FTSE 100 closes up 59 at 7,453
Resource stocks drive the Footsie higher
Explosion reported at New York bus terminal near 42nd Street
HSBC shares wanted after US money-laundering charges look set to be dropped
FTSE 100 closed on the front foot, bolstered by the fall in the pound, and as other European indices lagged.
Among the gainers, big miners did well, with BHP Billiton plc (LON:BLT) up 2.27% to 1,372p and Antofagasta (LON:ANTO) up 2.24% to 913.50p.
It came as Citibank, the US investment bank, among others, raised its price target for copper, zinc and iron ore.
Meanwhile, the index of leading UK shares added over 59 points at 7,453 shy of intraday highs, while FTSE 250 was up over 72 points at 20,064.
In the currency markets, the pound was down 0.42% against the Euro at the time of writing, while against the US dollar, it was down 0.21%.
Top dog on Footsie was PR giant WPP (LON:WPP), which was up 2.61% to 1,376p.
The biggest laggard was Costa Coffee owner Whitbread plc (LON:WTB), which was up 2.65% to 3,888p.
David Madden, analyst at CMC Markets, said: " The Dow Jones, S&P 500 and NASDAQ 100 are edging higher as the US indices appear to have shrugged off the negative sentiment that crept in at the start of the month.
"2017 has been an impressive year for US equity benchmarks and we could see another round of record highs from the before the year is out."
Just shy of intra-day high
The FTSE 100 was a few points shy of its intra-day high entering the last half-hour of trading.
The FTSE 100 was up 57 at 7,451, some seven points below its high for the day.
Marketing and advertising conglomerate WPP PLC (LON:WPP) was topping the leader-board, up 2.8%, but it was mainly the miners that were underpinning the Footsie’s advance, helped by 1.3% rises for the Ali & Frazier of the oil sector, BP PLC (LON:BP.) and Royal Dutch Shell PLC (LON:RDSA).
2.45pm: Wall Street gives renewed impetus to the Footsie
US stocks opened marginally higher, shrugging off news that a suicide bomber had set off a home-made bomb at a station in New York.
The S&P 500 was up just over a point at 2,653 and the Dow was four points firmer at 24,338.
BREAKING: Video of the moment of the explosion at the Port Authority Bus Terminal near Times Square. NYPD reporting they have 1 person in custody.#TimesSquare #Manhattan #NYPD #NYC pic.twitter.com/yFZIf2e4TN
— SouthernSportsNation (@SoSportsNation) December 11, 2017
Back in the UK, the FTSE 100 was up 52 at 7,446, helped by the weakness of the pound on foreign exchange markets.
Banking giant HSBC Holdings PLC (LON:HSBA) advanced 2.0% to 748p after the US Justice Department indicated it would seek the dismissal of money laundering charges against the bank now that the deferred prosecution agreement between the two parties has elapsed.
1.30pm: The Footsie eases off its highs
The FTSE 100 index just eased off its highs in early afternoon trading as US stock index futures cut earlier gains after reports of an explosion at the Port Authority bus terminal on 42nd Street in New York.
Around 1.20pm, the UK blue chip index was up 34 points at 7,428, easing back from earlier session highs of 7,451.67.
US futures were still trading slightly higher after the explosion reports emerged as traders position themselves ahead of Wednesday’s Federal Reserve meeting, with a further US interest rate hike expected.
Pipe bomb explodes in subway passage near Port Authority terminal Several injured One man in custody- NY Daily News https://t.co/7zdBew1DJW
— Maria Bonanno (@MariaBonanno9) 11 December 2017
New York City officials have confirmed that an explosion has occurred in the city, and according to media reports, police and firefighters are attending at the scene, which is near Times Square. with reports indicating that some people have been injured.
12.15pm: Blue chips wanted, but mid caps in the red
While the FTSE 100 remained in positive territory, albeit ebbing slowly, the mid-cap FTSE 250 was in the red.
The FTSE 100 was up 36 at 7,430, while the FTSE 250 was down 11 at 19,982, with Inmarsat Plc (LON:ISAT) leading the retreat after a downgrade by Goldman Sachs to ‘neutral’ from ‘gold’.
