London midday: Stocks muted ahead of US bank results

by | Jul 14, 2023

(Sharecast News) – London stocks were still little changed by midday on Friday as investors eyed earnings across the pond from JPMorgan, Citigroup and Wells Fargo.
The FTSE 100 was up just 0.1% at 7,450.55.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: “The FTSE 100 has started its final trading day of the week on a subdued note, following days of consecutive gains. The UK’s economic data for May has raised hopes we’re on track for a softer landing after the economy didn’t shrink as much as predicted. This has buoyed mining stocks in particular, because economic health helps underpin demand for the precious materials needed for infrastructure and products.

“While the recent gains are welcome, ups and downs can’t be ruled out as policymakers continue to grapple with soaring inflation. The UK’s inflation problem is especially stubborn, meaning the level of heat that may need to come out of the economy could send a chill through markets in the short term. The reasoning behind the slight dip seen today is likely to stem from apprehension around the start of US earnings season, with important economic bellwethers JPMorgan Chase & Co, Wells Fargo and Citigroup all reporting half year numbers today.

“The FTSE’s reliance on financials means trends in the US banks will be seen as a preview for what may to come for the UK market in the coming weeks.”

In equity markets, Spirax-Sarco Engineering was boosted by an upgrade to ‘buy’ from ‘neutral’ at UBS, which cited an attractive entry point.

Liontrust Asset Management slid as it reported net outflows and a drop in assets under management and advice.

Ashmore tanked after it posted a $1.8bn decline in assets under managements for the quarter to the end of June.

Burberry edged lower as the luxury fashion brand reiterated its full-year guidance after a resurgent China helped lift first-quarter sales. Burberry said retail sales in the 13 weeks to 1 July rose 17% to £589m, or by 18% on a like-for-like basis. On a constant exchange rate basis, sales were 19% higher.

Within that, sales in mainland China surged 46%, as the country – one of the world’s biggest markets for luxury goods – continued to rebound from stringent Covid lockdowns last year.

Broadcaster ITV also ticked lower after saying it was no longer looking at buying TV and film production business All3Media, owned by Warner Bros Discovery and Liberty Global. The company said it was “still monitoring” the situation.

Market Movers

FTSE 100 (UKX) 7,450.55 0.14%
FTSE 250 (MCX) 18,557.37 -0.40%
techMARK (TASX) 4,395.22 0.38%

FTSE 100 – Risers

Spirax-Sarco Engineering (SPX) 10,430.00p 2.86%
AstraZeneca (AZN) 10,510.00p 1.74%
Vodafone Group (VOD) 73.04p 1.54%
Auto Trader Group (AUTO) 633.00p 1.18%
British American Tobacco (BATS) 2,550.50p 1.09%
London Stock Exchange Group (LSEG) 8,178.00p 1.06%
Halma (HLMA) 2,225.00p 0.91%
Mondi (MNDI) 1,280.00p 0.87%
Rightmove (RMV) 539.00p 0.86%
B&M European Value Retail S.A. (DI) (BME) 550.20p 0.84%

FTSE 100 – Fallers

Rolls-Royce Holdings (RR.) 146.40p -1.94%
Croda International (CRDA) 5,704.00p -1.66%
Legal & General Group (LGEN) 224.40p -1.36%
Admiral Group (ADM) 2,063.00p -1.29%
M&G (MNG) 191.95p -1.06%
Aviva (AV.) 387.40p -0.97%
Convatec Group (CTEC) 205.20p -0.97%
Fresnillo (FRES) 629.80p -0.94%
International Consolidated Airlines Group SA (CDI) (IAG) 154.70p -0.87%
Johnson Matthey (JMAT) 1,767.00p -0.84%

FTSE 250 – Risers

Dr. Martens (DOCS) 133.10p 5.63%
Crest Nicholson Holdings (CRST) 187.30p 2.57%
Renishaw (RSW) 3,992.00p 2.36%
Babcock International Group (BAB) 300.40p 1.49%
Fidelity Emerging Markets Limited Ptg NPV (FEML) 594.70p 1.42%
Virgin Money UK (VMUK) 165.30p 1.16%
Bridgepoint Group (Reg S) (BPT) 200.00p 1.11%
Safestore Holdings (SAFE) 875.00p 1.10%
Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 277.50p 1.09%
Kainos Group (KNOS) 1,314.00p 1.08%

FTSE 250 – Fallers

Liontrust Asset Management (LIO) 647.00p -8.74%
Ashmore Group (ASHM) 201.20p -7.20%
Ninety One (N91) 168.50p -3.27%
easyJet (EZJ) 481.90p -2.82%
Synthomer (SYNT) 82.75p -2.70%
Helios Towers (HTWS) 88.45p -2.48%
Carnival (CCL) 1,201.00p -2.48%
Sirius Real Estate Ltd. (SRE) 82.75p -2.47%
FDM Group (Holdings) (FDM) 588.00p -2.33%
HGCapital Trust (HGT) 380.50p -2.31%

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