London close: Actions mixed after better than expected US payroll report


the FTSE 100 ended the session up 0.04% to 7,122.95, while the FTSE 250 closed 0.21% lower at 23,456.16.

It was also a mixed picture for the pound sterling, with the currency last trading 0.45% weaker against the dollar at $ 1.3869, while it gained 0.18% against the euro at € 1.1793.

“An overwhelmingly positive report on US jobs gave new momentum to the markets today, pushing the S&P 500 to an all time high,” said IG senior market analyst Joshua Mahony.

“With the economic data improving, we have seen Treasury yields reverse higher in favor of value stocks. “

Mahony said the Nasdaq declines highlighted the shift in funds from growth stocks to recovery games, as the 10-year US Treasury yield increased.

“Next week is expected a spectacular 22.5% yoy growth for UK growth in the second quarter, with the theme of economic outperformance likely to bring further upside for the FTSE 250 . “

According to the Ministry of Labor, the non-farm payroll rose by 943,000 in July, after a gain of 938,000 people revised upwards in June.

Economists had forecast an increase of 870,000 after the preliminary estimate of an increase of 850,000 people in June.

The leisure and hospitality industries recorded the largest increase in hiring, with an increase of 380,000, followed by a jump of 261,000 jobs in public and private education.

Andrew Hunter at Capital economics said that after Friday’s job announcement, the risk of an earlier start to the Fed’s reduction in asset purchases.

Hunter previously predicted that the Fed would wait until early 2022.

Hinish Patel, portfolio manager at Quilter Investors, was more cautious, telling customers that the Delta variant meant that July’s non-farm payroll figures could mark a peak in job growth for some time.

Delta had also revealed how vulnerable the global economy was to new stresses – and then there was the problem of increasing automation.

“But for now, the Fed is hoping everyone will return to work and their offices in September once the Delta surge subsides, confidence returns and vaccination rates improve,” he said. Patel said.

On the national coasts, annual house price growth slowed in July, reaching its lowest level since March amid signs of a “market cooling” at the end of the stamp duty holiday, according to the report. last survey of Halifax.

House prices rose 7.6% over the year, up from 8.7% in June.

On the month, however, prices rose 0.4% in July to £ 261,221, after falling 0.6% the month before.

Russell Galley, Managing Director of Halifax, said the annual easing was somewhat expected given the strength of price inflation seen last summer, as the market began to recover from the first foreclosure, and with activity buoyed by the start of the stamp duty leave.

The stamp duty holiday, introduced by Chancellor Rishi Sunak last July to support the real estate market, ended at the end of June, after being extended from March 31.

This meant that no tax had to be paid on the first £ 500,000 of property purchases in England and Northern Ireland.

“The past few months have been characterized by historically high volumes of buyer activity, with June being the busiest month for mortgage completions since 2008,” said Galley.

“This has been fueled by both the ‘space race’ and the relief from limited-time stamp duties.”

Meanwhile, UK store visits stagnated at a level well below pre-pandemic trends in July as Covid-19 restrictions were lifted.

Retail footfall was down 0.4% from June and was 28% lower than two years earlier, according to figures from the UK Retail Consortium and IQ Sensormatic show.

The largest decline was seen in business parks where visits fell 6.9 points from June and 15% from two years earlier.

Shopping streets fell 1.2 points month over month and shopping center attendance fell 2.6 points.

Finally, it was revealed that the British would face a surge in energy prices from October after energy regulator Ofgem said it was lifting the default tariff cap from 12 to 13. % as the colder months approach.

The move means the average dual fuel bill will rise from £ 1,138 to £ 1,277 for the 11 million households paying by direct debit, up £ 139.

For another four million homes using prepaid meters, the average energy bill will rise by £ 153 to £ 1,309.

The increase in the cap comes on top of a £ 96 per year increase in the price cap announced six months ago which went into effect from April.

On the equity markets, WM Morrison rose 2.5% after accepting a £ 6.7 billion takeover bid from a consortium led by Fortress Group.

London Stock Exchange Group jumped 5.03% after more than doubling its profits in the first half, as total income rose 4.6%.

The company said adjusted pre-tax profit was £ 1.03bn, up from £ 435m a year ago.

Adjusted operating expenses increased by 1.1% and £ 77 million of synergies were realized from the acquisition of Refinitiv.

Cairn energy rose 6.12% as it approached receiving $ 1.7 billion in compensation in a long-standing tax dispute with the Indian government.

On the decline, Hikma Pharmaceuticals fell 7.08% even after improving the full-year outlook for its generics business and reporting higher profits and revenues in the first half of the year.

The company praised strong performance in the generic and branded segments, and good resilience in the injectables sector.

Market movers

FTSE 100 (UKX) 7,122.95 0.04%
FTSE 250 (MCX) 23,456.16 -0.21%
techMARK (TASX) 4,618.23 -0.40%

FTSE 100 – Risers

London Stock Exchange Group (LSEG) 7,872.00p 5.03%
Flutter Entertainment (CDI) (FLTR) 12.720.00p 2.91%
Prudential (PRU) 1426.50 p 2.66%
NATWEST GROUP PLC ORD 100P (NWG) 215.70p 2.23%
Evraz (EVR) 613.60p 2.10%
Aviva (AV.) 399.70p 1.94%
Taylor Wimpey (TW.) 175.10p 1.92%
Legal & General Group (LGEN) 276.40p 1.80%
Standard Chartered (STAN) 459.20p 1.77%
HSBC Holdings (HSBA) 409.85p 1.72%

FTSE 100 – Fallers

Hikma Pharmaceuticals (HIK) 2,455.00 p -7.08%
Experiential (EXPN) 3,099.00 p -3.97%
Coca-Cola HBC SA (CDI) (CCH) 2,693.00p -3.06%
Mondi (MNDI) 2,008.00p -3.00%
Fresnillo (FRES) 795.20p -2.65%
International Consolidated Airlines Group SA (CDI) (IAG) 173.44p -2.56%
Kingfisher (KGF) 361.10p -2.38%
Polymetal International (POLY) 1,512.00p -2.36%
AstraZeneca (AZN) 8,157.00p -2.22%
Rentokil Initial (RTO) 554.60p -2.12%

FTSE 250 – Lifts

Captain (IPC) 40.06p 11.31%
Vectura Group (VEC) 164.00p 6.49%
Cairn Energy (CNE) 168.20p 6.12%
Chrysalis Investments Limited VAN (CHRY) 261.00p 4.84%
Country Properties (CSP) 538.00p 3.46%
Airtel Africa (AAF) 91.25p 2.82%
Swiss Watches Group (WOSG) 1,002.00p 2.77%
Morrison Supermarkets (Wm) (MRW) 278.80p 2.50%
Hammerson (HMSO) 36.60p 2.49%
Auction Technology Group (ATG) 1,380.00p 2.37%

FTSE 250 – Fallers

Fraser Group (FRAS) 588.50p -4.32%
Savills (SVS) 1,200.00 p -4.00%
CMC Markets (CMCX) 419.00p -3.48%
Scope (RCH) 397.50p -3.28%
Petropavlovsk (POG) 20.48p -3.03%
Hilton Food Group (HFG) 1,102.00p -3.02%
Catering group (RTN) 117.00p -2.66%
Mitchells and Butlers (MAB) 275.80p -2.61%
Baillie Gifford US Growth Trust (United States) 344.50p -2.55%
National Express Group (NEX) 269.20p -2.53%

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