FTSE 100 blows higher

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The UK equity benchmark ended the day up over 111 points at 5,958, while the FTSE 250 added more than 338 at 16,291.

  • The FTSE 100 index closes 111 points
  • Carnival among the greatest ascendants in the hope of a relaxation of the directives of physical distancing
  • Burford Capital Leaves Niche After Portfolio Success

5.15 p.m .: closing of the FTSE 100

The FTSE 100 index closed on the front end, but Wall Street was optimistic as technology stocks weighed.

The first British benchmark ended the day up 111 points to 5,958, while the FTSE 250 added more than 338 to 16,291.

“There is a growing sense of optimism that the blockages have helped contain Covid-19, and a relaxation of restrictions appears to be looming,” noted David Madden, market analyst at CMC Markets.

“A number of countries have already reopened some small aspects of their economies, and there is hope that the trends will continue. Unfortunately, the pandemic continues to spread, but it looks like the rate of growth has cooled, so dealers have another reason to be bullish. “

On Wall Street, the Dow Jones lost about six points, while the tech-heavy Nasdaq lost about 81 points.

Oil was mixed with the US benchmark down about 5% to US $ 12.14 per barrel, while Brent crude was up US $ 20.25, up 1.3% .

3:30 p.m .: Happy days are back for Footsie

The FTSE 100 hung on to its three-digit gain entering the last trading hour.

In a sure sign that traders are trying to ease lock restrictions in the near future, the cruise operator (), up 10% to 1015p, is the second best performer in Footsie, up 106 points ( 1.8%) to 5.953.

“Naturally, the mood is helped by reports that cities and states around the world are starting to reopen or at least planning,” Craig Erlam told OANDA.

“We seem to have passed the peak of the virus, for now, in the most affected regions of Europe and North America, which is a relief, but any reopening will be extremely gradual, so that a return normal will not occur at any time. soon. The “new normal”, that is to say, “he added.

(), the disputed lender of the hedge fund Muddy Waters at a time which now seems different, jumped 21% to 491.5p after an update of its portfolio.

In the first four months of 2020, Burford obtained court results or arbitral awards which, if paid in full, would generate substantial income and cash receipts, the company said.

Another company that has been criticized in the past, the outsourcing company Mitie Group PLC (), hardened by 4.0% to 67.3p after reassuring the market that the results for the year to end of March would be in conformity to the indications given on January 30 – if you remove the effects of the coronavirus situation on its activity.

3:20 p.m .: American consumer confidence collapses

Other US economic data to ignore for investors … American consumer confidence fell in April.

The Conference Board consumer confidence index fell to 86.9 in April from 118.8 in March.

The Current Situation Index, which is based on consumers’ assessments of current business and labor market conditions, plunged to 76.4 in April from 166.7 in March, although on the positive side, the expectations index, which is based on the short-term consumer outlook for income, the economy and the economy increased to 93.8 from 86.8 in March.

“Consumer confidence sank considerably in April, driven by a serious deterioration in current conditions,” said Lynn Franco, senior director of economic indicators at the Conference Board.

“The 90 point drop in the current situation index, the largest ever recorded, reflects the sharp contraction in economic activity and the sharp increase in unemployment claims caused by the COVID-19 crisis,” added Franco. .

“Consumers’ short-term economic and labor market expectations have improved, possibly due to the possibility that home-keeping restrictions may soon loosen, as well as a reopening of the economy; however, consumers were less optimistic about their financial outlook, which could impact spending as the recovery takes hold. The uncertainty of the economic effects of COVID-19 will likely cause expectations to fluctuate in the months to come, “predicted Franco.

Ignoring the above, the Dow Jones extended its gains to 24,393, up 265 points.

In London, the FTSE 100 increased by 117 points (2.1%) to 5,969.

2:50 p.m .: US stocks out of stock

US stocks got off to a good start, as traders welcomed the positive rumors of the loosening of lock restrictions around the world.

The Dow Jones index rose 230 points (1.0%) to 24363 while the S&P 500 rose 26 points (0.9%) to 2904.

The good start was recorded despite some dismal data on the advance merchandise trade in the United States.

The forecast merchandise deficit reached $ 64.2 billion, compared with $ 59.9 billion, which was more serious than economists at $ 55.0 billion had predicted.

“The consensus forecast did not take into account the sharp drop in exports signaled by the decline in container movements out of the main ports,” said Ian Shpeherdson, chief economist at Pantheon Macroeconomics.

