London midday: Stocks off highs as investors mull mortgage approvals

(Sharecast News) - London stocks were up but off highs by midday on Wednesday, with Prudential rallying on the back of results, as investors mulled the latest UK mortgage approvals and consumer credit data. The FTSE 100 was up 0.2% at 7,479.71.

US stocks has a strong finish on Tuesday following the release of weak consumer confidence data and JOLTS figures showing that vacancies fell to 8.827m in August from 9.165m in July - the lowest level since March 2021.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "What appears to be bad news for the US economy is being notched up as good news for equities with a weakening jobs snapshot and slide in consumer confidence lifting indices. Signs of America's cooling economy have raised hopes that the pause button will be pushed on punishing interest rate hikes.

"The more optimistic tone has pushed the FTSE 100 up in early trade, offsetting ongoing concerns about the fragility of China's economy. The positive vibes are expected to keep reverberating with stock futures pointing to a positive start for Wall Street. A raft of other figures, including estimates of US economic growth in the second quarter, will be picked through today to see if the information backs up expectations that central bank policymakers at the Federal Reserve will leave rates unchanged."

On home shores, data from the Bank of England showed mortgage approvals and consumer lending both declined in July as elevated interest rates and the rising cost of living continue to wreak havoc with personal finances.

Net mortgage approvals (meaning, approvals minus cancellations) fell to 49,400 last month, from 54,600 in June. The figure was broadly in line with economists' expectations.

Approvals for remortgaging, however, edged higher - from 39,100 to 39,300. These figures only include those homeowners who remortgaged with a different lender.

For the month, the average interest rate paid on newly-drawn mortgages rose a further 3 basis points to 4.66% - double the 2.33% rate paid in July 2022.

Meanwhile, the BoE also announced that net borrowing of consumer credit by individual declined to £1.2bn in July after reaching a five-year high of £1.6bn in June. The central bank said the drop was a result of falls in other forms of consumer credit like car dealership finance and personal loans, while credit card borrowing was broadly stable.

Still to come across the pond, the latest ADP employment report is due at 1315 BST, while Q2 GDP data is at 1330 BST.

In equity markets, Prudential was the top riser on the FTSE 100 after the insurer posted a better-than-expected 6% rise in first-half operating profits as Chinese investors bought its products in Hong Kong after Covid restrictions were lifted. It also outlined a new investment strategy pivot towards Asia.

Engineering giant Smiths Group pushed higher after saying it was beefing up its US heating, ventilation and air conditioning operations with the purchase of Ohio-based Heating & Cooling Products for $82m.

Direct Line ticked up as it appointed Adam Winslow as chief executive to succeed Jon Greenwood who has been acting CEO since January. Winslow, who will start with the insurance company in the first quarter of 2024, has led Aviva's UK and Ireland general insurance business.

Market Movers

FTSE 100 (UKX) 7,479.71 0.20% FTSE 250 (MCX) 18,538.04 0.38% techMARK (TASX) 4,291.42 -0.01%

FTSE 100 - Risers

Prudential (PRU) 1,017.00p 3.27% Fresnillo (FRES) 582.80p 2.14% Persimmon (PSN) 1,057.50p 1.78% Beazley (BEZ) 557.00p 1.64% Taylor Wimpey (TW.) 114.45p 1.37% Smith (DS) (SMDS) 312.20p 1.30% Smurfit Kappa Group (CDI) (SKG) 3,330.00p 1.28% Ocado Group (OCDO) 791.20p 1.15% Rolls-Royce Holdings (RR.) 215.30p 1.13% Bunzl (BNZL) 2,835.00p 0.96%

FTSE 100 - Fallers

JD Sports Fashion (JD.) 141.75p -2.28% Kingfisher (KGF) 232.30p -1.82% International Consolidated Airlines Group SA (CDI) (IAG) 160.90p -1.35% SSE (SSE) 1,631.00p -1.21% Antofagasta (ANTO) 1,447.00p -0.99% Flutter Entertainment (CDI) (FLTR) 14,230.00p -0.84% Next (NXT) 6,900.00p -0.83% Hiscox Limited (DI) (HSX) 995.50p -0.75% F&C Investment Trust (FCIT) 859.00p -0.69% CRH (CDI) (CRH) 4,526.00p -0.68%

FTSE 250 - Risers

Future (FUTR) 783.50p 4.47% BBGI Global Infrastructure S.A. NPV (DI) (BBGI) 138.40p 3.44% Mobico Group (MCG) 81.65p 3.29% Diversified Energy Company (DEC) 94.30p 3.17% Harbour Energy (HBR) 248.20p 2.99% HICL Infrastructure (HICL) 131.20p 2.66% Mitie Group (MTO) 96.40p 2.55% Vistry Group (VTY) 769.50p 1.99% PureTech Health (PRTC) 196.80p 1.97% Marshalls (MSLH) 273.60p 1.94%

FTSE 250 - Fallers

Dr. Martens (DOCS) 156.60p -2.00% Synthomer (SYNT) 65.95p -1.86% Senior (SNR) 173.80p -1.47% Aston Martin Lagonda Global Holdings (AML) 349.60p -1.24% CMC Markets (CMCX) 114.80p -1.20% Syncona Limited NPV (SYNC) 132.80p -1.04% Digital 9 Infrastructure NPV (DGI9) 57.00p -1.04% JTC (JTC) 687.50p -1.01% Inchcape (INCH) 751.00p -0.86% Serco Group (SRP) 151.70p -0.85%