FTSE 100 closed in red
UK GDP grew 1.7% in September quarter
Turmoil in Spain following vote
Bitcoin plunges
FTSE 100 closed in the red as the City packed up and headed for the Christmas break, having been higher for much of the truncated trading session.
The premier index of leading shares closed down around 11 points, or 0.15%, at 7,592.
Yesterday, it reached a fresh all time high at the close of 7,603, and had reached an intra-day high today of 7,614.
The FTSE 250 closed over 58 points higher at 20,481.
The pound was up 0.06% against the Euro but down 0.05% against the US dollar.
Across the pond, and after a higher finish on Thursday, US stocks are set to head north at the open.
Craig Erlam, at Oanda, in a note said: "US equity markets are on course to open marginally higher on the final trading day before the Christmas break, with investors seemingly buoyed by not only the passage of tax reform through Congress but also efforts to delay a government shutdown until 19 January."
Investors will be on the look out to see if President Trump signs the tax reform bill, but trading is likely to be thin on the company front despite income, spending and inflation data from the US, as well as new home sales, durable goods orders and consumer sentiment.
Top dog on Footsie was retail giant Next (LON:NEXT), which added 3.71% to 4,579p as investors went more positive on current shopping trends.
The biggest loser was Ashtead Group (LON:AHT), which shed 1.67% to 1,944p.
11.25am: Bitcoin plunges after volatile week
Bitcoin was in the frame again today, but when isn't it..?
The value of the cryptocurrency slumped nearly 15% on the day and was down around 30% from its record high of nearly US$20,000 at the start of this week.
It has been a volatile month for the cryptocurrency which has surged in value since the start of the year.
Bitcoin has rocketed this year as has been well documented, after starting the year with a value of less than US$800, though the asset remains extremely volatile. Opinion on its trajectory and worth is divided.
David Cheetham at XTB.com said the Bitcoin market remained "extremely volatile" with the latest correction being the 5th time this year that price has crashed by more than 30%.
"There is no real fundamental reason behind the latest decline, although there is growing speculation that some of the largest holders of Bitcoin may be following in the steps of Charlie Lee, the Litecoin founder who stated earlier this week that he had sold his entire holding in the alt-coin," he said.
The drop poses a dilema for traders, he suggests.
"When a market continues to surge at a parabolic rate it is not so difficult to sit back and watch the profits on paper rise but when a market loses more than a third of its value in no time at all it is much more challenging to stay long."
FTSE 100 is up 6.61 at 7,610 at the time of writing
10.45am Foostsie still positive..
FTSE 100 was still in positive territory, just, at the mid-session mark, ahead of the Christmas break with retailer Next (LON:NEXT) top riser.
Its shares were up 2.67% at 4,533p as investors turn more bullish on shopping trends currently, while wider Footsie gained almost four points to 7,608.
Mid-cap index FTSE 250, more domestically focused, was up over 46 points at 20,468.
Mondi shares (LON:MNDI) eased 0.42% as it wrapped up its acquisition of Finnish pulp and paper mill operator Powerflute, a division of Nordic Packaging and Container Holdings, for €365mln.
The transaction remains subject to competition clearance and customary closing conditions and is expected to complete in the first half of 2018.
Tertiary Minerals (LON:TYM) boomed 13% higher at 1.95p as it revealed the annual report for the year ending September 30 was no up on its website and that the AGM will be held on January 31.
The firm recently issued a bullish assessment of prospects following an uptick in the fluorspar price and a recent strategic relationship with commodities group Possehl.
Elsewhere, North Africa junior oiler SDX Energy Inc (LON:SDX) shares gained over 4% to 55.25p as it said it had begun well operations on the ELQ-1 well at the Gharb Centre permit in Morocco.
ELQ-1 is the fourth well in SDX’s nine well campaign and the first of two commitment wells planned at Gharb, which was acquired over summer from Circle Oil.
10.30am Turmoil in Spain..
Yesterday's election in Spain has not led to clarity on the Catalan question. In fact, it looks to have caused more turmoil. Naeem Aslam at thinkmarkets.com said: "Another blow for the Spanish Prime Minister, the pro-independence party, in Catalonia, won an absolute majority in regional elections. "Going into 2018, investors are going to look at only aspect which is the threat of independence. "The focus will be if the new government in Catalonia will be radical enough to push for independence. The recent failed attempt of independence in October clearly shows an example for the new upcoming government what to avoid. It also provides them with a guidance where they have to make any changes in order to achieve a more favourable outcome." The IBEX 35 index in Madrid is 115 points lower today at 10,189, while the CAC40 in France is down over 15 points at 5, 370.
10.05am: UK growth grew 1.7% in three months to September..
The Office for National Statistics (ONS) says that GDP (gross domestic product - the value of all goods and services combined) in the UK grew by 1.7% in the three months to September compared to the same period last year. This was better that the group's previous estimate for 1.5% growth.
"This is the first time we have used VAT returns from hundreds of thousands of small and medium-sized businesses to help us calculate GDP. These returns improve the quality of our estimates and will allow us to paint a much more detailed picture of the UK economy," Darren Morgan, head of national accounts, was quoted as saying.
