London pre-open: Stocks seen down amid earnings barrage

8th Aug 2024 07:34

(Sharecast News) - London stocks were set to fall at the open on Thursday following strong gains in the previous session, as investors braced for another barrage of corporate news.

The FTSE 100 was called to open around 50 points lower, having closed up 1.8% on Wednesday.

Stephen Innes, managing partner at SPI Management, said: "Though 'Turnaround Tuesday' offered a brief calm interlude, it's prudent to remain vigilant. The market may long for a peaceful passage, but we're gearing up for what looks to be more akin to a rollercoaster expedition.

"As I cautioned my traders today, thankfully, this week features a light US economic calendar, a small mercy given that a barrage of bleak economic data is the last thing needed in such a tense atmosphere.

"Prepare for a potentially 'Turbulent Thursday' and brace for what might become a 'Frantic Friday'."

In corporate news, events organiser Ascential said it had signed a deal to buy the commercial assets of advertising awards owner Effie for an undisclosed sum.

Effie will join Ascential's LIONS Division, which runs the Cannes Lions event - known as the Oscars of the ad business.

Housebuilder Persimmon reported a decline in first-half pre-tax profit but said it was on track to deliver full-year completions at the top end of guidance.

In the six months to the end of June, reported pre-tax profit fell to £146.3m from £151m in the same period a year earlier. Total group revenue rose to £1.3bn from £1.2bn and completions came in at 4,445, up 5%.

Persimmon said it was on course for around 10,500 completions for the full year, at the top end of previous guidance.

Beazley reported a record profit of $728.9m for the first half, nearly doubling from $366.4m in the same period last year.

The FTSE 100 insurer said it saw an increase in insurance written premiums to $3.12bn and achieved a discounted combined ratio of 77%, down from 84% in 2023.

It also confirmed that its $325m share buyback programme was on track for completion by the end of the year, with a full-year premium growth forecast in the high single digits.