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(Alliance News) - Stocks in London are expected to edge into the red on Tuesday, as investors look ahead to the latest series of flash PMI prints from major economies.
In early economic news, the Office for National Statistics estimated the UK unemployment rate at 4.2% in the three months to August, using new experimental data.
In early company news, Barclays reported a rise in total income, but profit dipped from the prior year. Softcat raised annual dividends, and said its current year is on track to meet market guidance.
The economic calendar has flash purchasing managers' index releases coming out for the EU, Germany, the UK and the US.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called down 6.7 points, 0.1%, at 7,368.13
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Hang Seng: down 0.9% at 17,020.79
Nikkei 225: closed up 0.2% at 31,062.35
S&P/ASX 200: closed up 0.2% at 6,856.90
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DJIA: closed down 190.87 points, or 0.6%, at 33,936.41
S&P 500: closed down 7.12 points, 0.2% at 4,217.04
Nasdaq Composite: closed up 34.52 points, or 0.3%, at 13,018.33
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EUR: up at USD1.0680 (USD1.0639)
GBP: up at USD1.2271 (USD1.2226)
USD: down at JPY149.68 (JPY149.79)
GOLD: down at USD1,976.35 per ounce (USD1,977.60)
OIL (Brent): down at USD90.03 a barrel (USD91.05)
(changes since previous London equities close)
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ECONOMICS
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Tuesday's key economic events still to come:
10:00 CEST EU flash PMI
10:00 CEST EU ECB bank lending survey
08:00 CEST Germany GfK consumer climate survey
09:30 CEST Germany flash PMI
09:30 BST UK flash PMI
11:00 BST UK CBI industrial trends survey
08:55 EDT US Johnson Redbook retail sales index
09:45 EDT US flash manufacturing PMI
09:45 EDT US flash services PMI
10:00 EDT US Richmond Fed business activity survey
16:30 EDT US API weekly statistical bulletin
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The unemployment rate for the period for June to August was estimated at 4.2%. This was a 0.2 percentage point increase compared with the period from March to May, the ONS said. The ONS explained that the figures are an "alternative series of estimates", due to "increased uncertainty" around the Labour Force Survey estimates. It had delayed the release by a week due to a low response rate for the survey. Last month, the ONS said unemployment stood at 4.3% in the three months ended July.
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BROKER RATING CHANGES
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Barclays raises Rio Tinto to 'overweight' (equal weight) - price target 6,300 pence
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Jefferies cuts Burberry price target to 1,800 (2,200) pence - 'hold'
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Jefferies cuts Mobico Group price target to 100 (160) pence - 'buy'
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COMPANIES - FTSE 100
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Barclays said, in the third quarter, total income rose 5.2% year-on-year to GBP6.26 billion from GBP5.95 billion. Operating costs climbed 10% to GBP3.95 billion, and pretax profit fell 4.3% to GBP1.89 billion from GBP1.97 billion. Its credit impairment charges rose to GBP433 million from GBP372 million. Its common equity tier 1 rose to 14.0% on September 30 from 13.9% at the end of December, and 13.8% a year before. "We delivered an 11.0% [return on tangible equity] in Q3, against a mixed market backdrop, as we continued to manage credit well, remained disciplined on costs and maintained a strong capital position, with a [CET1] ratio of 14.0%. We see further opportunities to enhance returns for shareholders through cost efficiencies and disciplined capital allocation across the group," said Chief Executive C S Venkatakrishnan.
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COMPANIES - FTSE 250
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IT infrastructure provider Softcat raised its annual dividend, after reporting bottom-line growth in its financial year ended July 31. Pretax profit climbed to GBP141.9 million from GBP136.1 million a year before. Revenue fell 8.6% to GBP985.3 million from GBP1.08 billion a year before, but cost of sales fell at a faster pace of 23% to GBP611.5 million from GBP750.7 million. It proposed a final dividend of 17.0 pence, bringing the annual total to 25.0p - a 4.6% increase from the prior year. It also maintained a special dividend of 12.6p. "The company is well positioned to continue to deliver double-digit gross profit growth through the year, driving further market share gains. We expect full-year FY2024 operating profit to be in line with market expectations," Softcat said.
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OTHER COMPANIES
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Microsoft announced an AUD5 billion, or USD3.2 billion, investment in Australia focused on cloud computing and artificial intelligence, saying it would boost the country's economy and cyber defences. Details of the deal were outlined by bosses at the US tech giant and by Australia's prime minister, Anthony Albanese, who is on a four-day official visit to the US. It represents Microsoft's largest investment in Australia in its 40-year history in the country, the company said in a statement.
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By Elizabeth Winter, Alliance News senior markets reporter
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