LONDON MARKETS: FTSE 100 Marches Higher Amid A Flurry Of Profit Warnings
September 26 2019 - 7:49AM
Dow Jones News
By Barbara Kollmeyer, MarketWatch
International Consolidated Airlines, Imperial Brands, Pearson
slump
The U.K.'s FTSE 100 kept pace with stronger European markets on
Thursday, with oil and mining stocks leading the gainers, though a
flurry of profit warnings weighed on a handful of companies.
The FTSE 100 led gains across regional European markets with a
1.1% gain to 7373.87 after the British pound dropped to $1.2307
from $1.2351 on Wednesday, proving a boost to U.K. exporters.
London stocks followed European equities higher as investors
grew more optimistic about a U.S.-China trade deal after upbeat
comments from U.S. President Donald Trump and a limited trade deal
between the U.S. and Japan was signed Wednesday. Also underpinning
positive sentiment, a spokesman from China's Ministry of Commerce,
Gao Feng, said Chinese buyers have "completed deals to buy soybeans
and pork of considerable scale," the Associated Press reported
(http://www.marketwatch.com/story/china-has-made-deals-to-buy-us-soybeans-pork-says-beijing-source-2019-09-26).
However, investors were keeping one eye on U.S. House Speaker
Nancy Pelosi's formal launch Tuesday of an impeachment inquiry into
President Trump.
Across stocks, Pearson PLC (PSON.LN) plunged 18% after the U.K.
media group warned of weaker than expected third-quarter
performance
(http://www.marketwatch.com/story/pearson-warns-of-us-weakness-sees-2019-profit-at-bottom-of-guidance-2019-09-26-3103124)
at its U.S. higher-education unit, and said expects full-year
adjusted operating profit to come in at the bottom of guidance.
And shares of Imperial Brands PLC (IMB.LN) tumbled 10% after the
tobacco company warned of weaker revenue
(http://www.marketwatch.com/story/imperial-brands-shares-tumble-as-vaping-crisis-hits-revenue-2019-09-26-391431)
due to challenges in its next-generation products (NGP) market in
the U.S. The U.S. Food and Drug Administration has been cracking
down on e-cigarettes following a recent outbreak of severe lung
disease that appears to be related to vaping.
Shares of International Consolidated Airlines Group S.A.
(IAG.LN) fell 3% on Thursday after the airline group said it
expects adjusted operating profit for 2019 to be below that of 2018
due to recent strikes at British Airways.
(END) Dow Jones Newswires
September 26, 2019 07:34 ET (11:34 GMT)
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