- FTSE 100 sheds 31 points
- 888 makes big gains on dividend news
- ADP private payroll reading tops forecast
5pm: FTSE 100 closes lower, but FTSE 250 finishes in the green
The footsie ended in the red despite flashes of promise in the afternoon. The FTSE 100 lost 31 points, 0.5%, to 5,866.1, while the FTSE 250 gained steadily all day, closing up 141 points, 0.8% at 17,315.3.
"Stock markets are showing small gains as the trading session draws to a close," CMC Markets UK analyst David Madden wrote Wednesday. "The bullish mood in the US has lifted sentiment on this side of the Atlantic. Steven Mnuchin, the US Treasury Secretary, said he will give one more go at trying to come to an agreement with the Democrats with respect to a coronavirus relief package, and that is assisting equities. Lately, the moves in the US have had an influence on European sentiment, and that is what we are seeing today."
In the US, the ADP employment report for September was 749,000, Madden noted, which easily topped the 650,000 consensus estimate, and it was a big improvement on the 428,000 jobs added in August.
The Dow was up more than 460 points, 1.7%, to 27,915.2 at midday. The Nasdaq gained 169 points, 1.5%, to 27,905.1 and the S&P 500 improved 44 points, 1.3%, to 3,380.1.
3.45pm: Fuller, Smith & Turner mulls over up to 500 job cuts
FTSE 100 trimmed its gains ahead of close, rising only 6 points to 5,903.
Pub chain Fuller, Smith & Turner PLC (LON:FSTA) is considering to axe around 500 jobs, or 10% of its staff.
Chief executive Simon Emeny told the BBC the working from home trend is hitting pubs located in city centres, especially in London.
“We are doing everything possible to minimise that, but sadly it is inevitable,” he said, adding the 10pm curfew on restaurants and bars is "illogical" and "ill-conceived".
The stock was muted at 559.96p late on Wednesday.
3.30pm: Proactive North America headlines:
Valeo Pharma Inc (CSE:VPH) (OTCQB:VPHIF) says it is positioned for profit with latest product launches; posts fiscal 3Q results
Canada Silver Cobalt Works Inc (CVE:CCW) (OTCMKTS:CCWOF) reinterpreting past-producing Gowganda camp in Ontario as it hails early drilling results
ImagineAR set to increase brand exposure as it strikes historic partnership with Valencia, one of the biggest football clubs in the world
Phunware Inc (NASDAQ: PHUN) awarded Best Mobile-Driven Enterprise Cloud Platform by Corporate Vision Magazine for 2020
2.45pm: Wall Street starts higher as job figures lift sentiment
The main Wall Street indices shrugged off expectations of a negative start to push higher on Wednesday morning, seemingly boosted by a better than expected set of US jobs figures.
Shortly after the opening bell, the Dow Jones Industrial Average was up 0.69% at 27,642 while the S&P 500 climbed 0.5% to 3,352 and the Nasdaq rose 0.34% to 11,123.
While last night’s chaotic election debate had initially dulled the mood on Wall Street, the release of the ADP job figures for September, which showed the US private sector added 749,000 jobs from August to September, topping estimates of 649,000, lifted the market mood.
The better than expected number will lift market hopes for the non-farm payroll data on Friday, as well as provide more confidence in the overall state of the US economy as it continues to struggle with rising coronavirus cases.
Trade, transport, and utilities was the sector with the most growth, adding 186,000 jobs in the period, while natural resources and mining was the slowest with only 7,000 positions added.
Back in London, the higher start on Wall Street had given a small lift to the FTSE 100, which was up 14 points at 5,911 at 2.45pm.
2pm: University of Oxford to trial popular inflammation drug as COVID-19 treatment
FTSE 100 yo-yoed back to the green in the early afternoon, rising 7 points to 5,904.
The University of Oxford has announced it is starting a new study to use the anti-tumour necrosis factor (anti-TNF) drug adalimumab to treat patients with COVID-19 in the community, especially care homes.
The trial will enrol up to 750 participants from community care settings throughout the UK, the segment of the population most hit at the beginning of the pandemic.
Recent studies of patients with COVID-19 have shown that patients already taking anti-TNF drugs for inflammatory bowel disease and inflammatory arthritis are less likely to be admitted to hospital.
