• FTSE 100 extends gains, mining and oil stocks advance
• Wickes warning hurts sector
• Supermarkets fall as grocery sale volumes dip
10.30am: FTSE holds near highs, supermarkets slip as sales volumes dip
FTSE 100 holds near session highs trading 52.43 points higher at 7,358 boosted by gains in the mining and oil sectors combined with some positive trading updates.
The broader FTSE 250 remained weaker, down 41 points at 19,761, but well off earlier lows.
UK grocery sales have enjoyed a boost over the last month as Brits stocked up on picnic items during heatwave.
Sales rose 4.4pc in the four weeks to July 16, driven by fresh food and beverages as a desire for al fresco eating outweighed surging inflation.
Still, volume sales were down 4.1pc over the period as households tightened the purse strings for their weekly shop.
Discounters Lidl and Aldi were the biggest winners, with sales rising 14.8pc and 5.4pc respectively as more people switched to cheaper stores.
Tesco (LON:TSCO) sales rose 2pc and both Asda and Sainsbury's posted 0.3pc growth, according to Nielsen. Morrisons sales fell 4.8pc, while Ocado (LON:OCDO) dropped 1.2pc.
Shares in Tesco slipped back 1.78% to 260.10 whilst Sainsbury was 2.26% lower at 216.20p.
10.00am: FTSE extends gains, Bridgepoint tops FTSE 250 risers
FTSE 100 extended its gains in mid-morning trading as strength in index heavyweight sectors, mining and oil, pushed the market higher.
At 10.00am the lead index was trading 58 points higher at 7,364 although the FTSE 250 was 52.54 points lower at 19,750.45 as a profits warning by Wickes hit the building materials and home improvement sector in particular and retailers generally.
The warning by Wickes dragged Kingfisher (LON:KGF), Persimmon (LON:PSN), Travis Perkins (LSE:LON:TPK) and Howden Joinery lower amongst others.
A brighter spot in the FTSE 250 was Bridgepoint Group which topped the risers on Tuesday after strong H1 results were combined with positive comments for the future..
Shares in the asset management company soared 11.65% to 255p after the company reported a 15% and 17% increase in EBITDA and revenue respectively compared to 2021 H1 and said underlying fund performance was ahead of expectations.
Commenting on this performance, William Jackson, Bridgepoint chairman, said: "Our results for H1 2022 reflect the resilience and continued strong progress of our business despite a much more volatile market backdrop than expected at the start of the year.
"Looking forward, we expect market volatility and inflation pressures to continue and have positioned our investment activity accordingly. We will not be immune to macroeconomic events but believe our funds are well positioned for current conditions.”
9.05am: Oil and mining stocks rise
FTSE 100 made a strong start to trading on Tuesday boosted by gains in mining and oil stocks and some positive company trading updates.
Michael Hewson Chief Market Analyst at CMC Markets UK commented: “It’s been a mixed start to the day for European markets with the FTSE 100 edging higher after some positive earnings updates, while markets in Europe are under pressure as investors absorb what yesterday’s news from Gazprom (MCX:GAZP) is likely to mean when it comes to gas supplies over the next few days.”
At 9.00am, the blue chip index in the UK was 36.84 points higher at 7,343.14.
However, the broader FTSE 250 tumbled 97.99 points to 19,705.00 as domestic economic concerns were highlighted by a profits warning by home improvement retailer Wickes.
The company cut its FY profit guidance now forecasting adjusted pre-tax profits for the current year of £72mln-£82mln, down from its previous forecast of £83mln and below the £85mln recorded in the year to 1 January 2022 as the cost of living crisis started to bite.
Shares in Wickes slumped 15.6% following the update, dragging others in the sector lower as well. Amongst those suffering were Howden Joinery Group (LSE:HWDN) which fell 4.6% and Travis Perkins (LSE:TPK), down 6.45%.
Better news from Compass Group (LON:CPG) which raised its FY organic revenue growth guidance from around 30% to 35% as it reported that revenues had doubled in the three months to June 30th.
Shore Capital analyst Greg Johnson said he expects to raise his FY revenue forecast by £1bn to around £25bn and sees a potential £60m improvement in operating profits to above £1,500m.
Shares rose 2% to 1,881.50 following the update.
