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FTSE 100 joins global equity rally and ends higher with miners helping

Last updated: 17:45 10 Apr 2018 BST, First published: 06:49 10 Apr 2018 BST

London skyline
  • FTSE 100 closes up 1%

  • Miners reverse Monday's losses and some

  • US stocks higher

  • Anglo American top riser

 

 

Big name miners bolstered FTSE 100 on Tuesday and the index closed 1%, or 72 points at 7,266.

FTSE 250 also did well, closing 191 points higher at 19,675.

It came as equity markets shot up across the board as traders’ fears eased after a speech by China’s president Xi Jinping, which was surprisingly conciliatory.

The Dow Jones is up over 367 points at the time of writing.

Fiona Cincotta, analyst at City Index, noted the speech didn't offer any tit-for-tat measure in response to the US tariffs on China’s imports.

"Instead, Xi spoke of increased cooperation with foreign financial markets and broadening market access to China’s banking, securities and insurance sectors," she said.

Top riser on Footsie was Anglo American plc (LON: AAL), which gained over 5% to 1,692p, while Antofagasta (LON: ANTO) also gained ground, up 4.52% to 952.80p.

On the losing front, utilities (defensive stocks) were hit with the UK’s largest water company United Utilities Group PLC (LON: UU.) was the worst hit, down 2.93% to 710p.

Severn Trent plc (LON: SVT) shed 2.14% to 1,855p.

 

3.30pm  FTSE 100 up 59 pts..

Shortly before market close, the FTSE 100 was up 0.8%, or 59.1 points, to 7,253.9, with the miners – as they have done all day – propping up the index.

The likes of Anglo American PLC (LON:AAL) (up 5% to £16.91), Antofagasta PLC (LON:ANTO) (up 4.2% to 950p) and BHP Billiton plc (LON:BLT) (up 3.5% to £14.33) have all been bolstered by comments made by China’s President earlier on today.

Xi Jinping pledged to cut import tariffs and open up China’s economy, in a move that was seen by many as easing trade tensions between the Asian powerhouse and the United States.

Troubled education company Pearson plc (LON:PSON) made a surprise entry towards the top of the leaderboard, up 3.3% to 770.2p.

Utilities were still out of favour as investors dump defensive stocks in favour of a more risk-on approach.

The UK’s largest water company United Utilities Group PLC (LON:UU.) was the worst hit, down 3.2% to 709p, while Centrica PLC (LON:CAN) lost 1.3% to 141.6p after its British Gas division announced another hike to its energy tariffs.

2.50pm: Musk to test upgraded Hyperloop

Elon Musk, the chief executive of Tesla Inc. (NASDAQ:TSLA) and SpaceX, is again tantalizing his investors with news of his almost implausible plans.

Over the weekend, Musk revealed via Twitter that his companies' upgraded Hyperloop transport pod will be subject to a test soon.

Half the speed of sound would be a speed of about 383.7 miles per hour.

The Hyperloop is Musk’s idea for whisking people from one city to another at bullet speeds. But even he admits that given the short length of the course, this test “could easily end up being shredded metal.”

Read more here.

2.35pm: US stocks open higher as trade tensions cool

US stocks have jumped at the opening bell over in New York as those fears over a trade war with China subside.

Chinese President Xi Jinping spoke this morning about opening up the country’s economy and promised to cut import tariffs, soothing concerns about rising trade tensions.

All three of the major indices opened up more than 1% higher: the Dow Jones is up 1.6% to 24,357.1; the Nasdaq has gained 1.2% to 7,025.6 and the S&P 500 is 1.2% in the black at 2,645.7.

1.50pm: Flowgroup sees two-thirds wiped from its value

Among the small caps, Flowgroup PLC (LON:FLOW) shares have taken a hammering after the company sold off its core energy supply business, Flow Energy Ltd, to rival Co-operative Energy Ltd.

Shares in the alternative energy group are down 65.4% at 0.03p in mid-afternoon trading on the back of the £9.25mln sale.

The company also agreed to sell its microCHP boiler technology and intellectual property to iGEN Technologies Inc for an upfront cash payment of C$25,000 (£14,000) with potential royalty payments of up to C$1.4mln (£789,000) upon successful commercialisation of the microCHP technology.

1.20pm: Mid-afternoon update

Even the pound bulls couldn’t derail the FTSE 100’s progress today.

Sterling is up against 0.3% against the dollar to US$1.418, a rise which would typically see the index fall back as it makes the blue chips’ overseas earnings – which account for almost three-quarters of their revenues – worth less when translated back into pounds.

But the FTSE 100 has brushed that off and is currently up 0.6%, or 42.6 points, to 7,237.3, buoyed by a resurgent mining sector.

