FTSE 100 Index jumps close 133 points higher
Top footsie riser
Wall Street up
FTSE 100 ended an eventful week, at least politically higher, over 133 points to 6,968 that day.
For the week as a whole, the British blue chip index closed at 0.72%.
On Friday, sentiment was put under pressure by reports on US / China trade.
"The optimistic US-China markets led to an overburdened Friday afternoon that ignored elements of a WSJ report while stupidly focusing on a follow-up from Bloomberg," said Connor Campbell analyst at spreadbetter.
"It must be stressed, however, that the news is controversial, with investors keen to claim that Treasury Secretary Steve Mnuchin wants to lower tariffs on China for every drop of positivity they could." Fortunately, Bloomberg brought another upturn declare that Beijing has "offered to balance the trade imbalance with the US" by increasing the uptake of American goods.
FTSE 250 was also higher, with the index up 225 points to close at 18,762.
Footsie's top riser was insurer Prudential plc (), up 4.55% to hit 1.515p.
15:19: Footsie pushes to new heights
The Footsie rose to new heights for the day after US indexes on the front foot opened.
The FTSE 100 rose 127 points (1.9%) to a daily high of 6,962.
In the US, the Dow Jones rose 168 points to 24,537 and the S & P 500 by 2,665 points by 20 points.
However, Lukman Otunuga, a research analyst at FXTM, did not get carried away.
"Renewed optimism over the US-China trade talks sparked global risk appetite on Friday, with Asian stocks mostly weakening. Although European markets are benefiting from improved market sentiment, investors need to remain vigilant and vigilant, "Otunuga said.
"Geopolitical risks such as Brexit uncertainties, a partial government shutdown in the United States and the unpredictable nature of trade negotiations have weakened market sentiment. With concerns over slowing global growth contributing to a mix of underlying issues that affect risk appetite, stock markets remain vulnerable to downward shocks, "the analyst suggested.
- Justina Nothard (@Justinaces) 18 January 2019
1:45 pm: Footsie turns up
The Footsie sat down towards the end of the noon session on a three-digit profit.
The FTSE 100 rose 110 points (1.6%) to 6,945, ahead of an expected opening on Wall Street.
Spread bets expect the Dow Jones to open at around 24,510 (+140 points) and the S & P 500 at 2,649 (+13 points).
The mood was strengthened by renewed optimism in trade talks between the US and China.
According to a public survey by the Chief Investment Office (CIO) of Wealth Management, the possibility of a trade war will be the biggest threat to global growth in 2019.
The CIO's survey of visitors to its website found that 31% of the approximately 700 respondents refer to a trade war as a nightmare scenario, while "European policy" is a distant second with 19% of the vote.
"Like respondents, we are less concerned about threats such as quantitative tightening and political mistakes," the CIO said.
Emerging markets in Asia were expected to provide the best stock performance by 36% of respondents in 2019, compared to just 16% of respondents in the US. Defensive stocks achieved the second largest share of votes at 23%. The other options were emerging markets in Latin America, Japan and cyclical stocks.
DB's CIO expects the S & P 500 to deliver the highest returns in developed markets over the past 12 months. He continues to speak of a global preference for the US over European equities and an overweight in US equities.
The FTSE 250 rose 145 points (0.8%) to 18,683. Its performance was adversely affected by a 22% decline in Cybersecurity Play PLC () stock price due to a profit warning.
However, the trading update of Mid-Cap-PLC () hit the mark.
The wind farm investor announced a quarterly interim dividend of 1.69 pence per share for the quarter ended December 31, 2018 and an increase in the target dividend for 2019 to 6.94 pence per share.
The shares rose by 4.5%.
READ Greencoat UK Wind is rising as net asset value has risen in the fourth quarter. In 2019, a dividend increase is targeted
Fresh produce manufacturer Group PLC () had changed little after confirming full-year guidance despite weak consumer confidence in the UK.
11.30 clock: Footsie rises to a three-digit profit
London's leading index was close to its high as the bulls returned to the market.
The FTSE 100 rose by 85 points (1.2%) to 6,920, just four points below its high.
Only eight constituents were in decline, including the Packing Group (), which declined 12.5 pence at 1,793.5 pence, having lowered its price target from 2,200 pence to 2,200 pence.
The two leading companies Hausbauer PLC () and PLC () recorded an increase of 3.6% and 3.5%, respectively.
US-focused tool rental company PLC () increased 2.7% to 1,919.5p, despite RBC reducing its price target from 2,800p to 2,400p.
"The oil price rose more than 1% overnight after an OPEC + report last month showed that its output level has plummeted, easing fears of continued oversupply. The price of crude oil is also supported by optimistic trading, "said Dean Popplewell of Oanda.
Oil giants BP PLC () and () rose 1.1% and 1.6%, respectively.
10:00 am: The days of December are a big month for retailers, which may end
UK retail sales were not expected to be good in December - and they were not.
For the three months to the end of December, shipments fell by 0.2% yoy, with a decline in all major sectors except fuel.
Compared with the previous month, the volume purchased in December 2018 decreased by 0.9% as all sectors except for food and fuel storage declined this month.
