- FTSE 100 adds 41 points
- Prudential leads risers, BP and Shell regain
- Chinese markets see best week since 2008
3.58pm: FTSE 100 on course for weekly gain
London’s blue chips approached late trading in positive territory on Friday, having added 41 points to reach 8,326.
This meant the FTSE 100 was on course for a weekly gain of 1.2%, after commentary from Chinese officials had helped to boost sentiment globally earlier on.
Croda International PLC (LSE:CRDA) led Friday’s risers with a gain of 3.4%, while Prudential PLC (LSE:PRU) followed behind after the announcements this week of rate cuts in China and funding from its government appeared to boost prospects for Asia-facing firms.
Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) topped the day’s fallers in the meantime, ahead of Fresnillo PLC (LSE:FRES), with the latter having also benefited earlier in the week from the news coming out of China.
3.48pm: Harland & Wolff brings in administrators, shareholders to miss out
Harland & Wolff has announced administrators have been brought in after the Titanic shipbuilder was deemed insolvent earlier this month.
Teneo Financial Advisory Ltd administrators have been appointed, Harland said on Friday, with jobs set to be cut and shareholders to be left out of receiving any returns.
This will see the company’s headcount reduced from 66 people to enough “to provide certain required services to the operational companies,” the company added.
Subsidiaries in Belfast, Appledore, Arnish and Methil will not be subject to the insolvency process, according to Harland, which added the process would “not result in any returns to shareholders”.
3.26pm: Gold rally stalls on Friday
After repeatedly breaking its own records this week, the price of gold moved little on Friday marking a pause in the yellow metal’s latest rally.
Come the afternoon, gold was trading at US$2,663 an ounce for a 0.1% decline on Friday, having surpassed the US$2,680 mark earlier in the week, according to the Royal Mint.
This meant gold had hit some 26 records this year so far, surpassing the number struck during 2008, in the midst of the global financial crisis.
Last week’s Federal Reserve rate cut and building tensions in the Middle East had fuelled the latest rally, taking gains above 40% since last September.
“It is noticeable that there hasn’t been a significant pullback so far,” Trade Nation analyst David Morrison commented.
“This should keep traders on their toes, as it’s usual to see a correction of some sort or other after big market moves.”
3.16pm: Nationwide, Virgin Money tie-up approved by judge
Nationwide Building Society’s aquisition of Virgin Money UK PLC has been given the go-ahead by a specialist companies court in London.
Judge Anthony Mann ruled on Friday that the £2.9 billion takeover could go ahead after being “satisfied” legal requirements over the deal had been met.
He said: “It’s obviously a sensible scheme with financial benefits.
“There is no apparent blot on this scheme”... Read more
2.40pm: Dow Jones, Wall Street open higher as inflation eases
Wall Street enjoyed a positive start on Friday after figures showed personal consumption expenditures (PCE) subsided in August.
The Dow Jones ticked up 0.3% as the market opened, while the S&P 500 and Nasdaq both climbed close to 0.2% respectively.
Figures from the Bureau of Economic Analysis earlier in the day had shown the Federal Reserve’s preferred measure of inflation, PCE, eased last month, spelling positive news for further interest rate cuts later this year.
The headline rate came in slightly lower than expectations of 2.3% at 2.2%, having eased from 2.5% in July.
Core PCE, excluding energy and food prices, ticked up 2.7% as anticipated, following a 2.6% increase a month earlier.
An absence of a shock in the figures averted fears that the Federal Reserve may be tied in cutting interest rates further, after September’s 0.5% reduction.
1.46pm: US personal consumption expenditures ease in August
Personal consumption expenditures (PCE) climbed slightly slower than expected last month, figures from the Bureau of Economic Analysis showed on Friday.
The headline rate ticked up by 2.2% in August, against July’s 2.5% and below expectations for a 2.3% increase.
Core PCE, which excludes volatile energy and food prices, climbed by 2.7% as anticipated by analysts following a 2.6% increase a month earlier.
