London open: Shares drift lower amid lack of fresh catalysts

London stocks dipped at the start of trading following a downbeat session overnight in the US and mixed trading in Asia.

As of 0826 BST the FTSE 100 was trading 34.12 points lower than Wednesday’s close at 6,801.66, with much focus around the world on Friday's annual conference of central bankers in Jackson Hole, Wyoming.

CMC Markets’ Michael Hewson said: “It’s quite likely that trading could well be quite light given this week’s almost laser-like focus on tomorrow’s event in Jackson Hole, and Fed chief Janet Yellen’s speech, which is likely to turn out to be one great big anti-climax.

“The performance of the pound in the past few days has been a testament to the recent improvement in UK data with the currency posting its first consecutive run of three day gains since early July. As we look ahead to tomorrow’s Jackson Hole symposium attention will inevitably turn to the state of the US economy again this afternoon and in particular the US consumer.”

On the macroeconomic front, there are no major UK data releases due but in the US, durable goods orders and initial jobless claims are at 1330 BST. Markit’s US services PMI is at 1445 BST.

A reading on German business confidence at 0900 BST, courtesy of the IFO institute, will also be closely watched.

In corporate news, building materials group CRH was top of the leader-board as it winched its half-year dividend a touch higher after making more progress with its deleveraging and reporting the early stages of an economic recovery in Europe.

Having been flat in the first quarter, European sale rose 3% in the six months to 30 June, which coupled with a slight slowing in the Americas and Asia, saw interim group revenue grow 35% to €12.7bn and feed through to reported earnings before interest, tax, depreciation and amortisation (EBITDA) more than double to €1.12bn.

Events and publishing group Ascential has acquired US-based OneClickRetail.com for an intial $44m in cash plus earn-out payments based on future profits that could take the total to $225m.

The addition of One Click, which was founded in 2013 by former Amazon and Walmart executive Spencer Millerberg, is expected to be enhancing to adjusted earnings per share in the first full year of ownership, with the purchase funded from existing cash resources.

Gambling software developer Playtech reported a drop in first-half profit as it took a hit from fluctuations in sterling, but revenue grew and the company declared a special dividend.

Chairman Alan Jackson said: “Playtech has made significant progress in 2016 as we have delivered on our strategic objectives.

"The gaming division continues to deliver strong growth, driven by our industry-leading Casino offering. We have 'locked-in' future growth with important new licensees signed and significant contracts renewed.”

Market Movers

FTSE 100 (UKX) 6,799.91 -0.52%
FTSE 250 (MCX) 17,923.59 -0.51%
techMARK (TASX) 3,478.43 -0.63%

FTSE 100 - Risers

CRH (CRH) 2,547.00p 3.16%
WPP (WPP) 1,811.00p 1.74%
Vodafone Group (VOD) 234.40p 0.47%
National Grid (NG.) 1,067.00p 0.33%
HSBC Holdings (HSBA) 542.70p 0.30%
Sage Group (SGE) 726.50p 0.07%
SABMiller (SAB) 4,373.00p 0.07%
SSE (SSE) 1,519.00p 0.07%
ARM Holdings (ARM) 1,689.00p 0.06%
United Utilities Group (UU.) 969.00p 0.00%

FTSE 100 - Fallers

Glencore (GLEN) 177.05p -3.78%
Shire Plc (SHP) 4,890.00p -2.69%
Dixons Carphone (DC.) 376.90p -2.61%
Anglo American (AAL) 826.60p -2.59%
Hammerson (HMSO) 575.50p -2.54%
BHP Billiton (BLT) 1,030.50p -2.04%
Hikma Pharmaceuticals (HIK) 2,188.00p -1.80%
Prudential (PRU) 1,356.50p -1.70%
Travis Perkins (TPK) 1,668.00p -1.59%
AstraZeneca (AZN) 5,003.00p -1.52%

FTSE 250 - Risers

Playtech (PTEC) 937.50p 4.22%
Shawbrook Group (SHAW) 211.90p 3.72%
OneSavings Bank (OSB) 284.20p 2.49%
Genus (GNS) 1,882.00p 2.28%
Millennium & Copthorne Hotels (MLC) 436.60p 2.27%
Caledonia Investments (CLDN) 2,440.00p 2.22%
Allied Minds (ALM) 417.10p 1.98%
John Laing Group (JLG) 240.50p 1.78%
Aldermore Group (ALD) 149.60p 1.77%
Kennedy Wilson Europe Real Estate (KWE) 975.00p 1.51%

FTSE 250 - Fallers

Hochschild Mining (HOC) 269.50p -5.11%
Just Eat (JE.) 551.50p -3.08%
Woodford Patient Capital Trust (WPCT) 91.00p -2.83%
Thomas Cook Group (TCG) 69.05p -2.47%
Carillion (CLLN) 289.10p -2.40%
Countrywide (CWD) 265.00p -2.36%
Wood Group (John) (WG.) 704.50p -2.36%
Indivior (INDV) 312.10p -2.35%
Vedanta Resources (VED) 523.00p -2.06%
Worldwide Healthcare Trust (WWH) 2,114.00p -1.95%