Dennis de Jong at UFX.com, said: "After a series of disappointing UK GDP reports, the British government will breathe a sigh of relief after today’s results came in above expectations.
"While there will be giant strides required to drag the UK back to comparable levels with growing eurozone powerhouses such as Germany and France, it’s a small step in the right direction for the British economy."
But he added that with lingering inflation affecting the spending power, wage growth was unlikely to surge any time soon, and the UK could remain in the slow lane for economic growth in the early stages of next year.
Meanwhile, households have been net borrowers for four successive quarters for the first time since records began in 1987, the ONS also revealed, underling the increased emphasis on borrowing to fund everyday activites.
Also, new figures today showed household spending as measured by volume rose by 0.5% in the third quarter against the same period last year.
FTSE 100 is up around four points at 7,608.
Ignoring the pain from Spain..
After closing at a new all-time high, the FTSE 100 managed to maintain the upward momentum – but only just as it crept up 5 points to 7,608.49 against some fairly stiff headwinds from Spain.
With the independence vote in Catalonia backfiring on Prime Minister Mariano Rajoy, traders here in London woke with a rather queasy feeling on the last day before Christmas, and it had nothing to do with excesses of the night before.
On the pain from Spain, where the Ibex index is down 1.5% and banks are suffering, ETX Capital’s Neil Wilson said: “This remains a bit of a slow burner and it’s hard to assess where the political machinations will take us, but investors are wisely taking a little risk off the table.
“However the risk of Catalan independence remains low for the moment.”
Turning to the London market, there was little in the way of movement among major stocks.
Next (LON:NXT) stood out with a 2.2% rise as investors became a little more optimistic on retail trends over the Christmas period.
Recent indicators, such as the CBI survey earlier this week, suggest it has been a subdued festive period thus far for Britain’s shopkeepers.
However, analysts believe Next has performed marginally better than its peers after making an overhaul to its clothing ranges.
We won’t have long to see what lies in store as the company is the first in the sector to report on progress and does so on January 3.
The day’s rocket stocks was Westminster Group, the security specialist, which provided a positive progress report on a contract being negotiated with a prospective Middle East client. The mood music was soothing enough to send the stock soaring almost 50%.
Proactive news headlines:
Shares in Motif Bio Plc (LON:MTFB) zipped higher after the biopharma pencilled in more detail of the REVIVE-1 phase III clinical trial of iclaprim in patients with acute bacterial skin and skin structure infections (ABSSSI). Positive top-line results from the study were announced back in April which showed iclaprim scored well against one of the current leading treatments, vancomycin.
Shares in Tavistock Investments PLC (LON:TAVI) were up strongly early on after the wealth management firm said it was proposing an administrative rejig that would allow it to pay a dividend at some point in the future. The company currently has negative distributable reserves, which is a legacy from the firm’s previous business, Social Go. The plan is to seek approval to use £23mln from the share premium account to wipe out the deficit.
Valtrex PLC (AIM:VAL) has raised £1mln, which it will be used to “advance” the clinical trial of VAL201 for prostate cancer and fund certain pre-clinical programmes. The biotechnology company issued just over 23.5mln new shares at 4.25p each. They come with 11.8mln warrants to further invest in the business at 8p a share (Thursday’s closing price was 6.25p).
Savannah Petroleum PLC (LON:SAVP) has completed a $125mln fundraise to help fund its proposed acquisition in Nigeria, drilling campaign in Niger and for general corporate purposes. The company has placed 266,462,000 new ordinary shares at a price of 35p per share in two tranches.
Action Hotels PLC (LON:AHCG) said it has received a US$1.2mln rent waiver from the owner of the ibis Saliva Hotel in Kuwait for the last six months of 2017. The hotel is owned by Action Real Estate Co., a subsidiary of the group’s major shareholder, Kuwait-based Action Group Holding Company.
Eland Oil & Gas PLC (LON: ELA) has announced the syndication of its Reserve Based Lending facility and a significant increase in its drawable capacity to strengthen the firm’s financial position for its work programme.
Aircraft leasing group Aviation PLC (LON:AVAP) has completed delivery of an Airbus A320-200 to easy Jet PLC (LON:EZJ).
North Africa junior oiler SDX Energy Inc. (LON:SDX; CVE:SDX) has begun well operations on the ELQ-1 well at the Garb Centre permit in Morocco. ELQ-1 is the fourth well in SDX’s nine well campaign and the first of two commitment wells planned at Gharb, which was acquired over summer from Circle Oil.
Vast Resources PLC (LON:VAST) said its latest half year charted a period of highs and lows as it continues to advance its mining operations in Zimbabwe and Romania. There was a 45% decrease in overheads to US$2.5mln, while earnings before interest and tax (EBIT) was up 30%. The loss before tax increased to US$12.6mln, though, compared to a profit of US$0.3mln in 2016, due to a US$12.5mln exceptional charge.
