- FTSE 100 closes up 136 points at 7,628
- Food price inflation cools again
- Wall Street opens higher
4:40pm: Stocks end buoyant day firmly in the green
The FTSE 100 ended sharply higher on hopes that interest rates could have peaked and following reports China could be about to announce a further economic stimulus.
At the close, London's lead index was up 136.00 points, 1.8%, at 7,628.21.
Axel Rudolph at online trading platform IG said: "Dovish Fed comments that the recent run-up in yields might reduce the need for further rate hikes lowered expectations of another rate rise and led to a stock market rally."
Gains were spread across all sectors with Ocado, Anglo American and Flutter Entertainment the top three risers.
3:50pm: Analysts take heart from “no surprises” YouGov update
Analysts took heart from an in line set of results from YouGov which sent shares more than 10% to the good.
Peel Hunt analyst Jessica Pok said the "no surprises" results would provide "relief" to the market, especially as shares in the London-based research and data analytics are down 30% in the last three months alone.
Fiona Orford-Williams at research house Edison noted good progress from YouGov's Data Products, such as BrandIndex, which delivered underlying revenue growth of 10%. She also noted a "particularly strong showing" from Custom Research, where underlying revenue climbed 17% year-on-year.
"This area is not as labour-intensive as the name might imply, being a combination of long-term trackers and ad-hoc projects. Data Services, such as Omnibus, had a tougher time, retrenching 8% underlying," she said.
"Interestingly, the statement indicates signs of improvement in business from the tech sector, which has been an issue across the marketing sector for the last few quarters."
Analysts at Berenberg think the recent weakness in the share price is a “buying opportunity.”
“YouGov is benefiting from structurally growing end-markets, and it continues to take share and deliver above-market growth," Berenberg said.
Shares have roaed 22% higher.
3:15pm: Gas prices at four month high
UK gas prices have jumped to their highest level in four months after the closure of one of Israel’s largest fields in the Mediterranean Sea.
Wholesale prices have jumped by as much as 10% today to more than 120p per therm, having traded as low as 88p on Friday.
It is the highest point since June and if it holds, would be the most costly closing price since April.
BREAKING:
Apart from the gas pipeline "balticconnector", an undersea communications cable between Finland and Estonia has also been damaged.
Finnish government press conference to start at 5:30 pm Finnish time.
Finland is a NATO member state pic.twitter.com/6LCbh8WZ81
— Visegrád 24 (@visegrad24) October 10, 2023
Prices gained 15% on Monday after Israel announced it is suspending production at its Tamar gas field, which is within range of Hamas rockets in Gaza.
Adding to the leap higher today is a report that investigators are assuming a gas leak in the undersea pipeline between Finland and Estonia was sabotage.
2:47pm: FTSE holds gains as Wall Street opens higher
US markets have opened higher helping the FTSE 10 stick close to its best levels for the day.
Shortly after the opening bell, the Dow Jones Industrial Average was up 70.67 points, 0.2%, at 33,675.32, the S&P 500 was up 8.84 points, 0.2%, at 4,344.50 and the Nasdaq Composite was up 16.52 points, 0.1%, at 13,500.76.
PepsiCo (NASDAQ:PEP) kicked off the big-cap reporting style in strong fashion delivering above forecast earnings and revenbue, sending shares 1.1% higher.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown said: "It’s been another solid quarter for Pepsi, which saw its top line bubble up at a time when consumers are really feeling the pinch. The group’s been leaving itself room to hit, and even surpass, its own guidance this year."
Elsewhere, there news that small business confidence has dipped to a four-month low.
Sentiment among small business owners was hit by continued concerns over inflation and persistent worker shortages, according to the National Federation of Independent Business (NFIB).
NFIB’s small business optimism Index fell by half a point in September to 90.8, which is the 21st month running below the 49-year average of 98.
Other stocks on the move included Electronic Arts, up 1.2%, after Bank of America upgraded to buy with a $150 price target.
2:07pm: Amazon faces threat of Black Friday strike
Amazon is facing the threat of its biggest strike action ever on its busy Black Friday trading day.
