(Alliance News) - Stocks were in the green early on Thursday in London, with the market welcoming several updates from FTSE 100 companies.
But not all. Royal Bank of Scotland was dragging on the large-cap index after posting a quarterly loss, in part due to PPI payments.
The FTSE 100 stock index was 10.11 points higher, or 0.1%, at 7,270.85. The FTSE 250 was up 51.97 points, or 0.3%, at 20,232.91, and the AIM All-Share was up 0.1% at 886.82.
The Cboe UK 100 index was up 0.6% at 12,398.75. The Cboe UK 250 was 0.2% higher at 18,165.80 and the Cboe UK Small Companies was broadly flat at 11,142.03.
In mainland Europe, the CAC 40 in Paris was up 0.4% and the DAX 30 in Frankfurt 0.6% higher.
On the London Stock Exchange, shares in pharmaceutical firm AstraZeneca climbed 2.3% as it reported a 16% rise in product sales for the third quarter, to USD6.13 billion, helping revenue rise 20% to USD6.41 billion.
AstraZeneca's pretax profit for the quarter narrowed by 14% to USD409 million, however, on higher R&D and administrative costs.
The company said all three therapy areas and every sales region had an "encouraging" performance.
AstraZeneca has, as a result, upgraded 2019 product sales guidance. This is now expected to be in the low-to-mid-teens as percentage growth, compared to low double-digit growth before. Earnings guidance is reiterated.
Business publisher and analytics firm RELX on Thursday reaffirmed 2019 guidance after a solid first nine months of the year. FTSE 100-listed RELX delivered 4% underlying revenue growth for the first nine months of 2019, with all four business areas delivering an improvement year-on-year.
Shares were 2.2% higher in early trade.
"The full-year outlook is unchanged. As we enter the final quarter of 2019 key business trends are in line with the full year 2018. We remain confident that, by continuing to execute on our strategy, we will deliver another year of underlying growth in revenue and in adjusted operating profit, together with growth in adjusted earnings per share on a constant currency basis in 2019," said RELX.
Engineering and industrial software firm AVEVA climbed 2.0% as it said strong sales execution has led to solid revenue growth.
AVEVA achieved low double-digit revenue growth on a proforma constant-currency basis in the financial first half ended September. On a reported basis, revenue benefited from foreign exchange movements, the company said.
"This growth reflects a continuation of the strong sales execution seen in the first quarter, and further benefited from the early renewal of a large engineering, procurement, and construction contract and a moderate increase in revenue from multi-year contracts," commented FTSE 100-listed AVEVA, without naming the large client.
Royal Bank of Scotland fell 3%. It reported a GBP8 million operating loss before tax for the quarter to September, after a GBP2.69 billion profit the year before.
The loss, RBS said, was caused in part by a GBP900 million provision for PPI payments.
The lender also said income was hurt by a "particularly challenging" quarter for NatWest Markets, though income was "broadly stable" across retail and commercial businesses compared to the second quarter of 2019.
Looking ahead, RBS reiterated all guidance given for 2019 and 2020 at the time of its interim results.
In the FTSE 250, refractory products company RHI Magnesita slumped 7.9% as it warned the global steel market has weakened further in the third quarter of 2019, with customers "significantly" reducing inventories.
As a result, RH Magnesita's sales volumes have fallen. Third-quarter Steel division revenue has dipped 14% year-on-year, and second half Steel performance is expected to be "materially" below the first half.
Elsewhere, the Industrial division is trading well. However, RHI Magnesita said this has not been able to offset the slowdown in Steel. As a result, the company has lowered full-year adjusted earnings before interest, tax, and amortisation guidance to between EUR400 million and EUR410 million.
KAZ Minerals rose 4.6% after it reported "record" quarterly copper and gold production for the third quarter ended September, after good performance at the Aktogay and Bozshakol mines.
KAZ reiterated annual copper guidance, but said gold production is now likely to beat the top end of its guidance range, 185,000 ounces, by around 5%.
AJ Bell was up 3.3%. The stockbroker reported a 17% rise in customer numbers for its year ended September, and assets under administration has climbed 13% to GBP52.3 billion. AJ Bell said growth was mostly driven by its platform business.
Total net inflows were GBP3.9 billion for the year, compared to GBP4.4 billion a year before.
Woodford Patient Capital Trust shares rose 12%. The firm has appointed a new manager, Schroder Investment Management. Once a formal deal is signed, by the end of 2019, Woodford will rename to Schroder UK Public Private Trust, ending its association with disgraced stock-picker Neil Woodford.
In focus later on Thursday will be the ECB's interest rate decision is due at 1245 BST, followed by a press conference with ECB President Mario Draghi.
"The market is desperate for information on ECB monetary policy. It would seem the council is deeply divided into a 'keep going' camp and a fraction who is tired of the ultra-expansionary monetary policy," said analysts at Commerzbank.
"There is no decision to take anyway. Initially the central bankers have to wait for the effects of the most recent decisions. And as it is the last press conference under Draghi as president his comments are unlikely to clarify the future course of the European central bankers."
"In view of Christine Lagarde taking over, focus will be on stressing continuity. But that is what is always said when there is a new appointment at the top of an important institution. Statements of this nature do not provide any relevant information," they continued.
EU leaders are continuing to consider whether to grant a further extension to Brexit against the objections of Boris Johnson.
The UK prime minister has warned he will push for a snap general election if he is forced to accept a lengthy delay to Britain's departure, potentially into the new year.
However there are signs of divisions among ministers and senior No 10 advisers over whether to press for a December poll.
Dominic Cummings, Johnson's chief adviser, is reportedly leading calls to abandon attempts to get the prime minister's Brexit deal through Parliament and go for an election.
The pound was quoted at USD1.2929 Thursday, up against USD1.2887 late Wednesday.
The economic data calendar on Thursday has a PMI reading from the eurozone at 0900 BST.
In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average closing up 0.2%, the S&P 500 0.3% higher, and the Nasdaq Composite 0.2% higher.
The Japanese Nikkei 225 index closed 0.6% higher on Thursday. In China, the Shanghai Composite ended broadly flat, while the Hang Seng index in Hong Kong is up 0.7% in late trade.
By George Collard; georgecollard@alliancenews.com
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