Yahoo Finance FTSE 100 Live: 250 shares revival continues, US unemployment nudges higher
London's leading shares are continuing to show progress amid hopes that global interest rates have peaked.
The latest buying has helped the FTSE 250 index to add another 1% on top of yesterday’s 3% rebound.
Big risers in the second tier included Currys after the retailer sold its business in Greece and Cyprus for £185 million.
FTSE 100 Closes down 0.5%
Friday 3 November 2023 16:37 , Simon Hunt
After an early morning rally, the FTSE 100 closed down lower 0.5% to 7,404 points.
The FTSE 250 fared better, with the index up just over 1% to 17,953. The 250 is up more than 6% this week, one of its best performing weeks in several years.
Richard Hunter, Head of Markets at interactive investor, commented “After a dismal October for markets, November has opened with a different narrative and a very different performance.
"That the Federal Reserve held rates this week was no surprise, but the accompanying comments from Chair Powell lit the fire under stocks, with a noticeable fall in Treasury yields providing further fuel. While leaving the door slightly ajar to further rate rises should inflation unexpectedly tick higher once more, sentiment has switched to the belief that the hiking cycle is now over.
"For the moment markets are basking in a relief rally after a torrid few weeks. The quarterly reporting season is nearing its end and, for the most part, company updates have been reassuring. The outlook comments may have been a little more guarded which could also play into a slowing economy and hopes for a soft landing, but the results themselves have seen a success rate of over 80% in terms of companies beating expectations."
That's all folks
Friday 3 November 2023 16:42 , Simon Hunt
That concludes the Evening Standard City desk's liveblog for this week.
Join us from 7am on Monday for more markets coverage.
City comment: The Big Three brokers must be made to give up cash cow
Friday 3 November 2023 14:24 , Simon English
Is the amount of money investment platforms make from the cash we leave with them on account a scandal? Well, if not that, it is certainly something that shouldn’t be allowed to continue.
As investors, we basically knew we weren’t getting a great deal from them on this. But when interest rates were near zero, the fact that brokers were paying the same didn’t matter. It seemed almost fair enough.
We report today that the big three firms make about £450 million a year from stingy returns that are sometimes as low as 0%.
Since rates are now 5.25% it can’t be sustainable.
US stocks open higher but Apple slides
Friday 3 November 2023 13:39 , Simon Hunt
Stocks made gains in the opening minutes of trade on Wall Street as signs of slower jobs growth raised expectations that the Federal Reserve would not be raising interest rates any further.
The S&P 500 opened higher by 16.45 points, or 0.38%, while the Nasdaq gained 68.66 points, or 0.52% after the opening bell.
However, Apple bucked the trend, with its shares down around 2% after its forecasts for the all-important Christmas trading season came in weaker than hoped.
AJ Bell investment director Russ Mould said the firm's "growth credentials are under the microscope once again as its sales drop for a fourth straight quarter, the longest slide in more than two decades.
"Chinese sales were markedly below expectations and the political risks in that market are undoubtedly becoming more of a headache for Apple."
“Any difficulties the business is having should be kept in perspective but, with household finances battered by two years of higher borrowing costs and rampant inflation, selling more of the kind of expensive consumer electronic kit in which Apple is specialist is always going to be a tall order."
US unemployment nudges higher in October
Friday 3 November 2023 12:40 , Simon Hunt
Unemployment in the US nudged higher to 3.9% in October, government data just out shows, ahead of market expectations of 3.8%.
The US added 150,000 jobs in October, according to government nonfarm payrolls data, significantly behind the market consensus of 180,000.
Neil Birrell, Chief Investment Officer at Premier Miton Investors, said: “The October employment data came in weaker than expected, with the previous two months revised down as well.
"When considered alongside weaker than expected wages data, this all backs up the Fed’s stance.
"The US economy is in good shape and seems to be slowing nicely, although it is too early for the Fed to declare victory. Those who have been piling into Treasuries and equities in the last two months are likely to continue to do so for now.”
