- FTSE 100 closes higher
- Wood Group lower after it posts a loss
- AstraZeneca shakes-off vaccine fears
5.10pm: FTSE 100 closes up
FTSE 100 closed higher on Tuesday as tech stocks in the US continued to surge and traders await Central bank comment later in the week.
Britain's blue-chip benchmark added almost 54 points at 6,803. FTSE 250 gained over 242 points at 21,764.
"It would appear the $1.9 trillion stimulus package from the US is still underpinning the rally in global stocks. In the next couple of days, we will hear from the Federal Reserve and the Bank of England but no changes to policies are expected. Monetary policies are tipped to remain very loose for the foreseeable future, so that is assisting equity markets too," noted David Madden, market analyst at CMC Markets.
Among top Footsie gainers was drugs titan Astrazeneca plc (LON:AZN), which gained 3.64% to 7,232p, despite the negative publicity swirling around in the past few days.
"A growing number of European countries have halted the distribution of the AstraZeneca-Oxford vaccine, as the respective health authorities are worried the drug is connected to patients developing blood clots. It is possible that dealers are shrugging off the news because the WHO as well as the European Medicines Agency have reiterated their view that the drug in question is safe," suggested Madden.
On Wall Street, the Dow Jones shed over 97 points at 32,860 but the S&P 500 was ahead by around six and the Nasdaq surged over 103 points at 13,563.
3pm: FTSE 100 ahead
London’s leading shares remain firmer on balance, although the early impetus has dissipated, partly because sterling has regained some of its poise.
The FTSE 100 was up 33 points (0.5%) at 6,783, with property group Land Securities Group PLC (LON:LAND), up 4.0% at 706.4p, the best performer.
Not far behind it is AstraZeneca PLC (LON:AZN), which is up 3.7% at 7,236p as controversy rumbles on over the coronavirus vaccine it developed in conjunction with the University of Oxford.
A number of European countries have stopped administering the vaccine because of reports that some people who had received the AstraZeneca jab suffered from blood clots.
The European Medicines Agency has said it has not found any evidence of causality; correlation is not causation, as the old adage has it.
Had my Pfizer vaccine on the 18th Feb then last night I stubbed me chuffing toe. Goddamn side effects! #Paracetamol #AstraZeneca #Pfizer
— VittlesCafeBroomhill (@Vittles_Cafe) March 16, 2021
Meanwhile, the company announced it has modified an existing agreement with the US Government to supply up to 500,000 additional doses of AZD7442, a long-acting antibody combination for the prevention and treatment of Coronavirus (COVID-19), currently being tested in late-stage trials in more than 9,000 participants around the world.
READ AstraZeneca extends US agreement for COVID-19 treatment candidate
https://www.proactiveinvestors.co.uk/companies/news/943927/astrazeneca-extends-us-agreement-for-covid-19-treatment-candidate-943927.html
In the resources setor, oilfield support services group Wood Group (John) PLC (LON:WG.) was 5.7% lower at 299p afer its full-year results.
