Yahoo Finance FTSE 100 Live: Index closes down 0.2% despite topping 8000 and nearing record high in morning
The FTSE 100 started April close to a new record high, with miners among the top risers, as it topped 8000 for the first time in over a year.
Though the index dipped back slightly, on the back of strong manufacturing figures which weakened the prospect of interest rate cuts.
FTSE 100 Live Tuesday
FTSE 100 tops 8000, nears record high
Manufacturing grows for first time since 2022
House prices dip in March
EU inflation headlines quiet day tomorrow
17:33 , Daniel O'Boyle
There’s not much on the schedule for tomorrow in London, but City markets will be paying close attention to the latest Eurozone inflation figures, which could offer a key signal towards when the ECB will cut interest rates.
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Trading update
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OPEC meetingS&P Global PMI’sEurozone inflation
FTSE 100 closes down 0.2% at 7,935.09
16:36 , Daniel O'Boyle
The FTSE 100 closed at 7,935.09 today, down 0.2% and a long way off the near-record levels it reached in the morning.
London’s top flight reached as high as 8015, which would have been a record close, but tumbled in the late morning and afternoon, losing 1% from those highs.
Commodities stocks led the risers, with miners Fresnillo and Anglo American posting the two biggest gains.
The fallers were led by Reckitt and Entain
City Voices: Political turmoil is now the biggest threat to small businesses' future
16:22
Companies seek out restructuring advisers when they can no longer operate in a ‘business as usual’ fashion. And for many companies, business has not been ‘usual’ for a very long time.
Enquiries in 2024, particularly amongst UK SMEs, are at levels close to what we at Resolve last saw during the 2008 financial crash, as a perfect storm of high interest rates, high inflation and subdued consumer demand have impacted the small business community, which accounts for approximately a quarter of the UK’s GDP.
As if all this economic uncertainty wasn’t bad enough, UK businesses now have an even bigger challenge on their hands: political uncertainty.
Tesla shares tumble as sales fall faster than expected
15:52 , Daniel O'Boyle
Tesla sales fell faster than expected in the first three months of 2024.
In the first year-on-year decline in sales since the Covid-19 pandemic hit, the car maker sold 386,810 vehicles from January to March. Analysts had expected sales to decline more modestly, to about 450,000.
Shares fell by as much as 6.6% to $163.78. They’re now down by more than a third this year, as the car maker’s fate diverges from the rest of the “magnificent seven”.
Wall Street snapshot: US stocks plunge
15:33 , Daniel O'Boyle
Take a look at our US market snapshot on a big selling day on Wall Street
US job vacancies slightly higher than forecast
15:03 , Daniel O'Boyle
The number of job vacancies in the US in February came to 8.756 million, a little higher than expected.
Economists had projected 8.73 million vacancies.
The higher vacancies could be a sign that the shockingly resilient US jobs market is finally showing some signs of slowing amid high interest rates.
Market snapshot as FTSE falls into red
14:56 , Daniel O'Boyle
The FTSE 100’s filtration with record territory was short-lived, as it has now fallen below where it started the day.
New dining fund backed by Justin King raises £50 million for investments
14:33 , Daniel O'Boyle
A new investment fund targetting fine dining restaurants and other hospitality businesses has raised a £50 million war chest from wealthy individuals and family offices.
The vehicle, called Hestia Hospitality, is led by restaurant and leisure sector consultant Andrew Fishwick and has former Sainsbury’s Justin King as one of its special advisers.
Other directors include Paul Helmsley, former finance chief at The Innovation Group who serves as CFO; Simon Esner, co-founder of WSH, which owned brands including Benugo, Searcy’s, and BaxterStorey - who is non-executive chair; and Morgan Stanley deal maker Steve Smith, who will be a non-executive director.
Gaming Realms sees profits jump after record year
13:56 , Daniel O'Boyle
Mobile games developer Gaming Realms has cheered a 47% surge in annual profits after notching up record sales thanks to further global releases of its Slingo franchise.
The group, which develops and distributes Slingo games worldwide, reported pre-tax profits of £5.2 million for 2023, up from £3.5 million in 2022.
