(Alliance News) - London's FTSE 100 is called to open higher on Wednesday, recovering some lost ground after a tentative start to the final week of the quarter.

Falls for US technology shares, as well as political uncertainty in France, have hung over equities so far this week.

Shares in chip making powerhouse Nvidia recovered on Tuesday, helping to lift sentiment, Swissquote analyst Ipek Ozkardeskaya commented.

"Nvidia selloff didn't deepen yesterday, on the contrary, the recent end-of-quarter / end-of-the-first-half pullback attracted dip buyers - if you can call it a dip yet - and Nvidia shares ended up jumping by almost 7% in a single session. Yesterday's jump will certainly help to cool the downside pressure and ease long squeeze worries for Nvidia, but the decent and rapid price pullback is a sign that we might see an increased volatility and two-sided price moves moving forward," Ozkardeskaya commented.

In early UK corporate news, Phoenix Group put its SunLife unit up for sale and has already received "initial expressions of interest". AO World said profit beat expectations.

Here is what you need to know at the London market open:

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MARKETS

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FTSE 100: called up 0.4% at 8,282.19

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Hang Seng: up 0.4% at 18,151.03

Nikkei 225: up 1.3% at 39,667.07

S&P/ASX 200: down 0.7% at 7,783.00

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DJIA: closed down 299.05 points, 0.8%, at 39,112.16

S&P 500: closed up 0.4% at 5,469.30

Nasdaq Composite: closed up 1.3% at 17,717.65

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EUR: flat at USD1.0703 (USD1.0705)

GBP: up at USD1.2684 (USD1.2676)

USD: up at JPY159.83 (JPY159.73)

GOLD: down at USD2,314.51 per ounce (USD2,324.50)

(Brent): down at USD84.69 a barrel (USD85.05)

(changes since previous London equities close)

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ECONOMICS

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Wednesday's key economic events still to come:

15:00 BST US new home sales

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The Westminster gambling row has deepened after a Cabinet minister revealed he had placed bets on the date of the UK general election. Scotland Secretary Alister Jack denied having broken any rules but said he put three wagers on the timing of the July 4 poll, becoming the latest of seven politicians and officials to get drawn in to the controversy. UK Prime Minister Rishi Sunak will face further pressure over the revelation, which comes after he caved to mounting calls from within the Tory Party to withdraw support for two parliamentary candidates facing a Gambling Commission investigation. Labour was also dragged into the row on Tuesday, with the party suspending its candidate Kevin Craig after it emerged he had bet that he would lose to the Tories in the contest for Central Suffolk & North Ipswich. Jack said he had in April put GBP20 at odds of 5 to 1 on an election being held between July and September, but that he had no knowledge of when it would be called until the day that Rishi Sunak fired the starting gun on May 22. It came after the BBC reported that he had told the broadcaster he made more than GBP2,000 from betting on the date, but later dismissed the comments as a "joke". In a statement released late on Tuesday, the minister said: "Following reports today I want to be absolutely clear I have not breached any gambling rules."

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Russian Minister of Defence Andrei Belousov and his US counterpart Lloyd Austin spoke by phone on Tuesday to discuss the ongoing conflict in Ukraine, Moscow's defence ministry said. "The Ministers exchanged views on the situation around Ukraine," the ministry said in a statement, noting the conversation took place "at the initiative of the American side". "Andrei Belousov pointed to the danger of further escalation of the situation in connection with the ongoing supply of US weapons to the Armed Forces of Ukraine," it continued. "Other issues were also discussed." The Pentagon also reported the phone call, saying in a statement that Austin had "emphasized the importance of maintaining lines of communication amid Russia's ongoing war against Ukraine". The statement said it was Austin's first call with Belousov, who was appointed to his post in May.

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BROKER RATING CHANGES

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Exane BNP raises Prudential to 'outperform' (neutral) - price target 890 (860) pence

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HSBC cuts Legal & General to 'hold' - price target 260 pence

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COMPANIES - FTSE 100

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Phoenix Group said it is exploring the sale of its SunLife business, deeming it "no longer core". The long-term savings and retirement products provider said it has received "initial expressions of interest from third parties". "Following a strategic review, the group has concluded that this business is no longer core to the delivery of its vision of becoming the UK's leading retirement savings and income business. The board has therefore decided to begin a sale process," Phoenix said. "However, there can be no certainty at this stage that a disposal will occur." SunLife, which provides financial protection products direct to over 50s, generated GBP16 million in post-tax profit last year.

