Stocks in London were higher at midday Monday, as investors sighed relief from a weeks of ups and downs, ahead of unemployment data from the UK and key inflation data from the US.
The FTSE 100 index was up 37.76 points, 0.5%, at 8,205.86. The FTSE 250 was up 55.52 points, 0.3%, at 20,680.70, and the AIM All-Share was up 1.82 points, 0.2%, at 768.06.
The Cboe UK 100 was up 0.4% at 819.96, the Cboe UK 250 was up 0.4% at 18,128.68, and the Cboe Small Companies was up 0.1% at 16,809.46.
In European equities on Monday, the CAC 40 in Paris was down 0.2%, while the DAX 40 in Frankfurt was up 0.1%.
‘After a volatile week last week investors will be relieved to see the FTSE 100 start off on Monday with steady gains,’ said AJ Bell investment director, Russ Mould.
‘The current calm may not last long with inflation readings due on both sides of the Atlantic as well as US retail sales data.
‘Concern about the risks of a recession in the US could be either compounded or somewhat alleviated by the retail number given it is the primary marker of consumer spending which, in turn, accounts for the majority of overall economic activity.’
On Tuesday, there is a US producer price inflation reading for investors to digest, followed by a consumer price inflation reading on Wednesday.
On Thursday, there is US retail sales data due out.
But eyes are not just on the US. In the UK, there is CPI and PPI data scheduled to be released on Wednesday.
Stocks in New York were called to open mixed on Monday, breaking the positive trend seen in Europe. The Dow Jones Industrial Average was called down 0.1%, whilst both the S&P 500 index and the Nasdaq Composite were both called up 0.1%.
The pound was quoted at $1.2760 at midday on Monday in London, lower compared to $1.2770 at the equities close on Friday. The euro stood at $1.0927, slightly higher against $1.0925. Against the yen, the dollar was trading at JP¥147.38, up compared to JP¥146.56.
In the FTSE 100, BT took the spotlight, rising 6.4%.
Bharti Global said it has reached an agreement to buy a large stake in BT from Altice UK, sending shares in the London-based telecommunications operator upwards.
The Delhi, India-based telecommunications company said it will buy a 24.5% stake in BT from Altice UK, a subsidiary of Altice Europe NV, which is lead by Israeli billionaire Patrick Drahi.
Bharti said it has entered into a binding agreement with Altice UK to acquire a 9.99% stake of BT’s issued capital imminently, with the balance 14.51% of BT’s share capital to be purchased following receipt of regulatory clearances.
In response, BT Chief Executive Allison Kirkby said: ‘We welcome investors who recognise the long-term value of our business, and this scale of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy.’
JD Sports Fashion took the spot as the worst performer on the FTSE 100 index at midday. It lost 4.2%.
The German bank downgraded the sports fashion retailer to ’sell’ from ’hold’ and lowered its price target to 110 pence per share from 115p.
‘Whilst we see potential for positive surprise in gross margin, as promotional intensity eases, subdued overall category spend tampers our enthusiasm,’ Deutsche Bank analyst Alison Lygo remarked.
In the FTSE 250, Marshalls shed 0.9%.
The Yorkshire, England-based landscaping products maker said pretax profit rose 29% to £21.5 million in the first half that ended June 30 from £16.7 million the previous year.
Revenue fell by 13% to £306.7 million from £354.1 million, but net operating costs were cut by 15% to £277.8 million from £327.3 million.
CEO Matt Pullen said: ‘The group has delivered a resilient performance in weak end markets. The result in the first half is encouraging and demonstrates that the strategy of diversification, building on the group’s historic core Landscape Products business, through the acquisition and improvement of less cyclical businesses in recent years, has resulted in a more balanced group.’
On AIM, Global Petroleum shares more than doubled, after it said it entered into early commercial talks with a potential operating partner for a farm-in agreement for a licence in Namibia.
The Africa and Mediterranean-focused oil and gas company said that if a farm-in for its licence PEL94 concludes successfully, it ‘could be transformational for the business,’ as a strategic partner could enable the exploitation of an estimated 2.75 billion barrels of oil on the licence.
On the other hand, Celadon Pharmaceutical shares dived 47% amid delayed receipt of funds.
The London-based pharmaceutical company focused on the development, production and sale of breakthrough cannabis-based medicines said its cash position has been made more difficult by a delay in receipt of funds from the third admission of equity and a £1 million drawn down from a committed credit facility.
Brent oil was quoted at $80.27 a barrel at midday in London on Monday, up from $79.54 late Friday. Gold was quoted at $2,442.20 an ounce, up against $2,429.01.
Still to come on Monday’s economic calendar, there is the US monthly budget statement and consumer inflation expectations out in the evening.
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