Leading shares are attempting to edge higher after the week’s ructions caused by China’s surprise devaluation of its currency.
With the central bank trying to stabilise the yuan - setting the rate a little higher this morning - a measure of calm has returned. But investors are still nervous as the Greek bailout talks continue - the proposals have just been passed in the Greek parliament but face scrutiny by the Eurogroup of finance ministers later - and ahead of eurozone GDP and University of Michigan confidence figures.
Among the fallers, engineering group Weir is down 13p at £14.73 after a downgrade from Liberum analysts. They said:
We see continued risk to earnings despite consensus 2015 earnings per share declining by 35% year to date. Minerals has the capacity to disappoint driven by slowing high-margin aftermarket revenues. Despite slashed expectations, oil and gas can still weigh given $43 [West Texas crude price].
Weir is working hard to cut costs and is leveraged into recovery. End markets are yet to stabilise though so this is about timing. We cut 2015 earnings per share by 16/10% and are 10% below consensus. A 2016 PE of 16 times.... looks expensive. Our target price is reduced to 1330p [from £14.50]. Sell.
Energy shares are lower as the oil price continues to come under pressure on fears of falling demand and oversupply, with Brent crude down another 0.22% at $49.11 a barrel. BP is down 3.15p at 380p despite very speculative talk that activist investors are circling the business with a view to breaking it up, with Chevron and Exxon mentioned in relation to any deals.
Royal Dutch Shell A shares are down 7p at 1814.5p while BG is 4.5p lower at 1075.5p.
Overall the FTSE 100 is up 18.42 points at 6586.75, with travel group Tui continuing to benefit from Thursday’s update and adding another 31p at £11.45.