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Anglo American said rough diamond sales by De Beers fell sharply due in part to a "quieter period" of trading over northern summer. The London-based miner said provisional rough diamond sales value for the fifth cycle of 2024 slumped 31% to USD315 million from USD456 million in the same cycle last year. Sales were down 18% compared to USD383 million in the fourth cycle of 2024. Cycle five provisional sales, which remain subject to adjustment, represent sales as of Tuesday. The fourth cycle took place between April 18 and May 22. "The northern summer is generally a quieter period for rough diamond sales, and this was reflected in our cycle 5 sales," De Beers Chief Executive Officer Al Cook said.

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COMPANIES - FTSE 250

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AO World reported an annual bottom-line beat, as a focus on "profit and cash generation" paid off, though revenue declined as expected. The electricals retailer said pretax profit in the year ended March 31 jumped to GBP34.3 million, from GBP7.6 million the year prior. Adjusted pretax profit also amounted to GBP34.3 million, surging from GBP12.0 million, and beating its guidance range of GBP28 million to GBP33 million. Revenue, meanwhile, fell 8.8% to GBP1.04 billion from GBP1.14 billion. It said the revenue outturn was expected, after it removed "non-core channels and loss-making sales". AO World noted revenue returned to growth in the fourth-quarter, meanwhile. Looking ahead, it said: "Despite the ongoing macro-economic challenges our objectives remain unchanged and we are confident in our ability to deliver on our ambition for double digit revenue growth in FY25." It targets adjusted pretax profit of GBP36 million to GBP41 million, at best a 20% rise on-year.

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PZ Cussons expects annual profit to land in line with guidance, though it noted an "adverse" currency movement it has suffered recently. The consumer goods company said trading in the final quarter ended May 31 was in line with management expectations. It expects to report annual revenue of around GBP528 million, despite suffering a 23% adverse movement in the value of the Nigerian naira compared to sterling since it reported on third-quarter trading in April. The revenue guidance represents a 20% decline from GBP656.3 million in financial 2023. Adjusted operating profit is expected to be in line with previous guidance, landing in the region of GBP55 million to GBP60 million, at best an 18% fall from GBP73.3 million.

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OTHER COMPANIES

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Liontrust Asset Management reported a full-year decline in assets under management and advice, as it grappled with sizeable outflows, though it has "started to see signs of a change in investor sentiment". The asset manager said assets under management and advice at its March 31 year-end amounted to GBP27.82 billion, down 11% from GBP31.43 billion 12 months earlier. Net outflows during the year totalled GBP6.08 billion. Chief Executive Officer John Ions said: "We have started to see signs of a change in investor sentiment and this is likely to move significantly when more central banks reduce interest rates and there is greater political and fiscal certainty in the UK. There is no doubt that the amount individuals are investing has been negatively impacted by the cost of living, the reductions in Covid savings and tax rises. With more stability will come greater recognition of valuation opportunities, especially in the UK stock market." Revenue in the year totalled GBP197.89 billion, falling 19% from GBP243.34 billion. It swung to a pretax loss of GBP579,000 from profit of GBP49.3 million. It maintained its second interim dividend at 50.0 pence per share, giving an unchanged total dividend of 72.0p per share.

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Workflow management software provider Checkit said it does not plan to make a takeover offer for software developer Crimson Tide. Checkit had made a GBP12 million approach earlier in June, but noted it had been "unequivocally rejected". Under the terms of that all-share proposal, Checkit would have offered 7 shares for every one held in Crimson Tide. It then made another approach, upping the ante to nine shares, though that was also rebuffed by Crimson Tide. Crimson Tide in June also disclosed it received a competing bid proposal from Ideagen. That cash bid valued Crimson Tide at around GBP21 million. Crimson Tide said it was considering the offer from Ideagen, a provider of software company specializing in regulatory compliance solutions.

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By Eric Cunha, Alliance News news editor

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