- FTSE 100 index closes 16 points lower
- US stocks push higher after cautious open
- US data mixed ahead of Jackson Hole
4.50pm: Falls still for Footsie
The FTSE 100 index ended lower but off its worst levels on Wednesday as US stocks rallied following a recent run of declines helped by some mixed data ahead of the start tomorrow of the Federal Reserve's Jackson Hole symposium.
At the close, the UK blue-chip index was down 16.60 points, or 0.2% at 7,471.51, below the session peak of 7,488.12 but well above the day’s low of 7,410.40.
On Wall Street, around London’s close, the Dow Jones Industrial Average was up 165 points, or 0.5% at 33,075, while the broader S&P 500 index added 0.6%, and the tech-laden Nasdaq Composite advanced 0.9%.
Chris Beauchamp, chief market analyst at online trading platform IG commented: “While the downward momentum of the past few days has eased off, particularly in US markets, there remains an underlying nervousness about the Jackson Hole meeting later in the week.
"The inflation shock-driven selloff from Monday and Tuesday has abated for now, as investors begin to think that the sheer size of expected price increases will need government intervention of a substantial sort. But buyers have yet to show up, and they are unlikely to do so until the contents of Powell’s speech are released.”
He added: “Commodities like gold and oil have made headway since the beginning of the week, and have held firm in trading so far today, suggesting a reversal higher could still be on the cards. This would bring inflation concerns back to the fore, and so the interplay between commodities and equities will be worth watching as a key driver of risk as we head into Jackson Hole and beyond.”
3.40pm: US pending home sales outperform
The day's other US data shows that pending home sales fell 1.0% in July, although that was better than the consensus for a 2.8% decline and helped Wall Street perk up slightly.
Pantheon Macroeconomics chief economist Ian Shepherdson commented: "Pending home sales have now fallen 27% from the recent peak in October, tracking the collapse in mortgage demand caused by higher rates. That said, mortgage demand appears to be stabilising now that rates are no longer rising; our August estimate based on the available weekly data is broadly unchanged.
"Accordingly, home sales likely will reach a floor before the end of the year, but no recovery is in sight. In the past two months, existing home sales have fallen below the level implied by pending sales, presumably because a larger proportion of buyers than usual have pulled out of transactions. If this continues, existing home sales will dip a bit further in August. But whatever happens to sales, home prices have much further to fall."
After an hour of trading in New York, the Dow Jones Industrial Average had reversed early falls to add 49 points, or 0.2% at 32,959, while the S&P 500 index gained 0.3%, and the Nasdaq Composite took on 0.5%.
In London, the FTSE 100 index was still lower, off 21.47 points, or 0.3% at 7,466.64.
3.05pm: Not so durable data
US durable goods orders came in virtually unchanged for the month of July, according to a new report from the US Census Bureau.
New orders decreased by less than $0.1 billion to $273.5 billion - the first decrease following four consecutive monthly increases, including a 2.2% increase in June.
Pantheon Macroeconomics chief economist Ian Shepherdson noted that headline orders were depressed by a huge drop in orders for defence aircraft, more than reversing the June leap.
“The most important number in the report, nondefense capital goods orders ex-aircraft, rose a modest 0.4%, but the May and June orders were revised up, by a total of 0.4%,” he said. “The trend is still rising at a decent pace, though it has slowed since the turn of the year.”
He added that domestic inflation in capital goods prices was now about 9%, but this had peaked and would fall sharply over the next year.
“In the meantime, real spending on business equipment probably will fall a bit in 3Q, as it did in 2Q, but we hope for a return to the black in 4Q and a much stronger rebound in 2023,” Shepherdson said.
The mood in New York remained cautious, with the Dow Jones Industrial Average still only down 46 points, or 0.1% at 32,863, while the S&P 500 index was flat, and the Nasdaq Composite edged up 0.1% after around half an hour of trading.
In London, the FTSE 100 index was off 25.00 points, or 0.3% at 7,462.89, holding above the day’s low of 7,410.40 but below the session peak of 7,488.12.
2.25pm: Caution holds sway
The FTSE 100 index nursed its falls as US stocks began cautiously on Wednesday as investors stayed on the sidelines ahead of the Federal Reserve's highly anticipated Jackson Hole symposium which begins tomorrow.
Just after the open in New York, the Dow Jones Industrial Average had shed 44 points, or 0.1% at 32,865 points, the S&P 500 index was down 3 points at 4,126 points, and the Nasdaq Composite was flat at 12,381 points.