It saw revenues jump 26% to £23.4 million over the year.
City Comment: London sorely needs to keep more of its huge tax harvest
13:36 , Daniel O'Boyle
There is much to ponder on in today’s Mayoral wish list from BusinessLDN, which represents thousands of private sector employers across the capital.
Perhaps the most eye-catching demand — and the one we flag up in today’s story — is the plea for far greater fiscal autonomy for whoever gets to occupy City Hall after polling day on May 2 (let’s face it, probably Sadiq Khan).
London’s local and regional government only get to keep 7% of the tax revenues harvested from workers and businesses across the capital, the other 93% goes straight to the Treasury coffers, much to pay for public spending elsewhere in the UK.
Shop price inflation eases to lowest rate since December 2021
12:55 , Daniel O'Boyle
Shop price inflation eased to its lowest rate since December 2021 driven by falling food costs and competition between retailers, figures show.
Shop prices were 1.3% higher than a year ago in March, slowing from February’s 2.5% and well below the three-month average of 2.2%, according to the British Retail Consortium (BRC)-NielsenIQ Shop Price Index.
Food prices overall were 3.7% higher than a year ago, down from 5% in February, the 10th consecutive month of slowing inflation for the category and its lowest since April 2022.
Next Mayor ‘needs far bigger cut of tax take’, major London business group says
12:41 , Daniel O'Boyle
The next Mayor of London must be granted sweeping new powers to keep and spend the tax revenues raised in the capital for investment in Britain’s powerhouse regional economy, a major business group said today.
BusinessLDN said in its “Manifesto for the Next Mayor of London: Building a capital fit for the future” that an energetic campaign for far greater devolution to City Hall must be a priority for the next incumbent at City Hall starting after the election on May 2.
It pointed out that currently the Mayor and boroughs keep only a “tiny” 7% of the tax revenues raised in London, compared with about 50% in New York.
Heathrow executive Emma Gilthorpe to take the helm at Royal Mail
12:38 , Daniel O'Boyle
Royal Mail has ended its hunt for a new top boss after appointing Heathrow Airport senior executive Emma Gilthorpe to the helm at a crucial time for the postal service.
Owner International Distributions Services (IDS) said Ms Gilthorpe will join the group on May 1, before becoming Royal Mail chief executive in the summer following a handover with interim boss Martin Seidenberg.
Ms Gilthorpe is currently chief operating officer at Heathrow Airport, where she has worked since 2009.
Midday market snapshot: FTSE 100 back below 8000
12:03 , Daniel O'Boyle
The FTSE fell back below 8000 as rate-cut hopes dimmed slightly in the late morning.
Take a look at the latest snapshot:
London house prices pull ahead in reversal of ‘race for space’
11:37 , Daniel O'Boyle
London now has the fastest rising property prices in the south of England as buyers return to the capital in a reversal of the “race for space” exodus seen during and after the pandemic.
Latest figures from lender Nationwide show the market rose 1.6% in the capital in the first quarter of the year compared with a decline of 2.4% in the last quarter of the 2023.
That left the average cost of a home in the capital standing at £519,505.
Superdry shares tumble after founder drops takeover plans
10:55 , Daniel O'Boyle
Shares in Superdry have plunged to a fresh all-time low after its founder said he does not plan on making an offer to buy the business
Investors reacted to the update which was shared on Thursday evening, before the extended Easter break, by the troubled fashion brand.
Co-founder and chief executive Julian Dunkerton had been in talks with US investors earlier this year about potentially buying the business and taking it private, which had initially given its share price a boost.
Mortgage approvals rise to levels not seen since mini-Budget
10:29 , Daniel O'Boyle
Mortgage approvals topped 60,000 for the first time since the month of the mini-Budget in February, as the interest on new loans continued to slide, the Bank of England revealed today.
There were 60,100 mortgages approved in February, the Bank said, which was the highest figure since September 2022. While Kwasi Kwarteng’s disastrous “fiscal event” occurred in September, the subsequent surge in mortgage rates was mostly in October.
The recovery came as buyers took advantage of the “mortgage price war” between lenders that kicked off 2024, when banks and building societies repeatedly slashed rates.
