IG finishes year strongly, Alliance and RIT confirm talks

Stocks to watch

IG Group reported solid trading in the fourth quarter and said earnings for the year are set to be slightly ahead of expectations. In a very brief trading update, the company said it performed well during what was a relatively quiet period in financial markets, with all key operating and financial metrics remaining strong. “As outlined in the third quarter trading update, this continued robust performance has resulted in higher variable operating costs in the last part of the year, including an increase in online marketing spend, where the payback remains compelling,” IG said.

Alliance Trust said it has received an unsolicited, informal approach from fellow FTSE 250 investment trust RIT Capital Partners that proposed a merger of the two companies. Alliance stressed that "no detailed terms" were provided by RIT and it will incorporate any formal offer within its recently started internal strategic review.

Newspaper round-up

HSBC’s Stuart Gulliver is the European bank chief executive who investors would most like to be replaced, according to a recent poll of large shareholders. When 74 institutional investors were polled by Autonomous Research and asked to each name three banks in Europe “most in need of a change in CEO”, Mr Gulliver, who has run the region’s biggest lender since 2011, won by a chunky margin. - Financial Times

UK companies have become gloomier about their trading prospects and the economic outlook as the EU referendum approaches, according to a survey. Lloyds Bank’s latest barometer of business mood found confidence about trading prospects dipped to a three-year low in May, with overall business confidence and hiring plans also down. - The Guardian

A third of bosses at Britain’s biggest public companies say they have spent up to £1 million preparing for the consequences of leaving the EU. A survey of senior board members at FTSE 350 companies has found that almost 7% intend to relocate parts of their UK operation should the nation vote to leave on June 23 and 17% said they would consider moving if there were a vote for Brexit. - The Times

US close

US markets were closed on Monday for the Memorial Day holiday.