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London pre-open: Stocks seen higher ahead of jobs data

By Michele Maatouk

Date: Tuesday 11 Sep 2018

London pre-open: Stocks seen higher ahead of jobs data

(Sharecast News) - London stocks were set to for a positive open on Tuesday after the US government confirmed it is in the process of arranging a second meeting between President Trump and North Korea's Kim Jong Un.
The FTSE 100 was called to open 11 points higher at 7,290, ahead of the release of a slew of jobs data.

CMC Markets analyst David Madden said: "The announcement is seen as a step in the right direction for political stability in the region. Political and business relations are on the mend elsewhere as Russia and China are looking to launch projects worth $100bn via scores of joint ventures, and this has lifted investment sentiment too."

Despite the positive opening call, investors are likely to remain wary amid ongoing trade tension between the US and China.

Madden said: "The trade spat between the US and China rumbles on, and President Trump has the fire power to step it up to a full blown trade war. Mr Trump has up to $467bn worth of tariffs on Chinese imports at his disposal, but he hasn't budged so far. Beijing has made it clear they will retaliate should Washington DC slap additional tariffs on Chinese imports. The situation is unlikely to fade away, so dealers are likely to remain on edge.

"The US still has unfinished business with Canada and the EU when it comes to trade, and that is playing into the mix too."

On the UK data front, the ILO unemployment rate, average earnings and the claimant count are at 0930 BST.

In corporate news, Ashtead said it would increase and extend its share buyback plans after a strong first quarter of its financial year.

On the back of the buoyant equipment rental markets in the US and UK, the FTSE 100 group grew statutory revenue 22% to £1.05bn in the three months to 31 July, with underlying pre-tax profit up 23% to £285.6m.

JD Sports Fashion posted a rise in interim pre-tax profit and revenue despite a "challenging" backdrop.

In the 26 weeks to 4 August, pre-tax profit increased 19% to £121.9m on revenue of £1.85bn, up 35%.

Sanne Group issued what it described as a "good performance" for the first half of 2018, against strong prior year comparatives.

The company saw revenue for the six months to 30 June rise 17.1% to £65.9m, although operating profit fell 12.9% to £11.5m and profit before tax was down 12.8% at £10.9m. It said continued growth momentum across the business and increased annualised new business wins, however, underpinned the board's confidence that Sanne would deliver its expectations for the full year.

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