23rd Aug 2018 08:49
LONDON (Alliance News) - Stocks in London were broadly flat early Thursday, as investors monitor trade developments between the US and China and await signals from central bankers, with European Central Bank minutes due later in the day along with the start of the Jackson Hole symposium.CRH was perched atop the FTSE 100, though this was offset but a number of blue-chip stocks going ex-dividend, including Berkeley Group, Imperial Brands and Mondi.The FTSE 100 was flat, just 2.90 points higher at 7,577.14 early Thursday. The mid-cap FTSE 250 was also flat, 5.40 points up at 20,647.90 while the AIM All-Share was up 0.2% at 1,086.64.The Cboe UK 100 was down 0.1% at 12,837.46, the Cboe UK 250 was up 0.1% at 18,747.83, and the Cboe UK Small Companies was flat at 12,339.89.The picture was similar in mainland Europe, with the CAC 40 in Paris and DAX 30 in Frankfurt flat and down 0.1% respectively in early trade.The US on Thursday enacted a new round of tariffs on Chinese products worth USD16 billion, as the trade war between the world's largest economies drags on.The 25% duties affect Chinese goods ranging from drainage pipes to agricultural products and railway wagons.China, in response, imposed its own retaliatory tariffs of equal measure. The 25% Chinese tariffs went into effect at the same time as US duties on the same amount of Chinese products, the Xinhua news agency said.The fresh tariffs come as lower-level trade talks between the US and China continue on Thursday."Given the mid-level composition of trade delegations, a significant breakthrough is seen as unlikely," commented Artjom Hatsaturjants at Accendo Markets.CRH was at the top of the FTSE 100, gaining 3.0% after it said interim revenue and profit rose amid "significant weather disruption", lifting its dividend as a resultInterim revenue grew 1% to EUR11.94 billion as pretax profit climbed 5% to EUR497 million. The company lifted its dividend 2% to 19.60 cents from 19.20 paid a year ago."We have had a good first half despite significant weather disruption in Europe and North America in the first quarter. Construction markets continued to recover and pricing gathered momentum in key European markets while there was solid volume and price growth against a positive economic backdrop in the Americas," said Chief Executive Albert Manifold.Like-for-like sales over the first half of 2018 grew 2%, with Europe up 1%, the Americas up 3% but Asia down 2%."For the second half of the year, despite continuing currency headwinds and challenging conditions in the Philippines, we expect an improvement in the momentum experienced in Europe in the first half of the year and further Ebitda growth in the Americas, which will result in another year of progress for the group," said Manifold.Paper and packaging firm Mondi was 1.1% lower as the stock went ex-dividend, meaning new buyers no longer qualify for the latest payout from the Anglo-South African firm. Housebuilder Berkeley, the worst blue-chip performer as it declined 1.4%, and tobacco firm Imperial Brands, down 1.1%, also went ex-dividend.The biggest gainer in the FTSE 250 was TalkTalk Telcom, up 6.1% after Barclays raised the telecommunications firm to Overweight from Equal Weight.Playtech rose 2.5% as revenue and profit rose over the first six months of the year.The online gaming company said pretax profit rose to EUR124.2 million in the six months to the end of June from EUR91.4 million reported for the same period a year earlier, helped by revenue, which improved by 4% to EUR436.5 million from EUR421.6 million.The company's interim dividend was unchanged at 12.1 cents per share.OneSavings declined 2.0% as interim profit rose, though its net interest margin and common equity tier one ratio declined. Pretax profit rose 17% over the first half of the year to GBP91.8 million with net loan book growth of 11%. Net interest income grew to GBP135.2 million from GBP117.1 million.Net interest margin slipped to 301 basis points from 324bps a year ago with a common equity tier one ratio of 13.3%, again lower than 13.7% last year.The challenger bank bumped up its dividend to 4.3p per share from 3.5p paid a year earlier.In Asia on Thursday, the Japanese Nikkei 225 index closed up 0.2%. In China, the Shanghai Composite closed up 0.4%, while the Hang Seng index in Hong Kong is down 0.5%.In Japanese data, the manufacturing sector continued to expand in August, and at a faster rate, the latest survey from Nikkei revealed.August's PMI score came in at 52.5, up from 52.3 in July and moving further above the 50.0-mark that indicates expansion.Individually, input and output price inflation climbed to multi-year highs, while overall demand improved - although export orders failed to rise for a third straight month.To come in the economic calendar are manufacturing and services PMIs from Germany and the eurozone due at 0830 BST and 0900 BST respectively. At 1230 BST, accounts from the European Central Bank's latest meeting are released.In the US are continuing and initial jobless claims at 1330 BST, while manufacturing and services PMIs are due at 1445 BST. Released late Wednesday, minutes from the US central bank showed an interest rate in September looks likely. The Fed's monetary policy committee suggested that, if economic data continue to stay strong, "it would likely soon be appropriate" to take another step toward raising rates, minutes from the committee's July 31-August 1 meeting showed.Some members showed concern over tariffs, with most saying an escalation in international trade disputes was a "potentially consequential downside risk."The Fed has raised rates twice this year, but, at its last meeting, left its target range of 1.75 to 2% unchanged. Its next meeting is scheduled for September 25-26.Capital Economics said a rate rise next month is now "all but confirmed"."Overall, nothing here to surprise the markets. Attention will now switch to Chair Jerome Powell's Jackson Hole speech this Friday. We expect him to deliver the same message on tightening evident in the minutes. We doubt that President Trump's criticism is going to change anything," said Paul Ashworth, chief US economist at Capital Economics.Jackson Hole, an annual gathering of world central bankers, kicks off on Thursday with the Fed Chair due to speak around 1500 BST on Friday.Related Shares:
CRHTALK.LImperial BrandsPlaytechMondi