- FTSE 100 drops 38 points
- US stocks rebound at midday
- US jobless claims fall sharply
5.20pm: Oil price does FTSE no favors
The FTSE 100 closed Thursday down 38 points, 0.6%, at 6,675, and the FTSE 250 dropped 125 points, 0.6%, to 21,278.
"From a UK perspective, we are seeing continued fears over a sharp reduction in the number of vaccine imports coming from the EU," IG Senior Market Analyst Joshua Mahony wrote Thursday. "With almost 30% of the 70 million vaccine doses exported by the EU having gone to UK, a decision to limit that flow could severely hamper the UK reopening timeline. With the UK clearly well ahead of EU nations in the vaccination drive, there is a real risk that politicians such as Angela Merkel push for action as their popularity wanes."
Not helping matters is the declining price of Brent Crude Oil, which has fallen 4.47% to $61.53 a barrel.
BP PLC (LON:BP. (NYSE:BP) finished 2.6% lower at £293.70.
3.57pm: Commodity companies hit by Brent crude slide
Oil prices continue to slide, maintaining the pressure on the FTSE 100 which is chock-full of companies sensitive to commodity prices.
Brent crude has fallen 4.47% to $61.53 a barrel. Investors are cautious about further lockdowns dampening economic demand, especially in Europe.This is outweighing the concerns about supply problems following the container ship managing to block the key transport artery of the Suez canal.
Edward Moya at Oanda said: "Crude prices are lower as the short-term demand outlook continues to get downgraded as many European countries seem nowhere near to easing restrictions."
So with Wall Street also lower - albeit off its worst levels - the FTSE 100 remains firmly in the red, down 60.63 points or 0.9% at 6652.26.
As if two days of Congress testimony was not enough, Federal Reserve chair Jerome Powell has waded into the timing of the central bank removing its support measures for the economy.
He told National Public Radio that the US government's stimulus package and improved vaccine distribution meant the economy was recovering faster than expected, which will mean the Fed gradually rolling back on the amount of Treasury bonds and mortgage backed securities it has been buying. The comments have helped push 10 year yields up to 1.616%, in turn undermining the equity market.
Oanda's Moya again: "US stocks are dropping as investors shrug off improving growth and jobless claims data and focus on Fed Chair Powell’s comment about talking about rolling back aid. After months of reiterating that Fed is not ready to start talk about tapering, an early morning NPR interview delivered a candid comment [that] led everyone to think we are a few months away from hearing how the Fed will gradually change policy.
"The timing of Powell’s comments and better-than-expected jobless claims data and fourth quarter GDP painted a picture that the economy is about to see substantial progress with employment and pricing pressures. Powell’s comments are not the beginning of the taper tantrum for markets, but did provide a reminder at how dependent stocks are for the punchbowl of stimulus."
Back in the UK, the drop in the oil price means BP PLC (LON.BP) is down 2.92% or 8.8p at 292.75p while mining group Antofagasta PLC(LON.ANTO) has fallen 5.07% or 85.5p to 1600p.
Defensive stocks such as utilities are in demand, with SSE PLC (LON.SSE) up 27p or 1.89% at 1456p and Severn Trent PLC (LON.SVT) 25p or 1.1% better at 2306p.
2.35pm: Luxury goods group leads FTSE fallers
Burberry Group PLC (LON.BRBY) is the leading faller in the UK blue chip index, a sympton of the concerns of a third wave and extended lockdowns in Europe, brought to mind again after Germany reported an overnight jump in infection rates. On top of that, there fears it could face a boycott in China, given it is one of the clothing companies refusing to use cotton from Xinjiang over claims of forced labour in the region, The luxury goods group is down 120.5p or 6.02% at 1873p.
The FTSE 100 is also being weighed down by falls in commodity companies as the oil price falters, so after spending most of the morning in the doldrums it has settled well and truly in the red, down 67.27 points or 1% at 6645.62.