Exinity Group chief market analyst Han Tan noted that markets had clearly been anxious in the lead-up to Jackson Hole, as investors and traders awaited the next policy clues out of Fed chair Jerome Powell later this week.
He said the declines in equities and bonds of late suggested that Powell would strike a hawkish tone to fight rampant inflation at the expense of economic growth.
“If Powell’s commentary forces markets to further price in more supersized Fed rate hikes, that might trigger more declines for equities and gold, while king dollar would continue to exert its dominance across the FX universe,” Tan said.
“If Powell appears more dovish than envisaged, perhaps adopting a more cautious tone over the US economic outlook, that could reassert the narrative that the Fed will back off from larger rate hikes and potentially allow risk assets to resume their summer rally.”
Around 2.45pm, the UK blue-chip index was down 36.14 points, or 0.5% at 7,456.97, above the day’s low of 7,410.40 but below the session peak of 7,488.12.
2.20pm: Rental market squeeze
London renters were today warned by Foxtons (LSE:FOXT), the city’s biggest agency, that there is no sign of the current rental market easing in the coming months.
Foxton’s claims that new listings fell by 40% over the year, with 28 renters competing for every new property, forcing prices up.
The situation and imbalances were more prevalent in East London, usually a hotbed for professionals, where often 38 renters would be battling it out for one property.
Across the capital, prices remained close to all time highs in July, with rents up 23% compared to last year, with South London the most desirable area.
“Rent is making headlines in the Capital. Putting aside renewals, which are reflected in the ONS data, London’s average rental price for new rents was £541 per week in July, hot on the heels of June’s £549, which broke the record as highest monthly rental price in years,” said Foxtons (LSE:FOXT) managing director Sarah Tonkinson
“This is due to high demand and low supply – aggregators have had 40% fewer new listings year to date.”
1.58pm: Rio Tinto makes improved offer
On the topic of mergers and takeovers, Rio Tinto said it submitted an “improved non-binding proposal” to acquire the remaining 49% stake in Turquoise Hill that the miner does not already own.
Under the improved terms, Turquoise Hill shareholders would receive roughly C$40 per share.
According to a statement, the new proposal values the mineral exploration company’s 49% stake at roughly US$3.1bn, representing an 18% premium to Rio Tinto’s initial offer of C$34.
Further, the FTSE 100 company said it represents a 56% premium to its share price on the Toronto Stock Exchange on 11 March 2022, a day prior to the initial proposal.
"Rio Tinto believes this offer not only provides full and fair value for Turquoise Hill shareholders but is in the best interests of all stakeholders as we work to move the Oyu Tolgoi project forward,” said Rio’s chief executive Jakob Stausholm.
“We will continue to take a disciplined approach to capital allocation and strongly encourage the Board of Turquoise Hill to engage constructively, and to support and recommend in favour of Rio Tinto's improved proposal."
1.46pm: Potential Aveva buyout
Shares in FTSE 100 company Aveva surged 36% after a French industrial conglomerate said it was considering buying out the software firm.
Schneider, which specialises in digital automation and energy management, said it was considering buying the company which has a market cap of around £8.7bn.
Currently, Schneider already owns 60% of AVEVA after it merged in 2017, and said it has until 5 pm on 21 September to decide if it is to go ahead with the deal.
1.33pm: Institutional interest massive for crypto
Mastercard is looking at ways to enter the crypto market, and potentially be a leader in the sector, having partnered with Binance to launch a crypto prepaid card in Argentina.
According to Marcus Sotiriou, an analyst at GlobalBlock, who quotes Bitstamp, institutional interest is ‘massive’ at a time where Bitcoin is fairly stable.
“Whilst Bitcoin lacks volatility so far this week, remaining around $21,300, institutional interest is ‘massive’ according to Bitstamp.”
“In an interview published on Monday, Bitstamp’s global CEO, Jean-Baptiste Graftieaux, said “Many institutional companies are looking to make their first move into crypto,” whilst referring to their own institutional clients.”
The CEO also commented on regulation, claiming, “Most regions and countries are looking into regulating crypto. The key risk here is around ensuring regulations are smart and they foster a level playing field.”
Currently, crypto service providers doing business in Europe must register with each country separately to ensure it adheres to their own specific regulations.
“However, the introduction of the European Comission’s MiCA (Markets in Crypto-Assets) proposal, which will come into effect over the next 1-2 years, will mean that there will be one country where you can establish your activities as MiCA-compliant, and then carry out these activities across other European countries,” Sotiriou added.
