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London open: Stocks edge higher as investors sift through corporate news
London stocks edged higher in early trade, underpinned by record closes for the S&P 500 and the Nasdaq, as investors sifted through corporate news.
At 0830 BST, the FTSE 100 was up 0.2% to 7,406.33, while the pound was 0.2% firmer against the euro at 1.1307 and flat against the dollar at 1.3040.
Accendo Markets analyst Mike van Dulken said: “In focus today will be Prime Minister’s Questions (12:30pm) where Theresa May is back in the firing line having been represented by deputy Damien Green last week. With the summer recess looming and the second round of Brexit negotiations having just begun, the PM needs a strong performance to shore up her position amid talks of cabinet infighting.”
On the corporate front, Reckitt Benckiser rallied as it agreed to sell its food business for $4.2bn (£3.2bn) to Schwartz spices owner McCormick.
Water company Severn Trent edged up after lifting its guidance for its business services division following the sale of its North American business.
Aviva nudged higher as it agreed to sell Friends Provident International for £340m to RL360, a subsidiary of International Financial Group, while RPC Group surged as it unveiled a £100m share buyback and said first-quarter revenue was “well ahead” of last year.
TalkTalk advanced as it said revenues in the three months to the end of June fell 3.2% as strong growth in its corporate and wholesale broadband revenues was offset by a drop in consumer revenues. However, the company maintained its full-year EBITDA guidance and said it continues to expect full year revenues to grow.
Ashtead gained ground after saying its North American business, Sunbelt Rentals, has agreed to buy Canadian rental equipment provider CRS Contractors Rental Supply for an initial cash consideration of CAD275m.
Low-cost carrier Wizz Air flew higher as it reported a 15.6% jump in first-quarter pre-tax profit as revenue rose, partly thanks to a strong performance over Easter, and shares in AA rose sharply as Barclays initiated coverage of the stock at ‘overweight’.
On the downside, Drax slumped as it posted a statutory pre-tax loss of £83m for the first half of this year compared to a £184.2m profit in the same period last year, while BHP Billiton nudged down after a mixed production update.
There are no major UK data releases due but in the US housing starts and building permits are at 1330 BST.
