FTSE holds on
Morrisons founder dies
Pound up 0.5% against US dollar to $1.2644
Pounds up 0.46% against euro to 1.1703 euros
FTSE 100 shares clung to gains on Wednesday, helped by mining stocks as commodity prices gained.
Among gainers were Evraz (LON:EVR) up 5.5% to 235.2p, Ferrexpo (LON:FXPO) up 5.3% at 160.1p, and Kaz Minerals (LON:KAZ) up 3.8% to 488p.
But copper prices – which on Tuesday neared $6,000 - retreated on Wednesday as traders took profits after news of an imminent strike at the world's biggest copper mine in Chile pushed the price to a 20-month high.
The London Metal Exchange's three-month copper contract was down 0.5% at $5,950 a metric ton.
The benchmark share index closed up 0.1% at 7107 and led by Hikma Pharma (LON:HIK) up 3.1% to 1880p as such shares were in demand following US president Donald Trump's meeting with big pharma executives during the previous session.
Dixons Carphone (LON:DC.), whose chairman Sir Charles Dunstone, is moving to TalkTalk, fell 1.1% to 312.5p.
Meanwhile, FTSE-250-listed TalkTalk Telecom (LON:TALK), whose chief executive Baroness Dido Harding is to step down in May, rose 7.6% to 168.4p, to top the risers. The mid-cap ticker closed up 0.5% at 18,240.
Shares of Britain’s fourth-largest grocer WM Morrison Supermarkets (LON:MRW) appeared to pay tribute to their former chief, making the top ten risers of the FTSE 100, with a 1.5% gain to 239.6p.
Sir Ken Morrison, who built one of Britain’s biggest retail chains out of a small business he took over from his father, has died aged 85 following a short illness.
A Yorkshireman who took over the retailer in 1957 he stepped down in 2008 after a blundering takeover of rival Safeway in an effort to move the outlet network into southern parts of the UK resulted in years of fixes.
Remaining a life president, he didn’t mince his words when it came to his successors.
“When I left work and started working as a hobby, I chose to raise cattle,” he told the supermarket’s then-boss Dalton Philips in 2014, less than a year before he was fired.
“I have something like 1,000 bullocks and, having listened to your presentation, Dalton, you’ve got a lot more bulls**t than me.”
The FTSE AIM 100 Index closed up 0.6% at 4245 while the FTSE AIM All-Share Index finished up 0.4% at 886.
London gainers were 35% and stocks losing 30%.
1515 GMT - FTSE 100 drifts off session highs although US stocks rebound
FTSE 100 index ahead 16 points,well off highs
Dow jumps as Apple soars after results
Miners higher on China data, weak dollar
Talktalk boosted by top management change
3.15pm … US stocks advance …
The Footsie came further off earlier highs in late afternoon trading but still maintained gains as US stocks posted an opening rebound after recent falls powered by gains in Apple Inc (NASDAQ: AAPL).
Around 3.15pm, the FTSE 100 index was up about 16 points at 7,124, well below an early session peak of 7,170, but still rallying after a run of declines.
In early trade on Wall Street, the Dow Jones rose over 80 points following three sessions of sharp falls, while the tech-laden Nasdaq added 32 points as Apple jumped 5% after the iPhone maker last night posted earnings that beat expectations.
Investors showed little fear ahead of a Federal Reserve rate decision due later in the session, and Friday’s always-important US non-farm payrolls.
David Morrison, senior market strategist at SpreadCo., said: “Later this evening the Fed concludes its first monetary policy meeting since December when it hiked rates for only the second time in 10 years.
“There’s no expectation of a rate rise today, but investors will parse the accompanying statement for clues over future tightening.”
1.45pm … Apple boost awaited …
The Footsie held firm but drifted further from its highs in early afternoon trading as investors awaited Wall Street’s restart to provide some fresh direction, with Apple Inc (NASDAQ: AAPL) shares expected to lead a rally in New York.
Around 1.45pm, the FTSE 100 index was up about 45 points at 7,144, well below an early session peak of 7,170.
US stocks were set for a positive start today following three sessions of sharp falls, with tech giant Apple seen higher after the iPhone maker last night posted earnings that beat expectations.
However, with a Federal Reserve rate decision due later in the session, and Friday’s key US non-farm payrolls a cautious focus, gains could be fairly restrained.
US data released today by ADP showed private-sector hiring picked up in January, as employers added 246,000 jobs, well above expectation for a gain of 168,000.
That compared with a revised 151,000 gain in December, which was down slightly from an originally reported increase of 153,000.
