FTSE 100 Closes Much Higher as Hopes of Slower Pandemic Boosts Mood

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  • The FTSE 100 index closes 2.19% higher
  • British pound rallies to US dollar
  • American indices on the rise

5:10 p.m .: FTSE 100 closes

The FTSE 100 Index closed higher on Tuesday as travel-related stocks were trendy, with the bullish sentiment continuing.

The UK benchmark finished more than 122 points, or 2.2%, to 5,704. The FTSE 250 midcap index was also higher, up more than 732 points to 15,545.

“With the market focusing on the coming weeks, traders have adopted an optimistic tone as we see a number of countries reversing the trend on the coronavirus,” noted Joshua Mahony, senior market analyst at IG, the trader in line.

Stocks on Wall Street were also higher. The Dow Jones Industrial Average added about 642 points to 23,322, while the larger S&P 500 gained more than 65 to 2,729.

Mahony noted that travel companies had risen that day, government transport minister Chris Heaton-Harris noting that the government could take a stake in some of the most affected airlines.

“The air traffic controller’s decision to delay £ 1 billion in fees has provided other rare good news today, alleviating some of the financial pressures at the moment,” he added.

Among the best Footsie elevators was low-cost airline EasyJet (), which added more than 15% to 635.80p. The besieged cruise ship operator Carnival () added more than 22% to 874.80p.

4:00 p.m .: London comes out of the boil, following the example of New York

Although still in positive territory, the Footsie no longer shows a three-digit gain.

The London blue chip index turned south at around 3 p.m. and is now at 5,673, up 91 points (1.6%).

“Although the Dow Jones initially exploded, it cooled slightly when the opening bell pulled, which reduced Europe’s gains in the process,” Connor Campbell told.

“An increase of 400 points is nothing to sniff; however, it is significantly lower than the 800 point increase posted by the Dow Jones at the very start of the session, keeping it above 23,300, but below its 23,400, four-week highs, “he said. he adds.

2:50 p.m .: US stocks are quickly out of the market

The US indices opened significantly higher although the gains do not quite correspond to the progression of Footsie.

The large-cap London equity index rose 175 points (3.1%) to 5,757 while in the United States, the S&P 500 rose 73 points (2.7%) to 2,736.

The more closely based Dow Jones 30 stock is in line with Footsie’s pace, up 3.1% (701 points) to 23381.

In London, only four Footsie stocks do not get the program and the four stocks worked well when the market was in free fall, namely the pharmaceutical companies Hikma Pharmaceuticals PLC () and PLC (); grocery delivery specialist (); and PLC of essential household goods manufacturer ().

2:00 p.m .: American clues should storm the ramparts under the open sky

London’s flagship stocks maintained morning gains, buoyed by expectations of a brutal start to Wall Street proceedings.

The FTSE 100 rose 170 points (3.1%) to 5,753, despite the pound’s rise of one cent and a quarter against the US dollar to US $ 1.2355; a high exchange rate is generally considered to be an obstacle to the performance of Footsie.

Sterling rebounded after first striking after learning that Prime Minister Boris Johnson had been admitted to an intensive care unit suffering from the effects of the coronavirus (COVID-19).

In the United States, the Dow Jones is expected to open around 778 points to 23,458, while the S&P 500 is expected to start 76 points higher at 2,740.

12.50 p.m .: always on the front foot

Footsie is near its intraday high without much help from the heavily weighted oil titans despite the sharp recovery in oil prices.

The London Heavy Stock Index rose 168 points (3.0%) to 5,750, just 29 points from its highest intraday level.

“G20 countries should send oil ministers to emergency meeting on Friday, sign that there is a chance that OPEC and Russia may lead other oil-producing countries to cut production global, “said brokerage store, SP Angel.

“However, the feeling of a massive reduction in production still arouses a great deal of skepticism. This is largely due to the fact that Trump has tempered the hopes that emerged yesterday from a meeting with US oil leaders and has said that the free market will fix things, “said the broker.

