LONDON (ShareCast) - - Stocks open broadly flat ahead of German data
- BoE members face grilling from MPs
- Domino Printing sinks on cautious outlook
- Imagination Technologies impresses

techMARK 2,823.59 -0.17%
FTSE 100 6,806.42 +0.09%
FTSE 250 15,666.80 -0.05%

UK stocks opened more or less unchanged in early trading on Tuesday as investors awaited comments from Bank of England policymakers as well as a key reading on business confidence in Germany.

The FTSE 100 was trading just 0.1% higher at 6,806 within the opening hour.

"Maybe it’s the summer weather keeping traders in the pub for long lunches that’s responsible for the continual decline of volatility, volume and interest in the markets at the moment," said Jonathan Sudaria, a dealer at Capital Spreads. He said it is unusual to see a lack of "jitters" in a global macro environment which is "far from void of catalysts", such as higher oil prices on the back of the ongoing crises in Iraq and Ukraine.

"However, with the bulls showing uncanny complacency and an ability to shrug off bad news, I’m sure I’ll be writing about new all time highs at some point again before the month is out," Sudaria said.

In the UK, the market will be keeping a close eye on Monetary Policy Committee members Mark Carney, Charlie Bean, David Miles and Ian McCafferty as they testify to the Treasury Select Committee later this morning.

Chief Market Analyst at CMC Markets UK Michael Hewson, said: "It is hoped that MP's will ask the question that everyone in the markets wants to know the answer to - why the sudden chameleon-like change from dove to hawk about the prospect of rate hikes?"

Data out this morning from the IFO Institute in Germany is expected to show that the business expectations index edged lower to 106.0 in June from 106.2 the month before. Meanwhile, the current assessment index is predicted to rise to 115.0 from 114.8.

Domino Printing plummets, Imagination Technologies jumps

Domino Printing, which develops inkjet, laser and thermal printing products, reported double-digit underlying growth in the first half but warned that progress may be limited next year, causing shares to drop sharply this morning.

Chairman Peter Byrom said he is "cautious about prospects for the business in 2015" and that results next year would be broadly flat "as a result of the competitive pricing environment in Asia and other developing markets and the need for additional investment in R&D".

Heading the other way was chip designer Imagination Technologies after the drop in annual profits wasn't as bad as feared. The company also said the demand for its Ensigma communications technology is "accelerating [...] driven by the emerging trends in the Internet of Things and home connectivity", as it continues to face a slowdown in the core smartphone market.

Broker downgrades were weighing on a number of heavyweight stocks this morning: supermarket giant Tesco was cut to 'neutral' by Exane BNP Paribas; defence group BAE Systems was lowered to 'hold' at Investec; while utilities providers United Utilities and Severn Trent were both hit by a Goldman Sachs ratings cut to 'neutral'.

Bid target Shire, which last week rejected a £27bn approach from US pharmaceutical outfit AbbVie was making gains this morning after yesterday setting out its defence to shareholders with its 10-year strategic plan. Credit Suisse was providing a lift this morning, saying: "We believe ABBV will need to step in at a higher price in order to get the deal done."

Meanwhile, IAG’s stock rebounded slightly after some selling pressure yesterday as cabin crew at its UK carrier British Airways threatened to strike over salary conditions.

FTSE 100 - Risers
BG Group (BG.) 1,290.00p +1.53%
Aggreko (AGK) 1,629.00p +1.43%
Shire Plc (SHP) 4,353.00p +1.16%
Tullow Oil (TLW) 882.00p +1.15%
Sainsbury (J) (SBRY) 318.90p +1.14%
Pearson (PSON) 1,131.00p +1.07%
SSE (SSE) 1,599.00p +1.01%
BP (BP.) 525.00p +0.96%
International Consolidated Airlines Group SA (CDI) (IAG) 383.20p +0.87%
British Land Co (BLND) 681.00p +0.74%

FTSE 100 - Fallers
Sports Direct International (SPD) 724.50p -2.42%
Weir Group (WEIR) 2,655.00p -1.56%
Rio Tinto (RIO) 3,082.50p -1.42%
Aviva (AV.) 503.00p -1.37%
Ashtead Group (AHT) 842.50p -1.35%
Babcock International Group (BAB) 1,144.00p -1.12%
Schroders (SDR) 2,520.00p -0.94%
ITV (ITV) 170.00p -0.82%
Anglo American (AAL) 1,459.00p -0.78%
Tesco (TSCO) 289.75p -0.77%

FTSE 250 - Risers
Imagination Technologies Group (IMG) 252.00p +7.92%
Mitchells & Butlers (MAB) 396.80p +1.59%
Informa (INF) 490.50p +1.53%
UBM (UBM) 664.50p +1.37%
Ophir Energy (OPHR) 243.40p +1.33%
Ted Baker (TED) 1,777.44p +1.28%
Tullett Prebon (TLPR) 261.68p +1.23%
Spirent Communications (SPT) 96.15p +1.21%
ITE Group (ITE) 220.70p +1.10%
Supergroup (SGP) 945.00p +1.07%

FTSE 250 - Fallers
Domino Printing Sciences (DNO) 640.50p -13.21%
Croda International (CRDA) 2,204.00p -8.40%
African Barrick Gold (ABG) 205.40p -2.19%
PayPoint (PAY) 1,110.00p -1.77%
Victrex plc (VCT) 1,674.00p -1.65%
Vedanta Resources (VED) 1,144.00p -1.46%
Xaar (XAR) 496.50p -1.39%
Britvic (BVIC) 716.00p -1.38%
Countrywide (CWD) 514.50p -1.15%
Northgate (NTG) 508.00p -1.07%


BC

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