Yahoo Finance FTSE 100 Live: Blue-chip shares rally to close at 7,453.58 as interest rate fears ease
Blue-chip shares faced selling pressure this morning, with banks among those leading the FTSE 100 into negative territory, but recovered as the day went on to return close to where they started.
Closely-watched stocks in the FTSE 350 index included Aston Martin Lagonda, with shares up by more than 10% after the luxury car maker announced a new supply deal for electric vehicle batteries.
FTSE 100 Live Monday
Cineworld set to enter UK administration
Aston Martin shares jump on EV supply switch
Blue-chip shares struggle, oil price flat
FTSE closes at 7,453.58
Monday 26 June 2023 17:07 , Daniel O'Boyle
The FTSE 100 closed at 7,453.58 today after a leate-morning rally.
The blue-chip index was down by as much as 0.8%, with banking stocks leading the decline, but picked up by lunchtime and remained close to flat for the rest of the day.
Sainsbury’s was the day’s top riser while Vodafone was the biggest faller.
Ikea to pull Daim maker Mondelez chocolate from its shelves
Monday 26 June 2023 16:22 , Daniel O'Boyle
Furniture giant Ikea has said that it plans to phase out products owned by Mondelez, the company behind Cadbury’s, amid a boycott across much of Scandinavia of the confectionary-maker’s products.
Ikea said that the decision was taken as it tries to replace some of what it sells with its own-brand products.
This will mean that the business will stop selling Marabou and Daim products in the UK, chocolates that are popular in Ikea’s native Sweden.
Stubbornly high inflation ‘could pave way for state pension boost next year’
Monday 26 June 2023 14:57 , Daniel O'Boyle
Stubbornly high inflation could pave the way for another bumper state pension boost next year, if the “triple lock” is maintained, according to a finance expert.
September’s inflation figure is used to help calculate the triple lock, and projections indicate that Consumer Prices Index (CPI) inflation could still be sitting at around 7% this autumn.
Under the triple lock, the state pension is uprated in April by inflation, wages or 2.5%, whichever is higher.
US stocks creep up
Monday 26 June 2023 14:46 , Daniel O'Boyle
Wall Street shares are slightly higher since opening, with banks leading the way.
The S&P 500 and the Dow Jones are each up 0.1%, to 4355 and 33764, respectively, while the Nasdaq is up 0.3% to 13525.
A number of regional lenders - which have been some of the most volatile stocks on Wall Street so far this year - are among the top risers, with Comerica, Lincoln National, M&T and Zions Bancorporation all gaining at least 2.5%.
Sainsbury’s cuts prices on essentials amid pressure to pass on lower costs
Monday 26 June 2023 14:42 , Daniel O'Boyle
Sainsbury’s has unveiled £15 million of price cuts across cupboard essentials such as rice and pasta in the latest move to pass on lower wholesale costs to shoppers.
The UK’s second largest supermarket chain will roll out the reductions on the own-brand items from Tuesday, also lowering prices on staples including corn flakes, jams and runny honey.
The company added that, from Monday, all Sainsbury’s “happier and healthier” whole chicken breast fillets will be price-matched to Aldi for the first time.
Wall Street shares to open flat
Monday 26 June 2023 14:28 , Daniel O'Boyle
US shares are set for a steady opening today, according to futures markets.
S&P 500 futures are down 2.7 points to 4386, while Dow Jones futures are down 18 points to 33959 and Nasdaq futures are up by 3 points to 15061.
IBM is among the stocks to watch as it announced the $5bn acquisition of Apptio.
Royal Mail to face inflation-linked cap on second class stamps until 2029
Monday 26 June 2023 14:25 , Daniel O'Boyle
The price of a second class stamp is set to be pegged to inflation until at least 2029, the UK communications regulator has said in efforts to keep letter-sending affordable.
But Ofcom said it wants to scrap the current price cap on parcel services.
