London stocks remained in the black at midday as investors continued to cheer US inflation relief and ponder the latest UK manufacturing data.
The FTSE 100 index rose 0.7% to 7,680.28.
Richard Hunter, Head of Markets interactive investor“The Personal Consumption Expenditure Price Index, the Federal Reserve’s preferred inflation measure, posted its slowest annual increase in nearly three years in January. With a core monthly increase of 0.4%, the annual rate It was 2.8%, a decrease from the previous time.” Excluding food and energy prices, which rose 2.9%, both headline numbers were in line with expectations, rising 0.3% and 2.4% respectively.
“There was some reassurance in this number, especially given that recent CPI and PPI measurements were higher than expected, raising fears of a reacceleration of inflation.This news comes as a result of the June interest rate cut. “Even though at the broadest level there is little sign that the U.S. economy is weakening, much less headed for a recession, the situation remains in a delicate balance.” Given the current situation, the Fed’s previous mantra of a “long run of gains” looks increasingly prescient. This is clear from economic data. ”
At home, a survey showed the manufacturing sector continued to slump in February amid the turmoil caused by the Red Sea crisis.
of S&P Global The Manufacturing Purchasing Managers’ Index rose to 47.5 from 47.0 in January. Although this was higher than the preliminary figure of 47.1, it has remained below the 50.0 level, which is the dividing line between contraction and expansion, for 19 consecutive months.
The investigation found that the ongoing crisis in the Red Sea is causing disruption to both production and vendors’ delivery schedules. In some cases, manufacturers said these disruptions are driving up costs as they try to find alternative suppliers from markets closer to more expensive markets.
Demand remains sluggish, and new orders have fallen sharply for the first time since October last year.
Rob Dobson, Director S&P Global Market Intelligence“UK manufacturers faced a difficult situation in February as the impact of the Red Sea crisis continued, with raw material deliveries delayed, purchasing prices soaring and production capacity affected. Also, new exports “Orders took a hit and there was a knock-on effect on demand.” Since then, production has declined for 12 consecutive months, and total new orders have declined sharply for the first time since October.
“The impact was particularly felt on the price and supply front. Input cost inflation reached an 11-month high, leading to further increases in selling prices. Meanwhile, average lead times for suppliers have been pushed back beyond mid-2022. Some manufacturers face the difficult choice of accepting delays due to changes in shipping routes or facing the prospect of paying higher prices to source from closer locations. This comes at a time when manufacturers are already becoming more cautious about costs in response to weak demand, as highlighted, with further cuts in hiring, purchasing and inventory in February. By.
“Although supply and price impacts have been subdued compared to the norms seen at the height of the pandemic, upward inflationary pressures remain a concern for policymakers, who cannot be confident about the timing of rate hikes. There may be more calls for a rate cut to be premature. ”
Previously published data Nationwide revealed that annual house prices returned to rising rates in February for the first time in more than a year as borrowing costs fell.
House prices rose 1.2% year-on-year, following a 0.2% decline in January. Prices for the month rose by 0.7%, the same as in January, with the average house price now at £260,420 compared to £257,656.
Nationwide said house prices are currently about 3% below the all-time high recorded in summer 2022, after taking into account seasonal effects.
“Lower borrowing costs around the start of the year appear to have fueled the rise in the housing market,” said Robert Gardner, Nationwide’s chief economist. I am pointing this out.” Meanwhile, researchers also reported an increase in new buyer inquiries.
“Nevertheless, the short-term outlook remains highly uncertain, in part due to continued uncertainty about the future path of interest rates. Supporting swap rates are rising again.
Separate statistics show foot traffic at retail stores plummeted last month as unusually wet weather kept shoppers at home.
In the stock market, educational publishers pearson The company rebounded after it reported an increase in annual profits due to strong demand for its English courses and said it expected profits to be in line with expectations in 2024 after extending its share buyback by 200 million pounds.
ITV It rocketed to the top of the FTSE 250 after the broadcaster announced it had sold a 50% stake in streaming service Britbox International to joint venture partner BBC Studios for £255m all in cash.
As a disadvantage, move right Shares slumped as the company warned that customer numbers could fall this year due to uncertainty over interest rates and mortgage borrowing costs.
professional engineer IMI The company reported a 12% increase in profits in 2023, stalling despite expectations for profit growth this year driven by strong orders.
market mover
FTSE100 (UK X) 7,680.28 0.66%
FTSE250(MCX) 19,225.65 0.90%
Techmark (TASX) 4,371.16 0.05%
FTSE 100 – Riser
Barclays (BARC) 170.96p 3.95%
Pearson (PSON) 993.40p 3.41%
SEGRO (SGRO) 872.40p 3.19%
Vodafone Group (VOD) 70.75p 2.36%
Airtel Africa (AAF) 97.00 pence 2.27%
Nawest Group (NWG) 244.50p 2.26%
Anglo American (AAL) 1,736.40p 2.08%
Reckitt Benckiser Group (RKT) 5,102.00p 2.08%
Croda International (CRDA) 4,864.00p 2.06%
BP (BP.) 469.65p 1.94%
FTSE 100 – Falls
Ocado Group (OCDO) 493.80p -3.44%
Move right (RMV) 553.80p -2.26%
Hikma Pharmaceuticals (HIK) 1,932.50p -1.75%
Melrose Industries (MRO) 625.00p -1.57%
Relux SPLC (REL) 3,413.00p -1.39%
St. James Place (STJ) 497.40p -1.11%
Antofagasta (ANTO) 1,797.50p -1.10%
IMI 1,715.00p -1.04%
Experian (EXPN) 3,354.00 pence -0.92%
Bunzul (BNZL) 3,125.00 pence -0.89%
FTSE 250 – Riser
ITV (ITV) 64.48p 15.27%
Close Brothers Group (CBG) 370.20p 6.75%
TBC Bank Group (TBCG) 3,130.00 pence 5.74%
Bank of Georgia Group (BGEO) 4,960.00 pence 5.31%
North Atlantic Small Business Investment Trust (NAS) 3,780.00 pence 4.71%
OSB Group (OSB) 433.40p 4.18%
Big Yellow Group (BYG) 1,038.00p 3.49%
Shaftesbury Capital (SHC) 128.10p 3.39%
Harbor Energy (HBR) 260.20p 3.09%
Victrex plc (VCT) 1,266.00 pence 2.93%
FTSE 250 – Falls
Vesuvius (VSVS) 468.00p -3.43%
Spectris (SXS) 3,414.00p -2.60%
Man Group (EMG) 238.60p -2.01%
Mobico Group (MCG) 76.75p -1.60%
Morgan Sindall Group (MGNS) 2,310.00 pence -1.49%
Foresight Group Holdings Limited NPV (FSG) 424.00p -1.17%
Genus (GNS) 1,772.00p -1.12%
NCC Group (NCC) 125.00p -1.11%
Quilter (QLT) 95.50p -0.98%
Computer Center (CCC) 2,874.00 pence -0.96%