The GMB union have just announced four more days of industrrial action at the Amazon warehouse in Coventry, with workers planning to walk out on 7, 8 and 9 November, and on 24 November – which is Black Friday.
The strikes are the latest in a series of industrial action, in a dispute over pay and union rights.
#Breaking Workers at Amazon’s site in Coventry will strike for four days next month, including Black Friday on November 24, in a dispute over pay, the GMB union announced pic.twitter.com/PszWSmaL1T
— PA Media (@PA) October 10, 2023
Rachel Fagan, GMB organiser, said: "These strike dates will bring total days lost to industrial action to nearly 30."
“This is an unprecedented and historic moment with low paid workers taking on one of the world’s most powerful corporations."
1:30pm: Here are some of today's risers
Shares in YouGov PLC (AIM:YOU) accelerated over 20% higher on Tuesday as the research and data analytics group reported strong full-year results in spite of a challenging backdrop.
Adjusted pre-tax profit rose by 63% to £56.4 million during the year to July, the group reported on Tuesday, while per-share earnings jumped even further, by 71% to 40.5p.
Shares in X-ray screening systems supplier Image Scan Holdings PLC (AIM:IGE) rose 30% after a promising pre-close trading update for the fiscal year ending 30 September 2023.
The company expects a 50% revenue increase to £3 million and a pre-tax profit of £0.1 million, overturning last year's £0.35 million loss.
Shares in Capital Metals PLC (AIM:CMET) jumped 65% after Sri Lanka’s environment minister was given the order of the boot.
The group said Naseer Ahamad had been a significant impediment to progress at its minerals sands project, around 220km east of the capital, Colombo.
A strong Treatt PLC trading update saw the shares whipped up nearly 9% higher to, having sunk to a three-and-a-half-year low at the start of the week.
The maker of natural extracts and ingredients for the beverage, flavour and fragrance industries said its performance proved resilient in the face of customer destocking, with full-year sales up around 5% to £147 million.
1:05pm: Office space vacancies at 20-year high
Demand for office space has slumped further, with vacancies reaching at least 20-year highs in the US and London, as people continue to work from home despite companies’ attempts to get staff back in the office after the Covid-19 pandemic.
Vacancy rates have risen to fresh highs and investment in offices fell sharply in the third quarter this year compared with the same period in 2022 in London, New York and San Francisco, according to preliminary data from CoStar, a research company focused on commercial real estate, reported by the Financial Times.
The sustained slowdown in the office market comes as higher borrowing costs and low occupancy are compressing building valuations while companies including Amazon, BlackRock, Lloyds Banking Group and JPMorgan have in recent months introduced staff attendance mandates on given days.
“The big ticket transactions [are] really not happening at the moment,” said Mark Stansfield, director of UK analytics at CoStar. “There is still a divide of expectations between sellers and buyers.”
12:34pm: BoE warns falling growth could hit asset values
The Bank of England is worried that some risky assets appear overvalued, and could tumble in value if economic growth stumbles.
The BoE's Financial Policy Committee has warned that more persistent inflation, higher interest rates and geopolitical tensions mean the current risk outlook is challenging.
If inflation proves more persistent, interest rates may need to rise further, it warns, which would weigh on growth.
In its latest Financial Stability report, the FPC said: "Given the impact of higher interest rates, and uncertainties associated with inflation and growth, some risky asset valuations appear stretched."
"Stretched risky asset valuations increase the likelihood of a greater correction in prices if downside risks to growth materialise," it added, which would "have a direct impact on the cost and availability of finance for corporates globally, and would affect riskier borrowers in particular."
Looking globally, the FPC warns that higher interest rates are making it harder for households and businesses in advanced economies to service and refinance their debts.
It also singles out China’s property sector, noting significant downside risks remain.
12:03pm: Bright start expected on Wall Street, PepsiCo (NASDAQ:PEP) up on results
Over to the US and it looks like a bright start in the US, after the dovish Fed comments, falling bond yields and hopes for a stimulus in China - all of which we have covered here.