Unilever (LON:ULVR) extended its gains after raising its FY guidance as strong pricing offset a drop in volumes.
By 9.00am, Unilever was top of the FTSE 100 risers, up 2.49% to 4,014.00
Matt Britzman, Equity Analyst at Hargreaves Lansdown (LON:HRGV) commented “It’s no surprise to see inflation and global uncertainty called out as headwinds, but importantly for Unilever work done raising prices is keeping sales and profits moving in the right direction.”
“Having a host of strong brands is essential if any business wants to pass on rising costs, and Unilever has those up its sleeve - the ability to raise prices just shy of 10% and only have a 1.6% drop in volumes is a good place to be.”
8.25am: Footsie in fine fettle
FTSE 100 made a strong start to trading boosted by a batch of positive corporate trading updates.
At 8.25am the lead index was trading 30 points higher at 7,344 building on yesterday’s gains while the broader FTSE 250 was little changed, down 2.24 points at 19,800.
The mood could remain volatile as the FOMC meeting kicks off in the US with a 75bps rise in interest rate broadly expected.
Unilever enjoyed a positive start to trading with shares rising 1.6% to 3,979 as CEO Alan Jope said the company was raising its sales guidance for the year after reporting solid 1H results.
Underlying sales grew 8.1% while turnover rose 14.9% to EUR29.6bn and underlying EPS by 1% to EUR1.34.
The company also announced plans to extend its share buyback scheme in Q3.
Jope commented “The challenges of inflation persist and the global macroeconomic outlook is uncertain, but we remain intensely focused on operational excellence and delivery in 2022 and beyond."
Richard Hunter, Head of Markets at interactive investor, commented “Unilever is treading a fine line between growth and pricing out some of its customers, but for the moment the strategy is holding up."
Compass Group raised its FY organic revenue growth guidance from around 30% to 35% as it reported that revenues had doubled in the three months to June 30th.
All three of the company's trading regions are operating above 2019 levels, Compass said.
Compass also confirmed its full-year 2022 operating margin guidance of over 6%.
Shares in the group rose 1.17% on the back of the news to £18,69.
7.30am: FTSE 100 seen opening slightly higher, Unilever raises FY sales guidance
FTSE 100 seen opening slightly higher following gains in the US after a choppy session across the pond.
Spread betting companies are calling the blue chip index around 15 points higher as the market also digests a hefty batch of company updates.
In the US, the DJIA closed 90.75 points higher at 31,990.04, while the S&P 500 rose 5.21 points to 3,966.84.
Consumer goods company Unilever’s CEO Alan Jope said the company was raising its sales guidance for the year as it reported solid 1H results.
Underlying sales grew 8.1% while turnover rose 14.9% to EUR29.6bn and underlying EPS by 1% to EUR1.34.
The company also announced plans to extend its share buyback scheme in Q3.
Jope commented “The challenges of inflation persist and the global macroeconomic outlook is uncertain, but we remain intensely focused on operational excellence and delivery in 2022 and beyond."
easyJet (LON:EZJ) was also in focus reporting Q3 results to June 30th, 2022. The low cost airline provider reported a Q£ headline EBITDAR profit of £103m a hefty fall from Q3 2019 (£313m).
However, it said the headline loss before tax was £11m, including a £133m cost impact from disruption and a £36m loss from FX balance sheet revaluations.
Q4 is currently 71% booked, load factor slightly ahead of 2019 and sold ticket yield is 13% above FY19.
Commenting, Johan Lundgren, easyJet Chief Executive said:
"easyJet expects capacity to be c.90% of Q419 across our network of major European airports, with load factors targeted above 90%."
6.50am: FTSE 100 seen higher at open
FTSE 100 is expected to open higher as the torrent of FTSE 100 updates this week picks up speed.
Financial spread bet firms predict a gain of up to 20 points when Footsie opens, adding to the near 30-point rise on Monday.
Unilever and easyJet are the standouts among the reportees. Both have problems, many of them self-inflicted but it will be inflation in the form of the cost of raw materials and fuel that will set the tone (read more).
Overseas markets were mixed with the S&P up and Nasdaq down in the US and a similar pattern in Asia where Hong Kong is higher and Japan lower.