LONDON MARKETS: FTSE 100 Downshifts After Wave Of Earnings, Ahead Of Trump Tax Rollout
26 April 2017 - 10:14AM
Dow Jones News
By Carla Mozee, MarketWatch
BHP Billiton cuts coking coal, copper outlook
U.K. stocks leaned lower Wednesday, with investors assessing a
new batch for earnings results while they wait to hear
much-anticipated tax plans from U.S. President Donald Trump.
The FTSE 100 was down 0.2% at 7,264.51, led by losses among
utility and industrial shares. The index on Tuesday rose 0.2%
(http://www.marketwatch.com/story/ftse-100-edges-higher-after-rally-but-mining-stocks-hit-by-downgrades-2017-04-25).
A new wave of financial results includes figures from metals
producers Fresnillo PLC and BHP Billiton PLC and exchange operator
London Stock Exchange Group PLC.
More broadly, investors will turn attention to the U.S., where
Trump is expected to roll out a "big tax reform and tax reduction"
package. His proposal is expected to include cutting the corporate
tax rate to 15% from 35%.
(http://www.marketwatch.com/story/trumps-15-corporate-tax-rate-could-cost-the-government-2-trillion-2017-04-25)
Equity markets worldwide in recent months have been bolstered by
expectations for Trump-backed tax and reform policies in the U.S.,
the world's largest economy, but there have also been doubts about
implementation of his proposals after losing his push to repeal the
Affordable Care Act, also known as Obamacare.
"Given that investors have been waiting for details on that
[tax] plan for months, any specifics that are more or less in line
with what Trump pledged during his campaign may result in a fresh
round of gains for the dollar and the U.S. equities," said
Charalambos Pissouros, senior analyst at IronFX, in a note.
"There is also the case that we don't get any specifics, but
only a general announcement regarding what the president wants to
get done without any real numbers. In such a case, the market
reaction may be limited, or even negative if the lack of clarity
disappoints market participants once again."
Movers: Fresnillo PLC shares (FRES.LN) fell 1.3% as the precious
metals miner said quarterly gold production was down 3.3% at
222,300 ounces. Silver production, however, rose, and Fresnillo
said it's on track to reach full-year production guidance
(http://www.marketwatch.com/story/fresnillo-on-track-to-reach-production-guidance-2017-04-26).
(http://www.marketwatch.com/story/trumps-15-corporate-tax-rate-could-cost-the-government-2-trillion-2017-04-25)Antofagasta
PLC (ANTO.LN) reaffirmed its 2017 production outloo
(http://www.marketwatch.com/story/antofagasta-copper-production-rises-94-2017-04-26-24852733)k
as it reported a 9.4% increase in first-quarter copper production
compared with the year before. Shares were down 0.2%.
BHP Billiton (BLT.LN) (BHP.AU) (BHP.AU) scaled back guidance for
annual production of coking coal and copper
(http://www.marketwatch.com/story/bhp-billiton-cuts-coking-coal-copper-guidance-2017-04-26-24851958)after
a cyclone battered eastern Australia last month and a lengthy
strike at the Escondida mine in Chile. BHP also narrowed its
forecast for iron-ore output for the fiscal year. Shares were up
0.5%.
Topping the FTSE 100, Croda International PLC shares (CRDA.LN)
gain 3.7% after the specialty chemicals company said its 2017
outlook remains unchanged after a 19.1% rise in first-quarter sales
(http://www.marketwatch.com/story/croda-sales-rise-back-fiscal-year-outlook-2017-04-26).
London Stock Exchange Group PLC (LSE.LN) posted a rise in
quarterly income and gross profit
(http://www.marketwatch.com/story/lse-profit-jumps-eyes-new-investments-2017-04-26).
Shares of moved up 0.3%.
The pound traded at $1.2820, down from $1.2841 late Tuesday in
New York.
(http://www.marketwatch.com/story/bhp-billiton-cuts-coking-coal-copper-guidance-2017-04-26-24851958)
(END) Dow Jones Newswires
April 26, 2017 03:59 ET (07:59 GMT)
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