Drinks, commodities and transport

The FTSE 100 confounded forecasts and nudged slightly higher in early trading. A fall was predicted after US markets declined sharply overnight following the latest FOMC statement, while Asian bourses were also lower this morning.

“Drinks giant Diageo’s (LSE:DGE) first half sales growth has been weighed down by foreign exchange headwinds,” says AJ Bell Investment Director Russ Mould.

“Sales growth in emerging markets was lower than forecast and the weakness of many currencies against sterling was only partially offset by the strengthening of the US dollar.

“Anglo American (LSE:AAL) jumped to the top of the blue chip index in early trading after it defied the slump in commodity prices and increased output in the fourth quarter. Anglo American’s total output was up 3% on a copper equivalent basis due principally to increases in nickel and metallurgical coal output.

“FirstGroup’s (LSE:FGP) shares were down after management lowered its outlook for operating profit in the current financial year. Third quarter revenues fell by 9.5% on a constant currency basis and progress on its transformation plans was mitigated by a challenging trading environment.”

Thursday 28 January 2016 

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