Markets had been looking to the figures, which reflect the Federal Reserve’s preferred measure of inflation, to provide clarity over the depth of the next base interest rate cut in the US, after September’s 0.5% reduction.
Month on month, both the core and headline figures increased by 0.1% after rising by 0.2% in July.
Following an annual rate of 3.3% in August last year, Scope Market’s analyst Joshua Mahony said a subsiding figure this time around would “further strengthen the case” for another 0.5% base rate cut in November.
1.06pm: Amazon-Anthropic partnership cleared by CMA
Britain’s competition watchdog has given Amazon.com Inc (NASDAQ:AMZN) the green light to pursue a $4 billion (£3 billion) investment in artificial intelligence research company Anthropic.
The Competition and Markets Authority (CMA) opened a Phase 1 investigation in August after the partnership was announced in March.
Amazon said the strategic collaboration with Anthropic “will further improve our customers’ experiences”.
Amazon expressed disappointment in the CMA’s decision to hold up to the deal, but the regulator has now determined that “Amazon’s partnership with Anthropic does not qualify for investigation under the merger provisions of the Enterprise Act 2002”.
Detailing the rationale behind the approval, the CMA said the deal was unlikely to significantly reduce competition in the provision of cloud-computing services or AI development tools.
This decision was influenced by the existence of several large, established players in these sectors, indicating that competition would remain strong.
Additionally, the CMA noted that Amazon's investment in Anthropic would not give it control over the firm.
12.50pm: Housing market rebounding as inflation begins to ease, HMRC data shows
The number of house sales in the UK reached 90,210 in August, according to HMRC’s seasonally adjusted estimates.
This represents the third consecutive monthly decline, though transactions increased 5% year-on-year.
Holly Tomlinson, financial planner at Quilter, said of the figures: “The housing market is experiencing a gradual cooling over the summer, but the year-on-year rise shows a rebound as inflation and interest rate pressures ease.”
She added that more 4% mortgage deals are available, helping buyers navigate challenges.
Non-seasonally adjusted data showed 104,330 transactions in August, up 10% from the previous year and 8% from July.
Nick Leeming, chairman of Jackson-Stops, added: “Greater mortgage options and rising buyer confidence, supported by the Bank of England's recent interest rate cut, are driving this growth. We expect this momentum to continue through the year.
12.27pm: Wall Street in for cautious start ahead of inflation data
Optimism that China had finally struck a note in addressing its struggling economy looked not to stretch to US stocks on Friday, as futures saw Wall Street falling at the open.
The Nasdaq looked set for a 0.2% drop ahead of Friday’s trading, while futures had the Dow Jones and S&P 500 also both off the mark.
This was as markets awaited personal consumption expenditures data for August, with the figures reflecting the Federal Reserve’s preferred measure of inflation.
Following a 0.2% uptick in July, consensus was for another 0.2% increase last month as speculation circled around how aggressively the Fed would continue to cut base interest in the months ahead.
This would see the figure climb by 2.3% on an annual basis, after rising by 3.3% in August last year.
Scope Markets analyst Joshua Mahony said the reading was “set to bring a fresh insight into the trajectory of prices” as traders weighed up the prospect of another 0.5% cut to base interest in November.
“Improved GDP and jobless claims data yesterday has helped allay some of the fears that we could see a potential hard landing in the US,” he said.
A reading in line with expectations would “further strengthen the case” for another such cut, he added, after the Fed’s first 0.5% reduction this montnth.
11.57am: Retailers eye growth ahead as sales climb at fastest pace since May
Retailers have reported sales grew at the fastest pace this month since May and expect further improvement in October, according to figures released on Friday.
The Confederation of British Industry’s (CBIs) monthly retail sales balance rose to 4% in September, against -27% in August.
This meant more retailers reported a rise in sales over the month than those that saw a decline.
Online sales swung from -15% to 18% over the month in the fastest growth since June 2023.
