FTSE 100 Falls as Rate Rise Jitters Weigh
0753 GMT - The FTSE 100 falls 0.6% to 6949 points as expectations the Federal Reserve will press ahead with aggressive interest rate rises dampens risk appetite. Mining shares are among the biggest fallers as precious metal prices fall. Expectations the Fed will deliver another 75 basis points rate rise on November 2 is "all but nailed on" after Friday's strong U.S. nonfarm payrolls report, Interactive Investor analyst Richard Hunter writes. With higher rates eroding projected company valuations, "further tests of investors' mettle" follow later this week, particularly U.S. inflation data on Thursday and U.S. retail sales figures on Friday, he says. Meanwhile, the "next step for the Bank of England in its own aggressive hiking policy will remain in mind," he says. (renae.dyer@wsj.com)
Companies News:
DS Smith Sees FY 2023 Performance Ahead of Views
DS Smith PLC said Monday that it expects its fiscal 2023 performance to be ahead of previous expectations, and that adjusted profit is expected to have increased in the first half amid robust revenue growth and cost mitigation.
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National Grid Sees FY 2023 Underlying EPS More Weighted Toward 2H
National Grid PLC said Monday that it expects underlying earnings per share for fiscal 2023 to have a more marginal weighting toward the second half than in previous years.
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Hollywood Bowl FY 2022 Revenue, Ebitda Beat Prepandemic Levels
Hollywood Bowl Group PLC said Monday that both fiscal 2022 revenue and Ebitda rose compared with prepandemic levels due to strong customer leisure demand.
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Sirius Real Estate 1H Rent Roll Rose, Meeting Full-year Views
Sirius Real Estate Ltd. said Monday that its like-for-like annualized rent roll rose 2.4% in the first half of fiscal 2023, and that its performance was in line with its expectations for the full year.
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Ashtead Technology Sees 2022 Performance Ahead of Market Views
Ashtead Technology Holdings PLC said Monday that it expects revenue and profit to be materially above current market expectations for 2022, driven by a robust underlying performance.
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Quilter Appoints New CEO
Quilter PLC said Monday that it has appointed Steven Levin as chief executive from Nov. 1 after Paul Feeney decided to step down from the role.
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Beeks Financial Cloud FY 2022 Pretax Profit Fell on Higher Costs
Beeks Financial Cloud Group PLC said Monday that pretax profit for fiscal 2022 fell on higher costs, but that its sales pipeline and expanded product offer gives the board confidence in the company's prospects.
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Intercede Buys Authlogics for Up to GBP5.5 Mln; 1H Revenue Was in Line With Views
Intercede Group PLC said Monday that it has acquired softwared security company Authlogics Ltd. for up to 5.5 million pounds ($6.1 million), and that revenue for the first half of fiscal 2023 was in line with board's expectations.
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LXI REIT 1H Portfolio Value Slipped But Rent Rose
LXI REIT PLC said Monday that its portfolio valuation slipped slightly in the first half of fiscal 2023, but was offset by a growth in rent.
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LendInvest 1H Assets, Funds Under Management Rose
LendInvest PLC said Monday that platform assets under management rose 33% on year in the first half of fiscal 2023, while funds under management rose 20%.
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Quartix Technologies Sees 2022 Revenue, Adjusted Ebitda in Line With Market Views
Quartix Technologies PLC said that it expects 2022 revenue and adjusted Ebitda to be in line with market expectations, and that new-unit subscriptions for the nine months rose.
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Equinor's Head of International Exploration and Production Resigns
Equinor ASA said Monday that Al Cook, executive vice president for exploration and production international, intends to resign.
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Unite Group Sold 99% of Beds for 2022-23; Raises Guidance
Unite Group PLC said that it has sold 99% of beds for the 2022-23 academic year, up from 94.1% the year before, and raised its rental growth guidance for 2023-24.
Market Talk:
Earnings Downgrades May Intensify Across Major Markets
0742 GMT - Earnings downgrades may intensify across major markets in the U.S., Europe and Asia ex-Japan as more companies report 3Q results this month, Bank of Singapore's head of investment strategy Eli Lee says in a note. "This stems from the ongoing energy crisis, rising cost of capital, margin pressures, and challenging consumption prospects," Lee says. Companies' earnings are set to decline amid slowing growth and rising recession risks, but this hasn't fully played out yet, he adds. Forward price-to-earnings multiples could also decrease further even though they are inexpensive against historical levels, as liquidity is withdrawn from the system and major central banks "race to raise rates," according to Lee. (clarence.leong@wsj.com)
Risk-Off Mood Could Provide Some Support to Bonds, But Market Is Vulnerable
0654 GMT - Government bonds could get support from risk-off sentiment, but markets remain vulnerable as central bank comments--expressing determination in its fight against inflation--look set to continue, Commerzbank's rates strategist Rainer Guntermann writes in a note. Relief is unlikely to come from U.S. CPI data due this week, he adds. "A marginally softer headline figure should be cold comfort at levels above 8% and core inflation possibly rising to a new record high," he says. Eurozone 10-year government bond yield mostly ease, with the 10-year Bund yield down 0.3 basis points at 2.195%, according to Tradeweb. The 10-year Italian BTP yield is rising, however, trading almost 5bps higher at 4.748%, according to Tradeweb. (emese.bartha@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
10-10-22 0458ET