“Total exports of goods fell 6.7%, easily offsetting the 2.4% drop in imports. The decline in exports was led by automobiles, down 17.8%, but imports of consumer goods and equipment also fell sharply. We anticipate another big drop in all of these components in April, but May should be a little better, ”predicted Shepherdson.

In London, the FTSE 100 rose 115 points (2.0%) to 5,962, despite the British pound rising three-tenths of a cent against the US dollar to $ 1.2459.

1:15 p.m .: Wall Street should start higher

US markets are expected to improve on Wednesday, as the easing of coronavirus locking measures in several countries has boosted market sentiment on Wall Street.

Investors may also be willing to look beyond the grim situation in the oil markets and more into stocks as the earnings season in the United States begins to peak and the prospect of further bank stimulus central banks increases the risk appetite for equities.

Some expect the Dow Jones industry average to rise to around 330 points, bringing it to a seven-week high.

Meanwhile, in London, the FTSE 100 was up 102 points to 5,948 just after 1 p.m.

12:25 p.m .: Hope for relaxation of lock restrictions stimulates sentiment

More news from the retail industry that seems to contradict some of the data released by market research group Kantar this morning.

The CBI’s monthly Distribution Trades (SDR) survey, which was conducted between March 27 and April 15, reported the largest drop in sales from year to April since December 2008 – a balance of -55% in April, against -3% in March. . This represented the lowest common balance in the history of the investigation.

The CBI reported that two-thirds of the retailers surveyed said that the coronavirus (COVID-19) had a significantly negative impact on their domestic sales.

39% of retailers reported total cessation of activity in the UK due to COVID-19 while 44% of retailers reported temporary layoffs and 8% of permanent layoffs.

Almost all retailers (96%) reported cash flow difficulties, with just under half experiencing difficulties in meeting their tax obligations (40%). 31% of retailers also faced constraints on the availability of external funding, said the CBI.

“It is not surprising that the foreclosure is hitting retailers hard. Two-fifths have closed completely for now, and sales of groceries and other necessities have also fallen, suggesting that households may have drawn on pre-lockup stocks or tightened their belts more generally as income suffers, ”said Rain Newton. -Smith, chief economist of the CBI.

“Although the livelihoods of hundreds of thousands of retail workers remain at risk, there are encouraging signs that the government’s job retention program is a real relief, with many opting for layoffs temporary rather than permanent.

“Continued support to retailers to cover their fixed costs will be vital to ensuring that businesses can reopen when it is safe and appropriate,” he added.

Howard Archer, chief economic adviser to the EY ITEM Club, noted that the British Retail Consortium also reported that buyer traffic has dropped 83% since the government closed non-essential retail stores in March.

“Grocers and specialty food and beverage stores resisted the weaker trend in April with very strong growth reflecting some household storage that has occurred,” said Archer.

“Meanwhile, the short-term fundamentals of consumer spending have clearly suffered a substantial slowdown due to the coronavirus. Some people have already lost their jobs, despite government support, while others may fear losing their jobs after the leave is over. In addition, many revenues have been affected.

“In addition, consumers are likely to take a much more cautious approach to discretionary shopping given the current economic environment,” said Archer.

Online sales are becoming more and more important, Archer noted, but added that they could only represent a limited amount of the lost business.

“Significantly, online sales as a percentage of total retail sales hit a record 22.3% in March,” said Archer.

The FTSE 100 increased by 86 points (1.5%) to 5,932.

11:30 am: Advance accelerates

After a hesitant start, the Footsie found its mojo and crossed the 5,900 mark and now plans to return to 6,000.

To put this in context, the last time the index was over 6,000 was March 6.

The index is currently up 91 points (1.6%) to 5,938.

“Other gains for the FTSE 100 seem odd one morning when major components like BP and report low earnings, but for the most part, the index winners are the ones who will see a recovery in activity as the blockages are loosening in most of the world, if not perhaps not yet in the UK, “said Chris Beauchamp of IG.

Financials are in the foreground this morning, with the life insurance consolidator (), up 6.8% to 608p, the banking giant () and Group PLC () – up 6.3% to 96 , 82p and 5.5% to 113.45p – plus wealth management from the firm St James’s Place PLC (), up 5.8% to 840.6p, the peloton’s selection.

Among mid-cap stocks, building materials supplier PLC () and fantasy war games company Games Workshop PLC () are doing well.

was up 4.0% to 1,060.5 points after highlighting that the branches of all of its activities remain open.