“This statement may have prompted OPEC + to delay a meeting until the end of this week.

Saudi Arabia has delayed publishing its monthly price list, an influential data point that offers both a price benchmark and a window into Saudi strategy. The delay suggests that Riyadh will wait and see if there is progress in the OPEC + talks before taking action in one way or another, “said SP Angel.

On the futures markets, Brent crude oil for June delivery is up 91 cents to US $ 33.95 per barrel.

() seems largely oblivious to the evolution of the price of oil and rose only 1% to 339.05p; The Anglo-Dutch rival (), up 2.3% to 1470p, was a little more reactive.

Limited () and () are two titles that are doing particularly well in the petroleum sector.

climbed 71% to 1.2p after reaching an agreement to allow 3D seismic data on its offshore Namibia block, 2011A (PEL0094).

Premier Oil climbed 16% to 29p after proving that mobile hydrocarbons exist in the Charlie-1 well, with sampling confirming a large discovery of condensate in the Torok formation.

11.45 a.m .: British productivity (was moving in the right direction)

Labor productivity, as measured by hourly output, in the United Kingdom for the fourth quarter edged up 0.3% year over year.

This increase is explained by a growth in gross value added of 1.1% compared to the same quarter of the previous year, while the hours worked increased by 0.8%.

The 0.3% growth in hourly output is largely due to good construction performance, while manufacturing contributed the most negatively to productivity growth in the overall economy, said the Office for National Statistics.

“Although slight, the 0.3% year-over-year increase in hourly output in the fourth and third quarters of 2019 actually marked the largest annual increases since the second quarter of 2018,” said Howard Archer, advisor chief economic officer of EY. ITEM Club.

“The fourth quarter of 2019 also marked a second successive year-over-year increase in hourly production, after four successive quarters of stable or declining performance, including a 0.5% drop from one year to the other in the second quarter, which had been the largest year-over-year decline in productivity since the second quarter of 2014, “he added.

“A positive result from the latest data is that, although the underlying picture is still poor, a second consecutive quarter of improvement could be a sign that things are starting to move in the right direction. However, it is difficult to judge at this stage, “he added.

“The hope was that the reduction of uncertainty after the decisive result of the December elections and the withdrawal of the EU on January 31 would strengthen the willingness of companies to commit to investing, which would have a positive impact on productivity.

“However, the blow to the economy caused by the coronavirus is likely to weigh on corporate investment in the short term,” he warned.

The FTSE 100 increased 165 points (3.0%) to 5,747.

10:15 am: Happy days are back (?)

Christmas seems to come early for those who believe the markets have bottomed out.

Admittedly, we haven’t even had Easter yet but the FTSE 100 is up 125 points (2.2%) on the day at 5,707, having been below 5,000 as recently as March 23.

“The strong recovery of the FTSE 100 since the trough of March 23 inevitably raises the question of whether the markets approach (or even exceed) the trough after the wild sale which dates back to February 24. Many will have doubts, not least because history suggests that market downturns are usually strewn with rallies that are nothing more than vicious bear market traps, “said Russ Mold, chief investment officer at AJ Bell.

“That said, the sudden nature of the recession means that it is tempting to think that the rebound could be just as brutal. The collapse in prices in February and March, coupled with an increase in the VIX, or “fear index,” to new heights implies that sentiment has already moved from greed to fear. This is generally as good a starting point as any counter-current value search, but there are other signals that investors can use if they are looking for signs that we may be going through the worst, “he said. -he adds.

Today’s rise in Footsie continues to be driven by inventories hit hard by the downturn in economic activity created by the spread of the coronavirus.

Airlines easyJet PLC () and owner of British Airways International Consolidated Airlines () are up 25% to 688.2p and 13% to 256.4p respectively, while terrestrial broadcaster () is 14% higher at 66.84p.

