London’s blue-chip stocks made a slow start to the morning session with the main index falling victim to a decidedly mixed morning for figures.
With little in the way of economic data it was another earnings-dominated day for the FTSE100, which was 6 points lower to 6,389.
Asian shares had a good session overnight with the Nikkei 225 in Japan went 165 points higher at 19,016 as the Central Bank there kept monetary policy on hold.
The Shanghai Composite Index in China added 21 to 3,408 as the country’s decision to replace the 35-year-old one-child policy with a two-child policy prompted investors to snap up any shares relating to babies – from nappies and body-care products to baby food and infant milk formula, Bernard Aw at IG said.
On the corporate front, British Airways owner International Consolidated Airlines (LON:IAG) reported solid third quarter figures.
Pre-tax profit rose 48% to £792mn in the last three months compared to the same period the year before.
It also confirmed yesterday that it will pay out 25% of its full-year after tax profits in dividends.
It has not paid a dividend since the new company was created in 2011 by the merger of BA and Iberia.
Analysts had been expecting strong results from the airline group and shares fell 4% or 26p to 571p in early trading in London.
Elsewhere, heavy restructuring costs pushed Royal Bank of Scotland (LON:RBS) into loss in its latest quarter as the taxpayer-owned bank continued the run of disappointing updates from the UK’s big banks.
Barclays (LON:BARC) and Lloyds (LON:LLOY) had already underwhelmed this week and RBS matched its rivals with an operating loss of £134mln which became a profit of £2mln after a debt adjustment.
RBS dropped 1.5% to 315p while Barclays also eased. Lloyds was broadly flat in the morning session
Speciality pharma group Vectura (LON:VEC) announced it has received a €750,000mln payment after reaching a development milestone for the VR632 asthma therapy inhaler. The airways-related disease expert will also receive sales royalties from the product. Shares climbed 8.7% to 178p.
In the small cap arena, A major global logistics group has agreed a long term supply deal with Servision (LON:SEV), which will install its pioneering CCTV security system in its vehicles.
Servision's UK subsidiary will now fit out a fleet of 101 vehicles of the unnamed group in the UK with its video equipment, ancillary products and components. Shares gained 10.9% to 3p.
Elsewhere, Clear Leisure (LON:CLP) has entered into a £200,000 loan agreement with Eufingest S.A, a Swiss investor and major shareholder in the company. Shares rocketed 31% to 1.8p today.
Conversely, recruitment firm Nakama (LON:NAK) said first half pre-tax profit dropped to £169,000 from £220,000 the year before on lower revenue as it was hit by currency headwinds.
It was the biggest faller in early deals, plummeting some 23.8% to 4p.