London Stocks Seen Tracking Global Markets Higher

London stocks expected to open higher

0650 GMT – The FTSE 100 index is expected to open 63 points higher after closing at 6920.24 on Monday, following gains in Asian stocks and retracing solid gains from the previous day, according to IG, as investors cheer a controversial UK government reversal decision tax cuts. “Markets rallied yesterday with no apparent triggers but a cocktail of solid earnings reports, lower yields, easing UK risks and softening gas prices,” analysts at Danske Bank said in a statement. US earnings releases will be in focus after solid earnings were welcomed by Bank of America on Monday. ([email protected])

 
Companies News: 

Ninety One’s assets under management fell in the second quarter

Ninety One PLC announced Tuesday that assets under management for the second quarter of fiscal 2023 decreased sequentially.

Aveva sees 1H sales decline due to cost increases

Aveva Group PLC announced Tuesday that revenue for the first half of fiscal 2023 declined a low single-digit percentage year-on-year on an organic basis at constant exchange rates as costs declined from the first half of last year, impacted by Covid-19 19 has increased significantly. 19

FinnCap Receives Takeover Offer From Panmure Gordon; In early stage talks

finnCap Group PLC announced on Tuesday that it has received a takeover proposal from Panmure Gordon Group Ltd. received and that discussions between the companies are at an early stage.

Moneysupermarket.com rose in the third quarter; Sees 2022 Ebitda at the high end of market views

Moneysupermarket.com Group PLC on Tuesday reported a 33% increase in third-quarter revenue and said EBITDA was at the high end of market expectations for the year.

Revolution Bars is delaying accounts due to significant transactions

Revolution Bars Group PLC said on Tuesday that it was in the final stages of a “significant transaction” and that its financial statements for fiscal 2022 would therefore be delayed at this time.

888 Holdings Q3 revenue fell after exit from Netherlands, heightened security measures for UK players

888 Holdings PLC announced on Tuesday that third quarter revenue fell on a pro forma basis following the acquisition of William Hill’s international business, mainly due to improved security measures for online players in the UK and the closure of its Dutch business is.

Bellway FY 2022 pre-tax profit fell on higher provisions; See needs moderation

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Bellway PLC announced on Tuesday that its fiscal 2022 pre-tax profit fell due to heightened safety precautions, despite increased revenue and moderate demand in fiscal 2023.

Wise improves views in FY2023 after 2Q Revenue up 60%

Wise PLC announced on Tuesday that it has again raised its guidance for fiscal 2023, citing robust revenue growth in the second quarter.

Advanced Oncotherapy raises £6m via shareholder’s premium subscription

Advanced Oncotherapy PLC announced on Tuesday it is raising £6 million ($6.8 million) via a premium share subscription from one of its largest shareholders and will use the money to support its operations.

CyanConnode Holdings raises £500,000 for working capital purposes

CyanConnode Holdings PLC announced on Tuesday that it had raised £500,000 ($567,950) through a share subscription with an existing shareholder and will use the money for working capital purposes.

Ibstock anticipates 2022 performance after strong 3rd quarter

Ibstock PLC said on Tuesday it expects 2022 output to be above its earlier expectations after the third quarter awaited amid robust demand patterns and strong operational performance.

 
Market Talk: 

Market repricing of BOE rate hike leaves ECB expectations unchanged

0650 GMT – Market expectations of Bank of England rate hikes have eased in anticipation and confirmation of the UK government’s fiscal U-turn, but this has not impacted market pricing for European Central Bank rate hikes, analysts say. “Slumping market expectations in the UK have not pushed back expectations of a 75 basis point tightening by the ECB in the upcoming meeting,” writes Piet Haines Christiansen, chief strategist for ECB and eurozone bond market research at Danske Bank, in a note. According to Refinitiv, markets are pricing in a rate hike of more than 72 basis points at the Oct. 27 ECB meeting and a total of 140 basis points for the remainder of the year. ([email protected])

Eurozone bond yields fall; Business sentiment weakened to support Bunds

0649 GMT – Euro-zone government bond yields fall, extending Monday’s steps and taking relief from the UK government’s fiscal reversal, analysts say. “The ‘hunt’ for yield extends to BOE [Bank of England] but Eurozone government bonds versus QT [European Central Bank quantitative tightening] Headwinds,” writes Christoph Rieger, head of rates and credit research at Commerzbank, in a note. Among other drivers for the day, fundamental support for Bunds is likely to extend to an expected decline in Germany’s ZEW business sentiment index to a record low. On offer is Germany EUR 4bn of new Bunds maturing November 2029, while Finland auctions up to EUR 1.5bn maturing September 2032 and April 2052 2.252% according to Tradeweb ([email protected])