Under new proposals, Ofcom said it would keep a cap on standard second class letters, and that average prices should rise by no more than inflation from what they are currently.
Royal Mail to face inflation-linked cap on second class stamps until 2029
Monday 26 June 2023 13:31 , Daniel O'Boyle
The price of a second class stamp is set to be pegged to inflation until at least 2029, the UK communications regulator has said in efforts to keep letter-sending affordable.
But Ofcom said it wants to scrap the current price cap on parcel services.
Under new proposals, Ofcom said it would keep a cap on standard second class letters, and that average prices should rise by no more than inflation from what they are currently.
PM prepared to make decisions ‘people may not like’ on public sector pay awards
Monday 26 June 2023 13:16 , Daniel O'Boyle
The Prime Minister has warned he will not shy away from making decisions “people may not like” to control inflation as he again refused to commit to accepting recommendations for public sector pay rises.
Ministers have suggested they could choose to ignore advice by independent review bodies to hike public sector pay as part of UK Government attempts to calm the rate of rising prices — an option the Prime Minister has refused to take off the table.
Rishi Sunak has set halving inflation by the end of the year as his top priority ahead of a likely general election in 2024.
FTSE 100 back to Friday’s close as traders pare rate hike bets
Monday 26 June 2023 12:45 , Daniel O'Boyle
The FTSE 100 is back to where it started the day, as banking shares picked up from the lows reached this morning amid more measured interest rate expectations.
Having previously expected interest rates to peak at 6.25%, markets now see a peak of 6% once again. That helped baking stocks improve, though major lenders are still down for the day, with Lloyds the sector’s biggest faller, down 1.5%.
The top risers so far today have beenn Sainsbury’s and Premier Inn owner Whitbread.
AB Foods investors take profits after latest upgrade
Monday 26 June 2023 12:10 , Daniel O'Boyle
AB Foods shares are down slightly this morning despite its higher profit outlook, as investors cash in on recent gains.
Strong spending at Primark eases fears on economy but adds to inflation worries
Monday 26 June 2023 11:46 , Daniel O'Boyle
The owners of Primark upped profit forecasts today, helped by strong sales at the budget fashion house, in a move that will ease fears about the economy, but may unnerve the Bank of England as policymakers fight inflation.
The chain, which has twin landmark shops on London’s Oxford Street, is a barometer of high street spending in almost 200 UK outlets. With the Bank of England waiting for its rate rises to cool consumer spending in the fight against inflation, there was little in the trading update to ease the nerves of under-fire BOE governor Andrew Bailey.
Customers were not cutting back. Seasonal summer sales were strong, particularly for health and beauty products. In the 12 weeks to May 27, like-for-like sales, from stores open at least a year, were up 7% and total sales up 13%. ABF also said the rises were “supported by higher average selling prices”.
FTSE 100 falls again, downgrade hits Lloyds shares
Monday 26 June 2023 10:30 , Graeme Evans
Shares in Lloyds Banking Group today fell 2% or 0.8p to 41.5p after JP Morgan switched to an “underweight” rating and cut its target price to 42p from 56p.
Similar caution towards Barclays and NatWest also meant their shares lost 2.7p to 142.5p and 2.8p to 226.4p respectively, as worries build that rising interest rates will cause a demand shock and spike in bad debt levels.
The banking sell-off meant the FTSE 100 index lost another 53.89 points to 7407.98, adding to last week’s worst performance since March. Demand fears left British Airways owner IAG off 2.35p to 156.6p and GKN owner Melrose Industries down 8.4p to 485.5p.
BAE Systems came under selling pressure as shares unwound some of the gains seen since the start of the Ukraine war, falling 3% or 31p to 906.8p.
Other fallers included Vodafone amid signs that its deal with Three to create the UK’s biggest mobile phone company is facing heightened parliamentary scrutiny because of links with China. Shares fell another 1.6p to 71.13p.
Investors took shelter in the retail sector to leave Sainsbury’s 2.1p higher at 259.3p and B&M European Value Retail 3.8p stronger at 573.8p.
