Hammond meets budget deficit target
FTSE closes 11 points up
Banks continue Marcon-fuelled rally
Mining shares fall on Goldman Sachs downgrade
5pm....FTSE 100 closes higher
FTSE 100 finished almost 11 higher after a very strong opening session in the US.
On Wall Street, bolstered by strong earning , the Nasdaq rose above the 6,000 mark while e the Dow Jones is currently ahead by 242 points at 21,006.
Britain's blue-chip benchmark kept amore steady pace on the day and closed up 10.96 at 7,275.
The biggest gainer was Hikma Pharmaceuticals (LON: HIK), which added 3.42% to 1,905p. On the losing front Premier Inn owner Whitbread plc (LON:WTB) was the biggest laggard, shedding 7.13% to 4,000p.
Despite reporting rises in revenue and profits in annual results, it said it remained "cautious" about its prospects for the next 12 months.
2.55pm... Nasdaq surpasses 6,000 for the first time ever
The Nasdaq has hit a major milestone, exceeding 6,000 points for the first time ever. The index is trading at 6,020.74 on hopes that US President Donald Trump will announce tax cut plans.
NASDAQ Rises Above 6,000 For The First Time Ever pic.twitter.com/PBxoEjsEd3
— Play Resilience (@PlayResilience) 25 April 2017
13.20pm... Nestle to cut jobs
Nestle is planning to cut 298 jobs as part of a restructuring at its UK sites. Most of the job losses will be in York and Newcastle, the GMB and Unite unions said. The confectionary giant also plans to move production of the Blue Riband chocolate biscuit to Poland.
Confectionery giant Nestle planning to cut 298 UK jobs and move production to Poland. pic.twitter.com/sHcGQTvTNn
— Brexitshambles (@brexit_sham) 25 April 2017
12.14pm...Banks hold gains after French election
Bank shares have continued to advance after yesterday’s French election boost. Pro-EU Centrist leader, Emmanuel Macron, is the favourite to win the French presidential election after making it through to the second round with far-right leader Marion Le Pen.
HSBC Holdings plc (LON:HSBA), Barclays plc (LON:BARC) and Lloyds Banking Group plc (LON:LLOY) rallied, joining gains in Europe’s banking sector.
Deutsche Bank said: “In France, the first round of the presidential election ruled out the least market-friendly outcome, and although eurosceptic Marine Le Pen is in the run-off as expected, polls suggest reformist Macron should win.”
11.38am... FTSE 50 points way from level at snap election news
The FTSE 100 has gathered strength as it approaches lunchtime, rising 17 points to 7,282.63.
"That leaves the UK index within 50 points away from where it was before Theresa May’s snap election announcement last Tuesday, with a full recovery likely dependent on how long trading is driven by the French election result," said Connor Campbell, financial analyst at Spreadex.
On the euro's rally after Emmanuel Macron made it to the second round of the French presidential election with Marine Le Pen, he said: "The latest opinion polls have Macron crushing Le Pen with more than 60% of the vote; however, the far right has continually beaten the odds in the last year and a half, so there could still be some more volatility in store before May’s second election."
10.45am...Pound strengthens against dollar
The pound is up 0.21% versus the dollar at US$1.2823 ahead of further details of US President Donald Trump's fiscal plans. Sterling is still down against the euro (0.2% to €1.1773) after investors cheered news that Emmanuel Macron came out on top in the first round of the French presidential election.
If the pound rallies in the next few days the FTSE 100 will underperform and the index could decline $GBPUSD #FTSE pic.twitter.com/vwLv0eDI3V
— Better Trader (@Better_Trader) 25 April 2017
10.00am...Hammond reaches budget deficit target
Chancellor Philip Hammond has met his budget deficit target in the 2016/17 financial year, according to the Office for National Statistics. The shorfall in the public accounts in the year to the end of March came to £52.0bn, down 28% from the previous year, as the economy proved resilient after June's Brexit vote.
At 2.6% of gross domestic product in the 2016/17 financial year, the deficit was in line with the latest forecast from the Office for Budget Responsibility.
"Essentially meeting the revised 2016/17 fiscal target is a boost for the Chancellor’s credibility after it took a knock after he swiftly and embarrassingly scrapped his March budget plans to raise national insurance contributions for the self-employed," said Howard Archer, chief UK and European economist at IHS Global Insight.
He added that it seems unlikely that the Conservatives would significantly change their overall fiscal stance if they are re-elected in June’s snap general election. "However, it is possible that the Conservatives will make some significant policy adjustments while maintaining their overall fiscal stance. Of particular note, the Chancellor has indicated that his setting of fiscal policy is hampered by pledges made by the Conservatives in their 2015 election manifesto not to raise income tax, national insurance or VAT, and the government needs flexibility on taxes."
09.45am...Miners fall on Goldman Sachs downgrade...
Mining shares are in the red after Goldman Sachs said in a note that it thinks falling commodity prices and tightening conditions in China will hit the sector.
IG's Chris Beauchamp said: "The FTSE 100 has managed a small gain this morning despite a downgrade to its heavyweight mining sector by Goldman Sachs, which has caused the likes of BHP Billiton and Anglo American to give back the gains made yesterday.
"The immediate impact of Macron’s first-round success is wearing off, but the relief is still palpable among investors."
9.15am...Proactive news headlines...
OptiBiotix Health plc (LON:OPTI) saw a sharp increase in revenue in the year to 30 November 2016 but from a very small base. Revenue rose to £288,119 from £28,200 the year before. The loss before tax was more or less steady at £1.52mln, compared to £1.42mln the year before.
