FTSE 100 slowly forfeits gains despite tumultuous start to US stocks

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The S&P was up 53 points (1.8%) to 3,008 in the first transactions while the Dow Jones industrial average was up 578 points (2.4%) to 25,043.

  • FTSE 100 jumps 56 points
  • Pound jumps against the US dollar
  • US markets open much higher

3:00 p.m .: American indices cross psychologically significant levels

Believers in the power of round numbers will be encouraged by the rise of the S&P 500 above 3,000 and the Dow above 25,000.

The S&P was up 53 points (1.8%) to 3,008 in the first transactions while the Dow Jones industrial average was up 578 points (2.4%) to 25,043.

In fact, the Footsie has surpassed 6,000 in London. It was up 56 points (0.9%) to 6,049 and fell slightly from the day’s high of 6,124 at 8:24 a.m.

1:45 p.m .: US stocks join the holiday mood

The enthusiasm for large-cap stocks was somewhat tempered by the resurgence of the pound sterling in the foreign exchange markets.

The pound rose one and a half cents against the U.S. dollar following the announcement that many stores in the UK could reopen in mid-June, and although a strong exchange rate is normally a drop for Blue chip stocks, many of which are big income, the FTSE 100 is still up 61 points (1.0%) to 6,054.

“The US equity markets are preparing for a good start to the week as further easing and a promising new vaccine boosted morale after the holiday weekend,” said OANDA’s Craig Erlam.

“Investors returned to their offices in a good mood after the long sunny weekend of public holidays (here in the UK, anyway) with news of human trials of a possible Novavax COVID vaccine. While there is no guarantee that it will be successful, it is one of the many companies making progress on the vaccine front, which is really encouraging, “he added.

According to spread betting sites, the Dow Jones industry average is expected to open to around 25,040, up 575 points, and the S&P 500 to around 3,017, up 62 points.

Regarding the reopening of stores, Howard Archer, chief economic adviser to the EY ITEM club, said that retailers felt the full impact of the foreclosure in April.

Commenting on the CBI’s Distributive Sales survey, Archer noted that retail sales volumes fell 18.1% yoy and 22.6% yoy in April.

“This included, among other things, the closure of non-essential retailers,” he noted. “Not surprisingly, a BRC / ShopperTrak survey found that patronage of buyers dropped 84.7% year-over-year in April,” he added.

“Things should improve for retailers given the expected gradual opening of the retail sector in June. However, although there may be some degree of pent-up demand, it may be doubtful that there will be an immediate recovery in consumer spending, “said Archer.

“The EY ITEM Club suspects that consumer spending will contract by around 15% quarter on quarter in the second quarter, which will be the main factor in the expected contraction in GDP by around 15% quarter to quarter, “said Archer.

12:20 p.m .: Home builders supported by increased confidence in the sector

London stocks remain buoyant after British Prime Minister Boris Johnson has given the green light to reopen most stores from June 15.

The FTSE 100 index increased 71 points (1.2%) to 6,064, with a number of hard-hit sectors rebounding, including home builders.

GetAgent.co.uk has released the latest update to their real estate and homeowners confidence surveys and real-time market health dashboard, revealing that the overall market health index has increased to 4 , 3% in May against 3.4% in April.

GetAgent said 22% of home sellers remain extremely concerned about the impact of COVID-19 on their sale, but that figure was down from 33% in April.

Only 16% of buyers say they will now refrain from offering a property under current market conditions, up from 43% in April.

With the housing market now again open to business, 15% of real estate agents are still concerned about the impact of the pandemic on the entire industry, which represents an improvement in sentiment compared to April, when the figure was 28%.

96% of the agents questioned expect to be able to increase their sales now that the market is again active, compared to 75% in April.

PLC (), up 6.8% to 528.4p, was the sector’s choice but the peers PLC () and PLC () are not far behind.

Travel companions (), the property listing website operstor, and Lloydss Banking Group PLC (), the mortgage lender, were also sought; both rose 6.6% – the former to 566.2p and the latter to 29.965p.

11:30 am: Another difficult month for traders but not as bad as we feared

A little steam has disappeared from Footsie’s lead, but the clue is still pretty.

A number of blue chip stocks that were massively sold in the early stages of the foreclosure are back in favor this morning after the UK has taken more hesitant steps to ease the foreclosure, and as a result, FTSE 100 increased 95 points (1.6%) to 6,088.

The relaxation of lockdown restrictions cannot happen soon enough for the retail sector, judging by the latest data. The CBI’s survey of 87 retailers found that orders from suppliers fell at an almost record pace in May. The level of stocks compared to expected sales reached its highest level since October 2019, before the Brexit deadline this month, said the CBI.

The balance of the survey improved slightly from -55% in April to -50% in May, the improvement being mainly due to a return to growth in the grocery sector. The consensus predicted a deterioration to -65%.

