Yahoo Finance FTSE 100 Live: Benchmark US treasury yield hits 5%, blue-chips close lowest in eight weeks
FTSE closes at 7,374.83
Monday 23 October 2023 16:36 , Daniel O'Boyle
The FTSE 100 closed at 7,374.83 today, its lowest level in almost two months.
The index ended its three-day streak of 1% falls, but was down again.
Big fallers included Fresnillo and Astrazeneca.
Market snapshot: Gilt yields ease, blue-chip shares still down
Monday 23 October 2023 15:50 , Daniel O'Boyle
Gilt yields have returned to below where they startedthis morning, but the FTSE 100 is still down.
Take a look at our full market snapshot.
UK housebuilder giants set for tumble in annual completion numbers, analysis shows
Monday 23 October 2023 15:29 , Daniel O'Boyle
Home sale completions by the UK’s largest housebuilders could tumble by over 18,000 this year as a cocktail of headwinds hammer the market, new research reveals.
The Evening Standard looked at published figures from RBC Capital Markets on its estimates for completion numbers from FTSE 100 and FTSE 250 companies (Vistry was not included as the timing of its 2022 tie-up with Countryside could skew the results).
In total the seven businesses looked at (see table below), which include housebuilder giants such as Barratt, Persimmon and Taylor Wimpey, could sell 18,485 fewer homes in their current financial years, equivalent to a 27% plunge.
US market snapshot with Wall Street shares lower
Monday 23 October 2023 14:49 , Daniel O'Boyle
US stocks are lower in early trading after the 10-year Treasury yield hit 5% earlier today.
The S&P 500 is down 0.7% at 4,196.16, while the Dow Jones is down 0.6% at 32,929.81. The Nasdaq is down 0.9% at 12,863.16.
Big fallers include Chevron, after the oil supermajor announced a $54 billion acquisition of Hess.
Market snapshot
Monday 23 October 2023 14:00 , Daniel O'Boyle
The FTSE 100 has risen off of the lows it reached earlier this morning, but is still down for the fourth straight day.
Gilt yields have similarly eased back after the 30-year gilt yielded as high as 5.20%, but remain around 25-year highs.
British steel ‘the future, not the past’, Starmer vows during Port Talbot visit
Monday 23 October 2023 13:17 , Daniel O'Boyle
Sir Keir Starmer said that he had “productive” talks during a visit to Port Talbot, as he promised to make the UK a world leader in clean green steel.
The Labour leader visited Tata’s giant Port Talbot plant in South Wales, promising that the industry was “the future, not the past”.
Sir Keir, who was meeting with representatives of the three main steelworkers’ unions – Community, GMB and Unite – during his visit, made the vow as the industry faces job cuts as part of the drive to lower emissions.
City Voices: We’re becoming a nation of shoplifters
Monday 23 October 2023 12:51 , Daniel O'Boyle
Susannah Streeter says shoplifting has been on the rise since before the cost of living crisis
Forget the track, the most impressive sprinters are often found in the high street these days, racing round corners, laden with shopping bags of steak and smoked salmon.
My most recent glimpse of a shoplifter was in Liverpool, between sessions at the Labour Party conference, shooting out from a Tesco, fired up on adrenaline. But I’ve seen similar scenes unfold in Bristol, London and sleepy towns in Devon. Often thieves are much more furtive, slipping an extra item or two into their bags, unscanned.
The latest retail sales are being scoured through for signs of fresh high street malaise, though they won’t show the financial pain this epidemic of shoplifting is having on the big names. According to the centre for retail research, the sector is losing £3.5 million per day in stolen goods, with everything from cava to condoms targeted by thieves.
Energy price fears ease
Monday 23 October 2023 10:39 , Simon English
GOLD and oil prices dipped today as investors eyed strong looking US economic data after a weekend that offered some relief about the state of the disaster in Gaza.
Last week saw investors race to the safest haven assets and to bet on a jump in energy prices. Shares were sold sharply.
This morning, as a small number of trucks offering humanitarian aid crossed into Gaza from Egypt, oil prices eased, with Brent crude down $1 to $91. Fears that it would rocket past $100 a barrel have eased for now.
Vandana Hari of oil market analyst Vanda Insights, said: “There is some relief in the oil market that Israel is holding off on a planned ground incursion of northern Gaza to negotiate a release of hostages, which opens up a window for diplomacy.
A ground siege is seen as a potential trigger for widening the Israel-Hamas conflict into the Middle East region, the factor behind crude’s risk premium over the past fortnight.”
Gold, silver and copper prices all also fell, hitting mining shares. Gold dropped nearly 1% to $1.965.89 per ounce.
The FTSE 100 mostly held its own, off just 21 points at 7382. Consumer stocks such as Next and Ocado all enjoyed a bounce.
