FTSE 100 to Open Higher as Traders Digest Latest Inflation Data

FTSE 100 to Open Higher as Traders Digest UK Inflation Data

0635 GMT - The FTSE 100 is expected to open higher as investors react to U.K. inflation data and look ahead to the minutes of the Federal Reserve's latest policy meeting. Spreadbetting firm IG expects the index to start the session up 17 points. U.K. inflation eased to an annual rate of 2.0% in July from 2.5% in June, as expected by analysts in a WSJ survey. The Fed's minutes will be released at 1800 GMT. "Any hint on quantitative easing tapering could have a meaningful impact on market sentiment as we are talking about a change in one of the major pillars of the U.S. equity rally, not to say the major pillar," Swissquote Bank analyst Ipek Ozkardeskaya says. ([e-mail])

 
Companies News: 

Old Mutual Sees 1H Recovery in Sales, Profit, But Raises Covid-19 Provision

Old Mutual Ltd. said Wednesday that it experienced a recovery in sales and earnings for the first half of the year, but that it has increased its Covid-19 provisions to take into account expectations of further coronavirus waves.

---

Balfour Beatty Swung to 1H Profit, Returns to Dividend List

Balfour Beatty PLC on Wednesday reported a swing to profit for the first half of the year, backed its full-year guidance and returned to the dividend list.

---

Persimmon 1H Pretax Profit, Revenue Rose

Persimmon PLC said Wednesday that first-half pretax profit and revenue rose and that it anticipates delivering around 10% growth in sales completions this year.

---

Novacyt 1H Revenue Rose 50%; Backs 2021 Guidance

Novacyt SA said Wednesday that revenue for the first half of 2021 rose 50% and it reiterated its full-year revenue guidance.

---

Angling Direct 1H Revenue Rises Despite Virus-Related Store Closures

Angling Direct PLC on Wednesday reported a rise in revenue for the first half of fiscal 2022 despite its stores being closed at the start of the year due to coronavirus-related lockdown restrictions.

---

Falanx Group Sees Narrowed FY 2021 Adjusted Loss; Gets Loan

Falanx Group Ltd. said Wednesday that it anticipates a narrowed adjusted loss for fiscal 2021 thanks to cost controls, and said that it has received a new loan to support investment and potential acquisitions.

 
Market Talk: 

Sterling Briefly Falls as Inflation Eases

0624 GMT - Sterling briefly falls after data showed U.K. inflation eased in July. The annual rate of U.K. inflation fell to 2.0% in July from 2.5% in June, as expected by economists in a WSJ survey. Core inflation, which strips out volatile items such as food and energy, eased to an annual rate of 1.8% from 2.3% a month ago, versus a forecast of 2.0%. GBP/USD initially falls to 1.3733 but has since risen to around levels seen before the data at 1.3742. EUR/GBP briefly rises to 0.8532 before falling to 0.8524, around the level it was before the data. ([e-mail])

BHP Has More to Gain From Planned Oil Deal Than Woodside

0454 GMT - Woodside's tie-up with BHP's petroleum unit may be hard to get across the line, with Woodside shareholders likely to question the value of the merger, says Jamie Hannah, deputy head of investments and capital markets at VanEck Australia. VanEck, which holds both stocks, reckons the deal as planned would benefit BHP considerably more than Woodside, Hannah says. "This deal is one of the most expensive for an energy company and Woodside is one of the worst-performing companies within the energy sector globally post-Covid; the company doesn't yet have a strong mandate to enter a deal of such questionable value and this could further drag on Woodside's shares." ([e-mail]; @RhiannonHoyle)

Contact: London NewsPlus, Dow Jones Newswires; [e-mail]

(END) Dow Jones Newswires

08-18-21 0304ET