London stock indexes dipped slightly by midday as investors focused on the upcoming release of US growth figures, a key US inflation reading, and UK GDP data. The FTSE 100 was down 0.2% at 8,206.36 [b29bbb3b]. Market analyst Joshua Mahony highlighted the importance of the US economy's performance, particularly the final GDP and core durable goods orders data, as well as the crucial core PCE inflation release. Mahony noted that signs of weakness in the jobs market and the decline in new home sales figures have raised concerns. The Federal Reserve will be monitoring these developments to determine if and when to react, with a potential rate cut in September [b29bbb3b]. The upcoming US and UK economic data releases will likely impact investor sentiment and future interest rate decisions [5f2133a3].
In other news, luxury timepiece seller Watches of Switzerland announced that it is maintaining its current-year guidance after annual profits fell. Pre-tax profit for the year to April 28 dropped by 40% to £92m [a530aa73]. Outsourcing company Serco has lifted its full-year profit guidance after making good progress in the first half. CEO Mark Irwin expressed optimism about the company's growth targets [a530aa73].
London stock indexes remained mostly flat, with marginal declines in the pharmaceutical and automobile sectors. The upcoming release of key US and UK economic data, including the US PCE and UK GDP figures, is anticipated to have an impact on future interest rate decisions [5f2133a3].
Stocks in London fell as GlaxoSmithKline (GSK) shares dropped following a US vaccine ruling. The FTSE 100 was down 0.8% over the week [26c586b9]. The bond market also influenced investor sentiment, with global sovereign bonds selling off and pushing up bond yields. UK 10-year Gilt yields were up 3 basis points [26c586b9]. European markets were described as 'somewhat indecisive' [26c586b9].
DS Smith, a packaging company, saw its shares rise over 6% after news broke that its takeover by International Paper Co is more likely [26c586b9]. Taylor Swift's world tour is expected to generate £1 billion for the UK economy [26c586b9]. Car manufacturers in Britain are putting pressure on the incoming government for support [26c586b9]. Bunzl shares were up close to 1% after the company upgraded its guidance for the year based on improved margin performance and previous acquisitions [26c586b9]. Analysts do not believe that unexpected rises in inflation in Canada or Australian CPI hitting six-month highs will affect the UK's chances of rate cuts [26c586b9] [5f2133a3].
The FTSE 100 slipped on Thursday as investors prepared for a raft of vital US economic data set for release on Friday. The upcoming US PCE, one of the Fed's key indicators of inflation, is expected to set the tone for trade in the coming week. The FTSE 100 struggled to find direction as strength in energy and banking stocks was offset by weakness in pharmaceuticals, tobacco, and mining. GlaxoSmithKline (GSK) shares were the top faller after the US narrowed its age recommendation for the use of RSV vaccines. GSK shares were down over 5% on the day and have nearly erased all its gains for the year. BP shares were marginally higher amid reports it was rolling back its push into clean energy by stepping down the pace of hiring. BP shares were 0.9% at the time of writing [0d9ff5aa]. GSK shares fell 6% following a US ruling on its RSV vaccination. The Centers for Disease Control and Prevention's (CDC) advisory committee on immunization practices (ACIP) unanimously voted to restrict RSV vaccine recommendation to defined at-risk 60-74s, whilst expanding use for all 75 and older. These decisions may cut 2024-25 addressable US market from around 80 million people aged 60-plus as well as circa 13 million at-risk aged 50-59, to perhaps circa 55 million, said analysts at Jefferies, with around 10 million dosed last season [783bec4a].