FTSE 100 Live 20 June: Signs that inflation will fall further

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1687253144 The following stocks bear gains after the upgrade, Carry higher

Currys shares were in focus in the FTSE 250 today as traders responded to recent white commodity moves by Frasers Group.

The revelation of the 9% stake in Currys came just days after owner Sports Direct revealed a 21% stake in AO World as part of a strategic partnership.

Speculative interest in Frasers made Currys the most traded stock in the FTSE 250 at one point this morning. Shares rose 3%, or 1.45p, before settling up half a penny at 53.5p.

It remained in third place over the past year as the highly competitive conditions in the North offset the UK’s resilient performance. Shares of Frasers, whose other brands include Jack Wills, rose 3 points to 715p today, as it also revealed a 5% stake in fast-fashion store Boohoo.

Elsewhere in retail, Next shares rose 12p at 6754p after closing 5% higher overnight on the back of its weather-inspired upgrade to its sales and earnings forecasts.

The FTSE 100 rose 3.88 points at 7,592.36, with China’s move overnight to cut key lending rates to little effect. Support for the best London flight from its largest stock came after AstraZeneca added 1%, or 124p, to 11,770p.

On the downside board, grocery warehouse technology company Ocado came under more pressure after JP Morgan put the stock on a negative catalyst watch. After rebounding last week, shares fell 5%, or 21.3p, to 413.6p.

The UK-focused FTSE 250 index lost 98.97 points to 18,755.32, with technology and engineering-focused recruiter SThree down 3.5p to 363.5p despite a live trading update.

1687252888 Good news about inflation?

Susanna Streeter, head of money and markets at Hargreaves Lansdown, was bullish on inflation after the latest figures from Kantar showed price hikes at supermarkets appeared to be easing.

“There are new signs that inflation will ease further with a sharp slowdown in growth in wholesale prices generally paid by companies, although food costs remain stubbornly high. Large declines in energy costs are showing in the numbers, along with Significant declines in timber and metal prices.”

However, food producer price inflation still came in at 11.9% for the year ending in May. This suggests that there is still a long way to go before there is significant easing pressure on consumers. The Tesco boss has already warned that although there are signs that inflation has peaked, prices will remain stubbornly high.

This is supported by the latest snapshot from Kantar, which shows that although grocery price inflation has eased, it was still strong at 16.5% in the four weeks to June 11. Predictions that inflation will continue to fall will come as a signal that the fierce competition has seen And relief in the UK grocery sector further discounts passed on to shoppers, with Marks & Spencer & Morrisons joining the price-cutting party to help lure customers through the doors.”

1687251886 The destination site sells the city to tourists

The town’s bidding operation has begun today to attract more tourists to the Square Mile.

London’s business district is launching a website – thecityofldn.com – to showcase its cultural assets, from historic sites to the newest hotels and bars, and the best unique restaurants and pubs.

The City of London Corporation, which runs the Square Mile, has already put in place a program to boost the leisure economy, called Destination City, and described today’s launch as a “pivotal moment” for the policy.

The new website aims to make the city a “thriving seven-day-a-week destination,” said Chris Hayward, chairman of the company’s policy board.

Mortgage rates continue to rise

Mortgage rates jumped further today, with the average two-year fixed rate now carrying an interest rate of 6.07%.

This is up from 6.01% yesterday, and brings prices closer to those achieved last fall.

The average five-year fixed interest rate is 5.72%, up from 5.67%. Buy-to-let rates also rose quickly, with two-year deals averaging 6.4% and five-year deals averaging 6.29%.

The number of products offered has decreased further, which means that more lenders may still be preparing to re-price at higher rates.

Market snapshot with a slight rise in blue-chip stocks

Take a look at all the major market data as the FTSE 100 started slightly higher, while gold bond yields eased but remained near 15-year highs.

1687247335 “Challenging week” amid expected interest rate hike

Ipek Ozkardeskaya, chief analyst at Swissquote Bank, says the coming week will be challenging as central banks continue to raise interest rates. The Bank of England is set to raise interest rates for the 13th consecutive meeting this week, with markets seeing a serious opportunity in a 50bp rate hike instead of the widely expected 25bp hike.

