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London Stocks Seen Edging Higher With Fed in Focus

London Stocks Seen Opening Slightly Higher; Focus on Fed

0651 GMT - The FTSE 100 is expected to open 11 points higher, according to IG, having closed Tuesday at 7172.48. Trade is likely to be cautious ahead of a U.S. Federal Reserve decision after European markets close, with investors on balance anticipating that policy makers will view rising inflation as temporary and continue hefty stimulus. "The Fed is broadly expected to maintain its ultra-supportive policy unchanged at this month's meeting," says Ipek Ozkardeskaya, analyst at Swissquote. Any hint of plans to taper, or scale back, quantitative easing would damage risk sentiment and send equities lower. This "will probably not happen today" but it is a risk, she says. Oil prices continue to rally, which may lift oil stocks, although Ozkardeskaya notes that this is also a reminder of rising inflation. (jessica.fleetham@wsj.com)

 
Companies News: 

Best of the Best Declares Special Dividend for Buoyant FY 2021

Best of the Best PLC reported Wednesday a sharp rise in pretax profit and revenue for fiscal 2021 and said it is declaring a special dividend for the year.

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Tullow Oil Says Production to May Was in Line

Tullow Oil PLC said Wednesday that its production to the end of May was in line with expectations.

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Hipgnosis Songs Fund to Raise GBP150 Mln

Hipgnosis Songs Fund Ltd. said Wednesday that it intends to raise 150 million pounds ($211.3 million) by way of a share placing to fund the acquisition of a pipeline of songs.

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Electra Private Equity to Launch Hostmore PLC as Demerged Parent of TGI Fridays

Electra Private Equity PLC said on Wednesday that Hostmore PLC is to be the new parent company for its hospitality brands: American-themed restaurant chain TGI Fridays, and 63rd+1st, a cocktail-led bar and restaurant brand start-up.

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Helios Towers to Raise $160 Mln Through Equity Issue, Convertible Bonds

Helios Towers PLC said Wednesday that it will raise around $160 million, more than initially indicated, through an equity issue and convertible bond offering to fund acquisitions.

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FireAngel Safety Technology Sees 1H Performance in Line With Views

FireAngel Safety Technology Group PLC said Wednesday that it anticipates its performance for the first half to be in line with the board's expectations but challenges stemming from the pandemic are expected to continue through the current year.

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N. Brown Lawsuit Claimant Allianz Insurance Applies to Increase Scope of Claim

N. Brown Group PLC said Wednesday that Allianz Insurance PLC has applied to increase the scope of a claim against its subsidiary, estimated at an additional 36 million pounds ($50.7 million.)

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Christie Group Trading in Line with Expectations with Demand Across All Services

Christie Group PLC said Wednesday that the business has performed well in the year to date and is trading in line with market expectations, with all of its services and sectors in demand.

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Dillistone Group Expects Narrowed Loss in 2021; Finance Director to Retire

Dillistone Group PLC said Wednesday that it expects a significantly reduced pretax loss in 2021 compared with 2020 although revenue will be lower, and that Finance Director Julie Pomeroy will retire later this year.

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Motorpoint Pledges to Double Revenue Above GBP2 Bln in Medium-Term

Motorpoint Group PLC on Wednesday set targets to double its revenue in the medium term, and reported that its profit nearly halved in fiscal 2021.

 
Market Talk: 

Reopening Price Hikes Contribute to U.K. Inflation Surprise

0646 GMT - Price hikes by reopening services businesses were one of the key drivers of the further pick-up in U.K. headline inflation in May, Samuel Tombs, chief U.K. economist at Pantheon Macroeconomics, says. U.K. consumer prices increased to 2.1% year-on-year in May from 1.5% in April, beating expectations. Looking ahead, Pantheon expects U.K. inflation to peak at about 2.8% towards the end of 2021, before easing back to the 2% target by mid-2022 and then slightly undershooting the target in the following 12 months. The headline inflation rate shouldn't exceed the 3% rate, Tombs says, because the services components that will rebound have smaller-than-usual weights, due to their small share of households' spending in 2020. (maria.martinez@wsj.com)

 

Contact: London NewsPlus, Dow Jones Newswires; +44-20-7842-931

(END) Dow Jones Newswires

June 16, 2021 03:08 ET (07:08 GMT)

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