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London midday: Stocks push higher as Rolls-Royce shines

Published 31/10/2023, 11:59
Updated 31/10/2023, 12:11
London midday: Stocks push higher as Rolls-Royce shines

Sharecast - The FTSE 100 was up 0.6% at 7,369.52.

Data released earlier by China’s National Bureau of Statistics showed the manufacturing purchasing managers' index fell to 49.5 in October from 50.2 a month earlier, coming in below the 50 mark that separates contraction from expansion and missing expectations for a reading of 50.2.

The non-manufacturing PMI declined to 50.6 in October from 51.7 from in September.

The latest policy announcement from the Bank of Japan was also in focus, as it announced a tweak to its yield curve control, saying it would allow yields on the 10-year government bond to rise above 1%.

The BoJ left short- and long-term policy rates unchanged at -0.1% and around 0% respectively. However, it said the 1% upper bound of the 10-year Japanese Government Bond (JGB) would now be regarded as a "reference".

The move was approved 8-1 by the board, with only Toyoaki Nakamura dissenting.

On home shores, meanwhile, industry data showed that shop price inflation fell in October to its lowest level since August 2022.

According to the British Retail Consortium-NielsenIQ shop price index, annual inflation eased to 5.2% from 6.2% in September. This marked the fifth consecutive month of deceleration.

Food inflation eased to 8.8% this month from 9.9% in September, marking the sixth consecutive month of deceleration and hitting the lowest since July 2022.

Fresh food inflation slowed to 8.3% in October from 9.6% in September, while ambient food inflation eased to 9.5% from 10.4%.

Meanwhile, non-food inflation fell from 4.4% to 3.4% - its lowest since September 2022.

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BRC chief executive Helen Dickinson said: "Imported goods saw higher levels of inflation due to a weaker pound, still-high producer costs and emerging trade frictions, while prices for some domestically produced foods, such as fruit, were lower compared to last month.

"Prices of children’s and baby clothing also fell as retailers continued to support families as the colder weather descended.

"Retailers have been battling to keep prices down for their customers in the face of rising transport costs, high interest rates and other input costs. To keep inflation heading in the right direction, it is vital that the Government does not burden businesses with unnecessary new costs.

"Without immediate action from the Chancellor, retailers have an additional £470m per year on their business rates bill, jeopardising the progress made. Ultimately, it’s consumers who would pay the price for the rising rates bill."

In equity markets, Rolls-Royce (LON:RR) was sitting pretty at the top of the FTSE 100 after an upgrade to ‘overweight’ from ‘equalweight’ at Barclays (LON:BARC), which highlighted a "buying opportunity" after the shares de-rated around 10% in the past month.

IG Group gained as the online trading platform announced plans to axe around 10% of its worldwide workforce as it looks to cut costs and streamline the business. Alongside other efficiency measures, this is expected to deliver full run rate cost savings of £50m a year.

Precision instrumentation and controls company Spectris (LON:SXS) was in the black as it said it expects full-year profits to be at the top end of forecasts after continued strong sales growth and margin improvements in the third quarter.

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On the downside, oil giant BP (LON:BP) slid as it reported a third-quarter underlying replacement cost profit of $3.3bn, an improvement from $2.6bn in the second quarter but down from $8.2bn in the same period a year earlier and missing forecasts of $4bn.

TP Icap slumped after a trading statement, while InterContinental Hotels was knocked lower by a downgrade to ‘underweight’ from ‘neutral’ at JPMorgan (NYSE:JPM) Cazenove.

Market Movers

FTSE 100 (UKX) 7,369.52 0.57%

FTSE 250 (MCX) 17,169.22 0.89%

techMARK (TASX) 4,020.80 0.59%

FTSE 100 - Risers

Rolls-Royce Holdings (RR.) 212.40p 5.15%

Standard Chartered (LON:STAN) 637.20p 2.71%

Entain (LON:ENT) 936.00p 2.43%

SEGRO (SGRO) 710.00p 2.39%

Kingfisher (LON:KGF) 209.10p 2.35%

Marks & Spencer Group (MKS (LON:MKS)) 218.90p 2.05%

Smith & Nephew (SN.) 926.00p 2.03%

Experian (EXPN) 2,484.00p 2.01%

Unite Group (LON:UTG) 867.50p 1.94%

Barratt Developments (LON:BDEV) 416.50p 1.93%

FTSE 100 - Fallers

BP (BP.) 509.60p -3.25%

Airtel Africa (AAF) 111.60p -2.87%

Ocado Group (LON:OCDO) 455.90p -1.47%

InterContinental Hotels Group (IHG (LON:IHG)) 5,906.00p -1.44%

Vodafone Group (LON:VOD) 76.34p -0.51%

Antofagasta (LON:ANTO) 1,362.50p -0.47%

Glencore (LON:GLEN) 449.05p -0.43%

BAE Systems (LON:BAES) (BA.) 1,098.50p -0.41%

Shell (LON:RDSa) (SHEL) 2,679.50p -0.28%

Rightmove (RMV) 479.50p -0.21%

FTSE 250 - Risers

CAB Payments Holdings (CABP) 59.35p 8.50%

Moonpig Group (MOON) 168.10p 6.26%

Elementis (LON:ELM) 117.60p 4.63%

Future (FUTR (LON:FUTR)) 892.00p 4.45%

TI Fluid Systems (TIFS) 124.20p 4.02%

Spectris (SXS) 3,126.00p 3.99%

CLS Holdings (CLI) 88.20p 3.40%

Workspace Group (LON:WKP) 481.60p 3.30%

SDCL Energy Efficiency Income Trust (SEIT) 59.00p 3.15%

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Big Yellow Group (LON:BYG) 954.50p 2.86%

FTSE 250 - Fallers

TP Icap Group (TCAP) 157.70p -4.37%

Capital Gearing Trust (CGT) 4,420.00p -2.32%

W.A.G Payment Solutions (WPS) 90.00p -2.17%

Fidelity China Special Situations (LON:FCSS) 203.00p -1.93%

888 Holdings (DI) (LON:888) 80.65p -1.89%

Wizz Air Holdings (LON:WIZZ) 1,595.50p -1.69%

Vietnam Enterprise Investments (DI) (VEIL) 510.00p -1.54%

Pacific Horizon Inv Trust (PHI) 515.00p -1.15%

Jupiter Fund Management (JUP) 77.95p -0.95%

WH Smith (LON:SMWH) 1,180.50p -0.88%

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Latest comments

UK food inflation, is now ONLY down, to cooperate greed.
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