Once upon a time in December, it was the big month for retail sales. These days, especially thanks to Black Friday, it's November. From today's retail sales, which showed a decline of 0.2% in December volume, https://t.co/PDkvoxQwtr pic.twitter.com/A52wTlyHB0
- Ed Conway (@EdConwaySky) 18 January 2019
Online commerce accounted for 20% of sales and was up 13.9% on the previous year.
For the entire year 2018, the National Statistics Office stated that sales of the purchased volume increased by 2.7% over the previous year.
The FTSE 100 reacted to the release by breaking the 6,900 limit and rising to 6,908, an increase of 73 points per day.
Group PLC (), an online shopping technology company, lost 0.6%, and the owner of Primark () lost 0.2%.
#UNITED KINGDOM #retailsales twice worse than expected - M / M excl. Fuel -1.3% vs. -0.6%, but headline M / M, only 10. percentage point worse than fcast at -0.9%. Looks like deeper cratering has been a prize: not like that #GBPUSD In fact, try to rip off the support / Fr ls ^ KO pic.twitter.com/jzVNChnNy2
- city index (@CityIndex) 18 January 2019
9:15: The Footsie eyes return to about 6900 back
With less than a dozen index components in the red, the FTSE 100 got off to a good start.
The blue-chip index rose 53 points (0.8%) to 6,888 and raised its loins for another attack at 6,900.
"European markets and US futures are trading much higher today, building on the optimism of US-China trade talks. We have seen a significant increase in the number of investors who have included risk assets in their portfolio, "said Naeem Aslam of Thinkmarkets.
"To put things in perspective, the S & P 500 broke through its 50-day moving average, a signal that bulls are back in the race and maybe a low point exists, as long as we do not postpone this critical moving average. This happened after a report mentioning that US Treasury Secretary Steven Mnuchin had proposed easing Chinese tariffs. The Ministry of Finance has not confirmed this, but the market has bought it for now, and if it turns out to be a junk, the sell-off would be fierce, "said Aslam.
Airline stocks were free of acquaintances after Holdings PLC ()'s recent profit warning sparked a chill in the sector.
READ Ryanair down after profit warning as lower winter prices offset the increase in traffic
Shares fell 1.3%, bringing down industry peers easyJet PLC () and British Airways owner International Consolidated Airlines (). The former dropped 2%, which was not supported by the downgrading of a broker, and the latter was 0.9%.
READ: easyJet has been downgraded by JPMorgan as the sector has been disrupted by another Ryanair profit warning
"has delivered a profit warning that has unsettled investors across the aviation sector, as well as the uncertainty surrounding the prospects for airlines is very high," said Neil Wilson of markets.com.
"It was a harsh winter for the airline, whose fares were significantly lower than expected. Winter rates fell by -7% from a previous forecast of -2%. The sector seems to be doing its best to outperform its margins, as is its habit.
"Therefore, the full-year profit forecast will be reduced by just less than 10% and the range will be reduced from EUR 1.1 billion to EUR 1.2 billion, from EUR 1.0 billion to EUR 1.1 billion.
"This is a difficult pill to swallow, but there was another blow in the tail when management warned that further cuts in flight prices or a reduction in guidelines could not be ruled out," he added.
There was a profit warning on Friday, the second in four months. Winter rates are expected to fall more than previously thought (https://t.co/uJa5Opw3Au)
- The Irish Times (@IrishTimes) 18 January 2019
"However, there are positive results - traffic growth of 9% to € 142 million was above the forecast. Also, secondary sales and better unit costs should provide some comfort.
"However, this is a problematic warning as it comes at a time of great uncertainty for the industry.
"We find that stocks in the US look rather cheap since August 2017, when planning problems began, by about half," said Wilson.
8.45 am: Footsie jumps back
The FTSE 100 opened firmly in positive territory as mood music, which had accompanied the Sino-US trade dispute, suddenly became more positive, increasing the index of blue-chip stocks 55 points to 6,889.40.
Overnight, Wall Street continued to rise after reports reported that US Treasury Secretary Steven Mnuchin is pushing for the withdrawal of some tariffs on Chinese imports.
"Loosening up the discussion about relaxation has helped attract riskier assets," said Jasper Lawler of the London Capital Group.
"It seems almost impossible to know where the relations between the US and China are. However, the market hangs by every headline and shows how sensitive he is to the ongoing trade issue. "
Movements on the Footsie were subdued, with ITV () gaining 2.5% and losing ground on Thursday after BofA Merrill Lynch downgraded. Liberum Capital had rejected this in a communication.
Shares of the copper mining company Antofagasta () were stuck in the face of downgrading to "sell" by an American broker.
Among the mid-caps, cyber security expert Sophos () lost 28% of its value, saying that trading had been dampened and reporting that the cash gain had gone into reverse.
"There are many problems with this announcement, not least the fact that management has once again proved too optimistic," said Nicholas Hyett, an analyst.
"The networking business looks like it's facing real problems - and while there are some positive sounds at recent product launches, there are only a few numbers that prove it."
