Get 40% Off
☕ Buy the dip? After losing 17%, Starbucks sees an estimated 20% upside. See the top Undervalued stocks!Unlock list

London pre-open: Stocks seen up as investors mull inflation data

Published 18/10/2023, 08:30
London pre-open: Stocks seen up as investors mull inflation data

Sharecast - The FTSE 100 was called to open 10 points higher at 7,685.

Data released earlier by the Office for National Statistics showed that consumer price inflation remained at 6.7% in September, versus consensus expectations for it to ease to 6.6%.

Core CPI - which strips out energy, food, alcohol and tobacco - rose 6.1% in the 12 months to September. This was down from 6.2% a month earlier.

ONS chief economist Grant Fitzner said: "After last month's fall, annual inflation was unchanged in September.

"Food and non-alcoholic drinks prices eased again across a range of items with the cost of household appliances and air fares also falling this month.

"These were offset by rising prices for motor fuels and the cost of hotel stays."

Jake Finney, economist at PwC, said: "These latest inflation numbers are marginally higher than expected. However, crucially they remain materially below the Bank’s expectations in August. For this reason, it still seems likely that the Bank’s near-term projections will be downgraded in November, which should be enough to keep rates on hold again."

In corporate news, housebuilder Barratt Developments (LON:BDEV) said it remains on track to hit targeted home completions despite a much slower start to the financial year as a result of ongoing challenges prospective buyers are finding in securing mortgages.

Chief executive David Thomas said the trading environment since 1 July "remains difficult", as the company reported falls in private reservations and forward sales.

The declines reflected the impact of higher borrowing costs and the absence of the Help to Buy scheme, which accounted for 12% of private preservations in the first quarter of last year.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Property group Segro reported positive trading for the year to date, anticipating robust rent roll growth driven by active asset management and strong demand for properties.

The firm also said it had made significant progress in asset disposals, exceeding £250m, as it focused on profitable development projects with a potential rent of £77m, expected to yield 7.3% on cost.

Premier Inn owner Whitbread (LON:WTB) posted a mixed set of half-year results, but unveiled an additional £300m share buyback programme.

Statutory revenues grew by 17% to £1.57bn. Profit before tax, on that same basis, was up by 29% on a year earlier to £395m, for basic earnings per share of 147.6p. The consensus for the company's revenues had been £1.59bn, according to FactSet.

Net cash at period end reduced from £182m to £67m. The interim dividend was raised by 40% to 34.1p per share. Management also sounded a confident note on the full-year outlook, saying that leisure and business demand remained "strong".

Read more on Sharecast.com

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.