- FTSE 100 up 29 points at 7,476
- Equities buoyant on hopes interest rates have peaked
- Currys jumps after selling Greek and Cypriot unit
9:10am: Poor weather keeps shoppers away from the High Street
The decline in UK retail footfall worsened In October, according to latest figures, as poor weather kept shoppers away from the high street.
According to the latest British Retail Consortium-Sensormatic IQ tracker, UK retail footfall declined 5.7% on-year in October, worse than September's 2.9% fall.
Helen Dickinson chief executive at the BRC said: “Umbrellas were up as heavy rainfall descended across the UK in October, leading many shoppers to stay at home.”
High Street footfall slipped by 4.6% in October, after a 1.1% fall in September while in retail parks, footfall decreased by 4.3% in October, worsening from September's 2.4% decline.
Footfall in shopping centres dipped 7.3%, compared to September's 4.0% fall.
Andy Sumpter retail consultant at Sensormatic Solutions commented that shopper traffic was regionally impacted by Storm Babet which delivered the most severe and widespread disruptive weather of the year to date.
“The ongoing cost-of-living pressure continues, despite inflationary easing, to impact shopper behaviour through October,” he added.
He noted consumers appear to be visiting fewer stores during each trip, suggesting a shift away from shopping around for the best deals toward more focused purchasing.
8:43am: FTSE 100 rallies on hopes hiking cycle is over
The FTSE 100 continues to extend its recent rally, now up 29 points at 7,475.62.
Richard Hunter, head of markets at interactive investor, commented “After a dismal October for markets, November has opened with a different narrative and a very different performance."
He explained while the Federal Reserve's move to hold rates was no surprise, the accompanying comments from Chair Powell "lit the fire under stocks, with a noticeable fall in Treasury yields providing further fuel."
While leaving the door slightly ajar to further rate rises should inflation unexpectedly tick higher once more, sentiment has switched to the belief that the hiking cycle is now over, he said.
Banks are prominent risers with NatWest up 2.3% and Barclays up 1.8%, while Smith & Nephew is up 3.1% after its results on Thursday.
BP has ticked 1.3% higher as analysts at Barclays play down market concerns the oil major may struggle to maintain its $1.5 billion buyback in the fourth quarter while industry peer, Shell, is down 1.2%.
8:15am: FTSE 100 extends gains, Currys jumps
The FTSE 100 made a bright start to the day as investors continue to bet interest rates have peaked after the Bank of England’s decision to leave interest rates unchanged on Thursday.
At 8:15am, London’s blue-chip index was up 23.27 points, 0.3%, at 7,469.80 while the FTSE 250 was up 106.54 points, 0.6%, at 17,873.84.
Goldman Sachs (NYSE:GS) James Moberly expects interest rates to remain on hold at 5.25% at the upcoming meetings and expects a first cut in the third quarter of 2024.
“Faced with low growth and high inflation, the uncertainty around the policy outlook, however, remains significant,” he cautioned.
On a quiet morning for company news, Currys jumped 5.8% after confirming the sale of its its Greece and Cyprus retail business, Kotsovolos, to Public Power Corp for an enterprise value of €200 million (£175 million).
Net cash proceeds of the disposal are expected to be around £156 million.
Analysts at Liberum described it as “excellent outcome.”
“It bolsters the balance sheet further and should help to deliver a c.£50 million year-end net cash position,” the broker said.
Wickes was little moved by its trading update, confirming guidance, as a slight dip in fourth quarter sales.
7:38am: Currys confirms sale of Greek outfit, Kotsovolos
Currys PLC (LSE:CURY) has confirmed the sale of its Greece and Cyprus retail business, Kotsovolos, to Public Power Corp for an enterprise value of €200 million (£175 million).
The electricals retailer said the deal would simplify its enabling it to focus on its larger markets of the UK & Ireland and Nordics, while strengthening the balance sheet.
Net cash proceeds of the disposal are expected to be around £156 million.
Currys said in the short term, the proceeds will help reduce net debt but it also intends to speak with pension trustees regarding the potential to reduce the pension fund's accounting net deficit.
In October, the firm said it was mulling offers for its Greek business from "several" potential buyers but was not certain whether a sale will go ahead.
The sale is expected to complete in the first quarter of 2024 .
7:27am: Wickes backs guidance, IT issues disrupt sales
It's a quiet morning for company news but we will start with a trading update fron building materials outfit, Wickes Group PLC (LSE:WIX).
The firm said it remained comfortable with full-year estimates after a flat third quarter and despite some delays in its Do It For Me (DIFM) operation.
In a trading update for the 13 weeks to September 30, the building materials supplier said sales fell 0.2% from the previous year, compared to growth of 3.0% in the second quarter.
Core like-for-like (LFL) sales grew 1.1%, with growth in volume for the first time since the second quarter of 2021.
TradePro sales continue to show double digit growth, with the customer base continuing to grow strongly, although DIY sales remain moderately down on the prior year.
Selling price inflation in the period was broadly flat, a position which Wickes expects to continue for the remainder of the year and into 2024.
DIFM LFL sales fell 4.4%, partially driven by a more normalised order book compared with the first half.
But Wickes also experienced some delays to delivered sales as a result of the transition to a new software solution fulfilling customer orders.
The firm said actions are being taken to enable this to be resolved, although there will be some impact on fourth quarter delivered sales which will now fall into the next financial year.
Wickes said it was "comfortable" with current market consensus for 2023 adjusted pre-tax profit of £45.3-49.0 million on a post-IAS38 basis.
7:00am: FTSE called higher ahead of non-farm payrolls
The FTSE 100 is expected to open higher on Friday, building on Thursday’s strong progress, after further strong gains in the US.
Spread betting companies are calling London’s lead index by around 26 points after closing up 104.10 points at 7,446.53.
Equities have been boosted by perceptions interest rates have peaked following decisions by the Bank of England and Federal Reserve to leave interest rates unchanged, which lifted shares as bond yields fell.
In New York on Thursday, the Dow Jones Industrial Average jumped 1.7%, the S&P 500 leapt 1.9% and the Nasdaq Composite surged 1.8%.
How far this rally extends could depend on US non-farm payrolls today.
A Bloomberg-compiled consensus said the US economy is expected to have added 180,000 new non-farm jobs, the unemployment rate is seen steady at around 3.8% and wages growth may have slowed from 4.2% to 4% on an annual basis.
Back in London, and after a hectic week of corporate news, the diary looks thin.
In economic news, a service sector PMI reading is due at 09:30 GMT.
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2023-11-03 07:05:00Z
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