FTSE 100 closes down 21.87 at 7,525
Wall Street makes progress
Old Mutual top riser
Despite US shares making gains, FTSE 100 still ended the first day of the new trading week lower.
The UK benchmark closed almost 22 points down at 7,525.
The more domestic company- focused FTSE 250 tanked 134 points to close at 19,868.
Markets are still digesting the myriad of news events, past and forthcoming across the global stage, including a general election in the UK this Thursday.
The biggest gainer was life insurance and investment giant Old Mutual (LON:OML), which added 2.28% to 201.50p, while the biggest laggard was copper giant Antofagasta PLC (LON:ANTO), down 3.54% to 776.50p as the price of the red metal slipped.
On Wall Street, the Dow Jones is up over 14 points at the time of writing, to stand at 21,220.
In the mid-cap world, potash mine developer Sirius Minerals PLC (LON:SXX) added 8.53% to 35 a pop.
It said in a brief stock market statement that another 30 of its stage one financing convertible bonds had been turned into shares.
The convertible bonds, due in 2023, were issued at US$200,000 each and raised US$400mln. This latest conversion means that US$19.8mln of the bonds issued have been converted into shares.
MID-SESSION
FTSE 100 cut its losses though it was still in the red as US markets opened stronger than expected.
After the first 45 minutes, the Dow Jones Industrial Average was a modest five points higher at 21,211 but that was better than expected.
London’s blue chip index was 14 points lower as the political bickering over the London terror attack yesterday moved up a gear with Labour accusing the Prime Minister over cuts to the Met Police’s manpower.
Among the risers, Royal Mail PLC (LON:RMG) was going well as postal service said it had sold a third of the site at Nine Elms, Battersea for £101mln.
Deutsche Bank analyst Andy Chu, meanwhile, pointed out that, while helpful, in his view, property disposals are not that material for Royal Mail.
In a note to clients, the analyst said: “We expect property disposals at RMG but perhaps a little surprised given the softening London property market and that the company does not need the cash given its strong balance sheet. That said it makes strategic sense.”
Shares rose 2p to 441p.
Wolseley PLC (LON:WOS) was another riser as it was upgraded by heavyweight investment bank JP Morgan to ‘overweight’. Shares rose 25p to 5,060p.
Miners were a weak spot with copper specialist Antofagasta PLC (LON:ANTO) hit by concerns over global demand and a slide in the price of the red metal. Shares dropped 3% to 780p
Airlines were also under pressure on terror concerns and the isolation of Qatar by four of its neighbours. EasyJet (LON;EZJ, was the worst performer, easing 42p to 1,346p.
14.14 pm...FTSE 100 drifts as Wall St set for low key start
FTSE 100 was going nowhere in early afternoon trading as investors sat on thier hands in teh face of preductins of a weal start on Wall Street and conflicting poll indicators for Thursday's election.
Wall Street shares are seen starting in the red on Monday, after the non-farm payroll number came in weaker than expected at the tail end of last week but stocks reached new highs.
There had been optimism about the job creation number, with the ADP report flagging up a number of 253,000. In reality, the figure for May came in at 138,000.
Futures suggest the Dow Jones will open down 15 points at 21,191; Nasdaq down 5.5 and the S&P 500 2.20 points lower.
12.15: Ocado runs out of steam after early enthusiasm
Some of the early steam for online grocer Ocado PLC (LON:OCDO) has dissipated as investors have reflected on the lack of detail, but ananlysts say it is still an encouraging move and offers a glimpse of how the future may pan put for the group.
Neil Wilson, senior market analyst at ETX Capital, said: “It’s what investors have been waiting for: Ocado has at long last agreed an international deal with a retailer that it’s been promising to deliver for over a year and a half.”
WATCH: Ocado delivers an international deal, but some nerves over 'devil in the detail'
11.50: Pound rebunds on latest poll
Investors have dismisssed YouGOv's latest poll and focused on instead on the latest Guardian/ISM poll giving the Conservatives an 11 point lead over Labour, said Connor Campbell at Spreadex.
"The pound’s gains also ignored an unexpectedly weak services PMI. The figure fell from 55.8 to 53.8 month-on-month, the slowdown due to the dual pressures of rising inflation and pre-election jitters."
11:31am: Small cap risers
Plexus Holdings PLC (LON:POS) rose 9% to70.5p as oil services group signed a new four-year contract with Danish giant Maersk Oil North Sea UK. The tie-up will see Plexus prepare and provide wellhead and mudline suspension systems on a stand-by basis, ready to be mobilised should Maersk need to drill a relief well during the development of the Maersk Culzean platforms.