Sensyne Health PLC (LON:SENS) joined the project to provide software for remote data collection and analytics, which is based on Sensyne's CVm-Health software application for tracking COVID-19 symptoms launched earlier this year.
Meanwhile in the US, ADP reported private payrolls rose by 749,000 in September, above the consensus of 649,000.
Economists at Capital Economics said the reading supports the forecast that the official non-farm payrolls figures, due on Friday, will show an 800,000 gain.
“Employment growth appears to be slowing gradually, but remains more than strong enough to keep the unemployment rate on a downward trend,” said economist Andrew Hunter.
“That said, with employment still more than 10 million below its pre-pandemic level, a full labour market recovery remains a long way off.”
12.40pm: Low start at Wall Street
FTSE 100 was down again at midday, shedding 14 points to 5,882.
Wall Street is also expected to open lower after the chaotic presidential debate between Donald Trump and Joe Biden, while the market keeps anxiously waiting for a COVID-19 plan.
“These events are often overplayed for their importance and that's particularly true in an election year when the undecided vote is so small,” said Craig Erlam at OANDA.
“It's hard to pick a winner, I think we're all losers as far as that debate is concerned, but Biden went into the debate clearly ahead in the polls and I'd be amazed if last night changed anything. I guess he technically wins by default.”
On schedule we also have the ADP employment report for September, forecast to show 649k new entries.
However, the August reading fell short at 428k “and as such could do so again”, noted Michael Hewson at CMC Markets.
“Economic uncertainty has increased in the last few weeks despite a rise in US consumer confidence, and while today’s numbers could be a leading indicator for Friday’s payrolls report, there has been little correlation in recent months.”
The US second quarter GDP is expected to fall by 31.7% annualised, with personal consumption the main drag, tumbling 34.1%.
11.50am: TSB, Royal Dutch Shell in latest round of job cuts
FTSE 100 trimmed its losses before lunch, dipping only 2 points to 5,895.
The bank is to close 164 branches, a third of its estate, costing around 900 redundancies.
TSB said it is part of a three-year strategy to cut costs and stay competitive, while it is adapting to the growing online banking trend.
Meanwhile, Shell confirmed it is cutting between 7 to 9,000 roles to save US$2-2.5bn annually by 2022, with around 1,500 of the staff who are leaving taking voluntary redundancy.
The stock was flat at 958.2p nearing midday.
11am: Former Sainsbury’s boss to lead COVID-19 test and trace scheme
FTSE 100 turned red again in late morning, slipping 15 points to 5,882.
Mike Coupe, who was boss at big grocer Sainsbury’s (LON:SBRY) until last May, was appointed as director of COVID-19 testing as part of the test and trace scheme.
He is replacing Sarah-Jane Marsh, who quit to go back to her role of chief executive of Birmingham Women’s and Children’s NHS Foundation Trust.
How about putting those trained in actual infectious disease control in charge of Test & Trace?— Jonathan Ashworth ???? (@JonAshworth) September 29, 2020
Local public health teams should be leading contact tracing.
That way we would have an effective Test, Trace & Isolate regime that helps control this virus. https://t.co/ulmIpw1sB3
Later on Wednesday, Prime Minister Boris Johnson is scheduled to hold a conference on COVID-19 in Britain after new daily cases reached 7,143 on Tuesday.
He will address frustration over confusing local lockdown rules in the North of England, which has been met by opposition even within his own party.
Apologies, I misspoke today.— Boris Johnson (@BorisJohnson) September 29, 2020
In the North East, new rules mean you cannot meet people from different households in social settings indoors, including in pubs, restaurants and your home. You should also avoid socialising with other households outside. (1/2)
9.55am: GDP fall revised down
FTSE 100 tentatively entered the green with a 2-point rise to 5,900 in mid-morning.
Estimates for the UK gross domestic product (GDP) in the quarter to June were revised up to a 19.8% fall from a 20.4% decrease as previously forecast.
It is still the largest quarterly contraction in the UK economy since quarterly records began in 1955 and marked the second consecutive quarterly decline after a fall of a revised 2.5% in the previous quarter.
