ADVFN Morning London Market Report: Tuesday 6 March 2018

At 0830 GMT, the FTSE 100 was up 0.8% to 7,175.15, while the pound was down 0.2% against the euro at 1.1207 and 0.1% weaker versus the dollar at 1.3833.

Stocks in the US ended in the black overnight after Paul Ryan and other Republicans voiced their concerns over a possible trade war and urged the White House not to go ahead with President Donald Trump’s plans to impose tariffs on imported steel and aluminium.

Spreadex analyst Connor Campbell said: “While this signals yet more destabilising discord for the President, investors’ primary focus was on the tariff-blocking obstacles created by Ryan and co, and their relief was immediate to see.”

Back in the UK, investors were digesting the latest data from the British Retail Consortium, which showed like-like-sales volumes were up 0.6% on the year in February, unchanged from the previously month but above the expected 0.4% increase. Meanwhile, year-on-year growth in total sales rose 1.6% from 1.4% in January.

Non-food retail sales fell by 1.1% on a like-for-like basis and were down 2.4% in store, while food sales increased 2.8% on a LFL basis.

The BRC’s measure of shop price inflation eased to -0.8% in January, from -0.5% in January.

Pantheon Macroeconomics said: “Growth in retail sales continued to match last year’s average rate in February, indicating that consumers’ spending is not about to step up and make a bigger contribution to GDP growth.”

In corporate news, Smurfit Kappa surged after saying it has rejected an “unsolicited and highly opportunistic” takeover approach from International Paper Company of the US. The proposed acquisition would have meant International Paper paying cash and shares for Smurfit Kappa, leaving shareholders of the Dublin-based company with a minority stake in the combined business. Peers Mondi and DS Smith gained ground, with Mondi also boosted by an upgrade to ‘outperform’ from ‘neutral’ at Credit Suisse.

William Hill edged higher after the bookmaker agreed to dispose of its Australian business for A$300m to CrownBet.

Inspection, product testing and certification company Intertekrallied after it posted a jump in full-year pre-tax profit as revenue grew and the company lifted its dividend.

Anglo American was in the black as it said sales of rough diamonds at De Beers fell on the month but rose on the year in the second cycle of 2018.

EasyJet flew higher as it said passenger numbers rose 4% last month, while the load factor ticked up. to 93% from 92% in February last year.

Bodycote rose as it posted a 27% jump in 2017 pre-tax profit, partly thanks to a return to growth in general industrial markets, while brick maker Ibstock racked up strong gains after reporting a drop in full-year profit but a 7% increase in adjusted earnings.

On the downside, Just Eat tumbled as it delivered full-year results with extra toppings of revenues above its guidance and profits that exceeded analysts’ forecast, but highlighted a rise in costs and competition.

Rotork fell as it posted an 11.5% decline in full-year pre-tax profit, while Sirius Minerals retreated following the release of its 2017 results.

Retirement housebuilder McCarthy & Stone was in the red as it said it expects first-half revenues of £240m versus full-year expectations of £730m.

Office space provider IWG was on the back foot as it posted a 14% drop in full-year pre-tax profit following a weak third-quarter for its mature business in the UK, with London a weak spot, although it struck an upbeat note on the outlook.

Temporary power provider Aggreko was firmly lower as it said pre-tax profit for 2017 declined 12% to £195m.

In broker note action, Petrofac was upped to ‘buy’ from ‘hold’ atJefferies, while Travis Perkins was cut to ‘hold’ at the same outfit.

Lloyds was downgraded to ‘neutral’ at Exane, while Hastings was cut to ‘neutral’ at UBS.