FTSE 100 up 46 to to 7,349
US jobs data in massive miss
US attacks air base in Syria
Gold soars in reponse
Standard Life lifted by RBC upgrade
Close ... Footsie finishes up on the day and up on the week
The FTSE 100 shrugged off concerns about the US airstrike on Syria to finish the week with a flourish.
The top-share index closed at 7,349, up 46 points on the day and 27 points on the week.
The top blue-chip riser was Randgold Resources Limited (LON:RRS) as investors did their usual thing of heading for gold producers at the first whiff of international strife.
The gold producer’s shares rose 4.3%.
Close behind was Standard Life PLC (LON:SL.), the pensions giant, which rise 3.6% to 368.7p after RBC Capital Markets upgraded its recommendation to “sector perform” from “under-perform”.
RBC’s pumped up its price target to 370p from 320p.
4.10pm... Investors seek havens
The FTSE 100 is sitting higher with Randgold Resources leading the charge as investors sought havens such as gold after the US fired cruise missiles at a Syrian airbase from which President Donald Trump said a deadly chemical weapons attack had been launched.
The air strikes are the first direct US assault on the government of Bashar al-Assad in six years of civil war.
Gold prices on the Comex jumped 1.23% to US$1,268.70, sending producers of the gold metal into the black.
"“It’s a mixed day for the miners, bookending the FTSE 100," said Nicholas Hyett, equity analyst at Hargreaves Lansdown.
"Market jitters following US air strikes on Syria, and heated exchanges between the US and Russia, have pushed some investors towards safe havens such as gold, up 1% today."
Defence contractors also rose on the news, including BAE Systems plc (LON:BA. and Rolls-Royce plc (LON:RR).
Miners focused on industrial metals fared less well, including Rio Tinto plc (LON:RIO). "That reflects a fall in iron ore prices, sparked by a combination of investors moving away from risker assets and Australian government research suggesting that prices will fall throughout 2017 as Chinese demand softens," Hyett said.
"That Rio Tinto has been hit particularly hard is no surprise, given the importance of its Pilbara iron ore mines to group profitability."
Wolseley plc (LON:WOS) was also under the cosh after HSBC cut its rating on the heating and plumbing products company to ‘hold’ from ‘buy’ and lowered the target price to 5,150p from 5,350p on valuation grounds. The bank has also cut its earnings per share estimates for fiscal years 2018 and 2018 by 4.9% and 5.9% respectively after the company announced plans to exit operations in the Nordic regions.
2.55pm...Windar Photonics shares soar
Shares in Windar Photonics PLC (LON:WPHO) are on the rise after the wind sensors maker received a new order for 25 of its WindEYE LiDAR units from a newly-appointed regional distributor in China.
The Chinese market is an important one for the technology group given that four of the top ten wind turbine manufactures are based there.
Windar said today’s order also validates the decision it made last year to shake up its sales strategy and extend its regional distribution network.
News of the order – which is expected to be delivered before the end of June – sent shares 9% higher to 95.2p.
Tech group Microsaic Systems plc (LON:SYS) is also on tear this afternoon after it signed an amendment to its research collaboration agreement with a “long standing global partner”.
The group said the amended agreement is a precursor to future collaboration in the area of bio-processing, in which it has a keen interest.
2.30pm.. FTSE adds to gains as investors bet that the poor US jobs number in March might mean US rate rises are deferred.
"Overall, the market is taking this report as a sign that the US economy may not be as strong as initially thought and the Fed will ease off hiking interest rates, " said Kathleen Brooks at City Index.
But expect a bounce back in April, she said, adding the drop in the unemployment rate to 4.5% was the lowest level since 2007, which suggests that the US labour market is finally getting back to normal and one month of moderate jobs growth is to be expected and nothing to fear.
FTSE 100 up 37 at 7,341.
2,00pm.. Tesco/Booker to dominate next week's agenda as Easter looms
Tesco PLC (LON:TSCO) has been battling pricing pressures, taken a big fine and dealt with an uncertain economic outlook – all while it tries to complete an acquisition publishes its annual results.
The consensus in the City is for the supermarket giant to post an annual pre-tax profit of around £784mln on revenues of £55.7bn next Wednesday.
Even with the various issues, analysts at Macquarie think investors will be in for a pleasant surprise.
