London open: Stocks fall back as euro saga drags on

29th Sep 2011 08:24

Stocks have fallen back in early dealings amid continuing edginess over the Eurozone crisis.All eyes are on the German Bundestag as lawmakers vote on an expansion of the Eurozone bailout fund. Sweeteners group Tate & Lyle is in demand after saying it expects to perform in line with expectations over the full year after a strong performance in the six months to 30 September. In the speciality food ingredients division, corn-based speciality sweetener and starch volumes grew in line with the market, the firm said.The share price of Imperial Tobacco has been lit up by bid rumours.Outsourcing giant Capita Group has won a contract with The Pensions Regulator to support the regulator's direct communications with employers for automatic enrolment of staff into workplace pension schemes which will be phased in from October 2012. The seven-year contract has an option for the regulator to extend it for a further three years and has an estimated value of £105 million. Struggling package tour firm Thomas Cook said summer booking trends in its key markets have remained largely in line with expectations since it last updated the market at the beginning of August, but September has "been a more challenging month," especially for its French business. Underlying operating profit is expected to be broadly in line with market expectations. The company said it is suspending future dividend payments as it seeks to rebuild its balance sheet.Inter-dealer broker ICAP said revenue in the first half of its financial year was marginally ahead of the corresponding period of last year, giving it no cause to amend full-year expectations outlined at the time of his Annual General Meeting in July. Market traders might as well buckle up and prepare for a bumpy ride for the rest of the year if Michael Spencer, ICAP's group chief executive, is correct, as he predicts the recent high levels of volatility in financial markets will continue for the rest of the year. Compass said it put in "another good performance" in the fourth quarter of the financial year, with organic revenue growth expected to exceed 4%, though the catering giant has seen some pressure on volumes recently. Over the full year, Compass expects total revenue growth of 9%, or about 5% on an organic basis. Rail and bus company FirstGroup said overall trading during the first half of the current financial year has been in line with management's expectations. In its UK Bus division like-for-like passenger revenue for the six months to 30 September 2011 is expected to increase by 1.2% and its continues to deliver some improvement to operating margin.