The big-name miners dominate the index’s leaderboard, with Anglo American PLC (LON:AAL) (up 4.5% to £16.82), Antofagasta PLC (LON:ANTO) (up 3.7% to 945.2p) and BHP Billiton plc (LON:BLT) (up 3.2% to £14.30) making up the top three.

The sector took a pounding on Monday amid fears of a trade war between China and the US as well as the US-imposed sanctions on various Russian individuals and their companies.

But tensions seem to have eased today, with China’s leader Xi Jinping making comments which point to a more capitalist and globalist China – the implication being he has no intention of starting a trade war with Donald Trump.

On the flip side, utilities are down on Tuesday are the markets adopt a more risk on attitude and drop their defensive stocks.

The UK’s largest water company United Utilities Group PLC (LON:UU.) was the worst hit, down 2% to 716.6p, while Centrica PLC (LON:CAN) lost 0.9% to 142.3p after its British Gas division announced another hike to its energy tariffs.

12.30pm: Iceland to stop using palm oil in its products

Iceland has become the first UK supermarket to stop using palm oil after it pledged to ditch the controversial food product from its own-brand products by the end of the year.

The frozen food specialist said it has developed new recipes for its products without palm oil which is used in more than half of its products, from biscuits to soap.

Iceland boss Richard Walker said the company had been alerted to the environmental challenges posed by palm oil production by Greenpeace and said there is “no such thing” as properly sustainable palm oil.

“Until such a time as there is genuinely sustainable palm oil that contains zero deforestation, we are saying no to palm oil,” he said in an interview with the BBC.

Palm oil is claimed by campaigners to be responsible for half of the world’s deforestation between 1990 and 2008, while producers often burn large areas of forest to make space for new palm plantations.

Some nutritionists also say eating palm oil is unhealthy because it is high in saturated fat.

11.55am: Sterling pops on hawkish BoE comments

Sterling headed back up towards its post-Brexit highs of US$1.42 on Tuesday Morning, after hawkish comments from one of the Bank of England’s top policymakers.

Ian McAfferty told Reuters that the BoE “shouldn’t dally” when it comes to raising interest rates again, pointing to the possibility of faster wage growth and a strengthening world economy.

The BoE hiked rates for the first time in more than a decade back in November in a bid to control inflation, which has been above the target ever since the EU referendum.

In February, it said it may need to raise rates again earlier than expected and by more than it had previously signalled, pushing up the value of sterling. At the moment, analysts reckon there is about a 60% chance of another hike in May.

Shortly before midday, the pound was up 0.2% against both the dollar and euro to US$1.416 and €1.149, respectively.

11.35am: Evening Standard editor tweets...

11.15am: Regulators to keep closer eye on auditors

The auditing firms that approve the accounts of some of the UK’s largest companies will now come under greater scrutiny when they appoint their top brass

The likes of KPMG, Deloitte and PricewaterhouseCoopers will have their senior appointments vetted by the Financial Reporting Council in a bid to restore public confidence in auditors.

Their effectiveness has been called into question in recent months after a string of failures at major companies, including doomed construction services giant Carillion.

10.50am: EU court gives France greenlight to go after Uber

A top EU court has ruled that France can bring criminal proceedings against ride-hailing app Uber for allegedly running an illegal taxi service.

“Member states may prohibit and punish, as a matter of criminal law, the illegal exercise of transport activities in the context of the UberPOP service, without notifying the Commission in advance of the draft legislation,” read a ruling from the Court of Justice of the European Union.

Uber had argued that French prosecutors should have sought the European Commission’s approval of its proposed taxi, which it didn’t do, and that the criminal charges brought against were not valid.

It is the latest setback for the Silicon Valley firm, which is currently contesting a decision by Transport for London to not renew its operating licence in the city.

10.25am: Miners bounce back 

A rebound in the mining sector on Tuesday Morning helped to propel the FTSE 100 comfortably past the 7,200 mark.

Shortly after 10am, the index of blue-chip shares was up 0.3%, or 23.8 points, to 7,218.6.

Positive comments from China's leader

Amid a raft of geopolitical tensions – notably the US-imposed sanctions on Russia and the threat of a US-China trade war – the big-name miners took some heavy blows on Monday.

But bullish comments from China’s leader Xi Jinping about opening up his country’s economy eased fears of a trade war between the two superpowers, while the dust has started to settle between the US and Russia.

Indeed, the top six gainers on the FTSE 100 were all miners, with Anglo American PLC (LON:AAL) (up 3.4% to £16.64), Antofagasta PLC (LON:ANTO) (up 2.9% to 936.4p) and Evraz plc (LON:EVR) (up 2.7% to 396.3p) leading the way.