Retailers also saw prospects improving in October, with the balance of those expecting an uptick in sales over the month climbing to 5%, against previous expectations of -17%.
“After a challenging summer, retailers will welcome the modest growth in annual sales volumes this month,” CBI economist Martin Sartorius said.
Some firms were seeing tailwinds from rising household incomes, he added, though some reported that spending habits were still under pressure from high inflation in recent years.
“In contrast to the recovery seen in the retail sector, wholesalers and motor traders continue to see a decline in sales volumes,” according to Sartorius.
He also said eyes across the industry were on next month’s Autumn Budget, with retailers “keen to see the government take long overdue action to address an antiquated business rates system that has become too complex”.
11.37am: Chinese stocks enjoy best week since 2008 after economic pledges
Chinese stocks saw their best weekly performance in several years after a string of measures were followed by pledges from the country’s government to buoy its economy.
Having climbed by 2.9% on Friday, the Shanghai Composite Index racked up a near-10% gain for the week, while China’s CSI 300 added 4.5% for a weekly rise of 15.7%.
This meant the two had enjoyed their best week since 2008, when the world was in the midst of the global financial crisis, with Hong Kong’s Hang Seng also marking its strongest five-day performance since 1998.
China’s central bank cut interest rates and reduced lending restrictions earlier in the week before the government vowed “necessary spending” to hit a 5% annual growth target on Thursday.
This led Chinese stocks to rally and boosted the likes of mining and Asia-focused companies elsewhere as commodities climbed.
“It appears that the powers that be in China are finally acknowledging the economic realities of a floundering economy and are taking the necessary steps to satisfy market expectations of stimulus support,” Tickmill Group partner Patrick Munnelly commented.
11.18am: Mortgage rates fall every day this week
Average mortgage rates across the country have fallen every day this week as lenders battle to win over prospective buyers with better deals.
As of Friday, the rate on average five-year fixed mortgages sat at 5.40%, according to comparison site Moneyfacts.
This followed consecutive declines over every day of the week, with the typical five-year rate having sat at 5.45% on Monday.
It also means average rates have dropped by more than a per cent since last year, after average five-year mortgages sat over 6.5% in late September 2023... Read more
10.46am: Murdoch's REA Group makes fourth swoop for Rightmove
Rupert Murdoch's REA Group has launched a fourth bid for FTSE 100-listed Rightmove PLC (LSE:RMV) and urged the property portal to engage with it over a potential deal.
This new proposal values Rightmove at £6.2 billion, a £100 million improvement on the last rejected offer.
REA has clearly become frustrated with the Rightmove board’s refusal to cooperate, with the Aussie-listed business compelling management to “engage now” before the 30 September deadline... Read more
10.40am: German unemployment ahead of expectations
Unemployment has climbed faster than expected in Germany this month, raising expectations for further interest rate cuts on the continent soon.
The number of unemployed people across Europe’s largest economy ticked up by 17,000 to 2.82 million and ahead of expectations for a 12,000 increase.
Excluding adjustments, the figure dipped by 65,000 people, though analysts warned the data showed ongoing deterioration in Germany’s labour market.
“Recruitment plans in both industry and services have already fallen to the lowest level in a year,” ING global macro head Carsten Brzeski said.
“Also, the number of vacancies is gradually coming down.”
He added the data further brought the prospect of an October cut to base interest by the European Central Bank to the table.
“Let’s not forget that the labour market is always a lagging and not a leading indicator.”
10.02am: Travelodge owner firms up deal to buy Abrdn property portfolio
Travelodge owner GoldenTree Asset Management has struck a deal to buy the majority of Abrdn PLC (LSE:ABDN)’s property subsidiary's portfolio.
The London-listed firm said Friday that US-based GoldenTree would acquire some 39 properties from its subsidiary Abrdn Property Holdings for £351 million.
This covers the property wing’s entire portfolio apart from land at Far Ralia in the Cairngorms.
Some £35.1 million has already been paid as a cash deposit, Abrdn said, with the rest set to come after the deal has been completed.
