London midday: Stocks stay up as China stimulus, Fed hopes boost sentiment

by | Sep 4, 2023

(Sharecast News) – London stocks were still in the black by midday on Monday, with sentiment underpinned by Chinese stimulus measures and expectations the US Federal Reserve will pause on rates this month.
The FTSE 100 was up 0.4% at 7,495.18, with US markets set to be closed for Labor Day.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said investors were assessing “the slightly sunnier prospects for the world economy”.

“Hopes have lifted that the Fed’s efforts in taming unruly inflation in the US are working and not much more interest rate stick will be needed. There is also relief that Chinese efforts in stimulating demand might finally be paying off,” said Streeter.

“Friday’s US jobs numbers showed the tightness in the jobs market was easing, while the United States is still considered resilient enough to avoid a recession. Extra space Given the sheer size of the American economy and its interconnectedness with the rest of the world, its health is a big driver of sentiment. There is an expectation that interest rates will be kept on hold at the upcoming Fed meeting, and now might not budge by the end of the year, offering a bit of relief for companies and consumers who had been bracing for further hikes in borrowing costs.”

In equity markets, miners rallied, with Glencore, Rio Tinto and Anglo American all up, while Asia-focused insurer Prudential also advanced.

Hammerson was boosted by an upgrade to ‘overweight’ from ‘equalweight’ at Morgan Stanley, which said the company has made significant restructuring progress and that it sees value in the shares at current levels.

Engineering company Wood Group ticked up after saying it had struck a $330m services agreement with North Sea oil and gas producer Harbour Energy.

Online trading platform CMC Markets nudged lower as it announced the appointment of Albert Soleiman as chief financial officer, replacing Euan Marshall, who has retired from the board.

Outside the FTSE 350, Ergomed surged after the biopharmaceutical services group agreed to be bought by private equity firm Permira for around £703.1m.

Market Movers

FTSE 100 (UKX) 0.41%
FTSE 250 (MCX) 18,604.00 0.36%
techMARK (TASX) 4,292.70 -0.01%

FTSE 100 – Risers

Entain (ENT) 1,182.50p 2.51%
Glencore (GLEN) 435.80p 2.03%
Burberry Group (BRBY) 2,225.00p 1.97%
Pearson (PSON) 855.00p 1.81%
Melrose Industries (MRO) 524.80p 1.67%
Ocado Group (OCDO) 885.80p 1.63%
International Consolidated Airlines Group SA (CDI) (IAG) 161.90p 1.60%
Compass Group (CPG) 2,021.00p 1.43%
Intertek Group (ITRK) 4,203.00p 1.42%
Rolls-Royce Holdings (RR.) 222.00p 1.32%

FTSE 100 – Fallers

Johnson Matthey (JMAT) 1,764.00p -1.48%
Fresnillo (FRES) 562.00p -1.26%
Endeavour Mining (EDV) 1,604.00p -0.99%
Vodafone Group (VOD) 72.90p -0.95%
Admiral Group (ADM) 2,408.00p -0.91%
B&M European Value Retail S.A. (DI) (BME) 569.40p -0.77%
CRH (CDI) (CRH) 4,526.00p -0.53%
Coca-Cola HBC AG (CDI) (CCH) 2,242.00p -0.49%
Smurfit Kappa Group (CDI) (SKG) 3,276.00p -0.49%
Standard Chartered (STAN) 716.20p -0.47%

FTSE 250 – Risers

Ferrexpo (FXPO) 82.05p 5.39%
TUI AG Reg Shs (DI) (TUI) 475.20p 4.81%
Watches of Switzerland Group (WOSG) 610.00p 3.48%
Trainline (TRN) 237.20p 3.04%
Hammerson (HMSO) 24.64p 2.92%
easyJet (EZJ) 436.20p 2.64%
Capita (CPI) 17.98p 2.63%
Wizz Air Holdings (WIZZ) 2,255.00p 2.50%
Future (FUTR) 802.50p 2.49%
Vanquis Banking Group 20 (VANQ) 108.80p 2.26%

FTSE 250 – Fallers

GCP Infrastructure Investments Ltd (GCP) 73.50p -2.39%
Wetherspoon (J.D.) (JDW) 702.00p -2.30%
CLS Holdings (CLI) 124.80p -2.19%
Diversified Energy Company (DEC) 86.70p -1.59%
Ashmore Group (ASHM) 191.10p -1.55%
Direct Line Insurance Group (DLG) 156.35p -1.54%
Syncona Limited NPV (SYNC) 129.00p -1.53%
Herald Investment Trust (HRI) 1,744.00p -1.47%
Ninety One (N91) 168.80p -1.17%
TP Icap Group (TCAP) 163.80p -1.09%

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