Spreadex Market Update
FTSE falls under weight of commodity sector despite strong gains from Centrica and BAE Systems
Dipping into the red by around 20 points, the FTSE started the day suffering under the weight of its commodity sector. The miners seem to be falling back to the levels they rose from yesterday, arguably harmed by the fact that, whilst at its highest point since last September the Chinese inflation figures from the early hours of the day underperformed the 1.9% expected by analysts, coming in at 1.8%. Add onto that the slowing momentum of Brent Crude and the oil stocks joined in with the losses, leaving the FTSE will little wiggle room this Thursday.
It shows the weight of the commodity sector that a strong morning from two of the FTSE’s key stocks couldn’t make much of a difference this Thursday. Though Centrica’s better than expected 12% fall in yearly adjusted operating profit to £1.5 billion was joined by a 5% fall in revenue to £28 billion AND a cut dividend, British Gas’ 31% surge in profit to £574 million appeared to be enough for investors, the utility company rising by 3.5% to hit the £2 mark for the first time since the start of February. And whilst not as explosive as rival Rolls-Royce’s gains last Friday, BAE Systems will likely be pleased with its 2% rise this Thursday, that jump seeing the defence and aerospace firm re-cross the £5 mark after revealing a 2% increase in its final dividend and a £1.3 billion increase in sales to £17.9 billion, the latter aided by a Saudi Arabian aircraft splurge.
The Eurozone indices began the morning with a bit more vigour, the DAX and CAC each rising around 0.3%. With little else on the agenda the region-wide current account figures are likely to come under scrutiny later in the day, with analysts expecting a fall to €22.3 billion from last month’s €26.4 billion.
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