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London open: Stocks nudge lower ahead of retail sales data
London stocks nudged a little lower in early trade as investors eyed the release of UK retail sales data, amid ongoing worries about Donald Trump’s economic plans.
At 0830 GMT, the FTSE 100 was down 0.2% to 7,310.65, while the FTSE 250 was marginally up at just over 18,835.
Investors may be sitting on their hands, suggested Spreadex analyst Connor Campbell, due to a sobering mood stemming from the Westminster attack on Wednesday added to caution over a big vote in US later on Thursday.
“Investors are waiting for the House of Representatives vote on ‘Trumpcare’ later in the day; if the President can’t get the bill passed it would suggest he faces an uphill battle push through his tax and infrastructure reforms. And considering it was those promises that sent the Dow Jones et al sky high, investors will likely not react well to that eventuality.”
Also the US, Federal Reserve Chair Janet Yellen is due to give a speech in Washington at 1245 GMT in Washington, while Minneapolis Fed President Neel Kashkari is scheduled to make a speech at 1800 GMT.
On the data front, UK retail sales are due at 0930 GMT, while the CBI distributive trades survey is at 1100 GMT.
In corporate news, clothes retailer Next rallied after it reported underlying pre-tax profits fell 3.8% to £790.2m last year and warned 2017 will be “another tough year” due to a shift away from spending on clothing and a squeeze on UK wages.
Tesco was the standout gainer after being upgraded to ‘buy’ at Deutsche Bank, but rival Sainsbury fell after DB cut the stock to ‘hold’.
Cranswick got a boost as Berenberg initiated coverage of the stock at ‘buy’.
Housebuilder Bovis Homes retreated as its stock went ex-dividend.
Medical technology firm ConvaTec slipped after saying it has launched its skin protectant incontinence wipes in the US.
LondonMetric Property nudged lower as it unveiled a £97m placing to fund the acquisition of “last mile assets”.
Property, residential, construction and services company Kier Group rose after reporting a 12% jump in half-year pre-tax profit to £46.3m and lifting its interim dividend.
Housebuilder Crest Nicholson ticked down despite saying that the trading environment has remained robust, with good sales across its areas of operation.
Online gambling company GVC Holdings rose after it reported a surge in full-year earnings and said it will pay a second special dividend for 2016.
Halma gained ground as it said it expects full-year profit to be in line with market consensus, but IG Group slumped after it posted a 3.8% drop in third-quarter revenue in what it referred to as a “quiet period” in global financial markets.
Ted Baker shares fell despite the company reporting an increase in full-year revenue and profit.