The reported sales balance reflects the proportion of retailers reporting that sales are higher than a year ago, less those reporting that sales are lower.

Orders placed with suppliers fell faster than in April (-56% compared to -48%) while growth in Internet sales volumes accelerated (+ 27% against 8%) and should remain similar in June (+ 27%).

“The retail sector is nearing the end of the crisis, and many companies are opposing it. Government support measures are making a real difference, with more stores reporting that jobs have been cut rather than lost. The leave system will have to adapt as more companies open in the coming months, “said Rain Newton-Smith, chief economist, IWC.

“As we gradually reopen the economy, retailers may still need more government support if demand weakens. Ensuring workplace safety remains the top priority, as more and more companies are looking to bring their staff back to work. Many challenges remain in managing supply chains and costs in a difficult environment, “added Newton-Smith.

Samuel Tombs, UK chief economist at Pantheon Macroeconomics, said that the slight improvement in the balance “implies that a small minority of retailers have already seen demand return to pre-virus levels”.

“But the improvement appears to have been concentrated in the grocery sector, where the reported sales balance jumped to +16 from -27. Non-food retailers have not seen a recovery in demand, although most have an online presence. A large-scale recovery will have to wait until June 15, when all non-essential stores will be allowed to reopen. Even then, consumer spending in stores is likely to be well below pre-virus levels, given the lingering risk of contracting Covid-19 and the recent spike in unemployment, which has affected overall household income and will those who work less willing to buy. discretionary property, “said Tombs.

“The level of -41 in the sales balance expected in May, and the collapse of the balance of quarterly investment intentions in Q2 to its lowest level ever recorded, show that retailers are preparing for a very slow recovery”, a he added.

9.50 am: Investors benefit from a “99”

After all the Cummings and the lack of goals over the long weekend, the Footsie rose on Tuesday.

Many of us enjoy a “99” ice cream weekend, but this morning investors are enjoying a different type of 99 – a gain of 99 points (1.6%) on the FTSE 100 at 6,092.

“Yesterday’s announcement by Boris Johnson regarding the reopening of non-essential stores in the UK from June 15 helped and clearly made investors think that we are close to normal,” said Joe Healey , investment research analyst at The Sharing Center.

Airlines outperformed, with owner of British Airways International Consolidated Airlines () and easyJet PLC () up 16% to 221.9p and 14% to 636.4p respectively, as investors contemplate the prospect to sneak in for a delayed summer vacation after all.

News that German flag carrier Lufthansa may be on the verge of a 9 billion euro bailout from the German government has also boosted airline morale.

The cruise operator (), up 11% to 1019.5p, is also gaining popularity, as is the international hotel operator Group PLC (), up 12% to 4099p but it is not going not the same for (), owner of the Premier Inn brand; its shares are in the Footsie underground, down 3.9% to 2,498p.

Just Eat Takeaway.com () food delivery outfit, down 1.8% to 8710p, also appears to be on edge as it looks like the sauce train is about to hit the pads with the prospect of the reopening of restaurants for seated meals.

8:45 a.m .: earnings after holidays

The FTSE 100 posted a three-digit gain at the start of the shortened trading week, catching up with Europe after Monday’s British public holiday, with cautious optimism about the gradual easing of coronavirus locking restrictions.

The London benchmark rose 113 points to 6,106.32 at the start of the session.

Prime Minister Boris Johnson said on Monday that all non-essential retailers could reopen in England from June 15, with markets and car showrooms going out of business on June 1.

While JD Sport (LON: JDS) and Next () – up 8.2% and 6.6% respectively – were among the first winners, travel stocks also rose at the start like those of Lazarus.

On Footsie, British Airways owner IAG () increased 17%, while () increased 14.5%.

At the second level, the tour operator TUI () jumped 37%, with investors hoping for a return to normality which could also include a return to holidays abroad.

Proactive headlines

() said it has signed a drilling contract for its highly anticipated Perseverance-1 exploration well, which is expected to start potentially in the fourth quarter. The contract sets a “closed window” for drilling operations between December 15, 2020 and February 1, 2021, in accordance with the project’s license obligations, which have been extended in the event of force majeure. Significantly, the contract provides for an estimated cost reduction of approximately 15% from previously estimated levels, reflecting changes in the global operating environment.

() said it has launched a new digital media group within the company as well as new e-commerce and rewards programs to diversify its sources of income. The esports company has said that Gfinity Digital Media (GDM) will focus on three sources of revenue; website buyouts and programmatic advertising delivered in partnership with Venatus and Bidstack Group PLC () advertising platforms, a non-exclusive relationship with the global affiliate marketing network AWIN and the Trackonomics analytics platform to generate e-commerce revenues; and content creation and community building product for partners, most recently an agreement with YaLLa Esports in the Middle East region.

