London close
Encouraged by a strong showing on Wall Street, UK blue chips shrugged off their morning lethargy to push the Footsie into positive territory.
The FTSE 100 closed up 27 point at 6,708, with miners leading the advance, as the dollar ebbed following yesterday’s Fed meeting, thus making commodities more affordable.
Outside of the Footsie, discount retailer Poundland (LON:PLND) shed 11p at 300p despite racking up record sales last year. It warned that first half results this year will be ‘relatively subdued’.
Gaming software group Playtech (LON:PTEC) was off 7p at 801p after announcing a placing to raise £250mln to fund acquisitions including online trading platform Plus500.
House builder Berkeley Group (LON:BKG) fell a quid to 3,376p as Liberum Capital downgraded the stock to 'hold' after results on Wednesday, saying the shares had hit fair value.
Elsewhere, investors in Egdon Resources (LON:EDR) emerged as the happiest of the stake holders in the onshore Wressle discovery well in Lincolnshire, where production testing has begun.
Egdon’s shares rose 9.1% to 15p, comfortably outperforming the other stake holders, namely Europa Oil & Gas (LON:EOG) and Union Jack Oil (LON:UJO).
Similarly, Stellar Resources (LON:STG), up 9.5%, outdid the other participants in the Horse Hill project near Gatwick Airport in East Sussex, where an independent consultant has suggested that the find may contain more than 9.2bn barrels of oil.
Investors in other Horse Hill plays Solo Oil (LON:SOLO), Doriemus (LON:DOR) and Evocutis (LON:EVO) looked on in envy at Stellar’s performance.
The shares in OptiBiotix (LON:OPTI) paused for breath today, weakening to 2% to 39.45p; that said, they have almost doubled in value so far this year as investors have tuned into the potential of the human microbiome.
What we are beginning to learn is this eco-system - a microbial genome if you will - affects immunity, cognitive heath and the metabolism.
According to Stephen O’Hara, founder and chief executive of OptiBiotix, it is far easier to influence than the human genome. His company is developing three nutritional supplements that will use the human biome to treat cholesterol and tackle obesity.
Across in the States another pioneer in the field announced plans for a US$100mln NASDAQ listing.
Seres Therapeutics caused a stir when its microbiome-focused drug SER-109 prevented C.difficile in 29 out of 30 patients.
The infection is one of the new super-bugs that has become resistant to traditional antibiotics.
O’Hara told Proactive Investors: “The impending IPO of Seres Therapeutics is great news for the industry and highlights the potential for modulating the human microbiome to improve human health.
“Seres Therapeutics’ Microbiome Therapeutics Platform has many commonalities with OptiBiotix’s Optiscreen platform in identifying microbes which can effectively engage with the microbiome of disease and shift it to one of health.
“Whilst OptiBiotix’s Optiscreen platform is currently being used to create nutritional supplements it has been developed as a pharmaceutical platform to optimise future potential opportunities.
“We wish Seres Therapeutics all the best in their forthcoming IPO and welcome them to the public markets.”
Finally, a mutter from the gutter suggested that Workspace (LON:WKP) is mulling a 150p per share offer for property group Quintain Estates & Development (LON:QED), which finished the day down 0.75p to 105.75p.
US open
US markets have added to yesterday’s gains, with investors happy to pile in on the back of comments from the US Federal Reserve yesterday.
The statement from the Federal Open Market Committee (FOMC) was described as “cautiously hawkish” by Mike van Dulken, head of Research at contracts for difference (CFD) trading platform Accendo Markets.
Meanwhile, Richard de Meo, managing director at forex firm Foenix Partners, said: “A clear bearish tone to the FOMC statement justifies the resulting US equity rally and dollar weakness, but as there has been no change to the timing of the first rate hike and no impact on the median forecast for what the Fed Funds Rate will be at year-end, (still 0.625%), it ensures the US outlook and dollar prospects are not significantly dented.”
The Dow Jones average is up 161 at 18,097, the S&P 500 is up 15 at 2,117 and the Nasdaq Composite is 52 points firmer at 6,117, suggesting US investors are in the mood at present to overlook the ongoing situation in Greece, where the posturing continues unabated.
Jobless data added to the feel-good mood, with weekly first-time jobless claims easing by 12,000 to 267,000 last week, meaning claims remain close to a 15-year low.
Market debutant Fitbit, the wearable health monitoring devices firm, got off to a flying start, rising to US$30 after being floated at US$20.
Elsewhere in the tech sector, database software giant Oracle is sharply lower after figures released after the bell yesterday revealed a fall in post-tax profits to US$2.78bn in its fiscal fourth quarter from US$3.6bn a year earlier.
Drug store chain Rite Aid is under the weather after reporting like-for-like sales growth; the company lowered its outlook for the full year.
On the upside, gun maker Smith & Wesson does not seem to be suffering on the day when another horrific murder spree (in Charleston) is dominating the headlines. The company’s first quarter earnings were down 54% year-on-year but the company raised its outlook for the year, prompting a rise in the shares.
In the UK, the Footsie is nursing a five point gain at 6,686.
Lunchtime report
Uncertainty over the stalemate between Greece and its international creditors left the London market in negative territory on Thursday.
The FTSE 100 Index lost more than 50 points during the morning but regained its composure to stand 8 points adrift at 6672 in early afternoon trading.
Traders stayed largely on the sidelines in the absence of any firm news on the stand-off between Athens and the IMF, the European Central Bank and Brussels.
German chancellor Angela Merkel voiced hopes that a deal could still be struck before the deadline for Greece to make the latest instalment of its debt repayments, but markets remained unimpressed by reports that the ECB and European Commission were drafting a statement on the issue of Greek debt relief.
