Nasdaq is now trading in record territory after U.S. indexes all added to gains as of Friday
- FTSE 100 index rises 12 points
- BP announces plans to cut 10,000 jobs
- U.S. indexes open higher
2:45 p.m.: Wall Street opens higher
U.S. markets started the week on the front foot, adding to Friday’s gains from last week’s U.S. jobs surprise.
Shortly after the opening bell, the Dow Jones Industrial Average was up 0.81% at 27,331, while the S-P 500 rose 0.32% to 3,204 and the Nasdaq rose 0.26% to 9,840.
The opening of the Nasdaq put it in record territory, after closing at a record high of 9,814 last Friday.
Meanwhile, UK BP has made headlines again as it announced plans to lay off 10,000 employees and save $2.5 billion a year as the industry grapples with falling oil prices.
Chief executive Bernard Looney said that most of them, representing 15% of its workforce, will be laid off by the end of the year, although he noted that “we will probably have to go even further”.
However, investors seemed relatively unseeded by the scale of the cuts, with shares in the oil giant up 2% at 369.3 pence by 2.40pm.
The FTSE 100 was up 12 points at 6,496.
1:30 p.m.: U.S. indexes expected to add to Friday’s gains
U.S. indexes are expected to open higher as stock market bubbles continue to bubble in the aftermath of Friday’s surprisingly good U.S. jobs figures.
Spread betting quotes point to the Dow Jones adding another 205 points to Friday’s gain of 829 points to open at around 27,316.
The Company’s index of values was up 12 points at 2,306.
In London, the FTSE 100 index was hitting the door at 6,500, up 16 points (0.3%) at 6,499, helped by the pound yielding its previous gains against the US dollar and demand for the oil giants after the weekend’s OPEC meeting.
“Crude oil prices rose after OPEC had a very soft meeting over the weekend that extended their historic production cuts by an additional month. Oil was also sustained after Tropical Storm Cristobal shut down about 34% of oil production in the U.S. Gulf of Mexico. The impact of the storm was about 636,000 of daily crude oil production, in addition to a 32% decrease in natural gas production,” noted Edward Moya of OANDA.
() rose 2.8% to 373.35 pence and () rose 4.0% to 1,484.2 pence.
12:15 p.m.: The market has a sleepy but positive morning
The Footsie ended the morning with a modest gain but after the initially softer opening, most investors will be happy to take that.
The main stock index was 10 points (0.2%) firmer at 6,494.
The hot and fuzzy feeling is largely due to an additional easing of locking restrictions around the world. Reports indicate that it may even be possible soon to get a pint in a British alcohol provided it has a beer garden.
Providing a bit of an antidote to this was the last daily update of the coronavirus (COVID-19) from Pantheon Macroeconomics, which wondered if a second wave of infections is starting in the southern United States.
Confirmed cases in the United States increased by 1.16% yesterday, up from 1.13% compared to the same day last week. The number of new cases increased by 6.4%, from 20,000 a week ago to 22,300.
“The daily percentage growth is now barely down, so the number of new confirmed cases is up slightly, but this needs to be seen in the context of an 18% increase in testing in the week to Sunday, compared to the previous week,” said Ian Shepherdson of the Hall of Fame.
South Carolina reported a 70% increase in the average number of new cases over 70 days over the past two weeks, although testing increased by only 16% over the same period.
“The surge in cases in Texas is alarming, especially because the state does so few tests, ranking 48th in the states. The spike in cases in Arkansas is due in large part to a sharp increase in testing, but the governor yesterday hit pause on the gradual reopening of the state. The sudden drop in Alabama cases is surprising, but very welcome if it can be sustained,” Shepherdson said.
New cases will fall more quickly in the UK after a pause, despite fears that the holiday weekend two weeks ago would trigger a further increase, Shepherdson noted.
10:50 a.m.: Return to positive territory
The Footsie overtook its sentiment on Monday morning and is now in positive territory, with travel-related shares leading the way.
