Latest News

London open: Stocks rally as inflation eases more than expected

0

London open: Stocks rally as inflation eases more than expected By Sharecast

Breaking News

‘;

Stock Markets

Published Dec 20, 2023 09:28

London open: Stocks rally as inflation eases more than expected

Sharecast – At 0840 GMT, the FTSE 100 was up 1.3% at 7,733.67, comfortably outperforming its European counterparts.

Figures released by the Office for National Statistics showed that consumer price inflation slowed to 3.9% from 4.6% in October. This marked the lowest reading since September 2021 and was below analysts’ expectations of 4.4%.

The ONS said the largest downward contributions came from transport, recreation and culture, and food and non-alcoholic beverages.

Core inflation – which strips out volatile food and energy prices – fell to 5.1% in November from 5.7% the month before. Economists were expecting it to ease to 5.6%.

ONS chief economist Grant Fitzner said: “Inflation eased again to its lowest annual rate for over two years, but prices remain substantially above what they were before the invasion of Ukraine.

“The biggest driver for this month’s fall was a decrease in fuel prices after an increase at the same time last year.

“Food prices also pulled down inflation, as they rose much more slowly than this time last year.

“There was also a price drop for a range of household goods and the cost of second-hand cars.”

ING economist James Smith said markets are now pricing a whopping 140 basis points of rate cuts next year.

“That’s maybe pushing it, but investors are right to be thinking about several cuts next year, despite the Bank of England’s recent pushback,” he said.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: “November’s surprisingly sharp fall in CPI inflation reinforces the likelihood that the MPC will begin to reduce Bank Rate in the first half of 2024, far earlier than it has been prepared to signal so far.”

Corporate news was scarce as we head towards the Christmas break, but Intertek (LON:ITRK) jumped after a double upgrade to ‘outperform’ at Exane, which said consensus is now overly bearish on the testing and inspection company’s margin outlook.

Elsewhere, Petrofac (LON:PFC) surged 45% after it saying it has secured a second contract award under the six-project, $14bn multi-year framework agreement with Tennet, with its portion valued at around $1.4bn.

Market Movers

FTSE 100 (UKX) 7,733.67 1.25%

FTSE 250 (MCX) 19,522.98 1.07%

techMARK (TASX) 4,275.90 1.20%

FTSE 100 – Risers

Intertek Group (LON:ITRK) 4,225.00p 3.07%

Barclays (LON:BARC) 151.46p 2.57%

SEGRO (SGRO) 900.80p 2.43%

Vodafone Group (LON:VOD) 68.40p 2.32%

Marks & Spencer Group (MKS (LON:MKS)) 270.60p 2.31%

Legal & General Group (LGEN) 251.20p 2.24%

Flutter Entertainment (CDI) (FLTR) 14,220.00p 2.16%

Airtel Africa (AAF) 130.30p 2.12%

Beazley (BEZ) 537.00p 2.09%

IMI (LON:IMI) 1,686.00p 2.06%

FTSE 100 – Fallers

Smith (DS) (SMDS) 304.70p -2.03%

London Stock Exchange Group (LON:LSEG) 9,230.00p -0.17%

Dechra Pharmaceuticals (LON:DPH) 3,846.00p 0.05%

Smurfit Kappa Group (CDI) (LON:SKG) 3,174.00p 0.06%

Centrica (LON:CNA) 141.70p 0.25%

Rolls-Royce Holdings (LON:RR.) 295.80p 0.27%

Experian (EXPN) 3,213.00p 0.31%

Halma (LON:HLMA) 2,300.00p 0.35%

Rio Tinto (LON:RIO) 5,807.00p 0.36%

Associated British Foods (LON:ABF) 2,388.00p 0.38%

FTSE 250 – Risers

Diversified Energy Company (DEC) 1,164.00p 3.74%

Indivior (INDV) 1,185.00p 3.31%

Helios Towers (HTWS) 83.65p 3.27%

Currys (LON:CURY) 50.95p 3.18%

IP Group (LON:IPO) 58.70p 3.16%

Petershill Partners (PHLL) 165.20p 2.74%

Harbour Energy (LON:HBR) 242.50p 2.71%

International Public Partnerships Ltd. (INPP) 139.00p 2.66%

Auction Technology Group (LON:ATG) 528.00p 2.52%

Hargreaves Lansdown (LON:HRGV) (HL.) 738.40p 2.47%

FTSE 250 – Fallers

Urban Logistics Reit (SHED) 123.20p -1.60%

Tullow Oil (LON:TLW) 35.16p -1.18%

Sequoia Economic Infrastructure Income Fund Limited (SEQI) 83.60p -0.59%

BlackRock (NYSE:BLK) World Mining Trust (BRWM) 574.00p -0.52%

Rathbones Group (RAT) 1,710.00p -0.47%

Darktrace (LON:DARK) 370.90p -0.32%

4Imprint Group (FOUR) 4,595.00p -0.22%

International Distributions Services (IDS) 279.40p -0.14%

Ferrexpo (LON:FXPO) 78.50p -0.13%

Foresight Solar Fund Limited (FSFL) 97.60p -0.10%

Read more on Sharecast.com

London open: Stocks rally as inflation eases more than expected

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2023 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

UK inflation falls far more than expected, lowest since Sept 2021

Previous article

3 FAANG Stocks With 30% to 53% Upside in 2024, According to a Trio of Wall Street Analysts

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News