Still, it is off its worst level of 6618, with Wall Street also recovering from its lows albeit still firmly in negative territory. The Dow Jones Industrial Average, which fell to 32,159 at one point, is now 164.66 points of 0.51% lower at 32,255.4.The tech-heavy Nasdaq Composite is 0.44% lower while the S&P 500 is down 0.41%.
1.58pm: Proactive North America headlines:
Cloud Nine Web3 Technologies Inc (CSE:CNI) (OTCMKTS:CLGUF) powered Next Decentrum platform releases its Non-Fungible Tokens guide for global collectibles click here
Empress Royalty Corp (CVE:EMPR) closes previously announced bought deal public offering raising around C$15.75 million
Alternus Energy Group PLC (NOTC:ALT) drives continued European expansion with completion of 15MWp capacity in Romania
Plurilock Security Inc (CVE:PLUR) (OTCQB:PLCKF) inks OEM deal with Untangl to resell its cybersecurity offerings
Cardiol Therapeutics Inc (TSE:CRDL) (OTCQX:CRTPF) gets 'Speculative Buy' rating as Leede Jones Gable initiates coverage
Esports Entertainment Group Inc (NASDAQ:GMBL) (FRA:40Y1) inks esports partnership deal with the NFL’s Denver Broncos
American Manganese Inc (CVE:AMY) (OTCQB:AMYZF) (FRA:2AM) awarded South Korean patent for its ground-breaking battery recycling technology awarded South Korean patent for its ground-breaking battery recycling technology
Safe-T Group Ltd (NASDAQ:SFET) (TASE:SFET) partners with Philemon Security USA to distribute ZoneZero solution in North America
Vuzix Corporation (NASDAQ:VUZI) (FRA:V7XN) receives initial deployment order for its M400 Smart Glasses from healthcare and surgical training solutions provider
WeedMD Inc (CVE:WMD) (OTCQX:WDDMF) (FRA:4WE) debuts its first live resin extract product under the Pedro's Sweet Sativa brand
Heritage Cannabis Holdings Corp (CSE:CANN) (OTCQX:HERTF) (FRA:2UE) to launch ArthroCBD soft gel capsules; CBD product applications made with VESIsorb technology in US
HempFusion Wellness Inc (TSE:CBD.U) (OTCQX:CBDHF) (FRA:8OO) completes its CBD pilot trial related to chronic inflammation
Loncor Resources Inc (TSE:LN) (OTCQX:LONCF) (FRA:LO51) drills deepest hole on Adumbi deposit, revealing significant widths and gold grades in multiple zones
Renforth Resources Inc (CSE:RFR) (OTCQB:RFHRF) (FRA:9RR) begins drilling at Victoria Nickel target
Metalla Royalty & Streaming (NYSEAMERICAN:MTA) (CVE:MTA) (FRA:X9C) bags another two royalties in Argentina and Kirkland Lake, Ontario
GR Silver Mining Ltd (CVE:GRSL) (OTCQB:GRSLF) (FRA:GPE) expands high-grade silver-gold bulk tonnage zones at Plomosas mine area ahead of resource estimate
Exro Technologies Inc (CVE:EXRO) (OTCQB:EXROF) (FRA:1O2) to commercialize system solutions with Heinzmann motor integration
TomaGold Corporation (CVE:LOT) (OTCMKTS:TOGOF) (FRA:OTM) set to begin 10,000m drill program at Obalski next month as latest assays continue to show project's potential
NetCents Technology Inc (CSE:NC) (FRA:26N) (OTCQB:NTTCF) sees a surge in new partner sign-ups and leads
1.53pm: Wall Street opens in the red
The main Wall Street indices kicked off Thursday’s session in negative territory despite a sharp drop in US jobless claims last week.
Shortly after the opening bell, the Dow Jones Industrial Average was down 0.44% at 32,276 while the S&P 500 dropped 0.38% to 3,873 and the Nasdaq fell 0.6% to 12,884.
