UK and European are ending the week on a mixed note after the Dow Jones Industrial index dropped 300 points overnight on global growth fears. The FTSE 100 managed to nudge up 0.2% to 7,042.
At one point last night the US benchmark was down more than 470 points while the CBOE Vix Index or ‘fear gauge’ jumped 15% as investors took a view that volatility in US stocks is set to rise.
A profit warning from motor dealership Pendragon (PDG) sees its shares skid 5% lower to 25p. The company says that new vehicle testing regulations have caused ‘significant new vehicle supply disruption’, raising concerns for new vehicle sales and profitability and causing it to lower its full-year earnings outlook.
Third-quarter results from London Stock Exchange (LSE) show positive momentum with its clearing and index operations as well as the acquisition of another 15.1% stake in LCH Group, taking the exchange’s total ownership beyond 80%. Shares rise for the fourth day in a row, nudging up another 1.2% to £43.36.
It is the first day on the market for Fundsmith's new product, Smithson Investment Trust (SSON), which set a fundraising record for a UK-listed trust launch earlier this month. At £10.11, its shares trade marginally up on their £10 listing price.
Intercontinental Hotels Group (IHG) falls 4% to £40.32 despite a positive third quarter trading update with the best performance for signings and openings in a decade according to the statement.
The hotelier also announced it would return $500m of capital to shareholders by means of a special dividend plus a share consolidation in early 2019.
Dechra Pharmaceuticals (DPH) rises 2% to £21.60 following a positive first-quarter trading update and news of an acquisition.
Packaging firm Essentra (ESNT) sees its shares ease 1% to 382p as it reports flat like-for-like revenues for the third quarter and maintains full-year guidance.
Oil services group Petrofac (PFC) has announced the sale of 49% of its Mexican operations for an initial cash consideration of $200m. Investors are unmoved with the shares trading 2% lower at 587p.
Consumer lender Provident Financial (PFG) treads water at 550p after a lacklustre trading update for the three months to mid-October. The company reports ‘good progress’ towards its full-year goals with Vanquis Bank and Moneybarn performing in line with expectations.
Safestyle (SFE:AIM) leaps 13% to 57p after the company responds to market speculation over talks with rival SafeGlaze. According to the statement the Safetstyle Board is considering arrangements with key stakeholders that ‘could benefit Safestyle’s business and accelerate its recovery’.