“This will help provide a holistic framework for the crypto industry in Europe.”
12.57pm: Investors await tomorrow's Jackson Hole Sympsoium
Tomorrow’s Jackson Hole Economic Symposium is seemingly having a greater impact on sentiment and the markets than what has already been said, at least according to Craig Erlam, senior market analyst at OANDA.
The Jackon Hole bring together the most important monetary policymakers to discuss important economic issues, such as reassessing financial constraints on the economy and policy.
“A relatively slow session so far in the middle of the week, with the focus very much still on the Fed and interest rates ahead of the Jackson Hole Symposium that kicks off tomorrow,” Erlam said.
“It's interesting that the fear of what could be said is seemingly having a far greater impact on sentiment and the markets than what has actually been communicated in recent weeks.”
“Investors have repeatedly turned a blind eye to Fed commentary since the last meeting which has enabled stock markets to recover a lot of lost ground.”
“It's always hard to say how long that will last and whether it will continue as markets have spent much of the last year not on the same page as the Fed and as it's turned out, for good reason.”
“Any trepidation now may simply be a case of groundwork being laid for another rally later if Powell is deemed to be remotely dovish on Friday, intentionally or otherwise.”
“The fact remains that Jackson Hole has on occasion in the past been used as a platform to send clear messages to the markets and not always one that is expected.”
“That may be feeding some of the nervousness but if Powell is going to stick to the script and get through to the markets, he'll need to do so far more convincingly than he and his colleagues have managed so far.”
12.22pm: No freezing of energy bills
Calls from Scottish Power to freeze energy bills have been dismissed by armed forces minister James Heappey, who believes it is not the best solution.
Scottish Power boss Keith Anderson asked the government to back a £100bn loan scheme, which had the support of EDF and would allow energy companies to freeze bills for two years.
Essentially, suppliers would freeze bills by borrowing funds from commercial lenders, making up the difference between customers’ bills and the cost on the wholesale market, which would be recouped from billpayers once prices have fallen.
Business Secretary Kwasi Kwarteng is said to be looking over the proposal, although a government source quoted in Sky News downplayed the idea it was being seriously considered.
James Heappey, also quoted in Sky News, said “I don’t think that a universal freezing of everybody’s energy bill really helps to get taxpayers’ money into the bank accounts of the people who need support the most.”
Potential Tory leaders Liz Truss and Rishi Sunak have ruled out a freeze, despite Labour, SNP and the Liberal Democrats all calling for a similar measure.
12.08pm: Israel to supply Europe with gas
More on gas, with Israel increasing its own production by 22%, with exports into Europe lined up to help ease the crisis.
Production rose to 10.8bn cubic metres through to June, with exports to its neighbours climbing 35%.
As a result, Israel is ramping up output to European nations as energy prices across the continent hit record highs due to Russia’s invasion of Ukraine.
Russia cutting supplies and the European Union actively looking elsewhere has left many nations scrambling for a seller as a tough winter approaches.
In June, Israel signed an agreement with Egypt and the EU to boost gas exports.
As part of the agreement, gas will be shipped to Egypt, which already receives a bulk of Israel’s gas exports, and then re-shipped to the bloc.
According to Bloomberg, initial flows under the deal aren’t expected to be substantial but could provide Europe with some of its gas needs as Israeli output rises in the years to come.
11.40am: US preview
The FTSE 100 index remained weak in late morning trading with US stocks also expected to open slightly lower as investors revisit worries over a slide into recession.
A data-heavy week on Wall Street has brought a new note of gloom ahead of the Federal Reserve’s much-anticipated annual symposium at Jackson Hole starting on Friday.
Futures for the Dow Jones Industrial Average were trading 0.1% lower pre-market, while those for the broader S&P 500 index and contracts for the tech-laden Nasdaq-100 were also both down 0.1%, extending the previous session's falls.
“US equity indices fell for the third day, as investors continued scaling back their long positions into the Jackson Hole meeting, where the Fed officials may not sound as dovish as many investors wish they would,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank, explaining the pressure on stock prices.
The keynote address at the Jackson Hole symposium, by US Fed chairman Jerome Powell on Friday, will be eagerly awaited for clues on the path for interest rates which have been raised steadily and aggressively throughout the year. Investors are starting to believe that those hoping for Powell to signal an end to the rate hikes in this cycle are likely to be disappointed.
In the meantime, US economic data out yesterday proved weak, suggesting that activity is starting to stutter under the weight of inflation and higher interest rates. New home sales slowed along with the manufacturing sector while the services sector PMI sank further.