Compared with the same quarter a year ago, the UK economy fell by a revised 21.5%, according to the Office for National Statistics.
“The bulk of the pain of the second quarter’s slump in GDP had been borne by the government rather than households and businesses,” economists at Capital Economics commented.
“But with the recovery already flattening off, fiscal support fading and the full scale of the fallout in unemployment yet to be felt, that will change in the second half of 2020.”
“The renewed COVID-19 restrictions will probably mean that GDP stagnates in Q4, leaving economic activity marooned 5.5% short of its pre-crisis level. And the risk now is that renewed containment measures send the recovery into reverse.”
8.55am: Lacklustre start after presidential debate
The FTSE 100 made negligible progress as the market shrugged in a collective ‘meh’ to the first US presidential debate.
While it was good, knock-about fun, the face-off between Messrs. Trump and Biden offered nothing more than a ‘shut, man’ from the latter. Sandpit stuff.
“A messy presidential debate probably didn't swing the dial either way for undecided voters,” said Jasper Lawler of London Capital Group.
“That leaves Biden on track for the presidency if polls are to be believed.”
On the market, a strong showing from online fashion group Boohoo (LON:BOO), one of the Covid beneficiaries, wasn’t enough to support the share price, which fell 2.4% after better than expected interim results.
The figures also came with an uplift in full-year forecasts, which also appeared to be priced in by the market.
Shell’s (LON:RDSA) decision to cut 9,000 jobs was greeted by ever-pragmatic investors as a positive, with the shares advancing 2%.
Proactive news headlines
Iconic Labs PLC (LON:ICON) has unveiled a commercial partnership agreement with Glimpse Protocol, a provider of advanced technologies to Ad-tech. The media company said this collaboration allows it to be well-positioned to become industry leaders in the cookieless advertising space and future-proof this part of its business.
Sensyne Health PLC (LON:SENS) chief executive Lord Drayson said the wider adoption of clinical artificial intelligence (AI) and remote patient monitoring during the pandemic “underlined the growth potential that our model can deliver”. He was speaking following the publication of preliminary results that showed that Sensyne was gaining significant commercial traction for its model.
Vietnam Holding Limited (LON:VNH) reported US$117.3mln of total net assets at the end of June and net asset value per share was marked at US$2.308, with the discount to net asset value stated at 17.6%.
Zoetic International PLC (LON:ZEO) appears to have emerged from a transitional year in a strong position with its branded cannabidiol (CBD) line registering significant early growth. The sale of legacy oil and gas assets has allowed the team to focus on the core business and the consumer reaction to the company’s CHILL tobacco-free CBD 'smokes' and CBD chew pouches products has “exceeded expectations”, investors were told.
ImmuPharma PLC (LON:IMM) has posted a reduced loss in the first half of its current year despite disruptions caused by the coronavirus (COVID-19) pandemic as it continued to focus on progressing its Lupuzor lupus treatment.
Polarean Imaging PLC (LON:PLLX) said it expects to make the submission for approval of its Xenon Polariser lung imaging system to the US Food and Drug Administration early next month. In a statement for the half-year to June, chief executive Richard Hullihen said the company had "achieved one of its most important milestones to date, the positive readout from our Phase III clinical trials".
S&U PLC’s (LON:SUS) chairman Anthony Coombs has highlighted a “very encouraging” rebound in the company’s trading following the UK's pandemic lockdown and there were “significant opportunities” to attract new customers and increase market share going forward.
MBH Corporation Plc (FRA:MBH), the specialist SME investment holding company, has raised its acquisition target after a strong first half of 2020. The Frankfurt-listed group completed three deals in the six months to end June but has since taken that to seven and wants the figure to rise to ten or more by the end of the year.
Minds + Machines Group Limited (LON:MMX) is expecting a stronger second half as the recovery from the pandemic-related impacts continue. The website domain company, in its interim results statement, noted that its business is traditionally second-half weighted and it is expecting both revenues and earnings (operating EBITDA) to be ahead of the first half.
City Pub Group Plc's (LON:CPC) executive chairman has warned that the chancellor’s Winter Economy Plan isn’t suitable for the pub sector and will result in significant job losses. “The current package of support simply does not go far enough stave off immediate and permanent damage to an industry that pays significant tax and employs 10% of the UK's workforce,” Clive Watson said in a statement with the group’s interim results.
