UK stocks staged a tentative recovery after hitting six-month lows yesterday with the FTSE 100 index gaining 9 points or 0.2% to 5,592. Oil stocks and banks led the way after another round of company results.
US futures pointed higher after markets tumbled overnight with the S&P500 index suffering its biggest one-day fall in four months, down 3.5%, as more than 90% of index stocks declined. Energy and technology stocks were the biggest losers, while the VIX volatility index surged to its highest level since June.
Along with other currencies, the pound gained against the dollar trading back above the $1.30 level while crude prices remained weak with Brent crude dipping 1.3% to $38.80 per barrel. Gold caught a bid but remained close to recent lows at $1,880 per ounce.
The company plans to increase its dividend for the third quarter of 2020 by 4% to 16.65 cents per share. It also plans to reduce its net debt position to $65 billion, down from $73.5 billion as of September 30, 2020.
High-street stalwart Lloyds Banking Group (LLOY) said it expected its annual impairment charge to be at the lower end of its guidance range, after it reported Q3 pre-tax profit which rose to £1.04 billion. Shares gained 1.75% to 28.14p.
Despite the bank hinting at a resumption of dividends early next year, the shares dropped 4.4% to 357p.
For the six months to September, pre-tax profit fell 20% to just over £1 billion, as revenue fell 8% to £10.6 billion due to a pandemic-led reduction in BT Sport revenue and business activity
The result brought the company's total revenue for the first nine months of 2020 to £8.6 billion, down by 11.5% on the same period in 2019. Shares fell more than 3% in early trading to 595.6p.
Medical technology giant Smith & Nephew (SN.) reported third quarter revenue of $1.2 billion, down 4.2% year-on-year on an underlying basis but a significant improvement on the second quarter's underlying revenue fall of 29.3%. Shares were down 0.9% to £13.72.
Professional services firm RPS Group (RPS) reported a marginal increase in fee revenue in the third quarter compared to the second quarter amid 'pleasing signs of recovery'. Shares were up 2.6% to 51.8p in early trading.
Kaz Minerals (KAZ) raised its guidance for silver and zinc production and said all metals were on track to achieve or exceed full-year production guidance despite a slip in quarterly silver and gold output in the third quarter. Shares were almost unchanged at 628.6p.
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