Hot Features
Premium
Level up your trading with our powerful tools and real-time insights all in one place.
London open: Equity markets nudge higher as earnings lend support
Stocks in London nudged a touch higher in early trade following losses in the previous session, as investors took heart from some encouraging earnings.
“Despite falls in US and Asian markets the FTSE is trying to push higher thanks largely to Vodafone and National Grid beating estimates,” said Mike McCudden, head of derivatives at Interactive Investor.
“Furthermore, talk of a special dividend from National Grid after the sale of its gas distribution business is helping push the stock 2.5% higher in early trade. However, trading remains difficult while uncertainty remains over a US rate hike and what, if anything, China can now do to stave of deflationary pressure. This may well turn out to be yet another dead cat bounce.”
Data released by the National Bureau of Statistics earlier showed consumer prices in China rose only 1.3% in the year to October. This was down from 1.6% in September, marked the lowest reading since May and fell short of expectations of 1.5%.
Vodafone impress with first half results
On the corporate front, Vodafone shone after the telecommunications company’s first half results beat expectations and it lifted full year guidance.
Broadcaster ITV gained ground after saying it was on track for double digit profit growth for the full year as it posted a strong third quarter book.
National Grid advanced after it announced strong first half earnings growth and confirmed rumours that it has begun to look at potentially selling a majority stake in its gas distribution business and returning the proceeds to shareholders via a likely special dividend.
Plumbing supplier Wolseley slid after its first-quarter update failed to impress, while property developer Land Securities was also under the cosh as its interim net asset value per share missed analysts’ expectations.
Supermarket retailers Morrison and Tesco were hit as Deutsche Bank downgraded its ratings on the stocks.
There is no UK data of note scheduled for release but in the US, the import price index is at 1330 GMT, while wholesale inventories are at 1500 GMT.
