FTSE 100 Falls as Traders Bet on Rate Rises

0913 GMT - The FTSE 100 drops 0.8% to 7554 points as improved U.K. labor market data support expectations the Bank of England will raise interest rates further. Noting that Tuesday's data showed the U.K. unemployment rate fell by a larger-than-expected 0.4 percentage points to 4.1% in the three months to the end of November, Validus Risk Management's Shane O'Neill says: "These figures represent another box ticked on the path to more rate hikes, the first of which is expected as early as February." Meanwhile, U.S. stock futures point to a lower open after the market was closed Monday for Martin Luther King Jr. Day as U.S. Treasury yields rise in anticipation of the Federal Reserve raising rates as soon as March. (renae.dyer@wsj.com)

Companies News: 

Rio Tinto's Australian Iron-Ore Shipments Fall

Rio Tinto's annual iron-ore shipments from its Australian mining operations fell by 3% in 2021 with projects disrupted by a worker shortage and supply chain issues, but expects shipments will likely increase this year.


Genel Energy Expects Cash Flow to More Than Double in 2022

Genel Energy PLC said Tuesday that it expects cash flow to more than double in 2022.


888 Holdings Sees 2021 Revenue Growth of 14% on Expansion in Regulated Markets

888 Holdings PLC said Tuesday that it expects to report revenue growth of 14% for 2021, driven by an expansion in regulated markets.


Henry Boot Sees 2021 Pretax Profit Beating Market Views

Henry Boot PLC said Tuesday that it ended 2021 with a pretax profit materially ahead of the market's expectations and that it is making good progress against its new medium-term strategic targets.


Elementis 4Q Performance in Talc Division Below Year-Earlier Period

Elementis PLC said Tuesday that performance in its Talc division in the fourth quarter was below that from a year earlier because of reduced automotive-related demand stemming from semiconductor supply shortages.


Energean Adjusted Earnings Jumped 88% in 2021

Energean PLC on Tuesday reported that its adjusted earnings nearly doubled in 2021.


ProCook Sees 3Q Revenue Growth, Gross Margin Fall

ProCook Group PLC said Tuesday that it expects to report a revenue increase for its third quarter but a gross margin decline in line with its expectations amid supply-chain issues.


Brickability Sees FY 2022 Adjusted Ebitda Rising Ahead of Market Views

Brickability Group PLC said Tuesday that it expects its fiscal 2022 adjusted Ebitda to exceed current market expectations.


THG Expects FY 2022 Growth Margins to Get Boost From Strong Demand

THG PLC said Tuesday that it expects 2022 growth margins to improve, as the company benefits from continued strong demand, and that it remains confident about its growth plans.


Petra Diamonds 1H Revenue Rose 49%

Petra Diamonds Ltd. on Tuesday reported revenue rose 49% in the first half of the fiscal year.


Just Group Expects 2021 Capital Generation to More Than Double

Just Group PLC said Tuesday that capital generation for 2021 is expected to more than double from the prior year, and that it would beat the board's expectations a year earlier than anticipated.

Market Talk: 

Brent Scales Seven-Year High After UAE Attack

0910 GMT - Oil prices climb to their highest level in seven years, as geopolitical tensions in the Middle East added to worries about tight supply. Brent crude oil futures rose as high as $88.11 a barrel, their highest level since late-2014 before paring some gains. Brent is last up 1% at $87.38 a barrel. Yemen's Iran-backed Houthi rebels claimed responsibility for drone and missile attacks on the United Arab Emirates, in retaliation for the gulf state's renewed involvement in the Yemeni civil war. Part of the attack targeted facilities of the state-owned oil firm ADNOC. The attack on the major energy producer added "geopolitical tension" to "ongoing signs of tightness across the market," says ANZ Bank in a note. (william.horner@wsj.com)

Strong U.K. Labor Market Data Could Lead to a Rate Increase in Feb

0848 GMT - The U.K.'s labor market seems to have remained tight after both the end of the government wage-subsidy program and the start of the Covid-19 Omicron wave, strengthening the case for a rate increase in February, Capital Economics says. "These [November-December] data suggest that labor demand has remained fairly strong, that supply is struggling to keep up and that the squeeze on households real wages is only just beginning," Capital Economics' chief U.K. economist Paul Dales says. The firm expects the Bank of England to raise interest rates to 0.50% from the current 0.25% at its meeting on Feb. 3. (xavier.fontdegloria@wsj.com)

Seven-Year Gilts Trade Cheap Ahead of January 2029 Gilt Auction

0826 GMT - Seven-year U.K. government bonds trade cheap ahead of U.K. Debt Management Office's planned sale Tuesday of GBP2.5 billion in the 0.5% January 2029 conventional gilt, says RBC Capital Markets. The narrative of faster central bank policy normalization in the U.K. and globally has pushed yields higher since the year began, analysts at the bank say. Seven-year gilts sold off Monday, driving yields to their highest level since first half of 2019, though yields are now trading at important resistance levels, limiting further advances, they say. The bond was last tapped on Nov. 3 and will not be tapped further this quarter, according to DMO. Yields rise as prices fall. (lorena.ruibal@wsj.com)


Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswires; paul.larkins@wsj.com

(END) Dow Jones Newswires

January 18, 2022 04:29 ET (09:29 GMT)

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