FTSE 100 closes up 20 at 7.531
FTSE 250 adds over 18 at 19,988
Firmer metal prices lift miners
Pound touch lower vs. dollar, flat vs. euro
FTSE 100 pushed higher on Monday creeping towards new highs, bolstered by miners.
The UK blue-chip index, which has a large contingent of resource stocks, closed out at 7,531 - up over 20 points.
The previous record close was 7,547, while the highest intraday level reached in June 2 was 7,598.
The iron ore price rose in china overnight, which sent big cap players higher. Top riser was Anglo American plc (LON: AAL), up 3.11% to 1,310p, while Glencore (LON:GLEN) took the number two spot, adding 2.59% to 346.55p.
Rio Tinto (LON:RIO) was at number three - up 2.57% to 3,637p.
In the currency markets, the pound lost 0.23% against the Euro, and down 0.16% against the dollar.
Paddy Power Betfair was the biggest loser on Footsie, crashing 4.67% lower to 7,550p after shock news that its CEO Breon Corcoran plans to step down.
Non-executive director Peter Jackson, currently chief executive officer of soon-to-be taken over payments services provider Worldpay Group PLC (LON:WPG), will become the new boss of the bookie when Corcoran leaves.
In the US, stocks continued the rally, with the Dow Jones hitting a new record.
4pm: Bitcoin value hits new records
The value of Bitcoin jumped to a record high today, topping US$3,451.86 (£2,651) per coin, according to the Coindesk Bitcoin Price Index, the BBC reported.
The virtual currency had never crossed the US$3,000 mark until this weekend. The market value of all bitcoins in existence has now surpassed US$56bn (£43bn).
Bitcoin tops $3400 as investor confidence boosts it to record high - CNBC - https://t.co/BaywcF60Iw pic.twitter.com/lUFKKfsAiR
— Crypto Broker (@CryptoBrokerIO) 7 August 2017
The surge followed a month of turmoil for the virtual currency and the creation of a spin-off crypto-currency, Bitcoin Cash last week.
The new crypto-currency is trading well below the peak price of US$727.54 (£557) per coin hit on August 2.
The total market capitalisation for all crypto-currencies - including Ethereum and Litecoin - was close to $118bn on Monday, according to the BBC.
3.15pm: FTSE 100 pushes higher
The Footsie pushed back up towards session highs in late afternoon trading, although it remained stuck in a tight trading range, lifted by a modestly firmer open on Wall Street, with mining stocks supported by higher metal prices.
Around 3.10pm, the FTSE 100 index was ahead 19 points at 7,531, just below the early session peak of 7,533.74 and well above the day’s low of 7,511.71.
In early New York trading, the Dow Jones once again extended its recent records, albeit in subdued fashion, adding 12 points at 22,105, with both the broader S&P 500 and tech-laden Nasdaq Composite both higher as well.
The advances again reflected Friday’s better than expected US July jobs report, but there was some underlying caution as investors awaited a pair of Federal Reserve speakers on Monday.
Craig Erlam, senior market analyst at Oanda said: "Neel Kashkari and James Bullard are both scheduled to speak today and I would be surprised if their concerns will have been eased by Friday’s numbers.
“That said, with only Kashkari being a voting member on the FOMC and a known dove, there may be little to take away from the comments, unless of course he either strikes an unlikely hawkish tone or suggests others are coming around to his way of thinking.”
On currency markets, after falls on Friday undid some of the week’s earlier gains, the pound was flat against the dollar today at US$1.3029, but fell 0.2% against the euro to €1.1051.
Miners top three FTSE 100 gainers
In London, miners occupied the top three spots on the FTSE 100 gainers board, with Anglo American PLC (LON:AAL) adding 2.9% at 1,307.5p, Glencore PLC (LON:GLEN) up 2.4% to 344.95p, and BHP Billiton plc (LON:BLT) ahead 2.2% at 1,395.5p.
But among the blue chip fallers, Paddy Power Betfair plc (LON:PPB) was the worst off, shedding over 6% to 7,435p after the shock news that its CEO Breon Corcoran plans to step down.
Non-executive director Peter Jackson, currently chief executive officer of soon-to-be taken over payments services provider Worldpay Group PLC (LON:WPG), will become the new boss of the bookmaking group when Corcoran leaves.
With little other corporate news around, a smattering of broker comment provided some interest.
