London close: Stocks firmer on relatively quiet Monday

(Sharecast News) - London stocks managed a positive finish on Monday, having taken their opening cue from a solid session on Wall Street on Friday, as investors continued to mull the Bank of England's latest rate hike.
The FTSE 100 ended the session up 0.76% at 7,573.47, and the FTSE 250 was ahead 0.39% at 21,797.29.

Sterling, meanwhile, was in a mixed state, last trading 0.01% weaker against the dollar at $1.3529, while it gained 0.18% on the euro to €1.1836.

"Monday's trading lacks some of the madness that has characterised the past two weeks, but it is likely to be just a lull," said IG chief market analyst Chris Beauchamp.

"Pronouncements on rate and inflation outlooks from central bank policymakers continue to rock markets, and we are going to face more of the same as the market looks towards the next round of meetings from the big central banks.

"This is all a far cry from 2021, but reflects the change in circumstances seen in recent months, and points towards a continuing high-volatility world."

In economic news, UK house prices were expected to slow "considerably" over the next 12 months, lender Halifax said earlier, as households faced a cost-of-living squeeze.

Prices in January rose 0.3% month on month - the slowest pace since last June, in a further confirmation that the post-Covid pandemic recovery was running out of steam as soaring consumer prices dampen sentiment.

On the year, prices were 9.7% higher.

"This situation is expected to become more acute in the short-term as household budgets face even greater pressure from an increase in the cost of living, and rises in interest rates begin to feed through to mortgage rates," said Halifax managing director Russell Galley.

He added that it remained likely that the rate of house price growth "will slow considerably over the next year" and, despite affordability at historically low levels, price rises were outpacing wage growth with younger buyers also struggling to raise deposits.

Buyers were indeed set to face much tougher conditions, with the Bank of England raising interest rates last week for the second time in two months as rampant inflation reached a 30-year high.

Chancellor Rishi Sunak added to the pain, with a manifesto-busting tax hike set to kick in from 6 April.

Across the channel, a closely-watched survey showed investor sentiment strengthening across the eurozone in February.

The headline Sentix economic index came in at 16.6, compared to 14.9 in January, and well above consensus expectations of 15.2.

It was also the highest reading since November.

Within that, the current situation index rose to 19.3 from 16.3, while the expectations index came in at 14.0, the highest reading since July 2021.

"Our assumption that we are in a mid-cycle slowdown, that is, a growth moderation in the middle of an economic cycle, remains unchanged," said Manfred Hübner, Sentix managing director.

"This phase of moderation is not yet complete.

"There is a lack of sustainable new growth drivers. Above all there is a lack of impetus from the international economy."

In the US, the overall index eased to 22.1 from 23.3 in January, the third decline in a row.

South America came in at -1.4, though that was an improvement on January's -5.1, while in Asia excluding Japan the index eased 0.3 points to 21.4.

The global index was 17.0, just 0.1 point up on the previous month.

In equity markets, Rightmove managed gains to 0.91% after an upgrade to 'buy' from 'neutral' at UBS.

Flutter Entertainment jumped 4.02% following reports over the weekend that it was launching a last-minute bid for the operating licence of the National Lottery.

Miners were stronger, with Anglo American up 1.82% and Rio Tinto 2.78% firmer as metals prices rose, while Lloyds Banking Group was up 2.36% and Barclays was 2.19% higher following last week's Bank of England interest rate hike.

Elsewhere, online review platform Trustpilot leapt 7.08%, while cruise operator Carnival was 6.56% stronger by the end of London trading.

On the downside, supermarkets were under pressure, with Ocado Group off 0.21%, J Sainsbury falling 2.12%, and Tesco 1.4% weaker.

Shopping centre owner Hammerson, meanwhile, plunged 5.34%, while opioid addiction treatment maker Indivior was off 1.84%.

Market Movers

FTSE 100 (UKX) 7,573.47 0.76%
FTSE 250 (MCX) 21,797.29 0.39%
techMARK (TASX) 4,419.23 0.77%

FTSE 100 - Risers

Flutter Entertainment (CDI) (FLTR) 11,005.00p 4.02%
International Consolidated Airlines Group SA (CDI) (IAG) 161.10p 3.88%
Melrose Industries (MRO) 152.80p 3.14%
Rio Tinto (RIO) 5,516.00p 2.78%
Standard Chartered (STAN) 568.40p 2.41%
Vodafone Group (VOD) 137.40p 2.37%
Lloyds Banking Group (LLOY) 52.50p 2.35%
Barclays (BARC) 205.00p 2.19%
HSBC Holdings (HSBA) 556.90p 2.18%
Prudential (PRU) 1,246.50p 2.13%

FTSE 100 - Fallers

Evraz (EVR) 455.00p -6.82%
Smith & Nephew (SN.) 1,197.00p -4.01%
B&M European Value Retail S.A. (DI) (BME) 542.20p -2.34%
Spirax-Sarco Engineering (SPX) 12,705.00p -2.22%
Sainsbury (J) (SBRY) 281.80p -2.12%
Land Securities Group (LAND) 783.60p -1.51%
Tesco (TSCO) 291.40p -1.40%
Ashtead Group (AHT) 4,939.00p -1.38%
Severn Trent (SVT) 2,795.00p -1.31%
Coca-Cola HBC AG (CDI) (CCH) 2,463.00p -1.21%

FTSE 250 - Risers

Trustpilot Group (TRST) 164.90p 7.08%
Carnival (CCL) 1,419.00p 6.56%
PureTech Health (PRTC) 275.00p 5.57%
Ferrexpo (FXPO) 270.60p 5.12%
TBC Bank Group (TBCG) 1,506.00p 4.70%
Clarkson (CKN) 3,360.00p 4.51%
Pantheon International (PIN) 324.50p 3.86%
888 Holdings (888) 260.20p 3.83%
easyJet (EZJ) 649.60p 3.60%
BlackRock World Mining Trust (BRWM) 661.00p 3.44%

FTSE 250 - Fallers

Hipgnosis Songs Fund Limited C Shs NPV (SONC) 112.50p -100.00%
Hammerson (HMSO) 37.60p -5.34%
Marks & Spencer Group (MKS) 199.80p -3.09%
Moonpig Group (MOON) 296.60p -2.82%
Auction Technology Group (ATG) 963.00p -2.63%
Dr. Martens (DOCS) 286.60p -2.32%
TI Fluid Systems (TIFS) 235.00p -2.29%
Molten Ventures (GROW) 786.00p -2.13%
Vesuvius (VSVS) 447.80p -1.98%
Future (FUTR) 2,832.00p -1.94%