The FTSE 100 gets off to a positive start in early trade on Friday, bouncing back after three successive sessions in the red. At 9.30am the UK's benchmark index is up around 0.3% at 7,777.86, bolstered by well-received results from HSBC (HSBA) - the UK's second largest company by market cap - and support from mining majors.
Miners are led higher by Anglo American (AAL) and Antofagasta (ANTO), both rising approximately 1.3% to £19.63.2 and 884.8p respectively, after electric cars developer Tesla talked up its expectation of copper shortages in the near-term.
Both Anglo and Antofagasta are big copper producers.
More surprising is that banking giant HSBC heads the FTSE 100 leader board, rallying more than 2% to 681.8p, after beating first quarter expectations.
HSBC reported an impressive-looking 31% pre-tax profit jump to $4.91bn in the three months to 31 March. This apparent strength came from robust retail banking and wealth management operations, although the performance also relies heavily on its scope to slash costs.
But the headline figures disguise hefty adjustments, such as foreign exchange, legal costs and regulatory pressures. This is illustrated by the more mundane 9.5% improvement in the £6.35bn adjusted pre-tax profit figure.
TOUGH COMPARATIVES
Going the other way is hotels group Intercontinental Hotels (IHG). It sees its shares top the FTSE 100 loser board, down 1.6% at £49.18, despite showing a slight uptick in revenue per room growth.
The main problems for the group is weakness in its Middle East and South Korean markets, driven by political unrest, and tough comparatives in 2018. Those previous results had been bolstered by last year’s Winter Olympics.
Shopping centres operator Intu Properties (INTU) spooks investors with an unsurprising admission that the retail environment is facing huge pressure.
Shares in the £1.3bn FTSE 250 company slump more than 9% to 91.06p with Intu talking up a likely increase in retail insolvencies and a slowing new lettings, which it firmly blames ongoing Brexit uncertainty for.
PACKING A PUNCH
Packaging firm Smurfit Kappa (SKG) adds 0.9% to £23.39 after posting a 25% rise in earnings before interest, taxes, depreciation and amortisation (EBITDA), underpinned by higher prices and more demand for its products.
Shares in medical products specialist ConvaTec (CTEC) fall 3% to 132.5p despite trading in the first quarter being in line with management expectations.
But investors seem to be concerned about declining revenue and an overall weaker showing from its skincare business, as well as underperformance in the UK and US.
Subprime lender Provident Financial (PFG) sees its shares nudge close on 1% higher to 516.6p as it reassures on customer numbers growth in the first quarter of 2019.
Provident also hints that it is finally coming to the end of a painful period of regulatory pressure, although investors are more likely to be watching for news on its ongoing battle to remain independent.
The company has rebuffed a buyout offer by rival financial services business Non-Standard Finance (NSF), and shareholders may be hoping that NSF returns with a bigger, better offer down the line.
The operator of theme parks and attractions, such as Madame Tussauds, Merlin Entertainments (MERL) gives a brief but reassuring trading update saying trading in going in line with expectations.
It also appears to be on track with several new attractions opening, plus the sale of unwanted skiing resorts assets. The shares nudge 0.3% higher to 366.2p.