$WG. John Wood Group turns a loss as COVID-19 hits global engineering and consultancy market https://t.co/Q4Hh2BX9bf #WG. #Katie_Proactive
— Proactive (@proactive_UK) March 16, 2021
2.30pm: Proactive North America headlines:
Neo Lithium Corp (CVE:NLC) (OTCQX:NTTHF) (FRA:NE2) closes its C$2.6M equity financing with Chinese investor CATL
GlobeX Data Ltd (OTCQB:SWISF) (CSE:SWIS) receives new order for its Sekur system from biotechnology firm Hemostemix
Recruiter.com Inc (OTCQB:RCRT) partners with QuickFee to bring flexible online payment solutions to more than 800,000 recruiting and HR professionals
PharmaDrug Inc (CSE:BUZZ) (OTCPINK:LMLLF) teams up with leading DMT researcher Jimo Borjigin at the University of Michigan in new study collaboration
First Cobalt Corp (CVE:FCC) (OTCQX:FTSSF) (FRA:18P) receives C$1.92M in cash after warrant expiry exercise; names Cora Klein as head of investor relations
KWESST Micro Systems Inc (CVE:KWE) (OTCQB:KWEMF) successfully achieves important milestone with TASCS system under contract for key military customer
Victory Square Technologies Inc (CSE:VST) (OTCMKTS:VSQTF) (FRA:6F6) completes sale of VPN platform
Psyched Wellness Ltd (CSE:PSYC) (OTCQB:PSYCF) (FRA:5U9) appoints financial services veteran Janeen Stodulski to its board of directors
Japan Gold Corp (CVE:JG) (OTCQB:JGLDF) (FRA:2LD) says scout drill results from Ohra-Takamine project underscore potential
Great Bear Resources Ltd (CVE:GBR) (OTCQX:GTBAF) (FRA:0G6A) adds another batch of high-grade gold results from LP Fault zone on Dixie project
Fury Gold Mines Limited (TSE:FURY) (NYSEAMERICAN:FURY) (FRA:AUN1) unveils changes in the boardroom as it positions for "next phase of growth"
Lexaria Bioscience Corp (NASDAQ:LEXX) (CSE:LXX) (OTCMKTS:LXR) reports progress in two antiviral drug studies in its 2021 applied R&D program
Heritage Cannabis Holdings Corp (CSE:CANN) (OTCQX:HERTF) (FRA:2UE) achieves its first C$1M revenue week in March on strong demand for its brands
Empress Royalty Corp (CVE:EMPR) inks deal for "bought deal" offering of units for gross proceeds of C$12,000,000
Idaho Champion Gold Mines Canada Inc (CSE:ITKO) (OTCQB:GLDRF) (FRA:1QB1) continues to see good grades near surface and depth at Baner project
ElectraMeccanica Vehicles Corp (NASDAQ:SOLO) selects Phoenix suburb of Mesa for its US-based assembly facility and engineering technical center
CytoDyn Inc (OTCQB:CYDY) appoints new chief operating officer
Renforth Resources Inc (CSE:RFR) (OTCQB:RFHRF) (FRA:9RR) says its shares now listed on US OTCQB Venture Market; gives operations update
Metalla Royalty & Streaming Ltd (NYSEAMERICAN:MTA) (CVE:MTA) (FRA:X9C) picks up royalty on large gold development project in Brazil for up to US$18M
Cloud Nine Web3 Technologies Inc (CSE:CNI) (OTCMKTS:CLGUF) closes its VPN platform acquisition from Victory Square Technologies
One World Lithium Inc (CSE:OWLI) (OTCQB:OWRDF) to resume Phase III drilling program at Salar del Diablo lithium brine property in April
Mountain Valley MD Holdings Inc (CSE:MVMD) (OTCQB:MVMDF) to start husbandry animal trials of Ivectosol 1% technology in Bangladesh
Codebase Ventures Inc (CSE:CODE) (OTCQB:BKLLF) taps entrepreneur Jacob Chernoff to assist in its Bitcoin mining and blockchain investments
Safe-T Group Ltd (NASDAQ:SFET) (TASE:SFET) announces the availability of the first-ever biometric-based Zero Trust Network Access (ZTNA) solution
Predictiv AI Inc (CVE:PAI) (OTCMKTS:INOTF) (FRA:71TA) teams up with Waterloo Artificial Intelligence Institute at the University of Waterloo in Ontario
Midwest Energy Emissions Corp (OTCQB:MEEC) signs two-year master supply agreement contract extension with major coal-fired utility located in Oklahoma
CO2 GRO Inc (CVE:GROW) (OTCQB:BLONF) (FRA:4021) welcomes sale of its technology to Canadian cannabis licensed producer
1.44pm: Wall Street off to a mixed start
The main indices on Wall Street have moved in different directions on Tuesday morning as traders seemed unsure of which way to turn.
Shortly after the opening bell, the Dow Jones Industrial Average was down 0.13% at 32,915. The other indices were positive, with the S&P 500 climbing 0.12% to 3,973 while the Nasdaq rose 0.65% to 13,546.
