7th Aug 2024 09:07
(Alliance News) - Stock prices in London opened higher on Wednesday, with housebuilders at the top of FTSE 100, following news that UK house prices jumped in July.
The FTSE 100 index opened up 74.16 points, 0.9%, at 8,100.85. The FTSE 250 was up 148.10 points, 0.7%, at 20,515.80, and the AIM All-Share was up 3.24 points, 0.4%, at 762.91.
The Cboe UK 100 was up 1.1% at 808.82, the Cboe UK 250 was up 0.8% at 17,967.52, and the Cboe Small Companies was up 0.1% at 16,692.62.
In European equities on Wednesday, the CAC 40 in Paris was up 0.8%, while the DAX 40 in Frankfurt was up 0.7%.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.8%, and both the S&P 500 and the Nasdaq Composite up 1.0%.
"Asia-Pacific markets bounced back impressively on Wednesday, catching a wave from Wall Street's rally that ended a tense three-day losing streak. The market mood seems as changeable as the weather, with a dramatic shift sparked by a major rally in Japanese stocks on Tuesday," said SPI's Stephen Innes.
The Bank of Japan's deputy governor said Wednesday that officials would stick to their ultra-loose monetary policies given market volatility, sparking a big drop in the yen, while stocks rose.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 1.2%. Against the yen, the dollar was trading at JPY146.51 early Wednesday, higher compared to JPY144.70 late Tuesday.
Equities saw wild swings through the morning, with the benchmark Nikkei index finishing the session more than two percent higher, having been as much in the red after the open.
The yen has appreciated sharply since Japan's central bank last week hiked interest rates for only the second time in 17 years – indicating plans for more if the economy performs as officials expect.
But in a speech on Wednesday morning, BoJ Deputy Governor Shinichi Uchida took a more dovish stance.
"I believe that the Bank needs to maintain monetary easing with the current policy interest rate for the time being, with developments in financial and capital markets at home and abroad being extremely volatile," he said.
In China, the Shanghai Composite was up 0.1%, while the Hang Seng index in Hong Kong was up 1.2%. The S&P/ASX 200 in Sydney closed up 0.3%.
The pound was quoted at USD1.2698 early on Wednesday in London, lower compared to USD1.2711 at the equities close on Tuesday. The euro stood at USD1.0924, lower against USD1.0930.
In early economic news, annual growth in UK house prices quickened last month, numbers from mortgage lender Halifax showed Wednesday.
UK house price growth quickened to 2.3% in July annually, picking up speed from a 1.6% increase in June. This is the highest annual growth rate recorded since January.
House prices increased by 0.8% in July on-month, after falling by 0.2% in June from May. The monthly rise in July was expected to be 0.3%, according to FXStreet-cited consensus.
The average UK house price in July stood at GBP291,268, up from GBP289,042 in June.
"Research suggests that the property market is not traditionally affected by general elections, but it is positive to see that the recent election has not had a negative impact. We are continuing to see a month-on-month rise in house prices, which is hopefully the sign of an upward trend developing for the rest of the year. The market certainly appears to be showing signs of resilience," said Daniel Austin, chief executive & co-founder at ASK Partners.
"Everyone is waiting in anticipation of what the new government will do to drive construction of new homes and unlock the planning system, and it is likely that initiatives announced in the coming months will give the market a further boost."
On the back of the data, housebuilders were trading higher. Persimmon, Barratt Developments and Taylor Wimpey were up 2.4%, 2.0%, and 1.8%, respectively.
On the other hand, WPP lost 2.2%.
The London-based advertising group reported that revenue in the first half of 2024 was flat compared to last year, coming in at GBP7.23 billion. Pretax profit fell 3.8% to GBP525 million from GBP546 million.
WPP left its dividend unchanged at 15.0p.
Looking ahead, WPP lowered its outlook for the year, expecting like-for-like revenue less pass-through costs growth of -1% to 0%. It previously expecting growth of 0% to 1%.
In a separate announcement, WPP said it has sold its majority stake in FGS Global at an enterprise value of USD1.7 billion. It will sell its shareholding to Kite Bidco, an entity controlled by investment funds managed or advised by Kohlberg Kravis Roberts.
In the FTSE 250, TP ICAP jumped 10%.
The London-based interdealer broker reported that revenue in the first half of the year edged up to GBP1.14 billion from GBP1.13 billion a year earlier. Pretax profit surged 32% to GBP120 million from GBP91 million.
The company left its interim dividend unchanged at 4.8p, and also announced a new GBP30 million share buy back.
"As ever, our second half outlook is largely subject to market conditions. Ongoing geopolitical uncertainty should continue to drive volatility that is supportive for Global Broking and Energy & Commodities, while the prospect of some interest rate reductions should be positive for Liquidnet. Parameta Solutions will continue to benefit from the growing demand for OTC pricing data," TP ICAP added.
4imprint shed 5.5% in early trade.
The London-based marketer and distributor of promotional products reported that in the 26 weeks ended June 29, revenue rose to USD667.5 million from USD635.5 million a year earlier. Pretax profit jumped 11% to USD73.0 million from USD66.0 million.
4imprint upped its interim dividend by 23% to 62.7p from 50.8p.
"Based on our first half financial results and recent internal forecasts, the board expects that 2024 full year group revenue will reflect a growth rate similar to the first half of the year. As a result of improving financial dynamics in the business, particularly higher gross profit percentage and the flexibility of the marketing mix, it is expected that profit before tax for the 2024 full year will remain within the current range of analysts' forecasts," said Chair Paul Moody.
"The board is confident in the group's ability to manage through the current market conditions, blending resilient near-term financial results with attractive prospects for significant further organic growth over the medium term."
Brent oil was quoted at USD76.64 a barrel early in London on Wednesday, up from USD76.46 late Tuesday. Gold was quoted at USD2,389.10 an ounce, higher against USD2,386.99.
By Sophie Rose, Alliance News senior reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.