Mid-cap defence firm QinetiQ Group PLC (LON:QQ.) gained 43.8% at 243.7p after Goldman Sachs raised its rating for the firm to ‘neutral’ from ‘sell’.
Blue chip ConvaTec Group PLC (LON:CTEC) was also a good gainer, adding 1.8% to 289.7p as Canadian broker RBC Capital upgraded its rating for the wound dressings manufacturer to ‘outperform’ from ‘sector perform’.
And small cap Directa Plus Plc(LON:DCTA) was the London market’s biggest riser, leaping 31% higher to 42p after Cantor Fitzgerald upgraded its rating for the graphene products supplier to ‘hold’ from ‘buy’, with an 80p price target, saying the small cap firm is “profoundly” undervalued at its current share price.
1.50pm: Oil price going south
Although strength in mining stocks thanks to gains in base metal prices continued to support the FTSE 100 index in early afternoon trading, weaker oil prices were a slight concern.
Crude prices backed away from nine-week highs struck last week as worries lingered over high production from OPEC and the United States, with Brent down around 1.1% to US$51.82 a barrel.
That was more than US$1.00 below the levels hit last week, which marked their highest since late May, when oil producers led by the OPEC cartel extended a deal to reduce oil output by 1.8mln barrels per day (bpd) until the end of next March.
Officials from a joint Opec and non-OPEC technical committee are meeting in Abu Dhabi today and tomorrow to discuss ways to boost compliance with the deal.
Meanwhile US oil production hit 9.43mln bpd in the week to July 28, the highest since August 2015 and up 12% from its most recent low in June last year.
U.S. oil production has risen steadily over the past several years, despite the decline in oil prices https://t.co/9eM5Wsn5uc pic.twitter.com/K3mMn6iH5d
— St. Louis Fed (@stlouisfed) 7 August 2017
But despite the slide in crude, blue chip oil majors Royal Dutch Shell PLC (LON:RDSA) and BP PLC (LON:BP.) both managed modest gains of 0.7% to 2,198p and 0.6% to 465.9p respectively.
Around 1.50pm, the FTSE 100 index was ahead about 11 points at 7,523, midway between session highs and lows of 7,533.74 and 7,511.71 respectively.
12.20pm: Unexciting session
Connor Campbell, financial analyst at Spreadex said: “The FTSE is far flatter than where it started the session, the index now sitting basically unchanged at 7520."
He added: "One could argue it should be higher given that its key oil and mining stocks are up anywhere between 0.5% and 2.3% – this despite Brent Crude falling 1.2% and a flaccid performance from copper – and that sterling has had such a limp morning, rising 0.1% against the dollar but down 0.2% against its nemesis the euro.
“However the FTSE is less than 100 points from its all-time peak, a fact that may have some investors questioning its value.”
Campbell said: “Those hoping for a bit more excitement this afternoon look set to be out of luck. There’s nothing of note on offer from the US, explaining why the Dow Jones is expected to open just 20 points higher after the bell. Still, that would push the Dow above 22100, so the index can’t have too many complaints.”
11.45am: Bets offs for Paddy Power Betfair
Paddy Power Betfair (LON:PPB) was the biggest FTSE 100 faller in late morning trading, shedding 5.4% to 7,490p after the shock news that its CEO Breon Corcoran plans to step down.
In a note to clients, analysts at Davy Research said: "The decision by Breon Corcoran to step down as Paddy Power Betfair CEO has come earlier than most would have expected."
They added: "The timing is certainly less than ideal given the particularly noisy regulatory backdrop at present and the fact that the group is yet to complete its major platform migration project.”
Non-executive director Peter Jackson, currently chief executive officer of payments services provider Worldpay Group PLC (LON:WPG), will become the new boss of the bookmaking group when Corcoran leaves.
Paddy Power Betfair: Game-on for new CEO https://t.co/ePM3vOhZiJ pic.twitter.com/ozIiNbylsI
— Mike van Dulken (@Accendo_Mike) 7 August 2017
The announcement came a day ahead of the announcement of Paddy Power Betfair’s half-year results, and the betting group said it expects full-year underlying earnings (EBITDA) will fall somewhere between £445mln and £465mln.
Approaching lunchtime, the FTSE 100 index was still around 6 points higher at 7,517, just above the session low of 7,511.71 and well below the day’s peak of 7,533.74.
