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(Alliance News) - Stocks were called lower on Friday, while preliminary economic data showed the UK narrowly avoided a winter recession.
The UK economy flatlined in the final quarter of 2022, avoiding a technical recession, which is defined as two consecutive quarters of contracton.
According to a first estimate from the Office for National Statistics, gross domestic product saw no growth in the fourth quarter from the third. This follows a revised contraction of 0.2% in the third quarter from the second.
In December, GDP fell 0.5%, having grown by 0.1% in November.
On an annual basis, GDP rose by 0.4% in the fourth quarter, slowing from a 1.9% increase in the third.
In 2022 as a whole, GDP is estimated to have increased by 4.0%, slowing markedly from the 7.6% increase in 2021.
Separately, the ONS confirmed the value of goods imports rose 2.9% or by GBP1.6 billion in December, or just 1.5% when accounting for the effect of inflation.
The fourth quarter total trade in goods and services deficit - excluding precious metals - widened by GBP2.4 billion to GBP26.8 billion. The deficit was driven by lower exports of goods and services, ONS said.
On an annual basis, the annual trade in goods and services balances - excluding precious metals - widened by GBP85.3 billion to a GBP108.0 billion deficit in 2022 from the year before. This was driven by import values, which increased 33%.
In early UK corporate news, First Abu Dhabi denied reports it was considered an offer for Standard Chartered, while Saga confirmed it is exclusive discussions for the sale of its insurance underwriting business.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called down 23.0 points, 0.3%, at 7,888.15
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Hang Seng: down 1.9% at 21,222.49
Nikkei 225: closed up 0.3% at 27,670.98
S&P/ASX 200: closed down 0.8% at 7,431.90
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DJIA: closed down 249.13 points, 0.7%, at 33,699.88
S&P 500: closed down 0.9% at 4,081.50
Nasdaq Composite: closed down 1.0% at 11,789.58
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EUR: down at USD1.0726 (USD1.0750)
GBP: down at USD1.2106 (USD1.2154)
USD: up at JPY131.56 (JPY131.10)
Gold: down at USD1,858.80 per ounce (USD1,873.46)
Oil (Brent): up at USD84.39 a barrel (USD83.73)
(changes since previous London equities close)
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ECONOMICS
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Friday's key economic events still to come:
14:00 GMT UK BoE Chief Economist Huw Pill speaks
10:00 EST US University of Michigan survey of consumers
US Federal Reserve Governor Christopher Waller and Fed Philadelphia President Patrick Harker speak
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Sales of used cars declined by 8.5% in the UK last year, new figures showed. The Society of Motor Manufacturers & Traders said just 6.9 million vehicles changed hands in 2022, down from 7.5 million during the previous 12 months. The industry body said a squeeze on the supply of new cars restricted the amount of stock entering the second-hand market. Used battery electric cars bucked the trend, with a record 71,071 sold in 2022. Overall transactions increased by 0.8% in December compared with the same month in 2021. This was the first monthly rise since February 2022, reflecting the recent growth seen in the new car market.
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The UK prime minister is set to announce that a second Global Investment Summit will take place in the autumn. Rishi Sunak is expected to tell global investors that the October summit is a chance for the UK government to deliver on "our ambition to be a world-leading destination for international finance and investment". More than 200 of the world's highest-profile investors, chief executives and financiers will be invited to come to the UK for the gathering, the Department for Business & Trade said.
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BROKER RATING CHANGES
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Stifel cuts InterContinental Hotels to 'hold' - price target 6,000 pence
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HSBC cuts abrdn to 'reduce' - price target 185 pence
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Morgan Stanley cuts Shell to 'underweight' (equal-weight) - price target 2,625 (2,767) pence
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COMPANIES - FTSE 100
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Following a report by Bloomberg on Thursday that a potential takeover offer is still in play for lender Standard Chartered, First Abu Dhabi Bank reaffirmed it was not considering a potential takeover bid for the Asia-focused lender. The Bloomberg report had driven up Standard Chartered shares by 11% on Thursday. "First Abu Dhabi Bank PJSC announced on 5 January 2023 that it had previously been at the very early stages of evaluating a possible offer for Standard Chartered PLC, but was no longer doing so," it said on Friday, adding it "re-iterates that it is not evaluating a possible offer for Standard Chartered".
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A group of investors with combined assets of more than USD1.5 trillion, or GBP1.23 trillion, have written to five of Europe's biggest banks, including Barclays, urging them to stop lending to fossil fuel firms. Responsible investment group ShareAction coordinated the letters which have been backed by up to 30 investors. They ask one or more of the banks to stop directly financing new oil and gas fields by the end of this year. British bank Barclays, and European banking giants BNP Paribas, Credit Agricole, Deutsche Bank and Societe Generale, all received letters expressing concern that funding fossil fuel projects could jeopardise the global path to net zero.
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COMPANIES - FTSE 250
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Online clothing retailer Asos has hired Sean Glithero as interim chief financial officer, replacing Katy Mecklenburgh from May. He has already joined the firm to facilitate a "thorough" handover. Glithero has led "large finance functions" at firms including Auto Trader Group, Funding Circle and Matches Fashion. Asos said it has filled 75% of the 12-person new leadership team announced back in October.
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OTHER COMPANIES
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Saga confirmed it is in exclusive discussions with Australia's Open Insurance Technologies about a potential sale of Acromas Insurance, the underwriter of Saga's wider insurance business. Sky News had reported that Open is raising capital to fund the potential deal. Late last month, Saga confirmed it was seeking buyers for the underwriting business, confirming a report by the Sunday Times.
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By Elizabeth Winter, Alliance News senior markets reporter
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