Oil price edges higher, BetMGM boost for Entain.
Peel Hunt eyes progress after wider full-year loss
09:02 , Graeme Evans
Investment bank Peel Hunt today reported a wider annual loss but said the new financial year has started more positively.
It said: “We are seeing a rotation out of US assets into Europe and greater institutional positivity towards the UK.
“Equity capital markets activity in the UK remains generally subdued but could gain traction should macroeconomic conditions continue to stabilise.
“Meanwhile our M&A franchise remains highly active with a strong pipeline of transactions.”
Revenue for the year to 31 March rose 6% year-on-year to £91.3 million, despite ongoing low levels of equity capital markets activity and the challenging market conditions of February and March.
The loss of £3.5 million widened from £3.3 million, mainly due to one-off restructuring costs. On an adjusted basis, the group posted a profit of £800,000.
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China-focused stocks support FTSE 100, oil giants higher
08:23 , Graeme Evans
The FTSE 100 index is 20.52 points higher at 8871.15, with China’s 15-month high for retail sales growth among the factors supporting sentiment.
Asia-focused Standard Chartered rose 3% or 34.5p to 1180p and Prudential cheered 2% or 17.6p to 905.2p after China’s retail sales lifted 6.4% year-on-year.
BP gained 5.45p to 391.8p and Shell added 39p to 2670p after the price of Brent Crude rose by another 0.9% to $74.90 a barrel.
Entain shares improved 6% or 42.6p to 794p as the Ladbrokes owner published upgraded guidance for its North American business BetMGM.
Among the fallers, GSK weakened 19.5p to 1492p and consumer goods group Haleon dropped 6.2p to 389.9p.
Bank policymakers continue wait-and-see approach
08:00 , Graeme Evans
The Federal Reserve and Bank of England are expected to keep interest rates on hold later this week.
The US central bank, which is under pressure from President Trump to cut borrowing costs, is also due to publish its summary of economic projections.
These are likely to show weaker growth and higher inflation, with the median dot plot pointing to one interest rate cut this year.
Ahead of Wednesday’s announcement, Deutsche Bank said: “Federal Reserve chair Jerome Powell's press conference is likely to emphasise uncertainty and a wait and see approach.
“The recent spike in oil will just add to all of this even if recent inflation data has been better than expected.
“Future price increases from tariffs loom in the background even if their initial impact has taken a bit longer to show up than expected.”
The Bank of England announces its latest decision a day later on Thursday, with economists expecting no change in the base rate at 4.25%.
Entain lifts BetMGM guidance
07:29 , Graeme Evans
FTSE 100-listed Ladbrokes owner Entain today upgraded guidance for its North American joint venture BetMGM.
It said trading in the current quarter has been similar to the 34% year-on-year net revenue growth delivered in the opening three months of the year.
The performance reflects strong momentum across both iGaming and online sports.
Full-year net revenues are now expected to be at least $2.6 billion, up from the previous guidance range of $2.4 billion-$2.5 billion.
Underlying earnings are now forecast to be at least $100 million, up from the previous guidance to be earnings positive.
The business is jointly owned with MGM Resorts International.
Oil price edges higher, Asia markets strengthen
07:12 , Graeme Evans
The price of Brent Crude is near $74.60 a barrel, having surged by 7% on Friday amid fears of Middle East supply disruption.
Today’s rise of 0.5% was accompanied by a slight fall in the price of gold, which stands near to a record high of $3420 an ounce.
The FTSE 100 index is seen opening flat, having closed fallen by 0.4% at 8850.63 on Friday after Israel launched air strikes on Iran. Leading US benchmarks lost more than 1%.
Asia markets are in positive territory this morning, with the Nikkei 225 up by 1% and the Hang Seng index 0.2% higher.
This article was written by Graeme Evans from The Evening Standard and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.