A rise in mining shares and a positive note on Dixons Carphone is not enough to enthuse investors, with leading shares edging lower in early trading.
The FTSE 100 has fallen 26.01 points to 6784.59 ahead of US GDP datal, with worries about the eurozone still unsettling investors, and despite an overnight rally on Wall Street. Mike McCudden at Interactive Investor said:
As we see out another volatile week for equities, strong economic and corporate data from the US is likely to lift the mood of battle weary investors. However, as we look towards US GDP data later today, investors will be mindful the more good news will signal a rate hike sooner rather than later. Furthermore, with the Asian markets thoroughly unconvincing and the euro zone waking up to a Greek headache as the QE euphoria wears off, investors may be well advised to keep their powder dry and await the next fall.
With gold and silver moving higher, Mexican precious metals miner Fresnillo has risen 26.5p to 889p while Randgold Resources has risen 115p to £55.35.
Dixons Carphone has climbed 9p to 433.2p after Exane BNP Paribas raised its price target by 2% to 520p with an outperform rating.
But BT is down 9.6p at 419.5p as it agreed to pay £2bn into its pension scheme over three years to help reduce the £7bn deficity. It also plans to upgrade its fibre network, as it finalises plans to buy mobile operator EE for £12.5bn and prepares to splash the cash on the next round of bidding for key football rights. The company revealed a 3% dip in third quarter revenue and a 12% rise in profits to £694m.
Royal Dutch Shell A shares have slipped another 23p to £20.37 in the wake of Thursday’s results which included news it was cutting investment by $15bn because of the weak oil price. Oil is on track for a seventh monthly fall on fears of oversupply and lack of demand due to the struggling global economy.
British Airways International Airlines Group has lost earlier gains after news that Qatar Airways had bought a 9.99% in the airline, and is now down 8p at 556p. Liberum said:
This stake appears to have been acquired in the market, and it is certainly not the result of new shares being issued. With this recent buying pressure removed, the share price may weaken.
Inevitably, there will be speculation above a full takeover. We consider this highly unlikely, due to the ownership restrictions on non-EU shareholders which are required to ensure that IAG’s airlines retain their traffic rights.
Utilities were under pressure, with Severn Trent down 40p at £21.59, as were supermarkets, with Morrisons continuing to fall, down 2.5p at 182.4p. Earlier in the week Bernstein questioned the outlook for the business.
