London open: Stocks little changed in quiet trade; US data eyed
Stocks in London were little changed at the open in thin volumes, as investors digested the latest survey on consumer confidence and looked ahead to some US data releases.
At 0830 GMT, the FTSE 100 was down 0.1% to 7,032.52, with volumes on the index nearly 30% lower versus the 10-day average.
Meanwhile, oil prices nudged higher, with West Texas Intermediate up 0.2% to $52.57 a barrel and Brent crude 0.3% higher at $54.60.
Spreadex’s Connor Campbell said: “Though this afternoon provides one final pre-Christmas wave of US data, this morning’s economic calendar is depressingly empty, meaning the European indices may well end up stuck in the same lifeless trading patterns that plagued the first half of the week.”
US initial jobless claims, Chicago Fed activity, durable goods and the third release of third-quarter gross domestic product are all due at 1330 GMT. Leading indicators, personal income and spending and the PCE deflator are at 1500 GMT.
Investors in London were digesting the latest survey from GfK, which showed consumer confidence in the UK improved a touch in December, but consumers are downbeat about the economic prospects for next year.
GfK’s monthly consumer sentiment index nudged up to -7 in December from -8 the month before but expectations for 2017 were at their weakest since just after the Brexit vote in June.
Joe Staton, head of Market Dynamics at GfK, said: “The past 12 months were a really turbulent year for confidence in the UK as consumers reacted to the dramatic economic and political turmoil of 2016.
“Looking ahead to 2017, against a backdrop of Brexit negotiations, the decline in the value of sterling, and the prospect of higher inflation impacting purchasing power, we forecast that confidence will be tested by the storm and stress (Sturm und Drang) of the year to come.”
Meanwhile, Italy’s banking sector remained in focus as Banca Monte dei Paschi di Siena failed to pull off a last-ditch rescue plan to secure an anchor investor for its offer of new shares.
With the government expected to step in as early as Thursday, Italian daily Il sole 24 reported that the state rescue is likely to be carried out in different stages and will take two to three months to complete.
In UK corporate news, Legal & General nudged higher after it poached Ernst & Young senior partner, Jeff Davies, to be its chief financial officer.
Car dealership operator Inchcape rallied after announcing the acquisition of a distribution business focused on Subaru cars and Hino commercial vehicles in South America for £234m cash.
Broadcaster Sky was steady as Credit Suisse cut its rating on the stock to ‘neutral’ from ‘outperform’ following the offer from 21st Century Fox, but lifted its price target to 1,075p from 980p in line with the offer price.
Broadcaster ITV was on the front foot following an upbeat research note by Macquarie.
Market Movers
FTSE 100 (UKX) 7,032.52 -0.13%
FTSE 250 (MCX) 17,755.11 0.05%
techMARK (TASX) 3,326.52 -0.04%
FTSE 100 - Risers
ITV (ITV) 203.70p 1.85%
Convatec Group (CTEC) 233.30p 1.66%
Fresnillo (FRES) 1,107.00p 1.28%
Randgold Resources Ltd. (RRS) 5,710.00p 1.06%
Intertek Group (ITRK) 3,349.00p 0.93%
Hikma Pharmaceuticals (HIK) 1,808.00p 0.78%
Smith & Nephew (SN.) 1,191.00p 0.76%
AstraZeneca (AZN) 4,338.00p 0.59%
Experian (EXPN) 1,533.00p 0.52%
International Consolidated Airlines Group SA (CDI) (IAG) 452.40p 0.44%
FTSE 100 - Fallers
Glencore (GLEN) 267.35p -1.58%
BHP Billiton (BLT) 1,274.50p -1.32%
Rio Tinto (RIO) 3,071.00p -1.30%
Antofagasta (ANTO) 666.00p -1.26%
BAE Systems (BA.) 590.00p -1.01%
Sage Group (SGE) 648.00p -0.92%
Tesco (TSCO) 202.55p -0.83%
Micro Focus International (MCRO) 2,130.00p -0.61%
Intu Properties (INTU) 273.70p -0.58%
Barratt Developments (BDEV) 467.80p -0.55%
FTSE 250 - Risers
Inchcape (INCH) 671.00p 4.52%
Countryside Properties (CSP) 243.20p 2.18%
John Laing Group (JLG) 272.00p 1.83%
GCP Infrastructure Investments Ltd (GCP) 124.00p 1.64%
Ibstock (IBST) 184.30p 1.49%
Fidelity China Special Situations (FCSS) 171.40p 1.42%
Electra Private Equity (ELTA) 4,617.00p 1.29%
Ascential (ASCL) 268.70p 1.28%
NMC Health (NMC) 1,553.00p 1.24%
Barr (A.G.) (BAG) 489.00p 1.22%
FTSE 250 - Fallers
Tullett Prebon (TLPR) 423.20p -2.49%
Mitchells & Butlers (MAB) 236.80p -2.23%
Kaz Minerals (KAZ) 359.80p -2.02%
Ocado Group (OCDO) 251.00p -1.95%
Petrofac Ltd. (PFC) 852.50p -1.90%
HarbourVest Global Private Equity Limited A Shs (HVPE) 1,131.00p -1.65%
OneSavings Bank (OSB) 337.00p -1.55%
Vedanta Resources (VED) 898.00p -1.32%
AA (AA.) 270.20p -1.24%
Amec Foster Wheeler (AMFW) 463.40p -1.11%