19th Nov 2024 09:07
(Alliance News) - Stock prices in London opened higher on Tuesday, as investors wait for eurozone inflation data.
The UK government is having a busy week. Downing Street has confirmed that the UK is set to relaunch trade talks with India, while ministers continue to face calls from farmers and opposition parties to scrap its changes to agricultural inheritance tax. The National Farmers' Union is holding a mass lobby of MPs with 1,800 of its members against the government's plans to impose inheritance tax on farms worth more than GBP1 million.
Also, a group of Britain's largest retailers has warned jobs will be lost and prices will rise due to the national insurance rise announced in October's budget. More than 70 businesses including Tesco, Asda and Sainsbury's voiced their concerns in an open letter to Chancellor Rachel Reeves, saying the changes mean price hikes are a "certainty".
Finally, data from the Office for National Statistics shows 316,000 new businesses were created in 2023, down 6.2% from 337,000 the year before. This means the rate of new businesses opening hit its lowest level since 2010, at 11% of all active firms.
"Recent budget decisions unfortunately undermine the UK's business environment, disincentivising employment and reducing investment through the impact of higher taxes on business costs," commented Anna Leach, chief economist at the Institute of Directors. She added: "If the government wants to get higher growth, it'll need a vibrant business sector to deliver it."
The FTSE 100 index opened up 11.20 points, 0.1%, at 8,120.52. The FTSE 250 was up 13.51 points, 0.1%, at 20,408.92, and the AIM All-Share was down 0.45 points, 0.1%, at 727.10.
The Cboe UK 100 was up 0.2% at 816.33, the Cboe UK 250 was up 0.1% at 17,914.66, and the Cboe Small Companies was up 0.3% at 15,853.27.
"UK markets have a spring in their step with the FTSE 100 up 0.3% in early trading, building on a good session yesterday that saw the UK’s largest stocks outperform most major European peers," said Hargreaves Lansdown's Matt Britzman. "Broader European markets have also had a positive open as investors look ahead to inflation figures for October and comments from the European Central Bank for any insights into the monetary policy outlook."
Imperial Brands was among leading large-caps, up 1.8%.
The tobacco firm reported decreased profit and revenue but raised its full-year dividend to 153.42 pence.
Diploma led the FTSE 100 laggers with a 4.1% loss despite revenue increasing 14% and pretax profit rising 13% in its latest year.
The technical products and services supplier also lifted its final dividend to 42p and said it was confident it can deliver strong organic growth for the current year.
Bodycote led the FTSE 250, rising 5.4%.
The heat treatment service provider said revenue in the year's first 10 months rose 1.0% organically to GBP643.4 million, although conditions remain soft in Industrial Markets and Automotive.
Bodycote also warned that the end market environment remains mixed, and noted challenging conditions.
In European equities on Tuesday, the CAC 40 in Paris was down 0.4%, while the DAX 40 in Frankfurt was down 0.5%.
The pound was quoted at USD1.2655 early on Tuesday in London, slightly up compared to USD1.2649 at the equities close on Monday. The euro stood at USD1.0569, almost flat against USD1.0572. Against the yen, the dollar was trading lower at JPY153.54 compared to JPY155.01.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 0.5%. In China, the Shanghai Composite was up 0.2%, while the Hang Seng index in Hong Kong was up 0.4%. The S&P/ASX 200 in Sydney closed up 0.9%.
In the US on Monday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.1%, the S&P 500 up 0.4% and the Nasdaq Composite up 0.6%.
"After last week's whirlwind of activity, US markets took a breather yesterday evening with a more subdued session," said HL's Britzman. "While the market's tendency to rebound remained intact, investor caution lingered as they weighed the implications of Trump appointees and potential tariff policies. With homebuilder sentiment hitting a seven-month high and major earnings from Walmart and Nvidia on the horizon, yesterday’s measured tone reflected a market waiting for more direction."
Brent oil was quoted lower at USD72.59 a barrel early in London on Tuesday from USD73.08 late Monday.
"In energy, US crude posted a 3% rally yesterday, but the bulls could find the USD70pb offers hard to clear, as the amply global supply/weak global demand outlook remains supportive of the bears, said Swisssquote's Ipek Ozkardeskaya. "The short-end of the market shifted into contango, another signal that investors price in an oversupplied oil market, which could cap the upside potential of short-term price rallies."
Gold was quoted higher at USD2,623.56 an ounce against USD2,610.04.
Still to come on Tuesday's economic calendar, as well as the European releases there are building permits and Redbook index data from the US.
By Emma Curzon, Alliance News reporter
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