China-focused stocks and the advertising business WPP today provided support to the FTSE 100 index.
Miners rose after China’s leadership signalled they may ease their monetary policy stance in 2025.
WPP rallied on the read-across to reports of a merger deal involving Omnicom and Interpublic.
FTSE 100 Live Monday
- China inflation below forecast
- Domino's Pizza flags Budget impact
- Inspecs warning hits shares
Market update: Miners rally on China stimulus hopes, Domino's Pizza lower
10:27 , Graeme EvansChina-focused stocks and the advertising business WPP today provided support during an otherwise quiet session for London’s FTSE 100 index.
Mining stocks rose by as much as 3% after China’s leadership signalled a “moderately loose” strategy for monetary policy in 2025.
The potential shift in stance for the People’s Bank of China offset November’s inflation reading, which showed the weakest annual rate since June at 0.2%.
Hopes for improved demand in the world’s second largest economy lifted prices of key commodities such as copper and iron ore, while Hong Kong’s Hang Seng index recovered from a weak start to close 2.8% higher.
At the top of the FTSE 100 index, copper miner Antofagasta jumped by 57p to 1787.5p, Rio Tinto by 162p to 5086p and Anglo American by 69p to 2533.5p.
Asia-focused Prudential added 2% or 12p to 674.2p and banking group Standard Chartered lifted 18.2p to trade at a fresh decade high of 991.8p.
The shares of WPP were 2% or 18.8p higher at 886.4p as investors reacted to reports of deal activity in the advertising and marketing industry.
According to the WSJ, ad giant Omnicom is in advanced talks to acquire fellow New York-based company Interpublic in a swoop worth more than $13 billion.
Other stronger stocks in the top flight included BP and Shell, up 5.65p to 383.4p and 23.5p to 2501.5p, after Brent Crude rose 1% to just below $72 a barrel.
The FTSE 100 index strengthened 26.13 points to 8334.74, with BAE Systems the biggest faller after a decline of 2% or 24p to 1205.5p.
Premier Inn business Whitbread eased 56p to 2932p after UBS lowered forecasts following the Budget, causing its target price to fall from 4400p to 4200p.
Vodafone shares dipped 0.8p to 71.3p as Goldman Sachs removed its Buy recommendation and lowered its target price from 100p to 83p.
The FTSE 250 index, which fell 7.78 points to 21,051.22, included a fresh surge of 3% or 30.6p to 960.4p for Burberry and 3% or 1.65p to 64.95p for automotive industry supplier Dowlais.
Fidelity China Special Situations, whose major holdings include Tencent Holdings, Ping An and Alibaba, rose 5% or 10.5p to 226p on the day of half-year results.
Domino’s Pizza fell 3% or 11.4p to 340.6p after it said the Budget had “significantly increased the cost of labour” for the company and its franchise partners.
The share price decline came despite the unveiling of a new five-year profit and sales target agreement with its franchisees, with the group targeting further store expansion and investments.
AIM-listed Inspecs slides, Synectics and Angling Direct rally
09:40 , Graeme EvansThe AIM-listed shares of eyewear designer and manufacturer Inspecs have fallen 14% after the Bath-based company scaled back full-year guidance.
Inspecs said the recovery of its European markets had been slower than expected, while some major orders have been deferred into 2025.
It now expects revenues for the year of about £197 million and underlying earnings in the range of £17.4 million to £17.9 million.
On the AIM risers board, Synectics jumped 8% or 26p to 335p after the specialist in security and surveillance systems said annual profits will be materially ahead of market forecasts.
And Angling Direct lifted 4% or 1.5p to 37.5p after the fishing tackle and equipment retailer revealed plans for a share buyback programme worth up to £4 million.
Inspecs warning hits AIM-listed shares, Angling Direct and Synectics rally
09:38 , Graeme EvansThe AIM-listed shares of eyewear designer and manufacturer Inspecs have fallen 14% after the Bath-based company scaled back full-year guidance.
Inspecs said the recovery of its European markets had been slower than expected, while some major orders have been deferred into 2025.
It now expects revenues for the year of about £197 million and underlying earnings in the range of £17.4 million to £17.9 million.
On the AIM risers board, Synectics jumped 8% or 26p to 335p after the specialist in security and surveillance systems said annual profits will be materially ahead of market forecasts.
And Angling DIrect lifted 4% or 1.5p to 37.5p after the fishing tackle and equipment retailer revealed plans for a share buyback programme worth up to £4 million.
