21st Aug 2024 07:45
(Alliance News) - Stocks in London are called to open higher, as investors await minutes from the imminent meeting of the US Fed's Federal Open Market Committee.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called up 0.1% at 8,280.40
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Hang Seng: down 1.0% at 17,339.47
Nikkei 225: closed down 0.3% at 37,951.80
S&P/ASX 200: closed up 0.2% at 8,010.50
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DJIA: closed down 61.56 points, 0.2%, at 40,834.97
S&P 500: closed down 0.2% at 5,597.12
Nasdaq Composite: closed down 0.3% at 17,816.94
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EUR: higher at USD1.1118 (USD1.1105)
GBP: higher at USD1.3025 (USD1.3020)
USD: lower at JPY145.63 (JPY145.67)
GOLD: higher at USD2,515.30 per ounce (USD2,512.24)
OIL (Brent): lower at USD77.03 a barrel (USD77.41)
(changes since previous London equities close)
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ECONOMICS
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Wednesday's key economic events still to come:
10:30 EDT US EIA crude oil stocks
14:00 EDT US FOMC meeting minutes
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Japan's trade deficit ballooned in July, compared to a year before, data published by the Ministry of Finance showed Wednesday. The country's trade deficit increased to JPY612.84 billion, about USD4.27 billion, in July from JPY61.33 billion a year prior. That is sharper than the increase to JPY330.7 billion that had been expected by FXStreet-cited market consensus and represents is a swing from a trade surplus of JPY223.99 billion the ministry had reported for June. Exports increased 10% to JPY9.619 trillion in July from JPY8.724 trillion a year ago, while imports rose 17% to JPY10.241 trillion from JPY8.785 trillion. Notably, exports to China were up 7.2% on-year to JPY1.655 trillion, while imports from China jumped 21% to JPY2.294 trillion.
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BROKER RATING CHANGES
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Jefferies raises Victrex to 'hold' (underperform) - price target 1,100 (1,150) pence
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COMPANIES - FTSE 100
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The UK Competition & Markets Authority said it will consider undertakings offered regarding Barratt's takeover of Redrow, as the deal nears completion. "The CMA considers that there are reasonable grounds for believing that the undertakings offered by the parties, or a modified version of them, might be accepted by the CMA to remedy the substantial lessening of competition identified by the CMA," the watchdog said. The CMA has until October 18 to decide whether to accept the undertakings, with the possibility to extend this time frame to December 13 if it considers there are special reasons for doing so. In August, the UK watchdog said Barratt's planned acquisition of fellow housebuilder Redrow raises competition concerns in one local area. They said it has found concerns about the Redrow merger in the area around a Barratt project in Whitchurch. Barratt in February agreed an all-share takeover offer for its smaller peer Redrow, valuing the latter at GBP2.52 billion.
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COMPANIES - FTSE 250
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Temple Bar Investment Trust reported that at June 30 its NAV per share fair value 280.1p, up from 236.8p a year earlier. Its NAV total return fair value was 13%, up from 3.4% and better than the FTSE All-Share index which had a return of 7.4%. "NatWest and Barclays continue to benefit from the recent pick up in net interest margins (itself a function of rising interest rates) and a benign loan loss cycle and both reported a strong set of results in February," the firm said. Temple Bar announced that it will pay out an interim dividend per share of 5.00p, versus 4.60p a year earlier. "The UK stock market enjoyed a positive first half of the year, supported by an increase in M&A activity and in companies buying back their own shares; both a reflection of the perceived value offered by current valuation levels," said Chair Richard Wyatt. "With the election of a new government in a landslide result, the UK offers the increasingly rare attraction of political stability. Combined with the continued appealing valuations offered by UK equities, particularly when compared with the valuations seen in certain overseas markets and sectors, the outlook for UK equities is positive."
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OTHER COMPANIES
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A Just Eat Takeaway.com advertisement on Meta Platforms's Facebook featuring McDonald's burgers has been banned in the UK for failing to take enough care to ensure the promotion was not aimed at children aged under 16. The Advertising Standards Authority said that anti-junk food youth campaign group Bite Back 2030 had complained in December last year about the ad, claiming that it promoted products high in fat, salt or sugar to under-16s through the social media platform that it appeared on. The paid-for Facebook ad said: "Fancy a McMuffin in the morning? McNugget for lunch? Or a big night in with a Big Mac? Get them delivered right here." It also had a changing image of McNuggets that was replaced by the Just Eat and McDonald's logos. The ASA said that food delivery firm Just Eat understood that the meat versions of the Big Mac and McMuffin were products deemed to be high in fat, salt or sugar – products for which there are strict rules regarding marketing to under 16s.
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Watkin Jones said that market activity through the summer has been slower than anticipated, principally due to the continued uncertainty over the pace of interest rate cuts. Based on this it now believes that it is unlikely that it will close any further transactions before the financial year end on September 30. It warned that the lower number of transactions in financial 2024 will have a consequential impact on results in financial 2025. "While the pace of recovery in our markets has been slower than expected, the UK interest rate cut in August 2024, together with forecast future cuts, should contribute to improved forward fund liquidity," Watkin Jones added.
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Mobico Group reported that revenue in the first six months of 2024 rose 5.4% to GBP1.65 billion from GBP1.57 billion a year earlier. Its pretax loss narrowed to GBP4.1 million from GBP51.9 million. Mobico cut its interim dividend, deciding against paying out one, following an interim dividend of 1.7p a year earlier. Looking ahead, Mobico left full year guidance unchanged. Chief Executive Ignacio Garat said: "Mobico has delivered a good performance in the first half of 2024, with continuing positive passenger demand and revenue growth. ALSA has delivered record H1 results, underpinning the overall growth of the group. We have retained, won and successfully mobilised significant new business across different parts of the group and our cost-reduction initiatives have delivered savings slightly eariler than expected."
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By Sophie Rose, Alliance News senior reporter
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