FTSE 100 off 7.60 points
Dow Jones up 34 points after Thanksgiving
Pound up vs dollar, down vs euro mixed
Banks up ahead of stress tests next week
FTSE 100 close lower as PM Theresa May goes to Brussels
Brexit concerns continued to plague the UK markets, with the FTSE 100 closing in the red, after as the pound made some gains against the greenback.
The blue chip index was down 0.10% or 7.60 points at 7,409.64, with retailers losing their shine despite
Prime Minister Theresa May is off to Brussels today to meet European Council President Donald Tusk. Media reports say that May is expected to hike the divorce bill on the table to £40bn in a bid to get the EU to start discussions on trade.
And not helping, were comments made by Bank of England member, Silvana Tenreyro, who told Bloomberg in an interview Friday that two more interest rate hikes may be need to get inflation down to the central bank's target of 2%.
Officers are on scene alongside @metpoliceuk at Oxford Circus. Please continue to avoid the area. Oxford Circus and Bond Street station are closed.
— BTP (@BTP) 24 November 2017
Unlike the US, retailers in the UK were not faring well. And the latest incident at Oxford Street, the hub of shopping in London, will have some impact on shopping.
Metropolitan Police have said that both Oxford Circus and Bond Street tube stations are close. It has advised people to "go into a building" and that officers are on the scene.
No other information are immediately available.
Retailers, were down. Next (LON:NXT) lost 1.80% to close at 4,306.0p, while Marks & Spencer Group PLC (LOND:MKS), lost 0.30% at 297.80p.
3.15pm: FTSE 100 still weak
The Footie remained a touch lower in late afternoon trading despite a positive restart on Wall Street following Thursday’s US Thanksgiving holiday, weighed by sterling gains versus the dollar.
Around 3.10pm, the FTSE 100 index was down about 6 points at 7,411, below the day’s peak of 7,425.19, but above the low of 7,389.54.
On currency markets, the pound was ahead 0.3% against the dollar at US$1.3349, but shed 0.3% versus the euro at €1.11.99.
In early New York trading, the Dow Jones took on 34 points at 23,560, with both the broader S&P 500 and tech-laden Nasdaq composite both also up around 0.1%, although volumes were fairly thin with US markets only open for a half-day.
Craig Erlam senior market analyst at Oanda said: “US investors return briefly from the Thanksgiving bank holiday on Friday, although the session is likely to be very quiet given the early market close and the lack of events on the calendar.
“In the past, this has been a very quiet day and I don’t expect this to be any different.”
In London, banks were higher in afternoon trading ahead of next week’s stress tests results, also benefitting after the Financial Conduct Authority said that all 20 panel banks have agreed to support the London interbank offered rate, Libor, a key benchmark rate used in determining interest on loans, until it is phased out in 2021.
Royal Bank of Scotland Group PLC (LON:RBS) rose 0.6% to 271.3p, while Standard Chartered PLC(LON:STAN) added 0.8% at 742.70p, and Barclays PLC (LON:BARC) gained 0.2% at 189.1p.
2.10pm: Juncker confidence on Brexit progress
European Commission president Jean-Claude Juncker said on Friday he was confident that progress would be made in the EU's divorce talks with Britain, which would allow negotiators to move on to discussing trade from December.
Juncker spoke on the sidelines of an EU summit where leaders of the bloc were meeting their counterparts from countries east of the EU; however, the meeting was set to be overshadowed by discussions about Brexit.
He said he was meeting prime minister Theresa May on December 4, when he will see if sufficient progress has been made on key divorce issues.
On currency markets, sterling was more mixed in afternoon trading, shedding 0.2% versus the euro at €1.1212, but adding 0.2% against the dollar at US$1.3339.
With equities, the FTSE 100 index remained subdued awaiting the restart in New York following Thursday’s US Thanksgiving holiday, with the FTSE 100 index down 4 points at 7,413.
12.15pm: Footsie ticks higher
The FTSE 100 index edged into positive territory in lunchtime trading as traders awaited the New York restart after the US Thanksgiving holiday, with retailers the main focus on ‘Black Friday’.
Around 12.20pm, the UK blue chip index was up about 2 points at 7,419, just below the session peak of 7,425.19, above the day’s low of 7,389.54.
On currency markets, the pound remained pretty subdued, just up 0.1% against the dollar at US$1.3318, and flat versus the euro at €1.1231.
Wall Street will only be opening for a half-day session today, after being closed yesterday, with expectations for a modest gain early on.
James Hughes, chief market trader at AxiTrader said: The volume will return today after the Thanksgiving holiday, but it should still be a subdued session as many in the US are away for the long holiday weekend.
