America
US stocks opened lower following a tough day in Europe that was dominated by Greece and its creditors.
The news dampened markets across Europe with the Cac 40 index in Paris shedding 25 points, 0.5%, and the Frankfurt-based Dax easing 44 points or 0.3%.
Back in the US, the Dow Jones opened 65 points or 0.3% lower while the Nasdaq and the S&P 500 recorded similar losses.
Twitter chief executive Dick Costolo shocked the market with the news he is stepping down on 1 July.
He announced the move late yesterday evening as the social media company struggles with its growth strategy.
The company said Chairman and co-founder Jack Dorsey will take over as interim chief executive. Shares rose 3% to 36.
Chicken-and-biscuit restaurant chain Bojangles said it earned an adjusted US$6.2mln in the first quarter, compared with earnings of US$5 million a year ago. Shares slipped 2.5% to US$25 despite the better-than-expected results.
LeapFrog Enterprises’ shares tumbled after the educational games company late Thursday posted a much wider-than-expected fourth-quarter loss and provided a downbeat outlook. Shares dropped almost 20% to US$1.6.
Meanwhile, back in the UK, the FTSE 100 was 30 points lower despite Royal Mail rising 12p to 560p on the closure of home deliveries by its rival Whistl.
Lunch
London’s blue chip stocks continued to move further into the red at lunch.
The FTSE 100 was 30 points, or 0.5%, lower at lunch amid concerns that Greece may be heading towards a debt default.
Another round of failed talks between Greece and the IMF has added to fears that the country will fail to pay the €1.6bn it owes to the IMF by the end of the month.
European Commission President Jean-Claude Juncker said today that the talks between Greece and its creditors will restart, but that it was up to Greece to make the next move.
The news dampened markets across Europe with the Cac 40 index in Paris shedding 25 points, 0.5%, and the Frankfurt-based Dax easing 44 points or 0.3%.
Back in the UK, supermarkets were lower after two days of good sessions after Sainsbury’s trading update earlier in the week.
Yesterday, credit agency Moody revealed a gloomy prediction of two more years of woe for the big four as discounters Aldi and Lidl become more powerful.
Tesco (LON;TSCO) fell 1.7p to 213p, Sainsbury’s (LON:SBRY) dipped 1.5% to 260p, while Morrisons (LON:MRW) was 1.4% lower at 179p.
On the other side of the index, Royal Mail (LON:RMG) was the best of the performers on the closure of home deliveries by rival Whistl. Shares rose 12p to 560p.
Away from the index, fashion clothing group Ted Baker (LON:TED) saw sales surge ahead in its latest quarter as customers in the US snapped up its new ranges. Shares climbed 1.6% to 2,860p.
Similarly, women's outfitters Bonmarché (LON:BON) said it was confident of its growth strategy after reporting a 55% increase in pre-tax profits in the year just gone. Shares jumped 7% to 289p.
It wasn’t all good news however as Bwin.Party Digital Entertainment (LON:BPTY) lost over 10% to 93p as it emerged two shareholders plan to issue 50mln shares in the FTSE250 gaming group.
The timing seems strange given that Bwin is currently the subject of a bidding war between smaller rival 888 Holdings and both GVC Holdings and Canada’s Amaya.
In small caps, Forte Energy (LON:FTE) shares boomed 25% higher to 0.1p as it updated on the situation with its Kuriskova uranium deposit in Slovakia.
On the other side, Trap Oil (LON:TRAP) was one of the biggest losers after the company said it did not know why shares rose yesterday.
Shares were on the rise in early deals, but, soon after the company released a statement reiterating it only had enough funding to last until July, shares eased 24% to 0.7p.
Meanwhile, AIM deal maker David Lenigas has now added stockbrokerage and financial services to his portfolio of businesses.
Settlement service provider Global Investment Strategy could be joining the London Stock Exchange after a reverse takeover offer from AIM-listed Octagonal (LON:OCT).
The combined company, which will become a financial services company, is to have a £11.2mln market capitalisation on admission to AIM, much higher than Octagonal’s current £3.3mln.
Octagonal, with which serial entrepreneur and Horse Hill driller David Lenigas has a major interest, will raise £1.7mln from a share placing.
Shares in Octagonal jumped 48% to 0.275p on the news.
Morning
Another round of failed talks between Greece and the IMF cast a shadow over markets in London.
FTSE 100 opened 26 points lower at 6,820 as Greece was told to stop gambling on its future by one EU leader.
Greece needs to pay the IMF €1.6bn by the end of the month, otherwise it risks default or having capital controls imposed or even an exit from the eurozone.
The country’s government apparently hopes a compromise can still be struck, but the gap between the two sides yesterday was said to be considerable.
UK company news was a little thin on the ground, with Royal Mail (LON:RMG) the best of the performers on the closure of home deliveries by rival Whistl. Shares rose 7p to 500p.
BT (LON:BT.A) also edged higher even though the telecoms regulator Ofcom told the network infrastructure owner it may control how much it charges on high speed business lines.
A consultation period has started, which will also consider how much BT can charge other operators to use its high speed network when it is opened up. BT shares rose 2.3p to 449p.
Supermarkets again featured among the fallers following yesterday’s gloomy prediction of two more years of woe from credit agency Moody’s as discounters Aldi and Lidl become more powerful.
Tesco (LON;TSCO) fell 1% to 213.5p, Sainsbury’s (LON:SBRY) dipped 2% to 258p, while Morrisons (LON:MRW) was 1.4% lower at 179p.
Among the small caps, investment company Octagonal (LON:OCT) shot up 50% as a concert party involving serial entrepreneur and Horse Hill driller David Lenigas took control.
Preview
Britain's blue chips are called to open lower on Friday after muted trading in Asia overnight and as Greek worries continue.
Yesterday, it emerged negotiators from the IMF had left talks in Brussels amid "major differences" as the saga rumbles on.
Bernard Aw, at IG Index, said the Greek index had commanded attention in the first half of this month.
"Greece has until the end of the month to hammer out a bailout package before the IMF debt repayment of €1.7 billion expires on Tuesday 30 June. However, given reports that the IMF is withdrawing from its most recent negotiations and that European officials adopting a tough line towards Greek antics, it is anybody’s guess how the bailout talks may end up," he said.
"Perhaps the Greek government should hold a snap referendum to decide if they should accept the latest bailout deal, since they seemed adverse to accept more austerity measures in any agreement. Meanwhile, the implication of a possible Greek default or a Grexit may not be adequately priced in the bond markets," he added.
FTSE100 closed yesterday up 17 at 6,847 as Greece news tempered gains but today is called to open around 21 points lower.
The benchmark Dow in the US added 39 points, while in Japan, the Nikkei 225 shed to points to 20,372 and the Shanghai Composite index in China is up 49 at the time of writing.
There is not much expected on the corporate front. Fashion chain Ted Baker is due to report a trading statement.