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FTSE Pinned Back By Weak Morning For Earnings

Published 31/07/2018, 08:54
Updated 21/10/2020, 09:15

Tuesday allows the Eurozone a moment in the spotlight before the focus turns to the US and UK central bank meetings.

Eurozone flat ahead of inflation/GDP data

The region opened in a state of pre-data anticipation, with the DAX and CAC flat and the euro up 0.1% against the dollar but down the same amount against the pound. The eurozone flash inflation estimate for July is expected to remain unchanged at 2.0%, but with the core figure to bounce back to 1.0% from June’s downward revised 0.9%. The flash Q2 GDP reading, meanwhile, is forecast to come in at the 0.4% growth seen in Q1, something that may be a bit of a disappointment for the euro.

As for the FTSE, the index is attempting to end the month outside the 7650-7700 trading bracket is has been stuck in for most of the summer, pushing 0.2% higher to hit 7715. It may struggle to build on that growth, however, given that the day’s key earnings updates have disappointed investors.

British Gas-owner Centrica (LON:CNA) plunged 4.7% after posting a 22% slide in interim adjusted earnings per share to 6.4p, while Rentokil Initial(LON:RTO) (LON:RTO) dove nearly 4% lower as adjusted pre-tax profit fell from £126.3 million to £124.5 million year-on-year. Standard Chartered (LON:STAN) was down 3.5% despite a hefty 35% increase in half year pre-tax profit, with Just Eat(LON:JE) (LON:JE) also dipping around 3% as it lifted its full year revenue guidance but left its earnings outlook unchanged. Even BP (LON:BP) wasn’t particularly happy, managing a meagre half a percent increase, with investors seemingly ignoring the first hike to a dividend since Q3 2014.

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