- FTSE 100 down 31 points to 8294
- GSK tumbles on US vaccine restriction
- DS Smith tops risers as takeover confidence grows
4.08pm: Mixed picture for markets
UK stocks are mixed, with the FTSE 100 index down 0.38% now, with all but four of the 15 largest names now in the red, while the FTSE 250 continues to blithely rise, up 0.26%.
So are those in the US, with the S&P 500 flat but the Dow Jones up 0.24% and the Nasdaq Composite up 0.10%.
In Europe, Germany's DAX is the only major benchmark in the green, led by MTU Aero and Heidelberg Cement.
The fall in the FTSE has is due to a vaccine blow for heavyweight member GSK and a number of large blue-chips going ex-dividend, including British American Tobacco, Burberry and Berkeley Group.
GSK has gone from a multi-decade high to four-month lows, notes Chris Beauchamp, chief market analyst at IG, now trading at around 9 times earnings.
"Investors who think that the reaction has been overdone might be tempted to go bargain-hunting at these levels," he says.
Looking across the pond, he says: “US stocks have rediscovered some of their upward momentum this afternoon, though we are now less than 24 hours away from tomorrow’s PCE price data.
"Should this point towards a further slowdown in price growth then the final day of June trading might go the same way as May’s, which saw a strong rally. A softer PCE reading could renew hopes of a September rate cut, which have taken a knock of late."
Fawad Razaqzada, market analyst at City Index, has been looking at the Nasdaq 100 charts and notes that the index has consistently broken all-time highs, "with no obvious reference points for further gains if it surpasses the 20K mark".
"In this context, Fibonacci extensions and measured move objectives become essential tools," he suggests.
(And who are we to argue with the magic of charting, as essentially it is a self-fulfilling prophesy as so many traders keep an eye on it.)
"The Nasdaq has already reached the 200% extension of the March-April downswing at 19,962. The 261.8% Fibonacci extension of the same swing is significantly higher at 20,887, serving as a potential bullish objective."
In terms of support levels, Razaqzada suggests immediate hurdles are at 19,650 and 19,470, with a more significant support level around 19,100, where the bullish trend line from April is located.
OK, if you say so, Fawad.
3.40pm: Thoughts on US data
Economist Oliver Allen at Pantheon Macroeconomics had expected a partial rebound in May's pending home sales because the 7.7% plunge reported in June was the largest single-month fall in more than three years.
"The further decline in last month takes the index to its lowest level in its 24-year history.
"Pending home sales had been running hot relative to the weak level of mortgage demand for some time, but now the two series have now fallen back into line.
"Mortgage demand remains very weak, suggesting that a meaningful rebound in June is unlikely.
"More generally, we suspect that home sales will struggle in Q3, as mortgage rates remain very high by the standards of the past couple of decades, and the labor market is weakening."
He notes that pending home sales tend to lead existing home sales by around a month, due to the usual lags between contract signings and closing.
"Existing home sales recently have been a bit stronger than suggested by pending sales, but a meaningful decline in existing sales in June now seems likely. New home sales also will probably be much weaker in Q2 overall than in Q1."
All in all, this is "adding to the drags on headline growth from net trade and equipment investment suggested by today’s advance goods trade and durable goods orders reports".
3.32pm: US home sales remain negative
US housing market data is out and is another sign that the economic wobble.
Pending home sales fell 2.1% last month, the National Association of Realtors (NAR) reported, down 6.6% year on year. The previous month both figures were down over 7%.
Home sales fell in the South and the Midwest on a monthly basis, but rose in the Northeast and West. On an annual basis, all regions saw reductions.
"The market is at an interesting point with rising inventory and lower demand,” said NAR chief economist Lawrence Yun.
"Supply and demand movements suggest easing home price appreciation in upcoming months. Inevitably, more inventory in a job-creating economy will lead to greater home buying, especially when mortgage rates descend."
3.21pm: London Tunnels completes IPO
London Tunnels PLC floated in Amsterdam today and was welcomed with open arms by investors.
Despite being based in, named after and originally planning its IPO in the UK capital, the company plumped to list in the Dutch Euronext exchange.
The shares rose to 214p on debut, up 7% from the £2 price at which raised its pre-listing funds and was capitalised at £130 million.
CEO Angus Murray said: “We thank Euronext Amsterdam for their warm welcome. With the size and scale of both the equity and debt capital markets, the sound ecosystem and business environment in the Netherlands, we are confident that this listing will increase our ability to tap into the capital markets."
