London open: Stocks nudge up ahead of BoE announcement

20th Jun 2024 08:05

(Sharecast News) - London stocks were just a touch firmer in early trade on Thursday as investors eyed the latest policy announcement from the Bank of England, which is widely expected to stand pat on interest rates at 5.25%.

At 0825 BST, the FTSE 100 was up 0.1% at 8,212.70.

Policy announcements are also due from the Swiss National Bank and Norges Bank.

Richard Hunter, head of markets at Interactive Investor, said: "Without doubt, the highlight of the day in the UK will come as the Bank of England announces its latest decision on interest rates. The market has ruled out a cut today, but the accompanying comments will be scrutinized for any signs that the Bank is preparing to ease its current grip.

"The decision follows the announcement yesterday that headline inflation fell to 2%, in line with the Bank's target for the first time in almost three years. However, underneath the bonnet core service prices remained elevated at 5.7%, ahead of estimates, which is likely to consolidate the no-change decision.

"It is believed that the Bank of England considers this measure to be a more relevant measure of inflation risk, and in any event the headline number will likely need to stay at current levels over the coming months before the Bank feels comfortable in pulling the trigger.

"As such, the jury remains out on the timing of such a reduction in rates. In terms of consensus, August is currently a reasonably strong candidate, although there is a growing belief that such a move will not happen until September, or perhaps even later should the current price pressures persist. In any event, there is only one cut being priced in this year, in an echo of the likely path of the ECB and according to its most recent outlook, the Fed also."

In equity markets, United Utilities, Airtel Africa, Persimmon, Experian, Tate & Lyle and British Land all fell as they traded without entitlement to the dividend.

Tate & Lyle was also in focus after saying it had agreed to buy ingredients company CP Kelco from JM Huber for $1.8bn.

Sainsbury's was the top gainer on the FTSE 100 as NatWest announced it was buying the core banking business of Sainsbury's Bank, taking over £2.5bn of outstanding credit card, unsecured personal loan and saving accounts.

CMC Markets shot higher as it posted a 15% jump in full-year net operating income to £332.8m - a new record-high outside of the pandemic.

Energean was up after saying it had signed a deal to sell its portfolio in Egypt, Italy and Croatia to Carlyle International Energy Partners for an enterprise value of up to $945m.

Market Movers

FTSE 100 (UKX) 8,212.70 0.09%

FTSE 250 (MCX) 20,377.43 -0.02%

techMARK (TASX) 4,797.11 0.04%

FTSE 100 - Risers

Sainsbury (J) (SBRY) 264.80p 2.00%

Rolls-Royce Holdings (RR.) 481.30p 1.86%

Fresnillo (FRES) 550.50p 1.76%

Land Securities Group (LAND) 617.50p 1.31%

Melrose Industries (MRO) 582.20p 1.25%

Intermediate Capital Group (ICG) 2,244.00p 1.08%

Halma (HLMA) 2,644.00p 1.07%

Antofagasta (ANTO) 2,077.00p 0.97%

Barratt Developments (BDEV) 472.90p 0.90%

BT Group (BT.A) 142.35p 0.78%

FTSE 100 - Fallers

United Utilities Group (UU.) 978.00p -3.17%

Airtel Africa (AAF) 116.20p -2.19%

Persimmon (PSN) 1,337.00p -2.05%

easyJet (EZJ) 447.60p -1.65%

Experian (EXPN) 3,680.00p -0.89%

International Consolidated Airlines Group SA (CDI) (IAG) 168.60p -0.85%

Diageo (DGE) 2,554.00p -0.58%

Whitbread (WTB) 2,923.00p -0.58%

Berkeley Group Holdings (The) (BKG) 4,668.00p -0.55%

Rentokil Initial (RTO) 447.90p -0.53%

FTSE 250 - Risers

IP Group (IPO) 48.25p 8.06%

CMC Markets (CMCX) 303.00p 7.83%

Energean (ENOG) 1,091.00p 5.72%

Bridgepoint Group (Reg S) (BPT) 229.80p 4.74%

Tritax Eurobox (GBP) (EBOX) 60.00p 3.09%

Hochschild Mining (HOC) 183.00p 3.04%

Morgan Sindall Group (MGNS) 2,705.00p 2.85%

PZ Cussons (PZC) 105.00p 2.34%

RHI Magnesita N.V. (DI) (RHIM) 3,295.00p 2.33%

Workspace Group (WKP) 585.00p 2.27%

FTSE 250 - Fallers

Tate & Lyle (TATE) 632.00p -6.65%

TUI AG Reg Shs (DI) (TUI) 552.50p -3.75%

Fidelity China Special Situations (FCSS) 212.00p -3.20%

Tyman (TYMN) 346.00p -3.08%

Rathbones Group (RAT) 1,684.00p -3.00%

Octopus Renewables Infrastructure Trust (ORIT) 70.40p -2.63%

Fidelity Emerging Markets Limited Ptg NPV (FEML) 677.10p -2.44%

British Land Company (BLND) 414.20p -2.36%

Genuit Group (GEN) 430.50p -2.27%

Dr. Martens (DOCS) 79.45p -1.97%