LONDON MARKET EARLY CALL: Higher call ahead of BP and Ocado results

(Alliance News) - Stock prices in London are seen opening higher on Tuesday as earnings season in ...

Alliance News 8 February, 2022 | 6:58AM
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(Alliance News) - Stock prices in London are seen opening higher on Tuesday as earnings season in the UK gets well under way, while investors also await US consumer price index data due on Thursday.

IG futures indicate the FTSE 100 index is to open 26.93 points higher at 7,600.40. The index closed up 57.07 points, or 0.8%, at 7,573.47 Monday.

"Having digested what was an unexpectedly good January payrolls report last week, market attention is now firmly fixed on this week's US CPI numbers for January for evidence of whether the upswing in prices we've seen in the last three months of 2021 is set to show any signs of easing," said CMC Markets analyst Michael Hewson.

In Asia on Tuesday, the Japanese Nikkei 225 index closed up 0.1%. In China, the Shanghai Composite was up 0.4%, while the Hang Seng index in Hong Kong was down 1.1%.

In the US on Monday, the Dow Jones Industrial Average ended flat, S&P 500 down 0.4% and Nasdaq Composite down 0.6%.

The UK retail sector had a strong start to 2022, with a combination of inflation, easier comparatives and a slight return to some pre-virus trends lifting sales in January.

According to the latest British Retail Consortium-KPMG tracker, retail sales jumped 12% yearly in January. They had fallen 1.3% annually last January, a month when the UK was under lockdown.

Compared to pre-pandemic times, UK retail sales were 7.5% higher. January 2022's annual growth tops the six-month average of 6.0%.

Meanwhile, Russian President Vladimir Putin said he was ready for compromise and would look at proposals put forward by French leader Emmanuel Macron in talks on Monday, while still blaming the West for raising tensions over Ukraine.

Emerging from nearly five hours of talks in the Kremlin, the two leaders voiced hope that a solution could be found to the worst crisis between Russia and the West since the end of the Cold War.

Repeatedly thanking Macron for coming to Moscow, Putin said at a joint press conference that the French leader had presented several ideas worth studying.

"A number of his ideas, proposals...are possible as a basis for further steps," Putin said, adding: "We will do everything to find compromises that suit everyone."

The pound was quoted at USD1.3527 early Tuesday, down slightly from USD1.3534 at the London equities close Monday.

The euro was priced at USD1.1422, down from USD1.1438. Against the Japanese yen, the dollar was trading at JPY115.48, higher than JPY115.05 late Monday in London.

Brent oil was quoted at USD92.68 a barrel on Tuesday morning, down from USD92.98 at late Monday. Gold stood at USD1,820.85 an ounce, higher against USD1,816.81.

Tuesday's UK corporate calendar has annual results from oil major BP and online grocer Ocado. Energy company SSE, Irish support services firm DCC and housebuilder Bellway post trading statements.

Already out, Anglo-German holiday operator Tui said revenue rose in the three months to the end of December amid a relaxation of travel restrictions, but bookings for the current quarter were hurt by the emergence of the Omicron variant of Covid-19.

Tui said it currently has 6.0 million bookings across the Winter 2021-22 and Summer 2022 holiday seasons, with an acceleration in bookings since the start of 2022, as confidence in international travel improves.

In the UK in particular, the removal of testing requirements gave a boost to bookings, and Summer 2022 bookings currently are 19% ahead of Summer 2019, the Hannover, Germany-based company said.

By Arvind Bhunjun; arvindbhunjun@alliancenews.com

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