London close: Stocks mixed after flurry of corporate news

London markets had a mixed performance on Tuesday, influenced by factors including uninspiring Chinese trade figures, the latest UK house price and retail sales data, and a barrage of corporate news.

The FTSE 100 index closed with a modest decline of 0.1%, settling at 7,410.04 points, while the FTSE 250 index saw a slight uptick of 0.08% to 17,761.71.

In currency markets, sterling was last down 0.5% on the dollar at $1.2282, while it declined 0.17% against the euro to trade at €1.1498.

Axel Rudolph, senior market analyst at IG, said that after last week’s strong rally, global stock indices were losing upside momentum during another quiet session amid a light economic calendar and as they approached technical resistance.

“October UK retail sales rose less than in September as higher rental, mortgage and fuel costs due to the colder weather weighed on consumer sentiment.

“Earnings by Walt Disney and several European heavyweights in the coming days may lead to a few days of consolidation.”

UK house prices rebound, but market remains subdued

In economic news, UK house prices rebounded in October after six consecutive months of declines, driven by constrained supply.

According to data from lender Halifax, house prices increased by 1.1% during the month, following a 0.3% drop in September.

However, demand in the housing market remained subdued overall, as prices were down by 3.2% compared to October last year.

The average home price in the UK now stands at £281,974, according to the data.

“Prospective sellers appear to be taking a cautious attitude, leading to a low supply of homes for sale,” said Kim Kinnaird, director at Halifax Mortgages.

“This is likely to have strengthened prices in the short-term rather than prices being driven by buyer demand, which remains weak overall.

“While many people will have seen their income grow through wage rises, higher interest rates and wider affordability pressures continue to be challenges for buyers.”

In the eurozone, construction activity experienced its most significant decline in 10 months in October, according to fresh survey data.

The S&P Global/HCOB eurozone construction PMI revealed that the housing sector remained particularly weak, primarily due to a sharp drop in new orders as demand conditions deteriorated.

That decline in new business led to the fastest contraction in purchasing activity since May 2020 and a continued decrease in employment levels.

Business confidence also suffered, reaching its lowest point since December of the previous year.

Dr Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, commented that the euro area’s construction sector remained challenging, with housing, commercial, and civil engineering projects feeling the impact.

“The high interest rate sensitivity of the construction sector is unmistakable,” he said.

“Back in March 2022, when 10-year German Bund rates - the yield benchmark - began their serious climb, it took just two months for the eurozone’s housing sector to start shrinking, according to the PMI data.

Meanwhile, China’s trade data showed a steeper-than-expected fall in exports last month, while imports surprisingly increased.

Official customs data indicated that China’s exports declined by 6.4% year-on-year in October, following a 6.2% drop in September.

That decline was more significant than anticipated, as forecasts predicted a 3.5% decrease.

In contrast, imports rose by 3%, marking the first increase in imports in seven months, as opposed to September’s 6.3% fall and forecasts for a 4.8% decline.

As a result, China’s trade surplus narrowed to $56.53 billion from September’s upwardly revised $77.71 billion.

AB Foods and housebuilders rise, Naked Wines plunges

On London’s equity markets, Associated British Foods rose 6.74% after the Primark owner reported robust double-digit growth in its top and bottom lines for the last financial year and announced its intention to return an additional £500 million to shareholders.

Watches of Switzerland Group surged 12.52% after it reaffirmed its full-year guidance, reported a substantial increase in second-quarter revenue, and outlined plans to more than double its sales and profits by fiscal year 2028.

Housebuilder Persimmon recorded a 6.38% increase by the end of trading.

Despite a 37% drop in finished builds in the third quarter and a significant decline in its order book, the company raised its guidance for new home completions.

The optimism also influenced other housebuilders, with Barratt Developments up 2.71% and Taylor Wimpey ahead 1.68%.

Vistry saw its stock rise 3.27% after signing a substantial £819m partnership deal with Leaf Living and Sage Homes.

The partnership was aiming to deliver more than 2,900 mixed-tenure new homes.

Direct Line Insurance Group increased 8.7% after it reported strong premium growth, with third-quarter gross written premiums from ongoing operations surging by 68.3% to £1.1 billion.

On the downside, RS Group declined 3.16% after the firm reported a decrease in first-half revenue and profit.

Promotional products supplier 4imprint Group slid 11.51% despite revising its full-year profit outlook upwards.

Restaurant Group lost 2.71% after Pizza Express owner Wheel Topco said it did not intend to make an offer for the Wagamama owner due to prevailing “market conditions”.

Online wine retailer Naked Wines tumbled 32.76% after downgrading its full-year guidance, citing weaker-than-expected performance in the US.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 7,410.04 -0.10%
FTSE 250 (MCX) 17,761.71 0.08%
techMARK (TASX) 4,093.27 0.79%

FTSE 100 - Risers

Beazley (BEZ) 567.50p 7.08%
Associated British Foods (ABF) 2,250.00p 6.84%
Ocado Group (OCDO) 550.20p 3.81%
Frasers Group (FRAS) 836.00p 3.03%
NATWEST GROUP (NWG) 195.20p 2.85%
Marks & Spencer Group (MKS) 225.20p 2.83%
Barratt Developments (BDEV) 449.70p 2.25%
Sage Group (SGE) 980.60p 2.02%
RS Group (RS1) 695.40p 1.96%
Taylor Wimpey (TW.) 115.15p 1.77%

FTSE 100 - Fallers

Anglo American (AAL) 2,139.50p -3.54%
Antofagasta (ANTO) 1,305.00p -3.41%
Endeavour Mining (EDV) 1,692.00p -2.42%
Glencore (GLEN) 431.60p -2.35%
Centrica (CNA) 150.85p -2.30%
BP (BP.) 481.05p -2.13%
Hikma Pharmaceuticals (HIK) 1,764.00p -2.05%
Rio Tinto (RIO) 5,231.00p -1.95%
Shell (SHEL) 2,628.00p -1.78%
Standard Chartered (STAN) 622.40p -1.52%

FTSE 250 - Risers

Watches of Switzerland Group (WOSG) 587.00p 13.10%
Direct Line Insurance Group (DLG) 170.20p 8.03%
Persimmon (PSN) 1,145.50p 5.92%
Darktrace (DARK) 359.90p 4.53%
Hilton Food Group (HFG) 674.00p 4.33%
Vistry Group (VTY) 756.00p 3.00%
Moonpig Group (MOON) 172.00p 2.50%
Helios Towers (HTWS) 66.50p 2.31%
Crest Nicholson Holdings (CRST) 174.10p 2.29%
Baltic Classifieds Group (BCG) 207.00p 2.22%

FTSE 250 - Fallers

4Imprint Group (FOUR) 4,435.00p -12.00%
CAB Payments Holdings (CABP) 62.00p -7.05%
Harbour Energy (HBR) 228.00p -4.68%
Ferrexpo (FXPO) 75.40p -4.38%
Telecom Plus (TEP) 1,580.00p -4.24%
Mobico Group (MCG) 60.75p -3.88%
Ithaca Energy (ITH) 160.40p -3.49%
Essentra (ESNT) 145.20p -3.33%
Digital 9 Infrastructure NPV (DGI9) 48.70p -3.00%
Pantheon International (PIN) 287.00p -2.88%