London open: Stocks edge lower as pound breaches $1.40; jobs data eyed
London stocks edged lower in early trade on Wednesday as the pound breached the 1.40 level against the dollar, with investors wary ahead of the release of key jobs data.
At 0830 GMT, the FTSE 100 was down 0.3% to 7,711.16, while the pound was up 0.2% versus the euro at 1.1406 and 0.3% firmer against the dollar at 1.4042. A stronger pound tends to dent the top-flight index as around 70% of its constituents derive most of their earnings from abroad.
Average earnings, the claimant count and the ILO unemployment rate are all due at 0930 GMT.
Spreadex analyst Connor Campbell said: "Sterling may have something of a workout this Wednesday, however, dependent on the state of the UK jobs report. With inflation pulling back to - an admittedly still high - 3.0% in December, it would be handy if the wage growth reading for the 3 months to the end of November beats the unchanged 2.5% forecast by analysts, therefore providing a slither of hope for those whose wages have been severely squeezed in the last few months. As for the other figures, the unemployment rate is expected to remain at 4.3%, with the claimant count change for falling from 5.9k in November to 2.3k in December."
In corporate news, accounting software developer Sage retreated after it increased sales slightly below target in the first three months of its financial year as it invested "heavily" in sales training to allow sales to accelerate in coming months.
Chile-focused miner Antofagasta was on the back foot after it said full-year copper production fell 0.7% to 704,300 tonnes, in line with guidance.
Crest Nicholson slipped after reporting a rise in full-year pre-tax profit, with revenue and volumes edging up, as it announced that Patrick Bergin has been promoted to the role of chief executive officer with effect from 22 March.
WH Smith fell as the retailer posted a drop in sales over the Christmas period, mostly on the back of a weaker performance from its high street stores.
Polymetal was in the red as it reiterated its fourth-quarter production guidance and said there will be no special dividend for 2017.
Morgan Advanced Materials was a little weaker after saying it expects changes to the US tax system to cut its US tax rate to between 28% and 29% from 30%.
Mexico-based precious metals miner Fresnillo was higher after it reported record annual silver production in its fourth quarter production update, totalling 58.7 moz including Silverstream.
Pub group Wetherspoon rallied as it said that year-to-date, underlying pre-tax profit is slightly ahead of its expectations.
In broker note action, Marks & Spencer and Dixons Carphone were hit by downgrade to 'underperform' and 'neutral' at Credit Suisse.
NMC Health was lower after a downgrade to 'neutral' at JPMorgan
William Hill was boosted by an upgrade to 'hold' at HSBC, while Countrywide was up on the back of an upgrade to 'hold' at Berenberg.
Market Movers
FTSE 100 (UKX) 7,711.16 -0.27%
FTSE 250 (MCX) 20,645.18 -0.13%
techMARK (TASX) 3,509.60 -0.66%
FTSE 100 - Risers
Fresnillo (FRES) 1,357.50p 1.69%
3i Group (III) 932.80p 1.35%
Randgold Resources Ltd. (RRS) 7,132.00p 1.19%
Anglo American (AAL) 1,743.00p 1.16%
Just Eat (JE.) 810.40p 1.10%
Old Mutual (OML) 239.70p 1.10%
Glencore (GLEN) 394.55p 0.97%
Mediclinic International (MDC) 631.80p 0.96%
Direct Line Insurance Group (DLG) 370.50p 0.82%
GKN (GKN) 439.00p 0.55%
FTSE 100 - Fallers
Sage Group (SGE) 786.00p -4.31%
Marks & Spencer Group (MKS) 300.90p -2.24%
Antofagasta (ANTO) 950.60p -1.70%
Carnival (CCL) 4,860.00p -1.38%
Rentokil Initial (RTO) 300.70p -0.99%
Rolls-Royce Holdings (RR.) 868.20p -0.98%
AstraZeneca (AZN) 5,054.00p -0.92%
Smurfit Kappa Group (SKG) 2,598.00p -0.84%
Halma (HLMA) 1,304.00p -0.76%
Intertek Group (ITRK) 5,140.00p -0.73%
FTSE 250 - Risers
Wetherspoon (J.D.) (JDW) 1,313.00p 3.39%
Investec (INVP) 559.96p 1.70%
Caledonia Investments (CLDN) 2,870.00p 1.59%
Hastings Group Holdings (HSTG) 306.60p 1.59%
Sanne Group (SNN) 735.00p 1.52%
William Hill (WMH) 302.60p 1.20%
Kaz Minerals (KAZ) 890.60p 1.14%
Cineworld Group (CINE) 489.20p 1.12%
Ferrexpo (FXPO) 291.20p 1.08%
Ocado Group (OCDO) 536.80p 1.05%
FTSE 250 - Fallers
WH Smith (SMWH) 2,086.00p -2.16%
Dixons Carphone (DC.) 202.70p -2.12%
Mitie Group (MTO) 181.90p -1.68%
Purecircle Limited (DI) (PURE) 397.00p -1.37%
Polymetal International (POLY) 853.20p -1.30%
Wizz Air Holdings (WIZZ) 3,644.00p -1.22%
Homeserve (HSV) 793.00p -1.18%
Superdry (SDRY) 1,824.00p -1.03%
IG Group Holdings (IGG) 772.50p -1.02%
Diploma (DPLM) 1,183.00p -1.00%