“Asian stocks were choppy, European indices traded lower, and US futures were under pressure on Monday,” Ozgardskaya said. “The rest of the week is likely to be difficult both in the US and elsewhere, as central bankers continue to squeeze economies like lemons, while showing signs of pain before their very eyes.

“It’s not because equity markets are rallying because of AI speculation that the underlying fundamentals are doing well. US average mortgage rates are at their highest levels since the sub-prime crisis, while UK mortgage rates are increasing. Again about 6%. The last time we saw those levels was back during the Liz Truss mini-budget crisis.”

1687246525 Saga travel arm recovers but insurance arm still suffers

The travel and cruise arms of the “senior superbrand” are on track to return to profitability after Covid-19, but “market conditions” continue to dampen its insurance arm.

The insurance business has struggled since the introduction of new regulations from the city’s financial watchdog, the Financial Conduct Authority (FCA), to stop “rising rates”, prompting them to switch to a lower margin approach.

The company has plans to expand its operations further, launching pet insurance and “Saga Spaces”, which will be a new platform offering subscribers “social interaction and a series of online services”.

“We had strong bookings for our cruises with a load factor above the same point in the prior year, and our river cruises and travel business is on track to return to profitability in line with previous guidance,” said Euan Sutherland, CEO of Saga.

“In insurance, market conditions, particularly in motor vehicles, continue to influence our group result.”

Shares initially fell, but quickly rebounded and are now up 5.8% to 138p.

Rally for Currys As Frasers builds its share, the FTSE 100 falls

Currys shares rose 3%, or 1.75p, to 54.7p after the Frasers Group revealed last night that it had built a 9% stake in the electrical appliances retailer.

The Frasers Index, which is dominated by Sports Direct founder Mike Ashley, rose 10.5 points to 722.5 points in the FTSE 100 as the retail sector continues to benefit from yesterday’s positive trading update from Next.

Next shares are up 10p at 6752p this morning, after closing 5% higher overnight on the weather-inspired upgrade to sales and earnings forecasts.

The FTSE 100 fell 8.20 points at 7,580.28, with grocery warehouse technology company Ocado among the biggest losers after falling 10 points to 424.9p.

The FTSE 250 lost 31.34 points, to 18,822.95, with staffing firm STEM SThree down 1%, or 4 points, to 363px after updating its trading.

1687248111 Revolution Beauty is considering legal action against its former boss

Revolution Beauty is considering legal action against its former boss Adam Minto, “looking forward to a refund” from him, as it alleges that Minto’s actions contributed to the company’s falling out with reviewers and suspension of participation.

Revolution Shares has been suspended since September 2022 after it was unable to obtain auditor approval for its accounts for the previous fiscal year.

Beauty revolution

Audited accounts were eventually published last month, showing the company made £23m less than previously announced, but shares remained outstanding.

Revolution said it sent a letter of demand to Minto, who resigned in November, on May 19. That letter alleged that he “breached his fiduciary, statutory, contractual, and/or tort duties to the company.”

She added, “Some alleged matters contributed to delaying the audit of the group’s results for fiscal year 22, and to suspending the company’s shares from trading on AIM.”

Lockers Board of Directors backs £465m from Canada

Lookers’ board is backing a £465m bid for the company from Alpha Auto Group of Canada, at 120p a share.

Stock at the car dealership, which has about 150 foreclosures in the UK and first incorporated in London in the 1970s, closed at 89p on Monday.

Lookers was advised by Numis and Peel Hunt before she backed the show, describing it as “fair and reasonable”.

The company was the subject of an investigation by the Financial Reporting Board in 2019, when its shares were suspended before finally reporting a loss of £45m for the year, before the pandemic hit car sales.

It was approached by rival agent Pendragon, but resisted bidding, and there has been speculation of more bids for the Manchester-based company ever since, as a bet to strike expected deals in the industry.

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