Home builders are encouraged by this morning’s Halifax house price index, which showed that house prices held steady in March before closing.

“Halifax house prices were flat month-over-month in March. This follows four months of increases, including 0.2% month-on-month in February and 0.4% month-on-month in January, which posted solid and continued performance after prices rose 1.8% in monthly change in December (the largest monthly change since February 2007) and 1.2% monthly change in November. Before that, there had been month-to-month declines of 0.1% in October and 0.4% in September, “said Howard Archer, chief economic adviser to the EY ITEM Club.

“It is clear that the coronavirus had an impact on housing market activity in March, reflecting the increasing restrictions on the movement of people as well as the blow to confidence and economic activity. Hometrack reported on March 26 that demand for homes has fallen by 40% in the past week and that “demand should drop further now that the UK is entering a partial foreclosure period of more than 3 weeks”.

“The Halifax observed that the housing market started in March in the same way as in early 2020 with buoyant activity from buyers and sellers, but it ended the month in very different territory due to the coronavirus and of the country’s reaction, ”noted Archer.

Colby Short, who is either a refugee from an American soap opera or the CEO of GetAgent.co.uk, said it seems pretty clear that “monthly price growth stopped in March, despite the pandemic which really didn’t last week. “

“Although it is still up from market conditions degraded by Brexit last year, a sudden freeze in market activity of this proportion will begin to affect price growth, especially over the months.

“The silver lining, at least, is that the sentiment of buyers and sellers of houses remains strong and that the resilience of the UK property market should bring about a rapid recovery once normalcy is finally restored,” he said. added.

9:45 a.m .: FTSE 100 pushed up by home builders and recovery games

Halifax mortgage lender said UK home prices rose 3.0% year-over-year in March, but were unchanged from month to month.

Housing prices rose 2.1% quarter over quarter, the Halifax said.

The UK average selling price of £ 240,384 was little changed from the February record.

“The UK housing market started in March with similar trends to the previous months as the main market indicators showed sustained activity from buyers and sellers,” said Russell Galley, general manager of Halifax .

Then the coronavirus pandemic changed the landscape.

“In practical terms, most market activity has been halted, with the public rightly following the advice to stay at home, and real estate agencies, surveyors and carriers have therefore temporarily closed their doors. With the visits canceled and the movers encouraged to suspend transactions, activity will inevitably fall sharply in the coming months. It should be noted that with less data available, calculating the average price of homes may become more difficult in the short term, “said Galley.

“However, it is still too early to properly assess the potential long-term impacts of the current deadlock on the UK housing market. Although there is currently a great deal of uncertainty, it will largely depend on the time it takes to lift the restrictions, the pressure on the economy in the meantime and the effect this has on consumer sentiment, ” he added. .

Home builders were in high demand this morning, although this is likely more to do with improving sentiment during the likely downtime than reading the housing market in Halifax.

PLC (), up 13% to 132.75p, and PLC (), up 12.3% to 502.6p, were the picks in the residential construction sector and helped propel the FTSE 100 to a gain of 177 points (3.2%) to 5,759.

8:30 am: Feeling supported by growing evidence that the lock works

With news on the coronavirus front (with the exception of one high-level exception) generally improving, stocks got off to a good start this morning.

The FTSE 100 increased 184 points (3.3%) to 5,767.

WATCH: Morning Report: FTSE 100 Rises for Second Day on Optimism Spread of Virus in Europe Slows

“It seems strange to discuss how the global virus trend numbers continue to improve as your country’s PM is transferred to intensive care to fight it; however, that’s where we are right now, ”said Jim Reid.

“The latest percentage growth in the number of new cases and deaths has slowed, especially in recent days, even in the United States and the United Kingdom, which are lagging behind in terms of progress in the Western world thanks to the virus. If the UK numbers stabilize today, it will be a big problem because in the past three weeks, Tuesday’s figures have been significantly higher as the weekend data is properly absorbed, “said Reid.

