The British blue chip index finished up nearly 26 points to 5,812 on the first day of the new week
- FTSE 100 closes
- Oil price tank
- Mixed US indices
5:10 p.m .: FTSE closes higher
The FTSE 100 Index made a late dash to make a positive close, as the collapse in the price of American crude has not deterred investors too much from this side of the pond.
The British blue chip index finished nearly 26 points at 5,812.
American crude oil (West Texas Intermediate) hit a 20-year low today at around $ 10 per barrel due to oversupply, as demand for oil was wiped out by the pandemic.
Conversely, traders appear to be slowly returning to the stocks as hope rises that the financial cogs will start to turn again as lock restrictions are released.
“While there is still a long way to go to reopen economies around the world, the signs of a return to a minimum of normalcy have provided good news for investors,” said analyst Chris Beauchamp market leader at online trader IG.
He noted that strength was growing in pockets of the market, such as banks and financials, while in the United States, the profit season is in full swing.
“…. there are a lot of opportunities for some gloomy forecasts from US companies, but at the moment volatility seems to be concentrated on the upside, “he suggested.
On Wall Street, technology stocks were in favor and the Nasdaq gained nearly 26 points. The Dow Jones and the S&P 500 however lost 178 and nine points respectively.
3:45 pm: all eyes on the price of American crude
The Footsie took the advice not to stray too far from home today, focusing on the prices of American crude.
The FTSE 100 is down 9 points (0.2%) to 5,778.
“Crude oil continues to drop on Monday, with the headline being the nearly 20% overnight collapse in the May contract that will expire soon (CLK0). Most active traders have now focused on the June contract (CLM0) which is the most active today, both in terms of volume traded and interest open, “noted Ole Hansen, head of commodity strategy from Saxo Bank.
“The expiring contract is now mainly in the hands of physical oil traders and the behavior of the contract confirms what we already feared: that the United States will run out of storage in Cushing, Oklahoma, the delivery center for WTI [West Texas Intermediate] crude oil futures are trading in New York, “added Hansen.
The nearly US $ 9 spread between the May contract price and the June contract price “is a clear sign that physical oil traders have no space available,” said Hansen.
– Holger Zschaepitz (@Schuldensuehner) April 20, 2020
2:50 p.m .: return to square one
As with European markets, the collapse in oil prices has rocked the US markets.
The Dow Jones industrial average was down 398 points (1.6%) to 23,844 and the S&P 500 was 32 points (1.1%) lower at 2,842.
That said, early losses are being reduced and this appears to have encouraged the Footsie to recover at par (5,787).
Manufacturers are among the worst performers after the mid-cap operator (), down 4.5% to 390.2p, released an update on trading.
The company said it had successfully concluded negotiations with its six relational banks regarding the request for additional funding of £ 100 million under its existing revolving credit facility.
Elsewhere on the FTSE 250, the casino and bingo operator PLC () was up 5.3% to 175.8p after updating the market on its likely cash consumption during the lockout period.
READ Rank Group Says Liquidity Expected To Be £ 10 Million Per Month When Coronavirus Pandemic Closes
executives benefit from a 20% pay cut in the coronavirus mitigation plan, as site-based activities are significantly affected by closures https://t.co/Zo2PDJZMNx pic.twitter.com/ewG12VoFJe
– Intel EGR (@EGRIntel) April 20, 2020
1:30 p.m .: American indices open significantly lower
American indices should take a dip earlier this week, which would cause London stocks to drop.
Spread betting prices indicate that the Dow Jones industrial average will open around 23,766, down 476 points at the close on Friday. The S&P 500, which closed at 2,875 on Friday, is expected to open 53 points to 2.822.
In London, decay started in the second half of the morning, but there are signs that Footsie has recovered and reduced the drop to 45 points (0.8%) to 5742.
“The price of tanked oil, anxiety about what is almost certain to be a tough data glove – especially Thursday’s jobless / PMI flash claims couple – and Donald Trump’s disturbed behavior are contributing all in the toxic tone of Monday’s exchanges, “said Connor Campbell to.
