(Alliance News) - Stocks in London are called to open lower on Thursday, giving up Wednesday's gains, as investors eye the US weekly jobs report.
The report will be announced at 1330 BST.
In early corporate news, the UK Competition & Markets noted a local concern in the Barratt and Redrow deal.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called down 0.6% at 8,121.10
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Hang Seng: up 0.5% at 16,955.33
Nikkei 225: closed down 0.7% at 34,831.15
S&P/ASX 200: closed down 0.2% at 7,682.00
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DJIA: closed down 234.21 points, 0.6%, at 38,763.45
S&P 500: closed down 0.8% at 5,199.50
Nasdaq Composite: closed down 1.1% at 16,195.81
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EUR: up at USD1.0937 (USD1.0936)
GBP: down at USD1.2693 (USD1.2723)
USD: down at JPY145.89 (JPY147.40)
GOLD: down at USD2,394.80 per ounce (USD2,399.30)
OIL (Brent): down at USD78.11 a barrel (USD78.64)
(changes since previous London equities close)
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ECONOMICS
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Thursday's key economic events still to come:
11:00 IST Ireland CPI
08:30 EDT US initial jobless claims
10:00 EDT US wholesale inventories
10:30 EDT US EIA natural gas stocks
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Demand for electric vehicles continues to drive a surge in used car sales in the UK, new figures show. Some 1.93 million cars changed hands in the UK between April and June, the Society of Motor Manufacturers & Traders said. That represented a 7.2% increase on the same period in 2023. The SMMT said this is partly a result of sustained growth in the new car market leading to better choice and availability of used cars. Sales of used battery electric cars rose by 52.6% year on year to take a record quarterly market share of 2.4% with nearly 46,800 transactions. The first six months of this year saw overall used car sales just 3.0% below pre-coronavirus pandemic levels. SMMT Chief Executive Mike Hawes said: "It's encouraging to see the used car market continue its recovery, with choice and affordability rejuvenated by the new car sector's sustained run of growth."
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BROKER RATING CHANGES
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HSBC cuts BP to 'hold' (buy) - price target 490 (530) pence
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COMPANIES - FTSE 100
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Persimmon reported that revenue in the first half of the year rose to GBP1.32 billion from GBP1.19 billion a year earlier. Pretax profit, however, fell to GBP146.3 million from GBP151 million. The housebuilder left its interim dividend unchanged at 20p each. Looking ahead, Persimmon said full year completions expected at the top end of guidance, and it is well positioned for improving market conditions. Chief Executive Dean Finch said: "The first half of the year has been strong with improved sales rates and robust average selling prices, despite ongoing affordability challenges. Strengthening consumer sentiment, improving macro-economic conditions and the government's welcome and ambitious planning reforms that demand more of the high quality, affordable homes that are Persimmon's core strength, are all supportive of our ambition to grow this year and in the future."
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Entain reported that revenue in the first half of the year rose to GBP2.52 billion, up 6.0% from GBP2.38 billion a year ago. It noted that the figure is up 8% at constant currency. Its pretax loss narrowed to GBP27.6 million from GBP448.1 million. Entain declared a 9.3p interim dividend, up 4.5% from 8.9p a year ago. Looking ahead, Entain upgraded its annual guidance. It now expects 2024 Online NGR growth on a proforma basis to be low single digit positive, with the company delivering Ebitda in the range of GBP1.04 billion to GBP1.09 billion. Interim CEO & Chair Designate Stella David said: "Entain's H1 results are clear evidence that our hard work improving the group's operational performance is bearing fruit. Whilst there is more work to do, we are pleased with the progress so far and look forward to building further on these solid foundations in H2 and beyond."
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The UK Competition & Markets Authority said the Barratt acquisition of Redrow raises competition concerns in one local area. The CMA said it has found concerns about Redrow merger at area around Barratt project in Whitchurch. Notably, the watchdog said the Barratt and Redrow merger does not raise UK-wide competition concerns. Barratt and Redrow have until Aug 15 to offer undertakings to CMA to address concerns. Matthew Pratt, CEO of Redrow, said, "Barratt and Redrow are two leading housebuilders, with strong reputations for quality, service and sustainability that have been decades in the making. Once the CMA process has completed, we are looking forward to our future as one team, accelerating the delivery of high-quality homes that the country so urgently needs."
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COMPANIES - FTSE 250
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PageGroup reported that revenue in the first half of 2024 fell to GBP898.0 million, down 13% from GBP1.03 billion a year earlier. Pretax profit plummeted 56% to GBP27.7 million from GBP63.3 million. PageGroup upped its dividend by 4.5% to 5.36p from 5.13p. Looking ahead, the firm said full year operating profit expected to be in the region of GBP60 million, in line with previous guidance. CEO Nicholas Kirk said: "The group experienced challenging market conditions across all regions in H1, with a softening in activity levels towards the end of the period, particularly in terms of new jobs registered and number of interviews undertaken. The conversion of interviews to accepted offers continues to be a significant area of challenge, as candidate and client confidence remains subdued, reflecting the macro-economic uncertainty in the majority of our markets."
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OTHER COMPANIES
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CRH reported that revenue in the first half of the year rose to USD16.19 billion from USD16.14 billion a year earlier. Pretax profit climbed to USD1.83 billion from USD1.54 billion. CRH upped its second quarter dividend to 35 US cents, up 5% annually. Looking ahead, CRH upgraded its full year guidance. It said net income guidance is expected to be up to USD3.85 billion for 2024, up from a high of USD3.80 billion previously. Adjusted Ebitda is expected to reach up to USD5.60 billion for 2024 from up to USD5.45 billion previously. CEO Albert Manifold said: "The execution of our differentiated solutions strategy continues to deliver robust financial performance, while the strength of our balance sheet and relentless focus on the disciplined allocation of our capital enables us to capitalize on the opportunities we see for further growth and value creation. Reflecting the strength of our financial performance, the positive underlying momentum in our business as well as the positive contribution from recent portfolio activity, we are raising our guidance and remain well positioned to deliver another record year in 2024." On Wednesday, the company completed the latest tranche of the share buyback programme, bringing the year-to-date buybacks to USD900 million. CRH announced that it has begun a new USD300 million share buyback tranche, which will be completed by November 6.
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By Sophie Rose, Alliance News senior reporter
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