Proactive Investors -
- FTSE 100 up 26 points
- Rate cut boosts housing market
- Job vacancies climb in July
FTSE 100 moves in positive territory
The FTSE 100 rebounded into Monday afternoon, racking up a 26-point gain to reach 8,337 after slipping early on amid a quiet day of company news.
Miners including Glencore PLC (LON:GLEN), Anglo American (JO:AGLJ) and Rio Tinto (LON:RIO) sat among the day’s risers as they reversed on declines seen over the past week.
JD Sports Fashion PLC (LON:JD) led the way though, racking up a 2.6% gain, as rival retailers Next PLC (LON:NXT) and Frasers Group (LON:FRAS) PLC also climbed.
BAE Systems (LON:BAES) and Rolls-Royce Holdings PLC (LON:RR) remained off the mark in the meantime, following reports Germany was to cut back on military support for Ukraine.
DIY investors eye riskier strategies as confidence returns to market - survey
Retail investors are set to take on increasing levels of risk over the coming months as confidence seeps back into the UK market, according to Charles Stanley.
Some 42% of respondents to a survey said they would take on a higher than usual level of risk over the next three months, the investment management firm said on Monday.
This was as optimism toward the London market picks up, according to Charles Stanley, with 40% of those surveyed saying they had increased exposure to the FTSE 100 over the last three months.
“Investors are currently recovering from a tough few years, full of economic uncertainty, political turmoil, and market volatility,” Charles Stanley analyst Rob Morgan commented.
“Now, the future looks bright, with expectations for higher growth, lower interest rates, and something that looks suspiciously like stability.”
Having surveyed 1,007 ‘DIY’ investors who choose their own portfolios, Charles Stanley added 35% had increased exposure to the FTSE 350 in recent months, while 28% did so for London’s Alternative Investment Market.
Wall Street seen slightly higher
Wall Street looked set to tick up on Monday’s opening bell, after a string of positive economic data drove a recovery last week following a global sell-off earlier in the month.
Futures had the Dow Jones just above the mark ahead of the opening bell, while the Nasdaq and S&P 500 also looked set to slightly tick up.
Shares had enjoyed gains last week as solid retail and weekly unemployment data, alongside figures showing inflation was moderating, appeared to quell fears that the US economy could be heading for recession on weak jobs figures previously.
Following the return of calm to the markets, this week brings a quieter schedule, with any indications on rate cuts from central bankers at Jackson Hole set to be in focus.
Last week’s data left markets pricing in a rate cut from September, though economists are still split over the depth of the reduction.
Among companies, Estee Lauder (NYSE:EL) dipped over 3% in pre-market trading on Monday after the cosmetics firm underwhelmed with its 2025 outlook on weakness in China.
Palo Alto (NASDAQ:PANW) Networks ticked up by 0.6% in the meantime, ahead of the cybersecurity company’s own fourth-quarter update later today.
Pub numbers finally pick up
Pub and licensed premises numbers picked up for the first time in two years over the second quarter, marking a turnaround for Britain’s embattled hospitality sector.
The number of UK pubs, bars, restaurants, clubs and hotels ticked up by 0.5% between March and June to 99,207, CGA by NIQ and AlixPartners data showed on Monday.
This marked a net increase of 462 venues and the first uptick in two years since surging living costs began to plague the sector... Read more
Gold could hit $2,600 by year-end - analyst
Gold is set to continue enjoying a rally this year which has taken the yellow metal above the US$2,500 per ounce mark for the first time in recent days.
After gold hit a record US$2,509 on Friday and also opened the new week above the mark, UBS said on Monday that further gains were in store.
“Despite gold having hit a new record high, we expect prices to move even higher over the coming months,” analyst Giovanni Staunovo noted.
According to the bank, gold is forecast to top US$2,600 by the end of the year, driven by expectations the Federal Reserve will cut interest rates over the coming months... Read more
Water sector facing £2 billion in fines - Moody's
Water firms risk being hit with £5 billion worth of fines over the next five years as regulators clamp down on sewage issues.
Rating agency Moody’s forecast tougher regulation by Ofwat would result in a flurry of fines over the coming years, “based on Ofwat's draft determination and if companies perform in line with their business plan assumptions”.
Many water firms are already struggling with high debt, including 16 million customer-strong Thames Water, which is said to only have enough cash to last until May... Read more
Job vacancies tick up as labour market builds strength
Job vacancies ticked up in July for the first time this year as employers stepped up advertising for roles in a positive sign for the UK’s labour market.
According to search portal Adzuna, the number of jobs being advertised climbed by 1.1% month on month to 862,043 in July.
Jobs seekers per vacancy also improved, reaching 2.09, meaning the UK labour market was at its most competitive level since May 2021.
Adzuna data science head James Neave noted the figure reflected “optimism about the UK economy” after other surveys have shown declining job postings in previous months... Read more
Goldman Sachs (NYSE:GS) cuts odds of US recession
Goldman Sachs has lowered the odds of a US recession to 20% from 25% just two weeks after increasing expectations.
Following solid retail sales and weekly unemployment data late last week, the Wall Street bank said the chances of the US slipping into recession over the next year were lower.
Goldman had hiked odds from 15% to 25% earlier this month on the back of weak job market data, which subsequently caused a global sell-off in stocks.
“Data for July and early August released since August 2 shows no sign of recession,” the bank reassured though, with better figures coinciding with a recovery for global markets.
9.46am: BAE Systems, Rolls-Royce drop as Germany reportedly mulls Ukraine support
BAE Systems PLC (LSE:BA.) and Rolls-Royce Holdings PLC (LSE:RR.) sat among the FTSE 100’s biggest fallers on Monday following reports Germany was looking to cut military support for Ukraine.
BAE fell 2.6% early on, while Rolls-Royce fell by 1.9%, on the back of news Germany could stop sending new aid to Ukraine under government cutbacks.
According to The Frankfurter Allgemeine Zeitung, the German Finance Ministry is looking to scale back on support for Ukraine as part of budget savings this year.
The ministry has reportedly disputed such claims, suggesting instead that bilateral support for Ukraine would be redirected to international programs, including efforts funded by frozen Russian assets.