London Stock Markets Pause Gains as Investors Await UK GDP Data
Market Overview and Key Drivers
Aug 10 (Reuters) - London's stock indexes were subdued on Monday, pausing after last week's gains as investors focussed on earnings reports and upcoming economic data for clues on the health of the British economy.
Index Performance
The blue-chip FTSE 100 fell 0.2% to 10,874.64 points by 1020 GMT, while the midcap FTSE 250 added 0.1% to 24,880.50 points. Both indexes notched their fourth consecutive week of gains on Friday.
Recent Market Support Factors
- Upbeat earnings reports and expectations of a U.S.-Iran peace agreement have underpinned British stocks lately.
- Oil prices edged higher as optimism over talks to reopen the Strait of Hormuz was tempered by Iran's insistence that the United States must satisfy several demands before the waterway could reopen.
Upcoming Economic Data
UK GDP and Retail Sales
Data on Thursday is expected to show the UK economy grew 1.1% on an annualised basis in the second quarter, possibly helped by lower energy prices. British retail sales were unexpectedly strong in June, helped by spending related to warm weather and the World Cup.
Labour Market Trends
Britain's labour market showed tentative signs of stabilisation in July, as recruiters stopped shedding permanent staff, according to a survey that also showed a faster rise in starting salaries.
Company Highlights
Vistry
Credit Insurance Concerns
Among single stocks, affordable homebuilder Vistry slid 7.5% after the Financial Times reported that credit insurer Allianz Trade was reducing the cover it extends to Vistry's suppliers by up to 70%, a move that could exacerbate a cash flow squeeze.
Glencore
Price Target Upgrade
Mining giant Glencore climbed 2.2% after Barclays raised its price target to 650 pence from 635 pence following strong results last week.
Plus500
Profit Growth
Plus500 climbed 5.9% after the trading platform reported a rise in half-year core profit, aided by higher trading activity.
(Reporting by Anand Gopal and Sruthi Shankar in Bengaluru; Editing by Mrigank Dhaniwala)
