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London open: Stocks edge higher as investors digest earnings, Trump speech
Stocks in London edged higher in early trade as investors sifted through more earnings news and digested US President Donald Trump’s first address to Congress, and they looked ahead to some key manufacturing data.
At 0835 GMT, the FTSE 100 was up 0.5% to 7,301.98.
Trump struck an upbeat but measured tone on Tuesday, saying he was open to a broad immigration reform bill but remaining low on details when it came to his economic plans apart from a $1trn investment in infrastructure.
“The time is right for an immigration bill as long as there is compromise on both sides,” Trump told reporters at the White House, where he spoke of a “new chapter of American greatness”.
Spreadex‘s Connor Campbell said: “The bar is currently so low with Trump that something resembling a ‘presidential’ performance can bring relief to investors. Things like the $1trn infrastructure spend and tax reforms were touched upon, but outside repeating the claims that had gone before there wasn’t any of the nitty gritty that is a) sorely needed and b) seems beyond the reach of Trump’s abilities. Nevertheless, the market appears to just about be pleased with what went on in front of Congress last night.”
In corporate news, building materials group CRH rallied as it said pre-tax profit surged 68% in 201, while car dealership Inchcape advanced after it posted a rise in full-year profit as revenue grew and the company was boosted by weakness in the pound.
International distribution and outsourcing group Bunzl rose after agreeing to buy US-based Diversified Distribution Systems for an undisclosed sum.
Building materials distributor Wolseley pushed up as it appointed BBA Aviation’s Mike Powell as chief financial officer and an executive director, effective from 1 June.
ITV edged higher as it pledged to pay a special dividend on top of a full year dividend up 20% as it reported a decline in broadcast revenues for 2016 and warned that advertising revenues would fall in the early months of 2017.
On the downside, hedge fund manager Man Group was under the cosh after saying it swung to a statutory pre-tax loss for the year to the end of December, although its funds under management rose.
Carillion pushed lower as the support services group said profit fell 5% in 2016, while BBA Aviation slid as it swung to a full-year loss on the back of exceptional costs.
Consumer credit lender International Personal Finance tanked as it reported a 20% drop in full-year pre-tax profit.
Investors were mulling over the latest data from mortgage lender Nationwide, which showed house prices unexpectedly picked up in February.
House prices were up 0.6% on the month compared with 0.2% in January. On an annual basis, prices were up 4.5% compared to 4.3% in January. Economists had expected prices to increase 0.2% on the month and slow 4% on the year.
Still to come on the data front, market participants will eye Markit’s manufacturing PMI at 0930 GMT, along with consumer credit and mortgage approvals data.
