Last checked at 
(Alliance News) - Stock prices in London are set to open slightly higher on Thursday ahead of the second major central bank policy announcement this week, while the pound posted solid gains overnight as voters in the UK head to the polling booths.
In early UK company news, Ocado reported good progress on its retail joint venture with Marks & Spencer, Dixons Carphone narrowed its interim loss, and PZ Cussons reported challenges in the UK and Africa, with its chief executive departing.
IG says futures indicate the FTSE 100 index of large-caps to open 8.65 points higher at 7,224.90 on Thursday. The FTSE 100 index closed up 2.49 points at 7,216.25 on Wednesday.
"Despite the strong finish in the US, markets here in Europe appear slightly less enthusiastic, opening modestly higher with all eyes set on today's European Central Bank rate meeting and more importantly Christine Lagarde's first press conference as ECB president," said Michael Hewson at CMC Markets.
In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average ending up 0.1%, the S&P 500 up 0.3% and Nasdaq Composite up 0.4%.
Ahead of the ECB, the US Federal Reserve announced its latest monetary policy decision on Wednesday, keeping its key lending rate unchanged.
The Fed said it will turn its sights to low inflation and developments in the world economy.
At its final meeting of 2019, the Fed's policy-setting Federal Open Market Committee left the benchmark interest rate in the target range of 1.50% to 1.75%, as expected, where it has been since the third rate cut of the year in October. The vote this time was unanimous, following several meetings where one or more FOMC members dissented.
Fed Chair Powell again said officials will wait to see the effects of the stimulus provided this year, adding that he expects the current stance to "remain appropriate" until something happens to "materially" change the outlook.
Now focus turns to the ECB and Christine Lagarde's debut as the central bank's new president. The ECB will announce its latest decision at 1245 GMT, followed by a press conference with Lagarde at 1330 GMT.
The euro was quoted at USD1.1138 early Thursday ahead of the ECB, higher than USD1.1088 late Wednesday.
And in the UK, currency traders will be waiting for an exit poll result at 2200 GMT, when polls close for Thursday's general election.
Sterling was quoted at USD1.3219 early Thursday, up from USD1.3177 at the London equities close on Wednesday.
The pound continues to hold up well, said CMC's Hewson, and the next move is likely to come with the release of the exit poll.
"While the polls have consistently given the Conservatives a decent lead over the past few weeks, some of the gaffes this week from both sides could well have shifted the voting calculus, particularly when voting intentions as far as party lines are concerned have never been less clear," he said.
And in early UK company news, Ocado said its joint venture with Marks & Spencer saw sales growth over the past 13 weeks.
For the period to December 1, Ocado Retail revenue was up 11% to GBP429.1 million, with average orders up 10% and the average order size stable at GBP104.9.
Ocado said it has completed its range review, confirming that M&S has substitutes at the same price or lower, and of the same quality or better, for the majority of products currently supplied by Waitrose.
"I am pleased to report further progress in bringing the Ocado offer to an ever increasing number of customers in the UK. Another strong quarter for customer orders means that we remain the fastest growing grocer in the country. The collaboration between M&S and Ocado Group is working well," said Ocado Retail Chief Executive Melanie Smith.
Dixons Carphone said it had a "robust" first half as its loss narrowed.
Revenue for the 26 weeks to October 26 totalled GBP4.71 billion, down from GBP4.89 billion a year ago. However, the company narrowed its pretax loss to GBP86 million from GBP440 million a year ago, after taking just GBP110 million in adjusting items for the recent period versus GBP500 million a year ago.
Adjusted pretax profit of GBP24 million was sharply lower than the GBP60 million recorded a year prior. As previously guided, this is expected to be around GBP210 million for the full-year.
Like-for-like sales fell 1% in the period, dragged down by UK & Ireland mobile, down 10%.
"We're on track to deliver what we promised this year, and with our longer-term transformation. In a tough UK Electricals market, we've gained significant share...Mobile is challenging as expected. As promised, this will be the trough year for Mobile losses, and it will be break-even by 2022," said Chief Executive Alex Baldock.
"Good progress, yes, but all of us at Dixons Carphone are shareholders, and conscious that our business is still nowhere near its full potential," Baldock added. "We're determined to realise that potential, and confident we're on the right path to do so."
