| London stocks nudged lower in early trade on Thursday, holding up pretty well given the backdrop of rising geopolitical tensions. At 0840 BST, the FTSE 100 was down 0.1% to 7,251.89, while the pound was flat against the euro and the dollar at 1.1466 and 1.4183, respectively. UK Prime Minister Theresa May has summoned the cabinet to discuss the government’s response to the suspected chemical weapons attack in Syria and, according to press reports, the meeting is likely to lead to a backing of US-led intervention. May had already said that "all the indications" were that the Syrian regime of president Bashar al-Assad was responsible for the attack. Lee Wild, head of equity strategy at Interactive Investor, said: "Fading fears of a full-blown trade war between the US and China has been a big positive for global stock markets, but equity investors are now taking money off the table ahead of possible US air strikes against Syria. Already at odds with Russia over the poisoning of former spy Sergei Skripal, risk here is of serious escalation of hostilities in the Middle East if Donald Trump and the West provoke Syria’s allies Russia and Iran. "A decent recovery from the first-quarter sell-off had the FTSE 100 trading at a six-week high, and Thursday’s pullback has been only limited in nature. There seems little doubt that Trump will attack Syria, so absolutely everything depends on Russia’s response, yet investors have enough good reasons to stick with stocks to prevent a full-blown exodus based only on ifs and buts." Investors were also digesting the release of the latest Federal Reserve minutes late on Wednesday, which showed US central bankers were more confident on the economic outlook when they last met to decide on policy, with several of the belief that at some point in about two years' time rates would need to rise above their normal longer-run value. There was little of note due on the macro front, with only the Bank of England Credit Conditions Survey at 0930 BST. In corporate news, Shire was the standout gainer amid reports that Japan’s Takeda has sounded out creditors for loans as it moves closer to making a bid for the group. Transport operator FirstGroup surged after saying late on Wednesday that it had received a "preliminary"and "highly conditional" indicative proposal from private equity firm Apollo Management, but that this was unanimously rejected on the basis that it fundamentally undervalues the company. Intertek Group was little changed after saying it has agreed to buy Proasem, a provider of laboratory testing, inspection, metrology and training services, based in Colombia, for an undisclosed sum. National Grid edged up as it said major storms in the US will dampen its full-year profits, which for earnings per share will be largely offset by better finance costs and tax. Countryside Properties rose after announcing the acquisition of Leicester-based partnerships housebuilder Westleigh for up to £135.4m in cash on debt free and cash free basis. LondonMetric Property gained as it announced the disposal of four distribution and two industrial warehouses for £36m on Thursday, reflecting a blended net initial yield of 5.9%. Gambling technology company Playtech racked up strong gains as it agreed to buy 70.6% of Italian betting and gaming outfit Snaitech from two major shareholders for €846m. Man Group rallied as it reported strong net inflows for the first quarter, while homewares retailer Dunelm advanced after posting a 5% jump in third-quarter revenue. Greene King fizzed higher after saying it remains well placed to withstand the external market challenges and deliver long-term value to its shareholders. Over-50s specialist Saga made solid gains despite posting a drop in full-year pre-tax profit, as it sounded an upbeat note on its outlook. WH Smith was on the back foot after saying its interim profits held more or less steady, while recruiter Hays slipped as it posted a 10% rise in like-for-like gross profit in the third quarter as the UK remained a sore spot. Pets at Home was in the dog house after Morgan Stanley said that having analysed the accounts of almost 400 of its JV Vet practices, it has become "rather sceptical about the main bull point in the Pets at Home investment case". In broker note action, Mitie was upgraded to 'outperform’ at RBC Capital Markets, while Ocado was cut to 'neutral’ at JPMorgan. SIG was lifted to 'buy’ from 'hold’ at Shore Capital, while several companies were lower after their stock went ex-dividend, including ITV, Reckitt Benckiser, Paddy Power, Smurfit Kappa, Esure and BBA Aviation. | 
No comments:
Post a Comment