He said the company "will seek to raise capital over the coming years to realise our vision of creating an unparalleled tourist attraction", having just received the first planning permission from the City of London.
2.49pm: US stocks start on front foot
Wall Street stock market benchmarks have started higher, confounding those futures market predictions.
More predictably, the Nasdaq exchange is leading the way, with the composite index up 0.34%, while the S&P 500 has risen 0.17% and the Dow Jones is just above flat. The small cap Russell 2000 index is up 0.17%.
While Nvidia and Tesla are both in the red, the rest of the US tech giants are moving higher.
Walgreens Boots is the biggest Nasdaq faller, down 22.3%, followed by Micron Technology Inc, down 5.7%.
Back in London, the FTSE 100 is still down 0.18%, while the FTSE 250 is continuing to climb, rising 47 points or 0.23%.
2.28pm: M&A dealmaking makes a comeback
Listed companies led a comeback for global merger & acquisition in the first half of 2024 after last year saw the lowest total in almost a decade.
Global M&A volume grew 17% to $1.6 trillion, with corporate buyers accounting for 73% of announced deal volume and US companies 57% of total deals.
North American deals reached $864 billion, up 33% from a year ago, including Capital One's $35.3 billion acquisition of Discover Financial and ConocoPhillips (NYSE:COP, ETR:YCP) agreeing to buy Marathon Oil last month.
European and Middle East volumes grew 33% to US$438 billion, driven by 41 deals above $2 billion, with notable activity in the UK and technology sector, and a rise in buyout activity.
Asia Pacific M&A fell 26%, with China losing its second position worldwide, while delistings and take-private deals rose.
Mergermarket chief Lucinda Guthrie says: "A resurgence in North American dealmaking led to an increase in overall deal volume, as large corporations have capitalized on this period of relative stability to spur growth and address declining share prices."
2pm: FTSE and Wall Street futures cut losses after lacklustre US data
The FTSE 100 cut its losses to just six points a short while ago and the FTSE 250 is in positive territory now, while US futures are also pointing to a smaller dip at the open there.
What's changed? It's after a big US data dump. US gross domestic product grew 1.4% in the first quarter of 2024, revised up from the second estimate of 1.3% annualised growth.
The data from the Bureau of Economic Analysis was slightly lacklustre and was partly due to a smaller drag external trade.
Real consumption growth was revised down to 1.5% from 2.0%, as the PCE deflator was estimated to have increased by 3.4% annualised, rather than 3.3%.
"The full implications for the second quarter of those revisions to consumer spending and prices won’t become clear until we have the monthly breakdown available tomorrow morning," said Thomas Ryan at Capital Economics.
"Nevertheless, with first-quarter real personal disposable income growth also revised down, by 0.6% points to only 1.3%, this adds to the evidence that consumers are now struggling a little more under the weight of higher rates and prices."
In company news, Boots owner Walgreens Boots Alliance Inc stock has plunged 17% after the retailer’s quarterly earnings fell short of estimates and it lowered guidance again.
Levi Strauss & Co (NYSE:LEVI) also ripped 15% lower after quarterly earnings disappointed.
Blackberry (TSX:BB) Ltd shares pointed higher after the telecoms tech company reported better-than-expected financials for its first quarter.
1.01pm: Wall Street heading lower
US stock markets are expected to head lower when trading begins shortly.
Futures for the Dow Jones are pointing to a 0.19% fall, while Nasdaq 100, S&P 500 and Russell 2000 futures are down 0.16%, 0.13% and 0.13% respectively.
This follows an uneventful session on Wednesday, when the major indices closed little-changed.
Investors are holding fire ahead of tomorrow’s key US inflation release, says market analyst David Morrison at Trade Nation.
Core personal consumption expenditure (PCE) inflation is the Federal Reserve’s preferred measure of the cost of living, against which the Fed measures its 2% inflation target.
"It is a significant release, even if it’s the CPI which tends to garner most of the headlines," says Morrison.
Today we have US GDP, durable goods, the goods trade balance, retail inventories and jobless claims.
Looking at individual stocks, International Paper Co (NYSE:IP) is down 11% premarket after Brazilian suitor Suzano walked away.
Nvidia is down 1.8% premarket, Microsoft is flat and Apple is up 0.4%.
12.05pm: FTSE remains in red
The FTSE 100 index graph is continuing to zigzag lower, with GSK, defensives and miners leading the decline.
