FTSE 100 finishes down 4
US healthcare reform weighs on mood
Smiths Group at all-time high after results
FTSE 100 closed down a tad on what was a dull day for company news.
The UK benchmark finished down 3.89 at 7,336, while the more domestic focused index the FTSE 250 finished almost 29 lower at 18,980.
The US provided the focus for much of the day with Trump's healthcare bill under the spotlight.
Elsewhere, official data also showed that business activity across the Pond grew at the slowest pace since September 2016 in March.
Chris Beuchamp, at spreadbetter IG Index, said this was Trump's first real test of his legislative programme.
"Markets, having (perhaps a touch naively) assumed that the year would see him go from triumph to triumph, are now on the cusp of switching to the opposite extreme.."
He added: "The problem for markets is that we remain in a news-light environment.
"Equity and economic news has not been of the real blockbuster variety, which leaves Washington-watching as the only game in town."
On FTSE100, the biggest gainer was engineer Smiths Group (LON:SMIN), which makes airport scanners, oil seals and medical equipment.
Shares closed 2.89% higher at 1,601p after it posted better than expected interim numbers and was upbeat on the outlook.
3.30pm....FTSE 100 barely moving
London’s blue chips were barely moving as all eyes focused on the latest political machinations of US President Donald Trump.
He is battling with dissident Republicans over healthcare reform, a key plank of his manifesto, but he has threatened to walk away for the issue if he does not get at least a vote today.
US stocks opened stronger with the Dow Jones Industrial Average adding 31 to 20,687, which helped FTSE 100 perk up to 7,337 a decline of four points.
The aftermath of Westminster terror attack was weighing on minds with another person dying, 50 still injured and the attacker identified as coming from Kent.
Engineer Smiths Group (LON:SMIN), which makes airport scanners, oil seals and medical equipment, was the stand-out in London, adding 3% to 1,559p after it posted better than expected interim numbers and was upbeat on the outlook.
IG Design Group PLC (LON:IGR) was in demand as it forecast record revenues in the year to March, while profitability would also be above market forecasts.
The giftware, stationery and wrapping paper group said sales will be more than £300mln, while cash is being generated faster than expected.
Shares climbed 13% to 298p.
11.30am...FTSE 100 drifts as Trump sets the agenda
US healthcare was setting the market agenda in London after the postponement of a key vote yesterday.
As it’s effectively a test of how easily Donald Trump will be able to push through his tax reforms and infrastructure plans, London’s investors were paying close attention as well.
The US President upped the stakes overnight by demanding there is a vote on the Obamacare issue. If there isn’t, he said he will move onto other things and leave the current healthcare system intact.
“With the vote looking very close right now, Trump has taken quite a big gamble because an inability to pass the new healthcare bill through a Republican controlled Congress when most are in agreement that Obamacare should be scrapped, will cast doubts on what other promises he will be unable to deliver on,” said Craig Erlam, senior market analyst at foreign exchange group Oanda.
FTSE 100 took its cue from Wall Street as it traded eight points lower at 7,332.
The aftermath of Westminster terror attack was almost weighing on minds with another person dying, 50 still injured and the attacker identified as coming from Kent.
Corporate and economic news was at a premium. The engineer Smiths Group (LON:SMIN), which makes airport scanners, was the stand-out feature.
It advanced 3% to 1,559p after it posted better than expected interim numbers and was upbeat on the outlook.
On the debit side, B&Q owner Kingfisher (LON:KGF) continued to be punished for a lacklustre set of earnings earlier in the week as it was marked down 1% at 320p.
Among the tiddlers Ariana Resources (LON:AAU) was a strong early risers, posting an 8% gain fto 2.03p ollowing the first pour from its gold and silver mine in Turkey.
Minoan Group plc (LON:MIN) rocketed higher as local papers reported that the appeals against planning permission for its leisure project on Crete had been rejected.
A Presidential Decree has granted land use but this ran into local opposition. The Greek Supreme Court has now thrown out these appeals say the local press.
Shares rose 36% to 9p.
Cyber security specialist Digital Barriers PLC (LON:DGB) dropped 18% to 25.5p on a warning of a potential £10mln shortfall in full-year revenues due to contract delays.
The AIM-listed group said while it “currently expects to secure all of these awards, it has now become clear that some or all of them may now be secured in the next financial year.”
8.45am...FTSE 100 trades sideways on a dull day for corporate news
The FTSE 100 took its cue from Wall Street as it traded four points lower at 7,336.96.
US markets gave up gains after the Trump administration’s healthcare reforms were thwarted.
Here in the UK, the headlines focused on the aftermath of Westminster terror attack.
Corporate and economic news was at a premium. The engineer Smiths Group (LON:SMIN), which makes airport scanners, was the stand-out feature.
