- 10.30am FTSE 100 reverses losses, up 20 points
- Premier Foods acquistion adds spice to share price
- Ferrexo in favour with Credit Suisse (SIX:CSGN), Vodafone (LON:VOD) steady after update
FTSE 100 pushed into positive territory after opening lower. By 10.25 the lead index was 20 points higher at 7,297.
Index heavyweight sectors mining and oil recovered earlier losses to help to blue chip index push higher.
The broader FTSE 250 index also advanced up 10 points 19,835.
Premier Foods rose 4.2% to 117.20p after announcing the £43.8m acquisition of The Spice Tailor which it said would add to earnings from year one.
The company said it would add £17.3m to revenues in FY22/23.
Ferrexpo surged 14.7% to 147.30p following an upgrade by Credit Suisse. The broker upgraded its rating to outperform with a target price of 250p.
9.35am: Vesuvius spurts higher
FTSE 100 remained down but was off its lows from earlier in the session.
The leading index was 15 points lower at 7261 with the broader FTSE 250 down 68 points at 19,756.
Shares in British engineered ceramics group, Vesuvius, surged 7% after a positive trading update.
The company expects 1H results to be well ahead of expectations guiding analyst forecasts higher.
Peel Hunt analyst, Harry Philips, maintained his buy rating and a 500p target price.
He thinks the stock looks cheap on just 7.3x 2023 PE with a 6.8% yield.
“The strength of Vesuvius’s market position in steel flow controls and foundries, which are process critical, provides it with a pricing profile that remains under-recognised in our view” Phillps said.
8.50am: FTSE 100 down 11 points
FTSE 100 recovered some of its early losses after a weak open.
The leading index was trading 11 points lower at 7,264 despite falls in oil and mining stocks.
Shares in both oil majors BP (LON:BP) and Shell (LON:RDSa) were lower while mining stocks were also weaker on concerns over economic growth.
The broader FTSE 250 index was 64 points lower at 19,760.
A busy week of corporate news and economic news lies ahead with the FOMC meeting on Wednesday adding spice to the mix.
Shares in easyJet (LON:EZJ) slumped 6% in early trading after rival RyanAir cautioned that the market remained fragile despite posting a first-quarter profit.
Profits at the Irish carrier were still well below levels seen before the pandemic.
Allegra Dawes, senior analyst at research firm Third Bridge commented “Ryanair (LON:RYA) is leading its peers in the recovery from COVID and plans to operate its summer 2022 at a capacity 15% higher than 2019 levels.
Our experts estimate revenue for this summer could be 20% higher than in 2019.”
“The international travel recovery remains fragile due to a worldwide pilot shortage and the problem with labour strikes.
However, our experts say that Ryanair has been more successful than others in coping with the crisis because it didn’t significantly reduce its workforce during the pandemic.”
7.20am: FTSE 100 opens down 20 points
FTSE 100 opened lower on Monday following weak performances in Asia overnight and in the US on Friday.
The leading UK index was in a cautious mood down 20 points at 7,256 in early trading.
Investors have plenty to digest in the week ahead with a plethora of corporate announcements expected together with some key economic data.
The Federal Reserve also meets on Wednesday with Deutsche Bank (ETR:DBKGn) expecting the FOMC to raise interest rates by 75bps (0.75%).
Richard Hunter, Head of Markets at interactive investor, said “Investors start the week with some trepidation, ahead of the latest Federal Reserve decision and a barrage of corporate earnings on both sides of the pond.”
Meanwhile, Hargreaves Lansdown (LON:HRGV) said its latest survey showed that confidence in UK economic growth has fallen 15% compared to last month.
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown said: “This is indicative of the multiple issues surrounding the UK’s next economic steps, with added political turmoil doing little to quell nerves."
"Top of mind is of course inflation and the diverging ways in which this can be dealt with. An over-zealous hand could see UK productivity falter further, but a soft approach could see inflation get its own way for longer.
"Together with broader recessionary fears being kicked up, it’s disheartening, but by no means surprising, to hear people are struggling to see a clear road ahead," she added.
Vodafone meanwhile kicked off the busy week with a first-quarter trading update (read more).
Revenues rose by 1.6% to €11.3bn, but hopes of an M&A deal alongside the numbers did not materialise though is working on something in its towers business said Nick Read, chief executive.
Shares in the telecom giant were little changed after the news at 128.3p.
6.50am: FTSE 100 tipped for dull start as Asia slips
FTSE 100 was seen opening lower and giving back some of last week’s gains after weak performances in Asia overnight.
Financial spread betting firms are predicting an opening fall of around 35 points today and ahead of a mass of corporate and economic news due this week.
Vodafone has started the ball rolling with a trading update.
First quarter revenues rose by 1.6% to €11.3bn, with call revenues up by 2.5%.
European growth supported by an acceleration in the UK boosted the number said the telecoms giant, though Germany was weak again.
Hopes of an M&A deal alongside the numbers did not materialise, but it is working on something said Nick Read, chief executive,
"Our near-term focus on our operational and portfolio priorities remains unchanged.
"We've made good progress towards stabilising our commercial performance in Germany, and we continue to actively pursue opportunities with Vantage Towers and to strengthen our market positions in Europe."