Irish investment bank Goodbody says the first quarter trade update shows the builder “one of the winners despite Covid-19”.

“Given the time spent indoors and the DIY boom caused by foreclosure in the UK, the group has been working to increase activity and since April 20, it has opened more commercial branches with a third of network open during the lockout, ”said Robert Eason, equity co-manager Capital Markets at Goodbody.

Games Workshop fought 9.2% to 5,810p after announcing that it would resume online orders starting Friday.

9.45 a.m .: Hesitant progress

The FTSE 100 made hesitant progress this morning with risers among its components outnumbering just over two to one.

The leading London stocks index rose 22 points to 5,868, as insurance companies – likely to benefit from a recovery in the global equity markets – were among the top picks.

“European stock markets are posting weak gains, with traders still hoping that the bottlenecks will be eased. There is a feeling that social distancing policies have helped governments to contain the Covid-19 crisis as infection and death rates decline. Dealers feel that looser restrictions are in the works, ”said David Madden of CMC.

The supermarkets cited are not so happy after the release of market share data for grocery stores released this morning by market research group Kantar.

Sales of take-out groceries in Britain increased 9.1% in the 12-week period ending April 19, according to the latest figures from Kantar.

Spending at Sainsbury’s was 8.4% higher than the same period last year and 7.2% at Tesco. Morrisons and Asda recorded increases of 4.3% and 3.5% respectively.

Despite this, Wm Morrison Supermarkets PLC () was down 1.6% to 183.2p, () was 1.6% lower at 197.95p and () was down 0.6% to 233, 8p.

8:30 am: The results weigh

The FTSE 100 got off to a poor start with the benchmark retained by the low numbers of () and (LON: BP), two of its largest components.

The British benchmark fell 9.5 points to 5,837.31. Wall Street closed in positive territory overnight, but it was a different picture in Asia on Tuesday, where markets performed mixed as reality set in.

Stocks in London lost 1.7% in early trading after Asia-focused banking giant announced first-quarter profits halved and told investors it is preparing financially the impact of blocking coronaviruses.

“The fact that we have set aside a large sum for defaults related to coronaviruses is not exactly a surprise and we are in fact reasonably impressed with how performance has held up so far,” said Nicholas Hyett, equity analyst at Hargreaves Lansdown.

“Loan growth has offset pressure from falling interest rates, while increased volatility in the financial markets may in fact be good news for investment banking. At the same time, the bank’s capital base was able to absorb the depreciation and the increased risk profile of the bank’s loans without deteriorating significantly, but thanks to the suspension of the final dividend in 2019. ”

Meanwhile, BP stocks lost 2% as the oil major reported a “historic” loss of US $ 4.36 billion for its first quarter as the coronavirus pandemic (COVID-19) and a strong Falling demand for oil was taking its toll, although the company has maintained its dividend. .

Far from the numbers, easyJet () landed with a bump, down 1.7% after a period of profit taking after Monday’s positive performance.

The low-cost airline is not only one of the main victims of the coronavirus epidemic, but it is also involved in a problem of resolution with its founder, Sir Stelios Haji-Ioannou, about the delivery of new planes. .

But on the upside, Games Workshop () registered a 9% increase after declaring that it was poised to make profits of £ 70 million for the year ending next month. He also obtained an overdraft of £ 25 million.

Proactive news headlines:

() announced a decrease in full-year losses and an increase in revenue for 2019 and said that trade for the first quarter of 2020 was “above expectations”. Publishing its results for the year ended December 31, 2019, the mobile gambling company recorded a loss of £ 4.6 million compared to continuing operations, compared to £ 5.6 million in 2018, while revenues jumped 11.5% to £ 6.9 million.

(LON: ROCK) revealed that the results of its January 2020 rock sampling program identified a gold-copper-nickel-cobalt-platinum-palladium anomaly located just two kilometers north of the gold deposit of the Plateau company on Lighthouse housing in North Queensland, Australia. In a press release, the new anomaly, called Split Rock, is likely to improve the prospectivity of the immediate vicinity of the Plateau. Split Rock shares access tracks with Plateau, allowing minimal mobilization of platforms between the two prospects.

