UK shares falter as Travis Perkins slumps on outlook

UK shares dipped on Thursday after a disappointing earnings updates from Travis Perkins and Anglo American.

Travis Perkins, the owner of DIY stores Wickes and heating supplies group BSS, was the biggest FTSE faller, down 6.2 per cent after saying that its full-year earnings would be at the lower end of market expectations.

Investors were wary ahead of a European Central Bank meeting in Malta at which it is expected to send a strong message reinforcing its readiness to boost monetary stimulus if needed.

“My sense is (the ECB is) probably not going to do anything, but ... just in case they throw a curve-ball, people are holding back on any positions until we’re through it,” CMC Markets analyst Jasper Lawler said.

Britain’s benchmark FTSE 100 was down 8.63 points, or 0.1 per cent at 6,339.79 points in mid-morning trading, underperforming most European indexes, but still up 4.6 per cent in October.

European shares were steady, with solid earnings from drugmaker Roche supporting markets, while investors eyed a European Central Bank meeting later in the day for signs of more monetary support.

Both the pan-European FTSEurofirst 300 index and the euro zone’s blue-chip Euro STOXX 50 index were flat ahead of the ECB meeting.

The euro zone’s central bank is likely to keep the door open for more monetary stimulus but stop short of taking new policy steps at its meeting on Thursday, as it awaits fresh indications of the outlook for inflation in the bloc.

“Today we can expect trade to be choppy ahead of the ECB. But the fact that European shares are flat to slightly positive after declines at Wall Street overnight reflects a recovery of sentiment,” Anthilia Capital Partners fund manager Giuseppe Sersale said.

- Reuters