LONDON (Alliance News) - Stocks were trading largely lower just after the open on Monday, with WPP the biggest faller in the FTSE 100 even though it reported a rise in revenue in the third quarter and indicated a strong end to the year.
The media-buying giant said its total revenue rose 5.9% to GBP2.93 billion in the quarter to end-September from GBP2.76 billion a year before, and was up 7.9% at constant exchange rates. WPP said that in constant currency it saw revenue growth in all regions and business sectors, particularly North America, the UK, and Asia Pacific, Latin America, Africa and the Middle East and Central and Eastern Europe.
WPP added that whilst it is still in the process of reviewing its forecasts, early indications are that its revenue and net sales in the fourth quarter will be ahead of the first nine months.
WPP shares traded down 2.8%.
The FTSE 100 index was down 0.5% at 6,409.94, and the FTSE 250 was off 0.3% at 17,191.13, while the AIM All-Share traded up 0.1% at 748.13.
In Europe, the CAC 40 index in Paris was down 0.5% and the DAX 30 in Frankfurt was down 0.1%.
In Asia, the Nikkei 225 index in Tokyo closed up 0.7%, while the Hang Seng in Hong Kong ended down 0.2% and the Shanghai Composite up 0.5%.
Elsewhere on the FTSE 100, Aberdeen Asset Management shares were leading the gainers, up 4.0% after a report from the Financial Times on Sunday said the group has started sounding out potential buyers for the company as the emerging-markets-focused fund manager attempts to stem a recent slump in profitability, its share price and its assets under management.
People familiar with the process said Martin Gilbert, the chief executive of the company, had made informal approaches to a number of rivals in recent months. Gilbert, who also founded the business, declined to comment to the FT.
AstraZeneca traded up 0.1% after it said an advisory committee of the US Food and Drug Administration voted by a majority in favour of its lesinurad drug, in combination with a xanthine oxidase inhibitor, to be approved for the treatment of hyperuricemia associated with gout.
The US FDA's Arthritis Advisory Committee voted in favour by a count of 10 to 4. The FDA is not bound by this vote, but will take it into consideration whilst reviewing the application for the drug.
The drug is also under regulatory review in the European Union and other territories.
In the FTSE 250, Electra Private Equity said its net asset value per share produced a 25% total return for its investors in the year to the end of September.
The private equity investor said its net asset value per share rose to 3,914.0 pence per share in the year, equating to a total return for its shareholders of 25%. The company invested GBP188.0 million and realised GBP259.0 million over the course of the year and made a 34% gain on its existing portfolio. Shares in the company were up 2.1%.
TalkTalk Telecom Group was down 4.0%, the biggest faller in the FTSE 250. The company reported some progress was made on its cyber attack over the weekend, with significantly fewer customers effected than originally anticipated, as it hired defence contractor BAE Systems to investigate the incident, though it is understood to be facing rising calls for compensation related to the incident.
In the AIM index, Europa Oil and Gas was up 10% after it said it has three prospects offshore Ireland independently valued at USD7.00 billion.
The three prospects on the FEL 3/13 licence in the Porcupine basin offshore Ireland has been valued by ERC Equipoise, which have stuck a non-risked net present value of USD7.00 billion on the prospects and a risked net present value of USD1.10 billion.
Europa currently holds a 15% stake in the licence, but is currently awaiting for Irish government approval to take back a 100% interest in the licence after its partner pulled out earlier this year.
Aside from individual stocks, markets were focused on global monetary policy after last week's interest rate cuts by the People's Bank of China and European Central Bank President Mario Draghi's hints of further monetary policy easing in Europe as well. All of this comes before the US Federal Reserve monetary policy decision on Wednesday and the Bank of Japan's decision on Friday.
"The ECB hinted; the PBoC eased. Markets are hoping for the Fed to do nothing on Wednesday (as usual) and for the BOJ to ease (on Friday). The mood is risk-friendly," said Societe Generale strategist Kit Juckes.
"I'm still surprised at the strength of the reaction to the ECB's nods and winks but more fool me. As for the PBoC, the reaction to interest rate and [required reserve ratio] cuts has tended to be positive, as opposed to alarmed, despite the temptation to infer continued angst at the pace of slowdown, and continued difficultly fully sterilising the effects of FX intervention in response to capital outflows," Juckes added.
Still ahead in the economic calendar, German IFO business sentiment is at 0900 GMT, UK BBA Mortgage Approvals at 0930 GMT and German Bundesbank monthly report at 1000 GMT. Later in the day, the Confederation of British Industry releases its industrial trends survey at 1100 GMT, US new homes sales are at 1400 GMT and the Dallas Fed manufacturing business index is at 1430 GMT.
By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1
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