The FTSE has lost a little of the ground it made during early morning trading which had seen the benchmark index shoot up following the positive outcome from US-Mexico trade discussions and European markets closing on a high yesterday.
FTSE plateaus after early surge
The blue chip index, which was propelled upwards during early morning trading, has plateaued since around BST10.00, and is trading at a more modest 7602.31, up 24.83 (0.33%) as of BST11.40. Gains in consumer staples, miners and financials have all helped to buoy the FTSE’s performance following the Bank Holiday weekend.
The Asian market has also benefitted from the positive sentiment espoused in the hope that the US-Mexico deal holds positive future intent for a deal being reached between the US and China. The deal will see the replacement of the current NAFTA agreement which Trump has declared unfair on the US. As quoted by Proactive Investors, Senior Market Analyst at ThinkMarkets said: “What the market participants are excited about is that the US –Mexico deal will bring Canada back on the table and a similar deal can be done with another country.”
Bunzl boosted by six month interim report
Bunzl (LON:BNZL) shares are down by 0.7 percent to 2312.00 as of BST 12.31, dropping slightly from their earlier rise following a healthy six month interim report which showed a pre-tax profit of 5 per cent and the declaration of its acquisition of Norwegian firm Enor AS, as reported by Alliance News. For the half year ending on June 30, the distribution and services company’s revenue rose to GBP4.34 billion from GBP4.12 billion last year. Pretax profit rose 8 per cent to GBP197.3 million from GBP181.9 million last year. Bunzl raised its interim dividend 9% to 15.2 pence from 14.0p the year before.
Chief Executive Frank van Zanten reinforced Bunzl’s confident position, stating: "Looking forward to the rest of the year, the board is confident that the prospects for the group are positive and that the company will continue to develop the business and build shareholder value through a combination of organic growth and further acquisitions as the year progresses." (Alliance News).
Elsewhere in the market, Lloyds (LON:LLOY) has completed its billion pound buyback of ordinary shares following profit rises reported in early August and are appointing accounting giant Deloitte to take over their auditing from 2021, having found themselves with little option due to current competition regulations. Lloyds share price is currently standing at 60.73, down 0.11 (0.18%) as of BST12.34
Brexit comments impact on sterling
Theresa May’s comments about a no deal Brexit have seen the pound take a tumble this morning, trading weaker against the Euro as fears of the possibility of Britain leaving the EU without a deal resurface. According to Sky News, the PM has said that leaving without a deal, “wouldn’t be the end of the world.” This is in contrast to comments by Chancellor Phillip Hammond that a no-deal departure risked damaging public finances and could require extra domestic borrowing to the tune of GBP80 billion. The pound was down 0.05% against the Euro during early morning trading, standing at EU1.103 following the PM’s comments, but the FTSE’s performance does not seem to have been too disturbed by the news at this point.