11:50 a.m .: Builders and miners drag Footsie into the red
The IHS Markit UK Household Finance Index (HFI) has confirmed what most of us already know, that we feel a lot of skinting.
The index measures overall perceptions of the financial well-being of the working age population and in April it fell to 34.9, its lowest level since November 2011, and down from 42.5 in March – the largest monthly decrease in the since the survey began in 2009.
The British household finance index deteriorated sharply in April (⬇️ to 34.9), with workers reporting the first decline in their employment income since October 2017 and much weaker job security. More here: https://t.co/pWWius828J pic.twitter.com/hPPUN1tvNT
– IHS Markit PMI ™ (@IHSMarkitPMI) April 20, 2020
Reading below 50 indicates a deterioration in the sense of well-being of survey respondents.
“About one in three households in the UK reported a decline in employment income in April, by far the highest number since the survey began in 2009,” said Joe Hayes, economist at IHS. Markit.
On the positive side, there was no sign of immediate stress on household balance sheets in April, with debt levels little changed from March, while demand for unsecured loans increased at a rate below its average. in the long term, households plunging into savings.
“Limiting the negative impact on UK household balance sheets will be crucial in the months to come so that when economic activity recovers consumers are not forced to pay off their debts and are instead able to increase spending discretionary to foster a strong recovery, ”suggested Hayes.
It’s bad @MarkitEconomics The household finance index shows that households are becoming more pessimistic about the long-term impact of Brexit https://t.co/aFYo4dlrBv
– Danny Blanchflower (@D_Blanchflower) November 22, 2016
The FTSE 100 lost 41 points (0.7%) to 5,746, with builders and miners prominently among the top losers.
10.45 am: Assault on 5800 level players
Like many of us on a Monday morning, the London stock market is struggling to start.
The FTSE 100 performs a rambling assault at the 5,800 level, similar to a blindfolded person wielding a feather duster. The index rose 3 points (0.1%) to 5,790.
“The index starts to seem fairly limited after having hard-won the lows. Management will start coming as we get a clearer estimate of the economic damage, the speed of recovery, and whether the stimulus efforts prevented a depression similar to the 1930s, “said Neil Wilson of market .com.
To be honest, there has not been a lot of business news flow to drive up the equity rally.
The grocery delivery technology company () edged up 1.7% to 1,596p after it was declared at the annual general meeting, but before being too excited, the only declaration it contained was a warning to shareholders of not to attend the Annual General Meeting (AGM).
(), like Ocado, one of the few Footsie stocks to have progressed over the year so far fell 1.1% to 1,504p after its quarterly production update, which contained a commitment to pay the dividend for 2019 which is expected to be paid on May 29.
10:00 am: The oil trade as in 1999
The price of oil is trying to move the coronavirus away from the center of the scene, as the Footsie has stalled in early deals.
The FTSE 100 index is up 9 points (0.2%) to 5,796.
On the futures markets, Brent crude oil for June delivery traded at US $ 27.03 per barrel, down US $ 1.05 per barrel. Crude West Texas Intermediate (WTI) is trading 21% lower (US $ 3.88) at US $ 14.39 per barrel, trading as it did in 1999 – the last time WTI was as cheap.
“Oil prices have gone down and in the United States they have completely collapsed since the announcement of the OPEC production agreement. For starters, the reduction of 9.7 mln bl / day from a high benchmark was not enough to stem the surplus in May and June 2020, and with growing doubts about compliance, it is getting even more obvious, “said Bjarne Schieldrop, chief commodity analyst at the Nordic Investment Bank, SEB.
“The price of oil is now forcing producers to stop production, and this is happening at high speed and in a haphazard fashion. This creates production damage and some of them will never come back online, “said Schieldrop, as he suggested that the oil market had” a lot of trouble and problems ahead “for several months to come .
“Investors are getting into oil ETFs [exchange traded funds], who typically have front-end WTI contracts, the ones that fall the most. They are likely to burn their fingers in the coming months with a further collapse in spot prices, as well as a very negative roll-yield, which will empty money out of their pockets, “he added.