Markets seem to be waiting for more clarity on the direction the economy could take, with many likely to hold fire until after the Federal Reserve meets on Wednesday.
New US industrial production data may also have thrown a spanner in the works, showing a 2.2% drop in February as severe winter weather dented factory output.
Back in London, the FTSE 100 had held onto its gains into mid-afternoon and was up 40 points at 6,789 at around 1.45pm.
11.35am: US indices set for a mixed open
After hitting new highs yesterday, US markets are set for an indecisive opening today.
The Dow Jones industrial average is expected to slide 19 points to 32,934 while the S&P 500 is tipped to open one point higher at 3,970.
The Nasdaq 100, which was fell back yesterday, is again expected to be out of step, opening 58 points higher at 13,140.
“The intense focus on US treasury yields is easing, aided by a shift lower in the benchmark 10-year bond yield to 1.60% ahead of the Fed’s rate decision tomorrow," said OANDA’s Sophie Griffiths.
“No change in policy is expected. Both the GDP and inflation forecast are expected to be upgraded and accompanied by a statement from the Fed saying they will remain accommodative. A win-win for the markets, surely? Only if they believe the Fed.
“US futures are easing back off the record highs reached in the previous session. Attention will now turn to US retail sales, which are expected to ease slightly -0.5% MoM [month-on-month] in February after January’s outsized gain of 5.3%,” she added.
In London, as is often the case, the Footsie has moved into cruise control after a bright opening.
The blue-chip index is 37 points (0.6%) firmer at 6,786 with the advance led by aerospace engineer Rolls-Royce Holdings PLC (LON:RR.), up 4.4% at 123.2p, which does not seem to be fazed by reports of more countries suspending the use of the AstraZeneca vaccine, thus slowing the roll-out of the vaccination programme in Europe.
“More countries including Germany, Italy, Spain, Portugal and France are suspending the use of the AstraZeneca vaccine. Given the number of shots that have been given and the small number of incidents, it seems like an overreaction but will impact the global vaccine roll out. This incident is likely to increase vaccine scepticism, especially in Europe, which is already seeing the third wave of Covid and new lockdowns imposed,” said Rony Nehme at Squared Financial.
AstraZeneca PLC (LON:AZN) seems equally unfazed by the development but then it is selling the vaccine at cost.
“European health ministers are due to discuss the situation today and the European Medicines Agency will announce next steps on Thursday. We expect the suspension to be temporary, but a key question is what damage to the public's perception of the vaccine has been caused by the concerns, reducing the take-up going forward,” said Jakob Ekholdt Christensen at Danske Bank.
Profesional bodies are not making decisions. The governments are, on their advisement. Hence policy decisions are political in nature ....even if they are based on science.
— Dr T. (@tskould) March 16, 2021
Astra shares were up 3.2% at 7,199p after Jefferies upgraded the stock to ‘buy’ and bumped up its price target to 8,850p from 8,.250p.
READ AstraZeneca upgraded to ‘buy’ by Jefferies as pipeline should aid recovery of shares
10.00am: Sterling lends a helping hand
Helped by sterling’s weakness, the FTSE 100 is on the up and heading back towards the 6,800 level.
London’s index of heavyweight shares was up 47 points (0.7%) at 6,797.
On foreign exchange markets, the pound (GBP) has lost nine-tenths of a cent to trade at US$1.3814.
“It’s simple to explain the decline in GBP: the EU launched legal action against Britain over alleged breaches of the Brexit deal on Northern Ireland. Brussels said steps by the UK government to unilaterally ease trading conditions for Northern Irish businesses amounted to a breach of the Brexit treaty. The process could result in Britain being taken to the European Court of Justice and facing trade sanctions,” explained Marshall Gittler at BDSwiss.
“That’s all British industry needs. When you consider that UK exports to the EU have been around 48% of total UK exports (2015-2019), and when you look at what happened to UK exports to the EU immediately after Brexit anyway (-40.5% mom [month-on-month] vs +3.6% mom for exports elsewhere) you can see the toll that this could take on British industry. Of course, if you can see that, you can probably see what Brexit was a bad idea for the UK to begin with, but that’s another story,” Gittler said.
