(Alliance News) - The FTSE 100 was seen higher on Friday morning, after data from the Office for National Statistics showed retail sales in the UK rose in July.
In early corporate news, GSK welcomed a court ruling in its favour on Thursday evening, which had the effect of excluding expert testimony that ranitidine was a significant risk factor for Wilson's prostate cancer.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called up 0.1% at 8,349.10
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Hang Seng: up 1.7% at 17,405.73
Nikkei 225: closed up 3.6% at 38,062.67
S&P/ASX 200: closed up 1.3% at 7,971.10
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DJIA: closed up 554.67 points, 1.4%, at 40,563.06
S&P 500: closed up 1.6% at 5,543.22
Nasdaq Composite: closed up 2.3% at 17,594.50
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EUR: lower at USD1.0984 (USD1.0988)
GBP: higher at USD1.2880 (USD1.2866)
USD: higher at JPY148.98 (JPY148.89)
GOLD: higher at USD2,456.80 per ounce (USD2,456.75)
OIL (Brent): lower at USD80.70 a barrel (USD81.30)
(changes since previous London equities close)
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ECONOMICS
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Friday's key economic events still to come:
08:15 EDT Canada housing starts
08:30 EDT Canada manufacturing sales
11:00 CEST eurozone trade balance
08:30 CEST Switzerland industrial production
08:30 EDT US building permits
10:00 EDT US Michigan consumer sentiment index
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Retail sales in the UK rose in July, the Office for National Statistics reported Friday. Retail sales volumes are estimated to have climbed 0.5% monthly in July after a decline of 0.9% in June from May. The June estimate was upwardly revised from a previously reported 1.2% fall. On-year, retail sales growth was 1.4% in July, as the ONS noted that comparably poor weather hurt sales in July 2023. "Department stores and sports equipment stores reported a boost following summer discounts and sporting events," the ONS highlighted. Sales volumes were up 1.1% in the three months to July compared to the three months to April.
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The number of UK job postings increased in July although the amount of new listings eased, figures on Friday showed. The Recruitment & Employment Confederation said the number of overall active postings in July was just under 1.8 million, up 2.4% on the number of postings in June, and still above pre-pandemic levels. There were 748,211 new job postings in July, a 3.2% decline from the month before, though the seasonal effect of summer holidays is likely to have played a role in this, the REC suggested. Most UK regions saw an uptick in the number of active job postings as compared to the previous month.
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Joe Biden and Kamala Harris made an upbeat show of unity Thursday as they held their first joint public event since Harris replaced the president as the Democratic Party's candidate in November's election. Biden announced a major deal to reduce medication prices for retirees on social welfare programs. The drug prices deal will reduce costs for retirees on 10 key medicines, including treatments for diabetes, heart failure and blood clots. But the biggest star was Biden's vice president. Harris is set to be crowned as the Democratic nominee at the party convention in Chicago next week. But she made a display of vice presidential deference, delivering only short remarks to introduce Biden and stressing that it has been her honour to serve under the "most extraordinary human being."
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Donald Trump has said that Americans are struggling with massive price hikes that he blamed on Vice President Kamala Harris, looking to saddle his new Democratic rival with the unpopular economic record of President Joe Biden. Trump stuck close to his scripted economic message, reading from a binder in front of him in a news conference at his New Jersey golf club. A day earlier, he struggled to make a sustained case for his economic policies during a meandering speech that his campaign had billed as a major policy address. The event came one day after the Labour Department announced year-over-year inflation had reached its lowest level in more than three years in July — the latest sign that the worst price spike in four decades is fading.
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BROKER RATING CHANGES
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Bank of America raises Aviva price target to 590 (570) pence - 'buy'
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Berenberg cuts OSB Group price target to 580 (660) pence - 'buy'
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Deutsche Bank cuts Accesso Technology price target to 800 (1,000) pence - 'buy'
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COMPANIES - FTSE 100
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GSK welcomed a court ruling in Florida state court that found in the drug makers favour. The London-based company said the court excluded plaintiff's experts' general and specific causation testimony that ranitidine, known as Zantac, was a significant risk for Wilson's prostate cancer. GSK said it welcomed the Daubert's ruling and will now seek dismissal of the upcoming Wilson case in Florida, whereby plaintiffs alleged a causal link between ranitidine and prostate cancer. Zantac was a heartburn drug that was pulled off the market in 2020 at the request of the US Food & Drug Administration, after low levels of a "probable carcinogen" were found in samples. The carcinogen, known as NDMA, is not harmful in very small amounts. However, tests showed that there were excessive quantities of NDMA in ranitidine, otherwise known as Zantac.
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COMPANIES - FTSE 250
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Diversified Energy has completed its acquisition of natural gas properties and related facilities from Crescent Pass Energy for a purchase price of USD106 million. The acquisition net purchase price is USD101 million after customary purchase price adjustments. Chief Executive Officer Rusty Hutson said: "We are excited to announce the completion of another attractively-priced acquisition of Central Region assets which stands to benefit Diversified as a result of our continued growth in scale and density throughout the asset footprint. We are excited to on board our new employees from Crescent Pass and begin the process of efficient integration and deployment of Smarter Asset Management along with our sustainability initiatives across these assets, while adding robust cash flows that further support our business."
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OTHER COMPANIES
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Tungsten West named Jeffery Court as its new chief executive officer, effective no later than November 1. Court is currently employed at Capital Ltd, and is an experienced international mining executive, having worked in the mineral resource sector for over 30 years. More recently, as the CEO Mining of Capital's drilling and mining services business, Jeff has managed the provision of its services to the industry, ranging from exploration, grade control and production drilling to load and haul contract mining.
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By Holly Beveridge, Alliance News senior reporter
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