Rio Tinto misses forecasts with Q1 iron ore production
London open
City sources predict the FTSE 100 will open seven points higher than Monday's close of 7,052.13.
Stocks to watch
Australian iron ore miner Rio Tinto will meet its full-year production targets despite lower than expected iron-ore shipments as a result of poor weather and transport delays. The London-based miner increased output of the metal by 12% in the first three months of the year to reach 74.7m tonnes. That was approximately 10% less than forecast by analysts.
Profits at Associated British Foods fell in the first half as the surging performance of its Primark fast-fashion chain was outweighed by a weaker sugar business. Group revenue rose 1% to £6.25bn and adjusted operating profits were down 5% to £474m, though adjusted earnings per share rose 1%, which was better than the anticipated slight decline.
Smartphone and tablet microchip designer ARM Holdings beat its own guidance with a 14% jump in dollar revenues in the first quarter of 2015, helped by a increase in demand for its technology. The company, which boasts tech titan Apple as its main client, reported revenues of $348.2m, up from $305.2m a year earlier and ahead of its forecast for 10% growth given back in February. Sterling revenues, meanwhile, jumped 22% to £227.5m.
Third-quarter results from Sky generated the most growth in 11 years, it said, as near 70% growth in new customers fed through to a 20% increase in operating profits. Chief executive Jeremy Darroch was particularly excited by the group's performance in developing television drama, with new series Fortitude its most successful drama ever, as well as encouraging success from its Italian and German arms.
In the press
The latest poll by Populus has shown that Labour at 34% are two points ahead of the Conservatives who have dropped a percentage point since last week, the Financial Times said.
HSBC's chairman Douglas Flint has said at a company meeting in Hong Kong that the time may come soon for the bank to review its head office location, The Guardian writes.
Net profit at Swiss banking giant Credit Suisse jumped 23% in the first quarter on the back of a pick-up at its investment bank and lower costs, reports The Wall Street Journal.
US close
US stocks rallied on Monday notching their best one-day gain in three weeks, with investors buoyed by new monetary easing measures from China's central bank and upbeat earnings reports.
The Dow Jones Industrial Average closed up 209 points to 18,034.93, while the S&P 500 and the Nasdaq gained 19 and 65 points respectively.
“[Chinese stimulus] is only likely to provide temporary relief for US stocks which are facing a tough few weeks,” said Oanda’s senior market analyst Craig Erlam.
Over 32% of the S&P 500 companies will publish results during the week, with Microsoft, Apple and Google all set to report.