After a strong start to the week, UK stocks opened flat on Friday shrugging off positive GDP data and taking their lead instead from US stocks which resumed their slide overnight.
According to the Office for National Statistics, UK GDP grew by 6.6% in July compared with June with all sectors showing an improvement.
Source: Office for National Statistics
However, the market mood was soured by another sell-off on the S&P 500 where energy stocks racked up heavy losses and a 2% loss for the Nasdaq 100 index as software stocks and Netflix lost ground.
At 8.30am the FTSE 100 index was flat at 6,001 points as buying of tobacco and food stocks offset selling in banks and oil stocks.
In the oil market Brent crude futures followed US futures lower, dropping below the $40 level, while the gold price continued to consolidate around the $1,940 level.
On the currency markets the pound held steady against the dollar at $1.28 but slipped further against the euro which is seeing growing interest from international investors.
LITTLE CORPORATE NEWS
On a thin day for company news, Rio Tinto (RIO) announced that chief executive Jean-Sebastien Jacques and Chris Salisbury, head of its iron ore unit, are set to leave the mining giant after pressure from investors following the destruction of ancient Aboriginal heritage sites in Australia earlier this year.
The news comes just a week after chairman Simon Thompson said Jacques had the board’s backing. Rio shares gained 0.7% to £48.20.
Specialist emerging markets fund manager Ashmore (ASHM) posted solid full year results for the period to 30 June with net revenues up 5% driven by a 7% increase in net management fees.
Net inflows were flat over the year with positive flows into equity products in each quarter, although total assets under management (AUM) fell 9% to $83.6 billion due to negative performance of $8.1 bn caused by the Covid-related fall in markets in the second half. Shares dipped 0.2% to 391p.
Music royalty firm Hipgnosis Songs Fund (SONG) announced the acquisition of the music catalogue of songwriter and performer Chrissie Hynde, lifting the shares 0.3% to 122.5p.
The news comes immediately on the heels of yesterday’s announcement of the acquisition of Big Deal Music, together with its catalogue of 4,400 songs, and the issue of another 17.6 million Hipgnosis shares.
Further down the market, property franchise firm Belvoir Group (BLV:AIM) revealed that founder and former chairman Mike Goddard would sell 2 million shares or 5.7% of the company’s capital at a price of not less than 150p in an accelerated book-build managed by broker finnCap (FCAP:AIM). Shares fell 4% to 156p.
FOR A LIST OF FTSE RISERS AND FALLERS SEE HERE