Burberry was also in demand after its rival LVMH – which owns the Gucci and Louis Vuitton brands among others – reported better-than-expected first-quarter sales thanks to strong demand for luxury goods in China.

Shares in the tartan trench coat maker were up 1.9% to £17.22 – the next best after the miners.

Utilties punished

The risk-on mentality that seems to be with the market this morning is weighing on utilities companies, which are generally seen as defensive stocks to be bought when the markets are heading lower.

The UK’s largest listed water company, United Utilities Group PLC (LON:UU.), was down 1.2% to 722.8p, while its peer, Severn Trent PLC (LON:SVT), dropped 1.4% to £18.69. It wasn’t much better for National Grid PLC (LON:NG.) which dropped 1.1% to 824.6p.

Fellow utility Centrica was also nursing some minor losses – down 0.1% to 143.4p – after British Gas announced it would hike the price of its standard variable tariff by £60 to £1,161.

9.30am: FTSE 100 off to strong start as trade war fears ease

The FTSE 100 made a strong start, adding 37 points to 7,231.60, as the rhetoric took a softer tone in what looked last week to be morphing into a Sino-American trade war.

Investors in Asia took heart from comments of China’s Xi Jinping, which followed on from President Trump’s more conciliatory Tweets over weekend.

“Stocks [are] rallying on a speech by President Xi which, despite offering no new concessions, it did reiterate talk of a more open economy and reduced import tariffs on autos,” said Mike van Dulken of Accendo Markets.

“Investors took this as an effort to calm the US-China war of words on trade - Trump having had the latest rant - boosting hopes of a balanced outcome that avoids disruption to global growth.”

The prospect of a truce between the world’s two leading economies gave a boost to miners with Anglo America (LON:AAL) leading the pack with a 2.9% gain.

Not far behind were Rio Tinto (LON:RIO), Glencore (LON:GLEN) BHP Billiton (LON:BLT) and Antofagasta (LON:ANTO).

Stepping down a division to the FTSE 250, the market was impressed by results from Card Factory (LON:CARD) with the shares marked up 5% in early trade.

Proactive news headlines:

Galileo Resources PLC (LON:GLR) has returned exceptionally high zinc grades from drilling on its 85%-owned Star zinc project. Chief executive Colin Bird called the results "very pleasing" and stated that a further expansion of the resource is now on the cards.

ValiRx Plc’s (LON:VAL) two lead cancer compounds are at stages in their development that they “offer potential investors an investable proposition and an attractive offering to joint venture partners", according to the company’s chairman, Oliver de Giorgio-Miller.

Energy storage and clean fuel company ITM Power plc (LON:ITM) is to help the Metropolitan Police with the roll out of its new fleet of zero-emission vehicles after it signed a signed a fuel contract with the UK’s largest police force. The tie-up will see ITM supply hydrogen to the Met Police’s new fleet of fuel cell electric vehicles (FCEVs).

Symphony Environmental Technologies plc (LON:SYM) has welcomed news that the authorities in the Pakistani province of Sindh are to enforce The Sindh Environmental Protection Act, which mandates that all plastic produced or imported must be biodegradable.

PowerHouse Energy Group PLC (LON:PHE) has bolstered its executive team with the appointment of Bruce Nicholson as Commercial Operations Manager. The AIM-listed technology company pioneering hydrogen production from waste plastic and end-of-life tyres said Nicholson brings “a proven track record of delivering complex energy projects, which he has built up during 30 years of project management, asset management and business development.”

Hurricane Energy PLC (LON:HUR) has reported on its ‘transformative’ 2017, highlighting that in the year the Lancaster oil field moved into the project execution phase. The project timeline puts Lancaster on course for ‘first oil’ in the first half of 2019.

Belvoir Lettings PLC (LON:BLV) posted record profits and healthy revenue growth.in 2017 as it shrugged off the effects of a sluggish housing market. Other estate agents, notably Countrywide and Foxtons, have struggled with the sluggish house sales market and inroads into the market by online agents such as Purplebricks.

.Myanmar-language social media, entertainment and payments group MySQUAR Limited (LON:MYSQ) has kicked off the search for a new chief financial officer after Pham Dang Hung announced he was stepping down from the role.

Motif Bio Plc (LON:MTFB) is gearing up for the commercial launch of its next-generation antibiotic following a landmark period for the company. Motif has successfully concluded a second phase III clinical trial on its lead drug, iclaprimm and is preparing for regulatory sign-off in America and Europe.

Genedrive PLC (LON:GDR) said analytical performance and field studies of its Hepatitis C (HCV) ID Kit have been published in BMJ Gut, a leading international journal in gastroenterology and hepatology.

Collagen Solutions PLC (LON:COS) has appointed Louis T. Ruggiero as its chief business officer with effect from 16 April 2018.The AIM-listed firm said it has recently completed a comprehensive business review with the help of Ruggiero, including a review of the company’s commercial operations and organisation.

