London pre-open: Stocks to bounce back; US data eyed
By Michele Maatouk
Date: Friday 16 Aug 2019
(Sharecast News) - London stocks looked set to rise at the open on Friday following heavy losses in the previous session.
The FTSE 100 was called to open 36 points higher at 7,103.
CMC Markets analyst David Madden said: "The S&P 500 posted a small gain last night as the market rebounded a little form the massive losses incurred on Wednesday, while the NASDAQ 100 finished fractionally in the red. US retail sales jumped by 0.7% in July and that assisted the greenback - which took a battering at the beginning of the month. The
"inversion of the yield curve spooked traders, but when you look at the economic indicators, the US economy is in rude health. The jobs market is strong, earnings are above CPI and workers are spending money, so we might see a row back in the calls for a rate cut from the Fed next month.
"Stocks markets in Asia are a little higher as the mood has lightened, and that paved the way for bargain hunting.
"Sterling had a good run yesterday as the UK retail sales report showed an increase of 0.2% in July, which comfortably topped the -0.2% forecast. It was a good week for British economic reports as the unemployment rate is still very low, wages are strong, core inflation edged higher, and the retail sales figure was solid."
With no UK data releases of note due, all eyes will be on the US, where housing starts and Michigan consumer sentiment will be released.
In corporate news, Acacia Mining said it had resumed gold exports from its North Mara mine after receiving export permits from the Tanzanian government, but warned that production at the plant was still halted over a ban on the use of its tailings facility.
The company said it would be will be able to meet its financial obligations "for an extended period of time" after the sale of gold from North Mara.
Ted Baker has signed a five-year deal with Next to produce and sell Ted Baker childrenswear from spring 2020.
The companies will work together on products and sell them through Next's retail and wholesale businesses and on Ted Baker websites. Ted Baker's current childrenswear deal with Debenhams will end in February.
Ultra Electronics and its partner Sparton DeLeon Springs announced the award of an IDIQ contract valued at a not-to-exceed amount of $1.04bn (£0.86bn) to their ERAPSCO joint venture, for the manufacture of sonobuoys for the United States Navy.
The FTSE 250 company said the contract provided the base year award of a five-year indefinite delivery indefinite quantity (IDIQ) contract. It said ERAPSCO would provide production subcontracts in support of the base year delivery order, in the amount of $75.75m and $75.26m to Ultra Electronics USSI and Sparton.
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