Steve Clayton, head of equity funds at Hargraves Lansdown, said: “European futures markets are suggesting a small sigh of relief. With no further protagonists joining the Israeli/Hamas conflict, markets look to be steadying, with little news flow from the corporate sector this morning to change investors’ minds in either direction.”
Chinese stocks are still under pressure with investors nervous about China’s apparent manoeuvring against the US
With the US economy looking strong, demand for dollars remains high.
US 10-year treasury yields hit 5% overnight. Closer to home, 30-year gilt yields hit another 25-year high, at 5.160%.
Victoria Scholar, Head of Investment, interactive investor said: “Sentiment and risk appetite appear to have picked up slightly this morning with safe-haven gold retreating from five-month highs and oil prices easing thanks to diplomatic efforts in the Middle East.”
Bond sell-off continues as US benchmark yield hits 5%
Monday 23 October 2023 10:21 , Daniel O'Boyle
The10-year US Treasury Bond is yielding more than 5% for the first time since 2007, while UK long-dated gilt yields continue to soar.
The 10-year treasury is yielding 5.004%, after a rise of 9 basis points so far today, as continued global political uncertainty affects the benchmark asset.
In the UK, the yield on a 30-year gilt - historically seen as one of the safest assets on the planet - was already at its highest since 1998, but has risen even further, to 5.188%. 10-year yields are again approaching their highest level since 2008.
London benchmarks remain under pressure, Keller jumps 14%
Monday 23 October 2023 10:13 , Graeme Evans
Upgraded guidance by ground engineer Keller today provided some cheer after a run of profit warnings across the wider London market.
Keller jumped 14% or 97.1p to 770.1p after forecasting a record performance based on guidance for annual operating profits “materially ahead” of City hopes.
The upgrade has been driven by North America and Australia operations, with profitability in Europe squeezed by competitive pricing conditions and some challenging projects.
Keller was one of the few bright spots during another poor session for the FTSE 250 index after it set a year low on Friday.
The mid-cap benchmark fell 84.41 points to 16,948.32, while the FTSE 100 declined 34.09 points to 7368.05 at the start of a busy week of corporate earnings on both sides of the Atlantic.
About 40% of the S&P 500 index by market value is due to report this week, including four of the “Magnificent Seven” stocks in Alphabet, Amazon, Meta Platforms and Microsoft.
One of the biggest disappointments so far has been electric car maker Tesla, with shares down 16% in their worst week since last December.
The stock fell 4% on Friday as it emerged that China planned curbs on natural graphite exports used for electric vehicle batteries.
One of the likely beneficiaries of Beijing’s move is London-listed Tirupati Graphite as one of few current producers of flake graphite outside China.
Shares in the company, whose operations include mining and processing in Madagascar, today jumped 18% or 2.5p to 16.5p on the potential boost to prices and long-term demand.
On a similar note, Pensana shares rose 13% or 3.2p to 27.2p after it revealed a £4 million government grant offer towards the building of a rare earth oxide separation plant in the Humber.
The $250 million Saltend project is seen as an important step in supporting the UK automotive supply chain and other parts of the green economy.
EU turns to Elon Musk for satellite launches: WSJ
Monday 23 October 2023 09:53 , Simon Hunt
Elon Musk’s rockets business is making its first major forayinto Europe after SpaceX signed a deal to launch the EU’s flagship Galileo satellites.
The launches of up to four satellites are set to take placenext year pending sign-off of the deal by the EU Commission and EU memberstates and will deploy SpaceX's Falcon 9 rocket which will lift off in the US,according to the Wall Street Journal.
The proposed launches mark the first time SpaceX has been askedto launch a satellite by EU institutions containing classified equipment. Thebloc’s previous satellite launches took place in French Guiana.
To date, the EU has been reluctant to rely on a US businessto launch its satellites, but a combination of delays to its own rocket programme and an aversion to working with Russia has constrained options.
European Space Agency director Javier Benedicto said he didnot expect the EU to continue to rely on SpaceX beyond the four planned launches.
Kantar: Lidl third-biggest supermarket in London
Monday 23 October 2023 09:14 , Michael Hunter
Lidl has overtaken Asda to become London’s third-biggest supermarket today, alongside status as the capital’s fastest-growing chain, according to market research firm Kantar.
The German discounter pointed to data from industry analyst Kantar showing Lidl now has a 9.1% share of the London grocery market for the week ending October 1. It also said that was more than double the share of any other cut-price supermarket.
Lidl has big ambitions for its presence inside the M25, with investment plans worth £500 million and “an unwavering commitment to ensuring that all Londoners have a Lidl store within easy reach.”
And it will not run convenience store formats with higher prices at any of its 100 stores in the capital. It has identified high priority areas for its expansion, in Earls Court, Kings Cross and Knightsbridge.
