FTSE 100 Live July 13: UK GDP down 0.1% as GBP surges to $1.30, Barratt shares slide

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1689240324BP rises as FTSE 100 continues gains, Trustpilot rises 19%

Shares of Trustpilot jumped 19% today after the consumer reviews platform raised its earnings guidance. However, a rise of 12.8p to 80.9p is still a long way from the initial 2021 price of 265p when the Copenhagen-based company was valued at more than £1bn.

Concerns about investment costs and a weaker economic outlook recently sent shares to a record low, although the mood turned downbeat today as a trading update revealed a 15% rise in first-half revenue.

The UK, which accounts for around 40% of the business, had bookings growth of 15% as Trustpilot expects underlying profits to be higher than City estimates.

Meanwhile, the FTSE 100 consolidated yesterday’s rise by 1.8% adding another 15.68 points to 7431.79 in a performance led by strong commodity stocks.

The list of rises included British Petroleum, whose shares improved by 5.9 pence to reach 472.65 pence after Brent crude futures exceeded $80 a barrel on the back of dollar weakness and expectations of more stimulus measures to support the Chinese economic recovery.

Asia-focused stocks also benefited, with Asia-focused stocks rising 13p to 1,072.5p, and luxury goods group Burberry up 22p to 2,112p.

The FTSE 250 rose 16.08 points, to 18,595.62, with Domino’s Pizza rising 5%, or 14p, to 306.6p as investors welcomed Andrew Rennie’s appointment as chief executive.

Rennie is described by Matt Shattuck, chairman of the UK company, as an “energetic and entrepreneurial leader”, having spent more than two decades with Sydney-listed Domino’s Pizza Enterprises in roles that included managing operations in Europe and Australia.

He added, “Andrew understands the strength and potential of the Domino’s brand as well as anyone in the business globally.”

Other second-tier gains included Diploma of Commercial Seals and Controls, which rose 5%, or 136p, to 3,100p as investors welcomed another strategic acquisition in Europe along with numbers showing revenue growth of 9%.

Rising demand for luxury goods leads to record sales and profits for Swiss watches

The watch retailer in Switzerland said demand for luxury watches “continues to outpace supply,” as years-old waiting lists for the most sought-after watches are getting longer, despite higher prices.

Higher prices, combined with a continued rise in sales volumes, helped the business report revenue of £1.5 billion and profit of £155 million for the year.

Rolex

CEO Brian Duffy told the Standard that watchmakers have avoided price hikes too high, citing lengthening waiting lists for “trophy” watches like the Rolex Submariner.

“The brands were very responsible,” he said.

But the retailer is also behind schedule when it opens a new Rolex boutique on Old Bond Street. Designing the store, which Rolex and Watches of Switzerland are working on together, “took a little longer than we had hoped,” Duffy said.

1689238213 Music Magpie sales segment

Sales at Music Magpie slumped as the pre-owned consumer technology company said it was grappling with the fallout from postal strikes and lower consumer confidence.

Revenue fell 13% to £61.9m in the six months to the end of May, driven by a 17% drop in disc and book media sales to £20.9m.

But overall profits from sales of consumer technology rose 13.5% to £10.9m, and there were signs of green shoots in the device leasing business, which saw subscriptions rise from 24,000 to 39,000.

Britons suffering from income pressure were using Music Magpie more than ever as a way to raise money from their used devices, chief executive Steve Oliver said, but the company was prioritizing a shift away from using platforms such as Amazon and eBay in favor of its own website in a bid to protect margins. .

“It’s about looking at those lower margin transactions and saying, let’s protect this stock, let’s protect it, let’s make sure we’re maximizing margin and that this is dividend paid in terms of gross earnings,” he said.

Music Magpie fell 12.8% to 16.3p. The stock is down 62% over the past 12 months.

Market data with FTSE Flat

The FTSE 100 is flat while gold bond yields are slightly lower, as City processes the latest GDp data this morning.

1689235380 The gym group flexes its muscles as the number of members rises

The gym group showed tentative signs of a post-Covid recovery in memberships as Britons flocked in their tens of thousands to join the low-cost gym operator.

The Croydon-based company reported an 18.5% increase in sales to £100m in the first six months of the year, while membership figures rose by more than 75,000 to 867,000, in signs that fitness enthusiasts suffering from Low incomes fall back on luxury health. Clubs to their cheap, no-frills £18-a-month sites. Membership reached 891,000 before covid hit 2020, after which it has declined.

Chairman John Treharn said, “We have continued to grow our membership and revenue, while controlling our costs and generating cash…and delivering a high-quality health and fitness offering that is affordable to the communities in which we operate.”

Shares rose 5.4% to 95p.

The Gym Group1689235270 Mortgage rates continue to rise

2-year fixed mortgage rates are at 6.75% today as interest rates continue to rise.

The two-year average interest rate rose from 6.70% yesterday. Five-year interest rates have increased significantly, from 6.20% to 6.27%.

The average two-year mortgage approached close to 7%, up slightly to 6.97%.

The number of products on the market decreased again to 4,335.

1689233222 Homebuilders Struggle But FTSE 100 Index Holds

The FTSE 100 consolidated the 1.8% rally seen yesterday, although homebuilder stocks weakened in the wake of today’s update by Barratt Developments.

Barratt shares were down 4%, or 18.7 points, to 399.3p, while Persimmon was down 19p at 1,032p and Taylor Wimpey was down 3.1p at 101.7p.

The high was up 1.31 points at 7417.42, with Prudential the best performer after gaining 1.5%, or 15.5p, to 1075p.

In the FTSE 250 Index, which was broadly unchanged at 18580.33, shares in Watches of Switzerland rose 6% and Diploma rose 4% after their trading updates.

The easing of unchanged guidance in Dr. Martens’ AGM trading update sent shares of the shoemaker up 4.5p to 131p.

1689233144 High prices hit the construction sector

Today’s GDP figures showed the impact of higher interest rates on the construction sector, which fell by 0.2%, although part of the impact may be explained by the bank holiday.

Clive Docwra, managing director of property and construction consultancy McBains, said: “After the construction industry experienced a decline in production in the past two months, today’s stats confirm that many business sectors are struggling to attract new orders.

“Private housing construction in particular remains stagnant and low activity is having a significant impact on public confidence in the construction sector, especially in the capital.

“The decline in production in May should remain in perspective, as growth is estimated to be picking up over the medium term, but given that this is the weakest growth since August last year, the industry is still a fair way to recover.”

Brent crude is back above $80 a barrel

Brent crude futures are trading above $80 a barrel today, the first time the contract has crossed that level since early May and up from $71.50 in late June.

The momentum reflects hopes that reversing inflationary trends in the US economy will enable the Federal Reserve to pause interest rate hikes.

The demand outlook was also boosted by expectations that China will unveil stimulus measures to support the country’s faltering economic recovery.

Dollar weakness also helped Brent crude recover, while supply-side traders noted lower levels of Russian production.

1689231501 Sterling breached $1.30 on US interest rate expectations

Contrasting interest rate expectations in the United Kingdom and the United States pushed the pound sterling above $1.30 today for the first time since April 2022.

Expectations that the Federal Reserve will pause interest rate hikes after this month’s meeting were driven yesterday by better-than-expected inflation figures.

The developments sent the dollar index down 1.2% to its lowest level in 14 months during its worst session in eight months.

On expectations that the Bank of England will raise interest rates by as much as another 0.5% next month, the pound has crossed the $1.30 threshold and is up around 7% this year.

The euro also strengthened, reaching its highest level against the dollar since March 2022 at more than $1.11.

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