The satellite launcher lost 30p at 456p following the Goldman research note.
Also getting the treatment from the broking community was internet service provider Talktalk Telecom Group (LON:TALK), which is in danger of breaching its bond covenants, according to US broker Jefferies.
Jefferies analyst Jerry Dellis is not the first broker to suggest that TalkTalk needs to slash its dividend to stay onside with its covenants; last month Citi’s Simon Weedon said much the same thing.
TalkTalk shares fell almost 7% to 143.8p, lifting the historical rolling 12-months dividend yield to 6.7%.
At the happier end of the mid-cap index, Kaz Minerals PLC (LON:KAX) rose 3.2% to 755p after Goldman Sachs upgraded the stock to ‘buy’ from ‘neutral’.
11.00am: Stocks in conolidation mode
Leading shares were in consolidation mode heading into the last hour of the morning trading session.
The FTSE 100 was up 47 at 7,441.
Utility companies such as Centrica PLC (LON:CNA) and Severn Trent PLC (LON:SSE) are friendless, with the former down 1.7% and the latter off 0.7%.
The froth has also come off the property sector after last week’s bid excitement, with British Land Company (LON:BLND) and Land Securities Group PLC (LON:LAND) down 1.0% and 0.7% respectively.
In contrast, miners were wanted, with BHP Billiton plc (LON:BLT) 2.2% higher and Rio Tinto PLC (LON:RIO) up 2.1%.
Some small cap miners got in on the act, most noticeably Mkango Resources Ltd (LON:MKA, CVE:MKA), which shot up 21% to 7.25p after the TSX Venture Exchange rubber-stamped Mkango’s agreement last month with Talaxis, a wholly owned subsidiary of Noble Group.
Talaxis will invest £12 million (C$20.7 million) in three tranches to fully fund a feasibility study for Mkango’s Songwe project in Malawi in return for a 49% interest.
An updated mineral resource and reserves estimate for its Tapajos mining and processing operations boosted sector peer Serabi Gold PLC (LON:SRB) 8% to 3.375p.
9.45am: FTSE 100 up 46 ay 7,440 with risers outnumbering fallers by three-to-one
The top-shares index got off to a strong start, with risers outnumbering fallers by around three-to-one.
The FTSE 100 was up 46 at 7,440, led by Mondi Plc (LON:MNDI), the packaging and paper company, which was up 2.8%.
Hot on its heels was Babcock International Group PLC (LON:BAB) after it laid a few qualms to rest with an announcement that its adoption of International Financial Reporting Stand (IFRS) 15 would not require a change in contract revenue or profit recognition.
“This demonstrates that the group continues to maintain a conservative accounting approach,” the engineering services company said.
The shares were up 2.1% in mid-morning trade.
Fags maker Imperial Brands PLC (LON:IMP) eased 7.5p to 3,076p after Morgan Stanley cut its target price to 3,400p from 3,750p, prompting a rating change from ‘overweight’ to ‘equal weight’.
Among the tiddlers, settlement of litigation sent the shares of AorTech International plc (LON:AOR) soaring 58% to 37.5p.
The biomaterials and medical device intellectual property company said it had amicably resolved the dispute with the Foldax defendants. The terms of the settlement have been incorporated into a confidential settlement agreement.
8.45am: Buoyed by new highs on Wall Street, London skates higher
The FTSE 100 got off to a positive start, advancing 36 points to 7,429.81 and buoyed by another record finish on Wall Street.
The big mover of the day came from the junior market – though with a market capitalisation of almost £600mln it looks more like a mid-cap.
Hurricane Energy (LON:HUR) jumped 12.6% after an independent report suggested the company’s oil discovery to the west of the Shetland Islands could contain as many as 2.6bn barrels of crude oil.
On those numbers, the Rona Ridge assets could be a truly world-class. The next step is to tap into the oil with an early production system, which will give Hurricane management a better assessment of what the area is host to.