Dishoom's new debt facility
Friday 3 November 2023 12:31 , Simon Hunt
Dishoom has arranged new debt facilities in signs the Indian restaurant chain is eyeing further expansion.
The London-based business has a secured a debenture with Barclays bank, filings with Companies House show. Dishoom did not respond to a request for comment over the purpose of the debt. In its annual report, Dishoom said it “continues to evaluate potential new locations across the UK”.
Founded in 2010, Dishoom operates ten sites across the UK, of which the majority are in London. It is poised to open its eleventh shortly, at a 235-seater venue at Battersea Power Station.
FTSE 250 recovery continues, Smith & Nephew tops FTSE 100
Friday 3 November 2023 10:05 , Graeme Evans
The upturn for the FTSE 250 index has continued after the UK-focused benchmark added another 0.9% or 154.46 points to 17,921.76
Big risers include Wizz Air up 7% or 118.5p to 1770p, easyJet 6.9p higher at 384.8p and pubs chain Mitchells & Butlers 5.8p stronger at 224.8p. as
The FTSE 250 was one of October’s worst performing indices but speculation that global interest rates have finally peaked is driving a revival in sentiment, with the second tier index up 3% on Thursday.
The FTSE 100 index rose 0.2% or 17.21 points to 7463.74 in today’s session, benefiting from further support from the strongest performers in yesterday’s 1.4% rise.
They included Smith & Nephew, which added another 4% or 35.8p to 997.8p after the medical devices firm earlier upgraded full-year revenues guidance. Ocado also put on a fresh 21.4p to reach 530.6p.
Among other big risers, Ladbrokes owner Entain returned to form after falling 6% yesterday on the back of some customer-friendly sporting results. The shares rebounded 31.9p to 916.3p, giving a leg up to rival Flutter Entertainment up 400p to 13,745p.
FTSE 100-listed Auto Trader shares also rose 1.2p to 626.2p after Panmure Gordon analysts highlighted a target price of 695p.
In the FTSE All-Share, Wickes gained 2.4p to 133.9p as the home improvement retailer reported some reassuring trends in its third quarter trading update.
Overall like-for-like sales fell 0.2% in the three months but the core business of trade and DIY customers saw growth in volumes for the first time since the second quarter of 2021.
Currys shares spiced up by £175 million Greek sale
Friday 3 November 2023 09:41 , Michael Hunter
Shares in fridges-to-phones retail giant Currys rose today after the company sold its Greek business for £175m.
The Acton-based company said the sale meant it would be able to focus on its bigger markets of the UK, Ireland and the Nordic countries. The buyer of the chain, which trades as Kotsovolos, is Greece’s Public Power Corporation, the country’s biggest electricity utility.
Currys has been grappling with the impact of heavy discounting in Sweden Denmark and Norway which has hit its Nordic chain hard, as rival retailers there offloaded stock withdrawn from Russian markets after Moscow’s invasion of Ukraine.
A long run of price cuts led to profit warnings and cost cutting there, as well as new chief executive for the region, Fredrik Tønnesen.
Group CEO Alex Baldock called today’s deal “an excellent outcome for Currys and for our shareholders. It recognises Kotsovolos's value and accelerates its realisation.”
The FTSE 250 firm said it will use the proceeds to pay down debt and said it would talk to trustees of its employee pension fund about reducing its deficit.
Currys shares added 2p to 48p, a rise of almost 4%, one of the best gains on London’s second-tier stock index.
Looking Glass shows NFT decline
Friday 3 November 2023 09:10 , Simon Hunt
The scale of the decline of the NFT market was laid bare today after London-listed crypto firm Looking Glass Labs posted a 93% decline in sales of the digital collectibles.
Looking Glass, which is headquartered in Vancouver, said revenues from NFT sales fell to $434,000 in the year to end July, down from $6.2 million the previous year, while royalty income, the fee collected when NFTs are sold to a third party, collapsed from $497,000 to just $5,534.
The firm posted a loss of $12.5 million for the year. It said the total value of its assets had plunged almost 90% as it sought to bear down on its heavy debts by issuing more shares.
