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FTSE 100 Closed Up as It Shrugs off the Week's Negative Sentiment

The FTSE 100 closed up on Friday as it shrugged off some of the week's negative sentiment with banks and energy names compensating for weaker tech stocks. Positive results from the U.S. earnings season have bolstered confidence in other indices and sectors in the hope that the global economic rebound is still on track, Chris Beauchamp at IG says. "The FTSE 100 has shaken off much of the negativity of earlier in the week, and is putting its best foot forward in a bid to surpass recent highs. As with U.S. indices, raw materials and banks are behind the strength in the index," Beauchamp says.

 
Companies News: 

InterContinental Hotels 3Q Revenue Per Available Room 21% Below Pre-Pandemic Levels

InterContinental Hotels Group PLC said Friday that its revenue per available room increased 66% in the third quarter on year, but that it was 21% below 2019 levels.

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J Sainsbury Ends Talks to Sell Banking Arm

J Sainsbury PLC said Friday that it has ended talks to sell its banking arm as it believes the business will deliver better value for shareholders being kept within the group.

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London Stock Exchange 3Q Total Income Rose

London Stock Exchange Group PLC said Friday that its performance in the third quarter of 2021 was marked by income growth across all its divisions.

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JD Sports Acquires 80% Stake in Greek Retailer Cosmos Sport

JD Sports Fashion PLC said Friday that it has acquired 80% of Cosmos Sport SA, a Greek retailer.

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Hummingbird Resources Sees 2021 Production at Lower End of Guidance Range, Costs at Higher End

Hummingbird Resources PLC said Friday that its full-year production will be at the lower end of the guidance range, whereas costs will be at the upper end.

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Starcom PLC Raises GBP450,000 via Premium Share Subscription

Starcom PLC said Friday that it has raised 450,000 pounds ($620,730) via a premium share subscription and will use the money towards its new business pipeline as well as for potential new contracts.

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SIG Sees FY Underlying Operating Profit Ahead of Views on 3Q Sales Growth

SIG PLC said Friday that its full-year underlying operating profit is now expected to be ahead of market views, as the strong performance it benefited from in July and August continued through September.

 
Market Talk: 

UK Gilts Unmoved by Above-Forecast PMI Data

0912 GMT - U.K. government-bond investors shrug off above-forecast preliminary U.K. purchasing managers' index data for October on Friday. Borrowing costs remain steady at elevated levels, after data showed activity in services and manufacturing sectors expanded further in October. The IHS Markit/CIPS composite purchasing managers' index rose to a three-month high of 56.8 in October, comfortably exceeding the expectations of 54.0 in a WSJ poll of economists. The 10-year gilt yield trades last at 1.204%, having closed at 1.210% Thursday, its highest level since early May 2019. (lorena.ruibal@wsj.com)

UK Borrowing in Debt Markets Likely to Fall

0858 GMT - U.K. borrowing from debt market investors in the current 2021-22 fiscal year is likely to fall below previous official projections, as the government prepares to scale back pandemic-era fiscal stimulus, says Deutsche Bank's Sanjay Raja. "We expect 2021/22 borrowing to be revised down by around GBP60 billion, taking the deficit down to GBP174bn," he says. As a result, he expects the gilt remit to be revised down to GBP212.5 billion from GBP254.4 billion forecast by the Debt Management Office. Treasury chief Rishi Sunak is expected to present the government's spending plans to members of parliament in the House of Commons on Oct. 26. (lorena.ruibal@wsj.com)

UK Economic Growth Regains Traction Despite Supply-Chain Bottlenecks

0849 GMT - The latest purchasing managers survey on U.K.'s private sector points to an accelerated increase in business activity. IHS Markit's flash composite PMI came in at 56.8 in October, up from 54.9 in September and a three-month high. Survey respondents reported buoyant business and consumer spending due to the roll back of pandemic restrictions, the report said. Service providers led the recovery, but manufacturers signaled another slowdown in production growth due to severe shortages of staff and materials. "The U.K. economy picked up speed again in October, but the expansion is looking increasingly dependent on the service sector, which in turn looks prone to a slowdown amid the recent rise in Covid-19 cases," IHS Markit's chief business economist Chris Williamson said. (xavier.fontdegloria@wsj.com)

IHG Drops After 3Q Revenue Falls Short of 2019 Levels

0844 GMT - InterContinental Hotels Group falls 2.3% after the hotelier reported third-quarter revenue per available room 21% below 2019 levels. Citigroup says the trading update was fairly soft and investors are likely to give it a tempered reaction. IHG has reported improvements in revenue per available room for 3Q, in line with Citi forecasts but underperforming industry data, the investment bank says. "Temporary cost savings may boost FY21 consensus, but we expect little change in FY22 and beyond," Citi says. (philip.waller@wsj.com)

 

Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswires; paul.larkins@wsj.com

(END) Dow Jones Newswires

October 22, 2021 12:41 ET (16:41 GMT)

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