3rd Sep 2024 08:46
(Alliance News) - Stock prices in London opened higher in London on Tuesday morning, following retail sales data, and ahead of a PMI print from the US later in the day.
The FTSE 100 index opened 6.38 points, or 0.1%, at 8,370.22. The FTSE 250 was up 34.51 points, or 0.2%, at 21,015.02, and the AIM All-Share was up 1.94 points, or 0.3%, at 768.84.
The Cboe UK 100 was up 0.1% at 837.86, the Cboe UK 250 was up 0.1% at 18,504.60, and the Cboe Small Companies was unchanged at 16,850.10.
Retail sales in the UK increased in August, boosted by rising food sales, but growth remains sluggish and the retail environment "challenging", a survey on Tuesday showed.
According to the BRC-KPMG retail sales monitor, retail sales rose 1.0% year-on-year in August, picking up speed from growth of 0.5% in July. This was above the 3-month average growth of 0.4% but below the 12-month average growth of 1.2%. In August 2023, retail sales increased 4.1%.
Food sales increased 2.9% year-on-year over the three months to August, against growth of 8.2% a year prior. In the three months to July, food sales rose 2.6% year-on-year. Non-food sales decreased 1.7% year-on-year over the three-months to August, against a decline of 0.2% in August 2023.
Later in the day, investors will be looking across the pond for a manufacturing purchasing managers' index print from the US.
"Today, the US will return from its long weekend and we could start seeing some action in the markets. It felt yesterday that the absence of the American markets revived the worries that we might see a rebound in US jobs figures this week – a scenario which would derail the Federal Reserve doves, reshuffle the Fed cut expectations and give way to a potentially sizeable price action across different asset classes," said Swissquote Bank's Ipek Ozkardeskaya.
"...Stronger-than-expected figures should, in the first place, let the US dollar recover a part of the recent losses, throw a floor under the US yields, disappoint indices and sectors that rely on rate cuts but give support to others – like the tech – who don't really need the support of the Fed to do well. The jobs data will start flowing in from tomorrow, but investors will have a look at the final ISM figures today."
In European equities on Tuesday, the CAC 40 in Paris was up 0.2%, while the DAX 40 in Frankfurt was up 0.1%.
The pound was quoted at USD1.3122 early on Tuesday in London, down compared to USD1.3145 at the equities close on Monday. The euro stood at USD1.1061, down against USD1.1068. Against the yen, the dollar was trading at JPY146.07, down compared to JPY146.95.
In the FTSE 100, Ashtead Group was up 3.1%.
For the first quarter ended July 31, the equipment rental company posted pretax profit of USD544 million, down 7% from USD585 million a year prior.
Revenue, however, was up 2% to USD2.75 billion from USD2.70 billion, while rental revenue rose 7% to USD2.54 billion from USD2.38 billion.
Separately, Ashtead also announced the retirement of Chief Financial Officer Michael Pratt. Accordingly, WestRock's Alex Pease will join in October as CFO designate. He will be based in Fort Mill, South Carolina.
In the FTSE 250, Watches of Switzerland rose 6.3%.
The group said that it remains on track to deliver on its annual guidance, after trading in the first 18 weeks of the financial year was "in line" with expectations.
Demand for key luxury brands, particularly products on Registration of Interest lists, remains strong in both the UK and US markets, the firm said, outstripping supply, with consistent additions and conversions. US growth is still expected to be second half weighted.
Further, following the acquisition in May, the integration of Roberto Coin is progressing to plan. The company will publish its half-year results on December 5.
Elsewhere, Falcon Oil & Gas was down 0.6%.
Shares in the Australia, Hungary and South Africa-focused oil and gas company rose, after it announced plans to change its corporate name to Beetaloo Resources Corp, and to consolidate its share capital on the basis of up to 250 pre-consolidation common shares for each one post-consolidation common share.
Both changes are subject to shareholder approval at a special meeting of shareholders to be held on October 29, and all necessary regulatory approvals including the approval of TSX Venture Exchange and AIM. Falcon said that it wishes to proceed with the consolidation in order to pursue a listing on a US stock exchange during the first half of 2025.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was down just 14.56 points. In China, the Shanghai Composite was down 0.3%, while the Hang Seng index in Hong Kong was down 0.4%. The S&P/ASX 200 in Sydney closed down 0.1%
In the US on Monday, financial markets were closed for Labor Day.
While Wall Street took the day off, US President Joe Biden and Kamala Harris campaigned together for the first time Monday after she replaced him as candidate.
Seeking to attract voters in the key battleground state of Pennsylvania, the pair met union members in Pittsburg. The Labor Day event at the International Brotherhood of Electrical Workers union underlined how Biden will play a role in the campaign in the final months before the vote.
"We have made a lot of progress, and Kamala and I are going to build on that progress, and she's going to build on it," Biden said. "I'll be on the sidelines, but I'll do everything I can to help."
Brent oil was quoted at USD77.38 a barrel early in London on Tuesday, higher than USD76.92 late Monday.
Gold was quoted at USD2,497.00 an ounce, lower against USD2,500.29.
On Tuesday's economic calendar, there are several speeches from European Central Bank Members, and a handful of US data this evening, including manufacturing PMI and the Redbook index.
By Holly Beveridge, Alliance News senior reporter
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