In pre-market trading, futures for the Dow Jones Industrial Average were 0.2% higher, while those for the S&P 500 rose 0.2%, and contracts for the Nasdaq 100 futures were up 0.3%.
Shares in PepsiCo (NASDAQ:PEP) (PepsiCo (NASDAQ:PEP)) rose 2.7% in pre-market deals after it reported quarterly earnings and revenue that beat analysts’ expectations and raised its outlook for its full-year earnings.
The soft drinks maker reported net income rose to $3.09 billion, or $2.24 a share, up from $2.70 billion, or $1.95 a share, in the same period a year ago.
Excluding nonrecurring items, core earnings per share of $2.25 were ahead of the FactSet consensus of $2.15, while revenue grew to $23.45 billion from $21.97 billion, also ahead of the FactSet consensus of $23.41 billion.
"For fiscal year 2024, we expect to deliver results towards the upper end of our long-term target ranges for both organic revenue and core constant currency EPS growth," the company said.
11:36am: Relx and Informa - two winners in a data-driven, AI world
Another interesting bit of broker research reaches the desk from Morgan Stanley (NYSE:MS) which thinks Relx PLC, Wolters Kluwer and Informa PLC (LSE:INF) are going to be the winners in a data-driven/AI world.
The investment bank said they were “three high-quality businesses forming the foundations of the data economy offering structural mid-single-digit % growth, high and durable margins, high cash conversion, and with strong market positions.”
For Relx and Wolters Kluwer, managing data and technology are core competencies and MS sees clear opportunities stemming from the latest AI wave, generative AI.
Relx and Wolters combine proprietary data with large, multi-sourced datasets, and add further value through opinionated content, analytics, or workflow tools, the bank explained.
“Together, this creates significant barriers to entry and we see new AI use cases as strengthening their moats over time,” it said.
As the number one events organiser globally, Informa do not have as clear genAI revenue opportunities, but their digital transformation holds promise, MS said.
Their event audiences are inherently engaged and a significant source of first-party data, it noted.
For Relx, the bank has lifted its legal segment organic growth forecasts to around 7% across 2024-26, above consensus which is at around 5%.
At Wolters, given around 45% of revenue is generated from software, forecasts have been increased for adjusted Ebit to around 4/5% above consensus.
The broker also sees scope for broader cost savings across the three companies from generative AI.
At Informa, the bank does “not model any specific uplifts,” given the nascent stage of their digital strategy build-out, “but if successful we see potential for a pathway to unlocking our 1,000p bull case over time.”
The bank rates Relx and Wolters ‘overweight’ and Informa ‘equal-weight.’
Shares in Relx are up 1.9%, Wolters is up 1.9% and Informa is up 2.2%.
11:13am: Risk-on after dovish Fed comments
As we noted earlier, part of the arise in equities today is being driven by 'dovisih' comments from a number of Federal Reserve officials on interest rates.
Craig Erlam, senior market analyst, at Oanda explains that it "would appear the recent surge in bond yields hasn't gone unnoticed at the central bank, to the extent that Fed officials are coming across as less hawkish in their views."
"Higher yields have been cited by various policymakers in what appears to be a sign that they are a little uneasy about how much influence recent commentary has had," he pointed out.
"While the Fed has previously signalled that another rate hike is likely in the tightening cycle, the central bank is ultimately data-dependent and won't want markets getting too carried away. It's a tough balancing act and inflation data will be released on Thursday which should provide further clarity again after Friday's mixed jobs report," he added.
But he cautioned "it is perhaps a little surprising that markets have bounced back as quickly and strongly as they have given the clear risk aversion we saw at the start of the week."
"Hamas attacks in Israel created uncertainty around the Middle East and investors will no doubt continue to monitor the situation very closely."
10:58am: Lloyds could surprise with third quarter buyback
Lloyds Banking Group PLC (LSE:LLOY) is one of the many stocks enjoying a good day, up 3.1%.
Analysts at Jefferies think the lender could surprise the market with a £500 million share buy-back with its third quarter results on October - breaking from its pattern of distributing excess capital at full-year results.
This may help catalyse the shares in an absence of near-term upgrades, it said.
