London open: FTSE nudges up as investors eye US data, Nvidia results; WPP surges

(Sharecast News) - London stocks nudged higher in early trade on Monday, with investors cautious at the start of a week that will see the release of the first batch of US data since the government shutdown and third-quarter results from US chipmaker Nvidia.

At 0830 GMT, the FTSE 100 was up 0.1% at 9,706.17, having fallen sharply on Friday on the back of Budget jitters, concerns about an AI bubble and growing doubts about a US rate cut in December.

Kathleen Brooks, research director at XTB, said: "The next few days could be key for long term direction of stocks and how they perform into year end. Later this week we will get long-awaited data releases from the US, which will be key to determining if the Fed cuts interest rates next month. We also get Nvidia's results on Wednesday, which could revitalize the AI/ big tech trade.

"As we have mentioned in the past, a pattern is developing as we move into the end of the year. On average, stocks have tended to sell off at the end of the week, with markets bouncing back again on Monday, so we will be looking to see if there is a recovery at the start of this week."

As far as Nvidia is concerned, Brooks said analysts are expecting another "monster report".

"Nvidia is expected to report revenues of $55.14bn for last quarter, and net income of $30.8bn. These could be 'perfect' results, with future earnings guidance also expected to be strong, as the GB3000 sees demand accelerating, and hyperscalers committing billions of dollars in AI investment into 2026.

"Overall, this report could suggest that Nvidia is not only central to the entire AI project, but it is also so cash-generative and successful it may be lead to investors taking a fresh look at the AI trade. We continue to think that hyperscalers' share prices will lag AI capex beneficiaries like Nvidia's for some time, as we mention above. However, if Nvidia gives a positive outlook, then it could lift the entire tech sector later this week."

On home shores, data from Rightmove showed that house prices fell in November as the spike in supply and mounting uncertainty around the Budget weighed heavily.

Average new seller asking prices fell 1.8%, a larger-than-usual decline for the time of year. It also reversed October's 0.3% uptick. Year-on-year, prices were 0.5% lower, leaving the national average asking price at £364,833.

Agreed sales in the year-to-date rose 4%.

The supply of houses coming to market - which had long lagged demand - has surged this year, giving buyers more power and depressing prices. However, the Budget was also proving a "distraction", Rightmove said.

It found sales agreed for homes priced at £2m and above had fallen sharply, down 13% year-on-year.

Speculation is rife that £2m-plus house sales could be subject to a new mansion tax, while other reports have mooted possible changes to stamp duty, which would affect homes sold for between £500,000 and £2m.

Rightmove's Collen Babcock said: "The Budget is a big distraction, and is later in the year than usual, with many would-be buyers waiting to see how their finances will be impacted.

"It appears the usual lull we'd see around Christmas time has arrived early this year, and sellers who are keen to move are having to work especially hard to entice buyers with competitive pricing."

In equity markets, advertising giant WPP surged after The Times reported it has attracted takeover interest from France's Havas and private equity firms Apollo and KKR ahead of its demotion from the FTSE 100.

DCC was in the black after saying it will return up to £600m to shareholders following the £1bn sale of its healthcare unit.

THG gained after the ecommerce said its Myprotein brand has agreed a new partnership with American food giant Mars to collaborate on a new range of Snickers-flavoured protein powders.

Genuit tumbled as it downgraded its full-year earnings guidance, citing a moderation in market volumes since the first-half results, driven by purchasing uncertainty related to the upcoming Budget and current UK economic outlook.

Elsewhere, HICL Infrastructure and The Renewables Infrastructure Group said they had agreed a merger to create the UK's largest listed infrastructure investment company with net assets in excess of £5.3bn.

The combination will see the reconstruction and voluntary winding up of TRIG, with TRIG's assets transferred to HICL in exchange for the issue of new HICL shares and cash.

HICL shares slid but TRIG shot higher.

Market Movers

FTSE 100 (UKX) 9,706.17 0.08% FTSE 250 (MCX) 21,805.55 -0.06% techMARK (TASX) 5,553.18 0.20%

FTSE 100 - Risers

WPP (WPP) 302.90p 5.06% 3i Group (III) 3,431.00p 2.88% Entain (ENT) 713.40p 1.86% British American Tobacco (BATS) 4,120.00p 1.18% Pershing Square Holdings Ltd NPV (PSH) 4,690.00p 1.16% DCC (CDI) (DCC) 5,075.00p 1.10% Smurfit Westrock (DI) (SWR) 2,626.00p 0.88% Fresnillo (FRES) 2,394.00p 0.84% BAE Systems (BA.) 1,821.50p 0.80% SSE (SSE) 2,244.00p 0.76%

FTSE 100 - Fallers

Burberry Group (BRBY) 1,196.50p -2.88% Anglo American (AAL) 2,821.00p -1.02% Spirax Group (SPX) 6,865.00p -0.94% Bunzl (BNZL) 2,160.00p -0.83% Croda International (CRDA) 2,802.00p -0.78% easyJet (EZJ) 465.80p -0.72% Whitbread (WTB) 2,758.00p -0.68% Antofagasta (ANTO) 2,759.00p -0.68% Melrose Industries (MRO) 617.00p -0.68% Hikma Pharmaceuticals (HIK) 1,567.00p -0.63%

FTSE 250 - Risers

The Renewables Infrastructure Group Limited (TRIG) 76.70p 6.53% NCC Group (NCC) 150.00p 4.31% THG (THG) 46.74p 3.82% Zigup (ZIG) 356.50p 2.74% Frasers Group (FRAS) 717.00p 2.14% SDCL Efficiency Income Trust (SEIT) 61.10p 1.50% Diversified Energy Company (DEC) 1,158.00p 1.49% Aston Martin Lagonda Global Holdings (AML) 60.20p 1.43% Greencoat UK Wind (UKW) 101.40p 1.40% Victrex plc (VCT) 630.00p 1.29%

FTSE 250 - Fallers

Genuit Group (GEN) 321.50p -9.44% HICL Infrastructure (HICL) 109.20p -7.30% CMC Markets (CMCX) 204.00p -2.63% Ninety One (N91) 214.60p -2.37% Barr (A.G.) (BAG) 640.00p -1.84% Quilter (QLT) 178.30p -1.65% IP Group (IPO) 61.00p -1.45% Schroder Asia Pacific Fund (SDP) 667.00p -1.33% TR Property Inv Trust (TRY) 322.00p -1.23% Dr. Martens (DOCS) 84.75p -1.17%