GSK shares are down 5.6% after a US ruling on its RSV vaccination.
Burberry Group PLC (LSE:BRBY) is down 4.4% as analysts preview its next quarterly update, due next month.
Other big fallers holdings the index back are because their shares are going ex-dividend today, including British American Tobacco, Burberry, B&M and Berkeley Group.
In the background, the BoE's latest financial stability report said risks to the UK financial system are "broadly unchanged" since the first quarter, but with many asset prices having continued to rise it said a risk of a sharp correction in markets remains.
Top of the leaderboard is still DS Smith as its takeover looks ready to go, while fellow paper and packaging group Mondi is right behind it.
BP and fellow oil giant Shell are both among the top 10 risers.
The FTSE 250 is led by Moonpig Group PLC (LSE:MOON), with the online greetings card retailer getting an oversized 'CONGRATULATIONS!' missive from the market for its full-year numbers, where profits increased 33%. The shares are up 10%.
11.45am: BP green watering down could be storing up problems
Reports suggesting BP’s chief executive Murray Auchincloss is set to further water down the company’s energy transition efforts "could go down well with investors in the short term but they could store up longer-term problems for the business," says AJ Bell analyst Russ Mould.
“Having replaced Bernard Looney, who unveiled the company’s net zero strategy to some fanfare at the start of 2020, Auchincloss had some space to make a more aggressive move in this direction.
“Poor recent share price performance had also put him under some pressure to take radical action with a diminished BP at risk of falling prey to a larger predator," Mould says.
“The motivation for taking the route of a slower energy transition might be to secure a better valuation from the market, more in line with US peers which have not made the same kind of environmental commitments."
Auchincloss is following the path forged by his counterpart at Shell.
The decisions, however, could store up longer-term problems for the business, says Mould.
“By walking back its environmental pledges, BP risks the ire of campaigners, the wider public and, more seriously, politicians and regulators.
“The energy industry has been plagued in the past by problems relating to its cyclical nature, with professionals in this space facing waves of redundancies during fallow periods. This has resulted in an aged workforce and has seen expertise leave the sector.
“A hiring freeze now could make it more difficult to fill jobs when BP needs to in the future and, having muddied any green credentials, BP may struggle to attract new, younger talent given this demographic tends to be more concerned about the impact of climate change.”
11.34am: Why are markets down?
Stocks are struggling for direction this week, says Kathleen Brooks, research director at XTB, with the FTSE 100 down 0.8% over five days, the S&P 500 down 0.16%, the Nasdaq is lower by 0.32% and the Eurostoxx 60 index down 0.3%.
"For now, the sell off is mild, but there is a sense of lethargy in global stock markets right now," says Brooks, adding that the bond market was driving sentiment as global sovereign bonds sold off, pushing up bond yields.
While the Bank of England earlier warned of the continued risk of a market correction, the selling has remained mild today, with UK 10-year Gilt yields up 3 basis points today, French yields up 2 basis points and the US 10-year Treasury yield up by 1 basis point.
"The 10-year UK Gilt yield is higher by 13 basis points so far this week. While it may not sound like a lot, this is a big move for the bond market, and it can have a ripple effect on other markets," Brooks says.
There is a strong positive correlation between the UK 10-year Gilt yield and the US 10-year Treasury yield, which have moved together nearly 80% of the time so far this year.
"This means that when US Treasury yields are moving, the chances are UK Gilt yields will follow, since the Treasury market is the most important bond market in the world.
As the 10-year Gilt yield also has a mildly negative correlation with the FTSE 100 and the 10-year Treasury yield also has a negative relationship with the S&P 500, it means "when bond yields rise, stocks tend to sell off".
European markets have been "somewhat indecisive" today, says market analyst Joshua Mahony at Scope Markets.
The FTSE is down 0.25%, while the benchmarks of France, Spain and Italy are down 0.5-0.7%, while the early gains for the German DAX are now erased
"While we saw early gains for French stocks, the fact that we are seeing them fade once again comes as no surprise as we approach the weekend election," says Mahony, with yesterday seeing another poll point towards gains for the far-right National Rally party.
A Bloomberg poll of polls has NR and its allies at 36% of the vote, which remains well below the 50% marker, highlighting the fact that we will likely have to wait until a week on Sunday to find out the result.
"With that in mind, traders should expect a jittery period ahead, with the fears of a fresh surge in borrowing costs and financial instability driving potential CAC and euro weakness," he says.