US Oil & Gas PLC (LON:USOP) updated on its drill plans in Nevada, saying that applications to sink three wells in Hot Creek Valley were in train The required bonds have been lodged for two wells, it revealed, and once permits are received, drilling will start as soon as availability of service and equipment allows.
Greka Drilling Ltd (LON:GDL) updated on contracts in India and China, where in the latter country, it has been awarded two deals estimated to be worth around US$2.1mln. PetroChina Huabei Oilfield Limited, or PetroChina, which is a subsidiary of CNPC, has awarded Greka the work for its ANZE block. Each of the new contracts is for 18 months, with a scope of 10 directional wells, to be drilled on multi-well pads, the firm said.
Base Resources Limited (ASX:LON) (LON:BSE) said that Bank of America Corporation has notified the company that it and its related bodies corporate have ceased to be a significant shareholder of the company following the net sale, or return pursuant to prime brokerage agreements, of 18,823,438 Base Resources fully paid ordinary shares.
Akers Biosciences Inc (LON:AKR) has raised gross proceeds of US$6.9mln via a public share offering, around US$1mln higher than previously announced. The group said the funds raised will be used by the health-care screening company for working capital, product development, marketing activities, expanding sales organization and developing sales channels.
Mporium Group PLC (LON:MPM), the technology firm delivering event-driven marketing, said it raised approximately £3.2mln through the successful subscription of 53,333,333 new ordinary shares of 0.5p at an issue price of 6p each, announced on December 20. It added that the net proceeds of the fundraising will be used to provide working capital and to support the continued momentum of the business.
Gfinity Plc (LON:GFIN), a leading international esports entertainment group, has announced the appointment with immediate effect of Shore Capital as joint corporate broker to the company.
6.45am: Santa rally to hit reverse gear?
FTSE 100 is called to come off recent highs on Friday, on what is a half day of trading ahead of the festive break, and after the latest twist in the Catalonia election saga.
Yesterday, the talk was of the Santa rally as the UK benchmark went through the 7,600 mark to close at 7,603 - up 1.05%- a fresh record high.
But today spreadbetters at IG Index are calling Footsie to open 15 points lower.
In the US it was a positive finish as traders hail the recently passed tax overhaul bill with the Dow Jones closing 55 points ahead to 24,782 and the S&P 500 adding 5.32 at 2,684.
Bitcoin , the crypto currency, fared less well though after what has been highly volatile week. It tumbled over US$2,000 in value in just 12 hours. It is likely to be closely watched again today.
In Asia overnight, sentiment was up, buoyed by the US rally, with the Nikkei 225 up 27 points at the time of writing, and the Shanghai Composite a tad ahead - 1.02 points.
In the currency markets, the Euro shed 0.15% against the US dollar after the result of the latest Spanish election pointed to a win for Catalonia's pro-independence parties, which want to break away from the rest of Spain.
These parties defied consistent poll predictions of a hung parliament to secure an absolute majority of 70 seats out of 135, and 47.5% of the popular vote.
It is sure to trigger a new stormy debate about what happens next.
In London, it looks to be a quiet day. The only notable UK releases include the index of services data and the final economic growth figures for the third quarter from the ONS.
Economists expect the last estimate for third quarter gross domestic product growth of 0.4% quarter-on-quarter and 1.5% year-on-year to remain unchanged but the index of services is, however, forecast to improve to a month-on-month growth rate of 0.2% in October from 0.1% the previous month.
Significant events expected:
Half-day trading in London (12.30pm close)
AGMs: BOS GLOBAL Holdings Limited (LON:BOS), Mobile Streams Plc (LON:MOS), Progility PLC (LON:PGY), Red Rock Resources Plc (LON:RRR)
Economic data: US durable goods; US new home sales; US personal income and consumption.
Around the markets:
- Sterling: US$1.3377, down 0.05%
- Gold: US$1,266.30 an ounce, down 0.08%
- Brent crude: US$58.21 a barrel, down 0.26%
- Bitcoin: US$13,861, down 11.31%
City headlines:
- BP Chief says shale will have limited effect on global oil market - FT
- Fannie and Freddie to be allowed $3 billion capital buffers - FT
- JPMorgan ‘seriously breached’ Swiss rules in 1MDB transactions - FT
- Facebook and Universal strike music licensing deal - FT
- Nomad Foods in talks to buy Goodfella’s Pizza for £200 million - FT
- Boeing in deal talks with Brazil’s Embraer - FT
- Shell enters the U.K. energy market with First Utility deal - Independent
- The creator of $17 billion cryptocurrency litecoin has sold his entire stake - The Independent
- Forties pipeline to reopen in the new year, says Ineos - The Times
- Glencore cuts ties with ‘corrupt’ Israeli billionaire Dan Gertler - The Times
- RBS reshuffle as Sandy Crombie steps down and Lena Wilson joins board - The Times
- U.K.’s biggest toy chain avoids collapse by agreeing to £10 million pension payment - Daily Mail
- McCarthy & Stone shares tumble as Government plans to ban sale of leasehold new homes - Daily Mail