LONDON MARKETS: FTSE 100 Lifted As Unilever Advances, With ECB Meeting In Focus
July 20 2017 - 5:33AM
Dow Jones News
By Carla Mozee, MarketWatch
Retail sales rise; pound falls; EasyJet shares in the red
U.K. stocks moved higher on Thursday, with Ben & Jerry's ice
cream maker Unilever PLC gaining after its earnings report, one of
a stream of financial releases.
Stocks remained higher after the release of a report on British
retail sales, and ahead of the European Central Bank's policy
statement, which could have implications for the pound.
The FTSE 100 index rose 0.6% to 7,473.47, with only the basic
materials and tech sectors losing ground. A win Thursday would be
the blue-chip market's second in a row after it advanced 0.6% on
Wednesday.
(http://www.marketwatch.com/story/ftse-100-slips-as-miners-sag-but-deal-lifts-reckitt-benckiser-shares-2017-07-19)
Earnings season: More corporate results were rolling in
Thursday. Unilever shares (ULVR.LN) picked up 0.5% after the maker
of Lipton tea and Alberto Balsam hair care products said first-half
net profit rose to 3.11 billion euros ($3.58 billion) and that
margins should be better than previously expected over the full
year.
(http://www.marketwatch.com/story/unilever-posts-profit-gain-lifts-margin-guidance-2017-07-20)
Anglo American PLC (AAL.LN) was up 0.4% as the miner raised this
year's production guidance for its Kumba Iron Ore business in South
Africa, and posted an 8% increase in copper equivalent production
(http://www.marketwatch.com/story/anglo-american-ups-kumba-iron-ore-output-guidance-2017-07-20)
in the second quarter.
But shares of EasyJet PLC (EZJ.LN) were dragged down 4.9% even
as the budget airline said unit revenue turned positive
(http://www.marketwatch.com/story/easyjet-quarterly-unit-revenue-turns-positive-2017-07-20)
in the third quarter after a period of sharp declines.
"Despite an improvement in [the third quarter], the group still
expects revenue per seat to decline by 2% across the second half as
a whole and that suggests that the key summer period has been
seeing some significant discounting," wrote Laith Khalaf, senior
analyst at Hargreaves Lansdown.
Off the main benchmark, shares of Sports Direct International
PLC (SPD.LN) climbed 7.2%, pushing past the sports-equipment
retailer's report that a slide in the pound drove down fiscal 2017
pretax profit.
(http://www.marketwatch.com/story/sports-direct-profit-hit-by-brexit-battered-pound-2017-07-20)
(http://www.marketwatch.com/story/sports-direct-profit-hit-by-brexit-battered-pound-2017-07-20)Moneysupermarket.com
Group PLC shares (MONY.LN) tumbled 6.1% as the price comparison
website warned adjusted operating profit will be at the lower end
of market consensus for the full year.
(http://www.marketwatch.com/story/moneysupermarketcom-warns-on-yearly-profit-2017-07-20)
Sterling and ECB: The pound has bounced around during Thursday's
session, coming off session lows after data showed U.K. retail
sales rose 2.9% in June year-over-year,
(http://www.marketwatch.com/story/uk-retail-sales-rebounded-in-second-quarter-2017-07-20-44855431)
above a FactSet estimate of 2.6%. Sales rose by 1.5% for the second
quarter.
But the pound once again starting losing ground and traded at
$1.2962, compared with an intraday high of $1.3033, and late
Wednesday's settlement of $1.3025.
The FTSE 100 pushed higher as sterling fell. A stronger pound
can put pressure on shares of export-focused multinational
companies that pull in revenue from overseas.
Check out:Why there is a 'massive' opportunity in British
leisure stocks
(http://www.marketwatch.com/story/why-there-is-a-massive-opportunity-in-british-leisure-stocks-2017-07-19)
Meanwhile, the pound fell against the euro, buying EUR1.1264
compared with EUR1.1311 on Wednesday.
Investors will tune into what the European Central Bank may say
about monetary policy when it releases its statement at 12:45 p.m.
London time, or 7:45 a.m. Eastern Time. ECB President Mario Draghi
will speak to the press at 1:30 p.m. London time.
"While we're not expecting any changes from the ECB today, its
EUR60 billion-a-month asset program expires at the end of the year,
and traders are looking for clues regarding what comes next," said
Craig Erlam, Oanda's senior market analyst, in a note.
"An announcement on this is unlikely until September when it
releases its new macro-economic projections but Mario Draghi may
offer some insight into what we can expect during the press
conference," he said.
Investors have used proceeds from sales in bonds to the ECB to
buy other assets, including U.K. equities.
Read:Why Mario Draghi can't back down from ECB taper hints
(http://www.marketwatch.com/story/why-mario-draghi-cant-back-down-from-ecb-taper-hints-2017-07-19)
(END) Dow Jones Newswires
July 20, 2017 06:18 ET (10:18 GMT)
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