London open: Stocks nudge higher despite profit warnings; jobs data eyed

Stocks in London edged higher in early trade despite a series of profit warnings, as investors looked to the release of some key jobs data.

At 0830 GMT, the FTSE 100 was up 0.3% to 7,242.94. Meanwhile, oil prices ticked higher, with West Texas Intermediate up 0.4% to $52.69 a barrel and Brent crude up 0.5% to $55.75.

In currency markets, the pound was down 0.5% to $1.2339, having made strong gains in the previous session on the back of Prime Minister Theresa May’s Brexit speech.

Spreadex’s Connor Campbell said: “That leaves most of the currency’s post-May Brexit speech gains intact it does suggest that investors aren’t too keen to send it above $1.24 and €1.16 respectively. As for the FTSE, sterling’s early shyness only helped it post a meagre five point rise, meaning the index is still more than 100 points from the highs it hit at the start of the week.

“The focus this morning is likely to remain on the pound as it processes the UK jobs data. For the three months to the end of November wage growth is expected to creep up to a fresh one year-plus high, with the unemployment rate forecast to come in unchanged at 4.8%. The claimant count change reading for December, meanwhile, is set to rise to 4.6k from 2.4k, though with some chunky revisions likely to be made to that latter number. If accurate these figures probably aren’t enough to inspire another round of remarkable growth for the pound, though it could ease its current losses.”

The UK claimant count, unemployment rate and average earnings are due at 0930 GMT. In the US, the consumer price index is at 1330 GMT and the NAHB housing market index is at 1500 GMT.

In corporate news, Burberry edged higher after posting 4% growth in underlying retail sales for the third quarter, boosted by a return to growth for the Asia Pacific region but with the Americas still in decline.

Ladbrokes Coral was on the front foot as it said 2016 profit is likely to rise in line with market and management expectations.

Vodafone pushed up after announcing that it and TDC Group have agreed to renew their strategic partnership for Denmark and Norway, building on a successful fifteen-year relationship that began in 2001.

On the downside, education publisher Pearson – which has already issued a string of profit warnings in recent years – tanked after it cut its profit forecast for this year and said the dividend will be lower.

Outsourcer Mitie was also under the cosh following its third profit warning since September and as it announced the appointment of a new finance director.

Shares in Premier Foods, which owns the Mr Kipling and Bisto brands, were also hit by a profit warning, as the company said trading profit for full-year 2016/17 is now expected to be 10% lower than previously anticipated, and announced a cost saving and efficiency programme.

Pub group JD Wetherspoon nudged lower after saying it expects profits to drop in the second half of the year due to rising costs and weaker sales.

Information services company Experian was on the back foot after reporting a 4% rise in third-quarter organic revenue as it maintained its guidance for the full year.

Market Movers

FTSE 100 (UKX) 7,242.94 0.31%
FTSE 250 (MCX) 18,240.29 -0.00%
techMARK (TASX) 3,384.45 0.30%

FTSE 100 - Risers

Dixons Carphone (DC.) 352.40p 1.70%
Burberry Group (BRBY) 1,619.00p 1.63%
Mondi (MNDI) 1,765.00p 1.55%
British American Tobacco (BATS) 4,648.50p 1.50%
Compass Group (CPG) 1,444.00p 1.33%
Unilever (ULVR) 3,363.50p 1.29%
Reckitt Benckiser Group (RB.) 6,854.00p 1.21%
HSBC Holdings (HSBA) 674.50p 1.14%
United Utilities Group (UU.) 896.00p 1.01%
InterContinental Hotels Group (IHG) 3,719.00p 0.90%

FTSE 100 - Fallers

Pearson (PSON) 616.50p -23.70%
Capita (CPI) 500.00p -3.38%
Experian (EXPN) 1,540.00p -2.41%
Royal Mail (RMG) 440.90p -1.36%
Taylor Wimpey (TW.) 171.00p -1.16%
International Consolidated Airlines Group SA (CDI) (IAG) 486.00p -1.12%
Barratt Developments (BDEV) 515.50p -1.06%
Standard Life (SL.) 348.40p -0.88%
Barclays (BARC) 229.80p -0.78%
Anglo American (AAL) 1,314.00p -0.76%

FTSE 250 - Risers

Hochschild Mining (HOC) 243.00p 4.38%
Ladbrokes Coral Group (LCL) 129.30p 3.86%
Spectris (SXS) 2,488.00p 3.32%
Henderson Group (HGG) 240.60p 2.34%
PZ Cussons (PZC) 335.30p 1.61%
Capital & Counties Properties (CAPC) 284.10p 1.25%
Britvic (BVIC) 593.00p 1.19%
Smith (DS) (SMDS) 432.10p 1.17%
Rightmove (RMV) 4,132.00p 1.08%
Booker Group (BOK) 186.60p 0.97%

FTSE 250 - Fallers

Mitie Group (MTO) 186.00p -9.49%
Inmarsat (ISAT) 667.00p -5.39%
Crest Nicholson Holdings (CRST) 499.80p -2.19%
International Personal Finance (IPF) 168.60p -1.98%
Redefine International (RDI) 39.69p -1.76%
SSP Group (SSPG) 390.40p -1.56%
John Laing Group (JLG) 260.00p -1.44%
Virgin Money Holdings (UK) (VM.) 307.00p -1.29%
Essentra (ESNT) 438.20p -1.28%
Bellway (BWY) 2,564.00p -1.23%