Deal talk boosts WPP, miners rally on China stimulus hopes
08:59 , Graeme EvansWPP shares today rose more than 3% in the FTSE 100 index as investors eyed the possibility of consolidation in the media and advertising industry.
According to the Wall Street Journal, Omnicom is in advanced talks to acquire fellow New York-based Interpublic in a swoop worth more than $13 billion.
Mining stocks including Glencore and Antofagasta also rose by 3% after China’s Politburo pledged a “moderately loose” strategy for monetary policy in 2025.
Today’s lacklustre inflation reading also boosted the chances of fresh economic stimulus in the months ahead.
Asia-focused Prudential and Standard Chartered lifted 2% and 1% respectively.
Domino's Pizza flags Budget impact, unveils growth plan
08:37 , Graeme EvansDomino’s Pizza today said Budget changes to employers’ national insurance contributions and the national minimum wage had “significantly increased the cost of labour” for the company and its franchise partners.
It said: “Although we have identified specific mitigation plans, we now believe that the annual impact for Domino’s Pizza Group will be circa £3 million per annum from 2024-25 onwards.”
The update came as the firm unveiled a new five-year profit and sales target agreement with its franchisees, with the group targeting further store expansion and investments.
The group said the agreement had “unanimous support” from its partners and underpinned targets to grow to 1600 stores delivering £2 billion of systems sales by 2028, and 2000 stores delivering £2.5 billion of system sales by 2033.
It currently has more than 1350 stores in the UK and Ireland.
The company said that trading in the run-up to Christmas has been in line with expectations, with total orders up 5.3% and like-for-like sales 2.7% higher in the past nine weeks.
The FTSE 250-listed shares of Domino’s Pizza are 1.4p lower at 350.6p.
Miners and WPP lead stronger FTSE 100, Vodafone lower
08:22 , Graeme EvansThe FTSE 100 index has risen 25.50 points to 8334.11 during a quiet start to the week.
Mining stocks offered support to the top flight after Anglo American rose 2% or 53p to 2517.5p and Glencore lifted 9.2p to 387.2p.
The best performing company is WPP after the advertising and marketing group rose 3.5% or 30.4p to 898p.
Vodafone shares have fallen 0.7p to 71.4p after Goldman Sachs removed its Buy recommendation and lowered its target price from 100p to 83p.
In the FTSE 250 index, the shares of Domino’s Pizza are 1.4p lower at 350.6p after it announced a new five-year framework with franchise partners.
The company added that recent trading has been in line with expectations, with total orders up 5.3% and like-for-like sales 2.7% higher in the past nine weeks.
It added that the UK budget has significantly increased the cost of labour for both the company and franchise partners, who are particularly impacted.
GDP figures and Currys results among week ahead highlights
07:40 , Graeme EvansCurrys and Moonpig are among the companies reporting this week, with October’s GDP reading the main interest on the UK economic front.
FTSE 250-listed Currys posts interim results on Thursday, having seen its shares rally by more than 60% In the year-to-date.
The shares of greetings card firm Moonpig have also enjoyed a strong 2024, rising by 75% heading in to tomorrow’s half-year figures.
Other highlights include an update by British American Tobacco on Wednesday and interim results by banknote printer De La Rue on Thursday.
The UK economy is forecast to show growth of 0.2% in Friday’s October GDP reading, while the European Central Bank is seen cutting interest rates by another 0.25% on Thursday.
China inflation rate below forecast
07:11 , Graeme EvansChina’s annual rate of inflation for November today came in below forecasts at 0.2%, down from 0.3% in the previous month.
The performance, which compared with estimates of 0.5%, followed the slowest rise in food prices in four months.
The lacklustre reading, which comes despite recent efforts to stimulate China’s economy, contributed to a downbeat session for Asia markets.
The Shanghai Composite stood near to its opening mark, while the Hang Seng index has fallen by about 0.3%.
The continued political upheaval in South Korea meant the country’s Kospi index closed 2.8% lower.
FTSE 100 seen higher, Dow Jones lower after job market report
06:59 , Graeme EvansThe FTSE 100 index is set to start today’s session about 11 points higher at 8320, having fallen by 0.5% on Friday.
Wall Street markets posted a mixed performance at the end of last week, despite figures showing non payrolls growth of 227,000 in November.
The Dow Jones Industrial Average finished a downbeat week in negative territory, whereas the S&P 500 index rose 0.3% and the Nasdaq by 0.8%.