WTI is in a “super contango” state, according to Russ Mold, director of investments at AJ Bell, who explains that it refers to the gap between the price paid for oil today and the delivery contracts in the months to come; contango has been at its highest level for over a decade.
“It encourages traders to store oil and resist higher prices. Today’s barrels of oil are being sold at depressed prices because they are struggling to find buyers and amid fears, there may not be the capacity to house them.
With more figures, the oil contango is now at $ 9 between the first future in “notice period” and the first regular future. “If” you have storage space, you can make 60% returns in 1 m. So buy physical arb funds or container co-charterers. Stay away from etfs oils
– Bala Vamsi Tatavarthy (@VamsiTatavarthy) April 20, 2020
“The situation is more acute in the United States given the dependence on the key infrastructure center in Cushing, Oklahoma. This helps explain the widening gap between WTI and Brent, the price used outside of North America.
“A concern for the market will be the ripple effect on US banks lending to a national oil industry which will be strained under the pressure of the lowest prices,” he added.
Meanwhile, in the foreign exchange markets, the British pound is down four-tenths of a cent against the U.S. dollar, providing some downwind for large dollar workers, such as the tool rental company PLC ( ) – up 3.0% to 1,820.5p – and the giant consumer of goods (), up 2.9% to 4,234p.
8:45 a.m .: Dull Monday progress
The FTSE 100 started the proceedings muted on Monday, defying early expectations from the blue chip index to make further solid gains.
The British benchmark started a procedure down 18 points to 5,769.17.
WATCH: Morning Report: Positive start of the FTSE 100 on locking hopes despite the fall in oil prices
A depressant came in the form of American crude prices, which fell almost 20% at some point below 15 dollars a barrel – a level last seen in the late 1990s.
Pressure was exerted on the WTI by the latest trade figures from Japan, frankly distressing, considered to foreshadow a marked slowdown in world trade.
In this context, OPEC’s decision to cut production last week was deemed too late by experts. Indeed, supertankers would now be awaiting the storage of excess supply.
In this context, the main oil stocks in the United Kingdom, BP (LON: BP.) And (), however, resisted. The former declined slightly, the latter gained a head start in the early deals.
Attempt is hoping that the global coronavirus pandemic lockdown could end, prompting the purchase of travel documents, easyJet () leading the Footsie elevators with a gain of 2.25%.
The decline was (), which fell 3.2% before it updated the market later this week. () and () fell 2.9% and 2.5% respectively, following a report that stopping the coronavirus in the housing market could hamper the sale of more than half a million homes.
Proactive news headlines:
() and Cytiva have agreed to develop the Genedrive 96 SARS-CoV-2 assay for use on laboratory polymerase chain reaction (PCR) instruments that will be used to provide a test for coronavirus (COVID- 19). The AIM-registered molecular diagnostician said the project with Cytiva, the company formerly known as GE Healthcare Life Sciences, is one of two test programs he is developing in accordance with his test announcement. of coronavirus at the end of last month.
() told investors that his Bleepa system has been deployed in the Pennine Acute Hospitals (PAH) NHS Trust to help his coronavirus (COVID-19) respond. The key patient management tool, which includes communicating secure medical images, is used by front-line clinical staff, the company said. This means that chest x-rays and CT scans are more easily accessible, from a distance and for those on the front line.
PLC () said that four drill targets have been selected for drilling the Molopo Farms Complex project, which it jointly owns with Kalahari Key Minerals. The decision to drill followed a helicopter-borne electromagnetic survey, ground geophysics and a subsequent document review. Initial drilling is expected to focus on the Chipo target group in the northern area of the Molopo Farms project.
() was appointed to manage the first ePremier League Invitational tournament. The knockout tournament, slated to take place this week, will see Premier League footballers representing their clubs in the FIFA 20 video game, with a live finale to be broadcast on Sky Sports on April 25. Players in the television series “The eCricket Challenge” the tournament will include Trent Alexander-Arnold from Liverpool, Todd Cantwell from Norwich City, Ryan Fredericks from West Ham United, Raheem Sterling from Manchester City and Wilfried Zaha from Crystal Palace.
