual stocks.
The event, known in financial circles as ‘quadruple witching’, was often preceded by market volatility in the days running up to it, and this time around would take place amid increased uncertainty.
Against that backdrop, as of 1200 BST, the FTSE 100 was falling 0.23% or 16.24 points to 7,011.58, although the second-tier index remained 0.43% higher to 23,734.99.
Commenting on the mood in markets, Michael Hewson, chief market analyst at CMC Markets UK, told clients: “While European markets managed to post modest gains yesterday it is becoming increasingly apparent that there is little in the way of direction for equity markets at the moment.
“[…] That’s not to say there isn’t anything to be concerned about, there are a number of things. Rising prices, debates about whether inflation is transitory, or persistent, whether the global economy is slowing, and whether central banks can look at tapering their bond buying programs, without sending ripples through the market.”
Earlier, the Office for National Statistics released data revealing a fourth consecutive monthly drop in UK retail sales – their worst stretch since at least 1996.
Combined with a host of other expected headwinds for the UK consumer, those numbers “should” make investors doubt the Monetary Policy Committee’s ability to hike Bank Rate as soon as February, Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said.
Still ahead, the market spotlight was set to remain on the consumer, but on the other side of the Pond this time, as the University of Michigan published the preliminary results of its consumer confidence survey for September.
On the broker front, analysts at Berenberg upgraded their recommendation for shares of InterContinental Hotels from ‘hold’ to ‘buy’ and Barclays’ theirs for StanChart from ‘underweight’ to ‘equalweight’.
Hurricane Energy stirs up a buying storm
Shares of Hurricane Energy jumped after the oil exploration said in an operational update that, as of 15 September, the Lancaster field was producing at a rate of nearly 10,800 barrels per day from the P6 well alone. It also reported a jump in its net free cash position from $122m as of 31 July to $144m by 31 August.
Martin Sorrell’s digital-only advertising group S4 Capital said it was buying technology services company Zemoga for an undisclosed sum. Sorrell, who founded ad giant WPP, said the move was a “significant first step towards building a third practice area around technology services”. Zemoga provides product design, engineering and delivery services to clients including Bridgestone, Sony, Roku and Morningstar, he added.
Virgin Wines UK has entered into a marketing partnership with Moonpig Group to launch a range of products with the UK’s leading online greeting card and gifting platform. The UK’s largest direct-to-consumer online wine retailer said it woud launch a range of 32 different wines as part of the first of a kind partnership with Moonpig.
Market Movers
FTSE 100 (UKX) 7,005.33 -0.32%
FTSE 250 (MCX) 23,734.92 0.43%
techMARK (TASX) 4,681.58 0.42%
FTSE 100 – Risers
International Consolidated Airlines Group SA (CDI) (IAG) 149.60p 5.01%
Antofagasta (ANTO) 1,485.00p 3.59%
Informa (INF) 539.00p 2.32%
Fresnillo (FRES) 834.20p 2.18%
Rolls-Royce Holdings (RR.) 111.36p 2.11%
Next (NXT) 8,150.00p 1.85%
InterContinental Hotels Group (IHG) 4,630.00p 1.54%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,432.00p 1.36%
Entain (ENT) 1,953.50p 1.30%
BAE Systems (BA.) 561.00p 1.23%
FTSE 100 – Fallers
Anglo American (AAL) 2,692.50p -4.47%
Rio Tinto (RIO) 4,864.00p -2.91%
BHP Group (BHP) 1,911.00p -2.91%
Ashtead Group (AHT) 5,990.00p -2.79%
Mondi (MNDI) 1,935.50p -1.80%
Taylor Wimpey (TW.) 168.35p -1.41%
CRH (CDI) (CRH) 3,696.00p -1.39%
SSE (SSE) 1,653.00p -1.31%
London Stock Exchange Group (LSEG) 8,034.00p -1.30%
Weir Group (WEIR) 1,763.50p -1.20%
FTSE 250 – Risers
Restaurant Group (RTN) 110.80p 5.12%
Wickes Group (WIX) 248.80p 4.89%
Indivior (INDV) 205.60p 4.31%
SSP Group (SSPG) 265.90p 4.27%
C&C Group (CDI) (CCR) 241.20p 3.97%
TUI AG Reg Shs (DI) (TUI) 296.40p 3.78%
Micro Focus International (MCRO) 389.60p 3.01%
Dechra Pharmaceuticals (DPH) 5,125.00p 2.99%
Wetherspoon (J.D.) (JDW) 1,071.00p 2.88%
Playtech (PTEC) 431.60p 2.52%
FTSE 250 – Fallers
Oxford Biomedica (OXB) 1,482.00p -3.77%
Harbour Energy (HBR) 363.40p -3.14%
Trustpilot Group (TRST) 379.20p -2.72%
BlackRock World Mining Trust (BRWM) 520.00p -2.62%
Liontrust Asset Management (LIO) 2,405.00p -2.04%
3i Infrastructure (3IN) 311.50p -1.74%
Dr. Martens (DOCS) 396.40p -1.64%
Currys (CURY) 133.10p -1.63%
Rank Group (RNK) 171.20p -1.61%
Apax Global Alpha Limited (APAX) 220.50p -1.56%
