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London open: Stocks edge tentatively higher ahead of retail sales
London stocks opened tentatively higher on Thursday morning as investors eyed the release of the latest retail sales figures and sifted through a deluge of corporate news.
The FTSE 100 crawled 0.1% higher to 7,795.36, resuming the positive momentum that lifted the index to all-time highs at the start of the week after a day's pause.
Sterling was providing none of its recent assistance to the predominantly overseas-focused group of blue chips, rallying 0.2% to 1.3371 against the dollar after hitting a near-five-month low a day earlier, following the release of Fed meeting minutes overnight.
Also potentially helping to put a floor under the pound were reports that Theresa May will ask the European Union for a second Brexit transition period to run until 2023 to avoid a hard border in Ireland. The Times newspaper said the Prime Minister will propose another transition covering customs and trade that will follow the period already agreed, scheduled to last until the end of 2020.
Lee Wild, head of equity strategy at Interactive Investor, said: "A mid-week session took a little froth off overheated markets, but such is the appetite for equites currently that the blood-letting has been brief. The possibility of a hugely damaging trade war is still very real, but at least the odds of things getting out of hand are longer now than they were, which is positive.
"Minutes from the Federal Reserve's latest meeting published last night also appear to reduce the risk of a policy mistake in the US. Inflation is no reason for sleepless nights and there seems little chance that rate-setters will hike more than three times this year."
The big focus on Thursday will be the retail sales data for April due at 0930 BST., with yearly figures expected to show a drop but monthly data forecast to show a jump in sales.
In corporate news, Intertek was the standout gainer after the testing company posted 4.4% growth in revenue for the first four months of the year and said it was on track to deliver its 2018 targets.
Paddy Power Betfair was also a high riser after confirming late on Wednesday that it has agreed to merge its US business with US fantasy sports betting site Fan Duel.
Electrocomponents was in the black after it reported a 35% jump in full-year adjusted pre-tax profit.
TalkTalk was on the up after announcing the sale of its B2B business for £175m, while Tate & Lyle gained after saying its full-year profits rose by nearly a quarter, although sales slipped.
Budget airline Wizz flew higher after it said annual profit rose 22% and passenger numbers grew 25%.
On the downside, Mediclinic was the worst performer as sizeable Swiss write-downs led to paper losses but a 3% increase in full-year core earnings, while United Utilities was also on the back foot after its full-year numbers.
B&Q and Screwfix owner Kingfisher retreated as it said sales were hammered by bad weather in February and March, with like-for-like sales down 4% but management still confident about the underlying turnaround of the business.
In broker note action, Bakkavor was cut to 'hold' at HSBC, while AB Foods and Bunzl were both downgraded to 'neutral' at Goldman Sachs.
Drinks maker Britvic was lifted to 'buy' at Societe Generale a day after well-received results.
Elsewhere, ex-dividends took 3.25 points off the FTSE 100 and 15.5 points off the 250. Bellway, Bunzl, Carnival, Countryside Properties, Diploma, Euromoney, Brewin Dolphin, Marston's, Soco, Tritax Big Box, Whitbread and Morrisons were among them.
Market Movers
FTSE 100 (UKX) 7,795.36 0.09%
FTSE 250 (MCX) 21,068.22 0.30%
techMARK (TASX) 3,542.50 0.23%
FTSE 100 - Risers
Intertek Group (ITRK) 5,338.00p 3.17%
St James's Place (STJ) 1,227.00p 2.25%
Evraz (EVR) 489.30p 1.94%
Paddy Power Betfair (PPB) 8,795.00p 1.91%
Rio Tinto (RIO) 4,342.00p 1.57%
Smurfit Kappa Group (SKG) 3,066.00p 1.39%
Antofagasta (ANTO) 1,081.00p 1.26%
Burberry Group (BRBY) 2,025.00p 1.10%
British American Tobacco (BATS) 3,804.00p 1.06%
Anglo American (AAL) 1,847.00p 0.94%
FTSE 100 - Fallers
Mediclinic International (MDC) 654.60p -3.68%
Morrison (Wm) Supermarkets (MRW) 246.50p -3.11%
United Utilities Group (UU.) 778.20p -3.09%
Kingfisher (KGF) 287.50p -2.67%
Marks & Spencer Group (MKS) 299.60p -2.38%
Bunzl (BNZL) 2,267.00p -2.20%
Severn Trent (SVT) 2,042.00p -1.73%
Associated British Foods (ABF) 2,703.00p -1.71%
Imperial Brands (IMB) 2,779.00p -1.35%
Whitbread (WTB) 4,150.00p -1.17%
FTSE 250 - Risers
Electrocomponents (ECM) 687.60p 9.42%
TalkTalk Telecom Group (TALK) 131.70p 8.66%
Tate & Lyle (TATE) 642.40p 5.48%
Renewi (RWI) 75.40p 5.31%
Wizz Air Holdings (WIZZ) 3,293.00p 4.74%
Senior (SNR) 324.20p 4.65%
QinetiQ Group (QQ.) 253.80p 3.55%
Homeserve (HSV) 914.00p 3.39%
Ultra Electronics Holdings (ULE) 1,641.00p 3.21%
Vedanta Resources (VED) 767.00p 2.70%
FTSE 250 - Fallers
Ibstock (IBST) 272.20p -6.97%
McCarthy & Stone (MCS) 128.56p -2.16%
Marston's (MARS) 98.45p -2.04%
Bellway (BWY) 3,307.00p -1.96%
BTG (BTG) 605.50p -1.86%
Paragon Banking Group (PAG) 543.00p -1.72%
Spire Healthcare Group (SPI) 251.40p -1.49%
Card Factory (CARD) 225.40p -1.49%
Hastings Group Holdings (HSTG) 266.00p -1.41%
Hill & Smith Holdings (HILS) 1,403.00p -1.41%