() said he now has a “cash trail” in August after receiving another US $ 417,000 loan from the US government as part of the coronavirus support program. The medical device group, which has a large U.S. operation with a base in San Antonio, Texas, has now received more than $ 1 million in aid from the corporate rescue package.
() highlighted a new report from Grand View Research estimating global medical sales of portable oxygen concentrators and cylinders has been published, noting that the expected growth could have a positive impact on its holding company Belluscura. UK intellectual property investment group focused on creating market value from university technology, said Belluscura’s first product, the portable oxygen concentrator X-PLO2RTM, is currently awaiting approval from the Food and Drug Administration (FDA) of the United States, which is expected in the first half. of 2020.
PLC () saw its financial results for 2019 show strong growth and, while recognizing the challenges presented by the coronavirus pandemic, the building materials company “buy-n-build” declared that it envisaged l optimistic future. In its 2019 earnings report, the group said its underlying revenue increased 70% to £ 70.4 million in the twelve months ended December 31 from 41.2 million pounds sterling in 2018. At the same time, the group’s operating profit (EBITDA) improved to 14.5 pounds sterling. mln from 9.8 mln and the underlying pre-tax profit amounted to 8.4 mln compared to 5.5 mln the previous year. Net profit was reported at £ 7.9 million, compared to a loss of £ 6.1 million in 2018.
() Said activity in its transport services and solutions continued through the coronavirus crisis (COVID-19) with strong demand in most sectors, although there was a slowdown in certain regions. In a statement, the freight group said quarterly transactions at the end of March were broadly in line with management expectations, with comparable revenues up slightly from the previous year, although it has taken action to protect the company during the pandemic. .
[email protected] Capital PLC () declares that it has signed an agreement with the financial consultancy firm StormHarbour Securities for the issue, distribution and placement of a series of asset-backed securities guaranteed against stocks purchased directly by the special-purpose vehicles of the society. The inventory monetization company said it is in the process of finalizing details of a securitization program which over the next 12 months is expected to cover its entire current portfolio of initiated stock contracts.
() said he was in a “solid position” to manage the “short-term headwinds” of the coronavirus pandemic (COVID-19) as it weighed in on a strong first-half update, which showed momentum continuing into the second six months of the fiscal year. The company has developed AI-led software that interprets medical images from clinical trials and, as managing director, Giulio Cerroni noted in the statement, this “remote access business model has allowed us to minimize disruptions to our service levels and continue to provide image analysis services to our existing portfolio of clinical trial projects. ” Revenues for the six months ended March 31 increased by a third to £ 4.6 million, IXICO said in the pre-closing trading update, while the order backlog stood at 15 £ 3 million at the end of the period.
() said he received the clinical study report (CSR) for his phase 3 study (FM57) in erectile dysfunction. As a result, the company added that it has now requested a new pre-submission meeting with the United States Food and Drug Administration (FDA) to follow the initial presentation of existing clinical evidence from the FM57 study during an FDA pre-submission meeting. February 24, 2020.
() said it raised £ 1 million through a placement and share subscription supported by its chief executive, Tom Ilube. The AIM-listed company said it had finalized the placement of 363,617 shares at a price of 230p each, a 34% discount from its closing price last Friday, raising £ 836,319. In the meantime, he added, Ilube intends to subscribe 73,914 shares on the same terms, reaching a total of £ 1 million.
Shanta Gold Ltd () reported producing 20,167 ounces of gold from its Tanzanian operations in the first quarter of 2020, compared to 19,550 ounces produced in the fourth quarter of 2019. In its first quarter production update, Shanta also said that its profits ranged from $ 15 million, and the cash and available cash was increased to $ 15.7 million. The company mined its gold at an all-in sustaining cost of US $ 833 per ounce, against a price of gold that hovered over multi-year highs during the period. He plans to produce between 80,000 and 85,000 ounces of gold at aggregate costs of between US $ 830 and US $ 880 per ounce in 2020.
