FTSE 100 closes up 39
Miners lead the way as metal price rises
Supermarkets hit by latest sales data
Miners bolstered the FTSE 100, which continued its journey north to finish Tuesday over 39 points ahead.
The blue chip benchmark closed at 7,321 - up 39.13 points, as weakness in sterling also gave a boost to its dollar earning constituents.
Stocks also rose in London despite data showing that growth in the UK's construction industry had slowed slightly in March, adding to fears of a slow-down after the momentum seen at the end of last year.
Meanwhile, in the US, after earlier losses, bench mark stocks are also higher at the time of writing.
Attention now turns to the UK services PMI figure tomorrow, which is also expected to point to a slowdown, after a strong period of growth.
Top riser was silver giant Fresnillo (LON:FRES) which added 2.77% to 1,595p, while WM Morrison (LON:MRW) was the biggest laggard, shedding 2.86% to 230.9p as
Earlier, Kantar’s figures had shown a sharp rise in food inflation in February while the market share of non-frills competitors Aldi and Lidl hit new record highs.
That said, Morrisons was the only one of the big four supermarkets to grow sales over the past 12 weeks.
Among small-caps, Adept Telecom (LON:ADEPT) added 12.6% to 357.5p after a trading update revealed the company would beat City profit and debt guidance.
3pm....FTSE 100 shrugs off weak start in New York
FTSE 100 shrugged off a week start on Wall Street to make healthy gains after its recent lacklustre performance.
Blue chip shares in London were 33 points higher on average at 7,316.
Miners were the main risers though it was the base metal groups Anglo American PLC (LON:AAL) and Glencore PLC (LON:GLEN) that took over from the precious metal specialists,which were strong in the morning but eased later. Anglo shars rose 2% to 1,233p while Glencore rose by a similar anmount to 319.7p.
Royal Bank of Scotland PLC (LON:RBS) shed 2% to 234.9p as the European Commission started an investigation into an alternative proposal to the sale of its (LON:RBS) Williams & Glyn business.
The UK government has put forward a recommendation to the European Union (EU) to scrap the sale of the bank’s 300 Williams & Glyn branches and instead spend £750mln on setting up a fund to help smaller challenger banks.
US shares are lower in early deals as investors took stock after the rally last quarter.
Traders are jittery about the non-farm jobs data out on Friday and a key US and China meet on Thursday.
Though there was good news on the US economy as the trade deficit (the gap between imports and exports) deficit fell back to $43.6bn in February, cancelling out the big increase in January, as exports rose and imports fell.
11.30am...FTSE 100 shrugs off supermarket struggles
FTSE 100 made good gains even with a tough morning for the supermarkets on disappointing sales data.
The blue chip index added 25 points to 7,308 helped by a good showing from miners Randgold Resources PLC (LON:RRS) and Fresnillo PLC (LON:FRES) after the gold price rose above US$1,250.
Bunzl PLC (LON:BNZL) was also going well after the acquisition of two safety equipment makers, one in the US and one in Italy.
Combined, the two will add revenues of €81mln with management of the two firms staying with the group.
Shares rose 2% to 2,342p.
On the downside, Kantar’s monthly grocery sales data unsettled the supermarkets.
Tesco PLC (LON:TSCO) and J Sainsbury plc (LON:SBRY) both saw a decline in sales although Wm Morrison Supermarkets PLC (LON:MRW) maintained its recent recovery.
Kantar’s figures also showed a sharp rise in food inflation in February while the market shae of non-frills competitors Aldi and Lidl hit new record highs.
Morrison shares eased 1% to 235.4p, Sainsbury’s 2% to 257.7p though Tesco managed to eke out a modest rise to 185.2p.
Security software group Sophos PLC (LON:SOPH) jumped 10% to 300p as it reported a very strong end to the fourth quarter.
Billings shot up by 27% even before a contribution from recent acquisition Invincea and for the full year will be 20% ahead on a constant currency basis.
AdEPT Telecom plc (LON:ADT) was another beneficiary of a very strong trading update.
“Underlying EBITDA will be around 26% ahead of the previous year compared to market forecasts of an 18% rise year-on-year.
Shares rose 12% to 355p.
8.45am...FTSE 100 rebounds, but ASOS disappoints
The FTSE 100 halted a three-day slide as it advanced 36 points to 7,318.39.
