London open: FTSE edges higher as investors mull retail sales

(Sharecast News) - London stocks edged up in early trade on Friday as investors mulled the latest retail sales and consumer confidence data and looked to the release of services and manufacturing PMIs. At 0835 BST, the FTSE 100 was up 0.2% at 7,281.73.

Figures out earlier from the Office for National Statistics showed that retail sales fell in June amid the cost-of-living crisis.

Sales dipped 0.1% on the month following a revised 0.8% fall in May and versus expectations for a 0.3% decline. Retail sales volumes were 2.2% above their pre-Covid February 2020 levels, but down over the past year.

The data showed that the Queen's Platinum Jubilee failed to give shops the boost many had expected. While food sales volumes rose by 3.1% thanks to the celebrations, non-food store sales fell 0.7% over the month. Clothing store sales were down 4.7%, while household goods sales declined 3.7%.

Meanwhile, automotive fuel sales volumes fell 4.3% amid record high prices.

Helen Dickinson, chief executive of the British Retail Consortium, said: "The cost-of-living crunch caused by record inflation continue to damage consumer confidence and stifle household spending. Discretionary spending and particularly bigger purchases were put off as consumers become increasingly concerned about the future. As a result, furniture sales and white goods were particularly hard hit, while food sales held up a little better.

"Retailers are squeezed between higher costs and weaker demand, resulting in the most challenging trading period since the start of the pandemic."

Elsewhere, the latest survey from GfK showed consumer confidence remained at a record low in July amid surging prices and rising interest rates. The GfK consumer confidence barometer's overall index was flat on the month at -48.

Joe Staton, client strategy director at GfK, said: "Consumer confidence remains severely depressed this month as the impact of soaring food and fuel prices and rising interest rates continues to darken the financial mood of the nation.

"Despite a two-point uptick in our hopes for our personal financial situation for the next 12 months, which might reflect optimism over imminent change at the top of the UK government, the overall index languishes at a historic low amid acute concerns for the general economic situation."

Still to come, the services and manufacturing PMIs for July are due at 0930 BST.

In equity markets, Beazley surged after the insurer posted a drop in interim pre-tax profit but reported its best combined ratio since 2015 and lifted its 2022 combined ratio guidance to high 80s.

Fund management services provider JTC gained as it hailed record new business growth in its interim results.

Quilter was knocked lower by a downgrade to 'neutral' from 'overweight' at JPMorgan Cazenove.

Home repairs and improvements business HomeServe was more or less flat after it said trading has been in line with expectations as shareholders prepared to approve a £4bn takeover by Canada's Brookfield Asset Management.

JD Sports lost ground even as it said that like-for-like sales were up 5% year-to-date and reiterated guidance for full-year headline pre-tax profits in line with its record performance in the year ended 29 January.

Market Movers

FTSE 100 (UKX) 7,281.73 0.15% FTSE 250 (MCX) 19,691.04 -0.09% techMARK (TASX) 4,377.26 -0.31%

FTSE 100 - Risers

Harbour Energy (HBR) 335.80p 1.63% BP (BP.) 389.65p 1.50% Admiral Group (ADM) 1,769.50p 1.37% Dechra Pharmaceuticals (DPH) 3,664.00p 1.27% Glencore (GLEN) 425.10p 1.26% Antofagasta (ANTO) 1,057.00p 0.96% Shell (SHEL) 2,047.00p 0.91% United Utilities Group (UU.) 1,068.00p 0.90% Severn Trent (SVT) 2,897.00p 0.87% Compass Group (CPG) 1,849.00p 0.76%

FTSE 100 - Fallers

Melrose Industries (MRO) 161.65p -1.73% Intermediate Capital Group (ICP) 1,448.50p -1.60% Smith (DS) (SMDS) 280.20p -1.58% Mondi (MNDI) 1,476.50p -1.40% JD Sports Fashion (JD.) 140.65p -1.33% Howden Joinery Group (HWDN) 647.20p -1.28% Kingfisher (KGF) 260.60p -1.21% Croda International (CRDA) 6,972.00p -1.08% Smith & Nephew (SN.) 1,189.50p -1.00% Smurfit Kappa Group (CDI) (SKG) 2,833.00p -0.81%

FTSE 250 - Risers

Beazley (BEZ) 538.50p 12.89% Biffa (BIFF) 372.00p 3.05% JTC (JTC) 728.00p 2.54% 4Imprint Group (FOUR) 3,025.00p 2.20% Hiscox Limited (DI) (HSX) 881.00p 1.90% Virgin Money UK (VMUK) 142.15p 1.75% Lancashire Holdings Limited (LRE) 408.00p 1.59% Energean (ENOG) 1,122.00p 1.45% Petrofac Ltd. (PFC) 107.90p 1.41% Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 299.50p 1.35%

FTSE 250 - Fallers

Chrysalis Investments Limited NPV (CHRY) 96.50p -5.76% Polymetal International (POLY) 185.00p -5.61% Discoverie Group (DSCV) 670.00p -4.83% Aston Martin Lagonda Global Holdings (AML) 510.00p -3.70% AJ Bell (AJB) 290.60p -3.13% Templeton Emerging Markets Inv Trust (TEM) 147.40p -2.77% HarbourVest Global Private Equity Limited A Shs (HVPE) 2,210.00p -2.64% Abrdn Private Equity Opportunities Trust (APEO) 473.00p -2.47% Fidelity China Special Situations (FCSS) 254.50p -2.30% TP Icap Group (TCAP) 115.80p -2.28%