Last checked at 
(Alliance News) - London's FTSE 100 opened lower on Tuesday, as a slow start to the week continues, with investors having simmering global tensions to be mindful of.
The US, UK and New Zealand have accused Beijing-backed cyber groups of being behind a series of attacks against lawmakers and key democratic institutions - allegations that prompted angry Chinese denials.
Focus this week will also be on a US inflation reading. The latest personal consumption expenditures data is released on Friday.
"US stocks traded cautiously on Monday as the holiday-shortened week began, with investors hesitating to increase their risk exposure ahead of critical inflation data. Although all three major US indices recovered from their intraday lows, the overall sentiment remained subdued," SPI Asset Management analyst Stephen Innes commented.
"After a strong performance last week, investors may be taking a hiatus and possibly enjoying the spring break, while others are adopting a wait-and-see approach for the next bullish catalyst, such as a favourable outcome from the Fed's preferred inflation gauge. In this context, an 'all-clear' signal would entail the inflation data meeting consensus expectations or coming in lower than anticipated."
In early UK corporate news, Flutter Entertainment's annual loss widened, while Smiths Group's half-year profit ticked higher and it announced its chief executive has left the role with immediate effect.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: down 0.3% at 7,895.02
----------
Hang Seng: up 1.0% at 16,624.84
Nikkei 225: closed marginally down at 40,398.03
S&P/ASX 200: closed down 0.4% at 7,780.20
----------
DJIA: closed down 162.26 points, 0.4%, at 39,313.64
S&P 500: closed down 15.99 points, 0.3%, at 5,218.19
Nasdaq Composite: closed down 44.35 points, 0.3%, to 16,384.47
----------
EUR: up at USD1.0843 (USD1.0838)
GBP: up at USD1.2652 (USD1.2643)
USD: down at JPY151.31 (JPY151.41)
Gold: down at USD2,173.74 per ounce (USD2,176.03)
(Brent): down at USD85.85 a barrel (USD86.06)
(changes since previous London equities close)
----------
ECONOMICS
----------
Tuesday's key economic events still to come:
12:30 GMT US durable goods orders
13:00 GMT US house price index
14:00 GMT US Conference Board consumer confidence
14:00 GMT US Richmond Fed manufacturing index
----------
In rare and detailed public accusations against China, a trio of Washington, London and Wellington described a series of cyber breaches over the last decade or more, in what appeared to be a concerted effort to hold Beijing accountable. The US Justice Department charged seven Chinese nationals over what it said was a 14-year "prolific global hacking operation" designed to aid China's "economic espionage and foreign intelligence objectives." Washington said a unit, dubbed APT31, was behind the attacks, describing it as a "cyberespionage program" run by China's powerful Ministry of State Security out of the central city of Wuhan. With Britain expected to hold a general election within months, UK Deputy Prime Minister Oliver Dowden also made a shock announcement that "a Chinese state-affiliated entity" had likely "compromised" the country's Electoral Commission.
----------
BROKER RATING CHANGES
----------
Deustche Bank raises Kingfisher target to 245 (225) pence - 'hold'
----------
COMPANIES - FTSE 100
----------
Paddy Power owner Flutter Entertainment reported a pretax loss for 2023 of USD1.09 billion, widening from USD295 million in 2022, despite revenue rising 25% to USD11.79 billion from USD9.46 billion. Costs of sales rose 29% to USD6.20 billion from USD4.81 billion, sales and marketing expenses up 26% to USD3.78 billion from USD3.01 billion, while general and administrative expenses were up 37% to USD1.60 billion from USD1.17 billion. Adjusted earnings before interest, tax, depreciation and amortisation grew 45% to USD1.87 billion, however. "As anticipated, our number one position in the US has transformed the group's earnings profile during 2023 as FanDuel delivered a positive US full year adjusted Ebitda for the first time," Chief Executive Peter Jackson said. In 2024 trading to-date, it said revenue was up 23% from the equivalent period a year earlier. Looking ahead, it expects 2024 revenue growth of around 18% from a year earlier and further adjusted earnings before interest, taxes, depreciation and amortisation growth of 30%.
