Market overview: Admiral leads gains as market edges higher
1630: Stocks edged higher, with gains on the top flight index led by Admiral on the heels of favourable data out of AA. GlaxoSmithKline also outperformed following its latest quarterly figures. Grocers did worst ahead of tomorrow's results from Tesco. As expected the MPC kept Bank Rate unchanged at its 8 October meeting by a majority of 7 votes to 2, the minutes from that gathering revealed, although the tone of the minuets was distinctly more dovish. FTSE 100 up 27 to 6,400.
Admiral Group
2,710.00p
17:05 18/04/24
esure Group
279.60p
17:00 18/12/18
FTSE 100
7,877.05
17:14 18/04/24
GSK
1,583.50p
16:40 18/04/24
Tesco
282.70p
17:05 18/04/24
Whitbread
3,085.00p
17:04 18/04/24
1500: Admiral shares are moving higher after holding technical support at 1,200p. Nearest resistance comes in at 1,300p
1443: Shares of Whitbread are holding higher after analysts at Charles Stanley reiterated their recommendation to 'accumulate'. They tell clients that "longer term, we see significant potential for expansion of the Premier Inn and Costa businesses in both the UK and overseas." Grocers' shares are weak going into Tesco's interims tomorrow. Car insurers are doing best led by gains in Esure after premiums rose for the first time since 2012 according to AA data. .
1404: Tesco most-bought UK share by TD Direct clients in three of past four weeks.
1330: US consumer prices remained unchanged in September at a 1.7% year-on-year rate of change, according to the latest figures available from the Bureau of Labour Statistics.
1307: The bounce in shares of GSK following its latest results was broken by the 50-day moving average at 1,513p.
1200: British pharmaceuticals firm GlaxoSmithKline reported a 1% drop in core operating profits in the three months to September, to reach £1.9bn at constant exchange rates (CER). That came on the back of a 3% CER drop in third quarter sales to £5.65bn. Including fluctuations in the exchange rate then revenues were 10% lower. Analysts had been expecting the firm to deliver sales of £5.74bn for the three months to 30 September, down from £6.51bn in the third quarter of 2013. The consensus forecast was for core operating profits of £1.71bn, compared with £2.06bn a year earlier.
1159: As expected the “broader tone” of today’s MPC minutes was more dovish, economists at Bank of America Merrill Lynch told clients in a research note released early on Wednesday afternoon. Nevertheless, they go on to say that the reaction in the sterling exchange rate is an over-reaction in their view, given that the outlook for policy had already been aggressively re-priced by markets
1121: Traders are expectant ahead of Glaxosmithkline's latest quarterly results which are expected out at 12:00. The drugmaker is expected to deliver sales of £5.74bn in the three months to 30 September, down from £6.51bn in the third quarter of 2013. The consensus forecast is for core operating profit is £1.71bn, compared with £2.06bn a year earlier. Acting as a backdrop, reports indicate that the European Commission may decide as soon as today on whether France and Italy's budget plans adhere to EU rules.
1119: Metro Bank saw deposits increase by 146% to reach £1.39bn.
1055: Oil production in Russia may fall by 25m-70m tonnes by 2017, according to oligarch Leonid Fedun, deputy chief executive officer of Russian oil giant Lukoil, as cited by Interfax.
0935: The MPC minutes seem to emphasise the lack of inflationary pressures in the British economy. The most important passage seems to be the following: “While it was appropriate for policy to look through the near-term effects of lower import prices on CPI inflation when indicators of cost and price pressures remained consistent with inflation returning to the target in the medium term, CPI inflation had fallen relative to an already weak outlook.”
0930: At its meeting on 7 and 8 October the Monetary Policy Committee (MPC) decided to maintain its main policy settings unchanged by a vote of 7 to 2, as expected.
0835: UK stocks have begun the day moving slightly lower despite the sharp gains seen overnight on Wall Street and in shares of Yahoo after the company released its latest results. Asian equities finished on a mixed note this morning, with the Nikkei notching up another near 3% gain but Shanghai stocks lower. Traders are expectant ahead of this morning’s MPC meeting and US CPI data due out later today. To take note of, the ECB’s Coene this morning confirmed to the Belgian press there are no “concrete plans” for Eurozone corporate bond purchases. FSTE 100 down 13 points to 6,359.