With little in the way of data, and no real update on the trade tensions the markets have been so keen to ignore this week, the European indices got off to a rather lacklustre start.
The FTSE was the frontrunner on Wednesday, which says it all given the index could only manage a 20 point increase, a rise that returned it to the 7700 level that has proven to be so magnetic of late. As for the pound, the currency built on yesterday’s services PMI-driven growth against the dollar, with cable up another 0.2% and at its best price in a fortnight, but had less success against the euro, where it fell by 0.2%.
In the eurozone it appears that the political relief rally may finally be over. At points on Tuesday it looked like the region’s indices had gotten a second wind; however by closing time the gains had petered out, with that sluggishness carrying into Wednesday’s open, the DAX and CAC flat at 12790 and 5450 respectively.
Investors returned from their holiday away from WH Smith (LON:SMWH) on Wednesday, sending the retailer 5.5% higher to a 4 month peak. Though Travel was, as ever, the best performing division in the third quarter, with total sales up 8% and like-for-likes rising 3%, arguably the biggest news came from the High Street. The flagging bricks and mortar business reduced its decline to 1% for both total sales and LFLs, compared to the 5% and 4% slump seen respectively at the half year point. This left WH Smith with a 4% rise in group revenue and a 1% increase in comparable sales, giving investors plenty of reason to throw their issues of Which? magazine to one side and pour back into the stock.
RPC Group (LON:RPC) ended up being thrown in the recycling bin after its full year results. The figures themselves were stellar: adjusted operating profit jumped 38% to £425 million, with revenue beating estimates with a 36% surge to £3.75 billion. However, news that the company was looking to sell non-core assets totalling £209 million in revenue to focus on reusable or recyclable plastics left the stock nowhere near as green as its environmental aims, with RPC plunging nearly 14% to a 2 and a half year low.
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