London midday: FTSE touch lower amid Budget jitters

(Sharecast News) - London stocks were still just a touch weaker by midday on Friday as investors mulled a decline in consumer confidence and as wariness set in ahead of next week's Budget. The FTSE 100 was down 0.1% at 8,259.39.

A survey released earlier by GfK showed that consumer confidence fell slightly in October, with consumers in a "despondent" mood ahead of the Budget.

GfK's consumer confidence index nudged down one point to -21, falling back down to the level last seen in March this year.

Neil Bellamy, consumer insights director at GfK, said: "As the Budget statement looms, consumers are in a despondent mood despite a fall in the headline rate of inflation.

"This month's consumer confidence barometer paints a picture of people holding their breath to see what's in store for them on 30th October."

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "The FTSE 100 is in a holding patten at the end of the week, as the UK Budget looms and investors remain highly cautious.

"As the guessing game continues about what Chancellor Rachel Reeves will include in her first Budget, it's dented consumer confidence in the UK. A closely watched survey from GfK indicates that a despondent mood has taken hold ahead of revelation of the government's tax and spending plans with concerns about the UK economy rising.

"GfK's consumer confidence survey fell one point to -21 in October from -20 in September. This is the lowest since March, when the former Conservative Chancellor Jeremy Hunt delivered his last Budget. However, with fresh interest rate cuts expected optimism around consumers' finances and confidence about making major purchases ticked up. This will provide hope that once the government's financial plan becomes clear, uncertainty may ease off and overall consumer confidence may rebound."

On the corporate front, NatWest jumped to the top of the FTSE 100 as it raised its full-year income forecasts after a strong third quarter, in which profits jumped by 34.6% on last year. Profit for the three months to 30 September totalled £1.24bn, up from £924m, as total income rose 7.3% to £3.49bn.

The banking group said it now expects to achieve a return on tangible equity above 15%, up one percentage point on previous guidance, while adjusted income should come in at £14.4bn, compared with an earlier forecast of £14bn.

Airtel Africa slumped as it posted a decline in first-half profit and revenues. In the half year to 30 September, revenue fell 9.7% $2.37bn, hit in particular by "significant" currency devaluations in Nigeria, Malawi, Zambia and Tanzania.

Meanwhile, operating profit was down 20.3% to $706m.

SSE was knocked lower by a downgrade to 'sell' at Citi. The bank said: "SSE has an attractive set of networks and renewable assets. However, we are increasingly concerned around the deployment of its offshore wind fleet and see risks of further delays, which could impact EPS and/or returns."



Market Movers

FTSE 100 (UKX) 8,259.39 -0.12% FTSE 250 (MCX) 20,802.84 0.06% techMARK (TASX) 4,732.58 -0.30%

FTSE 100 - Risers

NATWEST GROUP (NWG) 373.40p 4.80% Barclays (BARC) 245.00p 2.88% Anglo American (AAL) 2,383.00p 2.56% London Stock Exchange Group (LSEG) 10,635.00p 2.41% Unilever (ULVR) 4,758.00p 2.26% Standard Chartered (STAN) 860.20p 2.14% Intermediate Capital Group (ICG) 2,124.00p 1.82% Scottish Mortgage Inv Trust (SMT) 864.20p 1.62% Auto Trader Group (AUTO) 885.00p 1.51% CRH (CDI) (CRH) 7,138.00p 1.45%

FTSE 100 - Fallers

Airtel Africa (AAF) 109.90p -4.02% Smith & Nephew (SN.) 1,079.00p -3.92% SSE (SSE) 1,823.50p -3.65% United Utilities Group (UU.) 1,042.50p -2.66% Intertek Group (ITRK) 4,726.00p -2.44% Severn Trent (SVT) 2,619.00p -2.42% Convatec Group (CTEC) 218.40p -2.24% Reckitt Benckiser Group (RKT) 4,865.00p -1.78% BAE Systems (BA.) 1,299.50p -1.78% Hikma Pharmaceuticals (HIK) 1,940.00p -1.67%

FTSE 250 - Risers

Bloomsbury Publishing (BMY) 758.00p 11.14% Softcat (SCT) 1,686.00p 10.05% Burberry Group (BRBY) 764.60p 7.39% Indivior (INDV) 695.50p 6.43% Trustpilot Group (TRST) 247.50p 4.43% Kainos Group (KNOS) 825.00p 3.64% Watches of Switzerland Group (WOSG) 448.40p 3.46% Spire Healthcare Group (SPI) 226.00p 2.73% CMC Markets (CMCX) 325.00p 2.69% Alpha Group International (ALPH) 2,125.00p 2.66%

FTSE 250 - Fallers

Abrdn (ABDN) 141.50p -13.69% Close Brothers Group (CBG) 330.00p -10.47% Travis Perkins (TPK) 875.50p -5.04% Pennon Group (PNN) 566.50p -4.47% Inchcape (INCH) 731.00p -4.13% Wetherspoon (J.D.) (JDW) 679.00p -3.76% Kier Group (KIE) 143.80p -3.75% Jupiter Fund Management (JUP) 80.60p -3.59% PureTech Health (PRTC) 151.20p -3.45% Morgan Sindall Group (MGNS) 3,830.00p -3.16%