Back in London, the FTSE 100 was down 71 points at 6,641 at around 1.55pm.
12.54pm: US economy improves
More signs of improvement in the US, with the economy growing slightly faster in the fourth quarter than previously indicated and jobless claims better than expected.
The country's GDP rose by an annualised 4.3% in the final three months of 2020, compared to earlier estimates of 4.1% growth. Private investment was revised upwards, business investment downwards.
Meanwhile the number of people filing for unemployment benefits last week totalled 684,000, much lower than the 730,000 which analysts had been looking for and the lowest since the jobs crisis started with the pandemic a year ago. The previous week's reading was revised higher from 770,000 to 781,000.
US Initial Jobless Claims Mar-20: 684K (exp 730K; R prev 781K)
- Continuing Claims Mar-13: 3870K (exp 4000K; R prev 4134K)
— LiveSquawk (@LiveSquawk) March 25, 2021
The news has seen Wall Street futures fall further, perhaps on concerns about inflationary pressures to accompany a rebound in the economy. The Dow Jones Industrial Average is now forecast to open 87 points lower.
The FTSE 100 is also deeper in the red, down 79.46 points or 1.18% at 6633.43.
12.00pm: Markets turn negative
Wall Street is expected to open slightly lower despite positive comments on the US economy in the past couple of days of Congress testimony by Federal Reserve Chair Jerome Powell and US Treasury Secretary Janet Yellen.
Reversing early indications of a gain the Dow Jones Industrial Average is forecast to start trading down 47 points at 32,373. The S&P 500 is expected to open 6 points lower at 3883 and the Nasdaq Composite down 16 points at 12,945.
Ahead of the open come US growth figures and weekly jobless claims, both or either of which could have an impact on which way the US market ultimately goes.
US GDP is forecast to have risen by an annualised 4.1% in the fourth quarter of last year, in line with the previous provisional estimate. Meanwhile jobless claims are predicted to fall from 770,000 to 730,000, but these can sometimes produce a surprise.
The fall on Wall Street has given a jolt to the FTSE 100, with the index now down 73.82 points or 1.10% at 6639.07.
11.18am: Retailers hope for April improvement
UK retail sales were lower in March than expected, according to the latest CBI survey of the sector.
The CBI index - deducting retailers who reported a rise in sales from those reporting a decline - showed a balance of -45 balance. This was the same level as in February and worse than the forecast outcome of -37. This is well below seasonal levels, but retailers do believe there will be an improvement in April.
Ben Jones, principal economist at the CBI, said: “Retailers are looking forward to April with a sense of optimism, given the potential re-opening of the sector across the UK. However, it is clear that the potential easing of domestic restrictions next month will not be a panacea for all retailers. Expectations point to a fairly muted recovery, especially when considering that base effects will tend to flatter annual growth next month, given the historic drop in sales in April 2020.
“There may be several reasons for this caution, including the possibility of spending shifting away from retail to other sectors that are scheduled to re-open, such as outdoor hospitality, as well as continued requirements for social distancing in stores and expectations of a gradual return of footfall in town and city centres. Clothing and footwear firms in particular remained fairly downbeat.
Sales fell in the year to March, at a similarly sharp pace as last month. Sales are expected to grow in the year to April, which captures both the anticipated reopening of non-essential retail and the low base of comparison with April 2020, which saw historic falls. #DTS pic.twitter.com/iF8dqvMawZ
— CBI Economics (@CBI_Economics) March 25, 2021
The FTSE 100 is determinedly unmoved by the report, down 15.62 points or 0.23% at 6697.27.
10.48am: Mid-cap index also in decline
The UK's mid-cap index is mirroring the FTSE 100's dip into the red.