It was a slightly more positive start than predicted and bucked the trend on Wall Street overnight and in Asia earlier.
In fact the prevailing sentiment in the Square Mile was still one of caution ahead of the American-Chinese talks later this week, the US Federal Reserve minutes and non-farm payrolls.
The big money managers were marked down early on, while Rolls Royce (LON:RR.) led the pack.
Keenly awaited was the latest update from online retail phenomenon ASOS (LON:ASC), which appeared to disappoint judging from the 6% fall in the share price.
Among the smaller-caps, Adept Telecom (LON:ADEPT) was up 13% after trading update revealed the company would beat City profit and debt guidance.
Proactive news headlines
Speciality drug group Midatech Pharma Plc’s (LON:MTPH; NASDAQ: MTP) prelims chart eda year of operational and financial progress – and a full year contribution from DARA Biosciences, bought in December 2015.
The transformation of the business was reflected by top line growth of 510%, with gross revenues coming in at £9.21mln for the 12 months to December 31.
Carl Bacon is to step down as chairman of StatPro PLC (LON:SOG) after 17 years in the role.
Europa Oil & Gas Holdings PLC (LON:EOG) had a busy first-half and the remainder of 2017 looks to be as exciting for the group, with further farm-out deals expected offshore Ireland, and strong potential from its onshore UK assets. CEO, Hugh Mackay said.
The Horse Hill partners, including Solo Oil PLC (LON:SOLO), have had their licence on the acreage extended four years along with the rights to explore and develop a second area nearby. The update from the partners also provided a timeline for testing the Horse Hill well in Surrey as well as setting out a detailed work programme.
Keywords Studios PLC (LON:KWS), the provider of technical services to the computer gaming industry, has traded in line with expectations this year and is primed for another year of strong growth.
6.45am...regaining ground
London is set to regain some of the losses posted yesterday after a late US rally.
Financial spread bet firms see gains of around fifteen points for the FTSE 100 when trading gets underway, compared to a loss Monday of 40 at 7,282.
US shares finished in the red with the Dow Jones Industrial Average 13 points lower at 20,650 but that was much better than earlier in the day when disappointing car sales numbers from the majors and especially Ford had knocked confidence.
Nasdaq and the S&P 500 also closed lower.
Asian markets were very mixed with a big rise in Hong Kong not matched elsewhere. Tokyo was over one percentage down ahead of the close while Shanghai made it into blue numbers just about.
ASOS plc (LON:ASC) leads the line for company news today and analysts are expecting strong interim results from the online fashion retailer. Investors cheered the company’s January trading statement when it reported a 36% increase in retail sales to £605mln driven by its international arm.
City headlines
- Apple launched a hiring raid on Imagination Technologies in the months before it shocked the City yesterday by announcing that it planned to cut ties with the chip designer, reports the Times.
- Perhaps that is why the Telegraph reports that Imagination is mulling legal action. Shares in the Hertfordshire-based company collapsed on Monday the loss of its key customer put Imagination’s future in doubt, with investors pondering a potential break-up.
- Elsewhere, Theresa May has said that Britain will use “jaw-jaw” to resolve its differences with Spain over Gibraltar, laughing off suggestions that a dispute over the Rock could plunge the two countries into war, reports the FT.
- The City watchdog has ramped up the pressure on banks and credit card firms with a crackdown on card debts that could result in interest being scrapped for struggling borrowers, reports the Telegraph. The Financial Conduct Authority (FCA) has unveiled a host of proposals that would force firms to help consumers labouring under long-term credit card debts, including cancelling interest or other charges for customers who are unable to clear their balances through a repayment plan.
- The Co-op Group is braced for a £140 mln hit as it re-values its stake in the beleaguered bank it used to run. Bosses lost control of the Co-op Bank in 2013 after an accounting scandal. They retained a 20% stake valued at £140 mln, reports the Mail.
- Tesla’s valuation was on course to eclipse Ford’s for the first time last night, wrote the Times. Strong production figures from Tesla lifted its shares by 5.5% as disappointing sales numbers from Ford pushed down its stock
- Russian gas giant Gazprom is considering moving its trading and marketing operations out of the UK after the country leaves the EU amid fears of losing preferential access to the European market as a result of a “hard” Brexit, the FT reports.
Commodities/currencies
- £/$: 1.244 pound lower
- Gold: US$1,258 up US$4
- Oil (WTI): US$50.01 down US$0.17