1st Oct 2018 08:44
LONDON (Alliance News) - London stocks were mixed early Monday, with a profit warning from Ryanair leading to bumpy trade for FTSE 100-listed airline stocks easyJet and International Consolidated Airlines.In focus in the UK on Monday is September's manufacturing Purchasing Managers' Index, which is expected to decline slightly from August.The FTSE 100 was down 0.1%, or 8.30 points, at 7,501.90. The FTSE 250 was up 0.3%, or 51.86 points, at 20,358.90 while the AIM All-Share was up 0.1% at 1,099.55.The Cboe UK 100 was down 0.3% at 12,723.19. The Cboe UK 250 was up 0.1% at 18,456.53 and the Cboe UK Small Companies down 0.1% at 12,133.50.Over in mainland Europe, the CAC 40 in Paris and DAX 30 in Frankfurt were up 0.1% and 0.3% higher respectively. Sinking 7.7% in early trade was Ryanair after cutting its annual profit guidance by 12% due to higher oil prices and strikes.Profit guidance for its current financial year ending March 31, 2019, was lowered to a range of EUR1.10 billion to EUR1.20 billion, from EUR1.25 billion to EUR1.35 billion seen previously, as a result of lower traffic and weaker fares in September, caused by two years of coordinated strikes across Europe.Fares for the second half of the year are guided to be down 2%, from its previous expectation of remaining flat from the year before, and slower traffic growth is expected to cut traffic for the full year to 138 million, from the previous guidance of 139 million.The budget Irish airline added that it cannot rule out further disruptions in the third quarter ending December, which could see its profit guidance lowered even more.The update from Ryanair hit easyJet in a negative read-across, down 4.5% and the FTSE 100's worst performer early Monday, while British Airways parent International Consolidated Airlines was down 2.5%.Towards the other end of the index, United Utilities gained 1.3% after Deutsche Bank raised the water firm to Buy from Hold.RSA Insurance was also benefiting from a broker rating upgrade, 1.3% higher after Berenberg raised the stock to Buy from Hold.Just Group was at the bottom of the mid-caps, down 7.6% after announcing its chief financial officer of 12 years will be stepping down. Simon Thomas is to step down as chief financial officer at the end of October. David Richardson, currently deputy chief executive officer and managing director of UK corporate business, be appointed interim CFO in addition to his current responsibilities. The search for a permanent replacement for Thomas is now underway, Just Group said.The economic calendar on Monday has manufacturing PMIs from France, Germany, the eurozone and the UK at 0850 BST, 0855 BST, 0900 BST and 0930 BST respectively. In the US, the Markit manufacturing PMI is at 1445 BST while the ISM manufacturing PMI is at 1500 BST.Sterling was quoted at USD1.3039 early Monday ahead of the manufacturing data, soft compared to USD1.3048 at the London equities close on Friday.The UK manufacturing reading is seen declining slightly to 52.5 in September from the 52.8 posted for last month.Already released, manufacturing data from China overnight showed the country's manufacturing sector weakened in September amidst an ongoing trade war with the US.The official manufacturing purchasing managers index stood at 50.8 in September, a drop from August's 51.3, according to data from the National Bureau of Statistics, and below consensus of 51.2.The independent Caixin manufacturing PMI fell from 50.6 in August to 50, the lowest level in more than one year. Any score above 50 indicates expansion in the sector, while a reading below the mark indicates contraction.In Asia on Monday, the Japanese Nikkei 225 index closed up 0.5%. Markets in China are closed this week for the National Day holiday, though Hong Kong will re-open on Tuesday.Back in the UK, the Conservative Party conference kicked off on Sunday amid intense debate over Prime Minister Theresa May's "Chequers" strategy.The four-day event, taking place in Birmingham, comes with speculation that eurosceptics could challenge May's leadership in order to steer Britain towards a Canada-style free-trade deal after Brexit.In an interview published in the Sunday Times just hours before the conference kicked off, former foreign secretary Boris Johnson described May's plan for leaving the EU as "deranged" and "preposterous."Johnson will be speaking at a conference fringe event on Tuesday, while May delivers a closing speech on Wednesday. In the address, she is expected to urge the party to rally behind her Brexit deal as well as focusing on immigration.Related Shares:
RYA.LInternational AirlinesJust GroupRSA.LeasyJetUnited Utilities