() confirmed the launch of the home clinical trial of his inhaled beta-1a interferon in people with coronavirus (COVID-19). As an extension of the original SG016 hospital study, an additional 120 people will receive Synairgen’s drug SNG001 at home. The idea is to treat people affected earlier in the disease – within three days of the onset of symptoms.

(LON: WSG) revealed that he had been hired to supply a range of fever screening and safety equipment to a global investment manager. The deployment covers the global offices of the fund manager, added the security and technology group, and is part of a return to work program following the coronavirus epidemic (COVID-19). Worth around US $ 665,000, the contract covers the supply of a range of fever screening systems and disinfection stations to 85 offices in 37 countries and is expected to be completed in the coming weeks, said Westminster in a press release.

() said its operational performance in 2020 has “performed relatively well” despite the disruption caused by the coronavirus pandemic (COVID-19). In a trade update before his annual general meeting on Tuesday, the cargo management specialist said he had “traded resiliently” during the year to date, and although the levels of activity was “slightly lower”, good demand in certain sectors having been offset by the weakness of for others, the impact on the company’s margins was “less affected” due to cost reduction measures taken at the start of the pandemic. The company said it was too early to provide final guidance for the entire year, but said the company “worked well in extraordinary circumstances”.

() said the focus on its direct consumer activities is paying off after the coronavirus lockout hit brick and mortar sales in its health and beauty lines. Online sales accounted for 60% of the company’s total revenue in the past year. The group said the doubling of the business had enabled the company to operate “resiliently in a difficult market and significantly compensate for the weakness of the store environment.” InnovaDerma has said it expects annual sales to be at least in line with last year’s £ 12.9 million figure.

() noted that its holding company Exscientia Limited, a world leader in AI-based drug discovery, has raised $ 60 million through a Series C funding round. The property marketer Intellectual said the new capital will be used to expand Exscientia’s existing portfolio and pipeline and to accelerate international expansion, including in the United States.

() revealed that he had obtained an Italian patent for his invention of planar thermal circuit. The patent covers the use of the G + graphene circuit applied to fabrics of all types. The fabric, once processed, is capable of absorbing body heat and moving it from the hottest point to the coldest point on the circuit, providing a significantly increased sense of comfort to the user. The developer of graphene nanoplate products said the patent covers the main features of the circuit that make it efficient.

FastForward Innovations Ltd () said its portfolio company will manufacture a product for a clinical trial on the coronavirus (COVID-19) as part of a consortium led by the University of Valencia. EMMAC, in which FastForward holds a 2.3% stake, said the track will use the T12 molecule to prevent the disease from progressing to adult respiratory distress syndrome (ARDS), which is believed to be the main cause of death in patients with coronavirus. In a separate announcement, FastForward said one of its other holding companies, Portage Biotech Inc (CSE: PBT.U) (OTCMKTS: PTGEF) will make a non-negotiated private placement of post-consolidation shares to raise up ” to US $ 10 million at a price of US $ 10 per share, a 10% discount on the 20-day weighted moving average of the common share price on the CSE. Portage said the product will be used to further develop its immuno-oncology portfolio toward clinical testing, as well as to form one to two new companies and allow the company to continue listing its shares further on a ” senior scholarship ”.

Bluebird Merchant Ventures PLC (), the Korean-focused gold group, said due diligence had been completed by its potential lender and that the financial conditions should be confirmed shortly. In March, the AIM-listed junior entered into a legally binding agreement with the South Korean lender on a loan of US $ 5 million to be repaid on future gold production. If successful, funding should be received in late July, although Bluebird added that even if it is optimistic, there is still no guarantee that it will receive funding. If so, Bluebird expects initial mining to begin in six months and gold production three months later.

() took stock of the Baita Plai polymetallic mine in Romania, where progress is being made as deliveries of new equipment continue. The company, in a statement, noted that the second shipment of equipment arrived at the mine this weekend. It included 42 cubic meter underground cars and rail cutting and bending equipment. Vast said the latest arrival means that it now has all the essential equipment to reach the mine’s first production.

() emphasizes literature search as travel restrictions apply in Botswana during the coronavirus epidemic (COVID-19). The company, which is targeting the discovery of mineral deposits in Botswana, said the country had “admirably” treated COVID-19 and was already relaxing travel restrictions. Despite this, the company’s plans to conduct field exploration work have been affected, but its geologists will review data collected in 2019 from drilling and surveying as well as third-party data to identify future targets for drilling in the Kalahari suture area (KSZ).

(), in a brief stock market statement, told investors that he has now started sending his “bidders’ statement” to XCD Energy shareholders as the process of buying ASX-listed Alaska par continues to progress.