“With Q2 excess capital of £1.5 billion, set to rise a further c.£0.6 billion by Q3 23, we estimate a Q3 buyback of £0.5 billion, with a £2.5 billion buyback announced at 4Q,” the broker said.
Jefferies noted these buy-backs bring pro-forma 2023 estimated CET1 to 13.5%, rising to 14.4% by 2025 as capital generation is great than distributions.
The broker has also adjusted forecasts to reflect reduced expectations for net interest income.
Its 2023-25 revenue estimates fall 1-3%, driving 2023 underlying pre-tax profit down 7%, and 2024-25 down 3-4%.
The 2023 return on total capital employed forecast is 16.3%, ahead of the 14.9% consensus, rising to 17.8% in 2025 (consensus 14.4%).
Jefferies keeps a buy on Lloyds with a 80p price target, increased from 77p - nearly double today’s 43.32p share price.
10:24am: UK to be slowest-growing G7 economy next year - IMF
The UK is forecast to record the weakest economic growth across the G7 group of advanced economies next year, according to the International Monetary Fund.
It came as bosses at the finance body said the global economy is "limping along" amid pressure from persistent inflation and higher borrowing costs in its latest economic outlook.
The IMF, in a new assessment of the UK economy, marginally upgraded its growth prediction for UK gross domestic product this year to 0.5%, from 0.4%.
IMF Growth Forecast: 2024
USA????????: 1.5%
Germany????????: 0.9%
France????????: 1.3%
Italy????????: 0.7%
Spain????????: 1.7%
Japan????????: 1.0%
Canada????????: 1.6%
China????????: 4.2%
India????????: 6.3%
Russia????????: 1.1%
Brazil????????: 1.5%
Mexico????????: 2.1%
Morocco????????: 3.6%
KSA????????: 4.0%
Nigeria????????: 3.1%
RSA????????: 1.8%https://t.co/pzLIvHg5Ln pic.twitter.com/gCpVdsy8g5
— IMF (@IMFNews) October 10, 2023
It would be the second weakest performance across the G7, behind Germany, according to the United Nations' financial agency.
The IMF however downgraded its forecasts for the UK's economic growth next year.
It had previously pointed towards 1% growth for 2024 but on Tuesday reduced this prediction to 0.6% amid pressure from higher interest rates.
This would represent the worst growth rate across all of the G7, while Canada is expected to have the strongest growth, at 1.6%.
Global GDP is expected to rise by 3% this year and 2.9% next year, according to the latest forecast.
The IMF also predicted that the UK would see consumer price index inflation 7.7% for the current year, with this set to slow more sharply to 3.7% next year.
10:05am: Credit card spending improves in September - Barclays
While the warm weather may have sales in shops, it has boosted credit card spending, according to Barclays.
Consumer card spending grew 4.2% year-on-year in September, up from August’s growth of 2.8%, as the late summer sun boosted in-store spending.
The Rugby World Cup drove spending at pubs and bars (up 6.1%), yet growth slowed for restaurants (-10.8%) and takeaways (6.5%) as Brits began saving money for the festive period.
The report from Barclays showed spending on essential items increased, driven by grocery shopping and rising fuel prices.
Shoppers reported increased signs of “shrinkflation” with two thirds of shoppers believing supermarkets should put warning labels on products that cost the same or more, but have reduced in size.
Consumers also noted “surge pricing” – almost half of shoppers noticed companies (such as hotels, airlines and pub chains) raising prices during peak times.
9:44am: China mulls new stimulus - Bloomberg
Adding to the more positive news comes reports on Bloomberg that China is considering raising its budget deficit for 2023 as the government prepares to unleash a new round of stimulus to help the economy meet the government’s annual growth target.
Bloomberg, citing people familiar with the matter, said policymakers are weighing the issuance of at least 1 trillion yuan ($137 billion) of additional sovereign debt for spending on infrastructure such as water conservancy projects.
NEW: China considers new stimulus by selling at least $137 billion in sovereign bonds and allowing a higher budget deficit to meet its growth targethttps://t.co/j6b7t2k362
— Bloomberg (@business) October 10, 2023
That could raise this year’s budget deficit to well above the 3% cap set in March, one of the people said.
