London open: FTSE edges down ahead of Autumn Statement

London stocks edged lower in early trade on Thursday following losses in the US and Asia, as investors eyed Chancellor Jeremy Hunt’s Autumn Statement.

At 0840 GMT, the FTSE 100 was down 0.2% at 7,335.91.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "The FTSE 100 has opened marginally lower, with investors largely treading water, waiting to find out exactly what will pop out of the Chancellor’s red box.

"The end of the era of cheap money has been particularly painful for the UK. As rates have been ramped up to fight the enemy of inflation, the costs of debt repayments for the UK have escalated, with £22 billion more paid in interest this year than last. For consumers the march upwards of prices has been painful, and budgets, particularly for those on lower incomes, have been squeezed to breaking point during this cost-of-living crisis, which has had a big knock-on effect on discretionary spending.

"That’s why help for the poorest households is expected to be the centrepiece for this budget, through a rise in benefits and pensions in line with double digit inflation, which will mount to a big bill for the Treasury. To try and re-coup that, stealth taxes on higher income earners are rumoured to be brought in through a freezing of tax thresholds.

"Help with energy bills is expected to be extended, at a lower rate, paid for by a grab on the windfall profits on electricity generating firms, in addition to North Sea oil and gas producers. It has been estimated that taxing generators could raise around £4 billion.

"The UK government’s Autumn Statement will mark a complete about turn from the Truss administration’s plans for a sugar rush boost to growth through tax cuts which sparked mayhem on bond markets and saw the UK’s risk premium shoot up."

In equity markets, safety equipment firm Halma slumped despite reporting record half-year revenue and profit.

Spirax-Sarco Engineering was in the red even as it reiterated guidance for full-year operating profits and reported continued strong demand despite a weakening outlook for global industrial production.

Great Portland Estates fell as it said it swung to a pre-tax loss in the first half, while Investec was weaker as it said funds under management declined 7.6% in H1.

Hargreaves Lansdown and Rathbones were both knocked lower by rating downgrades at RBC Capital Markets.

On the upside, Burberry edged up after the luxury fashion brand posted a jump in first-half profits and set new medium-term guidance for sales. In the 26 weeks to 1 October, adjusted operating profit rose 6% at constant exchange rates to £238m, while revenues grew 5% to £1.35bn.

Mitie rallied after the outsourcer lifted its full-year operating profit guidance as it posted a rise in interim revenues but a drop in profit amid fewer Covid-related contracts.

Market Movers

FTSE 100 (UKX) 7,335.91 -0.21%
FTSE 250 (MCX) 19,129.96 0.09%
techMARK (TASX) 4,331.31 -0.25%

FTSE 100 - Risers

Admiral Group (ADM) 2,076.00p 1.71%
Taylor Wimpey (TW.) 102.80p 1.38%
Flutter Entertainment (CDI) (FLTR) 11,440.00p 1.33%
Whitbread (WTB) 2,497.00p 1.22%
RS Group (RS1) 950.50p 1.17%
Smiths Group (SMIN) 1,590.50p 0.98%
Informa (INF) 590.20p 0.82%
London Stock Exchange Group (LSEG) 8,060.00p 0.80%
Entain (ENT) 1,329.00p 0.80%
WPP (WPP) 859.80p 0.77%

FTSE 100 - Fallers

Halma (HLMA) 2,272.00p -3.28%
Spirax-Sarco Engineering (SPX) 11,260.00p -2.93%
Hargreaves Lansdown (HL.) 853.00p -2.09%
Intermediate Capital Group (ICP) 1,168.50p -1.56%
Experian (EXPN) 2,883.00p -1.40%
Sage Group (SGE) 800.00p -1.38%
Ocado Group (OCDO) 716.00p -1.38%
Endeavour Mining (EDV) 1,627.00p -1.27%
BAE Systems (BA.) 760.00p -1.27%
Convatec Group (CTEC) 222.00p -1.25%

FTSE 250 - Risers

Mitie Group (MTO) 79.30p 6.73%
4Imprint Group (FOUR) 4,160.00p 3.74%
Grainger (GRI) 244.00p 3.04%
Shaftesbury (SHB) 388.00p 2.43%
Vietnam Enterprise Investments (DI) (VEIL) 521.00p 2.36%
Wizz Air Holdings (WIZZ) 2,213.00p 1.98%
Beazley (BEZ) 613.50p 1.49%
Premier Foods (PFD) 110.00p 1.48%
Tritax Big Box Reit (BBOX) 149.70p 1.42%
Synthomer (SYNT) 137.90p 1.40%

FTSE 250 - Fallers

Great Portland Estates (GPE) 513.50p -5.43%
Investec (INVP) 457.50p -2.85%
ICG Enterprise Trust (ICGT) 1,064.00p -2.74%
Ninety One (N91) 201.20p -2.42%
Genuit Group (GEN) 307.00p -2.07%
International Distributions Services (IDS) 235.00p -2.00%
Bankers Inv Trust (BNKR) 100.00p -1.96%
Virgin Money UK (VMUK) 141.05p -1.81%
Rathbones Group (RAT) 1,984.00p -1.78%
Herald Investment Trust (HRI) 1,826.00p -1.72%