The most successful among the voters of Footsie read as a call from the companies hardest hit by the coronavirus pandemic and the measures implemented to combat it.

The cruise operator (), up 17% to 835p, was the biggest riser, closely followed by the aerospace engineer (), who added 11% to 279p.

Elsewhere in the hard-hit aerospace sector, low-cost airline easyJet PLC () advanced 9.5% to 604.8p, ​​and aircraft engine designer and maintenance specialist () advanced 9.1 % at 324.8p.

In the tourism sector, the hotel operator InterContentinal Hotels Group PLC () recovered some recent losses, increasing by 8.5% to 3,444p.

Proactive news headlines:

(LON: RGM) has agreed on a new framework for the Mambare nickel joint venture in Papua New Guinea. Regency has agreed to take a revised 41% interest in the joint venture, with an additional reduction if a mining lease on the Mambare project is recommended by the relevant government agency over the next 19 months.

Haydale Graphene Industries PLC (), the global group of advanced materials, has signed an exclusive distribution agreement with Dalian Yibang Technology (DLYB). The agreement is for an initial period of four years and allows DLYB to hold exclusive distribution rights to market Haydale’s electrically conductive graphene-enhanced masterbatch in the Chinese and Taiwanese markets.

() predicts that he can “operate successfully for an extended period of more than a year” by revealing several measures to support his finances during the coronavirus pandemic. The aircraft leasing company said its liquidity position was “satisfactory” with total cash of US $ 129 million, US $ 53.9 million in unencumbered assets and US $ 11.1 million in receivables.

In a separate announcement, Avation said it is continuing to examine strategic options to maximize shareholder value, including a potential sale, previously announced in January. The company confirmed that it was “engaged with several interested parties in the formal sales process” and that several parties remained interested, progress had been delayed “due to the market dislocation resulting from the [coronavirus] pandemic “.

() revealed that it had signed a research agreement with an anonymous “large pharmaceutical company” to develop the exosomal technology of the former. In very simple terms, exosomes are used by cells to communicate and are released as tiny “nanobubbles” in the body to do this. The AIM-listed stem cell specialist has created his own line to deliver a drug payload. Derived from the CTX neural stem cell line of the research group, the exosomes will carry gene silencing sequences developed by the pharmaceutical company.

Bidstack Group PLC () in-game advertising technology should be used by game developer Group Holdings PLC () to serve ads in its games that encourage players to stay home during the coronavirus pandemic. The technology provided by the listed company AIM will be used in the game Dirt Rally 2.0 to show players the advice on road banners when racing on virtual tracks.

() has declared that, as approved by shareholders at its annual general meeting on Friday March 6, it will pay shareholders the 0.4p dividend on April 9. The bank said it has solid cash and available capital and the dividend amount – the total cash amount being £ 992,914.68 – poses no problem for the company.

Benchmark PLC (), the advanced genetics, health and nutrition company in aquaculture, announced that Trond Williksen will join the company as CEO in June. Williksen is highly experienced in the international aquaculture and seafood industries, having held management positions in the industry for more than 20 years, Benchmark said in a statement. Most recently, he was CEO of SalMar ASA, the Norwegian fish farming company and one of the world’s largest producers of farmed salmon.

() has stated that it is focusing on even stronger growth in its “resilient” businesses by releasing a solid set of results for 2019. Transparent revenues for the 12 months ended December 31 increased 16% to £ 144.3 million, which translated into underlying profit (EBITDA) of £ 39.4 million, up 22%. The company’s flagship brands performed well, thanks in particular to its treatment of Kelo-cote scars. The figures also include a first contribution from Nizoral, the medicated shampoo acquired from.

() (TSE: APY) revealed that it achieved record sales as of December 31, 2019. The company saw its royalty revenue reach a record £ 55.7 million, up 21% from compared to the previous record high of £ 46.1 million. returned in 2018. This is due to the good performance of the Kestrel coal mine in Australia. Operating profit also increased 21% to £ 44.8 million, despite continued investment in the business, which saw operating expenses reach £ 7.1 million.