Premier Inn owner Whitbread led the risers board with a gain of 46p to 3317p as UBS raised its price target to 4200p following last week’s trading update.
The FTSE 250 index slid 0.8% or 137.66 points to 17,924.67, with tech investor Molten Ventures the biggest faller with a decline of 14.8p to 225.4p. Ukraine-based iron ore pellet firm Ferrexpo topped the risers board, recovering 6.8p to 91.5p.
City comment: Andrew Bailey is out of tune with reality on wages
Monday 26 June 2023 10:28 , Simon English
We don’t know if Andrew Bailey is a Glastonbury fan. We do know he keeps singing the same old tune.
With inflation seemingly out of control, or at least out of his, the Bank of England Governor persists with the line that wage growth is too high — we all must show restraint. It’s hard to see why the thinks this is worth saying out loud, his own £500,000 pay aside.
Present pay deals, which sit well below the 8.7% inflation level, are “unsustainable” the Governor says.
Today’s market snapshot as shares fall further
Monday 26 June 2023 10:06 , Daniel O'Boyle
Take a look at the latest key market data as the FTSE 100 continued to fall after last week’s sell-off.
Minister refuses to commit to accepting wage recommendations by pay bodies
Monday 26 June 2023 09:47 , Daniel O'Boyle
A health minister has said the UK Government would need to “look at what we can afford” as she refused to commit to accepting salary bumps recommended by pay bodies.
Social care minister Helen Whately said only that Rishi Sunak’s administration would “consider” the recommendations put forward by independent public sector pay panels.
“We are in the middle of considering some of the pay review bodies who have already reported back to us,” she told BBC Radio 4’s Today programme.
Mortgage prices up again after Friday’s relief
Monday 26 June 2023 08:50 , Daniel O'Boyle
The average fixed mortgage rate rose again after pressure eased on Friday, while a number of lenders continue to keep products off the market.
The average two-year rate rose from 6.19% to 6.23% while the average five-year rate was up from 5.86% to 5.83%. Rates had been steady on Friday in the immediate aftermath of the Bank of England’s half-point rate hike.
Buy-to-let mortgage rates were stable today.
The number of products on the market ticked up to 4,483, but was still down by around 500 from a little over a month ago, before April’s inflation reading led to chaos in the gilt markets.
Today, two-year gilt yields briefly hit yet another 15-year high of 5.17% and remain close to those levels as the City sees Bank of England interest rates peaking at 6.25%.
Oil prices ease, FTSE 100 sell-off continues
Monday 26 June 2023 08:46 , Graeme Evans
Oil prices have fallen back, having initially risen on the potential for political instability in Russia to disrupt supplies in one of the world’s largest oil producing countries.
Brent Crude is slightly lower at $73.74 a barrel, down from an earlier peak of $74.63. Meanwhile, supply concerns have caused European natural gas futures to jump 10%.
The developments come with traders still focused on the uncertain global outlook, with the sell-off for London shares accelerating to leave the FTSE 100 index down 41.06 points to 7,420.81.
Lloyds among FTSE 100 fallers, Aston Martin shares jump 12%
Monday 26 June 2023 08:31 , Graeme Evans
Banking stocks are among those under pressure today, leaving the FTSE 100 index 0.2% or 16.26 points lower at 7445.61.
Lloyds Banking Group fell 0.4p to 41.9p as analysts at JP Morgan cut their price target from 56p to 42p. Barclays and NatWest shares also dropped by just under 1% as worries mount over the demand impact of higher mortgage rates.
Other fallers included Vodafone, which dropped 0.3p to 72.4p after it was reported that the mobile phone giant’s Three merger is facing parliamentary scrutiny.
Premier Inn owner Whitbread led the risers board with a gain of 51p to 3322p, reflecting the improvement in sentiment following last week’s trading update.