Today the US economy comes into focus again, with the final GDP and core durable goods orders data released ahead of tomorrow’s crucial core PCE inflation release.
"Signs of weakness in the jobs market have started to spread through alternate areas of the economy, with yesterday’s new home sales figure falling to a 2024 low.
"While the Fed will be concerned that we are seeing tentative signs of distress across parts of the US economy, the question over at which point it influences to Fed to react remains key," says Mahony.
11am: DS Smith tops FTSE leaderboard after suitor situation clears
DS Smith is up over 6%, topping the FTSE 100, after news filtered through that makes its takeover by International Paper Co (NYSE:IP, ETR:INP) more likely.
Brazilian pulp maker Suzano said it had ended talks to buy IP as the US paper and packaging group had not been interested in the highest price it was willing to pay.
Suzano said it had raised its offer to "the maximum price" for the transaction to generate value, but this had been "without engagement from the other party".
"Therefore, in observance of its commitment to capital discipline, Suzano formalizes that it will not pursue a transaction involving the acquisition of International Paper," it said.
DS Smith agreed to a takeover by IP for £5.8 billion in April.
10.56am: Is 'Swiftonomics' a lie?
Taylor Swift is on the European leg of her world tour, with her performances in venues like Wembley Stadium and Anfield touted by some to generate £1 billion for the UK economy.
The tour's popularity is so large that it has been placed on par with the Olympic Games in France and the Euros in Germany as the key events expected to help boost European economies at a time when a recession is close in the rear-view mirror.
However, not everyone is convinced that "Swifonomics" is real.
Looking at her performances in Stockholm over three dates in May, the artist was able to sell around 180,000 tickets, generating some US$81 million for the city.
However, when zooming out and looking at Sweden's overall economy, the concert makes very little impact on the country's US$623 billion annual output.
Carl Bergkvist, chief economist at Stockholm's chamber of commerce, told Reuters: “This extra turnover is a great weekend boost for Stockholm and in particular, its tourism sector.
"But it’s just that — a weekend, with no visible or significant impact on overall economic growth.”
Carsten Brzeski, an economist at ING, echoed similar thoughts, calling the Swift effect "extremely small and temporary, at best".
"There is copious research in the run-up to big events outlining the economic benefits but after the fact you need a magnifying glass to find these so-called benefits in the numbers," he said.
10.45am: BoE financial stability report
The Bank of England has issued its latest financial stability report, where it says risks to the UK financial system are "broadly unchanged" since the first quarter.
But it noted that some asset prices have continued to rise, while there remains a risk of a sharp correction in markets.
European markets are up around 8% so far this year, while the US Nasdaq Composite index has surged by 18%.
"The prices of many assets such as shares and bonds remain high relative to historical norms, and some have continued to rise," the report says.
"This suggests that investors in financial markets are continuing to expect the economy to recover and inflation to fall. They are placing less weight on risks, such as geopolitical developments or continued high inflation, that might cause weaker growth or interest rates to stay higher than expected.
"These risks make it more likely that there could be a sharp correction in asset prices that could ultimately make it more costly and difficult for UK households and businesses to borrow."
10.27am: UK car manufacturers pile pressure on incoming government
Car manufacturers in Britain are placing more pressure on the incoming government after it demanded support, days after Vauxhall's owner Stellantis threatened to shut its production factories in the UK.
The Society of Motor Manufacturers and Traders (SMMT) has urged the next government to "back British manufacturing" by offering tax cuts and changes to regulation, which is expected to help with the adoption of EVs.
"Maintaining the status quo is not an option,” the lobby group said, claiming that the UK was at risk of being "outcompeted" by the US, China, and the European Union.
Mike Hawes, chief executive of the SMMT, said: “Massive change is underway in the UK’s car factories as manufacturers retool for new electric models.
“Amid strong international competition for green automotive investment, however, the UK needs to ensure it has the most attractive conditions for manufacturing businesses and a compelling offer for existing and new investors."
Earlier this week, Stellantis UK boss Maria Grazia Davino warned the company could stop making vans in the UK due to the government's targets for EVs.
She claimed government sales mandates for zero-emission vehicles "could be very damaging" for its operations.
10.05am: Bunzl shares move higher as margin increases grow earnings
Bunzl shares are up close to 1% after it upgraded its guidance for the year based on improved margin performance in the first half of the year and previous acquisitions.
