London open: Stocks edge down as investors eye US GDP, PCE

(Sharecast News) - London stocks edged lower in early trade on Thursday as worries that rates will stay higher for longer continued to dent sentiment, with attention turning to upcoming US GDP and PCE figures. At 0830 BST, the FTSE 100 was down 0.2% at 8,168.95.

Investors were looking ahead to the release of US Q1 GDP figures at 1330 BST and the latest PCE numbers on Friday.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "All eyes are on the US GDP update due today, and the Fed's favourite gauge of inflation - the core PCE number - due tomorrow. The US GDP is expected to have slowed significantly in the Q1, with - however - a significant rise in price pressures (that's already priced in), while the core PCE print for April could hint at some easing in the latest pickup in inflation.

"The best outcome would be a reasonably soft growth coupled with easing price pressures, but we could realistically get a slowing growth coupled with an insufficient easing in price pressures, instead. To the Fed, the inflation number will matter more than the growth update as regardless of the deteriorating economic growth, the progress in inflation will determine whether the Fed could remain on path to cut rates this year.

"Therefore, it will be hard to interpret today's GDP data before seeing tomorrow's PCE print. And even then, Citigroup thinks that this week's data will trigger limited price action; the upcoming US jobs and CPI updates in the next weeks will matter more."

She added that for now, rising bond yields are taking a toll on stock valuations in the absence of other catalysts.

On home shores, the latest figures from Zoopla showed the number of houses for sale rose to an eight-year high in the four weeks to 19 May.

The average estate agent had 31 homes for sale, up 20% on the same period a year earlier and the highest level since 2017, according to Zoopla.

Richard Donnell, executive director at Zoopla, said: "The growth in the supply of homes for sale is evidence of renewed confidence amongst homeowners, some of whom delayed moving decisions in 2023.

"The quarterly rate of house price inflation has picked up in recent months as more sales are agreed and prices firm.

"The announcement of the election will slow the pace at which new sales are agreed while greater choice for buyers will keep house prices in check over 2024. It's essential that those serious about moving in 2024 price their homes realistically if they want to achieve a sale."

In equity markets, Auto Trader powered ahead as it said the new financial year had got off to a strong start and posted a jump in annual sales and profits.

The car marketplace specialist said revenues in the year to 30 May rose 14% to £570.9m. Within that, Auto Trader sales increased 12% to £529.7m while leasing specialist Autorama saw a 51% increase to £41.2m. Group adjusted earnings before interest, tax, depreciation and amortisation rose 14% to £375.3m, while pre-tax profits increased 18% to £345.2m.

Troubled bootmaker Dr Martens also gained as it held guidance for the current year and announced a cost savings target of up to £25m. It also posted a bigger-than-expected fall in annual revenue and operating profit as its US woes continued.

Revenue fell 12% to £877m against expectations of £900m, while operating profit plunged by a third to £122m compared with forecasts of £125m. Pre-tax profits were down 43% to £97m.

Market Movers

FTSE 100 (UKX) 8,168.95 -0.17% FTSE 250 (MCX) 20,454.14 0.09% techMARK (TASX) 4,772.45 0.07%

FTSE 100 - Risers

Auto Trader Group (AUTO) 809.60p 7.06% AstraZeneca (AZN) 12,066.00p 1.68% Airtel Africa (AAF) 120.90p 0.75% Reckitt Benckiser Group (RKT) 4,310.00p 0.61% Flutter Entertainment (DI) (FLTR) 14,560.00p 0.59% International Consolidated Airlines Group SA (CDI) (IAG) 169.75p 0.44% Halma (HLMA) 2,237.00p 0.40% Haleon (HLN) 323.20p 0.40% B&M European Value Retail S.A. (DI) (BME) 546.00p 0.37% Land Securities Group (LAND) 641.00p 0.31%

FTSE 100 - Fallers

Coca-Cola HBC AG (CDI) (CCH) 2,648.00p -2.93% Severn Trent (SVT) 2,321.00p -2.39% Centrica (CNA) 137.65p -2.39% Sage Group (SGE) 1,039.00p -2.31% Anglo American (AAL) 2,434.50p -2.26% Ocado Group (OCDO) 354.40p -2.25% Antofagasta (ANTO) 2,219.00p -2.16% Intertek Group (ITRK) 4,736.00p -1.90% Fresnillo (FRES) 620.00p -1.68% Rio Tinto (RIO) 5,408.00p -1.57%

FTSE 250 - Risers

Dr. Martens (DOCS) 88.10p 5.96% AJ Bell (AJB) 400.00p 4.58% W.A.G Payment Solutions (WPS) 73.00p 4.29% Tyman (TYMN) 381.50p 4.23% Currys (CURY) 74.55p 3.85% Asia Dragon Trust (DGN) 410.00p 3.27% Morgan Advanced Materials (MGAM) 317.00p 2.92% Helios Towers (HTWS) 123.00p 2.84% Aston Martin Lagonda Global Holdings (AML) 136.20p 2.71% Dunelm Group (DNLM) 1,103.00p 2.70%

FTSE 250 - Fallers

CMC Markets (CMCX) 270.50p -4.75% Centamin (DI) (CEY) 120.20p -2.86% TUI AG Reg Shs (DI) (TUI) 537.00p -2.55% Keller Group (KLR) 1,322.00p -2.37% Great Portland Estates (GPE) 347.50p -2.11% Hilton Food Group (HFG) 885.00p -2.10% BlackRock World Mining Trust (BRWM) 580.00p -1.70% Bank of Georgia Group (BGEO) 3,740.00p -1.69% Greggs (GRG) 2,894.00p -1.66% Ferrexpo (FXPO) 43.20p -1.61%