() announced the appointment of Hans Peter Hasler as non-executive chairman of the company as of its annual general meeting (AGM) to be held on June 18, 2020. The pharmaceutical company, at the commercial stage, will focus on the fight against iron deficiency with its flagship product Feraccru / Accrufer (ferric maltol) announced on May 21 that its current president, James Karis, would not run again and would step down at the AGM. Haslar has previous management experience, including as a chef

() said he was seeing increased interest in his post-coronavirus (COVID-19) antimicrobial technologies and products d2p. The biodegradable plastic specialist revealed in his 2019 annual results release that he had received new orders in May of this year for gloves treated with d2p totaling more than £ 500,000. As previously announced, the group saw its total revenue increase by 53% in the first quarter of 2020 to 2.45 million pounds sterling, against 1.60 million pounds sterling the previous year.

(), the Irish resource development company, provided an update on the second tranche of the proposed investment in the group by SpotOn Energy Limited. As announced on April 6, 2020, SpotOn Energy has invested £ 0.3 million in Providence as part of a recent $ 3.3 million fundraiser and has committed to invest £ 0.2 million additional within six weeks of this announcement. However, the company said in a statement on Friday that SpotOn Energy had experienced delays in reaching the necessary agreements with its consortium due to current work and travel restrictions and informed Providence that it would be necessary to delay the second tranche of his investment. about a week. The company added that it will provide a market update upon receipt of the funds.

(), the Moroccan company specializing in the development of potash, announced that Align Research Limited had completed a detailed research note on the initial actions of the company. To download the full note, please visit the following link: http://www.alignresearch.co.uk/cpt-company/emmerson/

6:50 am; Footsie ready to catch up

The FTSE 100 should start the shortened week on the front foot as it is catching up on European stocks and British retailers have the green light to reopen.

The benchmark London index was poised to climb 47 points by bettors on the IG platform, after finishing last week at 5,993.

Asian markets were leading the way with a positive start on Tuesday, the British and American stock markets will reopen after long weekend breaks for both.

In Tokyo, the Nikkei 225 was up 2.5%, while in Hong Kong, the Hang Seng gained 1.9% and more on the Chinese mainland, the Shanghai Composite was up 0.65%.

“As the financial markets want these days, even the thinnest of positive news on the coronavirus front (COVID-19) triggers a bullish immune response and another wave of advanced virus trade,” said Jeffrey Halley , market analyst at Oanda. .

“This has happened on several fronts today. The American Memorial Weekend saw the United States in force take advantage of its freedoms after the foreclosure. Japan, in addition to announcing more than billions of dollars in stimulus payments, has signaled the end of permanent blockages in its largest cities. “

There was new hope on the coronavirus vaccine front, with US biotechnology Novavax announcing the start of human trials.

As the European government intervened to save airlines and car manufacturers, including Lufthansa and Renault, it was reported that a number of large British companies were hoping for a rescue deal called Project Birch.

In other news, British Prime Minister Boris Johnson gave the green light to reopen most stores from June 15, in the hope that a wave of consumer spending will help the economy rebound.

Around the markets

  • Pound 0.25% to US $ 1.2219
  • Flat oil at US $ 32.50
  • Gold dish at US $ 1,732.80

Important announcements expected on Tuesday:

Trading announcements: PLC ()

Finals: PLC group ()

AGM: Aviva PLC ()

City titles:

Financial times

  • board rethinks redesign and looks for even bigger cuts – more drastic action sought after 3 months after plan to cut 35,000 jobs and $ 4.5 billion in costs
  • Brussels turns to new taxes to pay off pandemic recovery debt
  • SpaceX to send astronauts into orbit – successful test flight by Elon Musk’s company on Wednesday will open up space for the commercial sector

The temperature

  • Prime Minister Boris Johnson said almost all non-essential retailers could open if they followed the June 15 social distancing guidelines
  • Private Equity Firms Fear Calculation Day – Indebted Companies Deprived of Government Loans for Companies Affected by Covid-19
  • The city’s biggest investors made nearly £ 1 billion in profits by supporting British companies that rushed to consolidate their finances due to the coronavirus epidemic.

Telegraph

  • Government to acquire stakes in key industries as part of Birch plans – Britain could follow French and German route of major public investment in private companies
  • Auto Company Bailouts Could Let Government Control Parts Of British Industry – Government May Move From Granting Loans To Buying Stakes In Companies
  • Biggest recruiter boss warns of ‘job loss tsunami’ at end of leave – James Reed fears job market is headed for ‘calculation day’ at end of support

Guardian

  • The World Health Organization has warned of an “immediate second peak” in cases where restrictions were lifted too soon
  • According to the Unite union, British Airways plans to lay off the vast majority of its workforce and re-hire them on reduced and worse terms.



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