Monday, February 12, 2024 9:13am
London’s FTSE index rose slightly on Monday morning ahead of a busy week of UK data that will give investors clues as to when the central bank will start cutting interest rates.
The FTSE 100 index opened marginally lower at 7,571.82, while the FTSE 250 index, which is more closely tracked by the health of the domestic economy, rose 0.57% to trade at 19,171.25.
Investors largely sat in silence ahead of a fast-tracked schedule of data releases. The latest labor market figures are due to be released tomorrow, along with US consumer prices, before the UK’s January inflation figures are released on Wednesday.
Susannah Streeter, head of money and markets, said: “Inflation crushing wage growth remains a deep concern for policymakers, who fear they risk reigniting price declines.” “Given this, the UK labor market figures will be closely watched on Tuesday.” Hargreaves Lansdown said.
“CPI data to be released on Wednesday is expected to show a continuation of the sharp downward trend in inflation, and we may expect a slight rise in headline interest rates, in part due to the January energy price cap hike. No,” Streeter continued.
It was a relatively quiet morning in London. Corporate M&A continues, with two commercial real estate investment trusts, Tritax Big Box and UK Commercial Properties, reaching agreement on a potential merger.
The transaction creates the UK’s fourth largest real estate investment trust based on market capitalization, with a total value of £3.9bn and a property portfolio worth £6.3bn. Its size would put it on the verge of entering the FTSE 100.
UK Commercial Property REIT shares rose 4.8% in early trading, while Tritax Big Box shares fell 2.9%.
“Assuming the partnership goes as planned, the key question is whether the expanded company will decide to rationalize its combined portfolio through the sale of less significant assets,” said Russ Mold, investment director at AJ Bell. ” he said.
Frasers’ shares rose to near the top of the FTSE 100 after the company launched an £80m share buyback plan.
The program starts today and will run for 11 weeks until 28 April, with up to 10 million shares to be acquired for up to £80 million, representing around 2% of the company. The purpose of the new share buyback was to reduce the company’s share capital.
GSK’s stock price was little changed after the U.S. Food and Drug Administration conducted a special evaluation of the drug bepirovirsen, which is used to treat chronic hepatitis B.
This certification, called Fast Track designation, is given to medicines that address serious conditions and meet urgent medical needs.