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Heathrow Expansion Approved But FTSE Unmoved. U.S To Open Higher

Published 25/10/2016, 11:13
Updated 03/08/2021, 16:15

The FTSE 100 regained the 7000 threshold thanks to a rise in mining stocks, though some poorly-received earnings updates tempered the gains. European shares picked up a strong lead from Asia where Japan’s Nikkei touched a six-month high.

Anglo American (LON:AAL) led the gains after it reported strong production and reiterated its output targets for the year. Copper miner Antofagasta (LON:ANTO) was also a top riser, mirroring a surge in copper prices. Shares of engineering group GKN (LON:GKN) slumped to the bottom of the main UK equity index after warning of a tougher macro environment.

Whitbread (LON:WTB) shares dropped 2.5% despite reporting a bigger than expected rise in profits and reiterated its full-year outlook. Whitbread continues to be the main beneficiary of Britain’s coffee addiction through its chain of Costa coffee shops. There is a little concern that like-for-like sales growth is headed in the wrong direction, though that trend is expected to reverse in the run up to Christmas. Whitbread shares have lost over half the post-Brexit gains and look undervalued. Both its coffee and hotel business stand to benefit from a rise in tourism and Brits holidaying at home following the drop in the pound.

London businesses will welcome the decision by the government to add a new runway at Heathrow. It will be a multi-year boom for the businesses that win contracts to build and serve a bigger Heathrow. As far as blue-chip shares, outsourcing firm Capita (LON:CPI) is bound to be a huge beneficiary of a new Heathrow runway.

Trading in the British pound was subdued ahead of BOE governor Mark Carney testifying before the Lords Economic Affairs Committee.

US stocks are expected to open higher with Apple (NASDAQ:AAPL) scheduled to report earnings after the close. Apple’s Q3 report has been slightly tainted by estimates from IDC that Apple Watch sales are down over 70% year-over-year, though still the biggest selling smart watch. The Apple Watch is the most desirable smart watch but sales figures suggest most consumers have no desire for smart watches. Investors will have to look elsewhere for the next big break-through product from Apple.

Twitter (NYSE:TWTR) rescheduling its earnings release from afterhours to pre-market on Thursday, the same time as Google’s Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) has incited furious speculation it is setting the scene for a takeover by one of the firms. It has also been reported the social network is gearing up to announce hundreds of job losses alongside its earnings report.

USA pre-opening levels

S&P 500: 2 points higher at 2,153

Dow Jones: 20 points higher at 18,243

Nasdaq 100: 11 points higher at 4,920

DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.

No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. "

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