Kingfisher and Rank weigh on FTSE
The FTSE has been open nearly 10 minutes now and is down around 15 points at 7417, after Kingfisher reported a worse-than-expected second quarter performance for its DIY chain B&Q.
Here’s Panmure Gordon’s veteran City analyst David Buik with a brief glimpse at the numbers.
David Buik
(@truemagic68)KINGFISHER like-for-like sales 2nd Q -1.9% – B&Q 2nd Q sales down 7.7%, – Like-for-like sales 4.7% – a little worse than expected
And there was nothing to shout “House” about either at Mecca Bingo owner Rank Group, where full year pre-tax profit is down 7% to £79.7m on revenues broadly flat at £707m.
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Michael Hewson, chief market analyst at CMC Markets, has been reading the runes regarding the ECB’s plans, with one eye on the meeting of central bank minds at next week’s Jackson Hole symposium.
We saw a another decent day for European markets yesterday helped in no small part by a report citing European Central Bank sources that ECB President Mario Draghi would not be making any references to monetary policy at next week’s Jackson Hole annual central bank symposium.
This helped push the euro towards its lowest levels this month against the US dollar, while helping support European stocks.
Speculation had been building that we might get an early steer on the ECB’s intentions with respect to the slow winding down of the banks €60bn a month stimulus program. The report went on to say that any discussion would have to wait until the autumn, which suggests that we may well have to wait until the October meeting, before the ECB looks at showing its hand, on the timing of any tapering program.
Stock markets have been on something of a winning streak of late but that looks like it might come to an end today.
It’s red ink across the board, according opening calls from the folks at IG.
IGSquawk
(@IGSquawk)Our European opening calls:$FTSE 7410 -0.30%
$DAX 12227 -0.30%
$CAC 5159 -0.34%$IBEX 10522 -0.22%$MIB 21899 -0.39%
Agenda: UK retail sales and US jobs data
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
July retail sales due for release at 9.30am will give us an inkling of how the UK consumer is faring given the ongoing squeeze on household incomes, which persists despite inflation coming in lower than expected earlier this week. Eurozone inflation data is out half an hour later at 10am.
Monetary policy on both sides of the Atlantic is also in focus, after minutes of the Federal Reserve came out last night indicating a divide over when to raise rates.
European Central Bank minutes are due for release at 12.30pm today, with analysts watching out for some sign of the Bank’s €60bn-a-month stimulus programme being unwound.
In the City, there are are financial performance figures from casino and bingo firm Rank and Kingfisher, the group behind DIY brand B&Q.
On today’s agenda:
• 9.30 BST: UK retail sales for July
• 10.00 BST: Eurozone inflation data
• 12.30 BST: European Central Bank minutes
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