LONDON BRIEFING: Stocks called higher; UK house prices fall annually

(Alliance News) - Stocks in London are called to open higher on Friday, following data from ...

Alliance News 1 December, 2023 | 7:41AM
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(Alliance News) - Stocks in London are called to open higher on Friday, following data from Nationwide showing that the annual pace of UK house price decline slowed in November.

According to Nationwide, the annual pace of decline in UK house prices eased somewhat in November, as house prices rose on a monthly basis.

"There has been a significant change in market expectations for the future path of bank rate in recent months which, if sustained, could provide much needed support for housing market activity," said Robert Gardner, Nationwide's chief economist.

So far on Friday morning, there have been manufacturing purchasing managers' index readings from China, Ireland and Japan. The economic calendar still has a slew of manufacturing PMI releases, including for the EU, Germany, the UK and the US.

Here is what you need to know at the London market open:




FTSE 100: called up 0.3% at 7,478.50


Hang Seng: down 1.0% at 16,869.78

Nikkei 225: closed down 0.2% at 33,431.51

S&P/ASX 200: closed down 0.2% at 7,073.20


DJIA: closed up 520.47 points, 1.5%, at 35,950.89

S&P 500: closed up 17.22 points, or 0.4%, at 4,567.80

Nasdaq Composite: closed down 32.27 points, or 0.2%, at 14,226.22


EUR: up at USD1.0911 (USD1.0909)

GBP: down at USD1.2638 (USD1.2652)

USD: up at JPY148.22 (JPY147.85)

Gold: up at USD2,040.60 per ounce (USD2,038.85)

(Brent): up at USD80.61 a barrel (USD80.56)

(changes since previous London equities close)




Friday's key economic events still to come:

08:30 EST Canada labour force survey

09:30 EST Canada manufacturing PMI

10:00 CET EU manufacturing PMI

09:50 CET France manufacturing PMI

09:55 CET Germany manufacturing PMI

09:15 CET Spain manufacturing PMI

09:30 GMT UK manufacturing PMI

09:00 EST US Fed Chicago President Austan Goolsbee speaks

09:45 EST US S&P Global manufacturing PMI

10:00 EST US ISM manufacturing PMI


The annual pace of decline in UK house prices eased somewhat in November, as house prices rose on a monthly basis, according to new data from Nationwide. On a seasonally adjusted basis, UK house prices rose by 0.2% in November from October, with growth slowing slightly from a 0.9% on-month rise in October. On an annual basis, prices were 2.0% lower in November, slowing from the 3.3% fall in October. The average house price, without seasonal adjustment, was GBP258,557 in November, down from GBP259,423 in October.


A rise in new orders pushed China's factory sector back into growth in November, survey results from S&P Global showed. The Caixin manufacturing purchasing managers' index rose to a three-month high of 50.7 points last month from 49.5 in October. The reading above 50 points indicates growth in the sector. The Caixin PMI moved in the opposite direction from the same indicator issued by the National Bureau of Statistics on Thursday. Its manufacturing PMI reading for November was 49.4 points, still in contraction territory and slightly down from 49.5 in October. "Demand continued to grow, as the gauge for new orders remained in expansionary territory for the fourth consecutive month, hitting the highest since June," said Wang Zhe, senior economist at Caixin Insight Group. "Compared with consumer goods and intermediate goods, the supply and demand of investment goods were weaker.


Manufacturing conditions in Japan continued to worsen in November, but performed better than initially indicated. The au Jibun manufacturing PMI fell to 48.3 points in November from 48.7 in October, but outperformed the flash estimate, and FXStreet-cited consensus, which were both at 48.1. Edging away from the 50 point mark separating expansion from contraction, the reading indicates an accelerated contraction in activity.


A two-month decline in factory sector activity in Ireland was arrested in November, though only just barely, amid an improvement in production requirements, according to survey results released by S&P Global. Less positively, export orders declined for the third straight month. The AIB Ireland manufacturing PMI came in at 50.0 points in November, indicating neither growth nor decline. This was up from 48.2 points in October and 49.6 in September and was the second highest reading since February.




UBS raises Antofagasta to 'buy' (neutral) - price target 1,700 (1,600) pence


UBS raises Anglo American to 'buy' (neutral) - price target 2,500 pence


Deutsche Bank cuts Pearson to 'hold' (buy) - price target 1,050 (1,100) pence




AstraZeneca has decided to discontinue the Stabilize-ckd and Dialize-Outcomes Phase III evidence trials for Lokelma, sodium zirconium cyclosilicate. The decision was made due to substantially increased enrolment timelines and low event rates, respectively, which made it prohibitive to deliver study results within a timeframe to meaningfully advance clinical practice. They are part of the Crystalize evidence programme, which researches the benefit of Lokelma in the management of hyperkalaemia across the cardiorenal spectrum.




3i Infrastructure said it has completed the sale of its 25% stake in Attero, a waste treatment and recycling companies in the Netherlands. The sale, to Ardian, was announced back in July. 3i will receive EUR215 million for the sale, which will be used to partially repay drawings on the company's revolving credit facility. Also, 3i said it has completed a further investment of GBP30 million in Future Biogas to fund the acquisition of two anaerobic digestion plants which are currently operated by Future Biogas.




James Halstead updated shareholders ahead of its annual general meeting Friday. It said that whilst its "major markets face strong competition", it is seeing improved output and profits which are materially ahead of the comparatives. "We are confident of achieving full year market expectations of improved bottom line results and exceeding the half year comparatives, as well as extending our track record of increased dividends," Chair Anthony Wild said. "I and the board remain positive about the medium-term prospects for the group as a whole."


By Sophie Rose, Alliance News senior reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
3i Infrastructure Ord 334.50 GBX -0.15 -
James Halstead PLC 195.00 GBX -1.02 -
Antofagasta PLC 1,817.00 GBX -0.03 -
Pearson PLC 1,014.00 GBX 5.56 -
AstraZeneca PLC 10,080.00 GBX 0.97
Anglo American PLC 1,760.80 GBX 3.52

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