London pre-open: UK stocks set for modest dip early on
Banks
3,981.20
17:14 22/04/24
BG Group
n/a
n/a
FTSE 100
8,023.87
17:09 22/04/24
FTSE 350
4,408.19
17:14 22/04/24
FTSE All-Share
4,362.60
16:44 22/04/24
NATWEST GROUP
279.70p
17:05 22/04/24
Oil & Gas Producers
9,641.86
17:14 22/04/24
London's stocks are expected to slide slightly lower at Wednesday's opening bell following strong gains the previous day.
City sources predict the FTSE 100 will open around nine points lower than Tuesday's close of 6,822.76, ignoring the strong performance seen in both Asia and the US overnight, which saw the S&P 500 closing above 2,000 points for the first time ever thanks to better-than-expected consumer confidence data.
Senior CMC Markets analyst, Michael Hewson, said: "We saw another positive session for European stock markets yesterday with a strong finish for the FTSE 100, while German and French markets also posted gains for the second day in a row, putting aside political concerns about the prospects for a new French government, as well as rising tensions between Ukraine and Russia, after Ukrainian forces captured several Russian paratroopers who had 'accidentally' strayed across the border, and in the process proving once and for all that Russia continues to disregard its neighbour's territorial integrity."
Meanwhile, a "long-term" truce was on Tuesday night called between Israel and Hamas in a deal brokered by Egypt, although with firing continuing right up until, and according to some reports even after the agreement, there remains a level of uncertainty as to whether the ceasefire will hold.
In UK company news, RBS has been fined £14.5m by the Financial Conduct Authority after giving unsuitable advice to mortgage customers.
Gas explorer and producer BG Group has taken a step forward in developing a new liquefied natural gas (LNG) project in Tanzania. BG said results from tests on its Mzia find off the coast of the southern African country further bolstered the case for a new onshore LNG scheme in the area.
Specialist engineering services group James Fisher reported an 8% rise in first half revenue, which helped to lift underlying pre-tax profit by 13% to £21.9m, despite the adverse affects of currency movements. That came as the group's subsidiary, Divex, won a contract to supply a saturation diving system for the BP Exploration Shah Deniz II project in the Caspian Sea.
Builders merchant Grafton almost doubled earnings in the first half of the year as the recovery in UK and Ireland became more broadly based, but it expects the second half to slow against strong numbers the year before. Chief executive Gavin Slark hailed the "milestone" of lifting operating margins to 5%, saying this was a key point in the company's "journey from recovery to growth".
NR