The FTSE 250 is less attuned to the value of sterling than the FTSE 100 because its constituents tend to be more UK-focused but it is actually outperforming the FTSE 100 this morning with a 205 point (1.0%) gain at 21,727.
Greggs PLC (LON:GRG), whose outlets are more ubiquitous in Britain than branches of McDonald’s, is doing its bit to support the FTSE 250, with its shares up 5.2% at 2,324p after it revealed in its full-year results it is to open 100 new company-managed shops this year.
“The pandemic clearly left its mark on Greggs, but its shares nonetheless remain on a roll,” said Richard Hunter at interactive investor, carefully observing the journalistic tradition of using the “on a roll” phrase when describing the performance of Greggs.
No mention of the turnover, apple or otherwise, though …
Me storming out of Greggs when I realise there’s no steak bakes left pic.twitter.com/CQIK31SY1X
— Kieran Ashton (@kieran_ashton1) March 9, 2021
“The various lockdowns tested the company’s resilience to the full, and the pre-tax loss for the year of £14 million compares with a previous profit of £108 million; however, broken down into two distinct halves, the direction of travel has clearly improved with a first-half loss of £65 million largely offset by a second-half profit of £51 million,” Hunter said.
Another mid-cap going well is Plus 500 Ltd (LON:PLUS), the contracts for difference trading platform operator.
The shares are 3.6% firmer at 1,370.5p after a brief but upbeat trading statement this morning.
Results for Just Group PLC (LON:JUST) got the thumbs-up from the City.
The shares are 5.3% to the good at 100p after the equity release and elderly annuities specialist said it had reached its capital self-sufficiency goal a year earlier than planned.
I wonder if the same can be said for the majority of its customers.
8.35am: London follows Wall Street's lead (for once)
The FTSE 100 made a positive start to proceedings after a lacklustre end to Monday’s trading session.
With the bond markets starting to settle back into a normal pattern of trading, Wall Street ended in a perkier mood, which appears to have buoyed sentiment on this side of the Atlantic.
With inflation worries easing (or at least being suppressed for the time being) the focus returned to the UK vaccine roll-out and the possibility of a return to some sort of normality.
Scottish Mortgage Trust (LON:SMT), one of the UK’s biggest investors in Silicon Valley, jumped 2.2% in early trade, buoyed by the strong performance of the tech-led NASDAQ index.
Leading the index was the little known Pershing Square Holdings (LON:PSH), an investor in US stocks, which nudged up 2.3%.
AstraZeneca (LON:AZN) was up 2% after its vaccine jab effectively received a clean bill of health from the UK medicines regulator and the World Health Organisation.
Proactive news headlines
Coinsilium Group Ltd (LON:COIN) has updated on the progress of its first non-fungible token (NFT) venture project as well as the forthcoming release of the Gibraltar cryptocurrency postage stamp and NFT collectable.
Guild Esports PLC (LON:GILD) has won its first major trophy after its Fortnite pro players placed first, second and eighth in the Fortnite Champion Series (FNCS) European Grand Finals on the 13-14 March.
Love Hemp Group PLC (LON:LIFE) (OTCQB:WRHLF) has signed an exclusive five year, multi-million-dollar global partnership deal with the Ultimate Fighting Championship (UFC), the world’s premier mixed martial arts organisation and the largest Pay-Per-View event provider in the world.
AFC Energy PLC (LON:AFC) said it signed a partnership with international consultancy and construction business Mace Group to support the transition to zero-emission hydrogen generators for construction sites.
Sirius Real Estate Limited (LON:SRE) is to acquire a business park in Essen, Germany, for €10.71mln in a sale and leaseback deal. The business park is currently 80% let and produces total annualised rental income of about €830,000, reflecting an average rent of €5.85 per square metre (including car parking).
