Kingfisher maintains full-year guidance, first-half profit rises at Compass Group

London open

The FTSE 100 is expected to open 33 points higher on Wednesday, having closed up 1.09% at 7,241.60 on Tuesday.

Stocks to watch

DIY chain owner Kingfisher on Monday maintained full year guidance as it reported a 0.8% rise in first quarter sales on a like-for-like basis. In the UK and Ireland, sales at B&Q rose 2.8% reflecting a stronger weather-related performance, partly offset by a 2% impact from discontinuation of showroom installation services. Screwfix sales were up 4.5%. Total group sales were £2.8bn.

Compass Group's first-half profit rose more than 5% as the catering company gained new business in North America and added UK defence contracts.Underlying operating profit for the six months to the end of March rose 5.8% to £951m from a year earlier as revenue increased 6.6% to £12.5bn. Pre-tax profit rose to £852m from £793m.

Hargreaves Lansdown updated the market on its trading for the four month period ended 30 April on Wednesday, reporting net new business of £2.9bn, taking year-to-date net new business to £5.4bn. The FTSE 100 financial services provider said its assets under administration stood at £97.8bn at the end of the period, with active clients totalling 1,188,000 after adding net new clients of 53,000.

Newspaper round-up

British Steel is seeking emergency funds from the government, blaming politicians’ failure to strike a Brexit deal for a crisis that leaves one of the UK’s last two steelworks – and 4,500 staff – facing an uncertain future. The company, which owns the Scunthorpe steelworks, is in rescue talks with its lenders over a £75m rescue package that is understood to be at risk of falling apart unless the government contributes. - Guardian

The finance industry’s adjudicator has criticised the “unacceptable” behaviour of some payday lenders after a 130% rise in complaints, which it said goes beyond the practices of recently collapsed industry leader Wonga. The Financial Ombudsman Service (FOS) said the surge contributed to a 14% rise in complaints across the financial sector, which reached a five-year high of 388,392 over the 12 months to March. – Guardian

The Labour Party’s decision to flip the switch on plans to bring energy under state control has sparked outrage in an already embattled market. The looming risk posed by Jeremy Corbyn’s threat to nationalise the UK’s £60bn energy networks industry has stalked the City for months. It first emerged in 2017, softened by vague political rhetoric and doubts over the party’s chances in a general election. – Telegraph

McLaren is looking to take a bite out of Aston Martin and Porsche’s markets with a new car that aims to win over the "daily driver". The Woking-based business has revealed the 570 GT, a car which eschews the company’s track-focused strategy and can be used every day and for longer drives. – Telegraph

Standard Life Aberdeen has suffered a substantial shareholder rebellion over plans to offer its incoming chief financial officer free shares worth up to £750,000 in one of the biggest pay revolts at a FTSE 100 company this year. It is doubly embarrassing, as the fund management group also often acts as a watchdog over the governance of companies in which it invests and is outspoken on remuneration rewards. – The Times

US close

Stocks closed higher on Tuesday after Wall Street indices tumbled during the previous session when China announced its plans to raise tariffs on $60bn-worth of US imports on 1 June.

At the close, the Dow Jones Industrial Average was 0.82% higher at 25,532.05, while the S&P 500 moved ahead 0.80% to 2,834.41 and the Nasdaq Composite closed 1.14% firmer at 7,734.49.

The Dow closed more than 200 points higher on Tuesday, recording its best day in a month.

The bounce came even as Investors continued to digest news around the escalating trade war between the United States and China and a day after all three major indexes crashed following the announcement that Beijing would slap items as varied as TV cameras to tequila or pesticides with a tariff increase ranging from 10% to 25%.

Donald Trump took to Twitter on Monday to warn China that it will be "hurt very badly" if it fails to make a trade deal.