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FTSE climbs as strong bank results forecast
02 August 2010
The FTSE 100 opened higher, up 0.86% or 45.31 points to 5,303.33, as the UK’s biggest banks prepare to announce their half-year results. HSBC is expected to report a 60% rise in first-half profits this morning, while the big five banks should collectively report interim profits of around £8.4bn over the course of this week. Meanwhile, companies which have already given earnings updates today provide a mixed picture. Developer Hammerson advanced 2.09% to 396.50p after posting a 7% rise in half year profits to £70.2m. Intertek Group is the biggest riser, up 4.12% to £16.42, as pre-tax profit grew 3.3% to £97.3m for the first six months. In contrast, Randgold Resources fell 1.31% to £56.55 after revising production guidance for one of its gold mines downwards. On Wall Street, the Dow Jones was unchanged as good corporate earnings were dampened by lackluster economic news. The index dipped 0.01% to 10,465.94 after the Government's gross domestic product report showed economic growth to be slowing. In Japan, the Nikkei 225 rose 0.41% or 38.93 points to 9,576.23, boosted by strong earnings reports. Honda Motor Co climbed 4.02% to ¥2,818.00 after last week posting its best quarterly operating profit in more than two years. Published by IFAonline