Abrdn Property Holdings chair James Clifton-Brown noted the sale came after a vote in May to wind down the business.
“Following a second round of bids, the board considered the GoldenTree Asset Management bid provided the best solution for shareholders,” he said.
“[this] compared with the net present value of what might be achieved by way of individual sales over a longer period [representing] a swift implementation of the shareholder resolution to conduct a managed wind down.”
Custodian Property Income REIT had moved in on the Abrdn assets earlier in the deal earlier in the year, though the offer fell through after failing to secure shareholder support.
9.45am: Burberry, Watches of Switzerland higher as China pledges boost luxury stocks
Burberry Group PLC climbed a further 5.3% on Friday, while Watches of Switzerland Group PLC (LSE:WOSG) continued to gain after commentary coming out of China this week boosted stocks.
Alongside fuelling sentiment around commodities, measures aimed at cutting interest rates and easing lending restrictions helped to boost stocks earlier in the week, before Thursday saw Chinese leaders pledge “necessary spending” to meet a growth target of 5% this year.
Burberry appeared on course for an 18.4% gain over the week as a result, given the luxury market’s exposure to China, while Watches of Switzerland added 17.5% in the meantime.
Louis Vuitton Moet Hennessy (EPA:MC) and Hermes also ticked up over the week, having risen by 18.2% and 16.8% by Friday morning.
9.20am: London third-most targeted for M&A activity
UK-based companies have been the third-most targeted for merger and acquisition (M&A) activity this year, figures on Friday showed.
Some US$137.1 billion (£102.4 billion) was spent on such activity in the UK over the first nine months of the year, according to LSEG Deals Intelligence, up 54%.
Most of this came from foreign buyers, which accounted for 72% of the total to take the highest share in three years.
This coincided with a 79% increase in activity, with deals around UK targets equating to 6% of the global total, behind only the US and China.
Falling uncertainty around UK politics and expectations for further interest rate cuts have buoyed the figures this year, LSEG Deals Intelligence senior manager Lucille Jones said.
These “bode well for dealmaker appetites,” Jones added, “and may encourage more companies off the sidelines to pursue acquisitions”.
Property portal Rightmove PLC (LSE:RMV) has emerged most recently as a target of Rupert Murdoch’s REA Group, while DS Smith PLC (LSE:SMDS) and Darktrace PLC (LSE:DARK) have also seen multi-billion bids.
Some US$52.1 billion has been spent on ongoing deals from the UK over the year so far, marking an increase of 15%.
8.56am: Oil prices steady, BP and Shell regain
Oil prices steadied on Friday morning, aiding Shell PLC (LSE:SHEL, NYSE:SHEL) and BP PLC (LSE:BP.) towards slight recoveries following Thursday’s sharp drops.
Benchmark Brent crude ticked up 0.6% to US$71.69 a barrel early on, having fallen by almost 4% over the week as outlook on prices deteriorated throughout.
Reports that Saudi Arabia was set to ditch an unofficial US$100 oil price target and press ahead with production hikes later this year had driven declines most recently.
Falling prices subsequently hit shares in FTSE 100 heavyweights Shell and BP earlier on in the week, with Friday’s stabilisation coinciding with slight gains of 0.3% and 0.8% respectively.
8.45am: French inflation below 3% for first time in three years, slows in Spain
Inflation readings from France and Spain on Friday morning have shown the rate of price rises dropped this month.
In France, the consumer price index fell to 1.5% for the first time in three years in September.
Spanish inflation climbed by 1.7% in the meantime and fell below the 2.0% mark for the first time since June last year.
This was against respective readings of 2.2% and 2.4% in France and Spain recorded for August, with falling fuel prices said to be key in driving the declines.
8.33am: Prudential leads stocks higher at open
The FTSE 100 climbed on Thursday morning, led by Prudential PLC (LSE:PRU) as news of a partnership in Indonesia helped fuel further gains after this week’s economic pledges from China.
