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London open: Stocks nudge lower as investors continue to mull Italy vote
Stocks in London nudged lower in early trade as investors continued to mull over the implications of the Italian referendum and Prime Minister Renzi’s resignation amid a lack of fresh catalysts.
At 0820 GMT, London’s FTSE 100 was down 0.2% to 6,731.94. Meanwhile, oil prices were a little weaker, with West Texas Intermediate down 0.7% to $51.45 a barrel and Brent crude 0.4% lower at $54.70.
Spreadex‘s Connor Campbell said: “The index is currently trapped below the 6750 mark, immediately dropping half a percent after the bell. The FTSE is lacking any macro-momentum bar the continued, and exhausting, Brexit-brouhaha that have been a constant presence since June, meaning it is struggling to significantly break through the levels it has been stuck around for the last few months.
There are no major UK data releases due, but in the US, trade balance and non-farm productivity are at 1330 GMT, while factory orders and durable goods orders are at 1500 GMT.
In corporate news, plumbing and heating products distributor Wolseley fell as it reported a rise in first-quarter revenue, including increased revenue from the US, but said markets in the UK and the Nordic region were challenging.
Low-cost carrier EasyJet flew lower as it posted its passenger statistics for November, with total passengers for the month improving 2.9% to 4,947,060 year-on-year, although the load factor dropped 0.6 percentage points to 89.7%.
Ultra Electronics declined after it said trading remained in line with its expectations for 2016.
Industrial equipment rental company Ashtead was on the front foot as it said rental revenue in the six months to 31 October grew 13% on last year to £1.45bn, pre-tax profit was up 9% to £425.9m and the interim dividend was hoisted 19% to 4.75p per share.
Power generation firm Drax rallied after announcing a conditional agreement to buy Opus Energy for £340m and an agreement to acquire four open cycle gas turbine (OCGT) development projects for electricity generation, as it said full-year earnings were still likely to be at the bottom end of market forecasts.
FTSE 250 supplier of high performance polymer solutions Victrex was sharply higher. Although the company reported a drop in profit and revenue for the year to the end of September, analysts said revenue was bang in line and noted the fact the group remains comfortable with current market expectations.
Thomas Cook advanced after the travel company said it will take full ownership of its UK retail store network late next year.
