- FTSE 100 0.4% higher in early trading
- Vistry issues profit warning
- US market buoyed by tech stocks
- Crude oil inches above $73
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“The FTSE 100 delivered a positive start to Christmas Eve trading, despite a week clouded by lacklustre economic data. Monday’s session saw the index close slightly lower after opening in the red, as final GDP figures revealed the UK economy stalled in the third quarter with no growth from the prior period and just a 0.9% annual rise. Adding to the wintry chill, second-quarter growth was revised down from 0.5% to 0.4%, stoking concerns about the UK’s slowing momentum heading into the new year.
Vistry’s festive season is anything but merry, with profit guidance sliding down the chimney once again, this time from £300mn to c.£250mn, as delays to year-end transactions failed to make it onto the nice list. This marks the group’s third profit downgrade of the year, a troubling trend driven by a string of poor management decisions and forecasting missteps that have left investors feeling far from jolly. Even a late cash influx in December couldn’t light up the season, with net debt now expected to close the year at around £200m – a far cry from the neutral footing investors had hoped for. As the year ends on a sour note, Vistry faces a long winter of rebuilding trust, leaving investors with little choice but to mull over their options.
The US stock market closed with a mixed bag of results yesterday, but the gift under the tree was a tech-driven rally that lit up the broader market. The S&P 500 climbed 0.7%, carried higher by heavyweights like Meta, Tesla, and Nvidia, while the Nasdaq Composite rose 1% on the back of strong semiconductor and tech sector performance. Meanwhile, the Dow Jones played the role of a cautious elf, inching up just 0.2% after an early stumble.
Brent crude oil futures bounced back above $73 per barrel, shrugging off earlier losses in a thin pre-holiday session as upbeat US economic data sparked optimism for a strong year-end in the world’s largest consumer. Adding fuel to the fire, India’s rising crude imports in November signalled robust demand driven by economic growth and travel, though fears of oversupply next year put a lid on further gains. Broader pressures, including a stronger US dollar and shifting global consumption trends, cast a shadow over the longer-term outlook for oil markets.”
