FTSE 100 Expected to Extend Rally; U.S. Retail Sales Eyed
October 15 2021 - 2:23AM
Dow Jones News
FTSE 100 Expected to Extend Thursday's Strong Gains
0648 GMT - The FTSE 100 is expected to open higher after closing
Thursday at its highest level in two months. Speadbetting firm IG
sees the London index starting 21 points higher, having finished up
65.89 at 7207 in the previous session. "There still seems to be an
element of complacency amongst investors that rising energy prices
won't prompt a wave of demand destruction, especially if supply
chain snarl-ups also feed into higher prices, which consumers then
can't absorb," CMC Markets Michael Hewson says. Friday's economic
calendar includes U.S. retail sales data at 1230 GMT and the
University of Michigan's consumer sentiment survey at 1400 GMT.
(renae.dyer@wsj.com)
Companies News:
Rio Tinto Cuts 2021 Projection for Iron-Ore Shipments, Copper
Output
Rio Tinto said it expects to ship less iron ore than previously
anticipated from its Australian mining operations this year because
of delays to projects caused by labor shortages in the country's
west.
---
Pearson Sees 2021 in Line With Market Views
Pearson PLC said Friday that it has made good strategic progress
in the first nine months of the year, and that it was in line with
full-year adjusted operating profit market consensus.
---
Hargreaves Lansdown 1Q 2022 Assets Under Administration Rose
Hargreaves Lansdown PLC said on Friday that assets under
administration rose during the first quarter of fiscal 2022, and
that its client retention rate remained solid at 93%.
---
Iofina Says Iodine Production Remains in Line With Guidance
Iofina PLC said Friday that it remains on track to meets its
second-half crystalline iodine production target of 260-275 metric
tons.
---
Loungers Sales Up Since Start of Indoor Trading
Loungers PLC said on Friday that its like-for-like sales grew
27% in the 20 weeks to Oct. 3, when compared to the year-prior
period, and that its performance since May 17, the start of indoor
trading in the U.K., has been maintained.
---
K3 Capital Says FY 2022 Performance Remains in Line With Market
Views
K3 Capital Group PLC said Friday that its performance remains in
line with market expectations, and that it will report
higher-than-anticipated revenue and earnings for the year that
ended May 31 after an accounting review.
---
Mediclinic International Says 1H Revenue, Ebitda Margin Rose
Mediclinic International PLC said Friday that revenue rose in
the first half of fiscal 2022, and that its Ebitda margin improved
notably.
---
CPPGroup Expects FY2021 Performance to Meet Market
Expectations
CPPGroup PLC said on Friday that it is confident it will perform
in line with market expectations for the year 2021 on the back of
recovery of its business in India.
---
Hostmore to Float in London on Nov. 2
Hostmore PLC said Friday that it expects its shares to be
admitted to trading on the London Stock Exchange on Nov. 2,
following its separation from Electra Private Equity PLC.
Market Talk:
BP's Investment Into New Businesses to Benefit From Rising
Commodity Prices
0549 GMT - BP's stock has lagged behind peers this year but the
energy company is well placed to benefit from higher commodity
prices, Berenberg says. The company should generate strong free
cashflow in the coming quarters and this will enable attractive
shareholder returns as well as a rise in investments into
lower-carbon businesses, the German brokerage says. "The key for
the longer-term performance of the stock will be whether the new
businesses [mainly Renewables and Customers & Products] can
replace declining earnings in upstream oil and refining," the
broker says. Berenberg upgrades its rating on the stock to buy from
hold, and raises its price target to 425 pence from 310 pence.
(anthony.orunagoriainoff@dowjones.com)
---
Bull Urges Rio Tinto to Get Operations Back on Track
0159 GMT - Rio Tinto needs to get its mining operations running
smoothly again if it wants to remain attractive to investors at a
time when prices for its main product, iron ore, are weakening,
says Jefferies. The bank says the miner's 3Q output of bauxite,
aluminum and copper was weaker than Jefferies had expected and that
downgrades to full-year production guidance now seem to be an
annual ritual. "An operational recovery is needed for these shares
to work," Jefferies says. The bank keeps a buy rating on the stock
in anticipation of Rio Tinto achieving just that, but says it does
see better value in rival miners including Anglo American and
Glencore. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
---
Rio Tinto Guidance Cut Hurts Its Stock Price, But Might Help
Iron Ore
0017 GMT - Rio Tinto's downgrade to its annual iron-ore shipment
guidance has the potential to help sentiment in the global iron-ore
market, says RBC Capital Markets. But even with substantial output
cuts from all major producers of the steelmaking ingredient, "there
will still likely be a surplus of iron ore in 2022," RBC reckons.
The broker calls it another disappointing quarter for Rio Tinto's
operations more broadly. "Although none of this is particularly
unexpected (we are already within newly guided ranges in most
categories, including iron-ore production), the lack of recovery is
unlikely to inspire much confidence in the shares," RBC says. Rio
Tinto is down 0.8% in Sydney, as other mining shares rise.
(rhiannon.hoyle@wsj.com; @RhiannonHoyle)
Contact: London NewsPlus, Dow Jones Newswires; Dow Jones
Newswires; paul.larkins@wsj.com
(END) Dow Jones Newswires
October 15, 2021 03:08 ET (07:08 GMT)
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