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LONDON MARKET OPEN: Indices green ahead of Fed inflation gauge

Fri, 27th Sep 2024 09:09

(Alliance News) - Stock prices in London opened somewhat higher on Friday, as investors wait for the US personal consumption expenditure data, plus various European consumer price and confidence readings.

"Global markets are set to end September on a sparkling note, with the Chinese authorities finally stepping up to the plate and with the main US indices continuing to test new record highs," interactive investor's Richard Hunter said.

"The next part of the jigsaw follows later today with the release of the Fed's preferred inflation gauge, the Personal Consumption Expenditures index, where the core number is expected to have risen by 0.2% on a monthly basis, annualised to 2.7%. Should the release confirm these numbers, markets would be set for another positive day in the final full week of trading in September, although a larger than expected increase could unhinge the overriding positive momentum which is currently in place."

The FTSE 100 index opened up 13.09 points, 0.2%, at 8,298.00. The FTSE 250 was up 79.66 points, 0.4%, at 21,090.10, and the AIM All-Share was up 2.56 points, 0.4%, at 744.21.

There were no major FTSE 100 company events. Prudential led the index with a 3.8% rise, while mining companies were in the red despite continued stimulus measures from China.

Fresnillo was the worst performer, albeit with a mere 1.5% loss, while Anglo American and Endeavour Mining were down 0.5%.

On the FTSE 250, Cranswick gained 3.8%.

The food producer said trading since the end of the first quarter has been stronger than expected, "underpinned by continued robust volume growth in our core UK food business, a positive ongoing contribution from our expanding pig farming operations, industry leading service levels and a relentless focus on quality and innovation".

It said it expects its first-half performance to be ahead of the same period last year.

Cranswick is due to publish its interim results on November 26.

PureTech Health gained 2.9%.

Its invention KarXT has received US Food & Drug Administration approval for treating schizophrenia.

It said the milestone triggers payments to it totalling USD29 million under agreements with Royalty Pharma and Karuna Therapeutics, which PureTech sold to Bristol Myers Squibb in March. PureTech is also entitled to potential future payments related to additional milestones as well as approximately 2% royalties on net annual sales over USD2 billion.

Bristol Myers Squibb will market KarXT as Cobenfy.

Merchants Trust rose 0.6%.

Net asset value per share rose to 594.6 pence at July 31, from 549.8p one year prior. The total return of its investment portfolio was 13.5% for the first half compared to 12.3% from its benchmark.

Merchants Trust declared an interim dividend of 7.1p per share, up from 7.0p, and said it was optimistic about its medium-term outlook.

In smaller companies, abrdn Property Income Trust rose 1.6%.

The firm has agreed the sale of the entire share capital of wholly-owned subsidiary abrdn Property Holdings, to funds and accounts managed by GoldenTree Asset Management, for cash consideration of GBP351 million.

Specifically, GoldenTree is buying 39 assets comprising most of API's investment property portfolio.

The Cboe UK 100 was up 0.2% at 830.952, the Cboe UK 250 was up 0.4% at 18,598.677, and the Cboe Small Companies was up 0.2% at 14,704.949.

In European equities on Friday, the CAC 40 in Paris was up 0.1%, while the DAX 40 in Frankfurt was up 0.2%.

Luxury retailers responded positively to China's continued liquidity injections, with Kering rising 4.2% and LVMH rising 3.4%.

The pound was quoted at USD1.3366 early on Friday in London, compared to USD1.3412 at the equities close on Thursday. The euro stood at USD1.1135, lower against USDUSD1.1179. Against the yen, the dollar was trading lower at JPY143.38 compared to JPY144.69.

In Asia on Friday, the Nikkei 225 index in Tokyo was up 2.3%. In China, the Shanghai Composite was up 2.9%, while the Hang Seng index in Hong Kong was up 3.1%. The S&P/ASX 200 in Sydney closed up 0.1%.

In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.6%, the S&P 500 up 0.4% and the Nasdaq Composite up 0.6%.

Brent oil was quoted lower at USD71.15 a barrel early in London on Friday from USD71.58 late Thursday.

Gold was quoted lower at USD2,665.65 an ounce against USD2,669.65.

Still to come on Friday's economic calendar, there is German unemployment data; eurozone consumer confidence; and multiple US releases at 1330 BST just after comments from Fed governor Michelle Bowman.

By Emma Curzon, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.

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