London stocks were expected to fall at the start of trading on Thursday following the disappointing results. tesla ahead of interest rate announcements by the European Central Bank and US GDP data.
The FTSE 100 opened 19 points lower at 7,508.
CMC market Analyst Michael Hewson said: “The focus today for European markets, which started slightly lower, was on the ECB and Christine Lagarde's press conference shortly after, apart from questions about the timeline on possible interest rate policy. , Ms. Lagarde may face some questions.'' “She is inching closer to achieving her goal, even as ECB officials complain about her leadership style,” she said.
He added: “The market is currently seeing four ECB rate cuts in 25bps increments since June this year, but given the data, a rate cut could happen in April.”
“This is in contrast to markets pricing in up to six interest rate cuts by the Federal Reserve, even though the US economy is much stronger than Europe's.
“The ECB's main refinancing rate is currently 4.5% and is not expected to change today, but the fourth quarter GDP to be announced next week and the January CPI to be announced on February 1st will be Calls for a monthly rate cut could start to grow louder in the coming weeks, especially since the PPI has been deflationary for the past six months.”
The ECB interest rate announcement is scheduled for 1315 GMT. Investors were also focused on fourth-quarter U.S. gross domestic product (GDP) statistics and the number of new U.S. unemployment insurance claims as of 1:30 p.m. Japan time.
In corporate news, boot manufacturers Dr. Martens The company has left its full-year outlook unchanged after third-quarter sales fell by one-fifth due to poor performance in the U.S. and wholesale channels.
The company issued a profit warning in November, with sales down 21% to £267m in the last three months of 2023.
“Trading was volatile in the quarter, but in line with broader industry trends, December results were calm.While the consumer environment remains challenging, we continue to grow our iconic brands and continue to grow our “We continue to have confidence in our business as we develop our product pipeline for Fall/Winter 2024 and beyond,” said Chief Executive Officer Kenny Wilson. he said.
“Our guidance for full-year constant currency revenue to decline by a low single-digit percentage year over year remains unchanged. All other guidance for 2024 remains unchanged.”
Dr Martens added that the strength of the pound since the end of the first half would result in a foreign exchange headwind of £5m if current exchange rates continue, and non-cash balance sheet translation costs of around £5m.
consumer health group Haleonthe company behind Sensodyne toothpaste, Panadol and Advil painkillers, announced it would sell its Chapstick brand for $430 million.
The sale to Swerve Brands Company, a portfolio company of Yellow Wood Partners, will also give Haleon a “passive minority interest” in the acquired entity.
Haleon Chief Executive Officer Brian McNamara said Chapstick was no longer a “core focus” for the company and that the sale was “an opportunity for Haleon to be proactive in managing our portfolio and to is consistent with maintaining strictness and discipline.”