London open: Stocks edge higher as pound extends slide
Stocks are moving slightly higher as the new government's plans for Brexit continue to weigh on Sterling.
As of 0913 BST, the FTSE 100 was trading 0.20% higher to 7,702.19, with the pound trading down by 0.48% to 1.0910 against the single currency and by 0.47% to 1.21604 versus the US dollar.
It was the first time since March 2017 that Sterling had traded below the 1.22 mark.
Commenting on early market action, Michael Hewson, chief market analyst at CMC Markets UK said: "It's been a subdued start for markets in Europe, despite Asia markets closing higher, in the wake of the Bank of Japan’s latest decision to keep monetary policy unchanged.
"The FTSE100 opened higher, once again driven by another sterling related sell-off in Asia, as we head into another earnings heavy session for UK corporates."
In the background, the spotlight on Tuesday was expected to fall squarely on the second round of trade talks between US and Chinese officials since the trade truce reached by the countries' two leaders, Donald Trump and Xi Jinping, on 28 June.
Nevertheless, expectations for a resolution of the trade spat were quite low.
Against that backdrop, the US Commerce Department was scheduled to release personal income and spending figures covering the month of June. at 1330 BST.
In particular, traders were expected to focus on the inflation gauges contained within that same report, including the Federal Reserve's preferred measure, the price deflator for personal consumption expenditures.
The US Federal Reserve's two day policy meeting was also set to get under way later on Tuesday.
And in Japan, overnight the Bank of Japan lowered its GDP and inflation forecasts for the current financial year and the next and said that it would "not hesitate to take additional easing measures" if warranted.
BP beats as output increases
Oil major BP posted better than expected results for the three-month stretch to the end of June on the back of higher oil output, despite a decline in crude prices versus a year ago. In the second quarter, underlying replacement cost profit pringted at $2.8bn, which was "similar" to the year ago level but ahead of the $2.562bn anticipated by analysts at UBS and ahead of even the highest analyst estimate as compiled by Bloomberg. On a reported basis, average oil and gas output increased by approximately 4.0% verus a year earlier to reach 3.8m barrels a day of oil equivalent.
Centrica on Tuesday announced that its chief executive will retire next year as the British Gas owner swung to a loss and more than halved its interim dividend following an "exceptionally challenging" first half of the year. The company recorded a statutory loss before tax of £446m for the six months ended 30 June, swinging from a profit of £704m during the same point last year, which the company blamed on the new energy price cap and increased pensions contributions as it slashed its interim dividend by 58% to 1.5p.
Mining industry equipment maker Weir Group on Tuesday reported flat pre-tax first half profits of £147m as “challenging conditions” in the North American oil and gas market weighed on results. Operating profit fell 22% on a like-for-like basis to £172m on revenue of £1.3bn, down 4%. The dividend was lifted 5% to 16.5p a share.
Lower volumes and prices have hit half year results at gold and silver miner Fresnillo, with core profits down 45.7%, the company said on Tuesday. Earnings before interest, tax, depreciation and amortisation fell to $307.9m in the six months to June 30 on a 10% fall in revenues to $1bn. The average realised silver price fell 7.5% to $15.2 per ounce during the period while the average realised gold price remained flat at $1,320.7 .
Centrica announced that its chief executive Iain Conn will step down as chief executive and retire next year as the British Gas owner more than halved its interim dividend following an "exceptionally challenging" first half of the year. The company reiterated full year guidance but swung from an interim operating profit of £704m to a loss of £446m as it said the new energy price cap and increased pensions contributions took their toll.
Reckitt Benckiser reported 2% growth in its half-year net revenue from continuing operations on Tuesday, to £6.24bn, with its reported operating profit rising 9% to £1.41bn for the same period. The FTSE 100 consumer products giant said its adjusted operating margin was down 10 basis points to 23.6%. It declared an interim dividend of 73p, up 4% on the distribution it paid at the half-year last year.
Temporary power provider Aggreko said first-half pre-tax profits were flat as revenues at its industrial and utility units fell although the company maintained full year guidance. Pre-tax profits for the six months to June 30 came in at £60m, up from £59m a year earlier and 9% higher on an underlying basis. Group revenue fell 10% to £768m and the interim dividend was help at 9.38p a share.
Market Movers
FTSE 100 (UKX) 7,704.17 0.23%
FTSE 250 (MCX) 19,905.10 0.09%
techMARK (TASX) 3,910.44 0.00%
FTSE 100 - Risers
BP (BP.) 545.40p 3.49%
Rio Tinto (RIO) 4,759.00p 1.66%
BHP Group (BHP) 2,022.00p 1.41%
Diageo (DGE) 3,457.00p 1.32%
Evraz (EVR) 672.20p 1.08%
Coca-Cola HBC AG (CDI) (CCH) 2,887.00p 0.98%
Micro Focus International (MCRO) 1,737.00p 0.94%
Antofagasta (ANTO) 950.80p 0.93%
Glencore (GLEN) 277.75p 0.93%
Rentokil Initial (RTO) 416.90p 0.90%
FTSE 100 - Fallers
Centrica (CNA) 80.42p -11.47%
Fresnillo (FRES) 741.20p -6.72%
Reckitt Benckiser Group (RB.) 6,478.00p -2.88%
International Consolidated Airlines Group SA (CDI) (IAG) 429.40p -2.10%
RSA Insurance Group (RSA) 575.00p -1.71%
British American Tobacco (BATS) 3,054.46p -1.66%
Royal Bank of Scotland Group (RBS) 225.80p -1.61%
Next (NXT) 5,644.00p -1.50%
Admiral Group (ADM) 2,202.00p -1.48%
Aviva (AV.) 407.00p -1.41%
FTSE 250 - Risers
Provident Financial (PFG) 442.40p 6.47%
BBA Aviation (BBA) 322.00p 5.85%
Elementis (ELM) 141.30p 5.76%
Sanne Group (SNN) 525.00p 5.42%
Games Workshop Group (GAW) 4,852.00p 3.37%
Contour Global (GLO) 175.94p 2.53%
Sports Direct International (SPD) 220.20p 2.51%
Future (FUTR) 1,134.00p 2.16%
Fidelity China Special Situations (FCSS) 229.00p 2.00%
Aggreko (AGK) 792.40p 1.98%
FTSE 250 - Fallers
CYBG (CYBG) 184.95p -7.01%
Wizz Air Holdings (WIZZ) 3,543.00p -3.75%
Greencore Group (GNC) 217.20p -3.51%
Weir Group (WEIR) 1,512.00p -3.17%
Spectris (SXS) 2,668.00p -2.88%
Sabre Insurance Group (SBRE) 271.50p -2.34%
Domino's Pizza Group (DOM) 257.80p -2.31%
Intu Properties (INTU) 73.32p -2.27%
Funding Circle Holdings (FCH) 115.00p -2.04%
Galliford Try (GFRD) 614.50p -1.92%