AdEPT Technology Group PLC’s (LON:ADT) chairman Ian Fishwick has hailed the company’s “resilience” during the coronavirus pandemic, saying that the company’s order intake has performed better than anticipated with cash collection improving since the end of April.
Bushveld Minerals Ltd (LON:BMN) generated revenue of US$43.1mln from its South African vanadium operations during the first half of 2020, down from the US$78mln generated in the corresponding period a year ago, as lower vanadium prices and lost production due to the coronavirus crisis took their toll.
NQ Minerals PLC (AQSE:NQMI)(OTCQB:NQMLF)(OTCQB:NQMIY) generated sales of £15.6mln during the six months to June 2020. Pre-tax losses amounted to £18mln, after £14mln in financing costs were added to selling and distribution expenses and administrative costs.
W Resources PLC (LON:WRES) said although the coronavirus pandemic has had an affect, production is building at its La Parilla mine as it starts to reap the benefits of operational improvements. Production in the first six months of 2020 reached 106.5 tonnes of tungsten concentrate and 64.5 tonnes of tin concentrate, resulting in half-year revenues of £1.01mln compared to £0.29mln in the same period last year.
Trident Royalties (LON:TRR) generated revenue of just under US$949,000 during the six months to June 2020, as its newly established royalty portfolio started paying out. The company lost just over £1mln before tax. Since listing on Aim in March, Trident has announced five transactions comprising a total of eight royalties.
Amur Minerals Corporation (LON:AMC) continues to push the Kun Manie mine project closer to ‘bankable’ status with the key Russian TEO report now said to be “very nearly complete”. Technical studies produced for the TEO – the Russian equivalent of a feasibility study – will feed directly into the next step, the mine’s bankable feasibility study (BFS).
Bezant Resources PLC (LON:BZN) said it has repositioned its portfolio during 2020 for a predicted surge in copper demand over the next decade. Colin Bird, executive chairman, noted the AIM-listed business had acquired a 30% interest in the Kalengwa copper-silver project in Zambia and a 70% interest in the Hope Copper-Gold project in Namibia.
Metal Tiger PLC (LON:MTR) delivered a loss before taxation of £3.4mln in the six months to June 2020. During the period the company’s net assets dipped to £23mln from £26mln in the corresponding period a year ago.
Panther Metals PLC (LON:PALM) returned a loss for the six months ended 30 June 2020 of £388,126. During the period the companies net assets rose from £414,000 as at the end of December to nearly £1.1mln.
Block Energy PLC (LON:BLOE) said it expects gas sales to commence in the fourth quarter from West Rustavi despite the coronavirus pandemic proving “very hard to predict”. The firm said gas purchaser Bago is completing the final stages of the permitting process to enable it to construct its gas sales pipeline, which they expect to have completed later this year.
ADM Energy PLC (LON:ADM) boasted excellent progress despite difficult macro conditions as it released results for the six months ended June 30. “Operations at the Aje field continued largely uninterrupted by COVID-19 and costs were significantly reduced at the asset level, bringing break-even costs down to US$28 per barrel, which ensures the asset remains profitable even at lower oil prices,” said Osamede Okhomina, ADM chief executive.
Tower Resources PLC (LON:TRP) chief executive Jeremy Asher highlighted that the company remains excited about the Thali project in Cameroon, as well as projects in Namibia and South Africa. “These are challenging times, but we do believe that we will surmount these challenges,” Asher said in the company’s interim results statement.
SIMEC Atlantis Energy Ltd (LON:SAE) told investors that it has maintained a high level of activity across each of its business units in the first half of the year. The renewable energy pioneer said in its interim results statement that it continues to see encouraging progress on all its key projects notwithstanding the operational challenges presented by COVID-19 social distancing restrictions.
Itaconix PLC (LON:ITX, OTCQB: ITXXF), the sustainable polymers group, said it had the “commercial momentum and operations in place for continued strong revenue growth", after sales rose 46% last year and net losses decreased by 86%.
Immotion Group PLC (LON:IMMO) has reported a narrower loss in its first half while the provider of ‘out-of-home’ virtual reality (VR) experiences also highlighted encouraging levels of trading at its sites that have re-opened following lockdowns in several countries during the coronavirus pandemic.
