20th Sep 2022 12:03
(Alliance News) - Stocks in London traded in the red at midday on Tuesday as interest-rate decisions from a list of major central banks later this week loomed large.
"All the focus this week will be on interest rate decisions in the US and UK and a so-called 'mini budget' from new [UK] chancellor Kwasi Kwarteng on Friday," said Russ Mould, investment director at AJ Bell.
The Bank of England will announce its interest rate decision on Thursday, a day after the US Federal Reserve unveils its own decision. The Bank of Japan and the Swiss National Bank also will announce rate decisions on Thursday.
The FTSE 100 index was down 6.58 points, or 0.1%, at 7,230.10 at midday on Tuesday. The mid-cap FTSE 250 index was down 219.89 points, or 1.2%, at 18,576.89. The AIM All-Share index was down 7.33 points, or 0.9%, at 855.95.
The Cboe UK 100 index was down 0.1% at 722.07. The Cboe 250 was down 1.5% at 15,946.65, and the Cboe Small Companies down 0.3% at 12,659.10.
In the FTSE 100, consumer healthcare firm Haleon was the best blue-chip performer at midday, with shares up 4.0%.
The company reported a strong performance in its first earnings report since its split from GSK in July, noting double-digit revenue growth and a profit rise.
The Surrey-based company reported a pretax profit of GBP864 million in the six months that ended June 30, up 17% from GBP736 million a year ago. Revenue grew by 13% to GBP5.19 billion from GBP4.58 billion.
Looking ahead, Haleon said it is well positioned to deliver on its financial guidance this year, with 2022 revenue growth expected between 6% and 8%
Ocado was down 6.8%, after HSBC cut the online grocer to 'reduce' from 'hold'.
In the FTSE 250, Future was the worst mid-cap performer with shares down 15% at midday.
The magazine publisher confirmed that Chief Executive Zillah Byng-Thorne plans to step down by the end of 2023, less than a week after Trustpilot hired her as its new deputy chair. On Monday, Sky News reported that Byng-Thorne plans to retire from the company in the next 18 months.
Trustpilot shares were up 2.8%.
Moonpig dropped 10% despite the online greeting card and gifting company saying trading to date remains in line with expectations. It explained that average order values have increased year-on-year and margin trends have remained resilient in the absence of pressure from input cost inflation.
Looking ahead, Moonpig said it expects its business to return to pre-Covid seasonality, with 58% to 60% of total revenue for the year is anticipated to arise from the second half. Moonpig's financial year ends April 30.
Tui fell 1.2% despite saying its summer trading is set to close in line with expectations.
In its fourth quarter to September 11, the tour operator's overall summer 2022 programme totalled 12.9 million bookings, up 12% from 11.5 million since its third quarter update on August 10. It said bookings were at 91% of summer 2019 levels.
Looking ahead to the full-year, Tui reiterated its expectation to return to "significant" underlying earnings before interest and tax.
Elsewhere in London, Ethernity Networks soared 37%.
The Israel-based network data processing technology provider said it has signed a follow-on contract with an existing customer worth USD4.6 million. The new contract brings the total value of contracts signed with the unnamed customer to USD7.6 million.
Eve Sleep plummeted 48% as it reported a widened pretax loss and a drop in revenue in the first half of 2022.
The mattress maker explained there has been "no let-up" in the challenging market backdrop in the period, which it says has had a negative impact on demand for big ticket items and homewares.
As a result, its pretax loss widened to GBP4.6 million from a loss of GBP2.3 million the year before while revenue fell 16% to GBP11.6 million from GBP13.9 million.
In mainland Europe, the CAC 40 in Paris was down 0.8%, while the DAX 40 in Frankfurt was down 0.7%.
Sterling was quoted at USD1.1436 midday Tuesday, flat against USD1.1431 at the London equities close on Friday. The euro traded at USD1.0003, down from USD1.0025 late Friday.
Against the yen, the dollar was quoted at JPY143.62, higher versus JPY142.93.
Brent oil was trading at USD91.89 a barrel, down from USD92.24 late Friday. Gold was quoted at USD1,668.18 an ounce, lower than USD1,677.01 on Tuesday.
"The price of the precious metal is weighed down by the strength of the dollar, with investors bracing for the Federal Reserve rate decision due on Wednesday. The Fed is expected to hike rates by at least 75 basis points, with the possibility of a full percentage point increase," explained Ricardo Evangelista, senior analyst at ActivTrades.
Still in the economic calendar for Tuesday, there is Johnson Redbook retail sales index from the US at 1355 BST.
By Heather Rydings; [email protected]
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