An announcement may come as early as this month, another person said, though deliberations are ongoing and the government’s plans could change.
The news has pushed the FTSE's gains into three figures, up 109 points to 7,601.
9:14am: Warm weather could lead to retail mark-downs
Clive Black at Shore Capital thinks should current hot English temperatures persist, then weather may feature in the characterising the autumn trading updates, especially apparel & footwear.
He pointed out whilst the spring/summer 2023 season was outstandingly good for most British retailers, the autumn weather, “Scotland aside where it has been bucketing, has not really been conducive to the purchase of outerwear and bigger ticket lines.”
Black explained seasonably warm weather also tends to keep folks away from retail parks, noting the BRC report speak to weak recent bigger ticket trade in furniture and electrical items.
“There remain many days for these Isles to turn cooler, wetter, and windier this autumn, but if the present high temperatures persist, then seasonal full-price sales may ease, leading to a bit of a markdown/sale event,” he suggested.
Black still thinks it will be a strong Christmas despite a strong 2022 Christmas.
But he added October “feels a bit quiet, awful global events will not aid the mood music for sure, but more significantly may be households saving up for the Christmas celebrations where we foresee good demand for consumables, with more careful shopping for gifting continuing.”
8:50am: US bond yields in biggest fall since March
Giving equities a further boost is news that US bond yields have fallen by the most since March, as investors move to safe haven assets given the Middle East conflict and after the dovish comments on interest rates by two Federal Reserve officials which we mentioned those earlier.
The yield on benchmark 10-year US Treasuries fell 18 basis points to 4.62% - the most since March - while the two-year bond yield dropped by its most since the end of August.
US bond markets had been closed on Monday for the Columbus Day holiday, meaning that Asian trading overnight was the first chance investors had to put their capital into American debt after the outbreak of the Gaza conflict.
???? ???? BREAKING: Treasuries are having their best day since March, with 10-year yields down as much as 18 bps after dovish comments from Fed officials and as conflict in the Middle East fueled a flight to safety. Traders are betting the Fed’s most aggressive tightening cycle since… pic.twitter.com/FbII3HkuB4
— Algomasters.com (@BluePhoenixFin) October 10, 2023
The FTSE continues to push higher, now up 88 points, at 7,580.
8:29am: Food price inflation cools, price of some staples falls
Some more on those food price inflation figures from Kantar - with inflation down for the seventh month in a row to 11% for the four weeks to 1 October 2023, the lowest rate since July 2022.
Tom Steel, strategic insight director at Kantar, comments: “Grocery price inflation is still very high, but shoppers will be relieved to see the rate continuing to fall.”
Grocery Inflation Cools Again As Shoppers Seek Value During Sunny September - Kantarhttps://t.co/zPiFgGf3OM
— LiveSquawk (@LiveSquawk) October 10, 2023
“For the first time since last year, the prices of some staple foods are now dropping and that’s helping to bring down the wider inflation rate.”
Kantar reported that the prices of some staple foods are now dropping, for the first time since last year, with the average price of a pack of butter now 16p less than a year ago.
A jump in the amount of money spent on offers is also helping to offset the impact of inflation, Kantar said.
Steel pointed out spending on promotions made up over a quarter of all sales in the latest 12 week period at 26.5%, the highest level since June 2022.
The survey said Tesco had done well. The UK’s biggest supermarket saw sales rise by 9.2% over the latest 12 weeks, with its market share edging up by 0.4 percentage points to 27.4%.
Steel said the warm weather also saw volume sales of ice cream, burgers and dips shooting up by 27%, 19% and 10% respectively.
Lidl was the fastest growing retailer this month with sales up 15.2%, the first time that Lidl has led the pack since April 2023, taking its market share to 7.6%, up 0.5 percentage points year on year.
Fellow discounter Aldi’s sales were up by 14.9%, with its total share of the market now at 9.9%, up by 0.6 percentage points compared with a year ago.
