FTSE 100 higher as the Fed prepares to issue its first economic forecast in six months; Carnival continues to grow higher


  • FTSE 100 adds 41 points
  • The latest outcome of the FOMC meeting
  • Banks find support

8:45 am: modest rally

As the recent impressive rally stalled on Wall Street, the FTSE 100 came to life early in the session Wednesday morning in the wake of what is becoming

“Opposite week” for transatlantic stock markets.

The British blue chip index opened 41 points to 6,377.13.

But beware, positivity on this side of the pond could quickly decline as the US Federal Reserve makes its first economic forecast since December later today.

This quote from the Financial Times sums up the plight of the Fed chairman and his team of tea leaf readers: “In some of his last public remarks in late May, [Jerome] Powell explained the old joke of late economist John Kenneth Galbraith that economic forecasts existed to make astrology respectable. ”

Cruise magician Carnival () ‘s mystery tour continued on Wednesday with an additional 4% gain. If you had bought a month ago, you would have a profit of 60%.

Not bad. However, buyers at the start of the year, when the stock was £ 37, continue to suffer losses of around 58%.

Bank stocks were also in demand, with Lloyds () leading the way with a 4% gain. In Germany, an activist investor threatens to make things happen at Commerzbank.

Proactive news headlines:

e-therapeutics PLC (LON: ETX.L) is partnering with Belgian life sciences giant Galapagos to discover a new way to treat idiopathic pulmonary fibrosis, a serious lung disease with poor prognosis. The work, which will draw on ETX’s expertise in network biology and phenotypic screening in silico, will focus on approaches to modulate a specific mechanism involved in IPF and other fibrotic conditions. Financial details have not been provided; however, the British company said it will receive “initial and short-term payments [its] cash position ”. He is also eligible for preclinical and clinical development and commercial milestone payments.

() Executive Chairman Dr. Miroslav Reljanović told shareholders before Wednesday’s annual general meeting that the company, which focuses on providing specialized services to the pharmaceutical industry, “had a good first quarter, with solid overall revenue growth. ” In a statement released before the AGM, Reljanović concluded: “For the time being, the company is confident that the results will be in line with current market expectations for fiscal year 2020”.

() has entered into a third financing agreement with its lender under a master facility which will allow it to borrow an additional A $ 1.17 million. The natural resources investor said he has entered into a stock loan agreement under which the lender will be able to borrow up to 289,109 shares of Australian explorer Sandfire Resources (), while the company also has the right to sell 289,109 Sandfire shares to the lender in three. years at 80% of the reference price of AU $ 5.05. The lender is also entitled to purchase 289,109 Sandfire shares in three years at a 145% premium over the reference price. Metal Tiger has said it will use the proceeds of the financing to finance potential investment opportunities, adding that it may also agree with the lender to increase the size of the financing agreement at a later date.

() told investors that its projects in Cameroon, South Africa and Namibia remain attractive even in a context of volatile crude oil market. After releasing its 2019 annual results, the company noted that Brent crude oil is now trading at around US $ 40 per barrel, that longer-term prices (the future of December 2025) are above US $ 52 per barrel. and that there is potential for further tightening in the coming years due to the reduction in industry-wide capital investment. Even if prices drop to US $ 45 per barrel, the company believes that its projects are attractive.

() announced that its annual general meeting will be held at Shafts Farm, West Meon, Hampshire GU32 1LU on June 26, 2020, at 9:00 a.m. In light of the current situation of the coronavirus (COVID-19) and the legal and other requirements of the government authorities, it is necessary that the shareholders do not appear in person but rather appoint the chairman of the meeting as their proxy (by electronically or by post) with their voting instructions. If a shareholder has a question for the board of directors regarding the business to be conducted at the AGM, this must be submitted to the president via [email protected].

(), the London-listed company has focused on providing shareholders with attractive, risk-correlated, uncorrelated returns from a diversified portfolio of pan-Asian investments, said it would hold its 2019 AGM delayed and AGA 2020 simultaneously August 14, 2020. The company announced on November 14, 2019 that due to civil unrest in Hong Kong in late 2019, it was postponing the AGM 2019 again. Since then, the coronavirus pandemic (COVID-19) has posed other problems when calling such a meeting. Given the extenuating circumstances at the end of 2019 and until the first quarter of 2020, the group said that the advice of its board of directors was that seeking to complete business for 2019 immediately before the 2020 meeting was the most effective route at the moment.