A slightly better-than-expected retail sales figure in the UK also failed to lift spirits.
Connor Campbell at spread betting firm Spreadex said: "The FTSE has already grazed fresh five-month lows this morning, a situation that could worsen as the day goes on."
The Dow Jones ended Wednesday around 30 points higher at 17,935, while the S&P 500 and Nasdaq each moved around 0.2% higher to 2,100 and 5,064 respectively.
In the key commodities markets Brent crude was priced just below US$64, while WTI was just under US$60. At US$1,197 per ounce the gold price was up just under 2%.
On the equity markets, Poundland (LON:PLND) was 9.8p down at 301.3p after the discount retailer racked up record sales but warned that first half results this year will be ‘relatively subdued’.
Gaming software group Playtech (LON:PTEC) was off 12.5p at 795.5p after announcing a placing to raise £250mln to fund acquisitions, including online trading platform Plus500.
House builder Berkeley Group (LON:BKG) fell 61p to 3,420p as Liberum Capital downgraded the stock to 'hold' after results on Wednesday, saying the shares had hit fair value.
Model railway maker Hornby (LON:HRN) chugged 5.12p lower to 94p after it said it was moving to the AIM market and raising £15mln in a placing.
Personal health monitoring group Fitbug (LON:FITB) ticked up 0.05p to 4.62p as it announced an agreement with in-flight retail specialist, Scorpio Worldwide, to include a Fitbug/Kiqplan product bundle within its range of products promoted to major airlines.
Self-storage group Safestore advanced 2p to 279.25p after reporting a modest rise in half-year profits on the back of better economic conditions in the UK and France.
Elsewhere, investors in oil explorers involved in the Horse Hill project near Gatwick Airport in East Sussex gave a mixed reaction to news that the find may contain more than 9.2bn barrels of oil.
Shares in Horse Hill stakeholders Solo Oil (LON:SOLO) fell 0.01p to 0.5p, while shares in Doriemus (LON:DOR), Stellar Resources (LON:STG) and Evocutis (LON:EVO) were flat.
There was also a varied response from investors in Europa Oil & Gas (LON:EOG), Egdon Resources (LON:EDR) and Union Jack Oil (LON:UJO) to news that production testing had begun at the onshore Wressle discovery well in Lincolnshire. Europa's stock dropped 0.25p to 7.88p, but Egdon's shares jumped 1.38p to 15.12p and UJO's shares were flat at 0.21p.
News that Haydale (LON:HAYD) had landed a deal to supply its reactor to an organisation looking to commercialise graphene boosted its shares by 3.5p to 128.5p.
Investors dumped shares in Sirius Minerals (LON:SXX), sending them lower by 3.5p to 18p after planning officials said the potash miner had underestimated the environmental damage its York Potash mine project might cause in the North York Moors National Park.
MOST FOLLOWED
The Greek debacle, UK retail sales, and Poundland (LON:PLND) were among the eclectic mix of news topics hitting investors webside today.
Meanwhile, FTSE100 continues its slide as investors survey the macro scene and say "no thanks".
The eagerly anticipated Fed meet, which concluded last night, had little in the way of a shock factor.
As widely speculated, the central bank signalled it was on track for a rate rise as early as September as the economy improves; however, a caveat was that those increases were likely to climb more gradually than it previously anticipated.
Elsewhere, High Street discounter Poundland shares fell nearly 4% in early trading as its final year numbers failed to impress.
It did pass the £1bn sales mark but said head winds would affect this year's trading and the first half will be relatively "subdued".
Sales were boosted by the loom bands craze - a craft toy for youngsters.
In Greece the standoff continues, with no sign of a deal in sight as the likelihood of Grexit becomes more likely.
The ONS had some data for us to digest as it revealed clothing sales were 1.6% down last month compared to April - the biggest fall since September 2014, and, perhaps surprisingly, that included a drop in clothes order via the Internet.
Also today Sirius Minerals (LON:SXX) shares slid as it emerged planning officers had concluded the firm had underestimated the environmental damage its York Potash mine project might cause.
Sirius said it disagreed with some of the policy interpretations reached by the officers and believed the application met the major development policy set out in the National Planning Policy Framework.
FTSE PREVIEW
London’s blue-chip stocks are set to begin Thursday’s session lower, as investors all over Europe await news from the European Central Bank.
Europe’s finance chiefs meet later today to discuss interest rates, and whilst Greek debt talks remain at an impasse the outlook remains negative.
In America last night US stocks were positive, after the Federal Reserve boosted the market.
Fed chairwomen Janet Yellen and her economists indicated that US interest rates may rise at a slower pace than the market had been expecting.
The Dow Jones ended Wednesday around 30 points higher at 17,935, while the S&P 500 and Nasdaq each moved around 0.2% higher to 2,100 and 5,064 respectively.
“Still, any euphoria from the FOMC meeting has been lost in Asia as the attention once again turns back to the Greek debt negotiations and the EU finance minister’s meeting,” said Chris Weston, strategist at IG Markets.
“Our opening calls for European markets are looking fairly bleak at the moment and highlights traders are keen to limit long equity exposure until some sort of clarity around Greece emerges.”
In Asia, Japan’s Nikkei was almost 1% lower at 20,024 due, in part, to a stronger US dollar versus Yen.
The Shanghai Composite was down about 1%. Hong Kong’s Hang Seng was one of very few indices in positive territory, though in reality this move is so marginal the market is basically flat. Korea’s Kospi and India’s Sensex were both moving higher.
In the key commodities markets Brent Crude Oil was priced just below US$64, while WTI was just under US$60. At US$1,188 per ounce the gold price was up about 1%.
In London the FTSE 100 is expected to start around 25 points lower, with IG Markets calling the open at 6,655 to 6,660.