The leading index has dipped 18.51 points or 0.28% to 6694.38 while the FTSE 250 is down 51.62 points or 0.24% at 21,350.92. Leading the decliners is Cineworld Group PLC (LON.CINE), 9.53% or 9.8p lower at 93p after the cinema chain unveiled a $3bn loss and raised $213mln ahead of an expected April re-opening of its sites.
Not far behind in the losers' table is Carnival PLC (LON.CCL), down 83p or 5.14% at 1533p after the US Centres for Disease Control refused a request from the cruise industry to lift its pandemic-related restrictions on sailing in US waters. These will remain in place until 1st November, dashing industry hopes of an easing in July.
10.22am: Commodity shares under pressure
More on the miners.
AJ Bell investment director Russ Mould said: "After a big rally earlier in the year, mining stocks appear to be losing momentum with Antofagasta and Glencore among the biggest losers on the FTSE on Thursday. Investors seem increasingly concerned that the reopening of the global economy is going to experience more setbacks, meaning it is no longer a given that we’ll see soaring commodities demand."
Antofagasta PLC (LON.ANTO) is down 45p or 2.67% at 1640.5p while Glencore PLC (LON.GLEN) is 3.25% or 9.05p lower at 269.1p.
But as Mould notes, it is not just base metal businesses which are weaker: “Gold and silver miners are among the worst performing parts of the UK market this year, with Fresnillo down 20% year to date.
“Overall, it’s been quite a challenging three months for investors. The market was high on vaccine-inspired euphoria in late 2020, pricing in a lot of future earnings growth before it’s happened. Now reality is sinking in that earnings forecasts could turn out to be too optimistic.”
The market is certainly not high on anything at the moment. The FTSE 100 is drifting around in negative territory, currently down 6.58 points or 0.098% at 6706.31.
9.28am: Markets show little conviction
Leading shares have edged into negative territory, with the market being hindered by weakness in commodity companies.
The oil price has shrugged off worries about supply issues following the blockage of the Suez canal by a container ship, with Brent crude down 1.43% at $63.49 a barrel on concerns about future demand and after Wednesday's gains.
So BP PLC (LON.BP) is down 2.05p or 0.68% at 299.5p while Royal Dutch Shell PLC (LON.RDSB) has seen its B shares slip 10.8p or 0.78% to 1376p. Miners are also struggling, with BHP Group PLC (LON.BHP) down 13p or 0.58% at 2045.5p.
After adding 27 points in early trading, the FTSE 100 is now down 11.32 points or 0.17% at 6701.57.
Neil Wilson at Markets.com sums it up: "It looks to be yet another day of choppy trading in European equity markets with little conviction on either side."
It is not as if there are not things for investors to watch out for. The EU vaccine summit begins today and continues on Friday, including a discussion on a vaccine export ban.
The latest snapshot of UK retail sales from the CBI is due at 11am GMT while US GDP and weekly jobless claims should emerge around 12.30pm GMT.
8.46am: Leading shares listless
The FTSE 100 opened the session in a subdued state with sentiment dampened by the prospect of prolonged international travel restrictions and the apparent domestic slowdown of the vaccine roll-out.
Overnight, the tech stocks on NASDAQ took a bit of haircut as some investors caught a case of vertigo. In the old economy, represented by the Dow, there was little movement.
“The rotation into sectors most likely to benefit from economic recovery also continued to the detriment of the previously sought-after high growth, big tech stocks,” said Richard Hunter, head of markets at Interactive Investor.
US stock futures are pointing to a positive open on Wall Street. Asia, meanwhile, endured a nervous Thursday session.
On the Footsie, caterer Compass Group’s (LON:CPG) pre-close trading statement appears to have served up reasons to be cheerful along with a side-order of market demand for the shares, which nudged 2.3% higher.
CMC Markets (LON:CMC) led the second-liners with a 7.8% jump after raising its earnings guidance.
