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UK stock market morning note (January 15, 2013)

The FTSE 100 is called to open flat to slightly lower this morning with little direction provided by the performances on Wall Street and in Asia following comments from US Federal Reserve Chairman, Ben Bernanke. Overnight we had domestic economic news from the RICS reporting that the UK house price balance in December came in at 0, its best month since June 2010. Today's economic diary sees the release of UK inflation data and then at lunchtime in the US, retail sales, producer prices and the Empire State manufacturing index. Commodity prices are mixed in trading and on the foreign exchanges, the euro is lower against the dollar.

Company Announcements

HMV Group Suspension of Trading. Confirmation of last night's news that it proposes to appoint administrators and once in place it is the latter's intention to continue to trade whilst a purchaser of the business is sought. The shares have been suspended with immediate effect.

IG Group Interim Results saw net trading revenue down 14% at GBP168.9m with PBT 21% lower at GBP81.1m. The dividend is maintained at 5.75p a share. It added that market conditions have been challenging with low market volatility and fragile consumer sentiment and since the year end, aside from the Christmas and New Year period, it has seen similar conditions. If the latter persist, revenue for H2 is likely to be in line with H1, but noted that it remains confident in its long term growth prospects.

Burberry Q3 Trading Update & IMS reports that in the 3 months to end December 2012, total revenue rose 9% on an underlying basis to GBP613m with underlying retail revenue ahead 13% at GBP464m. Comparable store sales increased 6% but wholesale underlying revenue was 5% lower. In H2 the latter is now expected to be down by a low to mid single-digit percentage year-on-year. Growth in the US, Asia Travel Retail and Emerging Markets more than offset by a weaker Europe. It added that it expects the external global environment to remain challenging but sees continued opportunities.

Ocado Trading Statement reports that gross sales for the 6 trading weeks to 6 January 2013 were up 14.2% at GBP91.6m with customer orders ahead 11.4%. It noted that its second fulfilment centre opening remains on track.