FTSE 100 Live: London blue-chips called higher, is Iran deal another false dawn? Proactive uses images sourced from Shutterstock 8am: Admiral profits falls as conditions get ‘more challenging’
Admiral Group has reported an 18% fall in first-half profit and cut its interim dividend by 39% as conditions in the UK motor insurance market became more challenging.
CEO Milena Mondini de Focatiis said: “Against more challenging market conditions, we are pricing for long-term sustainable growth with our UK motor business having increased rates earlier than the market, following a softer period in the cycle.”
She added that the recent acquisition of Flock, a provider of digital insurance for commercial vehicle fleets, has been completed and integration is “progressing well”.
7.43am: Persimmon keeps dividend flat
Persimmon held its dividend flat as it reported double-digit growth in first-half profits and completions but flagged signs of softer demand in the second half and additional inflationary pressure for next year.
The FTSE 100 housebuilder has posted interim results showing underlying operating profit rose 10% to £189.1 million, although the margin narrowed by 30 basis points to 12.8%.
Almost 5,190 home sales were completed in the six months to 30 June, up 13% from a year earlier, while the average selling price edged 1% higher to £285,752.
Persimmon’s recent trading suggested some cooling in the open market, with net private sales rate excluding bulk deals falling to 0.59 from 0.61 in the five weeks since June and weaker enquiries seen during July.
7.28am: FTSE 250 high
It should not have gone unmentioned, but the UK’s mid-cap index hit a record high yesterday.
The FTSE 250 climbed 155.75 points or 0.6% to close at 24,459.3, having gained over 400 points this week.
Unlike the FTSE 100, which has been notching new highs all over the place this year, the 250 was slowly ascending back to the previous high from 2021.
FTSE 100 Live: Stocks called higher, is Iran another false dawn?
London’s blue-chip shares index is set to open modestly higher on Thursday as investors focus on another busy day of corporate reporting and mull whether news of an Iran deal is another false dawn.
The FTSE 100 has been called 22 points higher on the futures market, after adding nine points to close at 10,888.3 yesterday.
Wall Street trading was mixed overnight as this week’s equity rally began to lose momentum. The Dow Jones rose 0.5% to another record closing high, but the S&P 500 slipped 0.2% and the Nasdaq fell 0.8%, ending a four-day winning streak.
Investors remain cautiously optimistic that negotiations with Iran could lead to the partial reopening of the Strait of Hormuz.
Tehran said it had agreed a proposed shipping route with Oman, although the arrangement would be temporary and would not represent a full reopening of the waterway.
Jim Reid at Deutsche Bank said markets had experienced “plenty of false dawns” during the conflict, with attention now shifting towards the details of any agreement.
President Donald Trump struck a more guarded tone, saying he would “see what happens” in the talks.
Brent crude is roughly flat at around $79.50 a barrel this morning, while European and UK natural gas prices have dropped more than 13% over the past week.
Asian markets are weaker this morning, amid renewed caution towards technology stocks. South Korea’s Kospi is down 4.6%, while Japan’s Nikkei has fallen 0.9% and Hong Kong’s Hang Seng lost 1.7%.
Today’s economic calendar includes the UK construction PMI, German factory orders, eurozone retail sales and US jobless claims.
The UK corporate diary includes Persimmon, WPP, Harbour Energy, Admiral, TP ICAP, Serco, Hikma Pharmaceuticals, Metlen Energy, Quilter and OSB Group, while ConocoPhillips (NYSE:COP, XETRA:YCP), Howmet Aerospace, Datadog and Constellation Energy lead the US pre-market slate, followed by Cloudflare, Petrobras (NYSE:PBR) and Monster Beverage after the close.
Overnight, AppLovin and SanDisk plunged almost 16% and 8% in afterhours trading after reporting earnings, while eBay climbed 2% after its numbers.