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UK Gilt Auction 2051 to test investor demand after fiscal reversal

0631 GMT – The UK Debt Management Office’s £2.5 billion auction of its 1.25% July 2051 government bond on Tuesday could be a test of investor demand after the government’s fiscal reversal, rates strategists at Citi say . The possibility of a downward revision in UK Gilt issuance in FY2022-23 could help ease near-term pressures stemming from uncertainty over the Bank of England’s quantitative tightening and rate hikes, they write in a statement. “The alternative is to leave the order largely unchanged in the face of energy uncertainty, which could allow for a possible carry-forward to mitigate the emissions jump next year,” they say. ([email protected])

Gilt issuance prospects improve after government U-turn

0620 GMT – The UK government’s sweeping mini-budget reversal and review of energy support beyond April “improves gilt issuance prospects but does not change the bigger picture,” rates strategists at Citi write in a note. Their new estimate for FY2023/2024 issuance is £263bn, up from £306bn previously, they say. This year’s order will be revised on October 31, “but there is still a chance of a cut due to lower energy prices,” say strategists at Citi, adding that the order for FY 2022/2023 will increase by around £25bn GBP 169 billion could be reduced . ([email protected])

Fund managers’ experience matters a lot in challenging times

0615 GMT – Hargreaves Lansdown places a high value on the experience of the fund managers it works with. “One of the things we look for in funds is managers with a lot of experience and time in the industry,” senior investment analyst Hal Cook said in a note. The reason Hargreaves Lansdown places a high value on this is that Hargreaves Lansdown seeks to invest with people who have gone through market cycles and experienced different economic conditions and monetary policies that may affect future investment returns. “For the eight actively managed bond funds on the Wealth Shortlist, the average senior manager’s industry experience is 30 years,” says Cook. ([email protected])

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Rio Tinto’s profits are heading towards a bottom

0159 GMT – Cost pressures facing Rio Tinto should ease into 2023 on cyclical factors, but prices for iron ore – its most lucrative product – are also likely to remain relatively low, analysts at Jefferies say in a note. Analysts are predicting that Rio Tinto’s Ebitda will fall and hit a bottom in 2023. “We expect a downward revision to 2023-24 investment guidance of $9-10 billion if the global economy continues to weaken,” they add. Still, Jefferies reiterates a buy rating on the stock, saying that “although macro risks are high,” the miner’s valuation is cheap and its business should benefit from a recovery in aluminum and copper over the next 18 months. Rio Tinto’s Australian shares are down 1.0% at A$93.25. ([email protected]; @RhiannonHoyle)

Rio Tinto’s aluminum and copper operations disappoint

0000 GMT – Challenges in Rio Tinto’s aluminum and copper businesses led to weaker-than-expected third-quarter earnings, says RBC Capital Markets analyst Kaan Peker, highlighting operational issues and a downgrade of copper production guidance. “Rio reported another issue with Kitimat, with the alumina delivery system causing glitches during the quarter that slowed the rate of pot restarts,” he says in a note. The miner’s Q3 iron ore production was better than expected, although shipments met RBC’s forecasts as the miner struggled with rail disruptions, Peker says. Rio Tinto shares are flat at A$94.17. ([email protected]; @RhiannonHoyle)

Rio Tinto warns of macro threats to commodity demand

1919 ET – There are more risks to commodity demand as the global economy slows, Rio Tinto says in a Q3 manufacturing report. The world’s second-largest miner points to challenges in China’s economy amid ongoing Covid-19 restrictions and weakness in the country’s real estate market. A “policy-driven acceleration in infrastructure spending, auto sales and exports” helped provide growth drivers in Q3, but “slacking global demand poses downside risks for China’s strong exports, while consumers remain wary of the housing market,” Rio Tinto says. The miner also says he expects the US Federal Reserve and European Central Bank to continue raising interest rates to curb inflation, even as those regions show even greater signs of an economic slowdown. ([email protected]; @RhiannonHoyle)

 

Contact: London NewsPlus; [email protected]

(ENDS) Dow Jones Newswires

October 18, 2022 03:08 ET (07:08 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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