“With that in mind the markets will still open and it will be a case of many traders looking for opportunities now the US has returned to trade.”
He added: “We can expect the volume to be hit and miss now as we get past the Thanksgiving holiday, as Christmas trading now becomes the next hurdle for us to get over.”
11.45am: Monarch slots on the block
Thomas Cook PLC (LON:TCG) found gains this morning on reports the travel firm has bid for Monarch airport slots at London Gatwick after administrators of the collapsed airline retained the rights.
Reuters said a source had told them that Thomas Cook has “expressed an interest," and confirmed that the group had bid for Monarch’s slots at Gatwick but not at London's Luton airport.
In late morning trading, Thomas Cook shares on the FTSE 250 index were 3% higher at 114.7p.
Meanwhile, the FTSE 100 index was hovering around opening levels, down 0.5% at 7,416, having recovered from the session low of 7,389.54 awaiting the post-Thanksgiving restart on Wall Street.
10.00 am: Mortgage lending low
British banks approved the fewest mortgages for house purchases in over a year last month, while existing home owners rushed to refinance loans ahead of the widely expected Bank of England rate rise earlier this month.
Banks approved 40,488 mortgages for house purchase last month, down from 41,576 in September and 3% less than in October 2016. However, the number of remortgages jumped to 34,036 from 30,499.
And so the downturn in mortgage lending begins. Approvals by the main banks down 2.6% m/m in Oct. Leading indicators point to bigger falls ahead: pic.twitter.com/6cnbJpVjCX
— Samuel Tombs (@samueltombs) 24 November 2017
Credit card lending also grew at its weakest rate since December and the overall rate of credit card lending growth slowed, trade association UK Finance said on Friday.
The UK Finance figures showed annual growth in credit card lending slowed to 5.1% in October from 5.5% the month before, and net credit card lending was its weakest since December at £81mln.
At the start of this month the BoE raised interest rates for the first time in a decade, although it also said it expects the pace of further increases to be very gradual.
Earlier on Friday, a survey from polling company YouGov and economics consultancy CEBR showed UK consumer sentiment had fallen to its lowest since just after the Brexit vote.
Markets showed little reaction to the data, with the pound just under 0.1% firmer against both the dollar and the euro, at US$1.3320 and €1.1241 respectively.
Meanwhile, the FTSE 100 index was about 15 points lower at 7,395, around the session low.
8.40am: Footsie subdued
The FTSE 100 index fell back in opening deals on Friday following mixed showings by Asian markets with the lead of a lead from New York after the US Thanksgiving holiday, with retailers under pressure on ‘Black Friday’.
Around 8.35am, the UK blue chip index was down about 15 points at 7,401, having closed 1.8 points lower on Thursday.
On currency markets, sterling was also essentially moribund - flat against the US dollar at US$1.3318, and up 0.1% versus the euro at €1.1245.
Having been closed yesterday, Wall Street will only be opening for a half-day session on today, and volumes are expected to remain very low, with most focus on retailers as Black Friday finally arrives.
Ipek Ozkardeskaya, senior market analyst at London Capital Group, said: “Today is Black Friday in the US, the beginning of the Christmas shopping season and nearly 70% of Americans are expected to hit the online or traditional shops over the weekend. “
She added: “The pre-sales data indicate a better performance compared to last year; early numbers point at a solid 18% year-on-year increase in November sales so far. US households’ holiday spending could increase as much as 4% compared with last year, according to Bloomberg news.“
Next weak on 'Black Friday'
Retailers were weak in London, with clothing chain Next Plc (LON:NXT) losing 0.9% at 4,345p as commentators noted that the stores group is taking part in ‘Black Friday’ promotions for the first time this year.
Independent retail analyst Nick Bubb said "the shock news is that even Next is joining in the promotional frenzy today, with a '70% off” Sale Online and instore, having previously held firm against the self-defeating discounting."
In the absence of any scheduled economic data and a dearth of corporate news, broker comment provided the other main early focus in London.
BT Group plc (LON:BT.A) was the top FTSE 100 faller, shedding 0.9% at 246.7p as Deutsche Bank cut its price target for the telecoms giant to 238p from 265p on worries over capex and pensions.
In a note to clients, the German bank’s analysts said: “BT is working hard to mitigate but remains on the back foot and may stumble again. We keep our Sell rating.”
Proactive news headlines:
WYG PLC (LON:WYG) continues to experience delays in the signing of new contracts, as a result of which it has lowered guidance for the year. The programme, project management and technical consultancy said operating profit for the full year will be within the range of £3.5mln to £4.0mln, substantially below current market expectations.