Sainsbury’s share grew to 14.8% as its sales increased by 9.1% compared with last year, while Asda and Morrisons now hold 13.7% and 8.6% of the market.
Amid reports that Waitrose could become the latest retailer to partner with Amazon for grocery delivery services, total online trips increased year-on-year for the first time this month since December 2021 by 3.1%.
Waitrose has a 4.6% share with sales growth at 5.3% for the latest period.
Co-op’s market share sits at 6.1% with sales up 3.3%. Iceland’s sales rose by 2.8%, and Ocado grew sales by 9.6% to take 1.7% of the market.
8:15am: FTSE powers ahead, food price inflation cools
The FTSE 100 opened sharply higher boosted by gains in the US and news that food price inflation has fallen for the seventh month in a row.
At 8:15am, London’s blue-chip index was up 64.46 points, 0.9%, at 7,556.67 while the FTSE 250 jumped 171.81 points, 1.0%, at 17,743.87.
Figures from market research firm Kantar showed grocery price inflation cooled to 11% for the four weeks to 1 October 2023, the lowest rate since July 2022.
Tom Steel, strategic insight director at Kantar, said while the number is “still very high,” shoppers “will be relieved to see the rate continuing to fall.”
“For the first time since last year, the prices of some staple foods are now dropping and that’s helping to bring down the wider inflation rate,” he said.
Not such good news on the high street where the warm weather has taken the heat out of retail sales.
According to the latest British Retail Consortium-KPMG tracker, UK retail sales rose 2.7% on-year in September, slowing from growth of 4.1% in August.
Clive Black at Shore Capital said: “Should current hot English temperatures persist, then weather may feature in the characterising the autumn trading updates, especially apparel & footwear.”
But retail share prices were broadly firmer after falling sharply on Monday after the cautious note from JPMorgan on the sector.
YouGov jumped 11% after its results which showed strong growth in revenue and profitability.
Peel Hunt said there were “no surprises from YouGov today, which should provide relief to the market, especially with the shares down 30% alone in the last three months.”
“So far, there has been good momentum going into FY24E, and the company is seeing a resurgence in client tech spend of late,” it pointed out.
Currys jumped 3.7% after revealing it had received interest in Kotsovolos, its business in Greece and Cyprus.
"Further to speculation in local media and subsequent announcements by public companies, Currys confirms that the strategic review has elicited interest from several potential buyers of Kotsovolos, who have in turn submitted non-binding offers which the board and its advisers are currently evaluating," it said in a statement.
7:57am: Reach digital revenue drops sharply, pension contributions to rise
Just before the market opens, an update from Reach PLC (LSE:RCH) which revealed the digital revolution for the national and regional newspaper group had effectively run its course.
At the same time a longstanding legacy issue, contributions to the MGN Pension Scheme, continued to exert an impact on the business with contributions set to rise by £5.1 million to £46 million a year until 2028.
Against a tough market backdrop, the owner of the Daily Mirror said trading for the third quarter had been in line with forecasts and that it would meet market expectations.
While digital revenues dropped 13.7% in the three months to September 24, and total turnover was off 7.8%, Reach hopes to mitigate the impact on the bottom line by cutting operating costs by 5-6%
7:53am: Currys gets interest in Greek business, Kotsovolos
It's a busy morning for news, and Currys has announced it has received a number of approaches for Kotsovolos, its business in Greece and Cyprus.
The retailer said it was looking at options for the unit in June.
"Further to speculation in local media and subsequent announcements by public companies, Currys confirms that the strategic review has elicited interest from several potential buyers of Kotsovolos, who have in turn submitted non-binding offers which the Board and its advisers are currently evaluating," it said in a statement.
7:46am: Indian summer takes heat out of retail sales
UK retail sales increased last month, data on Tuesday showed, though purchases of big-ticket items fell, as consumers continue to grapple with cost of living pressures.
According to the latest British Retail Consortium-KPMG tracker, UK retail sales rose 2.7% on-year in September. Growth slowed from 4.1% in August.
The latest reading was in line with the three-month average growth rate, but lagged the 12-month average climb of 4.2%.