Still in the FTSE 250, but falling down the pecking order daily is Cineworld (LON:CINE), down 9.7% thanks to a familiar combo - a grim set of results coupled with a fundraiser. This time it has issued a £170mln convertible.
Proactive news headlines
Open Orphan PLC (LON:ORPH) said the first three volunteers taking part in the world’s first COVID-19 characterisation study have successfully completed the quarantine phase.
Medica Group PLC (LON:MGP) confirmed that its acquisition of RadMD LLC, announced earlier this month, has now completed.
NextEnergy Solar Fund Limited (LON:NESF) celebrated as it hit a key milestone, reaching its subsidy-free development target of 150 megawatts peak (MWp) generation.
CMC Markets PLC (LON:CMC) said net operating income in the year to the end of March is set to be slightly above market forecasts.
Learning Technologies Group PLC (LON:LTG) has said it expects a “strong recovery” in its content & services division as it began its current year trading in line with expectations.
Genedrive PLC (LON:GDR) said it looks at the remainder of the financial year with optimism considering the contract with Beckman Coulter Life Sciences and the ongoing opportunity with a European Ministry of Health.
Filta Group Holdings PLC (LON:FLTA) has hailed the “resilience” of its model despite the disruption caused by the coronavirus (COVID-19) pandemic as it said it had maintained positive earnings in 2020.
Faron Pharmaceuticals Oy (LON:FARN) said in its full-year results statement that it is becoming increasingly confident in bexmarilimab, its Clever-1 targeting precision immunotherapy. The company rapidly expanded its clinical development programme for Clevegen in 2020, resulting in the loss for the year widening to €16.95mln from €13.26mln in 2019.
Induction Healthcare Group PLC (LON:INHC) announced that a London-based NHS trust has chosen its Induction Switch platform to support its 8,000 clinicians and staff over a three-year contract.
Ncondezi Energy Ltd (LON:NCCL) said positive tariff negotiations continue as part of its plan to sell all power generated by its 300MW coal fired power project and coal mine in the Tete Province to Electricidade de Moçambique (EDM).
Jubilee Metals Group Plc (LON:JLP) posted a four-fold jump in interim pretax profit on higher PGM production and prices and said it expected 2021 to be another transformational year.
Ceres Power Holdings has appointed one of the founding members of ARM Holdings, one of the UK’s great tech success stories of the past two decades, to its board as independent director.
Tirupati Graphite PLC (LON:TGR) has appointed a world-leading graphene scientist and mineral processing technology expert, Dr S. K. Biswal, and strengthened its team across its three business units to support the company’s rapid growth.
Guild Esports PLC (LON:GILD) told investors it has signed a two-year multi-million-pound sponsorship deal with the Subway sandwich chain covering 55 markets in the EMEA region.
Primary Health Properties PLC (LON:PHP) announced that the second quarterly interim dividend in 2021 of 1.55 pence per ordinary share of 12.5 pence each will be paid as a property income distribution. The payment will be made on 21 May 2021 to shareholders on the register on 6 April, with a scrip alternative being offered.
Capital Limited (LON:CAPD) executive chairman Jamie Boyton purchased 225,000 ordinary shares in the company on 24 March 2021 at a price of 65p apiece.
Accesso Technology Group PLC (LON:ASCO) chief executive Steve Brown purchased 13,000 ordinary shares on 23 March 2021 at an average price of 575p per share.
Oncimmune Holdings Plc (LON:ONC) has launched a £9mln equity funding to support the growth of its ImmunoINSIGHTS business, in Dortmund, which is in-demand and has a growing pipeline of commercial prospects.
Polarean Imaging PLC (LON:POLX) announced that that it received notification from a warrant holder to exercise warrants representing 358,713 ordinary shares, for which the exercise price was 15p apiece.
LoopUp Group PLC (LON:LOOP) notified that it will announce its unaudited preliminary results for the year ended 31 December 2020 on Tuesday 30 March 2021.
