LONDON MARKETS: FTSE 100 Lifted As Unilever Advances, With ECB Meeting In Focus
July 20 2017 - 4:22AM
Dow Jones News
By Carla Mozee, MarketWatch
Retail sales on deck; EasyJet shares in the red
U.K. stocks moved higher on Thursday, with Ben & Jerry's ice
cream maker Unilever PLC gaining after its earnings report, one of
a stream of financial releases.
A report on British retail sales and an update from the European
Central Bank due later could provide cues for investors.
The FTSE 100 index rose 0.3% to 7,451.90, with only the basic
materials sector losing ground. A win Thursday would be the
blue-chip market's second in a row after it advanced 0.6% on
Wednesday.
(http://www.marketwatch.com/story/ftse-100-slips-as-miners-sag-but-deal-lifts-reckitt-benckiser-shares-2017-07-19)
Earnings season: More corporate results were rolling in
Thursday. Unilever shares (ULVR.LN) picked up 1% after the maker of
Lipton tea and Alberto Balsam hair care products said first-half
net profit rose to 3.11 billion euros ($3.58 billion) and that
margins should be better than previously expected over the full
year.
(http://www.marketwatch.com/story/unilever-posts-profit-gain-lifts-margin-guidance-2017-07-20)
Anglo American PLC (AAL.LN) was up 0.5% as the miner raised this
year's production guidance for its Kumba Iron Ore business in South
Africa, and posted an 8% increase in copper equivalent production
(http://www.marketwatch.com/story/anglo-american-ups-kumba-iron-ore-output-guidance-2017-07-20)
in the second quarter.
But shares of EasyJet PLC (EZJ.LN) were dragged down 4.4% even
as the budget airline said unit revenue turned positive
(http://www.marketwatch.com/story/easyjet-quarterly-unit-revenue-turns-positive-2017-07-20)
in the third quarter after a period of sharp declines. EasyJet is
currently searching for a new chief executive as Carolyn McCall
plans to leave to run broadcaster ITV (ITV.LN) .
Off the main benchmark, shares of Sports Direct International
PLC (SPD.LN) climbed 5.2%, pushing past the sports-equipment
retailer's report that a slide in the pound drove down fiscal 2017
pretax profit.
(http://www.marketwatch.com/story/sports-direct-profit-hit-by-brexit-battered-pound-2017-07-20)
(http://www.marketwatch.com/story/sports-direct-profit-hit-by-brexit-battered-pound-2017-07-20)Moneysupermarket.com
Group PLC shares (MONY.LN) tumbled 9.4% as the comparison website
warned adjusted operating profit will be at the lower end of market
consensus for the full year.
(http://www.marketwatch.com/story/moneysupermarketcom-warns-on-yearly-profit-2017-07-20)
Sterling and ECB: Meanwhile, the pound pulled back to $1.299
from $1.3025 late Wednesday in New York. A stronger pound can put
pressure on shares of export-focused multinational companies that
pull in revenue from overseas.
Investors will be watching for a report on U.K. retail sales for
June will be released at 9:30 a.m. London time, or 4:30 a.m.
Eastern Time. Economists estimate sales grew 2.6% year-over-year,
according to a FactSet survey.
Check out:Why there is a 'massive' opportunity in British
leisure stocks
(http://www.marketwatch.com/story/why-there-is-a-massive-opportunity-in-british-leisure-stocks-2017-07-19)
Investors will also tune into what the European Central Bank may
say about monetary policy when it releases its statement at 12:45
p.m. London time, or 7:45 a.m. Eastern Time. ECB President Mario
Draghi will speak to the press at 1:30 p.m. London time.
"While we're not expecting any changes from the ECB today, its
EUR60 billion-a-month asset program expires at the end of the year,
and traders are looking for clues regarding what comes next," said
Craig Erlam, Oanda's senior market analyst, in a note.
"An announcement on this is unlikely until September when it
releases its new macro-economic projections but Mario Draghi may
offer some insight into what we can expect during the press
conference," he said.
Investors have used proceeds from sales in bonds to the ECB to
buy other assets, including U.K. equities.
Read:Why Mario Draghi can't back down from ECB taper hints
(http://www.marketwatch.com/story/why-mario-draghi-cant-back-down-from-ecb-taper-hints-2017-07-19)
(END) Dow Jones Newswires
July 20, 2017 04:07 ET (08:07 GMT)
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