Today, the focus will be on US durable goods figures for July which are expected to register a significant slowdown, moving on to the second estimate of 2Q GDP data on Thursday where a small downward revision may be likely.
Around 11.40am, the FTSE index was down 22.17 points, or 0.3% at 7,465.94.
11.25am: CBI survey worrying
The Confederation of British Industry (CBI), which claims to speak on behalf of nearly 200,000 businesses in the UK, warned that many companies face “distress” unless urgent action is taken by the government.
The body claims firms were already feeling the squeeze, and that energy bills being pushed even higher will pile on the pressure.
A survey published by the confederation showed that 69% of firms expect bills to rise in the next three months, and nearly a third expect them to go up more than 30%.
Additionally, one in three businesses said rising energy prices will likely dampen any possible investment in transitioning to net zero emissions.
The CBI called for government support to households and firms that needed it the most.
Some measures presented included a reintroduction of the Time to Pay scheme that was in place during the Covid pandemic, which gave companies the flexibility on when to pay their tax, as well as freezing business rates paid to local councils.
11.07am: Cathie Wood's cuts Nvidia stake
Cathie Wood’s ARK Invest funds cut their stake in chipmaker Nvidia ahead of its results, having already warned on second quarter figures.
The ARK Innovation ETF sold US$40mln worth of Nvidia, while the ARK Next Generation ETF sold US$11mln worth of shares.
Microchip industry is experiencing a slow down in growth, according to figures from The World Semiconductor Trade Statistics.
Sales growth is expected to slow to 14% this year and 5% in 2023 after experiencing a 26% growth last share.
Nvidia’s shares have nosedived 42% in the year to date.
10.43am: UK cuts dependence on foreign gas
Germany’s inflow of natural gas reached an all-time high, despite Russia continuing to limit supplies via Nord Stream 1 into the country.
I know that you dislike hearing it, but Germanys inflow of nat gas just reached an all time high
Forget the “Germany will freeze” scenario pic.twitter.com/cFdssPYcqP
— AndreasStenoLarsen (@AndreasSteno) August 24, 2022
A report by The Washington Post said its natural gas storage facilities are more than 80% full, showing steady progress despite a drastic reduction in supplies from the Kremlin since it invaded Ukraine.
However, while Klaus Mueller, Germany’s network regulator said storage is steadily being filled, a planned three-day halt to deliveries through the Nord Stream 1 pipeline would dampen the effort.
Storage was about 56% when Gazprom, Russia’s state-owned energy company, cut its supply in mid-June, and is still currently only running at 20% capacity.
Meanwhile, closer to home, the UK has cut its own dependence on imported gas, with new figures from OEUK, the offshore energies trade association, showing domestic gas production was 26% higher in the first half of 2022 compared to the same period a year earlier.
This is enough, according to its figures, to heat almost 3.5mln homes.
The additional 3.5bn cubic metres added to UK gas supplies from UK production in the first half of the year has been driven by a range of factors, including the start-up of new fields in the southern North Sea, including Harbour’s Tolmount field and IOG’s Saturn Banks project.
There has also been much less planned shutdown activity due to the extent of work completed in 2021 and as companies focus on plant uptime to maximise energy supply.
These new figures mean around half of the UK’s gas needs in recent months have been met with home-produced resources, increasing the availability of reliable domestic supplies and reducing the need to buy in even more gas from other countries, according to OE UK.
"While we don’t know what winter will bring for the UK this year, we know that it is coming and, we must be prepared for the worst and hope for the best to support UK energy security,” sad OEUK sustainability director Mike Tholen.
"UK gas producers have already ramped up domestic supplies by 26% in the first half of this year compared to the same period last year. The massive increase in our support for the UK’s gas needs can only be sustained by substantial ongoing investment from gas producer companies.”
"If we are to continue our efforts to protect UK gas supplies, which remains the backbone of our energy mix for electricity, heating and industrial processes, we need politicians of all parties to support energy produced here in the UK with all the benefits that brings for taxes, energy security and jobs.”
“It’s all the more important at a time when we can’t afford to tighten supplies even further, which is what will naturally happen if domestic production of gas isn’t maintained."
10.18am: Quick snapshot
FTSE 100 opened lower, down 25 points to 7,462. Shares in London got off to a weak start following falls in the US on Tuesday and Asia overnight.
The Trades Union Congress said the minimum wage should be raised to £15 an hour. Currently, workers aged 23 and over are entitled to a minimum wage of £9.50 with lower rates for younger employees.