The FTSE 250 index stood 62.79 points lower at 17,999.54, despite shares in Aston Martin Lagonda jumping 12% or 37.8p to 365p on the back of a new supplier deal for electric vehicle components.
Cineworld set to enter UK administration
Monday 26 June 2023 08:23 , Daniel O'Boyle
Cineworld’s shares are to be suspended as its holding company enters administration as part of its plan to emerge from Chapter 11 bankruptcy.
The chain says that operations and jobs will not be affected, and the move will merely allow it to transfer ownership to its new holding company, which is controlled by its creditors.
The cinema chain entered bankruptcy protection last year and announced a restructuring deal that would see shareholders get wiped out in April, but investors hope to block it at a court hearing this week
It still expects to emerge from bankruptcy protection in July.
Inflation leaves bad taste at Cake Box
Monday 26 June 2023 07:56 , Daniel O'Boyle
London-listed egg-free baker Cake Box set out plans to double its number of shops to 400, despite profit falling amid a “unique set of macro-economic pressures” last year.
For the year to 31 March, sales rose slightly to £34.8 million, but amid high inflation - especially for food items - pre-tax profit fell by 28.6% to £5.4 million. Despite the decline, the business still upped its dividend to 5.5p per share.
CEO Sukh Chamdal noted that the group was approaching the target it had set of 250 shops. As a result, it set a new target of 400.
“We have continued with our steady store opening program to add to the 205 Cake Box shops we had at year end. As we approach the 250 target number of stores we set ourselves at our IPO almost 5 years ago to the day, we continue to look to stretch ourselves with a new target of 400 and new ways to provide the UK consumer with our unique egg-free fresh cream cakes.”
Aston Martin to switch supplier for key EV components
Monday 26 June 2023 07:33 , Daniel O'Boyle
Aston Martin Lagonda will switch the supplier of key electric vehicle components from Mercedes to Lucid Motors, ending a deal that would have allowed the German colossus to up its stake in the iconic James Bond brand to 20%.
Lucid Motors will make powertrain components for Aston Martin’s electric vehicles, in a £182 million shares-and-cash deal. That includes £79 million worth of shares.
The FTSE 250 carmaker, which has seen its shares soar this year, previously had a similar deal with Mercedes. It said it has “amended” this deal. Instead of supplying new technology in exchange for the option to buy shares, Mercedes may now “discuss future access to technology for cash”.
Lawrence Stroll, executive chairman of Aston Martin, said: "The proposed supply agreement with Lucid is a game changer for the future EV-led growth of Aston Martin. Based on our strategy and requirements, we selected Lucid, gaining access to the industry’s highest performance and most innovative technologies for our future BEV products.
FTSE 100 seen flat, oil price higher
Monday 26 June 2023 07:29 , Graeme Evans
Cautious trading for European markets is set to continue as investors worry about how rising interest rates will impact the global outlook.
Last week’s performance was the worst since March as it became apparent that central banks have further to go in their fight against inflation.
US markets were also lower last week, with the tech-focused Nasdaq Composite in the red for the first time in two months and the S&P 500 index down 1.7%.
CMC Markets expects the FTSE 100 index to open broadly flat at 7468, while US futures markets are pointing slightly higher.
The Brent Crude price fell 3.6% last week but is back up 0.6% to $74.32 today as traders react to events in Russia and the potential for political instability to disrupt supplies in one of the world’s largest oil producing countries.
Friday’s top stories
Monday 26 June 2023 06:59 , Daniel O'Boyle
Good morning, here are a selection of Friday’s top stories:
Jeremy Hunt, the Chancellor, announced a number of new agreements with lenders to provide support for mortgage holders in the face of rising interest rates
A swathe of senior executives have quit London cross-border payments firm WorldFirst, which was acquired by Jack Ma’s Ant Group in 2019
Figures from the ONS revealed that retail sales unexpectedly rose in April, thanks to good weather and the month’s three bank holidays
Today, we have results from:
AB Foods
Fresnillo