Analysts at Shore Capital said the increase in margins is expected to add 2% to 3% to its earnings.
Revenue growth in 2024 is expected to be "robust", while the group's operating profit margin is now expected to be "slightly above" 2023 levels.
For the first half of the year, sales are expected to be down 3-4%, with underlying revenue falling 5%.
"Whilst the current half is set to see revenue challenges, we look for a return to positive organic development metrics in H2," said Robin Speakman at Shore Capital.
"A strong balance sheet remains a feature of Bunzl supporting the acquisitive growth strategy.
"Cash generation continues to deliver asset allocation options and... Bunzl retains material firepower to further its acquisitive and organic development strategy as a ‘cash compounder’."
9.44am: Global inflation nerves won't stop rate cuts, says analyst
Analysts do not believe the unexpected rise in inflation in Canada or Australian CPI hitting six-month highs will affect the UK's chances of rate cuts this summer.
Following Canada's inflation surprise a month after its central bank cut rates, economists are now readying for a 45% chance of another in July, down from a 70% likelihood earlier this week.
Meanwhile, there is a 50/50 chance Australia will hike interest rates by 0.25% by September.
Yet, analysts at UBS aren't convinced these two issues will affect the global rate cutting cyle.
"Noisy inflation data may be sufficient to keep policymakers cautious in their moves, but the global disinflationary process is well established, in our view," analysts at the Swiss bank said.
"Easing price pressures and other economic considerations should encourage central banks to start or continue cutting rates.
"In the US, while Federal Reserve Governor Michelle Bowman this week said keeping policy on hold for some time is likely necessary, we believe incoming data on inflation, growth, and the labour market will justify a first cut in September.
"Across the Atlantic, a growing number of policymakers at the Bank of England highlighted that their decision to remain on hold last week was finely balanced, and we expect the European Central Bank to ramp up policy easing in the coming months."
9.31am: Halfords shares rise as investors shrug off profit slide
Halfords Group PLC (LSE:HFD) shares have jumped 5% as the car parts and cycle retailer revealed its full-year sales ticked close to 8% higher reaching £1.70 billion.
However, the group’s underlying profit before tax stood at £36.1 million, down 8%, as it faced external headwinds affecting the consumer tyres and cycling markets.
Its strategically important Services business has now become the largest revenue segment, accounting for over half of the business's total revenue.
Halfords reported achieving market share gains in all four of its core markets. The gross margin saw a slight decline to 48.5%, down 40 basis points from the previous year.
Cost efficiency was a major highlight, with the Group delivering cost savings of over £35 million, exceeding its original target of £30 million. This brings the total cumulative savings to approximately £70 million over the last three years.
CEO Graham Stapleton said: "This has been a year of strong strategic and operational progress for Halfords, and we are pleased to have delivered a resilient financial performance against challenging core markets.
"We have continued to invest in our strategically important Services business, which for the first time now represents over half of our total revenues."
As of the end of the fiscal year, Halfords managed to reduce its retail inventory by £24 million, maintaining a strong balance sheet with net debt, excluding leases, at £8.2 million.
9.17am: Cooling jobs market fuels rate cut talks
Hopes that the Bank of England will cut rates this summer are growing after fresh data indicated that the jobs market is cooling.
Job openings fell by a fifth in the last year, a sharp turn from the post-pandemic boom in offerings, new research from Indeed found.
For the first time since the end of lockdown in Spring 2021, the amount of job openings on the online platform has dropped to below its pre-pandemic level.
A tight labour market may indicate to the BoE that it is fuelling persistent inflation, and could open up the Monetary Policy Committee to cut rates at its next meeting in August.
Markets are currently predicting a two-in-three chance that interest rates will fall from its 16-year-high of 5.25%.
8.57am: H&M shares topple as sales suffer due to bad weather
In mainland Europe, one of the world's leading fashion retailers saw its share price fall more than 13% after it warned bad weather would be affecting its sales.
H&M posted a 50% increase in operating profits to SKr7.1 billion ($672.5 million) from March to May, however, investors appeared to be more interested in what comes next for the Swedish retailer.
In June, sales are predicted to decrease by 6% year-on-year because of poor weather.
“The situation in the world around us remains uncertain and households continue to have high living costs," said newly appointed boss Daniel Erver.
He also noted that external factors such as rising material costs and fluctuating foreign currency rates are expected to negatively impact purchasing costs more than previously anticipated. “
This will have a more negative impact than we expected in the second half of the year,” Erver added.
