Michele Maatouk WebFG News | 14 Jul, 2017 12:14 | | |
London stocks were nudging lower by midday as investors digested the first in a series of second-quarter earnings from US banking heavyweights, with JPMorgan, Wells Fargo and Citigroup all on the slate on Friday.
The FTSE 100 was down 0.2% to 7,400.72, while the pound was up 0.1% versus the euro at 1.1365 and 0.2% firmer against the dollar at 1.2969.
Accendo Markets analyst Mike van Dulken said: “In focus today will be the start of Q2 earnings season in the US. The big Banks open proceedings via JPMorgan, Wells Fargo and Citigroup, all rallying in recent weeks on expectations of big dividends/buybacks following Fed approval.
“Consensus has been guided lower as per usual, so prepare for consensus/guidance beats. But Wall St still expects a mixed showing amid pressure on trading from very low market volatility, limited deal-making (M&A/IPOs) and slower lending volumes. Are Fed hikes helping net interest margins and profitability? Outlook will likely be key.”
Investors will be hoping that JPMorgan set the tone with its earnings, as both profit and revenue at the bank beat analysts’ estimates.
Meanwhile, on the UK corporate front, Royal Mail retreated as it announced changes to its pension plan, giving its workers a choice between a defined-benefit and a defined-contribution scheme.
International sales, marketing and support services group DCC was a touch weaker as it said first quarter trading was in line with expectations and it expected the full year to produce “profit and growth”.
Electrical and telecoms retailer Dixons Carphone fell after agreeing to sell its entire holdings in The Phone House Spain, along with its related companies Connected World Services Europe and Smarthouse, to Bilbao-based technological services firm Global Dominion Access, it announced on Friday.
Acacia Mining was in the red after it said it will start paying a higher royalty to the Tanzanian government for its production of gold and copper of 6%, up from 4%, after new mining regulations were drawn up following an export dispute.
Emerging markets asset manager Ashmore was on the back foot after reporting a 5% jump in fourth-quarter assets thanks to a positive investment performance and net inflows.
Recruiter Hays was trading flat, giving up earlier gains despite saying it expects full-year profits to be ahead of market forecasts, while Workspace edged up after noting strong customer demand in the first quarter.
Carillion surged as it hired HSBC as its second financial adviser and joint corporate broker with immediate effect, although it also lost a contract.
FTSE 100 - Risers
Tesco (TSCO) 174.55p 1.07%
Standard Life (SL.) 414.90p 0.97%
Shire Plc (SHP) 4,208.00p 0.79%
Rio Tinto (RIO) 3,446.00p 0.76%
Mediclinic International (MDC) 745.50p 0.61%
BHP Billiton (BLT) 1,297.50p 0.58%
Pearson (PSON) 632.50p 0.56%
Antofagasta (ANTO) 856.50p 0.53%
Anglo American (AAL) 1,099.50p 0.50%
International Consolidated Airlines Group SA (CDI) (IAG) 627.00p 0.48%
FTSE 100 - Fallers
Royal Mail (RMG) 400.50p -2.55%
Barratt Developments (BDEV) 590.50p -1.67%
AstraZeneca (AZN) 4,942.00p -1.42%
Convatec Group (CTEC) 295.00p -1.17%
Kingfisher (KGF) 295.30p -1.14%
Persimmon (PSN) 2,373.00p -1.08%
ITV (ITV) 175.40p -1.07%
Admiral Group (ADM) 2,029.00p -1.02%
Associated British Foods (ABF) 2,887.00p -0.96%
Mondi (MNDI) 2,022.00p -0.93%
FTSE 250 - Risers
Carillion (CLLN) 59.15p 6.67%
Derwent London (DLN) 2,719.00p 2.53%
Clarkson (CKN) 2,622.00p 1.63%
IP Group (IPO) 135.40p 1.50%
CLS Holdings (CLI) 202.90p 1.45%
Genus (GNS) 1,753.00p 1.39%
Telecom Plus (TEP) 1,125.00p 1.35%
Great Portland Estates (GPOR) 603.50p 1.34%
Hunting (HTG) 489.10p 1.30%
Renishaw (RSW) 3,920.00p 1.29%
FTSE 250 - Fallers
Sophos Group (SOPH) 446.30p -2.85%
Ashmore Group (ASHM) 340.80p -2.85%
Rank Group (RNK) 222.70p -1.85%
Galliford Try (GFRD) 1,262.00p -1.79%
Redefine International (RDI) 38.93p -1.72%
TalkTalk Telecom Group (TALK) 185.40p -1.64%
Countryside Properties (CSP) 343.60p -1.43%
Dixons Carphone (DC.) 260.80p -1.40%
Acacia Mining (ACA) 278.00p -1.38%
Ascential (ASCL) 322.20p -1.35%
The scandal-hit parent company of high street discount chain Poundland will this week face key creditors and insurers at a meeting that could determine the future of its British retail operations. Poundland is already under intense pressure after Atradius - one of the credit insurers on which suppliers rely to ensure they get paid - reduced its cover for the group. Reliable industry sources say another credit insurer, Euler Hermes, is also considering cutting cover. - The Sunday Times
The top flight index recovered some ground on Friday, but mostly on account of weakness in Sterling after German Chancellor Angela Merkel reportedly echoed other European Union officials, saying "the most difficult phase is ahead of us".
The focus in the coming week will continue to be on the ebb and flow of data out of the US, including Republicans' progress on securing passage of their tax cuts.
Wall Street is heading higher again on Friday amid news that Republicans were tweaking their proposed tax cuts in order to secure prompt passage of the US tax bill.
The chief executive of French planemaker Airbus will step down from his position in 2019 as the company announced a major shake-up of its management team.
London’s FTSE 250 was up 0.1% to 20,023.23 in afternoon trade on Friday as the Christmas lull kicked in.
Industrial production in the States rose slightly less quickly than expected last month, despite higher output of business equipment and materials.
Diversified mineral production and development company Strategic Minerals announced on Friday that, after the successful completion of technical and financial due diligence on the Leigh Creek Copper Mine company, it has agreed to continue with the acquisition on renegotiated terms.
London’s FTSE 100 was up 0.3% to 7,469.23 in quiet afternoon trade on Friday.
International esports entertainment group Gfinity has been named as a preferred event partner to Microsoft for the forthcoming ‘Halo World Championship 2018’ for the next season, it announced on Friday.