Prudential climbed 3% early on, having announced a deal with the country’s sixth-largest lender which will see the FTSE 100 firm provide products through Bank Syariah Indonesia.
“Indonesia is a key growth market for Prudential,” strategic business group managing director Solmaz Altin said, “and this partnership will accelerate our growth ambitions”.
This added to gains for Prudential over the course of this week as it emerged as a beneficiary of announcements from China aimed at stimulating the country's struggling economy.
BP PLC (LSE:BP.) was also among the index’s risers early on, as it recouped after a drop on Thursday on the back of deteriorating prospects for oil prices, while Shell PLC (LSE:SHEL, NYSE:SHEL) also moved higher.
Overall, the FTSE 100 added 12 points to reach 8,297.
8.16am: Gambling ads triple over Premier League opening weekend
The opening weekend of this season's Premier Leage saw gambling adverts almost triple, prompting calls for tougher regulation.
Nearly 30,000 gambling adverts were recorded across the likes of social media, television and radio channels over the first weekend of England’s top football league in August, University of Bristol researchers found.
This was up from 10,999 over the same weekend a year earlier, leaving researchers warning over a heightened risk to fans as well as children watching fixtures.
“It’s clear that the industry’s attempt to self-regulate is wholly inadequate and tokenistic,” co-lead author Raffaello Rossi commented... Read more
7.56am: Chinese stocks on course for best week since financial crisis
Chinese stocks are on course for their best weekly performance since 2008, when the world was in the midst of the global financial crisis.
China’s CSI 300 climbed by 4.2% overnight, leaving the index set to gain over 15% for the week, while Hong Kong’s Hang Seng added 2.7%, meaning it was on track for a 13% weekly gain.
A string of measures aimed at buoying China’s struggling economy, including rate cuts and eased lending restrictions, earlier in the week were followed by a vow from the country’s leadership on Thursday to inject “necessary spending” to hit a 5% annual growth target.
These have boosted Chinese and global stocks alike, alongside fuelling sentiment around commodities, sending the likes of iron ore, copper higher over the week.
“Beijing seems finally determined to roll out its bazooka stimulus in rapid succession,” Nomura chief economist Tin Lu commented.
“Beijing’s recognition of the severe situation of the economy and lack of success in a piecemeal approach should be valued by markets.”
7.45am: BlackBerry breaks even as revenue beats forecasts
BlackBerry Ltd broke even over the second quarter following a jump in cybersecurity and internet of things (IoT) revenue.
Adjusted earnings climbed by US$23 million to see the figure break even, BlackBerry said overnight, following a loss in the second quarter of last year.
This came as revenue exceeded expectations over the quarter, climbing by 10% to US$145 million, against anticipations for US$140 million.
Analysts had been expecting a US$0.03 per share loss, with BlackBerry noting improvement came on the back of double-digit cybersecurity and IoT growth, alongside restructuring efforts.
Chief executive John J. Giamatteo commented the results marked a “significant milestone on our path to profitability,” as operating cash burn dipped by 24% over the quarter to US$13 million... Read more
7.15am: Stocks set to gain further
London’s blue chips were seen climbing higher on Friday, looking set to build on Thursday’s gains.
Futures had the FTSE 100 ticking up 15 points ahead of the open, or by 0.1%, after another vow by China to stimulate its struggling economy this week helped to buoy mining and Asia-focused stocks on Thursday.
A deteriorating outlook for oil prices, prompted most recently by reports Saudi Arabia would ditch an unofficial target of US$100 per barrel, had seen heavyweights Shell and BP weigh on the index, though.
Benchmark Brent crude remained largely flat throughout early trading on Friday, at US$71.43, having stooped towards the US$70 mark yesterday.
Chinese markets continued to benefit overnight from China’s reassurances on Thursday, which had seen the country’s leadership vow “necessary spending” to meet a 5% annual growth target, with Shanghai adding 2.5%.
Friday brings a quieter day on the company front, with an update from Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) due, while US personal consumption index figures are expected later in the day.