Pound slips as construction sector contracts for brand spanking new in more than a year

  • Pound retreats into the red from the dollar and euro after IHS Markit’s construction PMI implies that the sphere contracted the very first time in more than a year
  • Sustained stop by new work blamed for that contraction PMI studying fell to 48.1, economists had expected it to stay steady at 51.1
  • FTSE 100 edges lower in to the red BAE Systems retreats most on an agent downgrade while Coca-Cola HBC has fallen after its leader died just days after going for a medical leave of absence
  • Speeches this mid-day from Brexit secretary David Davis and foreign secretary Boris Manley in the Conservative Party conference are points of interest for investors 

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10:38AM

Ryanair’s traffic elevated by 10pc in September despite air travel cancelling a large number of flights

Ryanair leader Michael O’Leary

Crisis-hit Ryanair has stated 98pc of customers influenced by its flight cancellation fiasco in September and October happen to be refunded or transferred onto other flights or transport.

The air travel stated inside a flight traffic update the remaining 2pc of customers affected within the first couple of several weeks of disruption haven’t yet contact the audience.

Ryanair continues to be under heavy fire because it announced recently that 2,100 flights could be cancelled in September and October Up to 50 each day – because of a mistake over pilot holiday rosters.

It delivered an additional blow a week ago if this stated an additional 18,000 flights for that winter months were cancelled – moving which will hit 400,000 customers.

Browse the full report here

10:21AM

Construction PMI reaction: Order books in commerical sector are supporting pretty much

That shock contraction within the construction sector has sent the pound sliding on foreign currency markets today using the pound buying and selling near to its cheapest level because the Bank of England dropped that quite strong hint of mortgage loan rise a couple of days ago.

Global corporates md for construction at Lloyds Bank Commercial Banking Mike Chappell believes that although the studying will jolt the sphere, order books available segment are “really supporting pretty muchInch.

He described:

“The main focus of firms remains on the ‘back to basics’ approach and, particularly, bid discipline.

“In infrastructure, contractors are wishing for more positive news in November’s Budget after this week’s announcement more funding for northern England’s rail network. Despite uncertainty, the United kingdom continues to be overall viewed by overseas funders as the right place to invest their capital.”

Brexit uncertainty following individuals construction figures is weighing around the pound again, based on currency analyst at OFX Hamish Muress.

He stated:

“This contraction within the construction sector wasn’t welcomed through the market, and definitely will not be welcomed through the Brexit negotiating team and individuals in the Conservative Party conference.

“Brexit uncertainty has came back towards the forefront and it is to weighing lower on sterling, like a weak pound increases the price of imported materials.”

9:57AM

Construction PMI reaction: Sector is ‘sliding into recession’

The construction sector is “sliding into recession” and “steeper declines” are most likely ahead, based on Pantheon Macro United kingdom economist Samuel Tombs.

He described: 

“Steeper declines in construction output likely lie ahead, considering that official data reveal that new orders fell by 7.8% quarter-on-quarter in Q2, the greatest drop for 5 years.

“Markit also reported that business optimism fell to the second-cheapest level since April 2013, suggesting the government’s shift to some more accommodating stance in Brexit talks has been doing little to convince builders that clients will sanction delayed projects soon.”

9:50AM

Sustained stop by new work blamed for construction sector contraction

A sustained stop by new work continues to be blamed for that first contraction within the construction sector since August 2016, based on IHS Markit’s construction PMI survey.

The carefully-viewed PMI studying fell to 48.1 in September (any figure below 50 signifies the sector contracted), a clear, crisp drop from August’s 51.1 studying and below economists’ forecasts.

Respondents towards the survey stated that fragile confidence and subdued risk appetite among clients, mainly in the commercial building sector, had related to the reduction in work.

Civil engineering work recorded its sharpest decline since April 2013 while start up business volumes fell for the 3rd consecutive month. Housebuilding was among the couple of bright spots within the data but growth momentum eased to some six-month low with worries over less favourable market conditions coming blamed by IHS Markit.