"Sales growth in September slowed as the high cost of living continues to bear down on households. Big ticket items such as furniture and electricals performed poorly as consumers limited spending in the face of higher housing, rental and fuel costs. The Indian summer also meant sales of autumnal clothing, knitwear and coats, have yet to materialise," BRC Chief Executive Helen Dickinson said.
Food sales increased 7.4% on-year over the three months to September, though non-food sales decreased 1.2%.
7:40am: YouGov reports strong growth in revenue and profit
YouGov PLC (AIM:YOU) backed guidance after delivering strong growth in revenue and profitability in a “challenging” macroeconomic backdrop.
In the year to July 31, the international research and data analytics group reported revenue growth of 17% to £258.3 million, with underlying business growth of 9% versus the prior year, “well ahead of the industry.”
Data Products revenue increased by 16%, Data Services revenue decreased by 6% while Custom Research revenue increased by 27%.
Strong growth was seen across all geographies despite macroeconomic challenges and difficult trading conditions in some markets during the period.
Adjusted operating profit margin improved 230 basis points to 18.7% from 16.4% the year before while adjusted pre-tax profit jumped 63% to £56.4 million from £34.7 million.
Adjusted EPS grew 71% to 40.5p from 23.7p.
YouGov said it remained confident in prospects for the coming financial year and in meeting current market expectations with trading in the new year in line with expectations.
It said it was starting to see sales momentum returning in the technology sector and expects overall performance to build through the course of the year.
Steve Hatch, chief executive officer, said: “The company is in a strong position with the right focus and strategic direction to realise the full potential of the business.”
“We remain confident in the group's prospects for FY24 and beyond, aiming to maintain the strong sales momentum seen over the past year."
7:25am: Speedy Hire in £20 million deal after "satisfactory" first half
Speedy Hire PLC (LSE:SDY) expects full-year performance will be in line with expectations after what it called a “satisfactory” first half.
The tools and equipment hire services company said revenue from its national customers was up 5% on last year, offset by some softening of revenues with its regional customers.
In a trading update for the half year ended September, the firm said it expects a second half weighting to its hire revenues and profits, as the winter programmes commence and new contracts extended and won fully mobilise in the period.
Service revenue are expected to be lower, primarily due to the decline in the wholesale price of fuel, down around 20% against prior year.
But this has not materially impacted margin, as direct costs fall proportionately.
Velocity, the company's five year transformation and growth strategy, was launched earlier in the year and is progressing well while the joint venture in Kazakhstan continues to perform well.
Speedy Hire also announced the acquisition of sustainable power solutions specialist, Green Power Hire Limited for an enterprise value of £20.2 million.
This will be funded from existing debt facilities.
7:00am: FTSE 100 expected to open on the front foot
Good morning and blue chips in London are to make a positive start to the day following gains in the US after two Federal Reserve officials hinted interest rates may have risen far enough.
Spread betting companies are calling the FTSE 100 up by around 58 points after closing down 2.37 points at 7,492.21 on Monday.
US markets reversed early falls to close higher. The Dow Jones Industrial Average rose 0.6%, the S&P 500 climbed 0.6% and the Nasdaq Composite advanced 0.4%.
The vice-chair of the Federal Reserve said the US central bank needed to "proceed carefully" with forthcoming interest rate decisions.
Officials "are in a sensitive period of risk management", Philip Jefferson said in prepared remarks, needing to balance the respective risks of not tightening enough and being too restrictive.
His comments were similar to those from Dallas Fed President Lorie Logan, who noted that tighter financial conditions could mean the bank does less in terms of raising its policy rate.
Referring to the rise in bond yields, Logan said: "If term premiums rise, they could do some of the work of cooling the economy for us, leaving less need for additional monetary policy tightening to achieve the FOMC’s objectives."
In Asia, Country Garden fell 8.3% after it said that it did not expect to meet all of its offshore payment obligations in time as it edges towards a potential default.
Back in London, and the early focus will be updates from Reach, Robert Walters and YouGov while the BRC’s retail sales report will also be scrutinised after it showed a slowdown in retail sales growth in September.