H&M has been under pressure for over a decade, losing its position as the world's largest fashion retailer to Zara owner Inditex and facing competition from new low-cost retailers like Shein and Temu.
Despite these challenges, the company reported a rise in its gross margin to 56.3% in the second quarter from 52.7% in the same period last year, which Ervér described as “our best results for many years.”
8.41am: GSK falls on RSV vaccine ruling
GSK PLC (LSE:GSK, NYSE:GSK) shares are down 6% this morning, which seems to be on the back of US authorities recommending a restriction on doses of any respiratory syncytial virus (RSV) vaccine.
The Centers for Disease Control and Prevention's (CDC) advisory committee on immunization practices (ACIP) unanimously voted to restrict RSV vaccine recommendation to defined at-risk 60-74s, whilst expanding use for all 75 and older.
These decisions may cut 2024-25 addressable US market from around 80 million people aged 60-plus as well as circa 13 million at-risk aged 50-59, to perhaps circa 55 million, said analysts at Jefferies, with around 10 million dosed last season.
"Longer-term we are confident use expands," the analysts said, but predicted GSK stock would be likely to fall 2-4% on the "sales risk" to its Arexvy vaccine.
8.27am: BP pauses new offshore wind
Shares in BP PLC (LSE:BP.) are up after boss Murray Auchincloss implemented a hiring freeze and paused new offshore wind projects to focus more on oil and gas.
This is apparently amid investor concerns over its energy transition strategy, according to Reuters, citing sources close to the oil giant.
This shift contrasts with former CEO Bernard Looney's approach, which prioritised moving away from fossil fuels, but mirrors moves made at larger rival Shell.
Despite BP's gains, the FTSE has shifted lower, down 15 points at 8210.
8.14am: FTSE flat at open
The FTSE 100 has opened in an indecisive manner, first rising a little, then falling a little.
After these opening fluctuations, the London benchmark is now flat at 8225.
Top of the leaderboard is DS Smith PLC (LSE:SMDS) after suitor International Paper Co (NYSE:IP, ETR:INP) said it is forging ahead with its proposed acquisition of its UK packaging rival, with overtures from Brazil's Suzano reported to be ended.
Another riser is Bunzl PLC (LSE:BNZL) after upgrading its guidance for the year based on improved margin performance and acquisitions.
GSK is the biggest faller, down 6%, not sure why yet.
Other big fallers include several blue-chips whose share are going ex-dividend: British American Tobacco, Burberry, B&M European Value Retail, Berkeley Group and the F&C Investment Trust.
7.52am: Currys profits up, down at Watches of Switzerland
Currys PLC (LSE:CURY) issued results with a confident tone, with underlying profit in line with forecasts and trading in the first few weeks of its new year continuing on a similar track.
With its cash position improving, the electrical goods retailer said it intends to reinstate its dividend or share buybacks during the next 12 months.
Adjusted profit before tax came in at £118 million in the year to 27 April, up 10% on the prior year, versus guidance if between £115 million and £120 million
Elsewhere in the retail sector, Watches of Switzerland Group PLC confirmed that profit profits fell 40% last year but the UK market is stabilising and growth in the US means it will soon represent half of group sales.
The luxury watch and jewellery retailer reiterated its “cautiously optimistic” guidance for revenue growth to return in this new year, saying the industry as a whole is on a more conservative footing, slowing production amid a slowdown in the wider luxury market, while prices rose sharply.
For the past year, statutory profit before tax fell 40% to £92 million, while underlying profit on an adjusted EBIT basis came in at £135 million, down 18% year-on-year, but within the £133-136 million recent guidance from last month.
7.28am: FTSE 100 set for flat start
London’s blue chips are set for a flat start after a mixed night in Asia and in the US with the strength of the dollar unsettling the mood.
Financial spread betters have pencilled in Footsie to open around five points higher after yesterday’s modest gains.
Overnight Asian markets were as China’s economic struggles were underlined by sharply reducing industrial profits in May.
Expectations that Japan’s central bank will step in and prop up the yen added to the uneasy mood.
In the UK, BP has announced a hiring freeze and a further retrenchment of its green plans, which looks curiously timed with the election a week away and Labour targeting the oil and gas sector.
Currys' final results showed underlying profit in line with forecasts with a comment that trading in the first few weeks of its new year has continued on a similar track.