Morning Market Pulse - Bovis Try'd, will Aviva split?


Mike van Dulken at Accendo Markets, commented to clients this morning:


Markets Overview:


FTSE 100 called to open +25pts at 7305, extending Thursday’s bounce from 7210, within a 7210-7363 range. Bulls need a break back above 7320 to challenge the range ceiling. Bears require a breach of 7290 to endanger rising support. Watch levels: Bullish 7320, Bearish 7290


Calls for a positive open come courtesy of gains in Asia bettering those in the US, in spite of lingering US-China trade war uncertainty. Sentiment boosted of hopes of Beijing stimulus after China Industrial Profits growth fell.  Heavily reliant trade partner Australia boosted with Miners and Energy outperforming which may boost London-listed names on their return from a long weekend.

Note Oil extending rebound, Brent back above $70 in spite of USD strength, while Gold is $1280-1287 rangebound. Copper holding recent bounce gains.



In corporate news this morning;


Bovis Homes no longer in discussions with Galliford Try about a proposed merger of Bovis with Galliford’s Housing Businesses (not Group or Construction operations).


The FT reports Aviva may be set to split itself into Life and Non-Life businesses, the new CEO undoing his predecessor’s decision of just two years ago.


London Stock Exchange may be sensitive to Nasdaq withdrawing its bid for Oslo Bors, ending a long-running fight for control with Euronext.


Major shareholder M&G rejects Non-Standard Finance’s Offer for Provident Financial.


Sports Direct agrees to £120m sale and 15yr leaseback of property being used as distribution centre, offices and retail..


Tritax Big Box obtains outline planning consent for up to 2.31m sq ft of logistics space at Symmetry Park, Kettering. Once fully developed, site has potential to deliver returns of 7-8%, in-line with target.


The FT reports ITV and the BBC at odds with each other over priorities and funding commitments for their joint project BritBox, aimed at breaking Netflix’s stranglehold on the streaming market.


Bunzl appoints Peter Ventress Chairman designate, to succeed Philip Rogerson.


IAG may be sensitive to ratings agency Moody's upgrading its outlook On British Airways' to Positive from Stable whilst affirming its Baa3 Rating.



In focus today:


The fallout from the European elections and the latest in the UK’s Conservative Party leadership race could be a driver for GBP, with a knock-on for the FTSE100, as the UK plays catch-up from a long weekend holiday.


Data-wise, UK Mortgage Approvals (9.30am) could impact FTSE house-builders while US House data (2pm) could dictate Stateside sentiment this afternoon.

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