Ryan McDonnell, Lidl’s UK CEO, said: “Becoming the third-largest supermarket in London reinforces our dedication to ensuring that everyone can eat affordable, high quality food, no matter where they live.”
Asda said that Lidl has "more than double" the number of stores than it does inside the M25, meaning "it's not surprising their market share has nudged above ours."
It also said it planned 17 to open 17 more convenience stores by the end of the first quarter of next year
FTSE 100 stuck in reverse, Vistry shares down 5%
Monday 23 October 2023 08:28 , Graeme Evans
Pressure on the FTSE 100 index is continuing, with London’s top flight down another 14.12 points at 7388.02 amid weakness for commodity-focused stocks.
Copper miner Antofagasta lost 23.5p to 1300.5p, while lower oil prices meant BP and Shell have given up some of their recent gains with declines of 8.3p to 537.1p and 29.5p to 2698p respectively.
Stronger retail stocks offered some support as B&Q owner Kingfisher improved 2.5p to 230.7p and JD Sports Fashion added 1.1p to 127.4p.
The FTSE 250 index, which closed last week at its lowest level in over a year, stood 5.94 points higher at 17,038.67. Ground engineering firm Keller led the risers board after forecasting underlying profits materially ahead of current market expectations.
Its shares returned to where they were at the end of September, up 12% or 82.1p to 765.1p. Vistry headed the other way as the construction firm’s weaker guidance left shares 5% or 37p cheaper at 688p.
Mission Group shares plummet amid debt warning and cancelled dividend
Monday 23 October 2023 08:16 , Simon Hunt
Shares in Mission Group tumbled as much as 58% this morning as the digital marketing firm warned on its debt and cancelled its dividend.
The company said it had ramped up the use of its credit facility in recent months and said it feared it would fail to meet its current banking covenant limits by the end of the year. It has suspended its planned November dividend in a bid to conserve cash.
"Whilst performance in the first half of 2023 was broadly in line with the Board's expectations and achieved despite considerable industry-wide headwinds, recent trading has rapidly become more challenging than previously anticipated," Mission Group said.
Vistry expects £40m profit hit, 200 job cuts, from shutting private housebuilding arm
Monday 23 October 2023 07:40 , Daniel O'Boyle
Housebuilder Vistry today revealed it expects a £40 million hit to its profits and the loss of 200 jobs as it shuts down its struggling private housebuilding arm to focus solely on affordable housing partnerships.
The FTSE 250 firm revealed plans to close down its private housebuilding arm last month, as its private sales arm was hit by skyrocketing interest rates. It will merge the legacy Vistry and Countryside businesses into one segment and end private housing sales, which brought in £1.4 billion in first-half revenue.
Today, it revealed the slowdown in private sales has continued.
“We have not seen the seasonal increase in private sales since September that we had expected", Vistry said
The builder has now revealed the impact of the transition in strategy on its profits and workforce. Its profits are set to be £40 million lower because of the change, and it will cut 200 jobs, having already laid off 4% of its more than 3,000 staff when it merged with Countryside.
Markets steady ahead of big cap earnings, oil lower
Monday 23 October 2023 07:12 , Graeme Evans
Corporate earnings on both sides of the Atlantic are set to provide a further test for stock market sentiment after last week’s run of big losses.
The results diary includes the banking giants Lloyds and Barclays, while Alphabet and Amazon are among the mega cap technology names reporting on Wall Street.
This week's figures come with markets on edge due to the Middle East conflict and prospect that interest rates will stay high throughout 2024.
The FTSE 100 index has posted three successive falls of 1% but CMC Markets expects London’s top flight to open broadly unchanged at 7402 this morning.
A steadier session is also expected in the US after last week’s fall of 3% for the tech-focused Nasdaq Composite and 2% for the S&P 500 index.
The Brent Crude oil price, which last week spiked on fears of Middle East supply disruption, is 1% lower at $91.21 a barrel. Gold is down slightly at $1976 an ounce.
Recap: Friday's top stories
Monday 23 October 2023 06:29 , Simon Hunt
Good morning. Here's a summary of our top headlines from Friday:
Shell offloads hundreds of contractors in latest sign of new CEO shake-up to drive up shareholder returns
High street “may already be back in recession”, experts warn, as retail sales fall by 0.9%
Public borrowing - government borrowed less than expected in September and £1.6bn less than a year ago; first year-on-year fall in borrowing in any month since September 2022. £14.3 billion borrowed, lower than the £18.3 economists forecast
Average hotel rates at IHG now almost 15% ahead of pre-pandemic levels, as revenue per available room grows another 10%. UK rev per room up 18%
Titanic shipbuilder Harland &Wolf lands £61 million contract to maintain SeaRose production vessel which works off Newfoundland
And...the bank joke of the week comes from David Postings, the CEO of UK Finance