“We are firm buyers of Tesco into the full-year update. We expect a beat and look for a confident outlook.”
More important, will be a commitment to see through the acquisition of cash and carry chain Booker PLC (LON:BOK) where some shareholders have queried the £3.7bn price tag.
Shares today were up 1.7% to 188.3p,
Read: Tesco hoping to put Booker doubts to bed
1.55pm... US market preview
Markets were set to react to the US air strike on Syria with relative equanimity until March’s jobs figures were released.
Spread betting quotes pointed to the benchmark S&P 500 opening just a couple of points down from last night’s close of 2,357 while the Dow was seen opening a mere six points down from yesterday’s end value of 20,663.
Cue the release of the jobs data, and the prognostications changed, with the S&P predicted to open four points lower and the Dow 45 points in the hole.
US non-farm payrolls rose 98,000 in March, which was the smallest monthly rise in almost a year, and well below the 185,000 analysts had expected.
There was better news on the unemployment rate, which fell to 4.5% from 4.7%.
“With interest rates hiked last month, and President Trump’s pledges to put jobs at the heart of his presidency, March’s drop in non-farm payroll will bring both surprise and concern, especially with price growth on the rise,” said Dennis de Jong of forex trading platform UFX.
“Uninterrupted jobs growth since last August, combined with rising inflation and accelerating wages, contributed to the rate increase at the most recent Fed meeting.
“The Fed has forecast two more rises in 2017, and while this will please savers, Trump will likely have to deal with the political fall-out as consumers begin to feel the pinch," de Jong said.
Meanwhile, oil stocks were expected to defy the market trend when trading starts in reaction to the US launch of 59 cruise missiles at a Syrian airbase, which was in response to a chemical weapons attacks by Syria earlier in the week.
“Risk assets are understandably bid on the addition of a new dimension to geopolitical risk, but equities are far from suggesting panic just yet. Investors are perhaps taking solace from a willingness to intervene suggesting he's (Trump’s] not so inward looking, suggested mike van Dulken at Accendo Markets.
1.35pm.. Huge undershoot on US jobs creation, dollar tumbles
Non-farm payroll data shows 98,000 new jobs were created in the US in March., the smallest gain in almost a year and 90,000 below consensus forecasts.
Recruitment slowed after a strong start in 2017 said economists. Unemployment rate fell to 4.5%.
1.05pm... Watch:Panmure's Hodgson on the huge diamonds being found in Lesotho
Kieron Hodgson, commodities and mining analyst at Panmure Gordon, discusses with Proactive Gem Diamonds Limited's (LON:GEMD) recovery of a 114 carat, D colour Type II diamond from their Letšeng mine as well as a recovery by Firestone Diamonds PLC (LON:FDI) of one of their largest rocks to date from their flagship Liqhobong diamond mine.
12.20pm...Lloyds sets aside £100mln for HBOS fraud
Lloyds Banking Group plc (LON:LLOY) said today it will set aside £100mln to compensate victims of fraud at its HBOS sUBSidiary.
The fraud involved two former bankers at the HBOS Reading branch who helped siphoned off money from struggling businesses, which were clients of the business.
Shares eased a few pence to 63.2p.
12.00 noon...FTSE 100 makes ground as attention swings to US jobs
London’s blue chips were starting to make good ground ahead of the non-farm payrolls figures at lunchtime.
FTSE 100 was eleven points higher at 7,314 as markets shrugged off a US attack on the air base that is said to have been the source the chemical weapons attack earlier this week.
A tweet from the EU president Donald Tusk suggested plenty of support for the US action.
US strikes show needed resolve against barbaric chemical attacks. EU will work with the US to end brutality in Syria.
— Donald Tusk (@eucopresident) 7 April 2017
Gold rocketed higher after air strike with the precious metal adding US$13 to US$1,265 close to its high for the year.
Randgold Resources PLC (LON:RRS) jumped 2.7% to 7,295p and Fresnillo PLC rose 1.5% to 1,618p.
The mainstream diggers by contrast were on offer early on. Rio Tinto PLC (LON:RIO) fell 1.8% to 3,198p and Anglo American PLC (LON:AAL) dipped 1.6% to 1,225p.
Standard Life PLC (LON:STAN) was given a 1.8% boost by RBC, which upgraded the stock. Shares rose to 362.3p.
