London open: FTSE nudges up but trade likely to be subdued

(Sharecast News) - London stocks nudged higher early on Monday, with trade expected to be fairly quiet as US markets are closed for Presidents' Day and with little in the way of corporate news to provide direction. At 0825 GMT, the FTSE 100 was up just 0.1% at 8,010.45.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "There's a quiet pulse of positivity on the markets with investors still cautious about the direction of interest rates in the United States, but hopeful that recovery elsewhere will lend a hand to trade.

"Volumes are set to be more muted during the sessions in Europe given that Wall Street is closed for the Presidents' Day holiday, so traders are likely to be searching around for a bit of a sense of direction today, looking ahead to fresh data out this week.

"The minutes of the Federal Open Market Committee due out on Wednesday will be closely watched for fresh indications about just how strong those disinflationary winds are blowing. Worries are still hanging around that US inflation will still take significant time to be whipped into a shape which will mean higher rates will have to linger for longer, sentiment which has been supporting the dollar."

On home shores, investors were digesting the latest survey from property website Rightmove, which showed that house prices were flat in February.

Prices were steady on the month at £362,452 - up by just £14 - having risen 0.9% in January. It marked the smallest ever increase from January to February and Rightmove said it could be a sign that more sellers "are heeding their agents' advice to price right first time".

On the year, house prices grew 3.9% in February following a 6.3% jump the month before.

Rightmove said the number of sales being agreed suggests a "softer landing" for the market than many expected.

Tim Bannister Rightmove's director of property science, said: "The big question this month was whether we would see new sellers increasing their asking prices as has been the yearly norm as we approach the spring selling season. This month's flat average asking price indicates that many sellers are breaking with tradition and showing unseasonal initial pricing restraint.

"In addition to market conditions demanding greater realism on price, we are transitioning into a slower paced market, where buyers will take longer to find the right property at the right price due to the higher cost of servicing a mortgage. There are other indicators that this will be a softer rather than a hard transition despite the turbulence at the end of 2022.

"Homeowners who are coming to market in the upcoming spring season should use their agent's expertise and get the price right the first time, which can really help to find the right buyer more quickly."

In equity markets, retailer Frasers Group rallied after saying it was starting an £80m share buyback.

Frasers, controlled by Mike Ashley and owner of Sports Direct, said the repurchase would be used to reduce the company's share capital, adding that it would run until April 30.

Cyber security firm Darktrace also gained after saying it has appointed Ernst & Young to provide an additional independent third-party review of its key financial processes and controls following recent short-seller attacks.

Market Movers

FTSE 100 (UKX) 8,010.45 0.08% FTSE 250 (MCX) 20,114.03 0.12% techMARK (TASX) 4,660.45 0.19%

FTSE 100 - Risers

Frasers Group (FRAS) 794.00p 3.18% Fresnillo (FRES) 814.60p 1.42% Persimmon (PSN) 1,453.00p 1.18% Beazley (BEZ) 690.00p 0.95% M&G (MNG) 203.30p 0.94% Taylor Wimpey (TW.) 121.25p 0.87% Anglo American (AAL) 3,235.00p 0.79% Lloyds Banking Group (LLOY) 51.30p 0.77% Barclays (BARC) 174.78p 0.74% Scottish Mortgage Inv Trust (SMT) 742.80p 0.73%

FTSE 100 - Fallers

Smith (DS) (SMDS) 343.30p -2.86% Reckitt Benckiser Group (RKT) 5,714.00p -1.07% Entain (ENT) 1,385.00p -0.89% SEGRO (SGRO) 859.80p -0.74% Flutter Entertainment (CDI) (FLTR) 13,645.00p -0.73% NATWEST GROUP (NWG) 282.60p -0.70% Burberry Group (BRBY) 2,541.00p -0.63% Relx plc (REL) 2,477.00p -0.60% Halma (HLMA) 2,227.00p -0.54% Pearson (PSON) 913.00p -0.46%

FTSE 250 - Risers

Helios Towers (HTWS) 110.00p 2.80% Great Portland Estates (GPE) 578.50p 2.57% Rotork (ROR) 340.40p 2.47% Moneysupermarket.com Group (MONY) 236.80p 2.25% Diploma (DPLM) 2,928.00p 2.23% Senior (SNR) 154.20p 2.12% Synthomer (SYNT) 155.60p 2.10% Mercantile Investment Trust (The) (MRC) 219.00p 1.86% BlackRock Smaller Companies Trust (BRSC) 1,408.00p 1.59% Pacific Horizon Inv Trust (PHI) 659.00p 1.54%

FTSE 250 - Fallers

Watches of Switzerland Group (WOSG) 831.00p -5.25% Indivior (INDV) 1,638.00p -2.79% Currys (CURY) 72.10p -2.76% European Opportunities Trust (EOT) 760.00p -2.19% Ibstock (IBST) 160.00p -1.84% Liontrust Asset Management (LIO) 1,194.00p -1.65% Capricorn Energy (CNE) 245.60p -1.52% Spectris (SXS) 3,198.00p -1.17% Carnival (CCL) 838.60p -1.13% 888 Holdings (DI) (888) 70.05p -0.92%