Market volatility eclipsed by news reports

In mid-morning trading the FTSE 100 is up 30 points as reporting season sparks interest.

London skyline
Source: Bloomberg

In London, it seems the newsflow outweighs the volatility as the macro picture takes a backseat to corporate reporting. Scottish pension provider Standard Life has opened higher after posting a healthy set of first-half figures. Traders welcomed the rise in assets under management, operating profit and dividend. The stock is trading at £3.70, up 1.7% on the day.

Mining company Fresnillo has slipped into the red as a decline in costs and an increase in silver production has not been enough to offset the large drop in gold output; soft metal prices remain an issue for the miner. 

Credit Agricole has taken a hit on its position in Banco Espírito Santo. The French bank is higher on the day as dealers hope this is the last they will be hearing of the writedown.

InterContinental Hotels blamed political uncertainty in some of the regions it operates in for the drop in first-half profits. The good news is that booking pace is rising and the interim dividend has increased. 

In the US, we are expecting the Dow Jones to open unchanged at 16,559. American International Group climbed over 2% in after-hours trading following a 13% increase in second-quarter profits. 

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