Sound Energy PLC (LON:SOU) has expanded its relationship with the oil services giant Schlumberger. The deal will see the AIM-listed gas exploration and development group receive a free carry on a US$27mln geophysical programme.
Fuel cell specialist AFC Energy plc’s (LON:AFC) collaboration with Italian industrial technology firm De Nora has moved into a second phase following the completion of the first. The two now expect to finalise the design of a commercial fuel cell electrode and stack during the current year.
Internet domain name owner and operator Minds + Machines Group Ltd (LON:MMX) has seen registrations rise more than 40% year-on-year in the year to date. Last year, billings doubled to US$15.8mln from US$7.9mln in 2015.
Industrial Internet of Things (IoT) enabler Telit Communications Plc (LON:TCM) remains on track to deliver double-digit percentage revenue growth this year.
08.42am...FTSE more subdued after yesterday's rally
After a storming start to the trading week, which saw the FTSE 100 rally 150 points, or more than 2% on Monday after the first round of the French election, the mood in London the day after was far more subdued.
For the index of blue-chip stocks advanced just 5 points to 7,270.07 with traders in reflective mood now Frexit has seemingly been averted.
Shares in the budget hotels and Costa Coffee group Whitbread (LON:WTB) fell 5% as sales growth slowed.
CLICK HERE: For a daily round-up of all the Proactive news
“One big issue is the growth of artisan coffee – smaller independent outlets are a bit more fashionable these days, which is denting growth prospects at Costa,” said Neil Wilson of the spread betting firm ETX Capital.
“The other is rise of Airbnb and its ilk, which is crimping growth at the Premier Inns hotel chain.”
The miners were also on offer with Anglo American (LON:AAL) down 2% and the sector’s leading faller.
Wealth manager St James’ Place (LON:STJ) led the leader board after posting its first quarter new business numbers – although the advance was a mere 1%.
Among the small-caps Collagen Solutions (LON:COS) stood out with a 5% rise after a strong trading update.
6.45am...modest gain predicted
The Footsie is expected to push more modestly higher in early deals following yesterday’s surge and strong showings overnight from US and Asian markets on a relief rally following the victory of centrist candidate Emmanuel Macron in the first round of the French presidential election on Sunday.
Spread betting firm CMC Markets expects the FTSE 100 index to open up around 17 points at 7,281, having soared 150 points higher yesterday.
CLICK HERE: For a daily round-up of all the Proactive news
Overnight on Wall Street, the Dow Jones leapt 206 points, up 1.1% higher to close at 20,763, while the tech-laden Nasdaq composite climbed 1.2% to a record high. And Asian equities also advanced today, with Japan’s Nikkei 225 benchmark adding 0.8%.
US president Donald Trump's promise of an announcement on a tax reform plan on Wednesday also provided further impetus to markets.
Michael Hewson, chief market analyst at CMC Markets UK, said: If yesterday’s market reaction is any guide it would appear that investors have made up their minds already as to the result of the French election on May 7th”
On the currencies front, the euro hit a six month high yesterday but came off that peak overnight, while the pound was caught up in the turbulence of the euro surge slipping back a touch despite manufacturing data showing optimism over future factory output at a twenty year high.
Today’s UK public finance data for March is expected to show an increase from the £1.1bn in February to about £2bn keeping the government on course to reducing its overall borrowing on an annualised basis.
On the corporate front, FTSE 100-listed leisure group Whitbread plc (LON:WTB) will deliver full-year results which are expected to show revenue and profits frothing higher.
Credit Suisse predicts Whitbread reporting adjusted pre-tax profit of £567mln, compared to £546mln the previous year, with revenue is expected to rise to £3.1bn from £2.9bn.
Elsewhere, blue chip wealth manager St James’s Place PLC (LON:STJ) is expected to have seen the very strong end to last year to have carried over in to the current first-quarter, with equity markets relatively favourable.
In a preview, analysts at Barclays Capital expect St James’s Place to report a 16% increase in first-quarter sales to £2.8bn, with net fund flows of £1.5bn, an assets under management increasing to £78bn.
And challenger lender Virgin Money PLC (LON:VM.) – which is seen as a likely bidder for the troubled Co-op Bank – will also unveil a first-quarter trading update today.
Significant announcements expected on Tuesday:
Trading Statements: Elementis PLC (LON:ELM); St James's Place PLC (LON:STJ), Virgin Money PLC (LON:VM.)
Interims: Apax Global Alpha Ltd (LON:APAX)
Finals: Circassia Pharmaceuticals PLC (LON:CIR); Havelock Europa plc (LON:HVE); Minds + Machines Group Ltd (LON:MMX); OptiBiotix Health plc (LON:OPTI); Redstoneconnect PLC (LON: REDS); Whitbread plc (LON:WTB)
Around the markets:
- Sterling: US$1.2825, up 0.23%
- Gold: US$1,273.00 an ounce, down 0.2%
- Brent crude: US$49.43 a barrel, up 0.3%
City Headlines:
- Vodafone wastes millions on thwarted pay-TV ambitions – Daily Telegraph
- Elliott Advisors reveals a stake in WS Atkins days after takeover offer accepted – Daily Telegraph
- Johnston Press plans all-cash bonuses for Bosses as it battles to restructure debts – Daily Telegraph
- Investor pressure grows on ExxonMobil over climate action – Financial Times
- Albertsons explores bid for high-end grocer Whole Foods - Financial Times
- Weatherbys Private Bank aims to double client base and loan book – Financial Times
- US to impose new tariffs on Canadian lumber exports – Financial Times
- Canada’s Tim Hortons coffee chain to open first UK shop in May – The Guardian
- Woolworths set for shock return to the high street – The Scotsman