London close: Stocks mixed as investors look to US inflation data

11th Mar 2024 14:48

(Sharecast News) - London markets closed in a mixed state on Monday, reflecting a broader trend of cautious trading after a primarily weaker session in Asian markets overnight.

Investors remained attentive to upcoming US consumer price inflation data scheduled for later this week.

The FTSE 100 managed a slight uptick of 0.12% to close at 7,669.23 points, while the FTSE 250 experienced a modest decline of 0.37% to settle at 19,530.09 points.

In currency markets, sterling was last down 0.35% on the dollar, trading at $1.2813, while it saw a 0.26% decline against the euro, changing hands at €1.1723.

"The UK stock market started the week on a sombre tone, with base metal miners causing losses, and traders being cautious before a major US inflation report," said TickMill market analyst Patrick Munnelly.

"The industrial metal mining sector experienced a decline due to the continued drop in iron ore prices.

"This week, market attention will be on the US consumer price reading and domestic labour market data, both scheduled for Tuesday, which will influence interest rate expectations from central banks."

Munnelly noted that a survey revealed a significant slowdown in Britain's labour market in February, with recruitment firms reporting a substantial decrease in employer demand for staff compared to early 2021.

"Currently, money markets are anticipating approximately 67 basis points of interest rate cuts from the BoE within this year."

Recruitment activity downturn continues

In economic news, recruitment activity in the UK saw a continued downturn according to reports from KPMG and REC.

The prevailing "economic uncertainty" coupled with apprehensions surrounding cost pressures contributed to a decline in permanent placements.

Recruiters saw a significant drop in the number of Britons securing permanent positions midway through the quarter, attributing it to employers' reluctance to commit to new hires amidst uncertain economic conditions.

At the same time, subdued employer confidence and cost considerations led to the most pronounced reduction in temporary billings since July 2020.

Data on vacancies highlighted a notable decrease in overall demand for workers, marking the swiftest decline since the outset of 2021.

The slowdown in hiring, coupled with an uptick in redundancies, resulted in a sharp rise in candidate availability, while pressures on pay moderated.

Of particular significance, the rate of increase in permanent starters' pay decelerated to its slowest pace since March 2021, while temporary pay growth registered among the weakest observed over the past three years.

"The impasse between economic uncertainty and hiring decisions continued into February," said KPMG's Jon Holt.

"Chief executives tell me they are ready to invest and grow - including taking on new staff - yet the reality is they're being held back by the prospect of weak demand."

Holt said businesses would ideally have liked a Budget to drive investment, boost economic growth and help productivity bounce back.

"While it was encouraging to see measures to increase labour supply, there was limited headroom for change - only time will tell if the Chancellor's announcements go far enough to shift the dial on the UK's economic outlook."

Vanquis and Ferrexpo plummet, Admiral in the green

On London's equity markets, mining heavyweights faced declines as metal prices dipped.

Rio Tinto, Anglo American, and Glencore all saw significant drops, with Rio Tinto leading the pack with a decrease of 2.04%.

Meanwhile, electrical retailer Currys stumbled by 7.47% after US private equity firm Elliott Advisors withdrew from takeover talks following unsuccessful attempts to engage with the company's board.

Vanquis Banking Group, formerly known as Provident Financial, plummeted 50% after issuing a profit warning attributed to ongoing efforts to revamp its customer offerings and address complaints, particularly related to credit cards.

Similarly, iron ore producer Ferrexpo faced a sharp decline of 26.78% as it grappled with extending payment terms amid frozen accounts.

On the upside, Imperial Brands surged by 2.84% as it initiated the second tranche of its share buyback program.

Admiral Group was a notable gainer, soaring 4.86% after Berenberg raised its price target on the shares, expressing optimism about the company's outlook in the motor insurance market.

Marks & Spencer Group also saw positive movements, climbing 1.88% following an upgrade to 'outperform' by RBC Capital Markets.

The bank highlighted M&S's strong fundamentals and potential for growth, despite recent market concerns.

Cybersecurity firm Darktrace experienced a significant uptick of 15.58% after Deutsche Numis reiterated its 'buy' rating and maintained its target price, citing promising first-half revenue figures and upgraded forecasts.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 7,669.23 0.12%

FTSE 250 (MCX) 19,530.09 -0.37%

techMARK (TASX) 4,512.31 -0.13%

FTSE 100 - Risers

Admiral Group (ADM) 2,698.00p 4.86%

Antofagasta (ANTO) 1,825.00p 3.14%

Hikma Pharmaceuticals (HIK) 1,910.00p 2.94%

Imperial Brands (IMB) 1,740.50p 2.84%

AstraZeneca (AZN) 10,450.00p 2.49%

Ocado Group (OCDO) 456.80p 1.87%

Rightmove (RMV) 577.80p 1.80%

Whitbread (WTB) 3,274.00p 1.49%

Marks & Spencer Group (MKS) 246.30p 1.44%

Persimmon (PSN) 1,374.50p 1.44%

FTSE 100 - Fallers

St James's Place (STJ) 453.70p -3.55%

SSE (SSE) 1,613.00p -2.24%

Airtel Africa (AAF) 93.95p -1.98%

Centrica (CNA) 130.20p -1.92%

Convatec Group (CTEC) 280.80p -1.82%

Experian (EXPN) 3,346.00p -1.65%

Entain (ENT) 734.80p -1.63%

Tesco (TSCO) 282.20p -1.40%

Sage Group (SGE) 1,229.50p -1.32%

Relx plc (REL) 3,360.00p -1.32%

FTSE 250 - Risers

Darktrace (DARK) 436.20p 15.58%

TP Icap Group (TCAP) 198.60p 5.53%

Aston Martin Lagonda Global Holdings (AML) 163.10p 4.35%

4Imprint Group (FOUR) 5,820.00p 2.83%

NB Private Equity Partners Ltd. (NBPE) 1,690.00p 2.80%

Domino's Pizza Group (DOM) 368.20p 2.28%

Fidelity China Special Situations (FCSS) 193.60p 2.00%

FirstGroup (FGP) 162.40p 1.70%

Dr. Martens (DOCS) 91.85p 1.60%

Softcat (SCT) 1,548.00p 1.51%

FTSE 250 - Fallers

Ferrexpo (FXPO) 51.90p -26.78%

Currys (CURY) 61.00p -5.43%

Breedon Group (BREE) 375.00p -5.18%

SDCL Energy Efficiency Income Trust (SEIT) 62.30p -4.91%

Future (FUTR) 582.50p -4.74%

Jupiter Fund Management (JUP) 86.30p -4.48%

Tullow Oil (TLW) 27.10p -4.04%

Allianz Technology Trust (ATT) 344.50p -3.77%

GCP Infrastructure Investments Ltd (GCP) 72.70p -3.21%

Coats Group (COA) 74.60p -3.12%