Med-tech firm ANGLE PLC (LON:AGL) has uncovered another potential use of its liquid biopsy system after finding success in isolating and identifying tell-tale signs of breast, head and neck cancers. The results of a study to be presented to the prestigious American Society of Clinical Oncology in Chicago point to a potential use in the colorectal cancer. Angle PLC up 4.5% at 55.8p
ITM Power plc (LON:ITM) has £23.02mln of projects under contract, with a further £4.16mln of contracts waiting for sign-off, constituting a pipeline of £27.18mln, up £2.82mln since 18 April. Shares rose 3% to 24.7p.
Waste-to-energy specialist PowerHouse Energy Group PLC (LON:PHE) has secured funding from a “large corporate partner” which has committed up to £500,000 to the AIM-quoted group. Subject to achieving certain performance milestones with its G3-UHt demonstration unit, PowerHouse will receive the cash in two tranches.Sahres rose 9% to 0.82p.
10.30am...FTSE 100 lower as terror attack and polls weigh on investors
The index was 20 points lower at 7,528, as the latest terror attack in London hung over the markets, especially following the move by four Arab countries to sever ties with Qatar over its support of Islamist terrorist groups.
Saudi Arabia, Egypt, the United Arab Emirates and Bahrain have cut diplomatic ties with Qatar following the attack in London that left seven people dead and 48 injured.
Oil rose 1% to over US$50 per barrel on the move by the four Arab states, clipping shares price of airlines such as British Airways owner IAG (LON:IAG) down 1% at 600p and easyjet (LON:EZJ), down 2% to 1,361p.
A new poll suggesting that the Conservatives will not gain an overall majority in Thursday’s election added to the downbeat mood.
YouGov suggests Theresa May will be 18 seats shy of an overall majority when the polls closed.
8.48am... FTSE 100 makes a subdued start following weekend terror attack
The FTSE 100 was subdued following the terror attack over the weekend as it opened almost flat at 7,544.33.
The atrocities on London Bridge and Borough Market, which left seven people dead, put a dampener on sentiment.
However, overall the mood was one of defiance with the capital having been here many times before.
On the markets the miners provided the main drag, with Antofagasta (LON:ANTO) down more than 3%, followed by Anglo American (LON:AAL) as the copper price subsided.
The oilers were little changed on Monday; this in spite of a tick up in the price of a barrel of crude above US$50 after four countries cut ties with Qatar.
Dropping down a division to the FTSE 250, the grocery delivery specialist Ocado (LON:OCDO) jumped almost 5% after it struck a European deal with a mystery retailer.
Among the small-caps, stem cell specialist ReNeuron (LON:RENE) was up 4% after some positive feedback that will help shape a phase III clinical trial of a treatment for those left disabled by stroke.
6,45am...terror attacks the focus
Trading will be overshadowed by third terror attack in the UK in as many months and the second in the heart of London.
Seven people were killed and 48 injured in the attack on Borough Market on Saturday evening. How this may affect the election on Thursday will be become clearer today as hustings resume and more polls are taken. The FTSE 100 is expected to open seven points higher at 7,554, though it is the pound that may bear the brunt of any politcial repercussions from the latest attack. The Conservatives’ lead over Labour has narrowed in recent polls, causing uncertainty over the outcome of the election and putting pressure on sterling. Elsewhere, traders may still be digesting Friday’s US non-farm payrolls report, which was worse than expected. The data comes ahead of the Federal Reserve’s policy decision later this month when they are expected to raise interest rates. On today’s agenda, China’s services activity grew further in May. The Caixin purchasing managers’ index rose to 52.8 from 51.5, above the 50 level that indicates an expansion. The composite PMI, which measures services and manufacturing, edged up to 51.5 from 51.2. Still to come is UK, Europe, US services PMIs, US factory orders data and the European Central bank’s monthly data on quantitative easing.
Headlines
“Enough is enough,” the prime minister Theresa May declared after the latest attack.
Mrs May warned Britain to be prepared for further copycat attacks by a new breed of low-tech terrorists. “Terrorism breeds terrorism,” she said, adding: “We cannot and must not pretend that things can continue as they are,” reports the FT.
Police have carried out fresh raids and detained a number of people this morning in connection with the London Bridge terror attack. Twelve people were arrested on Sunday after an armed raid in Barking, east London. A further raid also took place in East Ham, reports the Telegraph.
Meanwhile, Saudi Arabia has led a group of four Arab states cutting off diplomatic ties with their neighbouring Gulf state of Qatar, declaring that Doha’s regional policies fuel extremism and terrorism. Egypt, the United Arab Emirates and Bahrain on Tuesday also said they would sever diplomatic ties with Qatar, reports the Telegraph.
Elsewhere, the World Bank has upgraded its forecasts for UK growth over the next three years against a stronger global backdrop. Economists at the Bank expect the UK economy to grow by 1.7% this year. This is only slightly below last year’s expansion of 1.8%, and up from a forecast of 1.2% in January, the Telegraph reports.
Commodities/currencies
Gold: up US$3 to US$1,283
Oil (WTI): up 42c at US$48.08
£/$: 1.2876 pound eases