FTSE 100 Seen Higher; Focus on Gilts, Sterling After Bailey Remarks

FTSE 100 Seen Opening Higher After Recent Losses

0649 GMT - The FTSE 100 is seen opening higher after falling in recent sessions as investors digest U.K. economic growth data and remarks from Bank of England Governor Andrew Bailey. IG futures data show the London index opening up 20 points after closing 74 points lower on Tuesday. The U.K. economy contracted 0.3% on month in August, compared with expectations for 0.1% growth in a WSJ survey of economists. Meanwhile, Bailey said the BOE would end its emergency bond-buying program on Friday as planned. Investors should "brace for a deeper dive in UK sovereigns and the pound" after his remarks, Swissquote Bank analyst Ipek Ozkardeskaya writes. However, the FTSE 100 could benefit from a weaker sterling as it boosts oil stocks, she says. ([e-mail])

 
Companies News: 

PageGroup 3Q Gross Profit Rose, Sees 2022 Operating Profit in Line With Views

PageGroup PLC said Wednesday that gross profit for the third quarter of 2022 rose 14%, and that it expects operating profit for the full year to be in line with market views.

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Barratt Developments' Early FY23 Forward Sales Slip, Sees Full Year In-Line

Barratt Developments PLC said Wednesday that total forward sales value fell 8.6% at the start of fiscal 2023, though it still expects to meet market expectations for the full year.

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Darktrace Says Sales Momentum Continued in 1Q; Backs FY 2023 Guidance

Darktrace PLC said Wednesday that continuing sales momentum drove its performance in the first quarter of fiscal 2023, and backed its guidance for the year.

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QinetiQ Sees FY 2023 in Line With Views Given Robust Order Intake

QinetiQ Group PLC said Wednesday that it is confident about delivering a performance in line with the board's expectations for fiscal 2023, given that most of the full-year revenue is under contract.

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Kin & Carta FY 2022 Pretax Loss Widens on Higher Costs; Revenue Rose

Kin & Carta PLC said Wednesday that its fiscal 2022 pretax loss widened despite higher revenue, on increased costs and lease-related charges.

 
Market Talk: 

BOE's Mention of Threats of 'Fire Sale' in Gilts Isn't What Govt Wants to Hear

0645 GMT - ?The Bank of England's acknowledgement Tuesday that threats of a "fire sale" in the gilt market pose a risk to U.K. financial stability cannot be what the government wants to hear, Charles Hepworth, investment director, GAM Investments, says?. The U.K.'s 30-year gilt is down 23% over the past month, and it is now close to where it fell ??to just before the B?OE was forced to intervene?, he writes in a note. This suggests that "monetary credibility is close to being lost?," he says, adding that this needs to be sorted as soon as possible or wider cracks will start to build, though credibility is difficult to restore once lost.? ([e-mail])

BOE's Linker Purchase Started Well, Federated Hermes Says

0630 GMT - ?The Bank of England's first buyback of index-linked gilts on Tuesday saw more offers and take-up from the BOE, says Orla Garvey, senior fixed income portfolio manager at Federated Hermes. "This is a positive start and suggests deleveraging is taking place, however the big unknown remains how much more there is remaining to be sold, so the offers into the buybacks for the remainder of this week should be very telling," she writes in a note. Garvey thinks the BOE will likely want to step away from the financial stability support as planned at the end of this week, but says this is difficult to do without giving the market some comfort around what to expect regarding quantitative tightening. ([e-mail])

Contact: London NewsPlus; Dow Jones Newswires; [e-mail]

(END) Dow Jones Newswires

10-12-22 0313ET