MIDSESSION
FTSE 100 was up at the midday point, but not much, as traders eye the US non-farms report and mull over some poor UK economic reads.
The blue chip index is up around 11 at the time of writing, to 6,545, with housebuilder Taylor Wimpey (LON:TW.) the biggest Footsie gainer, clawing back some very heavy recent losses.
It shares are up 7.45% to stand at 131.20p.
A market research report yesterday showed UK consumer confidence at a 20 plus year low, while trade data today did little to inspire.
The total deficit in goods and services was shown to have widened to £2.3bn in May, although that was not was bad as the £3.6bn, which had been cited by economists. Meanwhile, exports fell 4.4% month-on-month and imports were down 3.5%.
In small caps, Savannah Petroleum PLC (LON:SAVP) was top riser in London, adding 40% to 32.25p as it said it had successfully brought in US$40mln in an over-subscribed placing to help it develop its promising oil assets in Niger and as trading in its shares was restored after being suspended in January.
Also ahead was Kibo Mining (LON:KIBO), up over 9% to 6p after it completed the mining definitive feasibility study of the Mbeya coal-to-power project (MCPP) in Tanzania.
Cascabel in Ecuador explorer SolGold (LON:SOLG) raced up over 26% to 3.9p as its set to receive up to US$20mln in investment from Maxit Capital, via a private placing to continue exploration at its Cascabel property in Ecuador.
Maxit agreed to subscribe for up to 238.47mln shares, or a maximum of 19.99% of the capital.
On the losing front Stratmin Global (LON:STGR) lost 15.38% to 1.38p. Yesterday, it entered into a conditional sale and purchase agreement with Bass Metals Limited to sell its 93.75% stake in Graphmada Mauritius.
The consideration for the disposal is for up to AUS$15.25mln (£8.8mln) and is payable through a combination of cash, shares in Bass and a net smelter royalty.
OPEN
FTSE 100 was managing to keep its head above water in early deals but a mixed session on Friday looks likely as traders look to key US non-farm jobs numbers later and after a huge drop in UK consumer confidence.
The UK's blue chip benchmark is at 6,539 at the time of writing - just 5.7 points ahead.
Meanwhile in small caps, FTSE AIM 100 is 0.2% ahead at 3,333 and the FTSE AIM All share index is 0,15% ahead at 700, 420.
Last night, a report from market researchers Gfk showed its UK confidence index falling by eight points to minus nine - a plunge not seen for over 20 years - since December 1994.
It comes as investors remain highly uncertain about the future of the UK and global economy after the Brexit vote. The vote was two weeks ago and the main focus now is on re-stabilising the UK political landscape - in itself something, which will take months.
Also possibly affecting sentiment later is the latest UK trade data, expected to show a £10.7bn deficit for May, of which only £2.8bn is non-EU.
Miners were the strong gainers, oft the way amid economic uncertainty, with Rio Tinto (LON:RIO) up 1.06% to 2,395p.
In small caps, commodity stocks were doing well, with Savannah Petroleum PLC (LON:SAVP) top riser in London, adding almost 38% to 32.5p as it said it had successfully brought in US$40mln in an over-subscribed placing to help it develop its promising oil assets in Niger and as trading in its shares was restored after being suspended in January.
Also ahead was Kibo Mining (LON:KIBO), which has completed the mining definitive feasibility study of the Mbeya coal-to-power project (MCPP) in Tanzania.
Results from the MDFS correlate accurately with those of the mining pre-feasibility study announced in August of last year, and have reconfirmed the Mbeya coal mine as a robust project with strong financial and commercial indicators, the company said.
Shares gained 13.64% to stand at 6.25p a pop.
Rare Earth Minerals plc (LON:REM) added almost 6% to 0.46p as it revealed associate Macarthur had expanded the scope of its lithium MoU in the prolific Pilbara region of Australia.
On the losing front and dropping back from gains yesterday, Sunrise Resources Plc (LON:SRES) lost 5.13% to 0.19p. Yesterday, the group posted results of historic exploration on its Clayton Silver-Gold Project in Nevada.
The US job creation number will be a clue as to what the Fed will do next on interest rates but traders are nervous after last month, May's figure showed only 38,000 new payrolls were added.
Analysts reckon that was a one-off but anything today anything under 175,000 for June - the number private firm ADP reported, could trigger a broader stock market sell-off.
In terms of rate rises, Michael Hewson at CMC Markets, said: "While last month’s “Brexit” vote justified the Fed’s caution in holding rates in June, a decent payrolls report of anywhere near 200k could well reignite expectations of a move on rates in September, especially if average hourly earnings also show evidence of rising as well, with an annualised rise of 2.7% expected.
"A number anywhere in the region of 100k will defer any prospect of a possible rate rise, as will a poor wages number."
The FTSE 100 opened slightly higher this morning with a modest 6 point gain to 6,540.
The top winner was Taylor Wimpey (LON:TW. up 2% or 3 points to 124p.
Barclays (LON:BARC) was the biggest loser, down 2% or just under 3p to 132p. Following close behind was the Royal Bank of Scotland Group (LON:RBS), down 1.5% to 156p.
Preview at 7.00am
The FTSE 100 is set to open lower amid investor nervousness ahead of US jobs numbers later Friday.
The spread betting firms are predicting the index of blue-chip shares will fall 24 points to 6,509.79.
In Asia, the mood was cautious with the Nikkei 225, Shanghai Composite and Hang Seng off respectively 0.6%, 1% and 0.8%. Wall Street closed flat.
Investors are a little twitchy about American non-farm payroll data out later amid fears the world’s largest economy might be running out of steam.
May’s figures revealed only 38,000 new jobs were created – which analyst reckon was an anomaly. Anything under 175,000 for June could trigger a broader stock market sell-off.
Here in the UK it looks like an exceptionally quiet day for corporate news.
*The pound is trading at US$1.2946.
*Brent crude recovered some of the losses posted Thursday as it added 1.3% to US$47 a barrel.
*Gold fell 0.3% to US$1,358.30 per ounce.
City Headlines
*China has abandoned a pledge to keep its exchange rate stable and is carrying out a systematic devaluation of the yuan, sending a powerful deflationary impulse through a global economy already caught in a 1930s trap – Telegraph,
*Jamie Dimon, the chief executive of JP Morgan, has repeated his warning that he could move thousands of jobs out of the UK in spite of a pledge yesterday by his deputy to help London retain its position as the world’s leading financial centre. Meanwhile, a quarter of German companies with British subsidiaries are planning to cut jobs in the wake of the referendum, while a third say they will reduce capital investment – Times.
*Shares in pest control firm Rentokil hit a 12-year high on Thursday after the FTSE 250 company said its profit for 2016 would increase as a result of the slide in sterling – FT.
*Booming British shale gas fracking industry will blow a hole in the U.K.’s climate change targets unless it is tightly controlled, the government’s advisers on global warming have warned – FT.