LONDON MARKETS: FTSE 100 Risks Winning Streak As BHP Falls
August 21 2018 - 9:18AM
Dow Jones News
By Silvia Ascarelli, MarketWatch
BHP Billiton risks slashed forecasts from analysts
The U.K.'s main stock index put its three-day winning streak on
the line on Tuesday, held in check by losses for heavyweight miner
BHP Billiton.
How markets are performing
The FTSE 100 bobbed between positive and negative territory,
last trading at 7,589.70, after rising 0.4% in the prior session.
However, the British blue-chip gauge is showing a drop of 1.3% for
the year to date.
The pound was buying $1.2834, up from $1.2795 late Monday in New
York. The currency could be swayed by talks in Brussels between
Britain's Brexit minister, Dominic Raab, and the EU's chief
negotiator, Michel Barnier, to discuss the future relationship
between the U.K. and the euro area.
U.S. stock futures were firmer
(http://www.marketwatch.com/story/stock-futures-flat-as-sp-nasdaq-eye-records-investors-look-for-fed-clarity-2018-08-21),
pushing the S&P 500 closer to record levels once the trading
day begins. Investors are digesting a slew of earnings from retail
companies and are turning their focus to Wednesday's release of
minutes from the Federal Reserve's last meeting. On Friday, Fed
Chairman Jerome Powell will give a speech at the Fed's annual
summer retreat in Jackson Hole. The dollar was sagging
(http://www.marketwatch.com/story/dollars-losing-streak-stretches-to-five-after-trump-complaints-about-fed-2018-08-21),
a day after a report surfaced that President Donald Trump
criticized the Fed's monetary policy, expressing particular
disappointment in his appointee Powell.
Read:Here's how the Jackson Hole gathering may influence the
dollar, bonds and emerging markets
(http://www.marketwatch.com/story/heres-how-the-jackson-hole-gathering-may-influence-the-dollar-bonds-and-emerging-markets-2018-08-20)
European stocks were modestly firmer
(http://www.marketwatch.com/story/european-markets-flat-but-bhp-falls-after-results-2018-08-21).
Stocks in focus
BHP Billiton(BLT.LN) (BHP.AU) earnings came in short of
expectations, and the higher dividend couldn't compensate for that
(http://www.marketwatch.com/story/bhp-posts-higher-profit-and-dividend-2018-08-21).
The stock came off early lows to trade down 0.7%.
"Investors don't consider the dividend hike to be a permanent
fixture and there were several other points of concern, such as
rising costs at key copper, oil and coal units and the slashing of
productivity savings target in half," said Jasper Lawler, head of
research at London Capital Group, in a note.
As a result, analysts may downgrade forecasts for the 2019
fiscal year, he said.
Shares of Polymetal(POLY.LN), another miner, climbed 2% on the
heels of earnings
(http://www.marketwatch.com/story/polymetal-hikes-dividend-as-net-profit-rises-46-2018-08-21).
Persimmon(PSN.LN), the U.K.'s second-largest home builder,
reported a 13% rise in pretax profit for the first six months of
the year
(http://www.marketwatch.com/story/persimmon-profit-up-on-rising-sales-margins-2018-08-21),
outpacing a 5% rise is sales. Shares were up 0.4%.
Wm. Morrison(MRW.LN) led gains in supermarket stocks, rising
1.6%. Its market share over the 12 weeks to Aug. 12 was unchanged,
while other leading supermarkets lost market share to Aldi and
Lidl, and its sales grew the fastest among its three major
rivals.
Sage Group gained 1% a day after shares in the
enterprise-software maker tumbled 7%
(http://www.marketwatch.com/story/london-markets-higher-buoyed-by-materials-stocks-trade-optimism-2018-08-20).
(END) Dow Jones Newswires
August 21, 2018 09:03 ET (13:03 GMT)
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