Heading the blue-chip risers ConvaTec Group (LON:CTEC), the colostomy bag maker, which rose 3% amid vague bid speculation.
Imperial Brands (LON:IMB) held firm in the face of a downgrade from Morgan Stanley.
However, it was a different story for Inmarsat (LON:ISAT), the satellite comms specialist, which fell 3% after Goldman Sachs moved to ‘neutral’ from ‘buy’ on the shares.
Proactive news headlines:
Hurricane Energy PLC (LON:HUR) has unveiled a new competent persons report for the ‘Rona Ridge’ assets, excluding the Lancaster oil field. The assets have been estimated to have 1.8bn barrels of contingent resources and over 900mln barrels of prospective resources.
Cadence Minerals Plc (LON: KDNC) (OTC: KDNCY) is to acquire up to 100% of six prospective hard rock lithium assets in Argentina from Lithium Technologies Pty Ltd and Lithium Supplies Pty Ltd, the start of a “strategic shift” in its investing.
Flying Brands Ltd (LON:FBDU) has obtained a CE mark for its StoneChecker software, paving the way for the kidney stones medical imaging software’s roll-out across Europe.
ECR Minerals PLC (LON:ECR) says it has identified 15 high priority targets from the results of an interpretation and targeting study using open-file geophysical data covering the Avoca, Bailieston, Moormbool and Timor exploration licences in Central Victoria, Australia.
Landore Resources Limited (LON:LND) has increased the mineral resource estimate for the BAM East Gold Deposit on its Junior Lake Property, Ontario, Canada of 400,000 ounces gold at 1.37 grams/tonne (g/t) of which 326,000 ounces gold is in the Indicated category.
Film production underwriter FFI Holdings Plc (LON:FFI) is to acquire Buff Dubs, an Australian post-production services provider, for an initial payment of A$881,000.
SDX Energy Inc (LON:SDX) has confirmed a new gas discovery in the KSR-16 development well, its latest in the Sebou permit onshore Morocco. The well, which was drilled down to 1,896 metres, has encountered some 14.2 metres of net conventional natural gas pay in the Hoot formation.
Tower Resources PLC (LON:TRP) has told investors that it has now started work in preparation of an environmental and social impact assessment (ESIA) for a multiple well drill programme for the Thali licence, offshore Cameroon.
Silence Therapeutics PLC (LON:SLN) has netted a sizeable profit after it sold off another chunk of its stake in fellow RNA interference specialist Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR). AIM-listed Silence sold just over 2mln shares at an average price of US$3.58. It purchased the shares for US$1.65 back in January, meaning it made a US$3.9mln (£2.9mln) profit on the disposal.
Biopharma Faron Pharmaceuticals Oy (LON:FARN) has made another “important step” with its acute respiratory distress syndrome drug, Traumakine. The AIM-quoted company has now completed recruitment for the phase III INTEREST trial which is comparing the efficacy and safety of Traumakine and a placebo in patients with moderate to severe ARDS.
Life sciences group Abzena plc (LON:ABZA) has bagged a contract with a US biotech company and long-time customer worth more than US$5mln. The agreement will see AIM-listed Abzena provide process development and manufacturing services in order to progress an antibody-drug conjugate (ADC) towards clinical trials.
MySQUAR Limited (LON:MYSQ), the Myanmar-language social media, entertainment and payments platform, has signed a distribution deal covering the Huawei inTouch platform. Mobile games developed in-house by MySQUAR will be distributed on the Huawei inTouch platform across 30 countries within Latin America, Africa, Southeast Asia and the Middle East.
Sula Iron & Gold PLC (LON:SULA) has acquired a cobalt deposit in the Democratic Republic of Congo. A £1.75mln placing and subscription at 0.05p will fund the change of tack, which will be accompanied by a name change to African Battery Metals Limited.
Richland Resources Limited (LON: RLD) says it has decided to temporarily halt mining operations at the its Capricorn Sapphire mine located in Queensland, Australia due to “extreme weather conditions and a weak market environment” and is assessing potential additional project opportunities, including other commodities such as gold and lithium.
