Home / Business / UPDATE 1-FTSE 100 led higher by Burberry; profit alert hits A.G.Barr – Agricultural Commodities

UPDATE 1-FTSE 100 led higher by Burberry; profit alert hits A.G.Barr – Agricultural Commodities

* FTSE 100 up 0.3%, FTSE 250 flat

* Investors await US retail sales data

* Burberry near one-year high after upbeat first-quarter update

* Airlines up as 737 MAX delays expected to over-capacity

* AGBarr tanks after profit warning (Adds news items, analyst comments, updates share prices)

By Shashwat Awasthi

July 16 (Reuters) – London's main stock index on Tuesday, helped by a surge in Burberry after its first-quarter update showed new designs were boosting sales. Weaker sterling helped exporter stocks.

The FTSE 100 added 0.3% and the mid-cap FTSE 250 was little changed by 0805 GMT.

Burberry jumped nearly 8%, putting it up for a better-than-expected first-quarter comparable store and affirming its annual forecast.

"The big question facing Burberry has come to a great extent." Not so much, it seems, "Markets.com analyst Neil Wilson said, as the company's revenue growth in China and across Asia improved.

Airline stocks climbed after Ryanair said deliveries of Boeing's 737 MAX plans may be delayed, raising the prospects of over-capacity in Europe.

"It's just that reduced capacity is what's required for the industry ̵

1; which should be supportive of margins," Wilson said.

Shares of Europe's largest budget carrier, which is its prediction for growth in traveler numbers next summer, rose 1.1%. British Airways owner IAG gained 1% and mid-cap easyJet added 2%.

A.G.Barr tumbled almost 30% on the mid-cap index and what on track for its worst day ever, after the Irn-Bru maker warned that it would be 20% compared with last year. Soft-drink makers Fevertree and Britvic fell 2.5% each.

Boris Johnson wants to become Britain's next Prime Minister and earlier on the Bank of England would cut interest rates. Companies that book much of their revenue in dollars, search as BAT, benefited as a result.

Investors also eyed U.S. retail sales data and more corporate earnings reports to assess the health of the world's largest economy and the outlook for rate cuts by major central banks.

Education company Pearson advanced 2.8% after saying it would break from the conventional and more expensive textbook publishing model and release. college textbooks in digital form first.

The proposed change in Britain's insurer has come to a prediction for 2019, sending its shares nearly 5% lower. (Reporting by Shashwat Awasthi, additional reporting by Muvija M and Yadarisa Shabong in Bengaluru, edited by Arun Koyyur, Larry King)

Source link