London open: Stocks rise as investors eye US earnings season

Mon 13 Jul 2020

LONDON (SHARECAST) - (Sharecast News) - London stocks rose in early trade on Monday, taking their cue from gains in Asia, with investors cautiously optimistic about the US earnings season despite ongoing concerns about the coronavirus pandemic.
At 0840 BST, the FTSE 100 was up 1% at 6,157.41.

The US earnings season gets underway this week with the likes of JPMorgan, Wells Fargo and Citigroup among those slated to report.

Oanda analyst Jeffrey Halley said: "I expect that trading revenues will outperform once again as market volatility continues. More attention is likely to be given, however, to the big banks' forward guidance on the global economy, and the level of bad debt provisioning.

"Depending on whom you talk to, S&P 500 earnings are forecast to broadly fall by 30% to 40% year-on-year, although within that, there will be apparent winners and losers."

The positive tone in markets came despite a rise in new coronavirus infections in the US and elsewhere.

"The pandemic will continue to dominate the headlines," said CMC Markets analyst David Madden. "On Sunday, the WHO said that another record was set for the number of daily cases. For the fourth day in a row, the US registered over 60,000 new cases. Countries like India and Mexico are seeing a rise in the number of new cases too."

In equity markets, travel stocks paced the gains, with British Airways parent IAG, InterContinental Hotels, Premier Inn owner Whitbread, budget airline easyJet and cruise operator Carnival all in the black.

Elsewhere, gold miner Centamin gained after it reported higher second-quarter production and said it was on track to meet full-year guidance as it said the pandemic had not materially affected operations.

Security services firm G4S was the top performer on the FTSE 250 after it said first-half profit would be significantly ahead of market consensus and that it would bring forward its results announcement to the week beginning 20 July.

Market Movers

FTSE 100 (UKX) 6,157.41 1.02%
FTSE 250 (MCX) 17,370.99 1.11%
techMARK (TASX) 3,676.26 0.65%

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 217.90p 2.93%
InterContinental Hotels Group (IHG) 3,883.00p 2.89%
Whitbread (WTB) 2,327.00p 2.60%
Anglo American (AAL) 1,973.20p 2.50%
Royal Bank of Scotland Group (RBS) 124.45p 2.43%
M&G (MNG) 177.70p 2.39%
Ashtead Group (AHT) 2,626.00p 2.38%
Legal & General Group (LGEN) 225.60p 2.36%
Glencore (GLEN) 179.42p 2.30%
Burberry Group (BRBY) 1,585.50p 2.29%

FTSE 100 - Fallers

Ocado Group (OCDO) 1,984.00p -0.90%
GVC Holdings (GVC) 858.20p -0.58%
AstraZeneca (AZN) 8,458.00p -0.55%
Hikma Pharmaceuticals (HIK) 2,095.00p -0.48%
Homeserve (HSV) 1,300.00p -0.46%
Spirax-Sarco Engineering (SPX) 10,010.00p -0.30%
GlaxoSmithKline (GSK) 1,573.60p -0.09%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,406.00p 0.02%
Relx plc (REL) 1,810.50p 0.03%
Pennon Group (PNN) 1,081.50p 0.05%

FTSE 250 - Risers

G4S (GFS) 129.15p 8.12%
PureTech Health (PRTC) 292.00p 5.04%
Carnival (CCL) 1,028.00p 4.26%
Watches of Switzerland Group (WOSG) 299.50p 3.99%
easyJet (EZJ) 689.80p 3.89%
Hammerson (HMSO) 76.12p 3.54%
Ferrexpo (FXPO) 184.60p 3.42%
Kaz Minerals (KAZ) 539.40p 3.33%
Cineworld Group (CINE) 56.00p 3.24%
Grafton Group Units (GFTU) 701.50p 3.24%

FTSE 250 - Fallers

Calisen (CLSN) 178.40p -2.09%
Shaftesbury (SHB) 502.50p -1.76%
Oxford Biomedica (OXB) 738.00p -1.73%
Vietnam Enterprise Investments (DI) (VEIL) 432.50p -1.48%
CLS Holdings (CLI) 202.00p -1.46%
BMO Global Smaller Companies (BGSC) 114.60p -1.21%
Pantheon International (PIN) 2,130.00p -0.93%
BMO Commercial Property Trust Limited (BCPT) 59.00p -0.84%
Network International Holdings (NETW) 452.20p -0.53%
Computacenter (CCC) 1,622.00p -0.43%
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