Silence Therapeutics PLC (LON: SLN), a leader in the discovery, delivery and development of new therapeutic RNAs for the treatment of serious diseases with unmet medical needs, announced at its annual general meeting on Tuesday the resolutions set out in the notice of meeting were duly voted on by poll.

(), the Moroccan potash development company, announced that Align Research has completed a research note on the company. The note covers the world class potential for its flagship Khemisset potash project by focusing on the recently published feasibility study, confirming its low capital cost potential, developing high margin mines and using comparable analysis to provide a context regarding the potential of the project. The full note can be downgraded via the following link: http://www.alignresearch.co.uk/cpt-company/emmerson/

Limited () has informed that Parish Group, a wholly-owned subsidiary of APQ Global, has replaced Aspida as secretary and director of the investment group company with immediate effect.

genedrive PLC (), the patient-friendly molecular diagnostic company, has announced that its managing director, David Budd, will make a presentation at an investor webinar co-hosted by Turner Pope Investments (TPI) Ltd and Vox Markets on Friday 12 June. 2020, 2 p.m.

6:35 am: Footsie called above

The FTSE 100 is expected to start slightly higher on Wednesday as traders appear ready to keep their powder dry before the outcome of the Federal Reserve meeting later.

Spread-better IG expects the UK benchmark to open around 11 points higher after closing Tuesday’s session down 137 points to 6335.

Market sentiment appears to have been softened by a growing chorus of multinational authorities anticipating dire economic conditions as the full effects of the coronavirus pandemic and the ensuing blockages become more apparent later this year. The World Bank has warned that the global economy could contract by as much as 5.2%, the worst drop of its kind since the 1940s.

As a result, traders are likely to be watching the Fed’s economic forecast closely, as well as the central bank’s reaction to the surprise upturn in US employment figures released last week.

Growing pessimism led to a mixed finish on Wall Street overnight, with the Dow Jones Industrials average closing 1.09% at 27,272, while the S&P 500 fell 0.78% to 3,207. Nasdaq, rich in technologies, however seemed to sweep the negativity, increasing by 0.29% to reach a new record of 9,953.

“While traditional industries are struggling because of the [coronavirus] crisis, the technology sector is cleaning up because it is open to business. Technology was already becoming a more important part of our daily lives before the pandemic, but now the adoption of technology has been accelerated out of necessity, “said David Madden of CMC Markets UK.

Despite the mixed session in the United States, the Asian markets managed to enter positive territory early Wednesday, the Japanese Nikkei 225 increasing by 0.12% while the Hang Seng in Hong Kong increased by 0.27%.

In the currency markets, the British pound rose 0.23% to US $ 1.2755 against the dollar, although US inflation data expected later today could provide some catalysts for movement.

Important announcements expected on Wednesday:

Fed Decision on Interest Rates

Finals: Londonmetric Property PLC (), (), ()

Interim: PLC (), ()

Economic data: US inflation

Around the markets:

  • Pound Sterling: US $ 1.2755, up 0.23%
  • Crude Brent: US $ 40.63 per barrel, down 1.3%
  • Gold: US $ 1,717 per ounce, up 0.11%
  • Bitcoin: US $ 9,774, up 0.98%

City titles:

  • Aviva publicly challenged and Standard Chartered its support for China’s new security law for Hong Kong – Times
  • Vodafone has warned that Huawei’s withdrawal from the UK’s telecommunications infrastructure will be a fatal blow to the hopes of the world’s leading 5G technology – Financial Times
  • Emirates cuts thousands of jobs as world’s largest long-haul airline faces decimating international air travel – Telegraph
  • , a British real estate group specializing in warehouses, has unveiled plans to raise £ 650 million to finance the acquisition of new distribution facilities – Guardian
  • Retail shareholders in the United States are betting on bankrupt companies in the sign of the speculative investment wave that is sweeping the American market – FT
  • BDO now controls the second largest number of listed companies in the UK, as measures to shake up the sector have pushed an increasing number of companies to companies outside the “Big Four” – FT


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