The FTSE 100 struggled for direction on Tuesday and was trading at 7160.05 points by midday, reversing earlier declines.
This was despite two pieces of news indicating a distinctly robust labour market. Figures from the ONS revealed that earnings growth had reached 8.8% in the quarter to June, while the unemployment rate declined to 4.7%.
CORPORATE NEWS
The day’s big mover on the Footsie was miner BHP (BHP), which confirmed it was in talks to spin off its oil assets in a deal that would see it merge them with those of Aussie giant Woodside Petroleum. BHP shares were trading 7% higher at midday.
The standout performer in the FTSE 250 index was Plus500 (PLUS), after forecasting annual revenue ‘significantly ahead’ of analyst estimates.
However the results revealed some worrying trends in customer acquisition costs, EBITDA and revenue. The company has undoubtedly benefited from the pandemic as bored individuals have engaged in financial speculation as an alternative to live sports betting. As the economy returns to normality, the transient benefit experienced by Plus 500 may dissipate. Shares were trading 7% higher at midday.
TUI AG (TUI), the world’s largest tour operator, was the biggest faller on the FTSE 250, giving up 4% in midday trading. This is despite recently announced results showing a surge in bookings as a result of pent up Covid demand.
OTHER MOVERS
On the FTSE 250, publisher Future (FUTR) gave up some of the ground gained a day after unveiling the £300 million takeover of rival Dennis. It shares were trading 1.5% lower at midday.
Food delivery platform Just Eat Takeaway (JET) added 2.3% to £63.07, despite reporting wider first-half losses pinned on investment spending.
Still, Just Eat Takeaway said its losses had reached a nadir and it stuck to its full-year guidance.
Telecom group BT (BT.A) fell 1.6% to 173.2p on announcing that it had appointed Adam Crozier to succeed Jan du Plessis as chairman from 1 November.
ELSEWHERE ON THE MARKET
Climate management solutions group Genuit (GEN) rose 5% to 681p after upgrading its annual outlook. It reported a 7.6% rise in first-profit profit thanks to a boost from acquisitions.
Genuit said it now expected full-year underlying operating profit be 'ahead of previous management expectations.’
Engineering and technology staffing company Gattaca (GATC:AIM) shed 5.3% to 234p despite it, too, lifting its forecasts amid a recovery in the recruitment market.
Gattaca said it expected continuing underlying pre-tax profit for the full year to be above £3 million, which compared to market consensus of £2.7 million.
Brake-disc manufacturer Surface Transforms (SCE:AIM) jumped 6% to 65p on news that it had been selected as a tier-one supplier to a 'major mainstream US automotive company' in a contract worth around £20 million.
