19th Aug 2024 07:52
(Alliance News) - Stocks in London are called to open lower on Monday, as investors eye the Jackson Hole meeting which will start later this week.
The is week, the economic calendar is looking pretty quiet. But, investors will see the annual Jackson Hole meeting begin on Thursday.
In early corporate news, Plus 500 lifted full-year expectations after reporting a solid set of half year results.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: called down 0.4% at 8,279.60
----------
Hang Seng: up 0.9% at 17,579.66
Nikkei 225: closed down 1.8% at 37,388.62
S&P/ASX 200: closed up 0.1% at 7,980.40
----------
DJIA: closed up 96.70 points, 0.2%, at 40,659.76
S&P 500: closed up 0.2% at 5,554.25
Nasdaq Composite: closed up 0.2% at 17,631.72
----------
EUR: up at USD1.1043 (USD1.0995)
GBP: up at USD1.2959 (USD1.2899)
USD: down at JPY145.43 (JPY148.24)
GOLD: up at USD2,503.70 per ounce (USD2,486.76)
OIL (Brent): down at USD79.22 a barrel (USD79.91)
(changes since previous London equities close)
----------
ECONOMICS
----------
Monday's key economic events still to come:
10:00 CEST Spain trade balance
12:00 CEST Spain consumer confidence
09:15 EDT US Federal Reserve Governor Christopher Waller speaks
10:00 EDT US Conference Board leading index
----------
Selling prices in the UK dipped in August as would-be buyers put off home-buying plans amid summer holidays, figures on Monday showed. Rightmove's House Price Index showed the average asking price fell 1.5% to GBP367,785 in August, in-line with the 20-year average during the typically quiet month. In addition to seasonal slowness, those who did enter the market in August were likely urgent to sell, pricing more competitively and pushing down prices overall, Rightmove explained. Despite the monthly slide, August prices are 0.8% higher than they were a year ago, and with the market's focus on the Bank of England's recent rate cut, Rightmove expects the market is gathering energy for autumn. "While mortgage rates aren't yet substantially lower since the rate cut, the fact that the long-hoped-for first cut has finally arrived, and mortgage rates are heading downwards, is positive for home-mover sentiment. As the summer holiday season comes to an end, the conditions are there for a more active autumn market," said Rightmove Director of Property Science Tim Bannister. As a result, Rightmove now expects new seller prices to rise 1% over the whole of 2024. It previously expected a 1% drop. While it is an improvement, Rightmove says a few more cuts are needed before home-buyers see a real shift in mortgage rates.
----------
Ukrainian President Volodymyr Zelensky has accused the UK's support for their war effort as having "slowed down" as he called for a removal of restrictions on donated weapons being used inside Russian territory. A government spokesperson said Prime Minister Keir Starmer maintains "unwavering" support for Ukraine, and that position has not changed since incursion into Russia. The government has previously stated its support for Ukraine's "clear right of self-defence against Russia's illegal attacks" provided they are in accordance with international humanitarian law, while maintaining that equipment provided by the UK is intended for the defence of Ukraine. Ukrainian forces have been engaged in a military incursion into Russia's Kursk region since August 6, the aim of which Zelensky revealed on Sunday evening is to create a buffer zone to prevent further attacks by Moscow across the border.
----------
BROKER RATING CHANGES
----------
JPMorgan raises Aviva price target to 565 (545) pence - 'neutral'
----------
JPMorgan cuts Dowlais price target to 74 (90) pence - 'neutral'
----------
COMPANIES - FTSE 100
----------
Barratt waives the UK Competition & Markets Authority condition to merger with Redrow, and expects completion this week. Barratt and Redrow said they are still engaging with CMA to address regulator's "limited concerns". In August, the UK watchdog said Barratt's planned acquisition of fellow housebuilder Redrow raises competition concerns in one local area. The said it has found concerns about the Redrow merger in the area around a Barratt project in Whitchurch. Barratt in February agreed an all-share takeover offer for its smaller peer Redrow, valuing the latter at GBP2.52 billion. "Barratt and Redrow are continuing to engage with the CMA with the objective of agreeing suitable undertakings which would address the CMA's limited concerns and avoid the need for a reference to a full Phase 2 investigation,2 the said on Monday.
----------
COMPANIES - FTSE 250
----------
Plus500 reported that revenue in the first half of 2024 rose 8.1% to USD398.2 million from USD368.5 million a year earlier. Pretax profit rose to USD183.7 million from USD174.9 million. Plus500 said it will pay out an interim dividend of USD0.4686 per share, as well as a special dividend of USD0.5314. The company also announced a USD110.0 million share buyback, comprising an interim buyback programme of USD35.4 million and a special buyback programme of USD74.6 million. Looking ahead, Plus500 said it expects full year results to be ahead of current market expectations, which it says are a revenue of USD697.8 million and earnings before interest, tax, depreciation and amortisation of USD314.6 million. Chief Executive David Zruia said: "Plus500 has delivered strategic, operational and financial progress during H1 2024 and I am proud of what we have achieved. We continue to be guided by our strategic ambitions - to expand into new markets, develop new products and deepen engagement with our customers."
----------
Caledonia Investments said it has invested GBP55 million to buy a majority stake in Direct Tyre Management, an independent provider of outsourced tyre management services to fleet operators. "The acquisition exemplifies Caledonia's strategy of investing in quality, robust and well-established companies, with proven management teams seeking a long-term supportive shareholder," it explained. Headquartered in Blackpool, Direct Tyre has over 100 employees and serves around 250 fleet customers with 285,000 vehicles and 1.3 million tyres under management. Tom Leader, Caledonia's head of Private Capital, said: "DTM's consistent track record of revenue growth and cash generation, together with its market leading position, make the Business an exciting addition to our Private Capital investment portfolio. We believe there are multiple avenues through which to build further on the Business' excellent record and to expand its range of services in the UK and other jurisdictions."
----------
OTHER COMPANIES
----------
Thungela Resources reported that half-year revenue climbed to ZAR16.75 billion, around GBP723.6 million, up 17% from ZAR14.36 billion a year earlier. However, profit for reporting period fell to ZAR1.19 billion, down 61% from ZAR3.01 billion. Thungela lowered its interim dividend to 200 rand cents, down 80% from 1,000 cents. Thungela Resources said performance has been in line with 2024 guidance in South Africa and ahead in Australia. As a result, the company said it is upgrading the production guidance at Ensham.
----------
By Sophie Rose, Alliance News senior reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.