FTSE 100 higher despite weak retail sales, Asian stocks slide as Alibaba ditches cloud spin-off, London Stock Exchange Group underwhelms and new boss for Marston’s

“The FTSE 100 shrugged off a weak showing for Asian shares overnight and softer than expected UK retail sales to trade firmly higher on Friday, shaking off the ennui it had shown on Thursday in the wake of Wednesday’s exuberance,” says AJ Bell Investment Director Russ Mould.

“The index was hurt by its big exposure to oil and gas yesterday as a big build in US inventories caused crude prices to plunge. The upside of this scenario is it further reduces inflationary pressures and underscores the idea that the rate hiking cycle has peaked.

“What’s helped in this regard is that Federal Reserve officials, while not exactly getting out the garlands and bunting and announcing a victory parade in the battle against inflation, are not really pushing back against the peak rates narrative either.”

Alibaba

“Hong Kong was dragged lower by a big fall in index heavyweight Alibaba as it ditched plans to spin-off its cloud computing arm, citing restrictions on US chip exports as a factor.

“As well as any disappointment at the company rowing back on its plan, the reasoning underlines the difficult position Alibaba occupies given it is listed in both New York and Hong Kong at a time when US-China relations are fraught.”

London Stock Exchange Group

“The market appeared to be underwhelmed at the new targets for shareholder returns which emerged during a two-day investor event at London Stock Exchange Group.

“Despite talk of a step-up in revenue thanks to its tie-up with Microsoft and news of a £1 billion share buyback, the exchange operator and index provider got the cold shoulder from investors.”

Marston's

“The immediate departure of a chief executive is never a good look, particularly one who has only been in the role for two years as we’ve just seen with Marston's. It suggests the board of directors want someone more dynamic and there is no point waiting around for the outgoing person to serve their notice period.

“Chief executive Andrew Andrea has been with Marston’s since 2002, mostly in finance-related roles. He is being replaced by Justin Platt from theme park operator Merlin Entertainments so one might expect more innovative ideas to get people through the doors of Marston’s pubs for a drink and a meal.

“What’s interesting in this situation is how we’re not seeing a CEO leave because of fundamental problems in the business. Marston’s has been trading well and Mr Andrea has steered the group through a tough period following the pandemic. Marston’s has always been a ‘steady as she goes’ type of business, so to bring in someone from outside of the pubs sector to run it implies a shift in thinking.”

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