A Toyota advert that “condoned and encouraged unsafe or irresponsible driving” has been banned. The Advertising Standards Authority ruled people were able to infer Toyota GR Series vehicles were “capable of delivering a performance based on speed and an element of risk.”
A hosepipe ban from Thames Water comes into effect today. 15mln people are expected to be impacted by it.
Cornish Metals hit high-grade intersections of copper, tin, and zinc mineralisation at United Downs in Cornwall. All four of the remaining holes from the Phase 1 drilling programme intersected multiple zones with metal.
Gfinity launched a gaming tournament-based platform Athlos Game Technologies targeting the fast-growing games services sector. The company also revealed the appointment of EA veteran Todd Sitrin as a strategic advisor to Athlos.
Deltic Energy said it is 'incredibly excited' at being on the verge of drilling its first well with Shell. The Pensacola exploration well is due to spud in October and that will be primary focus over the coming months.
9.57am: Oil climbs
Oil prices climbed back above US$100 overnight and are on the rise again this morning, while new data shows that Britain imported no fuel from Russia for the first time since records began 25 years ago.
The Office for National Statistics said imports of goods from Russia fell to £33mln in June 2022, the lowest level since records began in January 1997.
Economic sanctions applied by the government are "likely to have driven the decreases in imports from and exports to Russia; however self-sanctioning, whereby traders voluntarily seek alternatives to Russian goods, is also likely a factor".
Meanwhile, UK gas producers have boosted domestic production this year and so cut dependence on imported gas, according to the offshore energy body Offshore Energies UK (OEUK), with around half of the UK’s gas needs in recent months met with home-produced fossil fuels.
New official figures show domestic gas production in the first half of 2022 was 26% higher than the same period in 2021, enough to heat almost 3.5mln homes for a year.
Gas was used for 44% of Britain's electricity generation in July.
The additional 3.5bn cubic metres added from UK production in the first half of the year has been driven by a range of factors, said OEUK, which represents oil, gas, hydrogen and wind producers and their supply chain.
New gas fields were started in the southern North Sea, including Harbour Energy PLC's (LSE:HBR) Tolmount field and IOG PLC's (AIM:IOG) Saturn Banks.
There has also been much less planned shutdown activity due to the extent of work completed in 2021 and as companies focus on plant uptime to maximise energy supply, the organisation said.
OEUK said renewable electricity generation and alternative domestic heating sources such as hydrogen were not yet available at the scale needed.
"UK gas producers have already ramped up domestic supplies by 26% in the first half of this year compared to the same period last year. The massive increase in our support for the UK’s gas needs can only be sustained by substantial ongoing investment from gas producer companies," said OEUK Sustainability Director Mike Tholen.
"If we are to continue our efforts to protect UK gas supplies, which remains the backbone of our energy mix for electricity, heating and industrial processes, we need politicians of all parties to support energy produced here in the UK with all the benefits that brings for taxes, energy security and jobs. It’s all the more important at a time when we can’t afford to tighten supplies even further, which is what will naturally happen if domestic production of gas isn’t maintained."
Brent crude, meanwhile, is up 1.6% to US$101.79 this morning, having hovered in the 90s since the start of August.
With Shell and BP not reacting, the FTSE 100 is down 27 points or 0.4% to 7,461.
8.45am: Starting in the red
The FTSE 100 opened lower on Wednesday with investors preferring to stay sidelined in the absence of any major corporate or economic news.
By 8.45am the blue chip index was trading 34.03 points lower at 7,454.03..
Richard Hunter, head of markets at interactive investor, commented “With investors for the most part sitting on their hands ahead of the imminent Jackson Hole symposium, markets failed to make much progress.”
“For the premier index, inaction was again in evidence as the FTSE 100 struggled to make any meaningful headway in early exchanges,” Hunter said.
“Increasingly hemmed in by the challenges of overseas economies from which its companies derive most of their income, its 1.2% rise so far this year has been mostly driven by rising commodity prices in general and a weaker sterling which heightens the value of those international earnings” Hunter added.
“Some additional defensive support among its constituents alongside a strong average dividend yield has also proved to be of some attraction to global investors seeking a different investment destination,” he said.
Shares in BATM Advanced Communications Limited fell 2.8% in early trading after its first half results.
The group, which said, full year trading was in line with expectations reported a fall in first half revenues to US$6.7mln at US$57.5mln in the six months to June 30th, largely reflecting the performance of the bio-medical unit and, specifically, the downturn in demand for its diagnostic products as the Covid threat receded.
