MID-SESSION UPDATE
Stocks in London and mainland Europe fell further on Friday after mixed Asia trading and downbeat UK economic news.
The FTSE 100 Index was off 21.09 points at 6134 while Germany's Dax retreated 77 points and France's Cac-40 fell 33 points.
Chinese stocks trod water despite signs that authorities remain committed to stabilizing now volatile financial markets.
The Japanese Nikkei closed down despite data showing improved third quarter business confidence, with US demand offsetting Chinese concerns.
US markets recorded modest gains following falling import prices, lower weekly jobless claims and an oil price recovery.
The price of a barrel of Brent crude fell 2.3% to US$47.7 and US light crude was 2.6% off at US$44.7.
Despite that, BP (LON:BP.) gushed 2.3p higher to 337.6p, Royal Dutch Shell (LON:RDSB) lifted 3.5p to 1626p and BG Group (LON:BG.) inflated 3.3p to 992.4p.
In the UK, there was more economic bad news as construction output fell by an unexpected 1% in July against a 0.9% rise in June.
Howard Archer at IHS Global Insight said: "it currently looks like UK GDP growth will come in no better than 0.5% quarter-on-quarter in the third quarter, which would be down from expansion of 0.7% quarter-on-quarter in the second quarter."
JD Wetherspoon (LON:JDW) lost early gains to stand 2p down at 718p as the pub group served up lower annual profits and reduced pub openings this year.
Sula Iron & Gold (LON:SULA) softened 0.05p to 0.42p after it identified another potential source of iron ore at its Ferensola project in northern Sierra Leone.
E-commerce group Cloudbuy (LON:CBUY) dropped 1.25p to 17.5p on news that it may undershoot market expectations for the year to December 31.
Oil and gas services supplier Redhall (LON:RHL) plunged 3.88p to 6.25p as it announced a placing and open offer to raise £5.8mln.
New World Oil & Gas (LON:NEW) was flat at 0.07p after rebel investors proposed turning the Belize and Denmark-focused explorer into a medical technology firm.
LONDON OPEN
Stocks in London and mainland Europe opened in the red after a mixed trading session in the Far East.
The FTSE 100 Index was off 13.34 points at 6142 while Germany's Dax retreated 45 points and France's Cac-40 fell six points.
Chinese stocks trod water despite signs that authorities remain committed to stabilizing now volatile financial markets.
The Japanese Nikkei closed down despite data showing improved third quarter business confidence, with US demand offsetting Chinese concerns.
US markets recorded modest gains following falling import prices, lower weekly jobless claims and an oil price recovery.
The price of a barrel of Brent crude fell 1.6% to US$48.1 and US light crude was 1.8% off at US$45.1.
Despite that, BP (LON:BP.) gushed 3.15p higher to 338.45p, Royal Dutch Shell (LON:RDSB) lifted 8p to 1630.5p and BG Group (LON:BG.) inflated 3.8p to 992.9p.
In the UK, construction output data were expected to come in weaker, hitting their lowest growth rate in more than two years
JD Wetherspoon (LON:JDW) frothed up 13p to 733p as the pub group served up record sales despite lower annual profits.
Sula Iron & Gold (LON:SULA) softened 0.02p to 0.45p after it identified another potential source of iron ore at its Ferensola project in northern Sierra Leone.
E-commerce group Cloudbuy (LON:CBUY) dropped 1.25p to 17.5p on news that it may undershoot market expectations for the year to December 31.
MARKET PREVIEW
London’s blue-chips are called to open higher after closing well down on Thursday, taking the cue from the US, where shares finished up.
The Dow Jones closed 76 points higher at 16,330, while the Nasdaq added 39 to 4,796 after sentiment was buoyed by a clutch of positive corporate earnings and employment data.
FTSE100 closed 73 lower at 6,156 as the Bank of England left interest rates at the bargain basement 0.5% level and after Asian machinery orders were disappointing.
But today, London shares are called to open around 29 points higher by analysts at spreadbetter IG Index.
In Asia, trading has been mixed. The Shanghai Composite Index in China is down two points at 3,196, while Japan's Nikkei 225 added 4.75% to 18,304.
Today, attention is likely to be focused again on the macro issues - the Asian economy and the timing of potential interest rate rises from central banks.
We are set for a quiet day on the reporting front, with just pub chain JD Wetherspoon (LON:JDW) reporting.
The group will reveal whether its price war with the High Street coffee chains, launched earlier this year, was ill-conceived or not.
Earlier this week, it announced that Costa Coffee boosted its worldwide total sales in its half year results and analysts are expecting Wetherspoons to have failed in its assault.
Broker Numis reckons pre-tax profit will fall as margins reduce to just 7.4% due to lower pricing on all its products.
“The company’s pricing strategy is key; it is clear that minimal price increases are not generating sufficient volume growth to offset their damage to margins," it noted.