Goldplat plc (LON:GDP) has made a breakthrough in its dispute with Rand Refinery, with both sides now agreeing to an arbitration process. The two companies have been in dispute for months over a contract to process silver, with Goldplat claiming £780,000 from the South African refinery. Arbitration proceedings have been scheduled for 25-29 June.
It’s been a whirlwind year for Lionsgold Limited (LON:LION), which was still known by its previous name Kolar Gold this time 12 months ago. A new management team was brought in last July, which included new chief executive Cameron Parry and executive director Luke Cairns, and a few months later the name officially changed.
Strategic Minerals Plc (LON:SML) will look to speed up development of its Redmoor tin project in Cornwall after high grades were found from the latest exploration drilling. Big Pic in September.
Sunrise Resources Plc (LON:SRES) has received permission to start a second phase of exploration drilling at the CS pozzolan-perlite project in Nevada. The Phase 2 programme will see a further 22 drill holes and help define the boundaries of an open pit. Big Pic in September.
Metminco Limited (LON:MNC) (ASX:MNC) said that Graeme Hogan has been appointed as company secretary/chief financial officer with effective from today, replacing Brian Jones, a partner in the accounting firm Rothsay Chartered Accountants, who has filled the position in an interim capacity.
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO) (TSX-V:EOG), the oil and gas exploration company with licences in highly prospective regions in South America and Africa, announced that it has appointed Pareto Securities Ltd as joint broker with immediate effect.
Touchstone Exploration Inc. (LON:TXP) (TSX:TXP), the oil and gas exploration and production company active in the Republic of Trinidad and Tobago, has said it will be holding an online investor presentation and Q&A session for investors today to discuss the recent announcement of a private placement.
6.20am: FTSE 100 to kick-off on front foot
The FTSE 100 is expected to start the week on the front foot, buoyed by the end-of-week momentum from Wall Street, which finished on yet another high, and ahead of a busy few days for the central banks.
The spread betting firms are predicting the index of blue-chip shares will open 32 points higher at 7,425.96.
Already priced in to the market is a quarter point hike to the base rate by the US Federal Reserve when it announces its decision on Wednesday, says David Madden of CMC Markets, previewing the outlook for borrowing costs.
“The Bank of England announcement is likely to be uneventful following last month’s very dovish hike. No change is expected at the European Central Bank either,” he said ahead of their respective set-piece statements on Thursday.
This is likely to be the final week before corporate news grinds to a complete slowdown.
Scheduled are updates from the FTSE 100 plant hire group Ashtead (LON:AHT), the tour operator TUI (LON:TUI) and online grocer Ocado (LON:OCDO).
Around the markets:
- Pound worth US$1.3398
- Gold US$1,251.20 an ounce, up US$2.80
- Brent crude US$63.14 a barrel, down 26 cents
City Headlines
Financial Times
Saudi Aramco, the world’s biggest oil producer, is more concerned about growth of ride-sharing services such as Uber than the rise of electric vehicles as a major disruptive force to transport and energy use.
Stockbroker Zeus Capital is facing increased scrutiny after several corporate clients have suffered high-profile controversies in recent months, taking the shine off its rapid rise to prominence.
Wall Street Executives have begun lobbying against controversial provisions in the Republican tax overhaul bill that would hit high-tax states, arguing they could damage New York’s financial industry by driving out bankers and fund managers.
A pioneering cancer treatment being developed by the US biotech company Gilead Sciences can keep some of the sickest lymphoma patients alive for at least a year, according to the results of a much-anticipated clinical trial published on Sunday.
Times
Boost for BAE as Qatar confirms £5 billion deal for Typhoon jets.
Growth in house prices will slow to crawl next year, says Rightmove.
Daily Telegraph
Smith & Nephew launches digital scanner to diagnose if a wound is infected.
Government must focus on Brexit aviation deal to avoid trade hit.
Government admits energy price cap could stifle rising competition.
Guardian
The care homes operator Four Seasons Health Care is on course for a stay of execution before a crunch debt deadline, after its major creditor offered to drop demands rejected by directors.