11.00am: Footsie off highs
Gains by mining stocks was the main factor supporting the FTSE 100 this morning, with a rise in Steel and Iron Ore prices pushing the sector higher, although the index drifted off highs.
Around 11am, the UK blue chip index was ahead 6 points at 7,517, just above the session low of 7,511.71 and well below the day’s peak of 7,533.74.
Joshua Mahony, market analyst at IG, said: “New Chinese regulations over capacity curbs in the winter means that buyers are now pushing their demand forward somewhat, driving Chinese steel futures to their highest level in more than four years, while Iron Ore rose 7% overnight.”
Among the top FTSE 100 gainers, Anglo American PLC (LON:AAL) took on 2.2% at 1,299p, Glencore PLC (LON:GLEN) rose 2.1% to 344./75p, Rio Tinto PLC (LON:RIO) added 1.5% at 3,598p, and BHP Billiton PLC (LON:BLT) gained 1.4% at 1,384p.
On currency markets, the pound remained flat versus the dollar at US$1,3054 having seen gains last week eroded on Friday after strong US jobs data, while against the euro, sterling was off 0.1% at €1.1063.
10.10am: Modest gains maintained
The Footsie held firm in mid-morning trading, boosted by strong gains from heavyweight mining stocks as copper prices edged higher, and by a slightly easier pound.
Around 10am, the FTSE 100 index was ahead 14 points at 7,525, just below the early session peak of 7,533.74.
On currency markets, sterling was flat against the dollar at US$1,3048 having seen gains last week eroded on Friday after strong US jobs data. Against the euro, the pound was down 0.2% at €1.1060.
We maintain view #UK #house #prices unlikely to rise more than 2% over 2017 after #Halifax report prices up 0.4% m/m in July & 2.1% y/y
— Howard Archer (@HowardArcherUK) 7 August 2017
Today’s UK economic data showed house prices rose at their slowest pace in more than four years in the three months to July as households felt the pinch of inflation which is rising faster than wages, according to Halifax.
The mortgage lender’s latest survey said average house prices in the period were up 2.1% than a year earlier, slowing from a 2.6% increase in June, and down from growth of more than 8% in July last year, but above forecasts for 2.0%.
In July alone, UK house prices rose by 0.4%, partially recovering from a monthly fall of 0.9% in June and slightly stronger than a median forecast for growth of 0.2%.
Howard Archer, chief economic advisor to the EY ITEM Club, said: “This was also the fourth successive month that house prices had edged down on a three-month/three-month basis, the first time this has happened since 2012.”
He added: “The fundamentals for house buyers are likely to remain weak over the coming months with consumers’ purchasing power continuing to be squeezed by inflation running higher than earnings growth. Additionally, housing market activity is likely to be hampered by weakened consumer confidence and limited willingness to engage in major transactions.”
8.20am: Positive open
The FTSE 100 got off to a positive start as it added 21 points in the first 20 minutes of trade to move to 7,532.45.
The index of blue-chip shares built on the momentum in Asia overnight as China appeared to take a stronger line on North Korea. There was also some follow-on in the region from strong US jobs figures on Friday.
In Germany this morning, factory output disappointed, although this is unlikely to impact British stocks.
We have UK house price data later provided by the Halifax, with the market anticipating a bounce back in activity if the early performances of Barratt Developments PLC (LON:BDEV) and Taylor Wimpey PLC (LON:TW.) are anything to go by. They were up 1.9% and 1% respectively. The miners were also ‘well bid’.
The change of leadership at bookmaker Paddy Power Betfair (LON:PBB) didn’t appear to go down well with the City with the shares off 3.7%.
Proactive news headlines:
Industrial Internet of Things specialist Telit Communications (LON:TCM) has been hit by delayed US certifications for long term evolution (LTE) wireless communication products. Shares down by a third this morning.
eSports business Gfinity PLC (LON:GFIN) is to take its flagship gaming tournament to the other side of the world after a successful debut here in London. Australia will be the second territory to host the Elite Series after the AIM-quoted group inked a joint venture agreement with HT&E Ltd (ASX:HT1) and IKON Media & Entertainment.
Aussie sapphire and gemstone group Richland Resources Ltd (LON:RLD) reported a 66% rise in total income for the first half of 2017, with a tally of US$1.18mln versus US$710,000. It achieved revenues of US$341,000 from sapphire sales in the first quarter, and US$689,000 in the second.
