London open: FTSE on front foot as oil prices ease

(Sharecast News) - London stocks rose in early trading on Friday, after data from GfK showed a surprise improvement in British consumer sentiment and oil prices came off recent highs.

The FTSE 100 was up 0.37% at 10,719.83 as at 0845 BST, while oil prices were largely flat, with Brent crude trading around $106.34 a barrel and West Texas Intermediate down 1% at $93.62. Oil price gains were on hold as hopes built that US and Iranian negotiators, who are currently meeting in New York, would be able to find a path forward.

Also in the US, China's president was hosted by Trump at a lavish state dinner overnight following a series of talks on a range of issues, including trade and artificial intelligence. A trade truce has been agreed, but only by two months. However, US Treasury Secretary said it would give Washington and Beijing "more time to see what we can do on the economic front". Last year's truce was due to end in November.

Closer to home, and the latest consumer confidence index from GfK, part of the Nuremberg Institute for Market Decisions, came in at -13, up one point on August and the third consecutive month of rises. Economists had expected a slight dip.

Respondents were more confident about their current financial situation and the wider economy, as well as being more optimistic about the coming year. Both the forward-looking personal financial situation and general economic situation sub-indices rose by one point each, to 5 and -22 respectively.

However, the major purchase index dipped one point to -8, while the savings index was up 5 at 27. The savings index is not used to calculate the overall consumer confidence barometer but provides a measure of household's spending intentions.

In corporate news, property developer Harworth Group said it had accepted a sweetened and final 187p-a-share offer from Peel Group, a week after rejecting a bid pitched at 177.5p.

Peel also revealed it had agreed to buy around 72m shares at the higher price, taking its stake beyond 52%.

"While the Harworth Board has confidence in the group's standalone strategy and future potential, the recommendation follows careful consideration of the best and final offer and engagement with Harworth shareholders," Harworth's board said in a statement.

United Utilities provided an update on trading. The blue chip confirmed its financial framework and guidance for 2026/27 remained unchanged, and that it was continuing to target regulatory returns of 10% to 11% in the current framework period. Operational performance was in line with expectations, it added.

Ferrexpo posted a slide in production and revenues, following another "exceptionally difficult" period for the besieged iron ore specialist.

The London-listed, Swiss-headquartered producer of iron ore pellets said total commercial production slumped 54% in the six months to 30 June, 1.556m tonnes, while revenues tumbled 57% to $196m. The underlying loss before interest, tax, depreciation and amortisation was $4m, compared to EBITDA of $4m a year previously.

The company has been rocked by the outbreak of war in Ukraine, where it operates. Attacks by Russia on the country's electricity generation and transmission infrastructure earlier this year forced it to temporarily suspend operations, and only limited production has been able to resume. The Ukrainian tax authorities have withheld VAT refunds, as part of sanctions against shareholder Kostyantyn Zhevago.

Market Movers

FTSE 100 (UKX) 10,722.50 0.40%

FTSE 250 (MCX) 24,260.39 0.44%

techMARK (TASX) 6,157.42 0.35%

FTSE 100 - Risers

Computacenter (CCC) 5,380.00p 2.67%

Smiths Group (SMIN) 2,820.00p 2.36%

Abrdn (ABDN) 245.80p 1.99%

Glencore (GLEN) 558.50p 1.75%

International Consolidated Airlines Group SA (CDI) (IAG) 434.80p 1.59%

Anglo American (AAL) 4,028.00p 1.59%

Autotrader Group (AUTO) 466.80p 1.52%

Barclays (BARC) 463.50p 1.48%

Lloyds Banking Group (LLOY) 108.55p 1.45%

M&G (MNG) 330.00p 1.44%

FTSE 100 - Fallers

Ithaca Energy (ITH) 286.30p -3.21%

BP (BP.) 557.60p -2.52%

British American Tobacco (BATS) 4,203.00p -0.94%

Babcock International Group (BAB) 976.20p -0.87%

Haleon (HLN) 341.50p -0.84%

Tesco (TSCO) 472.80p -0.80%

Unilever (ULVR) 4,661.00p -0.64%

BAE Systems (BA.) 1,980.50p -0.60%

Shell (SHEL) 3,625.00p -0.49%

Convatec Group (CTEC) 210.60p -0.47%

FTSE 250 - Risers

Harworth Group (HWG) 187.00p 4.70%

CVS Group (CVSG) 1,271.00p 4.10%

Hill and Smith (HILS) 3,260.00p 3.49%

Vistry Group (VTY) 267.20p 3.00%

Target Healthcare Reit Ltd (THRL) 116.00p 2.65%

Pan African Resources (PAF) 124.00p 2.56%

WH Smith (SMWH) 368.20p 2.27%

Oxford Instruments (OXIG) 2,936.00p 2.23%

Ashoka India Equity Investment Trust (AIE) 254.50p 1.80%

Renishaw (RSW) 5,695.00p 1.79%

FTSE 250 - Fallers

Raspberry PI Holdings (RPI) 675.25p -10.50%

Harbour Energy (HBR) 273.80p -2.42%

W.A.G Payment Solutions (EWG) 91.00p -2.15%

Baltic Classifieds Group (BCG) 2.07p -1.52%

North American Income Trust (The) (NAIT) 420.00p -1.18%

Mitchells & Butlers (MAB) 270.00p -1.10%

Hays (HAS) 62.70p -1.03%

Energean (ENOG) 741.00p -1.00%

Hikma Pharmaceuticals (HIK) 1,607.00p -0.92%

Genuit Group (GEN) 260.00p -0.84%