----------
Engineering company Smiths Group reported pretax profit rose 2.4% in the six months ended January 31 at GBP171 million from GBP167 million a year earlier. This was as revenue improved 0.7% to GBP1.51 billion from GBP1.50 billion. It raised its interim dividend by 5.0% to 13.55 pence compared to a year earlier. This was alongside unveiling a GBP100 million share buyback programme, in which the first tranche of up to GBP50 million will be completed by the end of September. Looking ahead, it reaffirmed its financial 2024 organic revenue growth guidance of between 4% and 6%. Outgoing Chief Executive Officer Paul Keel commented: "We expect growth to improve in the second half, driven by a record order book for Smiths Group, continued strength in end markets like aerospace, security and energy, as well as gradually improving conditions in the industrial segments that were softer in the first half." Smiths announced that Keel has decided to step down as CEO with immediate effect, as he is returning to the US where most of his family is based to take on a new role as CEO of a US public company. Roland Carter has been named as Keel's successor at Smiths Group, also effective immediately. Since 2018, Carter has led the Smiths Detection division. "Here he has been instrumental in developing its order book that has grown to be the largest in its history," the company said.
----------
The boss of British American Tobacco has said a ban on disposable vapes in the UK will not be "effective", claiming similar legislation overseas has not worked. Last week, the government introduced legislation aimed at curbing youth smoking, with the tobacco & vapes bill restricting the sale of tobacco so that anyone turning 15 this year, or younger, will never legally be sold cigarettes. It will effectively raise the age of tobacco sale by one year every year, with the aim of stopping today's youngsters from ever taking up smoking in the first place. However, Tadeu Marroco, chief executive of BAT, told the BBC similar legislation introduced overseas had only pushed people to the illegal market.
"In other countries this hasn't been effective," he said. "In Australia they have banned the whole category, and the amount teenagers use in the illegal market is very high. The same is happening in Brazil."
----------
COMPANIES - FTSE 250
----------
Housebuilder Bellway reported pretax profit more than halved to GBP117.4 million in the six months ended January 31 from GBP305.9 million a year earlier. This was in line with revenue falling 30% to GBP1.27 billion from GBP1.81 billion. It reduced its interim dividend payment by 64% to 16.0 pence per share from 45.0p a year earlier. During the half-year period, housing completions fell 28% to 4,092 from 5,695. Chief Executive Officer Jason Honeyman commented: "Although the economic backdrop remains uncertain, the gradual reduction in mortgage interest rates throughout the first half has helped to ease affordability constraints and we have been encouraged by the improvement in reservations since the start of the new calendar year." It said it is on track to deliver volume output of around 7,500 homes for the year, down from 10,945. The CEO added: "Overall, the long-term fundamentals of the UK housebuilding industry remain attractive, given the shortage of energy efficient and affordable homes across the country. We remain confident that the group's robust balance sheet and operational strength, combined with the depth and quality of our land bank, will enable Bellway to successfully navigate changing market conditions and capitalise on future growth opportunities."
----------
OTHER COMPANIES
----------
Research and data analytics firm YouGov reported pretax profit fell 50% in the six months ended January 31 to GBP10.4 million from GBP21.0 million a year earlier, despite revenue climbing 8.9% to GBP143.1 million from GBP131.4 million. This was because administrative expenses rose 23% to GBP112.3 million from GBP91.1 million, while cost of sales rose 7.0% to GBP21.3 million from GBP19.9 million. It declared no interim dividend, unchanged from a year earlier. Looking ahead, Chief Executive Officer Steve Hatch commented: "As we enter the second half, our clients are increasingly looking for high-quality, data-driven solutions. The quality of our products and services, the accelerated sales momentum seen in the second quarter, and our robust sales pipeline gives us confidence that YouGov can achieve growth for the full year in line with current market expectations."
----------
By Greg Rosenvinge, Alliance News senior reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.