The FTSE 100 rose 20 points (0.3%) 6,504.
The cruise operator () was the best performing blue-chip, up 13% to 1,621.5p continued its recovery as various parts of the world emerge a little more locking.
Remember, the stock was trading at more than 36 pounds at the beginning of the year so the recovery has a long way to go.
As airlines prepare to challenge the UK government’s quarantine policy for foreign travellers, the owner of British Airways () and easyJet PLC () continue to support the UK government’s quarantine policy. The former was up 8.1% at 353.94 pence and the second up 5.9% at 940 pence.
“The increase in names related to travel and airlines comes on the day when the UK implements about 40 for travel abroad, perhaps the very definition of closing stable doors after the horse has bolted. With blockages easing across Europe and no sign of a second wave of infection, this decision has been fiercely contested by airlines, and it seems that the market expects the restriction to remain in place for a limited time,” said Chris Beauchamp at IG.
The reopening of the showrooms of the houses also threw a feelgood halo on the home building sector.
9:35am: You know it’s a dull day when a SEGRO ad is one of the highlights
The London Stock Exchange has made the metaphorical equivalent of pressing the “snooze” button and rolling for another 15 minutes of kip.
The FTSE 100 fell 9 points (0.1%) at 6,475, sentiment fell slightly by the pound, adding more than a quarter of a cent against the dollar to 1.2694 $US.
Following Friday’s surprising U.S. employment data, China’s overnight trade data also provided some surprises.
The trade surplus increased from US$45.3 billion in April to US$62.9 billion in May; consensus forecasts were far from US$41.4 billion.
“Exports fell by 3.3% [year-on-year], after increasing by 3.5% the previous month, beating the consensus for a sharper decline of 6.5%. This is a solid shift, as the base effects were unfavourable. Meanwhile, imports slumped 16.7% last month, further than the 14.2% plunge in April and the consensus of -7.9%,” said Miguel Chanco, senior Asian economist at Pantheon Macroeconomics.
“Continued weakness in imports makes sense in the context of weak world commodity prices and growing weakness in domestic demand. Inbound shipments decreased by 1.5% m/m in May, more moderate than the 5.2% decline in April. A rebound in imports of iron, copper, coal and machine tools was not enough to offset gains elsewhere,” Chanco said, adding that May is expected to mark the peak of China’s trade surplus.
China’s foreign exchange reserves rose from US$3,091 billion in April to US$3,102 billion, compared with US$3,096 billion.
Pharmaceutical giant PLC (), down 2.8% to 8,191.82 pence, weighed on the index after reports revealed it had made a supply approach earlier this year for its U.S. counterpart, Gilead Sciences.
SEGRO PLC (), the real estate company that put Slough on the map (and then removed it again), plunged 0.7% to 886.6 pence after spitting up at 202.5mln for a 34-acre urban warehouse estate in Perivale, West London.
8:50 a.m.: Lacklustre start to the week
The FTSE 100 returned some of its gains last week as it withstood the positive appeal of major Asian markets in early trading on Monday.
The British blue chips index opened down 41 points at 6,442.98.
The big news of the morning was “response to weekend speculation of a mega-offer for Gilead Life Sciences (LON:GILD), which is worth about 72 billion euros.
Sources from the Anglo-Swedish group quoted in most newspapers have dampened speculation, with the Times reporting that interest in the US manufacturer of coronavirus treatment remdesivir had been abandoned. the stock fell 1.9%.
Also on leave, this time 5.8%, was JD Sport () in a continuous reaction to the decision of the president and co-founder of the company, Peter Cowgill to offload a portion of his shares.
The owner of British Airways, IAG () rose 3.7% after taking legal action over the BRITISH government’s restrictions on quarantine airports.
Shell () and BP () both increased by 2% each as a result of OPEC Plus’ decision to maintain production cuts.
Rumours of the reopening of pubs and restaurants on June 22 gave publican Marstons (LON:MAR) a 15% boost, while the Pitcher and Piano chain grew by 6.3%.
