JD Sports knocks out first half, Ocado delivers best growth in four years

London open

The FTSE 100 is expected to open 24 points higher on Tuesday, after closing 1.12% lower at 6,700.90 on Monday.

Stocks to watch

Sports, fashion and outdoor brand retailer JD Sports Fashion posted its interim results for the 26 weeks to 30 July on Tuesday, with revenue up 20% to £970.57m compared to the first half of last year. The FTSE 250 firm reported a gross profit margin of 48.1%, ahead of the 47.4% margin last year, with operating profit before exceptional items improving 63% to £77.65m. Profit before tax rose 73% to £77.41m, with basic earnings per ordinary share 69% higher than a year ago at 29.83p. JD’s board declared an interim dividend of 1.25p per share, just ahead of the 1.2p payout announced at the 2015 interim results.

Ocado claimed its best quarterly volume growth in four years, helping revenue growth accelerate to 15.4% in the third quarter. Although average order size was down and there remained "sustained and continuing margin pressure", gross group sales grew to £314m in the 12 weeks to 7 August.

Internet and telephone based insurer Esure confirmed plans to demerge financial services comparison website Gocompare.com from the company. The FTSE 250 firm said the demerger has the potential to enhance business growth, performance and shareholder value for the website, after a strategic review.

Newspaper round-up

Britain’s employers have refused to panic following the referendum vote, but new jobs are likely to become increasingly scarce as concerns over Brexit talks undermine business confidence. Recruitment agency Manpower said that, on the surface, the EU referendum had done little to dampen firms’ immediate recruitment plans. Official figures show employment is steady and the number of people claiming jobseeker’s allowance is falling. - Guardian

The already depressed odds of a Federal Reserve interest rate rise happening this month took a further hit on Monday after a senior policymaker set out a series of arguments for not rushing to an increase. Amid fevered speculation about the US central bank’s policy meeting next week, Lael Brainard called for caution on rates amid doggedly below-target inflation, risks from overseas and a limited arsenal to counter future economic setbacks. - Financial Times

Britain’s post-referendum recovery may prove to be a “mirage”, a leading credit rating agency has warned, as uncertainty about the country’s relationship with the European Union persuades companies to delay staff hiring and investment. Standard & Poor’s said signs of recovery should be treated with caution because a rebound in August only made up for ground lost in July. - Guardian

Industrial and commodities group Liberty House is in pole position to buy Tata’s speciality and pipe businesses in a deal that could save close to 2,000 jobs. The Daily Telegraph understands that Liberty House is the frontrunner for the businesses. An agreement to buy Tata’s units based in Rotherham, Stocksbridge and Hartlepool could come as early as this week. - Telegraph

Bob Diamond’s hopes of buying the African subsidiary of Barclays — the bank he used to run — have taken another knock after the US private equity group Carlyle pulled out of a consortium with the American former investment banker. A person familiar with the situation said Mr Diamond’s Atlas Merchant Capital investment vehicle remained interested in buying some or all of Barclays’ remaining stake in its African unit even after Carlyle walked away from the potential deal. - Financial Times

US close

US stocks finished in the green on Monday, as heated expectations the Federal Reserve will raise interest rates at its September policy meeting were given some relief.

The Dow Jones Industrial Average added 1.32% to 18,325.07 points, the S&P 500 rose 1.47% to 2,159.04 points and the Nasdaq 100 was up 1.78% to 4,764.65 points.

During the session, oil prices began reversing their weekend slides after OPEC said production from rival producers outside the organisation was going to be stronger than initially expected this year.

West Texas Intermediate crude added 0.35% to $46.04 per barrel and Brent edged up 0.35% to $48.18 per barrel.

Hawkish remarks by Fed policymakers last week fuelled speculation of a rate increase by the US central bank at the 20-21 September policy meeting.

Last Friday Boston Fed President Eric Rosengren and Dallas Fed President Robert Kaplan both argued that the case for an interest rate rise has strengthened.

Atlanta Fed President Dennis Lockhart on Monday said a "serious discussion" of whether to raise interest rates at next week's meeting was warranted given improving economic conditions.

But on Monday, investors were wooed by a speech from leading dove Lael Brainard.

"Foreign consumption and investment are weak, while foreign demand for savings is high, along with an elevated demand for safe assets," Brainard said.