AUS
NZ
UK
CA
USA
IND
Highlights:
- Tesla and Alphabet Results Trigger Wall Street Selloff, Weigh on London Stocks
- FTSE 100 Down 0.8% as Centrica, Lloyds, and AstraZeneca Report Profit Declines
- Unilever and British American Tobacco Buck Trend with Positive Earnings Reports
London stocks fell in early trade on Thursday, mirroring a downbeat session on Wall Street where tech giants Tesla (NASDAQ:TSLA) and Alphabet (LSE:0RIH) came under significant pressure. Ipek Ozkardeskaya, senior analyst at Swissquote Bank, highlighted that disappointing results from Tesla and Alphabet led to a sharp selloff, with the S&P 500 experiencing its worst decline since December 2022, dropping 2.30%. The Nasdaq 100 tumbled 3.65%, falling below its 50-day moving average.
Tesla's shares plunged over 12% following an earnings miss and lack of updates on robotaxis, while Alphabet's shares dropped 5% due to concerns over increased AI spending. Alphabet's capital expenditures are projected to reach or exceed $24 billion, significantly higher than its five-year average, reflecting CEO Sundar Pichai's belief that underinvesting poses a greater risk than overinvesting. However, this strategy is not resonating well with investors.
At 0830 BST, the FTSE 100 was down 0.8% at 8,086.65 as investors sifted through a slew of corporate news.
Key Movers:
- Centrica: (LSE:CNA) Shares tumbled after the British Gas owner extended its share buyback program but reported a decline in first-half profits, describing the external environment as more "normalised." Adjusted operating profit fell to £1.04 billion from £2.08 billion, and pre-tax profit dropped to £1.1 billion from £2.07 billion. British Gas Energy's adjusted operating profit decreased to £159 million from £969 million.
- Rentokil (LSE:RTO)and Airtel Africa: Both companies saw their shares fall following results announcements.
- Lloyds Banking Group: Shares dropped as the bank reported a 14% decline in first-half profit to £3.32 billion, citing lower net interest income and higher operating expenses.
- AstraZeneca: (LSE:0A4J)Despite raising its full-year guidance and reporting an 18% increase in first-half revenue to $25.6 billion, shares lost ground.
- BT: (LSE:BT) The telecoms giant's shares were under pressure as it reiterated full-year targets but noted that revenues were held back by weaker performance in its business division.
- Centamin, CMC Markets, and ITV: Shares were weaker following their respective results announcements.
Gainers:
- Unilever: (LSE:ULVR) Shares rallied despite worse-than-expected second-quarter underlying sales.
- British American Tobacco: (LON:BATS)Shares gained as first-half profits exceeded analysts' expectations.
- Indivior: (LSE:INDV) Shares surged after announcing a $100 million share buyback program and reporting second-quarter results in line with updated guidance.
