London open: Stocks flat as investors eye retail sales, Yellen

Stocks in London were flat at the open as investors looked to the release of UK retail sales data and a speech by Federal Reserve chair Janet Yellen.

At 0830 GMT, the FTSE 100 was up 0.1% to 6,757.06. Meanwhile, oil prices were also little changed, with West Texas Intermediate and Brent crude down 0.1% to $45.54 a barrel and $46.58, respectively.

Spreadex’s Connor Campbell said: “For the FTSE and pound the main focus is on the UK’s latest retail sales reading. September’s figures failed to see the expected back-to-school bounce into positive territory, instead arriving at a stagnant 0.0%; analysts are still holding out hope, however, for a healthy jump in October, with forecasts suggesting a 0.5% rise.

“If accurate the figure will likely be more beneficial to the pound than the FTSE, though, dependant on the retail sales break-down, any good news could filter through to the index’s beleaguered high street favourites. Currently sterling has the edge on its index peer – while the FTSE has slipped by around 6 points the pound has risen by 0.1% against the dollar, though admittedly it did fall 0.3% against the euro.”

UK retail sales are at 0930 GMT. In the US, the consumer price index, building permits, housing starts and initial jobless claims are at 1330 GMT, while Yellen is due to testify before Congress at 1500 GMT.

In corporate news, Royal Mail fell into the red after it said half-year revenue edged up thanks to its European business, but the EU referendum resulted in a reduction in UK marketing activity.

Building materials group CRH nudged lower as it reported a 6% rise in cumulative sales in the first nine months of the year and said it continues to expect earnings for the year to be in excess of €3bn, while Great Portland Estates lost ground after reporting a half-year loss.

Engineering consultancy WS Atkins declined as it posted a 14% rise in underlying pre-tax tax profit for the six months to the end of September, but a 58% drop in statutory pre-tax profit.

On the upside, Rio Tinto edged higher after terminating the contracts of two directors following an internal review into a controversial payment to a consultant concerning the Simando iron ore project in Guinea.

Investec advanced as it said first-half profit pushed up 20%, while Ted Baker rallied after it said revenue in the third quarter rose 14.8%, up a touch from the 14.4% acceleration seen in the first half of the year.

Merchant bank Close brothers was also in the black as it said it has made a “very good start to the year”, mainly on the back of strength in its banking division and higher trading income in market maker Winterflood.

Market Movers

FTSE 100 (UKX) 6,749.11 -0.01%
FTSE 250 (MCX) 17,519.21 0.26%
techMARK (TASX) 3,297.03 -0.11%

FTSE 100 - Risers

Randgold Resources Ltd. (RRS) 5,945.00p 1.62%
Capita (CPI) 580.50p 1.57%
Anglo American (AAL) 1,109.50p 1.42%
Johnson Matthey (JMAT) 3,373.00p 1.14%
Carnival (CCL) 4,001.00p 1.14%
Sage Group (SGE) 667.50p 1.06%
easyJet (EZJ) 1,071.00p 1.04%
Barratt Developments (BDEV) 474.30p 1.02%
Antofagasta (ANTO) 678.50p 0.97%
Burberry Group (BRBY) 1,396.00p 0.94%

FTSE 100 - Fallers

Royal Bank of Scotland Group (RBS) 202.10p -3.02%
Royal Mail (RMG) 487.10p -2.37%
Imperial Brands (IMB) 3,410.00p -1.67%
TUI AG Reg Shs (DI) (TUI) 1,016.00p -1.36%
Lloyds Banking Group (LLOY) 59.60p -1.34%
Shire Plc (SHP) 4,781.00p -1.32%
Hikma Pharmaceuticals (HIK) 1,712.00p -1.21%
GlaxoSmithKline (GSK) 1,508.50p -1.15%
Marks & Spencer Group (MKS) 334.20p -0.98%
AstraZeneca (AZN) 4,319.00p -0.79%

FTSE 250 - Risers

Hill & Smith Holdings (HILS) 1,300.00p 7.44%
Safestore Holdings (SAFE) 358.00p 3.08%
Investec (INVP) 514.50p 2.80%
IMI (IMI) 938.50p 2.68%
Rank Group (RNK) 199.10p 2.42%
Synthomer (SYNT) 355.10p 2.16%
Grainger (GRI) 219.40p 1.95%
Regus (RGU) 231.80p 1.89%
IP Group (IPO) 147.70p 1.86%
Ted Baker (TED) 2,546.00p 1.80%

FTSE 250 - Fallers

Lancashire Holdings Limited (LRE) 651.00p -7.40%
Virgin Money Holdings (UK) (VM.) 319.50p -5.61%
Softcat (SCT) 312.00p -4.15%
Euromoney Institutional Investor (ERM) 1,003.00p -3.09%
Genus (GNS) 1,889.00p -2.78%
Great Portland Estates (GPOR) 613.00p -2.31%
Redefine International (RDI) 37.96p -2.22%
AO World (AO.) 154.30p -2.16%
Atkins (WS) (ATK) 1,635.00p -1.51%
Domino's Pizza Group (DOM) 329.10p -1.32%