Braveheart Investment Group PLC (LON:BRH) said one of its strategic investments, Gyrometric Systems, received a cash injection of £250,000 on Tuesday from Strat Aero PLC. As a result of the fund-raising, Strat Aero now holds a 37% stake in Gyrometric while Braveheart’s stake has been reduced to 41% as a result of the issue of new shares.

Chaarat Gold Holdings Ltd (LON:CGH) has reaffirmed its strategy of becoming a mid-tier gold producer focussed on Central Asia and the Former Soviet Union, but has now added a commitment to M&A into the mix. A new director, Artem Volynets, has been appointed to oversee the M&A side.

Strategic Minerals Plc (LON:SML) has completed the acquisition of the Leigh Creek copper project with the issuance of shares to vendor RML. Strategic's director John Peters said it was "very exciting" now to be contemplating restarting mining at the project.

Tharisa PLC (LON:THS) updated investors on its second-quarter production performance, which included above target platinum recovery. Platinum group metal (PGM) recoveries measured 82.2% for the three month period, ended March 31, compared to a target of 80% and the company produced some 38,200 ounces of PGMs.

Tower Resources PLC (LON:TRP) has hired consultant Oilfield International Ltd for an assessment of the reserves potential at the Thali licence in Cameroon. It follows a competitive tender process and the assessment will look at Tower's work on the Thali license to date, in addition to historical well data and regional datasets. Pending reprocessed 3D seismic data will also be used in the process.

Premier African Minerals Ltd (LON:PREM) has appointed experienced geologist Wolfgang Hampel to the board, following the departure of industry veteran John Stalker, who is seeking to reduce his work load. Hampel has been head of Premier African's exploration programme in Zimbabwe since 2014, and was formerly chief operating officer of Tantalus Rare Earths AG.

6.45am: Positive start predicted

The FTSE 100 is expected to start Tuesday positively as the latest instalment in the global trade drama saw Asian markets rise.

Quotes from China’s Xi Jinping were encouraging for regional investor, and suggested a flexibility in the eyes of international investors.

CMC analyst Michael Hewson said: “Pledges to open up China’s economy and lower import tariffs, while nothing particularly new, sent Asia markets higher and are likely to translate into a positive European open this morning.

“Whether they translate into anything other than words is another story but for now they appear to signal a willingness for China to move forward the discussions on trade with the US.”

US markets had already found some support from an apparent easing in President Trump’s tone towards China over the weekend.

The Dow Jones closed Monday’s trading up 46 points or 0.19% to 23, 979 while the S&P 500 moved up 0.33% to 2,613 and the Nasdaq climbed 0.51% to 6,950.

In Asia, Japan’s Nikkei advanced 112 points or 0.5% to 21,791. Hong Kong’s Hang Seng, meanwhile, rose 411 points or 1.36% to 30,641 and the Shanghai Composite gained 0.55% to 3,155.

Australia’s ASX 200 added 47 points or 0.82% to 5,856.

London’s FTSE 100 is also seen higher. CFD and spreadbetting firm IG Markets reckons the it will rise around 45 points, as it is calling the benchmark at 7,234 to 7,238 with just over an to go until the open.

Around the markets:

Sterling: US$1.4131, unchanged

Gold: US$1,332.38 an ounce, down 0.29%

Brent crude: US$69.04 a barrel, up 2.8%

Bitcoin: US$6,757, down 0.25%

Headlines

Aluminium rallies as US sanctions upend market - Financial Times

FCA sets aside £30m to smooth out Brexit process for City banks - The Guardian

Late-payers to be banned from government contracts following Carillion collapse - City A.M.

Bayer reaches deal with US for approval to buy Monsanto – Reuters

FDA orders Bayer to implement additional safety measures on Essure contraception device - CNBC

Apple says it's now powered by 100 percent renewable energy worldwide -The Verge

Over 20 advocacy groups complain to FTC that YouTube is violating children's privacy law – TechCrunch

Agenda for Tuesday April 10:

Trading update: Robert Walters PLC (LON:RWA)

Finals: Belvoir Lettings PLC (LON:BLV), Card Factory PLC (LON:CARD), Eddie Stobart Logistics PLC (LON:ESL), Hostelworld Group PLC (LON:HSW), Hydrogen Group PLC (LON:HYDG), LiDCO Group plc (LON:LID), MP Evans Group PLC (LON:MPE), Serica Energy PLC (LON:SQZ), Mission Marketing Group PLC (LON:TMMG), Property Franchise Group PLC (LON:TPFG)

Interims: Nanoco Group PLC (LON:NANO)

Economic data: US forward PPI

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