Avacta Group PLC (LON:AVCT) said it is making “significant technical and commercial” headway with its Affimer technology as it updated on its progress. Affimers are small, engineered proteins, some of which are of human origin and some of plant origin, and are capable of binding specific molecular targets in a similar way to antibodies..
Premier African Minerals Limited (LON:PREM) has identified a potential new zone of lithium at its Zulu deposit in Zimbabwe, which it said may be larger than the current resource. At present, Zulu has a resource of 20.1 mln tonnes at a grade of 1.06% Li₂O (lithium dioxide) including 7 mln tonnes grading 1.5% Li2O and an exploration target of 60-80 mln tonnes.
W Resources PLC (LON:WRES) has announced the award of the crusher plant contract for its La Parrilla Project in Spain to a subsidiary of Finland’s Metso Corporation for €1.2mln.
Drilling has restarted at Metal Tiger PLC’s (LON:MTR) Kalahari copper belt joint venture after its Environmental Management Plan received the green light from the Botswana Department of Environment. Metal and its JV partner MOD Resources Ltd (ASX:MOD) had been waiting on the approvals, which have now been granted through to the end of 2018.
ITM Power PLC (LON: ITM) will be launching a series of large scale refuelling station designs at the Hydrogen + Fuel Cells North America trade fair in response to industry demand for larger scale industrial installations.
Mosman Oil & Gas Ltd (LON:MSMN) gave investors an update as efforts to grow production continues at its new projects in America. The AIM-quoted oil minnow said that production at the Strawn project, in Texas, amounted to 440 barrels (gross) in the month of July, it also noted there was a second shipment and sale of oil (amounting to 177 barrels) and it had 650 barrels left in its inventory.
IronRidge Resources Limited (LON:IRR) chief executive, Vincent Mascolo, said he was “excited” at the rapid exploration progress it is making at its Bodite Project based in the Ivory Coast. Grades of up to 3.9 grams per tonne (g/t) of the precious metal were found.
KEFI Minerals PLC (LON:KEFI) has noted that Ethiopia has lifted the state of emergency implemented in October 2016. The junior recently agreed a finance package for the construction of the bulk of its Tulu Kapi gold mine in the country.
6.45am: Bright start predicted
London is set for a bright start after a good close in the US on Friday and strong gains overnight in Asia.
Financial spread bet firms predict FTSE 100 will open up to 20 points higher to follow on the 37 point gain on Friday to 7.512.
Wall Street led the way after the better-than-expected non-payrolls number, while Asian markets rallied as China indicated it might be running out of patience with its near neighbour and ally North Korea.
More sanctions were also imposed by the UN, though it is China that is the key.
Asian markets reflected some hope that North Korea might listen with strong gains in Hong Kong and Tokyo, though Shanghai was little changed.
Events this week include a two-day OPEC meeting that starts today in Abu Dhabi.
A key topic will be adherence to the current output agreement that also includes Russia, which seems to have had little impact on production so far.
Light crude (WTI) is trading at around US$49.40 a barrel and Brent crude US$52.24.
Commodities/currencies
- £/$: 1.3052 - £ slightly higher
- Oil (WTI): US$49.41 down 17c
- Gold: US$1,263 down US$1
City headlines
The Times
B&Bs try to make online travel giants do it by book: The UK Bed & Breakfast Association is taking on the might of the big American online travel agents.
All to pay for as web rivals tackle Sky and BT for Premier League rights: BT and Sky are paying a combined £1.7bn per season for live domestic rights for the Premier League until 2019; the problem, however, is that they are not alone.
Pressure rises on Libor trials witness: More traders have come forward to complain about the expert witness in the Libor trials. The Metropolitan Police has had four requests to investigate Saul Haydon Rowe, the prosecution witness paid for by the Serious Fraud Office, over allegations including perjury and fraud.
Private equity dips into a $15bn well to splash out in North Sea: The oil industry should welcome cash-rich private equity buyers to the North Sea with open arms, a consultancy has claimed.
Energy review to ignore price caps, profits and smart meters: The business department said that Dieter Helm would lead the review, promised in the Conservative manifesto.
£200mln helps housebuilder Avant Homes push itself forward: Avant Homes has secured a £200mln overdraft as it tries to re-position itself among Britain’s biggest housebuilders.
British industry demands German levels of state support: Manufacturers believe that the support they get from the government lags far behind levels found in Germany.