SDX Energy Inc (LON:SDX) told investors it has spudded its latest well at the Sebou project in Morocco. The KSR-16 well is expected to be drilled in 20-25 days, and it is earmarked as a production well.
Cabot Energy PLC (LON:CAB) has told investors that it’s 75% owned Canadian fields are now producing between 750 and 850 barrels of oil per day. The latest production comes from the addition of the 16-05 side-track well, drilled last month, which is delivering around 200 bopd, and the new 13-33 dual completion well is scheduled to come online shortly to add another 50 bopd.
Falcon Oil & Gas Ltd (LON:FOG) has told investors it ended the three months to September 30 with a strong financial position – it is debt free and had US$9.4mln of cash. As the AIM-quoted shale group continues to await the outcome of a government commissioned review into fracking in Australia’s Northern Territory the company continues to adopt strict cost management.
Katoro Gold PLC (LON:KAT) is to carry out a pulsed light survey at Imweru in Tanzania to create high-resolution, detailed topographical maps of the gold prospect. Louis Coetzee, executive chairman, said the LiDAR survey would add integrity and confidence to the ongoing pre-feasibility study (PFS).
After raising £1mln (US$1.32mln) from investors earlier in the week, Vast Resources PLC (LON:VAST) has outlined the details of the follow-up open offer. Vast is looking to raise up to another £1.23mln (US$1.64mln) through the open offer by issuing 238.1mln shares at 0.525p apiece – the same price as the placing.
IronRidge Resources Limited (LON:IRR) has identified more bauxite and gold at two projects in Queensland, Australia. Surface sampling at Koko discovered additional bauxite mineralisation adjacent to the Monogorilby prospect. Bauxite is the source ore for aluminium.
Base Resources Limited (LON:BSE) (ASX: BSE) said Bank of America Corporation has notified the company that it and its related corporate bodies have a relevant interest in 38,868,951 Base Resources ordinary shares representing 5.20% of the total issued share capital. In October, reports had said two BofA Merrill Lynch funds in Australia had bought a total of just over 40mln Base Resources shares, amounting to around 5.37% of the company.
6.55am: Quiet start predicted
The FTSE 100 looks set to make a quiet start to the last trading day of the week, adding 5 points to 7,422.24 at the open.
It follows a mixed session in Asia and comes ahead what many expect to be a fairly placid start to proceedings on Wall Street, which returns after the Thanksgiving break.
A stronger dollar and the political gridlock in Germany, which is still unable to piece together a viable coalition government, are likely to place a cap on sentiment, dealers said.
Expect a quiet day for corporate news in London with only a handful of results expected, with the pick of the crop (and I used that term advisedly) likely to be brewer Fuller Smith & Turner (LON:FSTA).
The former looks likely to drop out of the FTSE 100 at the next reshuffle, alongside Mediclinic International (LON:MDC), Merlin Entertainments (LON:MERL).
They are set to be replaced by takeaway giant Just Eat (LON:JUST), which is currently digesting rival Hungry House, Halma (LON:HLMA) and DS Smith (LON:SMDS).
Significant events expected on Friday 24 November:
Finals: Future (LON:FUTR)
Interims: Caffyns PLC (LON:CFYN); Fuller Smith & Turner (LON:FSTA)
Economic events: BBA loans for house purchases
Around the markets:
- Sterling US$1.3284
- Brent crude is down 12 cents at 63.43 a barrel
- Gold is down US$1.20 an ounce at US$1,295.60
City Headlines:
Financial Times
Thames Water promises to close Cayman Islands subsidiaries.
Chinese biotech groups are on target to raise about US$10bn this year from venture capital funding.
Shares in Mitsubishi Materials sank on Friday a day after the company admitted its subsidiaries falsified data about products used in crucial parts of aircraft and cars.
Baidu launches public road tests of autonomous cars in China.
Angry Birds maker Rovio slumps 19.0% after first results since IPO.
Times
Unilever has hired headhunters to find a successor to Paul Polman as chief executive of the Anglo-Dutch food to toiletries group.
TCI Fund Management, the activist fund attempting to have the chairman of the London Stock Exchange voted off the board at a forthcoming shareholder meeting, could bring legal action against the exchange’s Directors.
Daily Telegraph
Craft beer boom boosts profits at delivery firm APC Overnight.
Shares in Gocompare plunge as Zoopla walks from takeover bid.
Guardian
High street retailers pin hopes on discount splurge in Black Friday fever.
Ryanair crew told to sell more perfume and scratchcards or face action.
Daily Mail
Biggest facelift in Harrods’ history: £200mln overhaul to woo even more Chinese shoppers.
Households face ‘lost decade’ of falling living standards as grim Budget forecasts slash size of the UK economy by £65bn.