A study by crypto gambling firm DappGambl in September found that of 73,257 NFT collections it identified, an eye-watering 69,795 of them were now worthless.
The £1.3bn broker interest rate "scandal"
Friday 3 November 2023 08:48 , Simon English
STOCKBROKERS that sell shares to the general public are raking in around £1.3 billion a year from paying zero or derisory rates of interest on the cash those investors hold on account.
The top three investment platforms – Hargreaves Lansdown, Abrdn interactive investor and AJ Bell -- made a combined £444 million last year alone from this in what one leading investment manager calls “an absolute scandal”.
Research by the Evening Standard and SCM Direct shows that the brokers income from just holding cash have rocketed as interest rates rose.
These come on top of what the brokers charge to place a share trade, up to £12 a time. Profit margins for the investment platforms are dramatically higher than almost any other industry at 30% sometimes.
Supermarkets and energy giants typically make around 4%.
FTSE 100 higher amid Entain recovery, Currys up 6%
Friday 3 November 2023 08:45 , Graeme Evans
London’s blue-chip shares have built on yesterday’s strong performance, with the FTSE 100 index up another 19.98 points at 7466.51.
Smith & Nephew is the best performing stock after adding 28.4p to 990.4p, having risen sharply on Thursday thanks to an upgrade to full-year revenues guidance.
The session also saw a return to form for Entain shares after the Ladbrokes owner fell 6% in the previous session due to a run of customer-friendly sporting results. The shares rebounded 25.2p to 909.6p, helping rival Flutter Entertainment up 360p to 13,705p.
Peak interest rate hopes pushed the FTSE 250 index more than 3% higher yesterday, with the mid-cap benchmark up a further 0.9% or 155.4 points to 17,922.70 this morning.
Electricals chain Currys led the way after it revealed a deal to sell its operations in Greece and Cyprus. Shares jumped 6% or 2.6p to 48.6p.
Shipping giant Moller-Maersk sets course for 10,000 job cuts
Friday 3 November 2023 08:11 , Michael Hunter
AP Moller-Maersk, said it would cut its workforce to under 100,000 people today after a drop in revenue.
The Denmark-based global shipping line employs about 110,000 people and the cuts will save around $600 million in 2024.
CEO Vincent Clerc said the industry was "facing a new normal with subdued demand, prices back in line with historical levels and inflationary pressure".
He also said the company had "seen overcapacity across most regions" since the summer.
FTSE 100 seen higher ahead of US job report, Apple shares fall
Friday 3 November 2023 07:16 , Graeme Evans
Apple cast a cloud over yesterday’s strong Wall Street performance as the iPhone maker gave cautious guidance on Christmas quarter sales.
Shares fell 3% in dealings after the bell, despite the California-based firm beating expectations for sales and earnings in its most recent quarter.
The S&P 500 index earlier rallied by 1.9% and the Nasdaq Composite 1.8% as investors reacted to hopes that US interest rates have peaked.
The turnaround in global stock market conditions also saw the mid-cap FTSE 250 index rebound by more than 3% and the FTSE 100 index by 1.4%.
CMC Markets expects the top flight to add another 33 points to 7479, but with this afternoon’s US non-farms payrolls data set to test the narrative that rate rises are over.
Economists are expecting an unchanged unemployment rate of 3.8% and the addition of around 180,000 jobs compared with the bigger-than-expected eight-month high of 336,000 for September.
Recap: Yesterday's top stories
Thursday 2 November 2023 23:24 , Simon Hunt
Good morning. Here's a summary of our top stories from yesterday:
Bank of England keeps rates on hold and publishes new economic forecasts. In an exclusive piece for the Standard, Governor Andrew Bailey explains the decision.
Sainsbury’s says food inflation “is coming down” as it makes first half profits of £340 million with grocery sales up 10%. But clothing sales down 8% amid “topsy turvey” weather
Shell delivers third quarter profit of $6.2 billion and launches $3.5 billion share buyback. Has now delivered or promised $30 billion to shareholders since the Ukraine invasion
Fintech giant Revolut apponts new UK CEO