() reported a 91% increase in annual profits and said it was in a “strong position” to maintain operations during the coronavirus pandemic. For the year ended December 31, 2019, the oil drilling and production services company reported underlying earnings (EBITDA) of US $ 193.4 million compared to US $ 101 million in 2018, while revenues jumped 132% to US $ 477.8 million.

() has announced that it will pay an interim dividend next month after announcing “online” transactions in the first quarter of 2020 and “good revenue growth”. In a Tuesday update, the health advisory group said it would pay an interim dividend of 1p on May 22, adding that it intended to declare a special dividend before or at the same time as the next interim dividend, subject to future business performance and prospects. However, to maintain “as much flexibility as possible” during the uncertainty created by the coronavirus pandemic, Cello said he had decided to withdraw his final dividend for the entire year.

(LON: FOG, CVE: FO) has agreed to further exploit its stake in the Beetaloo shale project in Australia in partnership with Origin Energy. The company transfers a 7.5% stake in the project in exchange for $ 150 million in additional costs to cover its larger partner.

() carried out a new shipment of golden gold containing 4,688 ounces of gold to MKS Finance SA. This follows the company’s March 26 announcement that it was considering other logistics options for shipping and selling gold, due to the suspension of air travel.

BlueRock Diamonds PLC () announced that it produced 2,503 carats of diamonds in the first quarter of 2020, an increase of 76%. The company also sold 3,267 carats in the quarter, up 77%. However, operations have been suspended on the orders of the South African government and will remain under surveillance and maintenance until the market recovers enough for them to turn positive each year.

() raises money thanks to a financing agreement with Riverfort Global Opportunities PCC Limited and YA II PN Ltd. The company has limited working capital and, therefore, the board has determined that the financing facility with Riverfort is in the best interests of the company and shareholders.

() (ASX: 88E) told investors that it has demonstrated the presence of mobile hydrocarbons in the Charlie-1 well, a sample confirming an important discovery of condensates in the Torok formation. In a statement, however, Dave Wall, the general manager of the explorer, described it as “a mixed result.” Charlie’s primary target could not be tested because the formation turned out to be “underdeveloped” and therefore was not sampled. The oil emissions previously rated at Charlie are now considered “residual,” the company said.

() detailed several measures to protect the company in the context of the coronavirus pandemic (COVID-19), including cutting costs to reduce cash spending by 40%. The company also decided to suspend operations on the West Rustavi property in order to maintain its gas reserves until a pipeline project is completed later this year. The first production facilities are currently in transit to the field in the Republic of Georgia. In a statement, the group said it had US $ 3.4 million in cash and had roughly $ 470,000 in crude oil inventory.

(), the international provider of technical and creative services to the global video game industry, announced that 65,550 new common shares have been issued to sellers of Cord Worldwide Limited for the unconditional deferred consideration in shares due to the second Cord’s birthday being acquired. In addition, Keywords indicated that 8,194 new common shares were issued to sellers of Laced Music Limited in respect of the unconditional deferred consideration in shares due on the second anniversary of the acquisition of Laced.

(), a multi-brand franchise company, announced that all of its directors and many executives have elected to receive the stock dividend instead of cash for the proposed final dividend for 2019, the details of which have been announced March 30.

6:45 am: Good start expected

The FTSE 100 is expected to start positively on Tuesday, rallying for the second day in a row to growing optimism about the slowdown in the spread of the coronavirus.

The London large cap index is expected to start at 55 more points from the top bettors, after closing more than 166 points, or 3.08%, to 5,582 the previous session.

Asian stocks were higher, dominated by Shanghai Composite and Nikkei 225 in Tokyo, while Wall Street had a strike rally overnight, as the Dow Jones Industrials Average jumped 1,627 points or 7.7% in addition, to close just under 22,678.

