London open: Strategists sound optimistic note
Markets wavered slightly at the start of trading as investors continued to take stock of Thursday´s much stronger than expected reading on the US economy and what it might mean for the Federal Reserve´s monetary policy.
888 Holdings (DI)
81.60p
16:25 25/04/24
Equity Investment Instruments
11,610.20
16:24 25/04/24
FTSE 250
19,595.98
16:25 25/04/24
FTSE 350
4,433.35
16:25 25/04/24
FTSE All-Share
4,387.01
16:25 25/04/24
FTSE Small Cap
6,414.83
16:25 25/04/24
Industrial Engineering
13,394.35
16:24 25/04/24
Jimmy Choo
230.00p
16:30 30/10/17
John Laing Infrastructure Fund Ltd
142.60p
08:07 28/09/18
Personal Goods
15,892.08
16:24 25/04/24
Rentokil Initial
411.90p
16:25 25/04/24
Rotork
308.40p
16:25 25/04/24
Support Services
10,520.25
16:25 25/04/24
Travel & Leisure
7,558.19
16:24 25/04/24
As of 08:56 the Footsie was 1.66 points higher to 6,193.66 but Germany´s Dax-30 off by 0.95% to 10,219.57. Overnight, the Shanghai Stock Exchange Composite Index finished the session with gains of 4.82% to reach 3,232.35 points.
Echoing the view of other strategies, strategists at Credit Suisse reiterated their “constructive” view on US and European equities as “too much of a slowdown in growth is being priced in” and “the normal pre-conditions for an equity bear market are not in place.
Nonetheless, they did lower their price targets for both the S&P 500 and Euro Stoxx 50.
In parallel, Moody´s cut its forecast for economic growth in the G-20 space next year to 2.8% from 3.1%, reflecting the slowdown in China and the impact of lower commodity prices on producing countries.
Acting as a backdrop, traders were expected to keep an eye out for any remarks coming from the US Federal Reserve´s Jackson Hole Economic Policy Symposium.
Governor Mark Carney is scheduled to participate on a panel on global inflation dynamics on Saturday.
Consumers in the UK were at their most upbeat in August since January 2000 according to consuktancy GfK, thanks to recent low inflation and improved wage growth.
Revised data on second quarter growth in gross domestic product in Britain will be released at 09:30, courtesy of ONS.
Rotork snaps up subsea specialist
Industrial components manufacturer Rotork took advantage of the depressed market environment by acquiring what it described as a leading manufacturer of components for the oil and gas industry. The Bath-based outfit will pay a total consideration of up to £125m for Manchester-based bifold, on a cash-free and debt-free basis, which has expertise in a number of niche sectors such as subsea and wellhead control systems.
888 Holdings reported a 41% drop in first-half pre-tax profit as the company was hit by new taxes, but said it remains confident of achieving its full-year expectations.
John Laing Infrastructure Partners registered a slight drop in its net asset value at the half-year stage but management waxed optimistic on the opportunities for growth and diversification which were now available to the company. In the six months ending on 30 June the company´s net asset value dropped 1.4% to 10.7.8p per share, mainly due to negative exchange rate movements.
Rentokil Initial announced the acquisition of Chicago-based Anderson Pest Solutions for an undisclosed sum. The pest control company said the deal was in line with its strategy of continued acceleration of its pest control business and pursuing acquisition targets in higher growth markets.
Luxury shoe and handbag maker Jimmy Choo posted a significant hike in profit in the first six months of the year, boosted by growth in its retail division. In the six months to 30 June, the London-listed company reported a pre-tax profit of £20.3m, a remarkable rise from the £1.3m it reported at the same time last year, while revenue climbed 6.5% year-on-year to £158.5m.
Market Movers
techMARK 3,050.31 -0.32%
FTSE 100 6,182.70 -0.15%
FTSE 250 16,915.97 -0.04%
FTSE 100 - Risers
Glencore (GLEN) 148.95p +2.48%
BG Group (BG.) 982.50p +2.15%
Royal Dutch Shell 'B' (RDSB) 1,684.00p +1.48%
Royal Dutch Shell 'A' (RDSA) 1,675.00p +1.30%
St James's Place (STJ) 942.00p +1.07%
Standard Chartered (STAN) 764.00p +0.92%
Sky (SKY) 1,048.00p +0.87%
BHP Billiton (BLT) 1,110.50p +0.73%
Ashtead Group (AHT) 944.00p +0.69%
BP (BP.) 353.50p +0.65%
FTSE 100 - Fallers
Antofagasta (ANTO) 603.00p -1.39%
Admiral Group (ADM) 1,521.00p -1.36%
Marks & Spencer Group (MKS) 516.50p -1.34%
Coca-Cola HBC AG (CDI) (CCH) 1,312.00p -1.28%
Morrison (Wm) Supermarkets (MRW) 166.20p -1.13%
Shire Plc (SHP) 4,960.00p -1.10%
SABMiller (SAB) 2,985.50p -1.08%
Tesco (TSCO) 189.40p -1.07%
Next (NXT) 7,850.00p -1.01%
Intertek Group (ITRK) 2,508.00p -0.99%
FTSE 250 - Risers
Marshalls (MSLH) 335.60p +6.03%
Lonmin (LMI) 34.59p +4.72%
Tullow Oil (TLW) 212.80p +4.11%
Dunelm Group (DNLM) 921.00p +2.91%
Pennon Group (PNN) 750.00p +2.67%
Centamin (DI) (CEY) 59.65p +2.67%
Petrofac Ltd. (PFC) 876.00p +2.64%
Zoopla Property Group (WI) (ZPLA) 261.90p +2.63%
Premier Oil (PMO) 104.00p +2.56%
Worldwide Healthcare Trust (WWH) 1,929.00p +2.44%
FTSE 250 - Fallers
Debenhams (DEB) 77.55p -4.85%
Go-Ahead Group (GOG) 2,480.00p -3.84%
PayPoint (PAY) 973.00p -3.18%
Card Factory (CARD) 365.10p -2.38%
Ladbrokes (LAD) 97.90p -2.30%
Wizz Air Holdings (WIZZ) 1,805.00p -2.17%
Restaurant Group (RTN) 665.50p -1.92%
Jimmy Choo (CHOO) 163.50p -1.86%
Betfair Group (BET) 3,175.00p -1.61%
Lookers (LOOK) 160.60p -1.59%