London close: Stocks slip as longer-term Gilt yields grind back higher

by | Aug 1, 2023

(Sharecast News) – London stocks finished in the red on Tuesday as investors mulled downbeat manufacturing data and results from the likes of BP, HSBC and Diageo, together with a rise in longer-term Gilt yields.
The FTSE 100 was down 0.43% at 7,665.27, alongside a 0.41% decline on the second-tier index to 19,065.66.

In parallel, the yield on the benchmark 10-year Gilt was nine basis points higher at 4.40%.

“Hopes of a sustained rally in the FTSE 100 have been dashed too, though at least BP hasn’t been the drag on performance in the manner of Shell last week,” said IG chief market analyst Chris Beauchamp.

“But if the weakness in German data begins to spread then we could see August live up to its reputation as an unpropitious month for stocks, even if equities do continue to gain into the end of the year.”

Earlier in the session, S&P Global confirmed a reading published a fortnight before showing that its German factory Purchasing Managers’ Index had fallen from a reading of 40.6 for June to deeply in contractionary territory in July at 38.8.

On home shores, a survey out earlier showed that the downturn in the manufacturing sector intensified last month.

The S&P Global/CIPS manufacturing purchasing managers’ index fell to 45.3 in July from 46.5 in June, remining below the 50.0 mark that separates contraction from expansion.

This marked lowest reading in the year so far and joint-weakest since May 2020. Still, it was a touch higher than consensus and the flash estimate of 45.0.

Investors were also digesting the latest data from Nationwide, which showed that annual house prices suffered their worst fall last month since July 2009. Prices were down 3.8% on the year following a 3.5% decline in June and left standing at £260,828.

In equity markets, Man Group and gold and silver miner Fresnillo both slumped after first-half results.

Bakery chain Greggs was also down despite backing its full-year guidance and posting a jump in first-half profit and sales.

Aston Martin dipped after it raised £216m in a share placing to cut debt.

Weir Group advanced after as its first-half results were ahead of expectations and it upgraded full-year profit and revenue guidance.

HSBC rallied after the bank posted a rise in first-half profits as it benefited from rising interest rates, and announced a share buyback of up to $2bn.

Drinks company Diageo ticked up as full-year results beat expectations.

Elsewhere, BP managed solid gains despite reporting a 78% drop in its second-quarter attributable profits to $1.79bn.

4imprint surged after a trading statement, while Domino’s and Travis Perkins rose after results.

Market Movers

FTSE 100 (UKX) 7,666.27 -0.43%
FTSE 250 (MCX) 19,065.66 -0.41%
techMARK (TASX) 4,420.49 -0.43%

FTSE 100 – Risers

Weir Group (WEIR) 1,874.50p 2.15%
Rightmove (RMV) 580.60p 1.79%
Centrica (CNA) 139.95p 1.38%
HSBC Holdings (HSBA) 654.90p 1.33%
Auto Trader Group (AUTO) 651.40p 0.84%
Pershing Square Holdings Ltd NPV (PSH) 3,016.00p 0.60%
Sainsbury (J) (SBRY) 279.00p 0.58%
Barratt Developments (BDEV) 459.30p 0.57%
Compass Group (CPG) 2,034.00p 0.35%
Tesco (TSCO) 258.80p 0.31%

FTSE 100 – Fallers

Beazley (BEZ) 520.50p -5.10%
Fresnillo (FRES) 591.00p -4.40%
JD Sports Fashion (JD.) 153.25p -2.82%
Endeavour Mining (EDV) 1,830.00p -2.66%
NATWEST GROUP (NWG) 239.20p -2.50%
Barclays (BARC) 151.42p -2.28%
Pearson (PSON) 845.00p -2.27%
St James’s Place (STJ) 919.20p -2.21%
Anglo American (AAL) 2,342.50p -2.15%
Prudential (PRU) 1,059.50p -2.12%

FTSE 250 – Risers

4Imprint Group (FOUR) 5,150.00p 16.12%
Domino’s Pizza Group (DOM) 392.80p 13.07%
Chemring Group (CHG) 305.00p 7.58%
Coats Group (COA) 73.80p 5.43%
NCC Group (NCC) 100.40p 4.04%
Digital 9 Infrastructure NPV (DGI9) 57.10p 3.44%
Barr (A.G.) (BAG) 483.00p 2.44%
Wood Group (John) (WG.) 151.20p 2.30%
C&C Group (CDI) (CCR) 141.00p 2.17%
Bodycote (BOY) 706.50p 2.10%

FTSE 250 – Fallers

Greggs (GRG) 2,550.00p -7.68%
Dr. Martens (DOCS) 144.20p -5.50%
Man Group (EMG) 225.70p -5.49%
Watches of Switzerland Group (WOSG) 721.00p -4.31%
Ithaca Energy (ITH) 168.80p -4.31%
Carnival (CCL) 1,262.50p -4.21%
Helios Towers (HTWS) 87.00p -3.81%
Intermediate Capital Group (ICP) 1,352.00p -3.77%
Keller Group (KLR) 824.00p -3.74%
SSP Group (SSPG) 242.80p -3.50%

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