Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
London open: Stocks flat as risk appetite declines ahead of central bank decisions
(Sharecast News) - London stocks opened more or less flat on Monday morning, pausing at a four-month high as investors exercised caution ahead of some pivotal monetary policy decisions later in the week. The FTSE 100 was trading 0.1% lower at 7,701 by 0832. The index closed at 7,711.38 on Friday following a 3.1% rise last week - it hasn't closed above this level since 23 May.
Sentiment was being dampened somewhat by a mixed performance from Asian stock markets overnight, with concerns about China's property crisis continuing. China Evergrande shares tanked more than 20% after the struggling developer saw a number of employees at its wealth management unit detained by police.
"While there have been signs of economic recovery in certain areas, the primary concern for the market continues to be the property sector," said Stephen Innes, managing partner at SPI Asset Management. "Despite the recent signs of growth and inflation bottoming out amid measures taken by Beijing to boost investor confidence, foreign funds have been talking with their feet, exiting Chinese stocks en masse."
The only major noteworthy economic release out Monday was the Rightmove House Price Index in the UK, which showed that house prices nudged up just 0.4% in September, following a 1.9% fall in August. The rise was below average for this time of year. Year-on-year prices fell 0.4%, building on August's 0.1% decline and the biggest annual dip since March 2019.
All eyes on the central banks
It's set to be a busy week, with policy decisions due from the Federal Reserve (Wednesday), the Bank of England (Thursday) and a host of other central banks elsewhere, including Japan, Brazil and Turkey.
The Fed is widely expected to hold rates steady following a recent barrage of economic data showing the US economy to have cooled slightly in August. Though analysts are holding out the possibility of one further rate hike to 5.50-5.75% later this year.
"The Fed decision on Wednesday is fully expected to result in a no-change decision, but crucially the accompanying comments should give something of an insight into its current thinking. With investors currently split on the outlook over the next year, the latest thoughts from the Fed could well prove to be market moving," said Richard Hunter, head of markets at Interactive Investor.
The Bank of England is set to hike its benchmark interest rate by 25 basis points to 5.5%, according to economists, but it is hoped that this will be the peak for rates in the current cycle, before it begins to loosen monetary policy in 2024.
"The market has massively scaled back expectations for any future tightening and will therefore be very interested in the BoE's statement," said analyst Chris Turner from ING.
However, a lot will ride on the outcome of August's UK consumer price index (CPI) due out on Wednesday. Prices are expected to have risen 0.7% after a 0.4% fall in July, according to consensus forecasts, though the annual rate of core inflation is estimated to have eased to 6.8% from 6.9%.
"Although inflation figures for August will not be published until the day before the rate announcement, the July figures exceeded expectations for both headline and core inflation with most notably service inflation reaccelerating," said analysts at Danske Bank.
Phoenix and Mondi rise early
Paper and packaging group Mondi rose strongly after selling its last remaining facility in Russia to Sezar Invest for 80bn roubles (€775m). Western companies have exited Russia after sanctions were imposed in response to Moscow's unprovoked invasion on neighbouring Ukraine.
Savings and retirement group Phoenix was also in favour after lifting its interim dividend by 5% after smashing forecasts with cash generation in the first half.
Providing a drag on the Footsie were utility stocks such as SSE, United Utilities and Severn Trent.
Market Movers
FTSE 100 (UKX) 7,701.48 -0.13% FTSE 250 (MCX) 18,750.74 -0.21% techMARK (TASX) 4,409.28 -0.08%
FTSE 100 - Risers
Mondi (MNDI) 1,397.00p 4.49% Ocado Group (OCDO) 778.60p 1.96% Marks & Spencer Group (MKS) 221.80p 0.96% Phoenix Group Holdings (PHNX) 542.80p 0.89% Glencore (GLEN) 459.25p 0.62% IMI (IMI) 1,520.00p 0.53% Ashtead Group (AHT) 5,228.00p 0.42% Aviva (AV.) 402.30p 0.40% Rolls-Royce Holdings (RR.) 228.30p 0.40% BP (BP.) 525.20p 0.38%
FTSE 100 - Fallers
WPP (WPP) 754.60p -2.33% Unite Group (UTG) 909.50p -1.46% SEGRO (SGRO) 729.80p -1.27% United Utilities Group (UU.) 974.40p -1.14% Severn Trent (SVT) 2,458.00p -1.13% Land Securities Group (LAND) 586.60p -1.05% RS Group (RS1) 737.00p -0.94% SSE (SSE) 1,654.00p -0.87% Sainsbury (J) (SBRY) 277.20p -0.86% Taylor Wimpey (TW.) 117.80p -0.84%
FTSE 250 - Risers
Bridgepoint Group (Reg S) (BPT) 200.80p 4.31% International Distributions Services (IDS) 267.60p 4.00% Drax Group (DRX) 516.80p 3.86% Energean (ENOG) 1,200.00p 3.00% Helios Towers (HTWS) 83.60p 2.83% Baltic Classifieds Group (BCG) 211.00p 2.68% NCC Group (NCC) 102.20p 2.20% Currys (CURY) 50.25p 2.18% Target Healthcare Reit Ltd (THRL) 78.10p 1.96% VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 461.00p 1.65%
FTSE 250 - Fallers
Ceres Power Holdings (CWR) 348.80p -3.11% Jupiter Fund Management (JUP) 97.60p -2.30% Games Workshop Group (GAW) 11,230.00p -2.26% Wizz Air Holdings (WIZZ) 2,018.00p -2.04% Indivior (INDV) 1,774.00p -1.93% Crest Nicholson Holdings (CRST) 182.80p -1.93% RHI Magnesita N.V. (DI) (RHIM) 2,826.00p -1.74% Savills (SVS) 913.00p -1.72% ICG Enterprise Trust (ICGT) 1,170.00p -1.68% Foresight Group Holdings Limited NPV (FSG) 433.00p -1.59%
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.