23rd Apr 2015 06:38
LONDON (Alliance News) - UK stocks are pointed to a flat open Thursday ahead of Markit services, manufacturing and composite Purchasing Managers' Index readings from France, Germany and the eurozone, as another busy day of corporate news gets underway in London.
IG says futures indicate the FTSE 100 will open a touch lower at 7,027.5. The index closed down 0.5% at 7,028.24 on Wednesday, as Tesco posted disastrous full-year results, dragging down other UK supermarkets.
On Wall Street on Wednesday, the DJIA and the S&P 500 both ended up 0.5%, and the Nasdaq Composite closed up 0.4% at 5,035.171, its highest close since 2000.
Asian stock indices are pushing higher Thursday despite weak PMI readings from Japan and China.
The manufacturing sector in Japan slid to contraction in April, the latest survey from Markit Economics revealed, with a PMI score of 49.7. That missed forecasts for 50.8 and it's down from 50.3 in March. It also slips beneath the boom-or-bust line of 50 that separates expansion from contraction.
The manufacturing sector in China continued to contract in April, at an accelerated pace, the latest flash estimate from HSBC showed, with a 12-month low PMI score of 49.2. That was in line with forecasts, and it's down from 49.6 in March.
The Japanese Nikkei closed up 0.3%, pushing onto new 15-year highs. The Hang Seng is up 0.2%, but the Shanghai Composite is flat.
Set-top TV box maker Pace said it had made a good start to its new financial year, in line with its expectations, following its agreement late Wednesday to be acquired by US broadband media technology company Arris Group Inc for GBP1.4 billion in cash and shares.
Under the terms of the deal, shareholders of the FTSE 250-listed company will receive GBP1.325 in cash and 0.1455 of a Arris share for each Pace share, making a total consideration of GBP4.265 per share, a 28% premium to Pace's closing price on Tuesday. Shares in Pace closed at 322 pence on Wednesday.
Media-buying giant WPP said it produced revenue growth of 8.3% in sterling in its first quarter, boosted by the stronger dollar, and it maintained its guidance for the full year, as the company said its performance for the quarter was ahead of budget.
Revenue growth was boosted by the weakness of sterling against the US dollar, although this was partly offset by the strength of sterling against the euro, and at constant currency revenue growth was 7.4%.
Anglo American reported a rise in iron ore, platinum and diamond production in the first quarter as the company reiterated its full-year guidance across all of its segments. The FTSE 100 miner said iron ore production rose at both the Kumba and Minas-Rio mines, with thermal coal, diamond and platinum production also rising, whilst metallurgical coal and nickel production fell year-on-year in the first quarter.
Meggitt reiterated that it expects its organic revenue to rise by low-to-mid-single digits in 2015, after organic revenue grew 4% in the first quarter, and it's also still expecting to get a revenue boost from the rise in the dollar against sterling as well as from its acquisition of Precision Engine Controls Corp.
Housebuilder Taylor Wimpy signalled further growth in profit, saying private reservation rates and average selling prices are continuing to rise, and uncertainty about the outcome of UK election was failing to dent consumer confidence.
Also in the UK corporate calendar, miner Acacia Mining issued first quarter results, and bookmaker William Hill and IT infrastructure services provider Computacenter both released first quarter interim management statements.
In the economic calendar, there are preliminary Markit services, composite and manufacturing Purchasing Managers' Index readings from France at 0800 BST, Germany at 0830 BST, and the eurozone at 0900 BST. US Markit manufacturing PMI is at 1345 BST. There is also UK retail sales and public sector net borrowing at 0930 BST.
By Neil Thakrar; [email protected]; @NeilThakrar1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
TescoAnglo AmericanWMH.LACA.LComputacenterMGGT.LTaylor WimpeyPIC.L