Bacanora Lithium PLC (), a lithium exploration and development company, has announced the appointment of Graeme Purdy, Managing Director of PLC () as an independent non-executive director of the company with immediate effect. In a statement, Bacanora noted that Purdy is a practical manager with over 25 years of global experience in the resource and battery industries. Under Purdy’s leadership, it has become one of the few independent global companies specializing in the design and manufacture of solid-state lithium-ion batteries, she added.
() said he is reviewing the business model for production scenarios in Gubong and Kochang in South Korea. In a statement, the company said the project’s financial data was originally determined based on a gold price of $ 1,200 per ounce, but with the current gold price in the $ 1,600 range, initial models will be improved considerably. Although they are not included in the cash flow projections, he added, the company has many grants that will have a significant impact on investment costs.
() gave investors more details on the Charlie-1 well project in Alaska, which had previously failed in its primary target but encountered several secondary hydrocarbon targets. The latest findings, taken from the preliminary petrophysical interpretation, indicate that the compensation of hydrocarbons in the Torok and Seabee formations, with more than 280 feet of net compensation, is interpreted in the Seabee Torok and Kuparuk formations, which compares favorably to expectations before drilling, the company said.
() said it had appointed Noble Capital Markets to advise the group on the strategic review it is undertaking. Noble, an investment bank, will advise Midatech in finding partners, including parties interested in acquiring the company. Midatech said it was currently not in discussions with potential suitors and had not yet been approached by interested parties to acquire some or all of the company’s clinical assets.
CentralNic Group PLC (), a global Internet platform company that derives revenue from subscription sales of Internet domain names and Internet services, has announced that the publication of the group’s audited results for the year ended December 31 2019 and its Q1 2020 business update will take place on Monday, April 27, 2020. He said there will be a webinar / conference call for equity analysts at 9:30 am in the UK on earnings day, hosted by CEO Ben Crawford and CFO Michael Riedl.
6:30 am: Footsie called above
The FTSE 100 seems poised to ignore the rather mixed picture of Asia to firmly open the trading week.
Betting on the UK has now passed the peak of the pandemic and with the prospect of a gradual end to the foreclosure, traders are expected to push the British blue chip index 60 points down to 5,846.96.
“A number of European countries have relaxed some of their lockout restrictions,” said David Madden of CMC Markets. “Italy, Spain and Austria have seen the reopening of some companies.
“In the grand scheme of things, the level of progress is minimal, but the message it sends is very positive. “
A potential depressant, however, could take the form of oil companies after US crude oil levels hit a century ago when it crashed to $ 15 a barrel. Reaching a 21-year low, the WTI collapsed 20% to $ 14.64 amid concerns over an increased glut of black stuff.
The catalyst for the latest crash was dismal data from Japan’s exports, which showed the huge economic impact of the coronavirus pandemic on the world’s third largest economy.
The price setters quickly extrapolated the 12% drop in trade to provide a grim assessment of international trade after the global closure.
Analysts in the US this week are expecting yet another series of grim warnings from US companies as the profit season continues.
Closer to home, we will receive an update this week from the owner of Primark, Associated British Foods (), as well as progress reports from the London Stock Exchange () and the builder ().
Important announcements expected on Monday:
Trading update: ()
Finals: PLC group ()
Around the markets:
- Book worth US $ 1.2743 (-0.21%)
- Gold on US $ 1.40 per ounce at US $ 1,697.40
- Crude Brent 48 cents per barrel at US $ 27.60
- Government launches £ 1.25 billion plan to help struggling British start-ups
- Uber to relaunch freight delivery service in search of new revenue streams
- US governors clash with Trump on virus tests
- City leaders demand fair share of equity fundraisers
- Exporters “excluded” from government emergency loans
- Jaguar stalled as sales plummet
- Fears over layoffs to come with UK leave scheme
- Government bailout proves too difficult to open
- Matalan and Poundstretcher under pressure from their owners
- Nearly seven million jobs threatened if foreclosure lasts several months
- Supertankers recruited to store a glut of crude oil