Consumer goods firm PZ Cussons said challenging market conditions in some of its geographies led to a decline in first half revenue and operating profit, as it also announced the departure of its chief executive.
In Europe & the Americas, whilst Imperial Leather soap and shower gel brand Original Source continued to grow market share, continuing consumer uncertainty and "well-documented challenges" in the UK high street hit revenue and profit.
Revenue in Africa declined due to weakness in its mass market Home and Personal Care brands offsetting strong growth in Electricals. Profitability, meanwhile, struggled amid consumer pricing pressure.
"A stronger second half is expected subject to no further worsening of the economic and trading environments across our key geographies. Full-year revenue and adjusted profit before tax is expected to be modestly below the prior year on a like-for-like basis," said PZ Cussons.
Chief Executive Alex Kanellis will step down at the end of January. Kanellis has been CEO of PZ Cussons since 2006, and has overseen "significant development" at the company, it said. A search for his successor has started, and the process should be completed in the first half of 2020.
"During his 13 year tenure as chief executive officer, Alex has led numerous initiatives which have shaped the business, including the acquisition of the brands which now underpin the group's growth and future potential. The group is now ready to move onto the next chapter under new leadership and we are confident that the opportunities to return to profitable growth are significant," said Chair Caroline Silver, who will become executive chair from February 1.
Outsourcing firm Serco said it has seen strong revenue growth in 2019, particularly in the second half, with profit for the full year expected to show a solid increase.
Revenue for 2019 is expected to grow around 14% to GBP3.2 billion, comprising 7% organic growth and 5% from acquisitions, with 2% coming from currency benefits. Underlying trading profit is forecast to grow by 30% to around GBP120 million.
In the previous year, revenue had totalled GBP2.8 billion and underlying trading profit GBP93 million.
This momentum is set to continue in 2020, with revenue expected around GBP3.4 billion to GBP3.5 billion, and underlying trading profit to increase around 20% to GBP145 million.
"The results that we expect to report for 2019 will represent the second successive year of strong growth in revenue and profits, while our positive outlook for 2020 means that we expect to double our underlying trading profit from the GBP69 million achieved in 2017 to the GBP145 million we plan to deliver in 2020," said Chief Executive Rupert Soames.
Superdry reported a swing to interim loss as revenue slipped amid a "year of reset".
Revenue was down 11% to GBP369.1 million in the six months to October 26, while the company swung to a pretax loss of GBP4.2 million from a GBP26.4 million profit a year ago.
The fall in sales reflected an expected "year of reset" as the clothing retailer addresses legacy issues. The decline in retail sales moderated over the half, with second quarter store revenue stronger than the first three months as "key initiatives" were implemented.
Superdry has seen an "encouraging" early start to third-quarter peak trading, with the strongest online Black Friday day ever, it said.
"At this halfway point in our financial year, I am pleased with the progress we have made to comprehensively reset Superdry. We're doing this through our product and brand, our physical and digital retail operations and a renewed focus on the retailing basics. We are only eight months into a process that will take two to three years, but I have great confidence in the strength of our new executive leadership team," said Founder & Chief Executive Julian Dunkerton, who won a shareholder vote in April to get himself re-elected to the board.
Dunkerton had originally stepped down from being CEO in 2015 after co-founding the company in 2003. He remained as a product and brand director but stepped down in 2018.
He did add, though, that the company remains cautious over "challenging market conditions" surrounding the peak trading period.
In Asia on Thursday, the Japanese Nikkei 225 index closed up 0.1%. In China, the Shanghai Composite ended down 0.3%, while the Hang Seng index in Hong Kong is 1.3% higher.
Against the yen, the dollar was quoted at JPY108.62, soft versus JPY108.68 late Wednesday.
In commodities, gold was quoted at USD1,473.52 early Thursday, up from USD1,471.82 at the London equities close on Wednesday. Brent was quoted at USD63.98 early Thursday, higher than USD63.02 at the London equities close on Wednesday.
The economic events calendar on Thursday has eurozone industrial production at 1000 GMT and US producer prices at 1330 GMT.
By Lucy Heming; lucyheming@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
