Yahoo Finance FTSE 100 Live 15 October: Rate cut 'more likely' as wage growth eases, Brent Crude below $75
Builders and airlines rise but FTSE 100 lower, De La Rue up 21%
08:34 , Graeme Evans
Commodity price pressure means the FTSE 100 index is trading lower, with shares in BP, Shell, Glencore and Anglo American down by more than 2%.
Airlines easyJet and IAG are benefiting from the oil price weakness as their shares have added 2%, while builders Barratt Redrow and Taylor Wimpey are up by a similar level due to expectations of a November interest rate cut.
The FTSE 100 index stands 11.80 points lower at 8280.86, having been forecast to open higher on the back of strong Wall Street trading.
In the FTSE 250 index, Bellway shares have jumped 7% or 212p to 3264p after the housebuilder reported a strong order book alongside annual results.
Banknote printer De La Rue is up 21% in the FTSE All-Share after it announced a deal to sell its Authentication division for £300 million.
Applied Nutrition reveals IPO price range
08:17 , Graeme Evans
Applied Nutrition is set to be worth between £340 million and £400 million when the sports supplements business makes its stock market debut later this month.
Founded in 2014 by the current chief executive Thomas Ryder, the Liverpool-based company generated revenues of £86 million in the year to 31 July. Its products are available in more than 80 countries worldwide.
The company said four North West entrepreneurs, including Mohsin Issa, have committed to participate in the offer to an aggregate value of £25 million.
In 2021, JD Sports Fashion acquired 32% of the business as a strategic initiative alongside its JD Gyms business.
The proposed listing, which is open to retail investors, provides a boost to the London market after a barren period for IPOs. The expected price range for the offer has been set at 136p to 160p a share.
De La Rue agrees £300m sale of authentication division
08:01 , Graeme Evans
Banknote printer De La Rue is to sell its authentication division in a deal worth £300 million.
The business, which provides software and security labels to protect against illicit trade, counterfeiting and identity theft, is to be acquired by industrial technology company Crane NXT.
Completion of the sale will allow De La Rue to repay its existing revolving credit facility in full ahead of its maturity on 1 July.
It will also help the 211-year-old group as it looks for a long-term funding solution for its legacy defined benefit pension scheme. In addition, De La Rue will be able to focus on its currency business.
De La Rue chair Clive Whiley called the sale a “substantial step forward” towards realising the underlying intrinsic value of the De La Rue business.
Rate cut “more likely” after jobs market release
07:38 , Graeme Evans
Capital Economics said today’s labour and earnings figures support expectations that the Bank of England will cut interest rates from 5% to 4.75% in November.
While the unemployment rate fell from 4.1% to 4%, the consultancy highlighted other signs that the labour market is loosening gradually.
The number of job vacancies fell from 856,000 to 841,000 in the three months to September, leaving it 36% below its peak in May 2022 and just 3% above its pre-pandemic level.
It added that August’s wage growth figures were broadly in line with hopes, with the three-month rate of average earnings growth down from 4.1% to 3.8%.
“Overall, today’s data release leaves another interest rate cut in November looking even more likely,” Capital Economics said.
Oil price lower amid Middle East reports
07:27 , Graeme Evans
Oil prices are under pressure, driven lower by a combination of OPEC’s downgraded demand outlook and reduced geopolitical risk.
Brent Crude is at $74.59 a barrel, compared with more than $80 last week.
IG’s chief market analyst Chris Beauchamp said: "Reports overnight suggested that Israel will opt for a strike on military facilities, leaving Iran's oil and nuclear infrastructure untouched.
“The news prompted a sharp drop in oil prices, which had remained bid to an extent on fears that Tel Aviv would take a significant escalatory step in the conflict between the two regional powers."
"Coupled with OPEC's downgrade of demand yesterday, the news has been enough to remove any lingering buying pressure in the commodity, with more losses looking likely."
Unemployment rate at 4%, earnings growth slows
07:16 , Graeme Evans
The UK’s unemployment rate unexpectedly fell to 4% in the June to August quarter, figures from the Office for National Statistics showed today.
Annual growth in average regular earnings excluding bonuses was 4.9% in the quarter, in line with forecasts and down from 5.1% reported previously.
Including bonuses, earnings rose by 3.8% on a year earlier compared with a revised 4.1% in last month’s release.
FTSE 100 seen higher after US advance, Brent Crude below $75
07:02 , Graeme Evans
US stock markets have moved deeper into record territory after the S&P 500 index rose 0.8% and the Dow Jones Industrial Average lifted 0.5% last night.
The FTSE 100 index is set for a stronger session on the back of the US progress, with futures trading pointing to a rise of 16 points to 8308.
London’s advance is likely to be limited by pressure on energy stocks after OPEC lowered its global oil demand forecast for this year and next.
The revision due to consumption projections in countries including China left Brent Crude futures at $74.61 a barrel, including this morning’s 3.7% decline.
The pound continues to weaken against the dollar to stand at $1.304.
