LONDON MARKETS: EasyJet, BHP Billiton Propel FTSE 100 Higher Ahead Of Inflation Data
July 18 2018 - 3:26AM
Dow Jones News
By Sara Sjolin, MarketWatch
Inflation report for June due; pound falls below $1.31
U.K. stocks rose for a second straight day on Wednesday, lifted
by strong gains for mining giant BHP Billiton and EasyJet after
those companies issued well-received corporate updates.
Later in the morning, attention turns to the release of June
inflation data for the U.K., which could further strengthen the
case for an August interest rate rise from the Bank of England.
What are markets doing?
The FTSE 100 index added 0.4% to 7,659.61, building on a 0.3%
advance from Tuesday.
The pound fell to $1.3085 from, $1.3116 late Tuesday in New
York.
What is driving the markets?
The U.K. benchmark was lifted by upbeat second-quarter corporate
releases. BHP Billiton PLC (BLT.LN) (BHP.AU)(BHP.AU) shares posted
the biggest gain in London, rising 2.9% after the miner reported a
rise in iron ore and copper production
(http://www.marketwatch.com/story/bhp-billiton-iron-ore-output-rises-copper-jumps-2018-07-18).
Discount airline EasyJet PLC (EZJ.LN) was number two on the FTSE
leaderboard, with shares up 2.8% after the discount airline lifted
its full-year profit guidance
(http://www.marketwatch.com/story/easyjet-lifts-profit-guidance-as-revenue-rises-2018-07-18).
U.K. inflation data
The monthly report on inflation due later could move U.K. stocks
and the pound. Consumer prices are forecast to have grown 2.6% in
June, up from 2.4% in May. The core inflation number -- which
strips out volatile items such as energy and food -- is expected to
come in at 2.2%, compared with 2.1%.
"It is the last major data release before the Bank of England
meets on 2 August, and inflation needs to surprise significantly
for the BOE to change its plans to raise the Bank Rate at the next
meeting," strategists at Danske Bank said in a note.
The Bank of England is widely expected to hike interest rates at
its meeting in early August in an effort to curb inflation that
remains stuck above the bank's 2% target.
The inflation report is expected to come out at 9:30 a.m. London
time, or 4:30 a.m. Eastern Time.
Other stock movers
Shares of Smiths Group PLC (SMIN.LN) slumped 6.7% after
engineering company issued a revenue warning for its medical
division
(http://www.marketwatch.com/story/smiths-warns-on-medical-revenue-returns-to-growth-2018-07-18).
Severn Trent PLC (SVT.LN) lost 2% after the water utility
company reported a drop in fiscal 2018 pretax profit
(http://www.marketwatch.com/story/severn-trent-profit-falls-in-2018-on-costs-2018-05-23).
(END) Dow Jones Newswires
July 18, 2018 04:11 ET (08:11 GMT)
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