The FTSE 100 lost ground in early afternoon trading on mixed equity news as investors turned their attention what is expected to be a firm opening in New York.
At 1.15pm, the benchmark index was 0.6% lower at 7,104.92.
Futures for the Dow Jones Industrial Average were ahead 0.2%, while the S&P 500 futures added 0.3% after closing at another all-time high. The tech-laden Nasdaq Composite was indicated to open 0.9% up.
Investors remain upbeat after Federal Reserve chairman Jerome Powell reiterated in a speech on Friday that the timing of the tapering of bond purchases, which is likely to begin later this year, will not have any bearing on subsequent decisions to raise interest rates.
MAJOR STOCKS ON THE MOVE
British Airways-owner International Consolidated Airlines (IAG), Ryanair (RYA), EasyJet (EZJ) and Wizz Air (WIZZ) all fell after European Union governments agreed on Monday to remove the USs from the EU’s safe travel list.
IAG was among the biggest FTSE 100 losers, down nearly 4% at 157.38p, while Wizz was the biggest FTSE 250 faller, down nearly 4% at £47.97.
Autotrader (AUTO), up 0.6% at 628.6p, was well bid early on although Melrose Industries (MRO) lost earlier ahead of results later this week.
Drugs developer GlaxoSmithKline (GSK) eased 1.2% to £14.56 after beginning Phase III trials of its adjuvanted Covid-19 vaccine candidate, which will see its compared to the Oxford/AstraZeneca (AZN) Covid-19 vaccine.
Distribution business Bunzl (BNZL) saw first half revenues nudge up 6.3% at constant exchange rates to £4.87 billion. Adjusted operating profit rose 14.7% to £366.8 million.
BOARD SHAKE-UP CALL
Aero-engineer Rolls-Royce (RR.) fell 2% to 114.36p after the company’s largest investor, Causeway Capital, called on incoming chair Anita Frew to ‘refresh’ the board. Causeway Capital also wants the company to consider the future of its power systems business.
Computer services company Computercenter (CCC) rallied 2.5% to £29.56, having lifted its annual guidance, citing robust trading across all its geographies in July and August.
Computercenter said that even if it delivered a flat second-half performance, it would end the year 10% ahead of current market expectations for adjusted pre-tax profit.
SMALL CAP WRAP
Among the small-caps, Futura Medical (FUM:AIM) stood out with a 7% advance to after the group inked licensing deal for its fast-acting erectile dysfunction gel covering Brazil and Mexico.
Training solutions group Pennant International (PEN:AIM) slumped 7.5% to 30.06p as it forecast a first-half loss after its performance was hampered by contract issues with General Dynamics.
Pennant said it expected a 'significant' improvement in the second half and forecast positive operating earnings for that period.
Internet platform company CentralNic (CNIC:AIM) jumped 5.2% to 101p, having forecast full-year profit and revenue at the upper end of market expectations.
CentralNic's first-half losses had narrowed, thanks to a combination of underlying organic growth and acquisitions.