Among the small caps, PCI-PAL PLC (LON:PCIP) rose 15% to 43.6p as it landed orders worth in excess of £550,000 with a couple of unnamed multi-nationals.
“"We continue to see the market waking up to the effects of cybercrime and with the imminence of the General Data Protection Regulation driving PCI compliance we are well placed to capitalise on the opportunity. We look forward to updating the market in due course on further anticipated contract awards," said William Catchpole, chief executive.
A bullish trading update meanwhile ifted Zoo Digital PLC (LON:ZOO) 18% to 15p.
11.20am ...Bank governor Carney calls for fair Brexit deal
Bank of England Governor Mark Carney has called on Britain and the European Union to negotiate a Brexit deal that protects the financial services sector from harm. He urged a deal that recognises each others' bank rules after UK exits the EU. Speaking at the Thomson Reuters London office, Carney also recognised that the BoE and banks needed to be ready for a hard Brexit. He set a 14 July deadline for all cross-border financial firms operating in the UK to present their plans for shielding themselves against any blowout from Brexit. UK financial companies look set to lose their passporting rights, which allow them to conduct business across the rest of the EU. The prospect of this has meant a number of banks have announced plans to move some of their operations elsewhere, including JP Morgan, HSBC, UBS and Citigroup.
11.00am ... Proactive news headlines
StatPro Group PLC (LON:SOG) has agreed to pay £11mln (€13mln) for risk and performance analytics service, UBS Delta - a deal that will be immediately earnings enhancing.
Advanced Oncotherapy PLC’s (LON:AVO) new lender, Bracknor Investment Group, has told the company it will convert another portion of the first tranche of convertible loan notes. Dubai-based Bracknor will convert ten notes, worth £100,000, into AVO shares at 27.89p each – a slight discount to yesterday’s closing price.
Bushveld Minerals Limited (LON:BMN) has completed its long-awaited acquisition of a 78.8% stake in Strategic Minerals Corporation, transforming it into a "significant player in the global vanadium market".
Strategic is the Evraz sUBSidiary that owns the Vametco open pit mine and processing plant , which is already next to to Bushveld's Brits Vanadium project in South Africa.
Shares in Windar Photonics PLC (LON:WPHO) soared in early deals on Friday after the wind sensors maker received a new order for 25 of its WindEYE LiDAR units from a newly-appointed regional distributor in China.
Denmark’s export credit agency, Eksport Kredit Fonden, is providing the financing for the order, which is expected to be delivered in the first half of this year. Once on site, the LiDAR units are expected to be installed and commissioned shortly after. Shares rose 13% to 99p.
10.45am... JPM concerned over ITV ad income
ITV PLC (LON:ITV) was under a little bit of pressure as US broker JP Morgan downgraded to 'neutral ' on the outlook for advertising revenues.
Shares in the Coronation Street and I’m a Celebrity broadcaster dipped by 1% to JPM cautioned that the risk-reward ratio looks ‘less compelling’ in the light of weakening advertising spend. The broker’s target price is 233p each compared to 214p today.
The broker sees ITV's net advertising revenue to decline 4.5% in the current year, compared with the 3% fall it had pencilled in before.
10.25am ... Watch: Cantor's Wahab bullish on Gulf Keystone recovery
'They're cash flow positive ... I would agree they seem to have turned a corner''
''The results were very pleasing and the share price has obviously reacted well this morning''.
Shares rose 1% to 119p.
10.10am... Hornby Plc (LON:HRN) up 9% to 33.5p
#HRN Hornby turnaround plan looks to be working. Recently got my 50-yr old Scalextric out, think I need a newer one! https://t.co/ki3rJ8RWrf
— Jonathon Hopkins (@jonhoppo) 7 April 2017
9.45... Gem unearths another whopper
Gem Diamonds Limited (LON:GEMD) climbed 10% as it announced the recovery of a 114 carat, D colour Type II diamond of exceptional quality from the Letšeng mine in Lesotho.
It’s a big rock, but Letšeng is well-known for the production of large, top colour, exceptional white diamonds.
Since Gem's acquisition of Letšeng in 2006, the mine has produced four of the 20 largest gem-quality white diamonds ever recorded.
