LONDON (Alliance News) - Stocks were trading lower at the open Thursday, with central banks in the UK, Europe and the US in focus, while shares in FTSE 250 recruiter Hays were down after reporting a hit to its net fee income from currency movements.
London's blue-chip index, the FTSE 100, traded down 0.5% at 6,308.42. The mid-cap FTSE 250 was down 0.5% at 16,948.31, and the AIM All-Share traded down 0.1% at 733.02.
In Europe, the French CAC 40 index was flat and the German DAX 30 was down 0.2%.
Asian stocks were mixed with the Shanghai Composite index up 3.0%, with the Shanghai market returning to trade after a week long holiday. The Japanese Nikkei 225 index ended down 1.0% and the Hang Seng index in Hong Kong was down 0.9%.
Hays shares led the early FTSE 250 fallers list, down 5.0%, after it said its net fee income rose in the first quarter from a year before, despite taking a heavy currency translation hit from its Asia Pacific operations, as trading in Europe and in the UK and Ireland remained robust.
The company said its total net fee income in the first quarter to the end of September was up 3.0% from a year earlier, while net fee income increased 8.0% on a like-for-like basis at constant currencies.
UK and Ireland net fee income grew 6.0% in the quarter, despite the group coming up against tougher comparables, while its Continental Europe and Rest of the World division delivered an 8.0% increase and an 11% increase on a like-for-like, constant currency basis, as it took a hit from the weak euro. The currency hit was more pronounced in Asia Pacific, where reported net fee income fell by 7.0% in the quarter, while like-for-like income was up by 6.0%.
Dunelm Group shares were up 1.5% after it reported growth in sales in the first quarter of its financial year which it said was due to improved product ranges, seasonal merchandise, and a better shopping experience for customers.
The homewares retailer said that total sales in the 13 weeks to October 3 grew 12% to GBP202.3 million from GBP180.6 million the year before, as like-for-like sales rose 5.5% to GBP183.3 million from GBP163.1 million. Dunlem said trading was strong both in-store and online, with all categories showing a robust performance.
In the FTSE 100, miners and oil company's made were amongst the worst performers having posted strong gains on Wednesday. Also amongst the fallers was Mondi, down 1.1%, even after it said its underlying operating profit was 27% higher in the third quarter year-on-year as it benefited from good trading in all of its divisions.
The Anglo-South African paper and packaging company said underlying operating profit in the third quarter rose to EUR221.0 million, up from EUR174.0 million a year earlier following strong trading in its Packaging Paper and Uncoated Fine Paper units and in its business in South Africa.
Elsewhere, DFS Furniture reported growth in profit in its recently-ended financial year as sales grew in what it said are "favourable" conditions in the upholstery market.
The furniture retailer said pretax profit in the year ended August 1 tripled to GBP10.7 million from GBP3.6 million the year before, as revenue grew 7.5% to GBP706.1 million from GBP656.8 million. It said that the financial year saw a continuation of favourable upholstery sector conditions as consumer confidence, housing market activity and consumer credit availability grow. DFS shares traded up 2.4%.
On the AIM market, Atlantic Coal said revenue in the first nine months of 2015 was around 26% higher year-on-year, and the miner expects total second half revenue to "at least match" the first.
The company said revenue in the first nine months of 2015 totalled around USD17.8 million, rising from USD14.1 million in the same period a year earlier. Those numbers are unaudited, and the company said it plans to release its unaudited revenue figures in its quarterly statements going forward. Atlantic Coal traded up 9.3%.
On the economic front, the Bank of England will be first central bank in focus Thursday, with its monetary policy decision and meeting minutes at midday London time. Analysts expect the bank to keep interest rates at 0.5%, with a vote split of 8-1, matching last month's split.
The European Central Bank then will release its monetary policy meeting accounts for September at 1230 BST. The accounts will give insight to how close the central bank is to further easing monetary policy.
Craig Erlam, senior market analyst at Oanda, said almost a year after the ECB announced its asset purchase programme, the impact has been minimal.
"The risks and challenges facing the ECB when it made its decision are still largely there and to make matters worse, the euro is back trading at more elevated levels. The ECB must act if it intends to regain control of this. The turmoil in emerging markets is not helping matters and trade is also likely to be hampered by the stronger euro," Erlam said.
Analysts at Commerzbank agree, noting that neither economic data in the eurozone nor the price of the euro is moving in the right direction for the ECB. "We therefore expect the ECB to extend its QE programme," Commerzbank said.
After the close of London's equity market, US Federal Reserve minutes are due at 1900 BST.
Aside from central banks, US initial and continuing jobless claims are at 1330 BST
By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1
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Hays (HAS)
Dunelm (DNLM)
Dfs Furn (DFS)
Mondi (MNDI)