Naeem Aslam, chief market analyst at Think Markets UK Ltd, said: “The ADP data has set a good tone for Friday and this has pushed the dollar higher because an improving job market strengthens the case for a rate hike.
“The Fed has already said that they want to increase the rate only if the data permits them. But the new reality is that the future path of the dollar is no longer depended on the Fed."
10.45am ... Miners dig in …
Strength in the heavyweight mining sector provided the main lift for the Footsie as the morning session progressed, with the UK index rebounding after recent falls despite weakness on Wall Street.
Around 10.45am, the FTSE 100 index was up about 60 points at 7,158, just easing back from an earlier session peak of 7,170.
On currency markets, sterling was higher against both the US dollar, up 0.4% at US$1.2618, and the euro, up 0.3% at €1.1695, after January’s UK manufacturing purchasing managers index reading came in at 55.9 broadly in-line with expectations, despite showing a drop on December’s reading.
Howard Archer, chief UK and European economist for Markit IHS Global, said: “With the notable exception of the very high prices balances, this is a largely pleasing survey that indicates that the UK manufacturing sector has started off 2017 on the front foot.”
Mining shares stood out in London helped by a lower dollar and after data today also showed growth in the manufacturing PMI for China, the world’s biggest consumer of metals.
BHP Billiton plc (LON:BLT), Rio Tinto PLC (LON:RIO), and Anglo American PLC (LON:AAL) all gained over 1% at 1,454.5p, 3,532p, and 1,373p, respectively.
Engines giant Rolls-Royce Group PLC (LON:RR.) was also in demand, adding 1.7% at 678.5p after Swiss bank UBS raised its rating for the “unloved stock” to ‘buy’ from ‘neutral’ with an 835p target price, up from 800p.
But on the downside, Dixons Carphone was a FTSE 100 faller, shedding around 0.5% at 314.2p on news Charles Dunstone is to quit his post as non-executive chairman of the merged electricals retailer.
The move comes with Dunstone set to become executive chairman of broadband provider Talktalk Telecom Group PLC (LON:TALK) – which he founded - with its chief executive, Dido Harding to step down on May 1 after seven years in charge.
Talktalk shares topped the FTSE 250 leader board, jumping over 11% higher to 167.7p.
8.25am ... Footsie rebounds ...
The FTSE 100 got off to a positive start ahead of the US Federal Reserve’s interest rate call later.
While the Fed is expected to stand pat, sentiment will be driven by the tone struck by chair Janet Yellen.
“The central bank seems likely to seek to keep its options open as it awaits further evidence about the size and composition of any loosening of budgetary policy,” said Sam Fleming, Washington reporter at the Financial Times.
“The Fed is not producing new economic forecasts or a fresh interest rate outlook at this meeting, so this is not a gathering at which it can send detailed signals.”
Refusing to be panicked by falls on Wall Street overnight the index of blue-chip shares kicked off 47 points to the good at 7,146.11.
6.45am ... Bright start predicted ...
FTSE 100 looks set to shrug off a weak Wall Street overnight.
Financial spread bet firms expects gains of up to 40 points in London when trading gets underway following the small decline on Tuesday.
The Dow Jones Industrial Average dropped 107 to 19,864 as the fallout from US plans to ban migrants from seven Muslim-majority nations continued.
The index had fallen by more earlier and the rally late in the day should give some momentum to London, traders said.
Apple also released figures, which showed the tech giant had at least arrested the decline in iPhone sales and that helped quarterly revenues and earnings come in ahead of expectations.
Net income was $17.9bn, or $3.38 a share on revenues of US$78.4bn, up on the previous year compared to some gloomy forecasts beforehand.
Asian markets were mixed with strong gains in Tokyo, losses in Hong Kong and a flat performance in Shanghai.
Headlines
Apple breaks losing streak with record iPhone sales – The TimesUS investor class action cases against companies hit 20-year high – Financial Times
Pharma stocks rally on Trump pledge to speed drug approvals – Financial Times
O2 urges Ofcom to impose tighter limit on BT control of the airwaves – Daily Telegraph
VW risks new pay row as compliance chief lands €10 million payoff – The Guardian
Net closes on Barclays chiefs over £7 billion deal involving glamorous financier – Daily Mail
Diageo brings back historic Irish whiskey to take on Jameson-maker Pernod Ricard – Daily Mail
Currencies/commodities
- £/$: 1.2554 - pound weakens
- Oil (wti) : US$52.82 - flat
- Gold: US$1,208 down US$2