Unilever reports higher-than-expected sales growth, Relx to end year above historic trends

London open

The FTSE 100 is expected to open 33 points lower on Thursday, having closed up 0.08% at 7,223.10 on Wednesday.

Stocks to watch

Unilever on Thursday reported higher-than-expected third quarter underlying sales growth, driven by higher prices and strong demand in the US, India, China and Turkey. The consumer goods and food maker said underlying sales rose 2.5% for the three months to September 30, beating the 2.2% of analysts’ forecasts.

Business information and analytics provider Relx reported underlying revenue growth of 6% in the first nine months of 2021 on Thursday, adding that it expected full-year underlying growth rates in revenue and adjusted operating profit, as well as constant currency growth in adjusted earnings per share, to be above historical trends. The FTSE 100 company said underlying revenue growth in its risk division was at 10%, and within that, in business services, demand for fraud prevention and identity solutions was driving double digit growth.

Newspaper round-up

Further coronavirus restrictions will be needed if people do not have a booster jab and get serious about facemasks, the health secretary said yesterday as he predicted cases could reach 100,000 a day. Sajid Javid insisted that “life is not back to normal” and urged people to take precautions such as meeting outdoors and regular lateral flow testing. - The Times

The crisis in energy markets risks sparking a cascade of bankruptcies which will leave as few as five domestic suppliers standing unless ministers introduce urgent reforms, the boss of Scottish Power has warned. Keith Anderson, head of one of Britain’s largest gas and electricity companies, said the industry is “sleepwalking into a massacre” amid a global gas supply crunch which shows little sign of easing off. - Telegraph

Five of the UK’s leading manufacturing industries have issued a plea for more government financial support to boost capital investment in research and development as well as new factories and equipment with lower carbon emissions. Carmakers, aerospace, chemicals, pharmaceuticals and food and drinks manufacturers banded together on Wednesday to call for a long-term strategy for industry as the chancellor, Rishi Sunak, prepares for the budget next week. - Guardian

Tesla defied the disruption wrought by chip shortages and port congestion across the motor industry to announce record profits in the latest quarter. The maker of electric cars pledged to keep raising production levels in Shanghai, Texas and at its new site on the outskirts of Berlin, after a 73 per cent increase in manufacturing enabled it to beat Wall Street expectations. - The Times

A deal to sell a $2.6 billion stake in the world’s most indebted property firm to a rival company has fallen through. Evergrande, the Chinese property group, suspended its shares on October 4 before “an announcement containing inside information about a major transaction”. - The Times

US close

Wall Street stocks closed in a mixed state on Wednesday, with the S&P 500 recording its sixth winning session on the trot.

At the close, the Dow Jones Industrial Average was up 0.43% at 35,609.34 and the S&P 500 added 0.37% to 4,536.19, while the Nasdaq Composite slipped 0.05% to settle at 15,121.68.

The Dow closed 152.03 points higher on Wednesday, extending gains recorded in the previous session as the release of some solid third quarter earnings from a number of big-name US firms gave sentiment a boost.

On the macro front, mortgage applications fell 6.3% in the week ended 15 October, according to the Mortgage Bankers Association, primarily due to an increase in the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances from 3.18% to 3.23%.

Applications to refinance a home fell 7% week-on-week, and those to purchase a home declined 4.9%.