CFD Morning Report Tue 17 July 2012
FTSE 100 called higher at the outset
Market News and Views
The FTSE 100 is called to open higher this morning although the investor mood is likely to remain cautious ahead of speeches from both the Bank of England Governor and the US Federal Reserve Chairman. The Governor is set to be quizzed again on the ongoing libor scandal whilst investors will be looking for some direction from the Fed Chairman this afternoon as regards potential new stimulus measures to boost growth. In terms of economic data due out today, the focus will be on the latest inflation numbers domestically and from the US at lunchtime (see below). Commodity prices are firmer and on the foreign exchanges, sterling is higher against both the dollar and euro although within a narrow trading range.
Today's Company announcements
IG Group Preliminary Results saw adjusted PBT up 13.8% at GBP185.7m on net trading revenue ahead 17.3% at GBP366.8m. The total dividend is raised 12.5% to 22.5p a share, whilst noting its strong, debt free Balance Sheet with a 330% excess over regulatory capital resources requirement and the 'solid growth' in active clients and revenue per customer. It added that revenue in the first 6 weeks of the current year had been lower than the corresponding period and as it previously highlighted, comparatives are increasingly challenging with revenue this year forecast to be weighted towards the H2. However, it remained confident in the prospects for the business going forward.
Rio Tinto Q2 2012 Operations Review notes that the period was strong across most of its portfolio, with record H1 iron ore production, and copper, bauxite, alumina, coking coal and titanium dioxide production all higher than in Q2 2011. However, it cautioned that global economic conditions and sentiment had 'dropped markedly' in Q2 and it was keeping a close eye on the pace of the US recovery, the continuing euro zone crisis and the impact of efforts to stimulate the Chinese economy on the markets it serves. It now expects to produce 8.5m tonnes of hard coking coal and 19.5m tonnes of thermal coal this year, which is lower than it forecast in April of 9m and 20m tonnes respectively.
|LME copper 3MO $
||Bank of England Governor Speech
||Core CPI m/m
||Fed Chairman Bernanke Testimony
COUNTRY: United Kingdom
PUBLISHED: 17 Jul 12