Fresnillo more than doubles profits, Babcock remains in line
London open
The FTSE 100 is predicted to edge around eight points higher on Tuesday, according to pre-market trading.
Stocks to watch
As it posted largely pre-announced annual results, Taylor Wimpey said it had made a "very good" start to 2017 and suggested the UK housing market will remain supportive for its bump dividend programme for some time. With the market having stabilised quickly after the Brexit referendum, the first seven weeks of 2017 have seen net private sales increase to a very strong 0.91 compared to 0.77 in the equivalent period last year.
Gold and silver miner Fresnillo more than doubled its profits on a surge in revenue due to higher meal prices in 2016. Gross profit more than doubled in 2016 to £882.1m, compared to the previous year, and earnings before interest, tax, depreciation and amortisation (EBITDA) surged 88.5% to $1.032bn.
Engineering services company Babcock said it had traded in line with expectations and the outlook for the full year remained unchanged. In a trading update for the quarter to the end of February, Babcock said that in addition to continuing to progressing existing contracts, new order intake remained strong, maintaining its order book and pipeline at £30.8bn.
Newspaper round-up
Solid economic growth and strong tax receipts since the Brexit vote have put Philip Hammond on course to announce a drop in government borrowing when he presents his spring budget next week, a leading thinktank has predicted. The Resolution Foundation said it would be the first time since March 2014 that a chancellor could stand at the dispatch box and announce borrowing will be lower – not higher – than previously thought. - Guardian
Businesses are calling for European Union regulations to remain in place to minimise the cost and disruption of Brexit, according to a report by the British Chambers of Commerce. It also calls on the government to consider a transitional arrangement with the EU if concluding both the exit negotiations and the future trade relationship with the single market proves impossible within the two years under Article 50 of the Treaty of Lisbon. - The Times
Complaints to the financial ombudsman about payday loans have risen to almost 200 a week – and not all of those experiencing problems necessarily fit the image of low-income borrowers relying on short-term loans to get by. Payment protection insurance continues to be the most complained-about product, with just over 78,000 complaints – making up more than half of the total. - Guardian
US close
US stocks shook off early losses to end higher, with the Dow notching up a record close for the 12th session in a row as President Trump teased investors with talk of a “big” announcement on infrastructure when he addresses Congress on Tuesday.
The Dow Jones Industrial Average ticked up 0.1% to 20,837.44, the S&P 500 added 0.1% to 2,369.73 and the Nasdaq closed up 0.3% at 5,861.90.
Meanwhile, oil prices settled little changed, with West Texas Intermediate up 0.2% to $54.08 a barrel and Brent crude down 0.1% to $55.96.
“We’re going to make it easier for states to address their infrastructure, and I’m going to have a big statement tomorrow night on infrastructure,” Trump told governors visiting the White House. “We’re going to start spending on infrastructure big.”