London open: Stocks flat as investors eye US bank earnings

by | Jul 14, 2023

(Sharecast News) – London stocks were steady in early trade on Friday as investors eyed earnings across the pond from JPMorgan, Citigroup and Wells Fargo.
At 0825 BST, the FTSE 100 was flat at 7,437.88.

CMC Markets analyst Michael Hewson said: “Today’s only economic numbers of note are US import and export prices for June, which are expected to reinforce the deflationary narrative of this week’s data, with both month on month and annual numbers all expected to come in negative for the second month in succession.

“We’ll also be getting the latest University of Michigan sentiment numbers for July, which have up until recently been market movers when it comes to forward inflation expectations. After this week’s CPI and PPI numbers they probably won’t get the same level of attention.

“On the earnings front the focus will be on the release of the Q2 numbers for JPMorgan Chase, Citigroup and Wells Fargo, and their respective views of the health of the US consumer, and how much they set plan to aside in additional provisions. Their guidance on how they see the US economy in Q3 is also likely to be crucial.”

In equity markets, Ashmore tanked after it posted a $1.8bn decline in assets under management for the quarter to the end of June.

Burberry edged lower even 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.

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

Market Movers

FTSE 100 (UKX) 7,437.88 -0.03%
FTSE 250 (MCX) 18,583.32 -0.26%
techMARK (TASX) 4,378.17 -0.01%

FTSE 100 – Risers

Spirax-Sarco Engineering (SPX) 10,435.00p 2.91%
Vodafone Group (VOD) 72.60p 0.93%
AstraZeneca (AZN) 10,416.00p 0.83%
F&C Investment Trust (FCIT) 867.00p 0.58%
Beazley (BEZ) 578.50p 0.52%
Haleon (HLN) 313.70p 0.38%
Airtel Africa (AAF) 106.30p 0.38%
Smurfit Kappa Group (CDI) (SKG) 2,846.00p 0.35%
Coca-Cola HBC AG (CDI) (CCH) 2,428.00p 0.33%
British American Tobacco (BATS) 2,531.00p 0.32%

FTSE 100 – Fallers

Ocado Group (OCDO) 605.00p -2.42%
Admiral Group (ADM) 2,058.00p -1.53%
Abrdn (ABDN) 220.40p -1.43%
Severn Trent (SVT) 2,429.00p -1.42%
RS Group (RS1) 746.20p -1.14%
Antofagasta (ANTO) 1,531.00p -1.03%
Hargreaves Lansdown (HL.) 825.80p -1.03%
Legal & General Group (LGEN) 225.30p -0.97%
Ashtead Group (AHT) 5,346.00p -0.93%
Rolls-Royce Holdings (RR.) 147.95p -0.90%

FTSE 250 – Risers

Dr. Martens (DOCS) 130.60p 3.65% Group (MONY) 280.00p 1.67%
Inchcape (INCH) 781.00p 1.43%
FirstGroup (FGP) 149.20p 1.36%
Watches of Switzerland Group (WOSG) 719.00p 1.20%
Virgin Money UK (VMUK) 165.25p 1.13%
Babcock International Group (BAB) 299.00p 1.01%
Dunelm Group (DNLM) 1,056.00p 0.96%
Lancashire Holdings Limited (LRE) 620.50p 0.89%
Future (FUTR) 794.00p 0.83%

FTSE 250 – Fallers

Ashmore Group (ASHM) 202.60p -6.55%
CMC Markets (CMCX) 151.00p -4.19%
Liontrust Asset Management (LIO) 690.00p -2.68%
Hammerson (HMSO) 24.56p -2.46%
Vistry Group (VTY) 665.50p -2.28%
IntegraFin Holding (IHP) 240.60p -2.04%
Capita (CPI) 29.02p -1.96%
Victrex plc (VCT) 1,513.00p -1.94%
Carnival (CCL) 1,208.00p -1.91%
Darktrace (DARK) 286.90p -1.85%

Related articles

Latest Articles

Time for Japan to act (II): State Street Global Markets

Time for Japan to act (II): State Street Global Markets

Written by Michael Metcalfe, Head of Macro Strategy, State Street Global Markets  Writing ahead of the September BoJ gathering in 2022, we argued in Time for Japan to act (first edition!) that the authorities should begin monetary tightening both through moving the...

Europe open: Shares slide on hawkish Fed as eyes turn to BoE

Europe open: Shares slide on hawkish Fed as eyes turn to BoE

(Sharecast News) - European stocks opened in the red on Thursday after hawkish comments from the US Federal Reserve on future rate rises dampened sentiment and investors turned their attention to the Bank of England's own policy meeting. The pan-European Stoxx 600...

Capita signs two new contracts worth £565m

Capita signs two new contracts worth £565m

(Sharecast News) - Outsourcing group Capita said it has signed two new contracts with the UK and Northern Ireland governments worth a combined £565m. Four months after Capita was selected as the preferred bidder, the group has now confirmed it has sealed the deal to...

Rise in UK borrowing limits Hunt’s scope for tax cuts

Rise in UK borrowing limits Hunt’s scope for tax cuts

(Sharecast News) - Britain's budget deficit in August was slightly higher than expected, according to official data published on Thursday, meaning Finance Minister Jeremy Hunt will have less scope for tax cuts ahead of the General Election. Public sector net borrowing...

Join our mailing list

Subscribe to our mailing list to receive regular updates!

No Fields Found.