Today's Closing Update
U.S. Shares index were higher with a rally in Apple’s shares lifting the technology sector and setting the U.S. 30 above 22,000 mark.
European and U.K. Shares ebbed lower, as energy shares pulled back alongside a drop in oil prices, while France’s Société Générale SA and other bank stocks suffered.
Swiss manufacturing sector continued to grow at a strong pace in July, supported by robust order books, survey data from the supply management association procure.ch and Credit Suisse showed. The procure.ch Purchasing Managers’ Index rose by 0.8 points to 60.9. Economists had expected a score of 58.8. A score above 50 suggests growth in the sector. The reading remained well above its long-term average of 53.8.
The Competition and Markets Authority said that the proposed £2.2bn merger between Wood Group and Amec Foster Wheeler could lead to competition concerns in the supply of engineering and construction services and operation and maintenance services on the UK continental shelf. “This is because the companies currently compete closely with each other, and are two of the main suppliers of these services; the merger will reduce the number of major players currently active in these markets from four to three; there are concerns that competition from other suppliers may not be sufficient to mitigate competition worries; and other suppliers seeking to enter the market or expand their UK presence may face significant barriers to doing so.”
Standard Chartered reported an 82% jump in first-half profit but shares in the bank slumped, with analysts pointing to potential disappointment that the dividend was not reinstated early. In the six months to the end of June, statutory pre-tax profit rose to $1.8bn, while operating income was up 3% at $7.2bn. Meanwhile, loan impairments fell to $655m from $1.5bn in the second half of 2016. Profit attributable to ordinary shareholders rose to $971m from $465m in the first half of last year.
Travis Perkins reported that adjusted operating profit was 2.1% lower at £190m largely due to the challenging Plumbing & Heating market and recent investments, including in information systems. Revenue grew by 3.5% in the first half of the year, and by 2.7% on a like-for-like basis. Free cash flow of £188m was generated, with strong cash conversion of 99% Net debt of £377m, lower than June 2016 by £133m, and in line with December 2016. Interim dividend of 15.5p, an increase of 1.6% reflecting strong cash performance CEO John Carter said: “We executed our plan well and delivered a solid overall performance in the first half of 2017 against a challenging market backdrop of pronounced input cost inflation and market volatility.
Dignity’s revenues rose by 7% to $£169.8m in the 26 weeks to the end of June. Underlying operating profits were up 7% at £59.5m and underlying pre-tax profits rose by 9% to £46.1m. The group said: “Following a very strong start to the year, with the number of deaths 7% higher than last year in the first quarter, the half year concluded with the number of deaths 2% higher than the same period in 2016.” The group said the results for the first half of 2017 were in line with the board’s expectations. The group said it had acquired 14 funeral locations and one crematorium for an aggregate investment of £23.4 million and had opened seven satellite locations in the period to 30 June.
Ashtead Group said its wholly owned subsidiary Ashtead Capital will conduct a private offering of $1.2bn in second-priority senior-secured notes due 2025, and second-priority senior-secured notes due 2027. The proceeds of the offering will be used to repurchase up to all of the subsidiary’s outstanding 6.50% second-priority senior-secured notes – of which around $900m are outstanding – pursuant to a cash tender offer, pay related fees and expenses, and repay a portion of senior debt outstanding under its first-priority senior-secured credit facility. Ashtead said this will allow it to fix the cost of a further tranche of its debt at “attractive long-term rates” and extend its average debt maturity profile.
Oil Prices swung between small gains and losses ahead of a closely watched report on U.S. oil supply that could add to recent fears that measures by major oil producers to balance the market aren’t working.
Gold edged down from a seven-week high as investors took profits following a recent rally, with strong economic growth in Europe and rising U.S. stock markets encouraging a shift to riskier assets.
Market Close
| Market |
Index |
Change |
% Change |
| UK 100 |
7,411.4 |
-12.2 |
-0.2% |
| UK 250 |
19,841.4 |
-22.2 |
-0.1% |
| GER 30 |
12,181.5 |
-69.8 |
-0.6% |
| FRA 40 |
5,107.3 |
-19.8 |
-0.4% |
| U.S. 30 |
22,004.22 |
+40.30 |
+0.2% |
| U.S. 500 |
2,471.7 |
+4.4 |
+0.2% |
| OIL (BRENT) |
51.54 |
-0.24 |
-0.5% |
| GOLD |
1,270.93 |
+2.17 |
+0.2% |
UK Risers & Fallers
| Company |
Price |
Change |
% Change |
| William Hill |
265.55 |
+15.4 |
+6.1% |
| Old Mutual |
203 |
+5.6 |
+2.8% |
| ITV |
175.8 |
+4.3 |
+2.5% |
| Standard Chartered |
795 |
-51.2 |
-6.1% |
| Auto Trader |
364.5 |
-18.2 |
-4.8% |
| Rolls Royce |
943 |
-36 |
-3.7% |
Reported Economic Data
| Time/Date |
Previous |
Forecast |
Outcome |
| 9:30am: U.K. Construction PMI |
54.8 |
54.3 |
51.9 |
| 1:15pm: U.S. ADP Non-Farm Employment Change |
158k |
187k |
178k |
| 3:30pm: U.S. Crude Oil Inventories |
-7.2m |
-3.2m |
-1.5m |