19th Feb 2019 16:59
LONDON (Alliance News) - The FTSE 100 spent a second consecutive session in the red on Tuesday with Asia-focused lender HSBC dragging on the index while the pound moved higher as UK Prime Minister Theresa May heads off to Brussels.The FTSE 100 index closed down 40.30 points, or 0.6%, at 7,179.17. The FTSE 250 ended 58.39 points lower, or 0.3%, at 19,068.89, and the AIM All-Share closed down 1.14 points, or 0.1%, at 906.99.The Cboe UK 100 ended down 0.5% at 12188.91, the Cboe UK 250 closed down 0.1% at 16,978.98, and the Cboe Small Companies ended flat at 11,213.28."Brewing Brexit optimism got sterling salivating on Tuesday, a move that pushed the [FTSE 100] from its recent four-month highs," said Spreadex analyst Connor Campbell.He explained: "With a decent foundation based on the day's slightly disappointing but still strong UK jobs report, confirmation that Theresa May will return to Brussels on Wednesday for a no-frills meeting with Jean-Claude Juncker appeared to give the pound the edge as trading went on."The pound was quoted at USD1.3036 at the London equities close Tuesday, compared to USD1.2933 at the close on Monday.Figures from the Office for National Statistics showed UK wage growth and the unemployment rate remained steady in the three months to December.Average weekly earnings including bonuses rose by 3.4% on a year-on-year basis in the October-to-December period, falling slightly short of consensus forecasts of 3.5% but matching the pace reported for the three months to November. The unemployment rate for the October to December period held steady at 4.0%, the lowest since 1975 and matching consensus forecasts. Meanwhile, UK Prime Minister Theresa May will head to Brussels again Wednesday to take a new stab at breaking the Brexit impasse.May will meet with commission President Jean-Claude Juncker at 1730 GMT.Commission spokesman Margaritis Schinas reiterated the long-standing EU position that the divorce deal - which May's cabinet approved but parliament rejected - will not be reopened.But the two sides will continue to hold talks this week, Schinas added, "to see whether a way through can be found that would gain the broadest possible support in the UK parliament and respect the guidelines agreed [by EU member states]."The euro stood at USD1.1331 at the European equities close Tuesday, against USD1.1309 at the same time on Monday.In European equities on Tuesday, the CAC 40 in Paris ended down 0.2%, while the DAX 30 in Frankfurt ended up 0.1%.Stocks in New York were mixed at the London equities close, with the DJIA down 0.1% but the S&P 500 index 0.1% higher and the Nasdaq Composite up 0.2%.Shares in Walmart were up 3.7% in New York after the retailer reported fourth quarter revenue and earnings growth. Fourth quarter total revenue was USD138.8 billion, an increase of 1.9% from last year. Excluding currency, total revenue was USD140.5 billion, an increase of 3.1%. Analysts expected revenue of USD138.65 billion for the quarter.Earnings per share was USD1.27 compared to USD0.73 in the prior year.In commodities, Brent oil was quoted at USD66.09 a barrel at the London equities close Tuesday, soft from USD66.50 late Monday.Gold was quoted at USD1,337.52 an ounce at the London equities close Tuesday, up against USD1,326.35 at the close on Monday.As well as a stronger pound, also limiting the FTSE 100 on Wednesday was HSBC Holdings, as shares in London's second largest-listed company by market value slid 4.3%.In 2018, pretax profit grew 16% to USD19.89 billion from USD17.17 billion the year prior. This was after revenue rose 4.5% to USD53.78 billion from USD51.45 billion the year before.However, profit fell short of market expectations. Analyst consensus saw HSBC achieving pretax profit of USD20.93 billion."These are good results that demonstrate progress against the plan that I outlined in June 2018," HSBC Chief Executive Officer John Flint said nonetheless.Meanwhile, Centrica closed up 1.3% as unit British Gas became the fourth "big six" supplier to announce it is to raise the cost of its standard variable tariff to match Ofgem's price cap.The 10% price hike from April 1 will affect around four million British Gas customers who will see their bills rise to an average GBP1,254 to meet the regulator's latest cap.Ofgem announced on earlier in February that it would increase the price cap for default and standard variable gas and electricity tariffs by GBP117 to GBP1,254 a year from April 1 due to hikes in wholesale costs.British Gas follows E.ON, EDF and npower, who all announced last week that they would be raising their prices to match the cap.Among the FTSE 250 gainers was Greggs, rising 11% as it saw a strong start to its financial year following the launch of its vegan sausage roll.For the seven weeks to February 16, Greggs' sales increased 9.2% year-on-year. On a like-for-like basis, company-managed shop sales rose 9.6%.This "exceptionally strong" start builds on what Greggs said was a good finish to 2018, and has been helped by "extensive" publicity around its vegan sausage roll, which was launched at the start of January.FirstGroup rose 4.3% as it reported a steady year-to-date performance.Year-to-date reported revenue has increased 14%, with constant currency revenue, excluding its South Western Railway franchise, up 5.5%. The company's Road divisions revenue is up 1.9% year-to-date.FirstGroup said its overall trading in the period supports its unchanged outlook for the full year.Cobham shares finished 4.9% higher after the defence firm said it is to take a USD160 million charge following a dispute with US aviation company Boeing.Boeing has been withholding invoice payments for the US KC-46 tanker programme, with Boeing having made damages claims.The two have now signed an agreement, which settles all claims. Cobham will pay GBP86 million to Boeing, and also book GBP74 million of costs of further costs.However, Cobham will offset GBP37 million related to hose and drogue invoices withheld by Boeing, meaning GBP49 million will actually be sent to the aircraft maker.Indivior fell 11% despite reporting positive results from tests of its proposed Sublocade treatment for opioid addiction. Data from the phase three trial showed Sublocade met its primary and key secondary endpoints in both dosages, which showed "clinically and statistically difference in percentage abstinence from opioid use" based on urine samples and self-reporting.Plus500 also finished towards the bottom of the mid-cap index, sinking 11% to add to Monday's 12% fall. Last week, the online trading services provider issued a profit warning for 2019 and revealed drafting errors in its 2016 and 2017 accounts.Since the start of 2019, the stock has fallen 47%.In Wednesday's corporate calendar there are annual results from lender Lloyds Banking Group, miner Glencore, and shopping centre owner Intu Properties, while defence firm Babcock International puts out a trading statement.In the economic calendar on Wednesday, German producer prices are at 0700 GMT while the CBI industrial trends survey for the UK is at 1100 GMT and in the US, the Redbook index is at 1355 GMT. Later, minutes from the Federal Open Market Committee are released at 1900 GMT.
Related Shares:
CobhamHSBC HoldingsGreggsCentricaPlus500FirstgroupIndivior