9.15am... US non-farm payrolls at 1.30pm
"Attention will primarily be on the US jobs report, particularly the closely watched NonFarm Payrolls (13:30 BST), which is forecast to slow to 180K in March from February’s expectation-beating 235K.
"The strength of the labour market is one of the key factors the Fed watches when deciding whether to raise interest rates. The release usually prompts volatility in the dollar," Caxton FX morning report.
8.45am...FTSE 100 barely registers the Syria missile strikes
The Trump administration’s missile attack on Syria didn’t provoke quite the market reaction predicted as the FTSE 100 dropped just eight points to 7,294.76.
The diplomatic wrangling and recriminations after the strikes didn’t seem to perturb London traders who had one eye upcoming data.
There will be a big batch of UK stats to digest before the US pointers are released at 1.30pm, with industrial and manufacturing production both due for release at 9.30am together with the latest trade numbers.
March’s US jobs update could be pivotal to the direction of the markets. February was another good month for job creation in the US, with non-farm payroll growth of 235,000 beating expectations, while the unemployment rate stayed at 4.7%.
Turning to the main market movers, Standard Life (LON:STAN) was given a 2.5% boost by RBC, which upgraded the stock.
The rise in the price of gold in the wake of the US move against Syria helped Randgold Resources (LON:RRS), a miner of the precious metal.
The mainstream diggers by contrast were on offer early on.
Among the small-caps, StatPro was up 9% after announcing an immediately earnings enhancing £11mln acquisition from UBS.
Gem Diamonds (LON:GEM), meanwhile, was given a boost after finding a 114-carat stone.
6.45am...FTSE 100 set for a down day
The FTSE 100 looks set to open in negative territory following the US air strikes on Syria overnight.
“The action adds a complexity to geopolitics that wasn’t there before given Russia’s support for Syria and Trumps pre-election pledges to try and repair relations with Putin,” said Michael Hewson of CMC Markets.
The index of blue chip shares is primed to fall 22 points to 7,281.2 at the open, according the spread betting firms.
Asia’s main indexes other than Japan caught the fall-out as they receded, while there was a switch into safe haven investments such as government bonds. The price of gold, another go-to in times of trouble, was up strongly.
Data heavy day
In the absence of almost any corporate news on Friday, the focus will be squarely on some major economic data, most importantly the March US jobs report.
February was another good month for job creation in the US, with non-farm payroll growth of 235,000 beating expectations, while the unemployment rate stayed at 4.7%.
There will also be a big batch of UK data to digest before the US pointers are released at 1.30pm, with industrial and manufacturing production both due for release at 9.30am together with the latest trade numbers.
Howard Archer, chief UK and European economist at IHS Markit expects the UK’s total trade deficit to have edged down to £1.9bn in February, from £2.0bn in both January and December, and £2.4bn in November.
- Gold up US$13.50 at US$1,266.80 an ounce.
- Brent up 83 cents a barrel at US$55.72.
- Pound worth US$1.247
Business headlines
- Barrick Gold, the world’s largest producer of the precious metal, has agreed to sell a 50% stake in one of its biggest mines to a state-backed Chinese company, Shandong Gold, as part of a wider deal aimed at tapping mineral wealth elsewhere in South America – Telegraph.
- North Sea minnow Serica Energy is on the prowl for a North Sea acquisition as its cash pile continues to grow – Telegraph.
- The US conglomerate General Electric is looking to sell its consumer lighting division, which makes bulbs for lamps and car headlights, as well as fluorescent strip lighting for the home – Times.
- Spotify, the world’s most popular music streaming service, is considering a direct listing of its shares on an American stock exchange this year with a target valuation of US$10bn – Times.
- BYD, the Chinese electric car and bus company part-owned by Warren Buffett, is talking to lithium producers in Chile about potential deals to secure supplies of the key battery material – FT.
- The White House has cast doubt on its readiness to deregulate Wall Street by revealing it is still open to a populist proposal to break up big banks that had faded from view since Donald Trump’s campaign – FT.
- Lloyd’s of London, the UK insurance market, has opened an Indian office as part of a broader push into the market by international reinsurers keen to capitalise on the country’s large cities and propensity for catastrophic droughts and floods – FT.
- Ryanair has warned it will have to halt flights from the UK for “weeks or months” if Theresa May does not seal an early bilateral Brexit deal on international aviation – Guardian.