Zanaga Iron Ore Company (LON:ZIOC) said the permitted sale period for the first tranche of the company's shares issued pursuant to the share subscription by Shard Capital has been extended by three months. As previously announced, of the 7mln shares issued to Shard Capital under the first tranche of the agreement, roughly 5mln have been successfully placed by Shard Capital as at September 28, 2020.
6.35 am: Slow start predicted
The FTSE 100 is expected to start lower on Wednesday as investors struggled to swallow a fiery presidential debate between Donal Trump and Joe Biden on Tuesday night.
Spread-betters at IG are expecting the FTSE 100 will open around 22 points down after ending Tuesday’s session 30 points lower at 5,897.
The sometimes chaotic exchange between the two candidates involved multiple clashes over the state of the US as well as several personal barbs from both Trump and Biden against the other, but while some commentators have dubbed the debate as exhausting it was mostly bereft of any policy announcements that may have surprised markets.
However, prior to the debate, uncertainty seemed to dominate Wall Street’s session on Tuesday, with the Dow Jones Industrial Average closing 0.48% lower at 27,452 while the S&P 500 dropped 0.48% to 3,335 and the Nasdaq fell 0.29% to 11,085.
In Asia, investors seemed to still be digesting the outcome of the clash between Biden and Trump, however upbeat manufacturing data from China made the picture more mixed in Wednesday’s session, with Japan’s Nikkei 225 down 1.07% while Hong Kong’s Hang Seng was up 1.15%.
On currency markets, the pound was down about 0.11% at US$1.284 against the dollar, although UK GDP data due later today could provide some catalysts for movement.
Around the markets:
Sterling: US$1.284, down 0.11%
Brent crude: US$40.66 a barrel, down 0.9%
Gold: US$1,891 an ounce, down 0.34%
Bitcoin: US$10,743, up 0.51%
6.45 am: Early Markets: Asia / Australia
Asia-Pacific markets were mixed today as investors reacted to China’s manufacturing activity data for September.
China’s official manufacturing Purchasing Managers’ Index (PMI) for September came in at 51.5 as compared to 51.0 in August.
Analysts were expecting the PMI to come in at 51.2 in September. PMI readings above 50 signal expansion from the previous month, while those below 50 signal contraction.
Mainland Chinese stocks fell, with the Shanghai composite down 0.42% while Hong Kong’s Hang Seng index advanced 0.64%.
Japan was lower, with the Nikkei 225 dipping 1.43% and Australia’s S&P/ASX 200 fell 1.88%.
Proactive Australia news:
Bardoc Gold Ltd (ASX:BDC) has increased confidence in the 1-million-ounce production target at its namesake flagship project by way of an updated resource estimate with 64% of the resource now included in the measured and indicated categories.
Marvel Gold Ltd (ASX:MVL) has confirmed the success of its transition to gold explorer by delivering an upgraded mineral resource for the Tabakorole Gold Project in Mali, West Africa, with 910,000 ounces grading 1.2 g/t.
GTI Resources Ltd (ASX:GTR) has received encouraging indications from recent aircore drilling at Niagara Gold Project in Western Australia with quartz veining intersected in a number of drill holes at predicted positions.
Emyria Ltd (ASX:EMD), formerly Emerald Clinics Ltd, has signed an agreement with Zelira Therapeutics Ltd (ASX:ZLD) to collect data from patients treated with insomnia drug Zenivol™ through Emyria’s specialist clinical services.
Elementos Ltd (ASX:ELT) (OTCMKTS:ELTLF) (FRA:9EM) is poised to benefit from rising demand for tin as consumer electronics rebound strongly when global economies recover and new and disruptive technologies continue to drive consumption of the metal.
Marvel Gold Ltd (ASX:MVL) is making steady progress in its repositioning as a Mali-focused gold explorer after working hard to assemble an attractive exploration portfolio during the 2020 financial year.
Twenty Seven Co Ltd (ASX:TSC) has revealed several areas worthy of follow-up exploration during its due diligence work on potential new projects in WA's Goldfields with the Mt Dimer Gold Project proving particularly encouraging.