(), the company specializing in the development of small molecule drugs, has announced that its CEO, Dr. Tim Mitchell, will make a presentation at BioTrinity 2020, which will be delivered digitally from April 28 to May 1, 2020. The group said that the presentation will provide an update of the two exclusive Sark TYK2 / JAK1 kinase inhibitor programs, SDC-1801 and SDC-1802, targeting autoimmune diseases and cancers respectively. Dr. Mitchell will also highlight the emerging potential of this mechanism to modulate severe inflammatory responses and respiratory symptoms resulting from coronavirus and other viral infections, he added. The presentation will be made via the BioTrinity virtual portal and will be available to participants registered during the conference and until May 9 at least. https://biotrinity.com/showcase. And a copy of the presentation will also be available on the Company Website.

() (OTCQX: ANPCY) believes that its revolutionary liquid biopsy system could have a role to play in helping to guide the trials of the next wave of cancer immunotherapy. Its Parsortix system is used to harvest circulating tumor cells. Now, ANGLE scientists are using what is called an immunofluorescence imaging test to check the programmed expression of the death ligand 1. Known as PDL1, this particular protein helps to prevent immune cells from attack non-harmful cells in the body. However, it also allows cancer cells to trick the immune system and avoid being attacked as strangers. If the expression of PDL1 in a patient’s cancer cells is high, he or she will likely benefit from immunotherapy.

PLC () has declared that Sure Valley Ventures, in which it holds a 25.9% interest, has participated in a 2.2 million euro (£ 1.9 million) round of financing for a company named Buymie. Buymie has developed a platform that uses artificial intelligence (AI) to allow customers to access large grocery retailers and receive short-term delivery to a selected destination in less than an hour. The company has signed a multi-year partnership with Ireland to provide personalized online grocery service, while consumers can also use Buymie to buy from Tesco in the country.

() indicated that it has started a second phase of drilling program on the Zaranou gold project in Côte d’Ivoire. The license borders Ghana and is on strike from major operating gold mines, including the five million ounce Chirano mine and the 5.5 ml Bibiani mine. In an update, the company said it will undertake approximately 8,000 meters of air drilling and 1,000 meters of reverse circulation drilling.

() announced that it had successfully raised £ 139.8 million thanks to a substantially oversubscribed placement of 135,748,028 new common shares at 103p each. The group said that after careful consideration of the level and quality of demand in the show, along with the possibility of acquiring additional assets, its board of directors had decided to increase the size of the issue to 139.8 million pounds sterling from the initial level of 100 million pounds sterling, and added that despite the increase in the size of the issue, investor demand far exceeded gross proceeds collected and, as such, a reduction exercise was undertaken.

() welcomed the decision of its partner Cobre to take full control of its subsidiary Toucan Gold, the vehicle owner of the Perrinnvale project in Western Australia. The resource investor has agreed to invest an additional 310,000 Australian dollars (161,000 pounds) in Cobre to help finance the transaction, which will see the Australian listed company pay 527,000 Australian dollars and issue 6 , 16 million shares to buy out the 20% of minority owners. . Metal Tiger’s investment will maintain its stake in Cobre at 19.9%.

European Metals Holdings Ltd (LON: EMH) (ASX: EMH) said its Czech subsidiary Geomet has now received € 29.1 million after entering into an agreement with electricity company CEZ The investment agreement € 29.1 million between European Metals and CEZ is now concluded. As a result, CEZ now holds a 51% stake in Geomet, which is the licensee for the Cinovec project, the largest European hard rock lithium project.

(), the Australian-based gold exploration and development company, announced that at its Annual General Meeting (AGM) on Monday, all of the proposed resolutions had been passed.

(), the international provider of technical and creative services to the global video game industry, has confirmed that, given the restrictions imposed by the coronavirus (COVID-19), it is no longer possible to hold its annual general meeting (AGA) in the way the board of directors had planned and, therefore, unfortunately it cannot allow the shareholders The AGA will rather be convened on May 27 in the offices of the company, 39 Earlham Street, London, WC2H 9LT , United Kingdom, with the minimum quorum required of two shareholders (President and Chief Executive Officer) present to conduct the business of the meeting. The group’s board of directors has declared that it strongly encourages shareholders to vote by proxy instead of appearing in person and shareholders are also encouraged to submit any questions they would like answered at the annual general meeting. by emailing them to [email protected] to be received no later than May 22, 2020. A video link to a presentation of the CEO’s presentation will be available to shareholders from 11:00 am. the day of the AGM Company Website.

6:30 am: Footsie must start on the front foot

The FTSE 100 is set to kick off on Tuesday as markets continue to gain confidence in the gradual lifting of coronavirus blocking measures worldwide.