6.50 am: Footsie set for a subdued start
The FTSE 100 is seen starting Thursday’s session slightly lower after US equities struggled on Wednesday and Europe continues to tangle over vaccines and next-wave covid concerns.
London’s blue-chip benchmark is marked down around 11 points by IG Markets which makes a price of 6,698 to 6,701 with just over an hour to go until the open.
There’s no fireworks just a general easing of sentiments, and perhaps fatigue.
“US markets on the other hand found the going a lot tougher after the Nasdaq and Russell 2000 rolled over sharply into the close, however unlike on previous occasions there was no specific catalyst,” said Michael Hewson, analyst at CMC Markets.
“Bond yields couldn’t really be blamed given that US 10-year yields finished lower on the day.”
In New York, the Dow Jones was down a sliver closing Wednesday at 32,420 whilst the S&P 500 dipped 0.55% to 3,889.
The Nasdaq meanwhile stretched losses, down just over 2% to finish Wednesday at 12,961 and the small-cap Russell 2000 index similarly shed 2.35% to end the day at 2,134.
This morning in Asia, Japan’s Nikkei rallied 324 points or 1.14% to 28,729 and Hong Kong’s Hang Seng was on the back foot, down 0.05% to 27,904. The Shanghai Composite similarly slipped slightly lower to 3,364.
Around the markets
The pound: US$1.3683, down 0.02%
Gold: US$1,734 per ounce, up 0.42%
Silver: US$25.06 per ounce, up 0.02%
Brent crude: US$63.21 per barrel, down 1.8%
WTI crude: US$59.91 per barrel, down 2.07%
Bitcoin: US$52,956, down 3.43%
6.50am: Early Markets - Asia / Australia
Stocks in the Asia-Pacific region were mixed on Thursday following a sell-off in the tech sector overnight on Wall Street.
The Hang Seng index in Hong Kong fell 0.14% while the Shanghai Composite in China dipped 0.07%.
In Japan, the Nikkei 225 gained 1.14% and South Korea’s Kospi rose 0.24%.
Shares in Australia gained, with the S&P/ASX 200 closing 0.17% higher.
Proactive Australia news:
Nanoveu Ltd (ASX:NVU) has soared on securing Nestlé Professional, a leader in out-of-home branded hot and cold beverage and food solutions, as a customer for its Nanoshield screen protectors.
Kingston Resources Ltd (ASX:KSN) (FRA:RZZ) has moved to 100% ownership of the 3.6-million-ounce Misima Gold Project in PNG after completing all terms with former joint venture partner Pan Pacific Copper Co Ltd (PPC) to acquire the remaining 19% interest in the large-scale development project.
Kingwest Resources Ltd (ASX:KWR) has made the final cash and share payment to Horizon Minerals Limited (ASX:HRZ) of $1.625 million cash and 10,833,333 ordinary shares to acquire 100% of the Menzies and Goongarrie gold projects.
Theta Gold Mines Ltd (ASX:TGM) (OTCMKTS:TGMGF) has entered an At-The-Market (ATM) subscription agreement with Acuity Capital, providing up to A$15 million of standby equity capital with the expiry date set for July 23, 2023.
Elixinol Global Ltd (ASX:EXL) (OTCQB:ELLXF) has been notified by the European Industrial Hemp Association (EIHA) that both full-spectrum and natural isolate products of EIHA’s Novel Food Consortium partners can remain for sale on the UK market.
Strategic Elements Ltd (ASX:SOR) subsidiary Stealth Technologies has demonstrated the potential of its automation & robotics platform (AxV) for use in the multi-billion-dollar global agriculture sector.
Rumble Resources Ltd (ASX:RTR) (FRA:20Z) has started a 2,500-metre reverse circulation (RC) drilling program at Earaheedy Zinc-Lead-Silver Project in Western Australia targeting large tonnage, flat-lying, near-surface sandstone-hosted zinc-lead deposits.