LONDON MARKET PRE-OPEN: Buybacks From CRH, Playtech And NMC Health

(Alliance News) - Stocks in London are set to open lower on Thursday after minutes from the US Federal Reserve were less dovish than markets had been anticipating.

In early UK company news, CRH, Playtech and NMC Health all unveiled share buyback plans, while Genus promoted its finance director to the role of chief executive.

IG says futures indicate the FTSE 100 index of large-caps to open 32.77 points lower at 7,171.20 on Thursday. The FTSE 100 index closed up 78.97 points, or 1.1%, at 7,203.97 on Wednesday.

"There's a very capricious mood leaching into markets today, which has a decidedly risk-off note. The FOMC minutes fell considerably short of confirming the markets dovish pricing," said Stephen Innes at Valour Markets.

Trade uncertainty and weak global growth are likely to remain persistent risks, and could slow the US economy, the Federal Reserve said on Wednesday.

While they made no mention of US President Donald Trump's constant attacks on Fed Chairman Jerome Powell, officials said they would be "guided by incoming information and its implications for the economic outlook" and avoid "any appearance of following a preset course," according to the minutes of the Fed's July 30-31 policy meeting.

The July rate cut was viewed as "part of a recalibration... or mid-cycle adjustment" and, given the uncertainty surrounding the outlook, the officials "highlighted the need for policymakers to remain flexible and focused on the implications of incoming data for the outlook."

However, the minutes showed the central bankers are not unified, with several opposed to cutting rates while a couple favored a bigger cut.

Michael Hewson at CMC Markets said: "The prospect of a 50bp cut next month is much less of a probability, than it was 24 hours ago. Quite simply given the data, and the tone of the minutes the current economic outlook doesn't appear to support a view that the committee would be able to coalesce around a cut the size of 50bp, whatever a hectoring President Trump would have them do."

"Despite all of the above Fed chair Jay Powell could upend all of this with his speech at Jackson Hole tomorrow, by going all uber-dovish, a dangerous play if he can't take the rest of the FOMC with him, or he could double down and push back on market expectations, reinforcing the Fed's position as an independent central bank," Hewson added.

In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average ending up 0.9%, the S&P 500 up 0.8% and Nasdaq Composite closing 0.9% higher.

In the wake of the Fed minutes on Wednesday, the Jackson Hole symposium of central bankers kicks off on Thursday. Fed Chair Powell is due to speak on Friday. And, in another central banking event this week, the European Central Bank's minutes from July's meeting will be released at 1230 BST on Thursday.

The economic events calendar elsewhere has PMI readings from Germany at 0830 BST, the eurozone at 0900 BST and the US at 1445 BST.

In Asia on Thursday, the Japanese Nikkei 225 index closed up 0.1%. In China, the Shanghai Composite is down 0.1%, while the Hang Seng index in Hong Kong is 0.9% lower.

In early UK company news, building materials firm CRH reported interim profit growth and expanded its share buyback programme.

Revenue for the first half of 2019 came in at EUR13.22 billion, up from EUR11.94 billion a year ago. Pretax profit rose to EUR707 million from EUR497 million.

"On the back of our strategic initiatives, CRH has delivered significant profit growth in the first half of 2019, with a good performance in our heritage business and strong contributions from recent acquisitions," said Chief Executive Albert Manifold.

He added: "We are pleased to report that the board plans to continue our share buyback programme with a further tranche of EUR350 million to be completed by year end. This will bring our total share repurchases in 2019 to EUR900 million."

AstraZeneca said roxadustat has been approved in China for the treatment of anaemia in non-dialysis-dependent patients with chronic kidney disease.

AstraZeneca and FibroGen China are collaborating on the development and commercialisation of roxadustat in China. FibroGen China, based in Beijing, is a wholly-owned subsidiary of FibroGen Inc.

UAE-focused private healthcare firm NMC Health backed its annual guidance after a solid first half.

Revenue for the first half of 2019 rose to USD1.24 billion from USD932.0 million, with pretax profit rising to USD140.6 million from USD118.7 million.

NMC said it continues to view the future "with confidence" and reiterated its annual guidance.

"Given the company's strong operational and financial performance and continued trend of performing in line with expectations, management remains highly confident in relation to future performance. Looking ahead, the board intends to continue its successful growth strategy, which it believes will continue to create significant value for shareholders over the long-term," NMC said.

Separately, the FTSE 100 constituent said it intends to launch a USD200 million share buyback programme.

Animal genetics firm Genus said Finance Director Stephen Wilson has been promoted to the role of chief executive, with effect from "the close of business" on September 13.

Current CEO Karim Bitar in March said he would be stepping down to head up ConvaTec.

Wilson's finance responsibilities will be undertaken by Janet Duane, currently financial controller on an interim basis. A search for a permanent replacement finance director has already commenced.

Gaming firm Playtech set out share buyback plans despite posting a fall in profit.

Revenue for the six months to June 30 was EUR736.1 million, versus just EUR436.5 million a year ago. Pretax profit, however, fell to EUR28.0 million from EUR124.2 million after the firm booked EUR108.6 million in depreciation and amortisation charges, versus just EUR60.6 million a year ago.

In addition, Playtech recognised a EUR87.4 million fair value gain on equity investments in the year ago period, which fell to just EUR141,000 in the first half of 2019.

Playtech halved its interim dividend to 6.1 euro cents from 12.1 cents a year ago but, including a planned EUR25 million buyback, total shareholder returns were up 15% year-on-year for the half.