London open: Stocks gain ahead of payrolls; Reckitt surges

London stocks rose in early trade on Friday as investors digested the latest house price and retail industry data and looked ahead to the US non-farm payrolls report.

At 0835 GMT, the FTSE 100 was up 0.4% at 8,142.58.

The payrolls report for October is due at 1230 GMT, along with the unemployment rate and average earnings.

Richard Hunter, head of markets at Interactive Investor, said: "The next test which rounds off a packed week of updates comes later with the release of the non-farm payrolls report, where the current consensus is that 113,000 jobs will have been added last month, compared to 254,000 in September and where unemployment is expected to remain steady at 4.1%."

On home shores, figures released earlier by Nationwide showed that house price growth slowed in October.

House prices ticked up 0.1% on the month following 0.6% growth in September. This was below expectations for 0.3% growth.

On the year, house prices increased 2.4% in October, down from 3.2% a month earlier.

The average price of a home stood at £265, 738, down from £266,094 in September.

Nationwide chief economist Robert Gardner said: "Housing market activity has remained relatively resilient in recent months, with the number of mortgage approvals approaching the levels seen pre-pandemic, despite the significantly higher interest rate environment.

"Solid labour market conditions, with low levels of unemployment and strong income gains, even after taking account of inflation, have helped underpin a steady rise in activity and house prices since the start of the year.

"Providing the economy continues to recover steadily, as we expect, housing market activity is likely to continue to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth."

Investors were also mulling the latest retail industry data, which showed that footfall declined in October, reversing much of September’s surprise uplift.

Footfall jumped 3.3% in September, the first rise in over year and a notable improvement on August’s 0.4% dip.

But according to the latest data from the British Retail Consortium and Sensormatic, total UK footfall decreased 1.1% in October, dampening hopes for the start of a more positive trend.

High streets recorded a 3.6% slide, compared to September’s 0.9% uptick, while shopping centre footfall was down 1.6%. In September, it rose 2.3%.

Retail park footfall increased by 4.8%. But that was below September’s 7.3% spike.

Andy Sumpter, EMEA retail consultant at Sensormatic, said: "While this will be disappointing for many retailers, who may have hoped the positive figures in September would spell the start of a more consistent uptick in store traffic, it perhaps shouldn’t come as a surprise.

"We expect to see a bumpy recovery as myriad market conditions - from the cost of living to shaky consumer confidence around the Budget - continue to make footfall performance volatile."

Helen Dickinson, chief executive of the British Retail Consortium, said the timing of half term had made for tough comparatives.

However, she added: "Retailers have seen footfall consistently fall since the pandemic. Thriving high streets and town centres not only good for local economies but also form a key part of the social fabric of communities up and down the country.

"Retailers needs a policy environment that supports growth and investment."

In equity markets, Reckitt Benckiser surged to the top of the FTSE 100 after its subsidiary Mead Johnson was cleared of liability in a US trial investigating whether it - and Abbott - hid bowel disease risks associated with premature-baby formula.

CMC Markets gained as it announced a long-term partnership with New Zealand bank ASB, to provide ASB's clients with a customised trading platform, integrating CMC's technology with the bank’s existing systems.

Schroders was boosted by an upgrade to ‘outperform’ at BNPP Exane.

Market Movers

FTSE 100 (UKX) 8,142.58 0.40%
FTSE 250 (MCX) 20,412.10 0.11%
techMARK (TASX) 4,614.96 0.14%

FTSE 100 - Risers

Reckitt Benckiser Group (RKT) 5,180.00p 10.59%
Schroders (SDR) 353.60p 2.79%
GSK (GSK) 1,419.50p 1.94%
Antofagasta (ANTO) 1,751.00p 1.10%
Shell (SHEL) 2,605.00p 1.03%
BP (BP.) 380.30p 0.97%
Kingfisher (KGF) 295.00p 0.85%
Persimmon (PSN) 1,478.50p 0.78%
Rolls-Royce Holdings (RR.) 539.20p 0.71%
Anglo American (AAL) 2,417.00p 0.71%

FTSE 100 - Fallers

easyJet (EZJ) 502.40p -1.64%
Smith (DS) (SMDS) 537.00p -1.56%
Entain (ENT) 735.20p -1.32%
International Consolidated Airlines Group SA (CDI) (IAG) 208.20p -1.28%
Halma (HLMA) 2,451.00p -0.97%
Smith & Nephew (SN.) 952.20p -0.92%
Informa (INF) 801.80p -0.84%
InterContinental Hotels Group (IHG) 8,498.00p -0.75%
Smurfit Westrock (DI) (SWR) 3,987.00p -0.70%
Land Securities Group (LAND) 597.50p -0.67%

FTSE 250 - Risers

Moonpig Group (MOON) 260.50p 4.20%
Future (FUTR) 910.00p 3.70%
Close Brothers Group (CBG) 236.40p 3.68%
PPHE Hotel Group Ltd (PPH) 1,280.00p 2.40%
Senior (SNR) 135.20p 2.11%
Schroder Asia Pacific Fund (SDP) 545.00p 1.87%
CMC Markets (CMCX) 312.00p 1.79%
Investec (INVP) 604.50p 1.60%
Indivior (INDV) 695.50p 1.46%
Asia Dragon Trust (DGN) 439.00p 1.39%

FTSE 250 - Fallers

W.A.G Payment Solutions (WPS) 76.60p -4.73%
RHI Magnesita N.V. (DI) (RHIM) 3,100.00p -3.43%
Rathbones Group (RAT) 1,616.00p -2.88%
Wizz Air Holdings (WIZZ) 1,350.00p -2.03%
Target Healthcare Reit Ltd (THRL) 89.00p -1.87%
Clarkson (CKN) 3,455.00p -1.71%
Aston Martin Lagonda Global Holdings (AML) 112.60p -1.57%
BlackRock World Mining Trust (BRWM) 526.00p -1.31%
Carnival (CCL) 1,541.00p -1.03%
PZ Cussons (PZC) 80.20p -0.99%