The broader S&P 500 rose 7% and the more technologically advanced Nasdaq Composite gained 7.3%, although the number of coronavirus deaths in the United States is expected to worsen in the coming weeks.

However, the number of new cases of coronavirus and the death rates have decreased in Italy, Spain and France. Germany announced the day before that it would loosen its lock later in the month after it had mastered the spread of the virus, but said it planned an “unlimited credit” facility for small businesses.

In the UK, the news overnight was that Prime Minister Boris Johnson had been transferred to intensive care because his coronavirus conditions were reported to have worsened.

Financial markets showed sympathy for a drop in the pound, although the pound rebounded Tuesday morning, up 0.5% to $ 1.2828 US.

In Tuesday’s corporate news, there will certainly be trade claims related to coronaviruses, as well as planned updates, including (), which was one of the few companies to have seen its actions in territory positive driven by market volatility through the coronavirus epidemic.

Today, the online CFD broker will allow investors to know the effect on transactions in the first quarter, after declaring last month that it had experienced a significant increase in client trading activity levels as well as a strong momentum in all financial and operational measures.

There should also be a commercial update for (), which is the first since mid-November.

The emergency repair and heating service provider has been allowed to stay open during business while the coronavirus is locked – although it currently prioritizes emergencies, with technicians wearing protective equipment when they visit customers’ homes.

The coronavirus pandemic and government foreclosure are likely to disrupt the business, even though it is expected to maintain a level of revenue.

Around the markets:

  • Pound, up 0.5% to US $ 1.2288
  • Oil, up one dollar or 3% to US $ 34.03
  • Gold up 1.7% to US $ 1,636.60

Important announcements expected on Tuesday:

Finals: (), ()

Trade declarations: (), (), (), (), PLC ()

Economic announcements: Housing prices in Halifax, JOLTS US job report

City titles:

FT

  • Boris Johnson has moved to intensive care as the situation worsens – Raab will replace PM as a precaution in case he needs a ventilator
  • Benefits of Grant Thornton audit drop 90% – Accounting firm says 150 of 4,500 UK workers agreed to cut wages during coronavirus outbreak
  • Rescue of US small business faces challenges – Federal Reserve reveals new facility to speed up flow of funds to main street
  • UK looks to Italy and China for clues on exit strategy – hopes for gradual lifting of restrictions in summer depend on mix of tests and technology

Time

  • The impact of foreclosure on the health of the poorest is weighed against the damage caused by the coronavirus to decide whether or not to lift the restrictions, the chief medical officer said.
  • The big banks have accused the government agency responsible for overseeing the coronavirus loan program of delays preventing thousands of small businesses from accessing the funds they urgently need.
  • The regulator asked big ad companies to explain what they are doing to support tenants if they refuse to give up rent during the Covid-19 crisis.
  • The “crazy conspiracy theory” that 5G causes coronavirus has been criticized by the government for putting lives at risk because attacks on mobile network infrastructure threaten to block 999 calls.

Telegraph

  • The founder and largest investor in EasyJet has threatened to personally sue the airline’s bosses as a row gets worse over an order for 4.5 billion Airbus aircraft.
  • Lloyds staff said they struggled with unclean offices and very long hours as the banking industry struggled to keep up with growing demand.
  • Uber is directing its drivers to jobs at other companies as the opportunities for millions of workers in the gig economy dry up because of social strife caused by the coronavirus pandemic.

Guardian

  • Mark Barnett, the protégé of investment star Neil Woodford, was sacked as the manager of a £ 400m investment trust for poor performance.
  • Eurozone countries will argue on Tuesday over how to save their economies from the deepening recession that the coronavirus pandemic is unleashing across the continent.
  • China has asked Brazil for an explanation after the far-right government’s education minister linked the coronavirus pandemic to Beijing’s “world domination plan” in a tweet imitating a Chinese accent.



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