() expands its stake in the Wressle oil field development project, with an agreement to acquire an additional 12.5% interest in Humber Oil and Gas Limited for an upfront payment of EUR 500,000. He sees the company’s participation cited by AIM in the Lincolnshire onshore oil project increase to 40%. Wressle is expected to complete the “first oil” and begin production later this year, and when this milestone is reached, it will be transformational for Union Jack’s production and revenue profile.
() stated that its consulting division has signed a three-year contract with Agria Pet Insurance to become a “confianc cybersecurity artenaire.” The AIM-listed company said Qu’Agria will use its Virtual Information Security Manager (vCISO) service to improve its cybersecurity posture after the completion of a project to assess the insurer’s security checks. The agreement is the industry’s fifth largest insurance customer, Crossword has secured in the past 18 months and will see Agira receive regular testing of its cybersecurity processes and technology to minimize security risks and ensure ongoing compliance with regulations.
() confirmed an average production of 2,394 barrels of oil equivalent per day (boepd) in the first quarter of 2020 while detailing a low-cost development opportunity. In an update on resources and reserves in Argentina, the company told investors that it has identified an initial portfolio of sixteen low-cost work and intervention operations as part of the Santa Cruz Sur asset package. These operations will focus on the production of additional volumes which, in turn, will migrate the associated volumes into proven developed production reserves (PDPs).
() stated that he participated in a token distribution event, or “lockdrop,” for Plasm, a decentralized application that will be launched on the Polkadot blockchain. The cryptocurrency investor and blockchain said he locked the time 1,232 Ether, the equivalent of about US$253,250, via a smart contract for various durations. In return, it will receive about 66.29mln Plasm chips. KR1 said the investment was “a new and innovative way to optimize the use of assets in its portfolio.” Plasm is a highly scalable platform that allows developers to build secure applications using its ‘Layer 2’ solution for fast, high-capacity transactions.
() stated that its entrepreneur-in-residence, Christian Schetter, has been appointed managing director of the venture capital firm. Schetter, who brings with him 20 years of industry experience, said he hoped to move the company to its “next stage of growth” in its new role. He joined Arix last year and before that was CEO of Rigontec, an immuno-oncology company, he sold Merck.
PLC () said it sees demand for its credit offers recover as the coronavirus (COVID-19) lock in Russia begins to ease. In its full-year 2019 earnings release, the company said the underlying operations performed better than expected last year, its pre-tax loss fell to 891,589 euros from 1.55mln in 2018. The group’s adjusted loss before interest and taxes (EBIT) in 2019 was EUR 177,000 compared to a positive EBIT of EUR 915,000 in 2018. The Russian-focused fintech group said last year saw a significant improvement in its credit rating system, with the default rate falling to 8.1% from 22% in 2018. At the end of 2019, the gross outstanding loans to customers amounted to 32.1 million euros, compared to 29.2 million euros a year earlier.
() stated that its Board of Directors will be reduced to eight members of 12 following the resignation of four non-executive directors. Gabriel Urwitz, Peter Sjstrand, Allen Han and Dr. Yuelong Huang retire at next month’s annual meeting. Thanking them, President Mike Sinclair said, “As board members, they have helped Advanced Oncotherapy position themselves as a proton therapy technology disruptor, and we wish them all the best in their future endeavours.”
BlueRock Diamonds PLC () sold 2,400 carats of its Karevleei mine in South Africa at an average price of 290 $US per carat for a total of 700,000 $US. The transaction was made in private. “This sale at a time when traditional diamond sales channels remain closed and at a price we believe to be at current market value for this particular parcel of diamonds is an excellent result in a very uncertain market,” said BlueRock Executive Chairman Mike Houston.
() submitted an application to the Junta of Castilla y Leon for a new three-year investigation permit for the toral lead, zinc and silver project in northwestern Spain. The company has obtained an initial investigation permit for Toral in 2017, which is due to expire in November 2020, after the conclusion of the usual three-year period. An investigation permit gives a company the right to pursue exploration activities as part of a project.