Ashley Webb, UK economist at Capital Economics, said the rebound in approvals is “unlikely to continue in the near term”, but added that there will be a glut in new activity when the bank of England finally cuts interest rates. The City expects the first cut to come in June.
The “effective interest rate” – the actual interest paid – on newly drawn mortgages fell from 5.2% in January to 4.9% in February. It peaked at 5.34% in November 2023. But with many homeowners still coming off fixed-rate deals agreed at a time of rock-bottom interest rates, the average interest rate on the overall stock of mortgages continued to rise, hitting 3.49%.
Miners drive FTSE 100 to near record, Superdry shares slide
10:21 , Graeme Evans
A surprise bounce above 8000 today left the FTSE 100 index on the brink of the record high set in February 2023.
With commodity-focused stocks up by 3%, the top flight defied expectations for a flat start by adding as much as 0.8% or 62.57 points to stand at 8015.19. It later settled up 25.89 points to 7978.51.
The robust opening to the quarter pushed the benchmark ahead of the record close of 8012 seen just over a year ago and within sight of the same day’s intraday high of 8047.
London’s all-time high territory follows a record-breaking run on Wall Street, where traders are looking for interest rate cuts by the summer.
Today’s session in London also benefited from economic optimism in China as robust manufacturing figures underpinned a rise of 60.7p to 2012.5p for Anglo American and 12.1p to 447.4p by Glencore.
The 1% lift in Brent Crude price to a five-month high above $88 a barrel also meant Shell and BP added 2%, up 63.5p to 2688.5p and 11.4p to 507.1p respectively.
Asia-focused stocks offered their support following a 2% jump for the Hang Seng index, with Prudential up 10p to 753p and Standard Chartered 8.8p higher at 680.2p.
HSBC also improved 2% or 10.7p to 629.7p after completing the first quarter sale of its Canada banking arm, a deal that triggers the June payment of a special dividend.
On the fallers board, Reckitt Benckiser shares reversed another 90p to 4422p after RBC analysts slashed their price target on the Nurofen and Strepsils maker to 5000p.
The FTSE 250 index added 30.81 points to 19,915.54, led by a rise of 6p to 133.4p for Hochschild Mining after gold neared a record high at $2260 an ounce.
The session saw a fresh fall for Superdry following Thursday’s announcement that founder and chief executive Julian Dunkerton had ended moves to take the fashion retailer private.
Ongoing turnaround options include an equity raise supported by Dunkerton, but with this likely to be priced at a material discount the shares fell 50% or 14.3p to 14.5p.
Manufacturing sector grows for first time since 2022
09:44 , Daniel O'Boyle
The UK manufacturing sector grew for the first time in well over a year, according to the latest PMI survey.
The S&P Global UK Manufacturing PMI was narrowly above the 50 mark that separates growth from decline, at 50.3. “Flash” figures, published during the month”, had suggested the sector was still in very slow decline.
Rob Dobson, Director at S&P Global Market Intelligence, said: “The end of the first quarter saw UK manufacturing recover from its recent doldrums. Production and new orders returned to growth, albeit only hesitantly, following yearlong downturns, with the main thrust of the expansion coming from stronger domestic demand.”
Market snapshot with FTSE 100 above 8000
09:15 , Daniel O'Boyle
Take a look at the latest market data
Redx is the latest firm to quit the London markets
09:03 , Simon Hunt
British pharmaceuticals business Redx today became the latest firm to unveil plans to delist from the London stock market after the firm bemoaned the low price its shares were trading it.
The Cheshire-based company, which develops treatments for fibrotic disease and cancer, said it would seek shareholder approval to quit the AIM market and re-register as a private company, adding its listed status meant that it was “liquidity constrained.”
Red chair Dr. Jane Griffiths said: “We believe our current market valuation is not reflective of our track record or future potential and is not conducive to raising the level of capital required for our growing clinical portfolio.
“As a private company we can access a broader universe of specialty investors and, accordingly, a larger quantum of future funding required to execute our strategy and maximise our value.”
Redx shares sunk more than 50% following the announcement. It is the second pharma company to quit the public markets in as many weeks after Manchester-based C4X revealed similar plans last week.