Growth is expected to return to this division in the second half, investors were told.
8.10am: FTSE 100 opens in the red
Shares in London got off to a weak start on Wednesday following falls in the US on Tuesday and Asia overnight and with little corporate or economic news to provide direction.
Concerns that a combination of rising interest rates and higher energy costs would push the global economy into a lengthy recession continued to weigh on equities.
At 8.10am the FTSE 100 was trading down 24.05 points at 7,464.06 with the FTSE 250 slipping 59.82 points to 19,247.07.
Corporate news was thin on the ground in London but Lookers' was an early riser with shares up 2.5% after the group reported first half pre-tax profits broadly in line with last year of £49.9mln (2021 £50.4mln) with revenues up to £2,230mln from £2,153.2mln driven by increases in used vehicles and aftersales.
The automotive retail and service group said first half trading had been strong despite OEM supply constraints on new vehicles and good progress against strategic priorities.
Analysts at Peel Hunt described the results as strong, “comfortably ahead of forecasts and guidance.”
“Gross margins remain high, reflecting supply constraints and operational initiatives, while inflationary pressures remain well-managed.”
“Given the strength of the order book, we should be upgrading, but questions centre on the supply of new cars rather than consumer confidence or willingness to buy.”
The broker retained its buy rating.
Shares in Tracsis (AIM:TRCS) PLC advanced 1% after it said it expects adjusted EBITDA to be ahead of market expectations as it gave a trading update today.
The provider of software, hardware, data analytics/GIS and services for the rail, traffic data and wider transport industries said group revenues are expected to have increased to c.£69.0mln from £50.2mln last year reflecting strong organic and acquisitive growth.
Both divisions have delivered high levels of revenue growth while strong cash balances of around £17.2mln will enable the group to continue to invest in its technology base and to support future organic and acquisitive growth opportunities, the company said.
Essensys was another on the up today with shares rising 4.1% after it said revenue and adjusted EBITDA for the full year 2022 are expected to be in line with consensus market expectations.
As at year end the Group had contracted new business which is expected to deliver £1.6mln of annual recurring revenue and has a healthy new business pipeline of opportunities.
The group ended the year with a strong cash balance of £24mln, ahead of management's expectations, which will support its strategic plans.
7.30am: London set for further losses
The FTSE 100 is expected to open lower this morning extending yesterday’s losses following falls in the US on Tuesday and in Asia overnight.
Markets in Asia came under pressure as more covid lockdowns in China, this time in a city just outside Beijing reinforced the feeling that there was unlikely to be any recovery in China this side of next year.
Spread betting companies are calling the lead index in London down by around 10 points.
Michael Hewson chief market analyst at CMC Markets UK said: “With European gas prices continuing to trade at record highs, investor anxiety is growing that a combination of central banks raising rates and higher energy prices will tip the global economy into a long recession.”
“Yesterday we saw further evidence of the damage that high energy prices, supply chain disruptions and the risk of rising interest rates are doing to economic sentiment across Europe, as well as the US, after the latest flash manufacturing PMI showed that recession is looming in Germany, France, and the UK.”
On a quiet day of corporate news in London Lookers PLC (LSE:LOOK) reported first half pre-tax profits broadly in line with last year of £49.9mln (2021 £50.4mln) with revenues up to £2,230mln from £2,153.2mln driven by increases in used vehicles and aftersales.
The automotive retail and service group said first half trading had been strong despite OEM supply constraints on new vehicles and good progress against strategic priorities.
Profit performance was underpinned by material improvement in new vehicle gross profit margin.
Mark Raban, chief executive, said: “Whilst mindful of the pressures facing consumers, we are confident in our strategic direction and retain our expectations for the remainder of the year.”
6.55am: FTSE set to open lower
The FTSE 100 is seen opening lower, extending yesterday’s falls, following weak performances in the US on Tuesday and in Asia overnight.
Spread betting companies are calling the lead index down by around 10 points.
In the US, The Dow Jones Industrial Average closed Tuesday down 154 points, 0.5%, at 32,910, the Nasdaq Composite stayed nearly perfectly flat at 12,381 and the S&P 500 dipped 9 points, 0.2%, to 4,129.
The Dow and S&P are now both on three-day losing streaks after Monday was the benchmarks' worst session since June.
“This bear in our view has one last act,” Lisa Shalett, head of the global investment committee at Morgan Stanley Wealth Management, said in a note to clients, according to CNBC.
In London, results are due from Costain while US durable goods orders, US pending homes sales and US crude oil inventories data is due later today.