() received its third shipment of equipment for the Baita Plai polymetallic mine in Romania. This includes an underground rock loader and mining jackhammers. The expedition arrived on June 1 and cleared on June 5, then arrived in Baita Plai over the weekend.
(), the producer of base metals and precious metals listed on the aquis Exchange of its Hellyer gold mine in Tasmania, Australia, announced that it had raised 118,743 euros gross from a 7.5 pence-per-share equity issue from a UK-based institutional investor and a group of private investors for general working capital purposes and that the company will issue 1,583,241 new common shares.
(), a leading supplier of hydrogen energy generation technologies, announces that following an exercise in options under the AFC stock option program, the Company has issued 40,000 common shares of 0.1 pence each at an exercise price of 15.4 pence per share.
(), the investor registered in natural resource opportunities, confirmed that its annual general meeting will be held at 10:00 a.m. on June 30, 2020 at Higher Shalford Farm, Shalford Lane, Charlton Musgrove, Wincanton, Somerset BA9 8HF. As a result of restrictions on public gatherings under the Coronavirus Act 2020, shareholders are encouraged not to attend the meeting in person, but to vote by proxy. More details are provided in the notice of meeting.
i3 Energy PLC (), an independent oil and gas company with assets and operations in the UK, has announced that its Annual General Meeting (AGM) will be held at the company’s London office being 2 Riding House Street, London, W1W 7FA on 30 June 2020 at 13:00 BST. Under the UK government’s current ban on non-essential travel and public gatherings, it will not be possible for all shareholders to attend the AGM in person, and the group therefore strongly encourages shareholders to vote on all resolutions by filling out an online proxy appointment form naming the Chairman of the Meeting as your agent. , to record all questions in advance and not to attend the meeting in person.
6.35am: Footsie called below
The FTSE 100 looks set to succumb to a bout of profit-taking after a double-digit gain on Friday, which capped a positive performance from the British blue-chip index last week.
In Asia, Friday’s report on non-farm wages in the United States was delayed, with most of the region’s major stock markets in positive territory on Monday.
Over the weekend, OPEC-Plus countries agreed to keep production cuts, keeping Brent crude firmly above $US40 a barrel.
“When we entered the meeting, there was speculation about some kind of extension in terms of timing,” said David Madden of CMC Markets.
“Saudi Arabia has raised its selling price of oil to Asia by its largest increase in at least two decades. Their sale price to other parts of the world has also been raised. WTI and Brent have recently been on the bullish slopes, and this should continue in light of the latest news.
Over the weekend, it also emerged that () had made a takeover approach for Gilead Sciences Inc (). The latter is currently valued at around 72 billion euros.
As for the company’s planned news, it should be a relatively slow week. British American Tobacco (LON:BAT) is leading a range that includes broadband specialist TalkTalk () and platinum producer Johnson Matthey ().
Important events expected on Monday:
Trading updates: PLC ()
Final: Ocean Outdoor Limited
Around the markets:
- Pound worth 1.2707 $US (0.3%)
- Gold at $1,693.80 $US per ounce, up 10.80 $US
- Brent crude changing hands for US$43.13 a barrel, up 83 cents
- Ministers aim to reopen England’s pubs and restaurants on 22 June
- New Zealand lifts restrictions after ‘eliminating’ coronavirus
- Huawei defends itself against attacks on Britain 5G
- Bt auditor points to another failure
- ‘lower interest’ in the company behind the coronavirus drug
- Amanda Staveley faces 800mln claim for Omar Hassanieh’s expenses
- Pub sues RBS over allegations it blocked 20mln of EPP imports from China
- Ashford’s new pandemic film studio
- Sunak debates tax incentives for SMEs to boost hiring
- Brexit: UK fears EU chief negotiator will lose grip on fisheries talks