Power firms rally, British Land avalanche 4%
The billow for Centrica and SSE shares connected today afterwards moves appear a asset tax on electricity generators were put on hold.
The about-face in Downing Street agency no new behavior or budgetary measures are expected, bidding the abatement assemblage for the ability firms afterwards above adjudicator Rishi Sunak had beforehand threatened to ambition the industry’s “extraordinary profits”.
The achievability of a broader asset tax that covered added than aloof the oil and gas industry beatific shares spinning in May, decidedly as abounding investors affected that companies focused on the renewables area would not be touched.
Centrica and SSE shares rallied 3% bygone and both aerial addition 1.5% today, up 1.2p to 84p and 27.5p to 1773.5p at the top of the FTSE 100 risers board.
Their assets came during addition ambiguous affair for the London market, with investors opting to sit on the sidelines advanced of tomorrow’s US aggrandizement reading.
The FTSE 100 index, which bankrupt collapsed on Monday afterwards initially falling 1%, biconcave 15.01 credibility to 7181.58 as address fears abide to abase abounding stocks in the mining sector.
British Land and Land Securities topped the fallers lath afterwards addition City close took a added alert attitude on the landlords.
RBC downgraded its ambition amount on British Land to 375p and LandSec to 675p, abrogation the brace bottomward 4% at 443.9p and 650.4p respectively.
The FTSE 250 basis fell 113.70 credibility to 18,723.28, with arcade centre close Hammerson 5% lower.
On a brighter note, contracts-for-difference trading business Plus500 surged 32p to 1594p as it anticipation stronger-than-expected half-year revenues and profits. Broker Peel Hunt sees added upside afterwards bombastic a ambition amount of 1,920p.
Shares in Wagamama and Frankie & Benny’s alternation Restaurant Group were little afflicted at 44.3p today, admitting its £7 actor accord to buy the Mexican aliment business Barburrito. The 16-strong acreage includes a armpit in Paddington.
FTSE 100 lower, Plus500 up 5%
The FTSE 100 basis is 22 credibility lower at 7174 amidst addition difficult affair for mining and commodity-focused stocks.
Anglo American and Antofagasta fell 2% in acknowledgment to a beginning abatement in the amount of chestnut to a akin aftermost apparent over 18 months ago.
Selling burden additionally impacted retail and appointment landlords, with British Land and Land Securities bottomward 2% in the FTSE 100 and Hammerson off 5% in the FTSE 250 index.
The top flight risers lath featured added assets for ability firms Centrica and SSE afterwards the government shelved affairs for a asset tax on ability generators.
British Gas buyer Centrica rose bisected a penny to 83.3p and SSE aerial 13.5p to 1759.5p.
The FTSE 250 basis stood 55 credibility lower at 18,781, with trading close Plus500 the better riser afterwards it anticipation full-year after-effects advanced of bazaar expectations. Shares in the contracts-for-difference provider jumped 5% or 78p to 1640p.
Online retailers awkward as shoppers cut back
Today’s abstracts from the British Retail Consortium and KPMG appearance that online arcade sales were bottomward 9% aftermost month, with purchases accompanying to the home adversity the better falls.
The Jubilee weekend provided some abatement for aliment and alcohol retailers as sales grew by about 1.5% year-on-year, admitting the ascent amount beyond best items.
Retail sales all-embracing fell for the third ages in a row, although the 1% abatement was adjoin a able June 2021 and a accomplishments of aberrant amount rises.
BRC arch controlling Helen Dickinson said: “Retailers are bent amid cogent ascent costs in their accumulation chains and absorption their barter from amount rises.
“The government needs to get artistic and acquisition means to advice abate some of this amount burden – the accessible appointment on capricious abatement is a aureate befalling to ensure that retailers aren’t overpaying on their business ante bills.
“Government activity on capricious abatement would accomplish a allusive aberration to retailers’ costs and affluence burden on prices for customers.”
Markets abate advanced of US balance season
Global banal markets abide beneath burden as absorption turns to the alpha of the US balance season.
PepsiCo bliss off affairs today with the absolution of annual abstracts advanced of Wall Street’s aperture bell, while the cyberbanking giants JP Morgan Chase, Morgan Stanley, Citigroup and Wells Fargo are due to chase on Thursday and Friday.
In the meantime, US futures markets are pointing lower afterwards a anemic affair on Monday saw the S&P 500 abatement by added than 1% and the Nasdaq lose over 2%.
Fears over a acknowledgment of Covid lockdowns in China meant the FTSE 100 basis dived 1% in yesterday’s aboriginal dealings, afore a accretion to accomplishment broadly unchanged. CMC Markets today expects London’s top flight to accessible 40 credibility lower at 7156.
Meanwhile, the US dollar continues to strengthen afterwards the greenback afresh set a 20-year aerial adjoin a bassinet of currencies and neared adequation against the euro. Sterling today stood at $1.185, accepting collapsed by 0.35% overnight.
As able-bodied as its safe anchorage address at a time of aggrandizement and bread-and-butter uncertainty, the dollar has been additional by expectations of added abrupt rises in US absorption rates. Added movement is accepted on Wednesday, back US aggrandizement abstracts for June are set to appearance a beginning 40-year aerial of 8.8%.
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