London open: FTSE steady ahead of busy week

London stocks were steady in early trade on Monday as investors eyed a busy week, with policy announcements due from the Federal Reserve, the Bank of England and the Bank of Japan.

At 0840 GMT, the FTSE 100 was flat at 8,302.21.

Kathleen Brooks, research director at XTB, said: "It may be the last full week of trading before 2025, however, there is a bumper week of data and news to digest that could impact market performance before year end. Central bank decisions, year-end economic data and European political developments are all worth watching."

As far as the BoE rate decision on Thursday is concerned, Brooks said there is virtually no expectation of a rate cut, with the market instead pricing in a 76% chance of a cut in February.

"The BOE have been vocal about their plans for gradual rate cuts, however the weak run of confidence data and economic data means that the commentary from the BOE will be worth watching on Thursday. While we doubt the BOE will cut rates, they could signal a faster pace of cuts next year. There are currently three cuts expected, however, we think that the BOE could cut at a faster pace due to the deterioration in the economic data. If the BOE does sound concerned about the growth outlook at this week’s meeting, then it could have a big impact on financial markets even if they don’t cut rates on Thursday.

"There is also a chance that the market starts pricing in a 50bp cut for February, after arch hawk Catherine Mann said in a recent speech that super-sized rate cuts could have a bigger impact on the economy rather than a gradual approach to rate cuts."

Investors were mulling the latest data from Rightmove, which showed that new seller asking prices fell by 1.7% on the month in December following a 1.4% decline the month before.

On the year, prices were up 1.4% following 1.2% growth in November.

The average price of a home was £360,197 this month, versus £366,592 a month earlier.

Rightmove said that despite "the festive lull", activity remains "substantially" stronger than the same period a year ago, with the number of sales being agreed up 22% and new buyer demand up 13%.

"This momentum is a good sign for another Boxing Day activity bounce," it said.

Tim Bannister, Rightmove director of property science, said: "We are now looking ahead to the traditional Rightmove Boxing Day bounce in home-mover activity, which has increasingly become a key date in the housing market calendar. Each year, our real-time data can pinpoint the exact moment that the turkey is finished, family games run out of steam, mobile devices are picked up, and prospective movers flood onto Rightmove and get their 2025 move started.

"If this year is anything like recent years, those early birds who get their search started the day after the festivities are over are likely to be rewarded with plenty of fresh property choice to consider."

In equity markets, Bunzl was boosted by an upgrade to ‘outperform’ at RBC Capital Markets.

Ladbrokes owner Entain was under the cosh after Australia’s financial crime regulator began civil penalty proceedings against the company related to alleged contraventions of an anti-money laundering and counter-terrorism financing act.

Entain said that, judging by the fines handed out for similar cases in the past, the investigation "may result in a penalty being levied which could be potentially material".

DCC fell after a downgrade to ‘sector perform’ at RBC Capital Markets, while PageGroup was knocked lower by a downgrade to ‘neutral’ at BNP Paribas Exane.

Computacenter was weaker after it announced the immediate departure of Christian Jehle as its chief financial officer and an executive director by mutual agreement, with his responsibilities temporarily managed by the finance team and executive management until a successor is appointed.

Market Movers

FTSE 100 (UKX) 8,302.21 0.02%
FTSE 250 (MCX) 20,894.03 0.02%
techMARK (TASX) 4,655.51 -0.21%

FTSE 100 - Risers

Bunzl (BNZL) 3,588.00p 1.93%
NATWEST GROUP (NWG) 411.40p 1.45%
Lloyds Banking Group (LLOY) 56.06p 1.23%
Barclays (BARC) 272.70p 1.22%
Standard Chartered (STAN) 1,007.50p 1.07%
AstraZeneca (AZN) 10,556.00p 0.84%
International Consolidated Airlines Group SA (CDI) (IAG) 295.30p 0.72%
Rolls-Royce Holdings (RR.) 575.80p 0.56%
Smith (DS) (SMDS) 550.00p 0.55%
Experian (EXPN) 3,616.00p 0.47%

FTSE 100 - Fallers

Entain (ENT) 783.60p -3.85%
Persimmon (PSN) 1,239.00p -2.17%
DCC (CDI) (DCC) 5,360.00p -1.74%
Rentokil Initial (RTO) 407.80p -1.24%
Barratt Redrow (BTRW) 431.90p -1.17%
Schroders (SDR) 314.40p -1.13%
Diageo (DGE) 2,589.50p -1.11%
Frasers Group (FRAS) 610.00p -1.05%
Taylor Wimpey (TW.) 123.15p -0.97%
Centrica (CNA) 129.90p -0.95%

FTSE 250 - Risers

PureTech Health (PRTC) 176.20p 8.23%
Johnson Matthey (JMAT) 1,415.00p 4.66%
W.A.G Payment Solutions (WPS) 82.80p 3.50%
Sequoia Economic Infrastructure Income Fund Limited (SEQI) 81.00p 1.89%
CMC Markets (CMCX) 266.50p 1.52%
NextEnergy Solar Fund Limited Red (NESF) 67.25p 1.43%
Moonpig Group (MOON) 225.50p 1.35%
Alliance Witan (ALW) 1,288.00p 1.26%
SDCL Energy Efficiency Income Trust (SEIT) 56.50p 1.25%
Baillie Gifford US Growth Trust (USA) 293.00p 1.21%

FTSE 250 - Fallers

Computacenter (CCC) 2,114.00p -5.54%
Bloomsbury Publishing (BMY) 670.00p -4.01%
Petershill Partners (PHLL) 250.00p -2.34%
HICL Infrastructure (HICL) 118.40p -1.66%
Bakkavor Group (BAKK) 140.00p -1.41%
SThree (STEM) 266.50p -1.30%
Energean (ENOG) 990.50p -1.15%
Endeavour Mining (EDV) 1,488.00p -1.13%
Pennon Group (PNN) 618.00p -0.96%
International Workplace Group (IWG) 161.40p -0.92%