The benchmark London was called nearly 20 points higher than the top open bettors, continuing the positive start of the week after finishing 94 points at 5846 on Monday.

Major Wall Street indices closed higher on Monday, with the Dow Jones Industrial Average increasing more than 358 points, or 1.5%, to 24,133.78, the broader S&P 500 increasing 1.5%, and the Nasdaq Composite loaded with technology increasing by 1.1%.

Asian stocks were more mixed on Tuesday, with the Japanese Nikkei 225 down 0.2%, the Hang Seng in Hong Kong up 0.5% and the Chinese composite dish of Shanghai.

“While stocks have continued to comfort themselves from the generosity of central banks, economic data has gotten worse and worse and should not improve in the short term, which means investors seem to be banking on a rapid return to normal as governments slow relax the restrictions, “said Michael Hewson, market analyst at CMC Markets.

He said Tuesday’s economic data should reinforce the blow for the British consumer, with the latest CBI retail sales figures for April expected to show a sharp drop to -40 from -3 in March.

In the news of the British company, PLC () launched the updates to the banking results of the week by publishing its figures in Hong Kong earlier, showing a sharp drop in profits as it provisioned bad debts of the impact of the coronavirus pandemic worldwide.

Pre-tax profit for the first quarter of 3.2 billion US dollars (2.6 billion pounds) fell 48% from the same period last year, worse than the analysts’ consensus forecast of 3.67 billion US dollars.

The bank, which owns large businesses in many corners of the world, increased its expected credit losses from $ 2.4 billion to $ 3 billion due to the impact of the pandemic and the collapse in prices oil, while taking “a significant charge related to a company exposure in Singapore”.

Later, () will make a much awaited update, with investors wondering if the “supermajors” will keep their dividends.

For BP’s new boss, Bernard Looney, it’s hard to set foot under the desk.

Trade updates about a month ago suggested that BP and Shell could afford to keep their dividend payments short term, but that was before crude prices plummeted further.

Analysts at UBS estimate that investors will be interested in the visibility of Looney’s divestment plans, which are expected to generate US $ 10-15 billion by mid-2021 and which are essential to depress the gearing of the industry, the company announced Monday that it has accepted revisions to its US $ 5.6 billion Alaska asset sale, with more modest payments now owed by Hilcorp in 2020.

Around the markets:

  • Pound down 0.1% to US $ 1.2416
  • Oil – Crude Brent down 3.2% to US $ 19.35 per barrel, Crude WTI down 11.5% to US $ 11.31
  • Gold down 0.6% to US $ 1,717.25

Important announcements expected on Tuesday:

Trading announcements: (), Holdings PLC (), PLC (), PLC (), (), Bank Pekao SA (LON: BPKD)

Finals: (), (), ()

City titles:

FT

  • Sunak plans “phasing out” of job support program – Chancellor plans to wean economy from 4 million coronavirus worker assistance program while avoiding unemployment spells
  • US oil prices plummet as coronavirus fuels storage fears – traders fear WTI crude will turn negative as pandemic hits global economy
  • UK National Health Service survives first wave of coronavirus – health officials believe service has passed the biggest test since its inception
  • EU to relaunch work on Big Tech regulation – after pause on coronaviruses, Brussels plans to ask companies for data audits

Time

  • The imposition of social distancing and other security measures after the lifting of the foreclosure could threaten the survival of thousands of businesses
  • Oil collapse puts 30,000 jobs at risk – bleak outlook for UK offshore industry as prices fall again
  • Failed airline planes will flood the aviation market – a thousand inexpensive planes added to the woes of Airbus and Boeing coronaviruses
  • £ 82 billion home sales stalled in Britain, says online real estate portal

Telegraph

  • Boris Johnson has promised to “set the engines of the economy” on fire with a plan to “refine” the closure of the coronavirus, which he will unveil by the end of the week.
  • Tesco begins to fire an army of temporary workers – after hiring an additional 45,000 workers at the height of the crisis, the supermarket lets some leave earlier than expected
  • Middle East funds cut trophy hunt in the West – regional sovereign fund leaders are now looking for troubled debt opportunities

Guardian

  • Ministers meet unions and businesses to plan UK return to work – talks to establish practices that reassure employees that they can safely exit the lockout
  • Britain breaks record for coal-free electricity – coal-fired power plants have not contributed to the grid for 18 consecutive days
  • UK to stop multiple ventilation projects after demand drops – many available devices remain unused due to interlocking and less invasive treatment



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