London close: Mixed stocks ahead of this week’s Fed decision


The FTSE100 ended the session up 0.41% at 7,306.30, while the FTSE250 was down 0.11% at 19,802.99.

The pound was in positive territory, last trading 0.41% against the dollar at $1.2048 and strengthening 0.42% against the euro at €1.1798.

“UK banking stocks got a welcome boost today, despite looming earnings risk that could soon see those gains erode later in the week,” said GI senior market analyst Joshua Mahony.

“With the Fed set to hike rates by 75 to 100 basis points on Wednesday, we are poised for a timely reminder that bank spreads will continue to improve over the course of this year.

“However, while banking stocks generally benefit from higher rates as they often take place against a strong economic backdrop, financial stocks are at risk given the impending recession that is widely anticipated.”

In economic news, a new survey showed Britain’s industrial production grew at the slowest pace in more than a year in the three months to July, reflecting weaker domestic and international demand.

The Confederation of British IndustryIndustry Trends Survey found its production balance fell to +6 in July from +19 in April.

“The manufacturing sector has been an economic bright spot in recent months, but production and orders have slowed amid continued cost pressures, supply issues and a general weakening of economic conditions in the UK. and the world,” he added. CCR said deputy chief economist Anna Leach.

Concerns about labor shortages and shortages of components and materials remained high, but below their recent highs.

The CCRFigures from showed a sharp decline in the balance of average expected manufacturer prices for the next three months to +48 from +71.

On the continent, Germany seemed on the verge of recession, according to a survey published earlier by the Ifo Institute.

He found that the business climate deteriorated significantly in July amid soaring energy prices and concerns over gas supplies.

The business climate index fell to 88.6 from 92.2 in June, hitting its lowest level since June 2020.

I fo said the current situation index, meanwhile, fell to 97.7 from 99.4 and the expectations index fell to 80.3 in July from 85.5 in June.

“Rising energy prices and the threat of a gas shortage are weighing on the economy,” said I fo President Clemens Fuest.

“Germany is on the verge of recession.”

The manufacturing indicator fell to -7.1 in July from 0.0 in June, while the services sector index fell to 0.9 from 10.9.

I fo said the trade index was -21.6 from -14.7 and the construction gauge was -17.0 from -9.7 in June.

Macroeconomics Hall of Fame noted that he saw no reason to change his view that the German economy was now likely entering a technical recession.

“We expect Friday’s data to show the economy contracted in the second quarter, and today’s numbers I fo the release suggests it will do so again in the third quarter,” Pantheon said.

“If, as we expect, further disruption in gas flows leads to energy rationing, the fourth quarter will be no better.”

In the London stock markets, banks were above the fold with Standard charter up 3.18%, NatWest Group up 2.27%, HSBC ahead of 2.19%, and Lloyds banking group 1.34% firmer ahead of trade updates later in the week.

Molten metal casting engineer Mount Vesuvius jumped 9.91% after it said full-year trading profit was expected to be at the high end of analysts’ expectations after better-than-expected trading in May and June.

Ferrexpo was boosted by 14.18% by an upgrade to “outperform” at Swiss creditwhile the owner of Oxo and Mr. Kipling first foods rose 1.77% after agreeing to buy Asian meal kits and side dishes brand ‘the Spice Tailor’ for an initial £43.8million in cash.

Airtel Africa rose 2.37% after its Kenyan subsidiary purchased 60 megahertz of additional spectrum for $40 million as part of an effort to support the expansion of its 4G network capacity in the mobile data market and fixed wireless broadband capabilities in the home.

Elsewhere, the telecom giant Vodafone Group closed flat after reporting a surge in first-quarter revenue, driven by growth in the UK, but reported a decline in its biggest market, Germany.

On the downside, online grocery and warehouse technology company ocado fell 4.04% after Berenberg cut its share price target to 1,290p from 1,415p to reflect the capital increase and decline in value attributed to its half-owned Ocado Retail division, but maintained its ‘buy’ rating.

“On June 20, Ocado announced a capital increase of £575m as well as a new £300m credit facility, providing £2bn of liquidity,” Berenberg Noted.

“While a capital raise was a surprise, especially as previous messages had indicated that capital would be raised by borrowing, yields on unsecured debt rose through 2022, and the reduction in net debt offers more financial and strategic flexibility, in our view.”

Reporting by Josh White on Additional reporting by Michele Maatouk and Frank Prenesti.

market movers

FTSE 100 (UKX) 7,306.30 0.41%
FTSE 250 (MCX) 19,802.99 -0.11%
techMARK (TASX) 4,380.20 -0.24%

FTSE 100 – Risers

Harbor Energy (HBR) 343.00p 3.38%
Standard Chartered (STAN) 591.00p 3.18%
Glencore (GLEN) 432.80p 2.51%
Anglo-American (AAL) 2,729.00p 2.38%
Airtel Africa (AAF) 168.60p 2.37%
NATWEST GROUP PLC ORD 100P (NWG) 230.20p 2.27%
HSBC Holdings (HSBA) 526.50p 2.19%
Tesco (TSCO) 264.80p 2.08%
Barclays (BARC) 160.72p 1.82%
Rio Tinto (RIO) 4,850.00p 1.63%

FTSE 100 – Slaughterhouses

Endeavor Mining (EDV) 1,550.00p -4.26%
Ocado Group (OCDO) 759.60p -4.04%
Fresnillo (FRES) 648.60p -3.19%
Dechra Pharmaceuticals (DPH) 3,594.00p -3.02%
Intertek Group (ITRK) 4,384.00p -2.94%
Howden Joinery Group (HWDN) 654.20p -2.88%
Flutter Entertainment (CDI) (FLTR) 8,060.00p -2.61%
Aveva Group (AVV) 2,332.00p -2.55%
RS group (RS1) 988.50p -2.51%
Scottish Mortgage Trust (SMT) 812.80p -2.24%

FTSE 250 – Risers

Ferrexpo (FXPO) 151.40p 14.18%
Vesuvius (VSVS) 355.00p 9.91%
TBC Banking Group (TBCG) 1,298.00p 4.01%
Tallow Oil (TLW) 46.72p 3.96%
ICG Enterprise Trust (ICGT) 1,182.00p 3.87%
Group of Will (FAN) 400.50p 3.49%
Beazley (BEZ) 537.00p 2.87%
ITV (ITV) 72.12p 2.74%
4Print Group (FOUR) 3,200.00p 2.73%
IG Group Holdings (IGG) 795.50p 2.65%

FTSE 250 – Slaughterhouses

Jupiter Fund Management (JUP) 133.50p -6.45%
Chrysalis Investments Limited NPV (CHRY) 99.00p -4.81%
Carnival (CCL) 659.20p -4.74%
Bridgepoint Group (Reg S) (BPT) 228.20p -3.96%
Hochschild Mining (HOC) 74.00p -3.65%
888 Participations (DI) (888) 151.10p -3.27%
Dark Trace (DARK) 365.90p -3.20%
ASOS (ASC) 1,121.00p -3.11%
TUI AG Reg Shs (DI) (TUI) 129.45p -2.96%
National Express Group (NEX) 177.30p -2.74%


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