Inspiration Healthcare Group PLC (LON:IHC) said a Japanese distributor has placed an initial £400,000 order for its top-of-range neonatal ventilator after the technology received regulatory sign-off in the country.
IronRidge Resources Ltd (LON:IRR) said multiple high-grade lithium targets were identified adjacent to the Ewoyaa lithium project (ELP) in Ghana.
Empire Metals Ltd (LON:EEE) has set out a programme for further work at its Eclipse gold project in Western Australia, including additional structural interpretations to support updated vein wireframes and modelling, resource modelling and estimation, and preliminary open pit optimisations.
Salt Lake Potash Ltd (LON:SO4, ASX:SO4) said the development of its Lake Way project in Western Australia was 81% complete at the end of 2020 with the first production expected in the fourth quarter of this year.
Bango PLC (LON:BGO), the data-driven commerce company, said revenues and profits were ahead of expectations in 2020.
Litigation Capital Management Limited (LON:LIT), the legal dispute finance specialist, said the flow of new business is picking up as global lockdown restrictions ease.
KRM22 PLC (LON:KRM) has hailed “significantly improved” financial performance for 2020 as the firm almost broke even as it increased revenues despite challenges during the year.
Helium One Ltd (LON:HE1) has started the acquisition of seismic data at the Rukwa project in Tanzania. The company has mobilised a data acquisition team, vibroseis trucks and geophones to undertake 150 kilometres of infill 2D seismic targeting multiple trapping styles.
Scirocco Energy PLC (LON:SCIR), which holds a 12% stake in Helium One, also flagged the update to its investors.
San Leon Energy PLC (LON:SKLE), the independent oil and gas production, development and exploration company has updated the market on its operations in Nigeria. The company is due to be repaid US$98mln in loan notes this year.
Capital Ltd (LON:CAPD) announced the awarding of two new long-term three year contracts at AngloGold Ashanti's Geita Gold Mine in Tanzania, including the continuation of surface delineation and open pit grade control drilling services, in addition to underground grade control and delineation drilling, with an expanded scope for underground drilling activities.
Canadian Overseas Petroleum Ltd (LON:COPL)(CSE:XOP) announced that the acquisition of Atomic Oil and Gas is expected to close on Tuesday.
Thani Stratex Resources, a company in which Oriole Resources PLC (LON:ORR) holds a 24.92% stake, has signed a binding heads of terms agreement with private investment company Red Sea Resources Ltd in regard to the Hodine licence in Egypt. Red Sea Resources will earn in to an 85% interest in Hodine, which is currently 100%-owned by Thani Stratex’s local Egyptian subsidiary, in return for paying all outstanding fees and charges and making staged expenditure commitments totalling US$2.2mln.
Panthera Resources PLC (LON:PAT) has noted that the Government of India has introduced a new bill (MMDR2021) into the Lok Sabha, the Lower House of the Government of India's Parliament, to amend the Mines and Minerals (Development and Regulation) Act of 2015 (MMDR2015).
Medical specialist Polarean Imaging PLC (LON:POLX) has announced plans to raise a minimum of £20mln via a placing and open offer of new shares.
Conroy Gold and Natural Resources PLC (LON:CGNR) said it expects to raise about £2.25mln, partly to fund the proposed joint venture with Demir Export AS and to meet commitments and associated costs of the company’s various licences in Ireland and Finland.
Coro Energy PLC (LON:CORO) received valid acceptances and excess applications for a total of 37.2mln shares under its open offer, which closed yesterday. Shareholders had the opportunity to subscribe at 0.4p per share on the basis of one new share for every six existing ordinary shares held.
Intellectual property commercialisation specialist Frontier IP Group (LON:FIPP) has hailed a board appointment at portfolio company Alusid as “invaluable”.
Blackbird PLC (LON:BIRD) has launched a carbon awareness study titled "Video Shouldn't Cost the Earth" developed in collaboration with environmental management consultancy Green Element.