C4X CEO Dr Clive Dix told the Standard: “Everywhere I look the private companies are more valuable than the public ones.
⨓There are lots of funds out there that work in the private sector that like our story and therefore we believe that in the private sector we can grow the business better.”
FTSE 100 hits 8000
08:49 , Daniel O'Boyle
The FTSE 100 has climbed a little further, and topped the 8000 mark for the first time in over a year.
At 8003.92, it is within less than 10 points of a record-high close.
Market snapshot: FTSE just below 8000
08:26 , Daniel O'Boyle
Take a look at our latest market snapshot as the FTSE 100 hovers just below the 8000 mark.
FTSE 100 near record as commodity stocks surge
08:16 , Graeme Evans
The FTSE 100 index has started the new quarter on the brink of record territory, up by a bigger-than-expected 0.5% or 39.91 points at 7992.53.
London’s top flight, which rose by 4% in March and is within sight of the record close of 8012 seen in February 2023, benefited from strong trading by commodity-focused stocks.
Oil giant BP lifted 2% or 8p to 503.7p and Shell by 45p to 2670p after the price of Brent Crude rose above $88 a barrel.
Among the miners, Rio Tinto gained 3% or 131.2p to 5148.2p and Anglo American by 48p to 2000p.
Roller Coaster Tycoon rights sale lifts Frontier Developments
08:08 , Daniel O'Boyle
Struggling video game maker Frontier Developments secured some much-needed cash with the sale of the publishing rights to its 2004 game Roller Coaster Tycoon 3.
The theme park simulation, which continues to bring in profits of $1.5 million per year, was sold for $7 million.
That means Frontier now has £23.4 million in cash. The business struggled last year as it attempted to branch out from “creative simulation” style games, but found that releases such as Warhammer Age of Sigmar and F1 Manager flopped. It has since refocused on the style of games that brought success in the past.
Frontier said its sales since January have been in line with expectations.
The shares jumped by 17.2% to 165.2p in early trading.
Red flag as Revolution bars suspends shares over results delay
07:30 , Daniel O'Boyle
Revolution Bars has suspended trading in its shares, after failing to publish results on time, as questions swirl about the pub chain’s future.
Last week, Revolution confirmed it had been looking at “strategic options” including a sale or venue closures in order to keep itself alive.
Today Revolution said it “continues to evaluate all the options available to it, including engaging with key stakeholders and potential investors with respect to a fundraising.”
The suspension will be lifted when the results are published.
Revolution shares closed at 1.15p on Friday, valuing the business at only £2.65 million.
FTSE 100 seen lower amid US inflation worries, oil near $88 a barrel
07:14 , Graeme Evans
Traders in London are set for a lacklustre start to the week after the Dow Jones Industrial Average and S&P 500 index closed in the red last night.
Their falls of 0.6% and 0.2% respectively came after robust manufacturing figures fuelled concerns about ongoing price pressure in the US economy.
According to IG Index, futures are pointing to a flat start in London with the FTSE 100 index set to open slightly lower at near a one-year high of 7945.
The Nikkei 225 and Shanghai Composite were broadly flat overnight, with the exception being the Hang Seng index after a jump of more than 2%.
The gold price is at $2254 an ounce after setting a record yesterday, while Brent Crude is slightly higher this morning at $87.97 a barrel.
Nationwide: House prices dip in March
07:12 , Daniel O'Boyle
UK house prices dipped in March, after five straight months of rises, but are still slightly higher than they were a year ago.
The average home price across the UK was £261,142, up 1.6% on March 2023 but down 0.2% from February 2024.
In London, prices were up 1.6% quarter-on-quarter at £519,505.
Robert Gardner, Nationwide's Chief Economist, said: ““Activity has picked up from the weak levels prevailing towards the end of 2023 but remain relatively subdued by historic standards. For example, the number of mortgages approved for house purchase in January was around 15% below pre-pandemic levels. This largely reflects the impact of higher interest rates on affordability. While mortgage rates are below the peaks seen in mid-2023, they remain well above the lows prevailing in the wake of the pandemic (as shown in the chart below).”
