LONDON BRIEFING: UK retail sales beat forecasts with 0.7% jump …

(Alliance News) - Stocks in London are expected to edge up at Friday's open, after better-than-expected retail sales data. The Office for National Statistics said retail sales fell 1.0% annually in June, compared to a revised 2.3% decline in May. The market had been expecting a 1.5% fall, according to FXStreet-cited consensus.

From the previous month, sales rose 0.7% in June, picking up speed from a downwardly revised 0.1% rise in May. June's reading topped market consensus, which had forecast a 0.2% rise. It paints something of a mixed picture of the retail climate in the UK, with GfK's survey data on Friday also pointing to a sudden decline in consumer confidence in June.

In early company news, Glencore backed its annual guidance as it reported on first-half production. THG announced it has exited from its OnDemand and ProBikeKit divisions. Here is what you need to know at the London market open:

---------- MARKETS ----------

FTSE 100: called up 1.2 points at 7,647.25 ---------- Hang Seng: up 0.5% at 19,028.54

Nikkei 225: closed down 0.6% at 32,304.25 S&P/ASX 200: closed down 0.2% at 7,313.90 ----------

DJIA: closed up 163.97 points, 0.5%, at 35,225.18 S&P 500: closed down 0.7% at 4,534.87 Nasdaq Composite: closed down 2.1% at 14,063.31

---------- EUR: down at USD1.1138 (USD1.1144) GBP: up at USD1.2876 (USD1.2851)

USD: down at JPY140.27 (JPY140.31) Gold: flat at USD1,969.13 per ounce (USD1,969.54) Oil (Brent): up at USD80.30 a barrel (USD79.33)

(changes since previous London equities close) ---------- ECONOMICS

---------- Friday's key economic events still to come:

11:00 IST Ireland WPI ----------

UK Prime Minister Rishi Sunak has suffered a double by-election defeat in safe Tory seats, with Labour and the Liberal Democrats both overturning majorities of about 20,000. Labour won Selby and Ainsty and the Lib Dems took Somerton and Frome on sizeable swings which will leave many Tory MPs looking nervously at their own majorities. But the Tory leader was spared the prospect of being the first prime minister since 1968 to lose three by-elections on the same day as Labour failed to secure victory in Boris Johnson's former seat of Uxbridge and South Ruislip.

---------- UK consumer confidence has suffered a sudden collapse as "reality bites" amid relentless inflation and rising interest rates, according to a long-running survey. GfK's Consumer Confidence Index plunged six points in July to minus 30, with concerns for personal finances and the wider UK economy over the coming year down six and eight points respectively.

However the forecast for personal finances over the next 12 months is still 19 points higher than this time last year, while expectations for the general economy remain 24 points better than last July. ---------- Industrial action on the railways has cost UK railways around GBP620 million over the past year, new figures suggest, as passengers suffered fresh travel misery because of a strike.

Members of the Rail, Maritime & Transport union staged a walkout on Thursday in their long-running dispute over pay, jobs and conditions. Further strikes will be held on Saturday and on July 29, while services were also being disrupted because of a ban on overtime by train drivers in the Aslef union. The Rail Delivery Group said that since the first RMT strike in June 2022, industrial action had cost the sector around GBP620 million.

---------- UK Prime Minister Rishi Sunak has criticised the EU's "regrettable choice of words" after it appeared to have endorsed the name Argentina uses for the Falkland Islands. A diplomatic row erupted after the EU referred to the islands as "Islas Malvinas" in a declaration jointly signed with Argentina and other Latin American countries.

Downing Street said any suggestion that the EU would recognise Argentina's claims on the Falklands would have been "entirely unacceptable", as it welcomed a subsequent clarification that EU countries have not in fact changed their position on their status. ---------- BROKER RATING CHANGES

---------- Barclays raises Next price target to 8,000 (7,200) pence - 'overweight' ----------

Barclays starts Treatt with 'overweight' - price target 750 pence ---------- Jefferies raises Hargreaves Lansdown to 'buy' (underperform) - price target 1,015 (800) pence

---------- COMPANIES - FTSE 100 ----------

Glencore reiterated annual production guidance after updating on the first half of the year. Its key copper, coal and zinc assets performed in line with expectations and guidance over the period, the miner said. Meanwhile, it tweaked second half volume weightings in copper, zinc and nickel, to reflect higher expected production volumes from Collahuasi, Kazzinc, Mount Isa and INO.

The volatility in the Marketing segment seen over 2022 has steadily normalised in recent months. While "clearly impact profitability", this has allowed for the release of some of the investment made in non-Responsible Minerals Initiative marketing working capital from 2022, it said. "We continue to expect a full year 2023 adjusted [earnings before interest and tax] outcome above the top end of our USD2.2-3.2 billion per annum long-term guidance range, likely in the USD3.5-4.0 billion range," said CEO Gary Nagle. ----------

COMPANIES - FTSE 250 ---------- Liontrust Asset Management affirmed that its proposed offer for GAM Holdings is a "full and final" offer, and "will not be increased".

In May, Liontrust said it conditionally has agreed to buy the Zurich-listed firm in an all-share deal valuing the Swiss peer at CHF107 million, or GBP96 million. ---------- OTHER COMPANIES

---------- Following a strategic review, online e-commerce firm THG said it has sold off the trade and assets of its OnDemand division to a Newco led by OnDemand's management team, with funding from advisory and investment firm Gordon Brothers. It also sold off its specialist provider of cycling equipment 'ProBikeKite' to Frasers Group in the second quarter.

The combined consideration for both transactions is around GBP4 million, THG said. ---------- By Elizabeth Winter, Alliance News senior markets reporter

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