10th Nov 2014 07:44
LONDON (Alliance News) - UK shares are set to open higher Monday, continuing momentum after Friday's US non-farm payroll numbers showed a gain in October.
Futures indicate the FTSE 100 to open 12 points higher at 6,579. The index closed up 0.3% Friday at 6,567.24 after the US economy created 214,000 more jobs, though this was fewer than expected. The CAC 40 in Paris and Germany's DAX both closed down 0.9%.
US trading finished mixed Friday, as the drop in unemployment to its lowest level since July 2008 still fell short of expectations. The DJIA held on to gains to close up 0.11% and the S&P 500 closed up 0.03%. The Nasdaq Composite closed down 0.13%.
US Federal Reserve Chair Janet Yellen, speaking in Paris, shed little light on when the central bank will raise interest rates.
"I continue to anticipate that the headwinds associated with the financial crisis will wane. As employment, economic activity, and inflation rates return to normal, monetary policy will eventually need to normalize too, although the speed and timing of this normalization will likely differ across countries based on differences in the pace of recovery in domestic conditions," Yellen said.
In Asia, the Japanese Nikkei closed down 0.6% Monday. The Hang Seng is 1.7% higher and the Shanghai Composite is up 2.3% after the two exchanges agreed a tie-up to allow cross-border stock trades. Chinese inflation data, meanwhile, showed price growth remained steady near a five-year low of 1.6% in October as exports grew at a slower pace from last year, reinforcing signs of a weak economic activity.
Outsourcing company Serco cut its profit guidance for 2014 and 2015, said it would book about GBP1.5 billion in impairments and onerous contract provisions, and said it would talk with its lenders about amending the covenants on its debt as it proposed a equity rights issue to shore up its balance sheet. Serco cut its 2014 adjusted operating profit forecast by about GBP20 million to between GBP130 million and GBP140 million, even before the impact of the contract and balance sheet reviews. Its outlook for 2015 has also been reduced, though the company didn't say by how much.
Hammerson said conditions are improving in its UK retail estate, while conditions in its French market remain subdued, although stable. The commercial property company said UK shopping centre sales are up 2.6% so far in 2014, while French sales are down 2.8%. It reported that total rent from new group lettings are up 37%, and the total area of lettings is up 21%.
Trinity Mirror said it expects to reinstate a 3 pence a share dividend this year despite volatility in advertising markets. The newspaper publisher said revenue in the 17 weeks to October 26 fell 5%, despite a 44% in digital revenue.
By Ian Edmondson; [email protected]
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