Destiny Pharma (LON:DEST) announced it has completed the "data lock" on its Phase 2b clinical study testing its XF-73 nasal gel as a novel product for the prevention of post-surgical infections such as MRSA caused by Staphylococcal aureus and is expecting to announce the study results at the end of this month. The clinical-stage biotech also said it will announce annual results for 2020 on Wednesday 14 April 2021.
6.50 am: Footsie predicted to tick higher
The FTSE 100 is predicted to tick up on Tuesday morning after a strong finish for Wall Street overnight.
London’s blue-chip index will open around 31 points higher, after a late drop into the red the previous day, when it finished down 12 points at 6,749.7.
US stocks had an up and down day before closing on a bullish note, with the Dow Jones and S&P 500 up 0.5% and 0.7% to new record highs.
The tech-powered Nasdaq Composite was strongest, up over 1% as it continues to rebound from its big wobble at the start of the month.
“A quiet day on the US bond market was enough to tempt the herd back into action,” said market analyst Jeffrey Halley at Oanda.
“Asia's positive session will set European markets up for a positive start.
“However, the suspension of the AstraZeneca vaccinations across the bloc, and a resurgence of new infections in parts will temper the gains. Overall, equity markets seem content to follow Wall Street's lead cautiously ahead of the FOMC meeting outcome.”
Around the markets
Pound - down 0.2% to US$1.3872
Oil - down 0.7% to US$68.29
Gold - up 0.2% to US$1,734.45
Bitcoin - down 6% to US$54,891.26
6.50am: Early Markets - Asia / Australia
Stocks in the Asia-Pacific region were higher on Tuesday following an overnight session on Wall Street where the Dow Jones Industrial Average and S&P 500 closed at record highs.
The Hang Seng index in Hong Kong gained 0.34% while the Shanghai Composite in China rose 0.52%.
In Japan, the Nikkei 225 lifted 0.52% and South Korea’s Kospi jumped 0.75%.
Shares in Australia gained, with the S&P/ASX 200 closing 0.80% higher.
Proactive Australia news:
Creso Pharmaceuticals Ltd (ASX:CPH) (FRA:1X8) has become the ASX’s first psychedelics stock by way of its acquisition of Canadian psychedelic medicine company Halucenex Ltd.
Brookside Energy Ltd (ASX:BRK) (OTCMKTS:RDFEF) is enhancing its strong position in the world-class Anadarko Basin of Oklahoma by purchasing the well-bore interests and associated PDP reserves that are subject to its Drilling Joint Venture in the STACK Play.
Cipherpoint Ltd (ASX:CPT) has signed a sales and purchase agreement to acquire Brace168 Pty Ltd following the satisfactory completion of due diligence.
Galileo Mining Ltd (ASX:GAL) has completed diamond drilling at Lantern South prospect of the Fraser Range Project in WA with zones of heavily disseminated sulphide intersected from 110.5 metres to 111.35 metres and 169 metres to 171.3 metres.
Fe Ltd (ASX:FEL) (FRA:B4T) has signalled its intention to appoint emerging mining contractor Big Yellow as mining contractor for the West Wiluna JWD Iron Ore project in WA, which is approaching production.
Piedmont Lithium Ltd (ASX:PLL) (OTCMKTS:PDDTF) (FRA:PL4) has kicked off its definitive feasibility study (DFS) for its integrated North Carolina lithium hydroxide operations which will include Metso Outotec’s innovative alkaline pressure leach technology aimed at lowering the carbon footprint and improve economics.
European Lithium Ltd (ASX:EUR) (FRA:PF8) (VSE:ELI) has progressed its Phase 2 resource drilling program at the Wolfsberg Lithium Project in Austria, with the program on target and currently below budgetary expectations.
Miramar Resources Ltd (ASX:M2R) has restarted drilling at its 80%-owned Gidji Joint Venture Project, around 15 kilometres north of Kalgoorlie in Western Australian Eastern Goldfields.
Bellevue Gold Ltd’s (ASX:BGL) (OTCMKTS:BELGF) has received further strong drilling results from the recent Marceline discovery at its Bellevue Gold Project in WA, extending the known strike length to 500 metres and this remains open.