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. (firstname.lastname@example.org)
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
888 Holdings PLC said Tuesday that it expects to report revenue
growth of 14% for 2021, driven by an expansion in regulated
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
Elementis 4Q Performance in Talc Division Below Year-Earlier
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
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
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
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
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.
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
Strong U.K. Labor Market Data Could Lead to a Rate Increase in
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.
Seven-Year Gilts Trade Cheap Ahead of January 2029 Gilt
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.
Contact: London NewsPlus, Dow Jones Newswires; Dow Jones
(END) Dow Jones Newswires
January 18, 2022 04:29 ET (09:29 GMT)
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