(Alliance News) - The FTSE 100 is set to continue the week's losing streak as investors await the start of the Jackson Hole central banking symposium in Wyoming.
US Federal Reserve Chair Jerome Powell delivers the keynote speech on Friday. "It doesn't feel like we will see any substantial moves higher this side of Powell's Jackson Hole speech," said Dutch bank ING.
IG says futures indicate the FTSE 100 index of large-caps to open down 14.61 points, or 0.2%, at 7,473.50 on Wednesday. The FTSE 100 closed down 45.68 points, or 0.6%, at 7,488.11 on Tuesday.
In early UK company news, office workspace provider IWG hired a new chief financial officer. Lookers resumed interim dividends even as profit slipped. Allied Minds said it will consult with shareholders over delisting from London.
IWG said it has appointed Charlie Steel as chief financial officer, joining the board "prior to the end of 2022". Steel takes over from Glyn Hughes, who is resigning to become chief executive of a non-listed company.
Steel joins from Babylon Holdings, a digital health delivery and AI diagnosis business. Prior to this, he was global head of corporate development at London-listed contracts-for-difference trading platform CMC Markets.
Car dealer Lookers reported a strong first half despite supply chain issues.
Revenue for the six months to June 30 rose 3.6% to GBP2.23 billion from GBP2.15 billion a year before, driven by increases in used vehicles and aftersales. Pretax profit slipped marginally to GBP49.9 million versus GBP50.4 million.
Profit performance was "underpinned by material improvement in new vehicle gross profit margin", the firm said. Lookers's margin strengthened to 12.7% from 12.0%.
The car dealer resumed its interim dividend at 1.00p, having not paid out anything a year before. Lookers last paid an interim dividend for the first half of 2019. It resumed final dividend payments alongside its results for 2021.
Lookers said supply disruption during the half made trading conditions "challenging". Trading in July and August has been in line with expectations and the company has managed to maintain margins at first-half levels.
"Whilst mindful of the pressures facing consumers, we are confident in our strategic direction and retain our expectations for the remainder of the year," said Chief Executive Mark Raban.
IP commercialisation firm Allied Minds said it will consult with shareholders over a possible share delisting from London following a strategic review.
Under the review, the board weighed up the costs of its listing in London and decided it is "prohibitively high" relative to the company's size.
Allied Minds said it judged that maintaining a public listing is "no longer in the best interests" of the company and its shareholders.
"The Allied Minds board therefore now intends to formally consult with shareholders regarding a possible delisting of the company," the Boston, US-based firm said.
Costain reported interim profit growth as the infrastructure construction firm grappled with supply chain pressures.
Revenue for the first half of 2022 rose 19% to GBP665.2 million from GBP556.8 million a year before, reflecting "primarily volume growth and inflation protection mechanisms within contracts".
Pretax profit increased 23% to GBP11.2 million from GBP9.1 million, even as the operating margin slipped to 1.8% from 2.0%.
"Despite material availability and inflation challenges, we have managed the supply chain pressures effectively, while delivering a robust operational performance with new contracts being won on attractive commercial terms with appropriate risk," said Chief Executive Alex Vaughan.
He added that there was a "very high level" of bidding activity in the period, with award decisions expected later this year and into early 2023.
"While we remain mindful of the macro-economic backdrop, we are pleased with the quality and scale of our order book, including secured multi-year infrastructure programmes, the volume of preferred bidder work and the additional long-term framework contracts which will deliver continued progress in 2023 and beyond," said Vaughan.
In the US on Tuesday, Wall Street ended in the red, with the Dow Jones Industrial Average ending down 0.5%, the S&P 500 down 0.2%, and the Nasdaq Composite outperforming but still marginally lower
Ahead of Jackson Hole, traders were left to process Tuesday's largely downbeat PMI scores and energy supply threats.
The euro fell to a fresh two-decade low against the dollar on Tuesday as weak private sector survey results combined with energy supply worries after Russia's Gazprom said the Nord Stream pipeline would be closed for maintenance at the end of the month.
The euro traded at USD0.9943 early Wednesday, down from USD0.9987 late Tuesday. The single currency hit a low of USD0.9900 on Tuesday.
Energy prices remained elevated on Wednesday. Brent oil was trading at USD100.09 a barrel, back above the USD100 mark and up from USD99.90 late Tuesday.
In the UK, a new survey has shown satisfaction with living standards and income has plunged amid devastating predictions for Friday's new energy price cap.
The Which? consumer insight tracker shows satisfaction with living standards and income has crashed to its lowest point since 2014, even before Ofgem is widely expected to announce a new price cap for October topping GBP3,500 on Friday, up from GBP1,971 today.
Some 93% of consumers said they were worried about energy prices.
Sterling was quoted at USD1.1809 early Wednesday, lower than USD1.1864 at the London equities close on Tuesday.
Against the yen, the dollar was quoted at JPY136.71 versus JPY136.28.
The Nikkei 225 index in Tokyo closed down 0.5%. The Shanghai Composite was down 1.9%, while the Hang Seng index in Hong Kong was down 1.3%. In Sydney, the S&P/ASX 200 was bucking the trend, closing up 0.5%.
Gold was quoted at USD1,745.28 an ounce early Wednesday, down from USD1,751.38 on Tuesday.
In the economic calendar, there are US durable good orders at 1330 BST.
By Lucy Heming; lucyheming@alliancenews.com
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