Market snapshot as trading opens in London
As trading begins in London, here’s a look through your key market indicators this morning.
Click through the different buttons to view the different data.
FTSE 100 higher as BT steadies, upgrade lifts Smiths Group
A strong session for investors in the US and Japan has set the tone for a positive start to trading in London, with the FTSE 100 index 16.80 points higher at 7759.10.
Risers included industrial conglomerate Smiths Group, which lifted 20.5p to 1725p after a third quarter trading update included improved full-year guidance for around 10% organic revenue growth. The figure had been 4-4.5% at the start of the year.
BT Group steadied at 141p after yesterday’s results-day hammering, while Burberry lost another 39p to 2350p.
The FTSE 250 index edged 20.42 points higher to 19,318.67, with Aston Martin Lagonda up another 6p to 266p following Thursday’s disclosure of a major investment by Chinese carmaker Geely.
Over-55s fashion retailer Unbound looks for rescue sale
AIM-listed online fashion for over-55s retailer Unbound is looking to sell itself as it warns that it is unlikely to be able to pay all its obligations at the previously agreed time.
The business warned last week that sales were likely to be lower than anticipated, and at the same time, discussions over new funding had fallen through.
It said that this meant it was now likely to need to waive or defer some of its debts in the short-term, and had opened discussions with banks about this.
“As a consequence of the factors described above, the board has also decided to initiate a formal review of strategic options available to the group, including a formal sale process, pursuant to which the board will consider the options available to maximise value for the company’s shareholders and the group’s other stakeholders,” its board said.
Nikkei leads way as stock markets rally, sterling lower
The US dollar has continued to strengthen amid optimism over the progress of debt ceiling negotiations and after comments from Federal Reserve officials pushed back against the case for a pause in interest rates.
The pound today dipped below $1.24, which compares with a one-year high of near to $1.27 on 10 May when traders began pricing in further Bank of England rate hikes.
The positive signs that the US will avoid a debt default have also benefited Wall Street shares, with the S&P 500 index up by 0.9% at last night’s close to a near nine-month high.
Cyclical and tech stocks were in demand as the Nasdaq Composite also continued its recent outperformance with a gain of 1.2%.
In Asia, Japan’s Nikkei led the way as the weak yen and strong domestic earnings lifted the benchmark for the seventh session in row to the highest level since 1990. Hong Kong’s Hang Seng missed out, however, falling 1% on the back of disappointing results from Alibaba.
The FTSE 100 index added 0.3% yesterday and is expected by CMC Markets to open 20 points higher at 7762.
Consumer confidence continues to recover despite living cost pressures
Consumer confidence in the year ahead is continuing to recover despite persistent cost-of-living pressures, a long-running survey suggests.
GfK’s Consumer Confidence Index rose by three points in May to minus 27, the fourth monthly increase in a row from January’s minus 45.
Confidence in personal finances over the coming 12 months saw a “robust” five-point jump to minus 8 – 17 points higher than this time last year.
Read more here
Hong Kong stocks slide on Alibaba sales miss
Stocks fell in Hong Kong this morning after Alibaba’s fourth-quarter sales miss added to fears of a slowdown in China’s post-Covid recovery.
The e-commerce business posted a 3% drop in its domestic commerce sales, while its cloud division saw its first ever year-on-year revenue dip. Alibaba said it would plan an IPO spin-off for its cloud business, and would consider separate listings for its logistics and grocery businesses.
The Hang Seng China Enterprises Index fell 2.=4%, while Alibaba shares fell as much as 5.4%, their biggest single-day fall in almost three months.