It advanced 4% after it posted better than expected interim numbers and was upbeat on the outlook.
On the debit side, B&Q owner Kingfisher (LON:KGF) continued to be punished for a lacklustre set of earnings earlier in the week as it was marked down 1.3%.
Among the tiddlers Ariana Resources (LON:AAU) was a strong early risers, posting a 12% gain following the first pour from its gold and silver mine in Turkey.
Proactive news headlines
Nanobiotix SA (EPA:NANO) has confirmed the Independent Data Monitoring Committee (IDMC) of its phase II/III clinical trial has given the company the green light to continue. It has done so after analysing the safety and efficacy data from two-thirds of the patients.
Ariana Resources plc (LON:AAU) managing director Kerim Sener described as a “momentous achievement” the first production from the Kiziltepe Mine in Turkey.The 5.25kg gold-silver doré pour represents the culmination of years of hard exploration work followed by permitting and building the operation.
Fast-growing top level internet domain names specialist CentralNic Group PLC (LON:CNIC) has confirmed it is in talks with a Slovakian registry service provider.
Hydrogen fuel cell developer AFC Energy plc (LON:AFC) is poised to move into the commercialisation phase in 2017 as it unveiled 2016 losses that were not as severe as the market had been expecting.
IGas Energy PLC (LON:IGAS) said that the debt-for-equity element of its proposed financial restructuring saw secured bonds to the face value of US$28,918,390 tendered by the voluntary equity exchange offer’s close today, which the firm will buy-back.
6.45am ... Modest gains seen ...
The Footsie is expected to extend yesterday’s rally this morning despite weakness overnight from US markets helped by gains in Asia on a weaker dollar
Spread betting firm CMC Markets expects the FTSE 100 index to open around 8 points higher at 7,355, having gained almost 16 points yesterday.
In New York, the Dow Jones gave up earlier gains to close nearly 5 points lower yesterday, but in Asia today, Japan’s Nikkei 225 posted small gains at the end of a tough week.
Michael Hewson, chief market analyst at CMC Markets UK said: “While markets in Europe managed to eke out some gains yesterday the decline in US markets continued after the expected vote on the new health care bill to replace Obamacare was postponed, due to a failure to garner enough support for it.
“Nonetheless it looks set to be a disappointing week for stock markets on both sides of the Atlantic as a semblance of realism starts to creep into proceedings in terms of what the new US administration will be able to deliver in terms of its reform program in the coming weeks and months.”
He added: “Promises of action are all well and good but unfortunately President Trump’s words are now coming up against the realities of Washington politics, where things move much more slowly than he is probably used to when it comes to business.”
Little news ...
There will be no important UK data and little on the corporate news front to provide any distraction today, with the only FTSE 100-listed firm scheduled to report results x-ray machines maker Smiths Group PLC (LON:SMIN).
Morgan Stanley is expecting the group to report first half sales of £1.528bn, operating profits of £235.2mln, and earnings per share of 38.1p.
In a preview of Smiths’ results, Graham Spooner, investment research analyst at The Share Centre said: “Investors will be expecting the divisions that are exposed to government spending such as the Medical and Detection to do better as certain governments look to increase spending after some lean years.”
He added: “The group’s shares have performed exceptionally well over a one year period reflecting a steady performance from its growth businesses which have been offsetting the tougher conditions faced by its oil services business, John Crane.”
Rig services firm Lamprell PLC will also update the market on Friday, with its full-year results expected to also illustrate the tough conditions in the oil sector.
In a trading update back in January, Lamprell said the industry environment remained challenging throughout 2016, and it expected that 2017 would also prove a “particularly cautious environment”.
Significant events expected on Friday:
Interim: Smiths Group PLC (LON:SMIN)
Finals: Henry Boot PLC (LON:BHY), Concurrent Technologies PLC (LON:CNC), Frontier Smart Technologies Group Ltd (LON:FST), Lamprell PLC (LON:LAM)
Around the markets:
- Sterling: US$1.2474, up 0.4%
- Gold: US$1,24690 an ounce, unchanged
- Brent crude: US$47.88 a barrel, up 0.4%
City Headlines:
- Housebuilder Crest Nicholson’s investors reject executive pay deal in 2017’s first revolt – The Guardian
- Italy’s Eni makes significant oil discovery off Mexican coast – Financial Times
- Ithaca Energy Boss backs Delek takeover after $54 million loss – Daily Telegraph
- Rockhopper sues Italy over oil field ban – The Times
- 1,100 Jones Bootmaker jobs at risk as private equity deal collapses – The Guardian
- CEO uses ‘snowflake’ test when hiring to avoid ‘whiny millennials’ – The Independent
- UK homes could see energy bills increase by up to £445 per year – The Independent
- Robots will take a third of British jobs by 2030, report says – Daily Telegraph