London Stocks Seen Opening Higher; Markets Await ECB Decision, Netflix Earnings
0643 GMT - The FTSE 100 is expected to open 57.8 points, or 0.7%, higher, according to IG, having closed on Wednesday at 8187.46. U.K. data showed wages slowed in line with expectations, keeping alive the possibility that the Bank of England could cut interest rates next month, although growth of 5.7% excluding bonuses could be uncomfortably high for some policymakers. Focus turns to a European Central Bank decision at 1215 GMT, with rates expected to be left on hold but the central bank might offer hints about when its next rate cut will likely be. "Netflix becomes the first of the closely-watched big tech stocks to report, as earnings season moves into high gear," IG analysts write. (jessica.fleetham@wsj.com)
COMPANIES NEWS:
Anglo American Cuts Coal Target Following Fire Incident; Backs Copper, Iron Ore Views
Anglo American cut its coal-production target for the year after a fire incident at a major mine is set to suspend production for the rest of the year, while backing guidance for its key metals copper and iron ore.
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AJ Bell Posts Rise in Assets Under Administration
AJ Bell said its assets under administration increased over the third quarter as it added customers on its platform over the period and saw higher inflows.
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SSE Posts In-Line Operational Performance, Backs Guidance
SSE said that its first-quarter operational performance was in line with expectations, and that it is on track to meet its growth targets.
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Liontrust Asset Management Appoints Luke Savage as New Chair to Succeed Alastair Barbour
Liontrust Asset Management said that chair Alastair Barbour will retire and named Chesnara's Luke Savage as his successor.
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QinetiQ's Revenue Under Contract Grows, Confirms Guidance
QinetiQ said its revenue under contract continues to grow and confirmed it is on track to meet the board's expectations for the year.
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Royal Mail Owner IDS Backs Guidance After Revenue Rises
Royal Mail owner International Distribution Services said its first-quarter performance was in line with expectations, with positive volume and revenue growth at both the U.K. postal service and parcels network GLS.
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Dunelm Expects Profit to Beat Market Views After Strong Summer Sales
Dunelm Group said it expects fiscal 2024 profit to be ahead of market views following a positive quarterly performance in the summer, particularly driven by higher volumes and margin.
MARKET TALK:
Babcock's Frigate Program is a Cash Drag, Berenberg Says
0630 GMT - Babcock International's Type 31 frigate program is an increasing cash drag and investors could grow concerned over further charges in the medium term, Berenberg analysts say, after downgrading the group to hold from buy. Babcock must show evidence that the frigate contract has been de-risked, following its disclosure of a further GBP90 million charge on the program, the analysts write in a research note. Higher-than-expected labor costs could expand beyond the Rosyth dockyard, they add. Berenberg raised its target price on the stock to 565 pence from 510 pence. Shares closed at 517.50 pence. (cristina.gallardo@wsj.com)
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(END) Dow Jones Newswires
July 18, 2024 02:50 ET (06:50 GMT)
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