The FTSE 100 made a slow start to the final trading day of the week ahead of the long Bank Holiday weekend with investors keeping their powder dry ahead of Federal Reserve chair Jerome Powell’s comments at the Jackson Hole symposium for central bankers.
Economic watchers largely expect the address to the remote conference will be unremarkable, but the market awaits in anticipation regardless.
At 9am, the benchmark FTSE 100 had scraped 0.1% higher, or about 10 points, to 7,134.27.
In currency markets, the pound strengthened versus the dollar and euro, with GBP/USD trading at $1.3716, while the GBP/EUR at €1.1662.
Overnight, Peloton shares tumbled in after-hours trade after it reported a wider-than-expected fourth-quarter loss and issued disappointing guidance. The exercise kit firm, a massive lockdown winner, reported loss per share of $1.05 versus $0.45 expected as revenue growth hit the brakes in the fourth quarter, partly due to the recall of treadmills.
But the company also slashed the cost of its bike product by 20%, implying that cheaper competition is starting to bite. The stock is now down 21% in 2021.
MOVING ON THE EQUITY MARKETS
In the UK, energy shares, industrial miners and travel stocks have been top performers this week. Travel stocks were on course to end their best week since March on higher demand amid easing lockdowns.
Among stocks, on a typically quiet Friday UK subprime lender Amigo (AMGO) jumped initially, before easing back to 2% gains at 8p, after it posted a steep rise in first-quarter profit, although it reiterated there was ‘material uncertainty’ about its ability to continue as a going concern.
Food delivery company Just Eat Takeaway (JET) slumped 4% to £66.76, the biggest FTSE 100 loser, after the New York City Council approved legislation to permanently cap commissions delivery apps can charge restaurants.
Tesco (TSCO) topped the FTSE leaderboard, up 1.7% at 257.27p.
The mid-cap FTSE 250 largely matched the blue-chip index’s muted start, nudging 34 points ahead (0.1%) to 23,986.28.
Oil service firm Wood Group (WG.) was the big mid-cap winner, up 4.5% to 262.5p.
Primary Health Properties (PHP), the UK-based investor in modern primary healthcare facilities, has announced it has acquired the Townside Primary Care Centre and adjacent office building in Bury, Lancashire, for £40 million.
The shares added 0.2% to 166.4p.
SMALL CAP WRAP
Shanta Gold (SHG:AIM), the East Africa-focused gold producer, stayed flat at 13p after reporting revenues down at $57 million for the six months to 30 June 2021, compared to $73 million for the same period the year before.
Printed circuit board supplier Holders Technology (HDT:AIM) swung to a profit in the first half of its fiscal year as higher revenue and improved margins bolstered performance, sparking a 7% share price jump to 81.5p.
Aviation services group Air Partner (AIR) soared 8% to 91.6p despite forecasting lower first-half profit, though said it continued to see a strong recovery in its private jets division.
