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London open: Stocks fall as investors weigh earnings
London stocks declined on Tuesday as traders sifted through earnings releases.
SABMiller slumped amid news AB INbev is expected to lodge a bid for the brewing company this week as it reported a 9% decline in revenue on a reported basis for the six months to 30 September, reflecting currency headwinds.
Ted Baker was also in the red despite reporting a better-than-expected 24.5% jump in half-year revenue and a 14.6% increase in pre-tax profit to £17.8m in line with estimates.
Going the other way, Greggs surged after saying it sales in the 13 weeks to October were slightly ahead of expectations with the full year likely to be ahead of previous guidance.
In economic data, Halifax revealed UK house prices fell 0.9% in September from August when prices rose 2.7%. Analysts had pencilled in a 0.1% gain. Compared to a year ago, prices slowed to 8.6% growth in the three months to September, compared to a previous 9% increase and analysts’ forecasts of 9.1% growth.
Germany’s factory orders fell 1.8% month-on-month in August, marking the second successive month of a decline following a 2.2% drop in July, Destatis revealed. The figure was well short of the expected 0.5% increase.
Tuesday’s calendar of data otherwise looks relatively empty apart from the Eurozone retail purchasing managers’ index and US trade balance.
US Federal Reserve official John Williams, who has called for an interest rate hike this year, will speak in California after the close. The market will be looking to see whether a disappointing US non-farm payrolls report on Friday has changed his mind about the timing of the first interest rate increase in almost a decade.