Rolls-Royce calls for Britain to stay in Euratom and EU aviation agency.
Barclays pensions ‘safe’ under new shortfall deal: The Chairman of the Barclays staff pension scheme has defended a deal that has allowed the bank to dramatically reduce and delay rescue payments to repair the shortfall in the scheme.
The Independent
Millions finding it harder to get a GP appointment, new analysis shows
Google ‘anti-diversity manifesto’ sparks backlash among employees: A widely shared internal Google memo arguing against gender diversity had prompted outrage from certain staff and members of the public.
‘Remove A Tenant’ eviction company compares UK renters to vermin.
Financial Times
Trump administration submits a notification to withdraw from the Paris climate agreement reached in 2015.
Shell and BP’s reaffirm commitment to North Sea oil.
Global wealth managers feel the squeeze.
Financial institutions have been whacked with more than $150bn in fines in the US relating to misdemeanours that led to the credit crunch.
GSK boss vows to focus on potential big hitters in its R&D pipeline.
Wandsworth council seizes over a hundred rental cycles, calling them a “yellow bike plague”.
The Daily Telegraph
Real danger for City is slow suffocation, not cliff-edge Brexit, warns finance chief: A cliff-edge Brexit in early 2019 would pose serious dangers to the whole European financial system and will be avoided at all costs by both the British Government and EU authorities, the City of London’s top financial consortium has concluded.
Leading US biotech Bluebird eyes UK launch for pioneering gene therapies.
Towergate owner to consider IPO when new group is a ‘monster’: The boss of a UK insurance giant created by the merger of Towergate and four others has said the group will discuss the possibility of an initial public offering when it is a “monster” next year.
The Guardian
UK consumers cut spending on clothes, cars and foreign travel.
Staff at Tesco-owned One Stop demand better redundancy deal: Head office staff at the Tesco-owned One Stop convenience chain are fighting for a better redundancy package
Trailfinders blames Brexit vote for wiping out £12mln profit: Trailfinders, Britain’s largest independent travel agent, has blamed Brexit for wiping £12mln off its annual profit.
Banks issue new sort codes in ring-fencing of high street operations: Barclays has started the process of moving up to 900,000 accounts to alternative six-digit sort codes as it prepares for the implementation of regulations intended to avoid taxpayer bailouts.
Trial to phase in hydrogen as fuel to begin in north-west: Liverpool and Manchester are to be the testbed for an ambitious £600mln project aiming to solve the thorny problem of how the government cuts the carbon footprint of the gas that heats most of Britain’s homes.
Daily Mail
Thames Water turns its back on Cayman Islands after paying no corporation tax for a decade: Controversial Thames Water could soon sever its links with the Cayman Islands as it seeks to repair its reputation.
Worldpay boss Philip Jansen set for £9mln salary in return for staying on after US takeover
FCA launches crackdown on crowdfunding amid fears over transparency
More than 1,000 jobs to go at Sainsbury’s HQ as part of £500mln cost-cutting drive: Sainsbury’s is axing more than 1,000 jobs at its head office as part of a £500mln cost-cutting drive.
Glencore bosses’ £600mln windfall having invested in emergency fundraising scheme in late 2015: Glencore’s senior bosses are in line for a £600mln windfall after backing the company when it looked to be on its last legs.
Daily Express
Chinese billionaire targets Manchester United shares in mammoth deal, reports suggest: A mystery Chinese investor is thought to be interested in purchasing a stake in Manchester United, according to reports.
The sun is shining again on the UK high street, says Harvey Jones: Retailer Next swung back into fashion with surprisingly upbeat second-quarter results on Wednesday.
Economy set fair for second half of the year as data hints slowdown could be over: The worst of the recent economic slowdown may already be over with stronger data this week pointing to a healthier second half of the year.
City AM
Business output returns to growth due to a manufacturing boom while the services sector lags: British factories are providing a glimmer of hope amid the UK’s gloomy economic outlook, with one closely-watched survey expecting the sector to propel business output back into growth.
Sports Direct boss Mike Ashley takes a shot with a £2mln stake in Goals Soccer Centres: Sports Direct boss Mike Ashley – who has been focused on building what he has termed the Selfridges of Sport – has added to his retail empire.
Jaguar Land Rover boss Ralf Speth’s pay jumps to £5.3mln: Jaguar Land Rover chief executive Ralf Speth pocketed pay totalling £5.3mln in the last year.