ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for tools Level up your trading with our powerful tools and real-time insights all in one place.

ADVFN Morning London Market Report: Thursday 2 November 2017

Share On Facebook
share on Linkedin
Print

London open: Stocks flat as investors brace for first rate hike since 2007

© ADVFN

London stocks were little changed in early trade on Thursday as investors braced for what could be the first rate hike by the Bank of England in a decade.

At 0830 BST, the FTSE 100 was flat at 7,487.23, while the pound was steady against the euro at 1.1399 and up 0.2% versus the dollar at 1.3265.

The BoE rate announcement is at 1200 GMT, along with the quarterly inflation report, the minutes from the Monetary Policy Committee meeting and followed by a press conference with Governor Mark Carney 45 minutes later.

Accendo Markets analyst Mike van Dulken said that even if the BoE does lift rates, “it won’t really be a 25 basis points hike, more a reversal of last year’s referendum-inspired cut”.

“As much as UK inflation is blowing too hot (3% versus 2% target), this is highly unlikely to signal the start of a Fed-like series of increases, normalising policy from crisis enforced extremes. Not with the uncertainty of Brexit hanging over the UK economy.

“As always the 1245 GMT presser will be fun, with Governor Carney put through the ringer.”

Investors will also be digesting the latest policy announcement from the Federal Reserve overnight, as the US central bank stood pat on rates as expected. The Fed kept its interest rate target at between 1% and 1.25%, although its statement remained upbeat about the state of the US economy.

All eyes will be on the US again on Thursday as US President Trump is due to announce Fed Chair Janet Yellen’s successor, amid reports overnight he has already plumped for Fed Governor Jerome Powell.

In corporate news, Wm Morrison was in the red despite reporting a 2.5% increase in third-quarter like-for-like sales, while Randgold Resources fell after the gold miner posted a drop in profit and production for the third quarter, but said it was on track to meet its 2017 guidance.

RSA Insurance was also on the back foot after saying it has set aside £50m for US and Caribbean catastrophic events in the third quarter, warning that the number could rise.

GlaxoSmithKline edged down despite saying that it has received FDA approval to fast-track a new cancer treatment.

On the FTSE 250 Playtech tumbled after the gambling software development group said that its performance for the full year will be around 5% below the bottom end of market expectations due to a slowdown in Asia and challenges with its Sun Bingo contract.

Lancashire Holdings was lower as it posted a third-quarter loss due to natural catastrophes, while Ashmore and Dunelm slipped as their stock went ex-dividend.

Centamin retreated after posting a drop in third-quarter profit, while Acacia Mining declined as the gold producer said that both its chief executive and its chief financial officer have jumped shit just days after the miner’s parent company caved in to the Tanzanian government in the midst of a months-long dispute over gold exports.

On the upside, BT was in the black as the telecoms giant defied some doubting Thomases by maintaining its interim dividend despite challenges in some part of the business, including an accounting scandal in Italy.

Howden Joinery, Tate & Lyle and Intu Properties were all trading higher after well-received updates

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com