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(Alliance News) - Equities in Europe had a slow start to Tuesday's session, despite Asian markets rising on strong China data and New York stock futures pointing higher following the long weekend in the US.
The FTSE 100 index was down 17.65 points, 0.3%, at 7,169.53. The mid-cap FTSE 250 index was down 27.82 points, 0.1%, at 24,220.53. The AIM All-Share index was up by less than 0.1 of a point at 1,314.10.
The Cboe UK 100 index was down 0.2% at 713.03. The Cboe 250 was down 0.1% at 22,019.88, and the Cboe Small Companies was down 0.2% at 15,552.18.
In mainland Europe, the CAC 40 stock index in Paris was marginally lower and the DAX 30 in Frankfurt was down 0.1%.
In China, however, the Shanghai Composite ended up 1.5% and the Hang Seng Index in Hong Kong was up 0.9% in late trade, while Tokyo's Nikkei 225 ended 0.9% higher.
"With US markets closed yesterday for the Labor Day holiday, markets in the Asia-Pacific region had to find their own direction today. In Japan, this simply meant a continuation of the equity market rally that has now stretched seven consecutive sessions," Daiwa Capital Markets analyst Chris Scicluna commented.
A better-than-expected trade surplus for China also lifted the mood in Asia, soothing recessionary fears for the world's second-largest economy.
Exports jumped 26% on-year, while imports rose 33%, according to the Customs Administration. The readings were both sharply up from July and far better than estimates in a Bloomberg survey of 17% and 27%, respectively.
China's trade surplus came in at USD58.3 billion, up 2.2% on-year and higher than the USD53.2 billion expected.
In London, blue-chip housebuilders made a tepid start to the session, as data showed UK house price growth is slowing, despite another record being hit. Persimmon and Barratt Developments were down 0.7% and 0.5% respectively, while Taylor Wimpey fell 0.8%.
Mid-cap peer Vistry rose 4.2%, however. The housebuilder lifted its full-year profit outlook.
Vistry's revenue in the six months to June 30 jumped 82% to GBP1.10 billion from GBP606.4 million. It swung to a pretax profit of GBP156.2 million from a GBP12.2 million loss a year earlier.
Completions leapt 76% to 5,351 during the half, from 3,034 a year ago, with the 2020 comparison period lapping a time which saw the UK housing sector shuttered due to Covid-19 containment measures.
It proposed a 20 pence dividend, having not declared one this time a year earlier.
Vistry's half-year earnings came as Halifax reported that, while momentum continues to slow, UK house prices still notched another record high in August.
The average UK house price rose 0.7% monthly in August to GBP262,954. The annual growth was 7.1%, slowing from 7.6% in July.
Growth still topped market expectations, however. According to consensus cited by FXStreet, UK house prices were expected to register monthly growth of 0.4% in August, and an annual rise of 5.5%.
The pound was quoted at USD1.3842 early on Tuesday morning in London, up from USD1.3820 at the London equities close on Monday. The euro stood at USD1.1880, up from USD1.1860. Against the yen, the dollar was trading at JPY109.91, up from JPY109.85.
Back in London, TP ICAP lost 4.4%, with the interdealer broker reporting "subdued" market conditions.
In the six months to June 30, revenue fell 5.4% to GBP936 million from GBP990 million. Its average broker headcount rose to 2,760 from 2,746, though revenue per broker dropped 12% to GBP289,000 from GBP330,000.
Pretax profit dropped 64% to GBP28 million from GBP78 million a year earlier.
"The group's performance reflects the challenging trading conditions caused by the combination of quiet secondary markets and ongoing disruption caused by Covid-19," TP ICAP explained.
It cut its interim payout by 29% to 4.0 pence per share from 5.6p.
In its largest division, Global Broking, TP ICAP said "market volumes were subdued throughout the first half of 2021". The unit includes rates, credit, equities and foreign exchange.
TP ICAP added: "Trading activity in July and August 2021 is broadly in-line with the prior year. Despite the subdued trading conditions we have experienced in the period, together with continuing uncertainty caused by quiet markets and the disruption from Covid-19, we anticipate full-year revenue for the group, excluding Liquidnet, to be broadly in line with 2020 on a constant currency basis."
Back among the blue-chips, DS Smith rose 2.0%, the best performer. The packaging firm said it is pleased with progress made since it ended its last financial year in April.
It affirmed that Covid-19 has accelerated a drive to sustainability and e-commerce.
"Accordingly, while the macroeconomic environment remains uncertain, we remain confident about the prospects for the business in this financial year and beyond," Chief Executive Miles Roberts said.
DS Smith said box volumes have grown "very strongly" in the period since May 1, rising annually and topping levels seen in 2019.
Cost pressures are mounting, however.
The company explained: "Input costs have continued to rise with notable increases in the cost of energy and transportation. Combined with the cost of old corrugated cases remaining high, this has resulted in further significant increases in the price of paper. Given the strong demand for our packaging we have seen good progress towards recovering these increases."
In New York, stock market futures were higher following the Labor Day break. The Dow Jones Industrial Average and S&P 500 are called up 0.1%, with the Nasdaq Composite up 0.2%.
European markets on Monday ended higher, after Friday's US nonfarms data calmed fears that the Federal Reserve will taper its QE measures sometime soon.
"With everybody back at their desks in the US today and tomorrow, the price action in New York this evening may give us a more accurate representation of the data's impact," Oanda analyst Jeffrey Halley commented.
Brent oil was quoted at USD72.38 a barrel early Tuesday, up from USD72.20 late Monday. Gold fetched USD1,819.86 an ounce, down from USD1,822.55.
Still to come on the economic calendar on Tuesday is eurozone economic growth figures at 1000 BST, and at the same time the latest ZEW economic survey in Germany is released.
By Eric Cunha; ericcunha@alliancenews.com
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