9:35AM

Pound slips as construction sector contracts for brand spanking new in more than a year

The construction sector contracted the very first time in more than a year in September, based on IHS Markit’s PMI studying, far below economists’ predictions.

The pound has tucked back to negative territory from the dollar following a release, buying and selling .1pc lower at $1.3254. More to follow along with…

9:27AM

Plumbing and heating products giant Ferguson jumps to surface of FTSE 100 after boosting shareholder returns

Greggs shares nudged up after it reported on the robust third quarter

Only a few corporate releases for investors to munch over this morning so let us possess a quick run-through.

Plumbing and heating products giant Ferguson has leaped to the top FTSE 100, rising 3.5pc, after it hiked its dividend and launched a £500m share buyback following strong figures in the US business.

LCG mind of research Jasper Lawler described the business’s acceleration:

“Its new name and new US-focus seem to be doing the secret. The switch from slower European markets, together with a “pretty weak” United kingdom division towards the US where business confidence is around the rising boosted full-year pre-tax profits by 75%.

“Ferguson now appears like a great play within United kingdom equities on Trump’s guaranteed US infrastructure spending.”

Meanwhile, shares in loaves of bread chain Greggs have nudged up following a robust third quarter while Revolution Bars’ pre-tax profit fall this morning is just a sideshow to Stonegate and Deltic’s takeover fight for the the bars operator.

9:02AM

Construction PMI likely to remain steady

Construction PMI information is due at 9.30am

Construction PMI information is the primary financial aspects highlight within the UK this morning and economists expect the reading to remain steady at 51.1 after sliding for 3 consecutive months (a score above 50 signifies the sector is expanding).

The sphere continues to be among the economy’s soft spots in recent several weeks and also the “weakness might help explain the weekend announcement of the extension of Assistance to Buy”, argues CMC Markets analyst Michael Hewson. 

The information due at the end from the hour could provide another headache for that pound, based on Spreadex analyst Connor Campbell.

He stated:

“Analysts are forecasting the PMI will stay in the 51.1 it suddenly tucked to in August.

“Worryingly, that figure has already been low enough that another drop would see the construction sector teetering around the fringe of contraction – no question the FTSE and pound feel tentative.”

Eurozone producer cost inflation figures and also the Bank of England’s FPC meeting minutes would be the only other releases of note today.

8:37AM

Agenda: Pound claws background in front of construction data and key Tory speeches

Brexit secretary David Davis may be the next key Tory cabinet member to talk in the party’s conference

Amind of construction sector data and speeches from Brexit secretary David Davis and foreign secretary Boris Manley in the Conservative Party conference, the pound has clawed back a few of the ground lost in yesterday’s plunge.

While the significance of the development PMI due at 9.30am is dwarfed by yesterday’s manufacturing and tomorrow’s services PMI readings, the figure will prove to add more clearness towards the patchy picture data continues to be building of the UK economy.

Despite yesterday’s manufacturing studying showing an industry still enjoying robust growth, the slight slowdown put into the slew of things, including chancellor Philip Hammond’s speech in the Conservative Party conference, dragging lower the pound to the cheapest level since Mark Carney and also the Bank of England’s Financial Policy Committee dropped that quite strong hint of mortgage loan hike in November’s meeting. 

Business leaders blasted Mr Hammond’s speech for missing practical solutions as a result of the left’s critique of capitalism and the two speeches from supposed would-be prime ministers are the following in the conference to check the pound, that is buying and selling .1pc greater from the dollar today at $1.3286.

European stocks took their cue from the strong begin to the ultimate quarter of the season in america using the Dow jones Johnson hitting a brand new all-time high overnight.

The IBEX 35 has rebounded from yesterday’s sell-off in Madrid as a result of the chaos in Catalonia as the FTSE 100 has nudged lower in to the red with Coca-Cola HBC falling 2.8pc after its leader Dimitris Lois died just days after going for a medical leave of absence.

Full-year results: Revolution Bars Group, St Ives, Ferguson, Blancco Technology Group

Buying and selling statement: Greggs, Electrocomponents

AGM: Hargreaves Services

Financial aspects: Construction PMI (United kingdom), PPI (EU)