By Silvia Ascarelli, MarketWatch

BHP Billiton risks slashed forecasts from analysts

The U.K.'s main stock index put its three-day winning streak on the line on Tuesday, held in check by losses for heavyweight miner BHP Billiton.

How markets are performing

The FTSE 100 bobbed between positive and negative territory, last trading at 7,589.70, after rising 0.4% in the prior session. However, the British blue-chip gauge is showing a drop of 1.3% for the year to date.

The pound was buying $1.2834, up from $1.2795 late Monday in New York. The currency could be swayed by talks in Brussels between Britain's Brexit minister, Dominic Raab, and the EU's chief negotiator, Michel Barnier, to discuss the future relationship between the U.K. and the euro area.

U.S. stock futures were firmer (http://www.marketwatch.com/story/stock-futures-flat-as-sp-nasdaq-eye-records-investors-look-for-fed-clarity-2018-08-21), pushing the S&P 500 closer to record levels once the trading day begins. Investors are digesting a slew of earnings from retail companies and are turning their focus to Wednesday's release of minutes from the Federal Reserve's last meeting. On Friday, Fed Chairman Jerome Powell will give a speech at the Fed's annual summer retreat in Jackson Hole. The dollar was sagging (http://www.marketwatch.com/story/dollars-losing-streak-stretches-to-five-after-trump-complaints-about-fed-2018-08-21), a day after a report surfaced that President Donald Trump criticized the Fed's monetary policy, expressing particular disappointment in his appointee Powell.

Read:Here's how the Jackson Hole gathering may influence the dollar, bonds and emerging markets (http://www.marketwatch.com/story/heres-how-the-jackson-hole-gathering-may-influence-the-dollar-bonds-and-emerging-markets-2018-08-20)

European stocks were modestly firmer (http://www.marketwatch.com/story/european-markets-flat-but-bhp-falls-after-results-2018-08-21).

Stocks in focus

BHP Billiton(BLT.LN) (BHP.AU) earnings came in short of expectations, and the higher dividend couldn't compensate for that (http://www.marketwatch.com/story/bhp-posts-higher-profit-and-dividend-2018-08-21). The stock came off early lows to trade down 0.7%.

"Investors don't consider the dividend hike to be a permanent fixture and there were several other points of concern, such as rising costs at key copper, oil and coal units and the slashing of productivity savings target in half," said Jasper Lawler, head of research at London Capital Group, in a note.

As a result, analysts may downgrade forecasts for the 2019 fiscal year, he said.

Shares of Polymetal(POLY.LN), another miner, climbed 2% on the heels of earnings (http://www.marketwatch.com/story/polymetal-hikes-dividend-as-net-profit-rises-46-2018-08-21).

Persimmon(PSN.LN), the U.K.'s second-largest home builder, reported a 13% rise in pretax profit for the first six months of the year (http://www.marketwatch.com/story/persimmon-profit-up-on-rising-sales-margins-2018-08-21), outpacing a 5% rise is sales. Shares were up 0.4%.

Wm. Morrison(MRW.LN) led gains in supermarket stocks, rising 1.6%. Its market share over the 12 weeks to Aug. 12 was unchanged, while other leading supermarkets lost market share to Aldi and Lidl, and its sales grew the fastest among its three major rivals.

Sage Group gained 1% a day after shares in the enterprise-software maker tumbled 7% (http://www.marketwatch.com/story/london-markets-higher-buoyed-by-materials-stocks-trade-optimism-2018-08-20).

 

(END) Dow Jones Newswires

August 21, 2018 09:03 ET (13:03 GMT)

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