() Consider a larger mine in its Bougouni lithium mine in Mali after more drill results have already been received. The offspring are now watching an initial processing plant of 1.2 million tonnes per year and expanding to 1.5 million tonnes per year as operations move into a stable production phase.
(), the remote meeting technology company, has signed a contract extension with world-leading law firm Clifford Chance, worth £ 2.34m over a three-year period. The total order value of £ 2.34 million over the three-year term is earmarked for providing conference calls for Clifford Chance's global operations, the 32 major financial centers in the Americas, Asia-Pacific, Europe and the Middle East and in Africa.
() informed investors that the acreage of the Avalon prospectus will be extended from a license option to a frontier exploration license. The Irish offshore researcher said in a statement that the Minister of State of the Department of Communications, Climate Change and the Environment in Dublin had approved the change with effect from 1 February.
PLC () saw its shares rise on Friday, as the wind farm investment group saw its unaudited net asset value increase to £ 1,392.8 million or 123.1 pence per share as of December 31, 2018. The company, listed on the FTSE 250, said that this represents an increase of 8.1 pence per share for the fourth quarter, in addition to the distributed dividend of 1.69 pence.
() told investors that the drill program in its Namibian Tantalite Investment (NTI) mine project continues to generate very encouraging results. The company indicated that it has completed 22 out of 33 planned drill holes at NTI and that it has performed assays on 432 core samples and 72 channel samples.
(LON: AEG) announced that after the merger of the two companies, they intended to transfer their role as nominated advisers (NOMAD) from Northland Capital Partners to SP Angel Corporate Finance. The company said this process is progressing, and SP Angel made a site visit to North America this week as part of the take-on process, adding that, if necessary, another announcement will be made.
Shefa Yamim (ATM) Ltd () has highlighted a number of important milestones the company had achieved in the second half of 2018. In a late-Tuesday corporate update, the Israel-based gem exploration company said it had completed a technical economic evaluation (TEE) for its Kishon Mid-Reach project, and the results will be announced in January.
(), the cost-effective multi-currency payment system and e-banking, has appointed its joint broker with immediate effect. It added that Cenkos continues to be nominated as a consultant (NOMAD) and joint broker.
() announced the appointment of Charles Enea Cattaneo, a partner of the corporate finance company Cattaneo LLP, founded in 2005, as a non-executive director of the company with effect from 17 January 2019. He also announced the appointment of James Sutcliffe to the position of Chairman of its International Advisory Council, with Sutcliffe leaving the Board of the Group.
() has announced that Rukwa Limited, a wholly owned subsidiary of the Group, has repurchased 325,000 outstanding unsecured subordinated convertible bonds of the Company due from El Oro Limited in April 2019 for a total price of $ 276,250. The Group said that implies a discount of 18% of convertible loan notes based on their face value plus interest accrued up to that date. According to Shanta, the value of remaining outstanding convertible bonds that are not directly or indirectly held by the Company is $ 14,675,000.
6:45 am: Trade talks are becoming more optimistic
Optimism regarding the outcome of the US Sino trade talks should set off a solid start for the Footsie, which should make up for all of yesterday's losses.
Yesterday, the FTSE 100 dropped 28 points below 6.835 and was up 28 points this morning.
The American markets had a good day yesterday: the Dow Jones average rose 163 points to 24,370 and the S & P 500 climbed 20 points to 2,636.
Asian markets were also on the rise this morning. In Hong Kong, the Hang Seng Index was 308 points higher at 27,064, while the Nikkei 225 rose 264 points to reach 20,666 in Tokyo.
"Watch for headlines on trade talks between the US and China after the Wall Street Journal has considered the US government cut tariffs on Chinese imports," was Danske Bank's recommendation.
"The story was probably not as interesting as the headlines suggest, as the proposal comes from Treasury secretary Steven Mnuchin (a China dove), while US sales representative Robert Lighthizer (China Hawk) disagrees with the idea. Still, we still interpret the story as another sign that a trade agreement between the US and China is approaching and probably the markets are doing so, "the bank added.
In the UK, a quiet day is expected for the company's results, so the focus is likely to be on recent retail sales in the UK, where expectations are not high.
Retailers have the worst performance since the 2008 financial crisis in December. The analysts expect a minus of 0.8% compared to the same month last year.
A combination of Brexit uncertainty, declining consumer confidence and stagnating real wage growth is affecting the retail industry.
In other areas, Mining PLC () reports fourth quarter production results, while food company Group PLC () publishes a trade update before the close of trading.
Important events are expected on Friday:
trading updates: Group PLC (), (), PLC
Annual General Meetings: PLC (), (), PLC ()
economic data: Retail sales in the UK; US industry, production production; Index of preliminary consumer sentiment from the University of Michigan
To the markets:
Sterling: $ 1.2968, down 0.18 cents
10-year gold: 1,227% yield
Gold: $ 1,291.20 an ounce, down $ 1.10
Brent crude: $ 61.91 a barrel, plus 73 cents
Bitcoin: $ 3,655.70, up $ 5.64
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The manufacturing company, which supplies Huawei and other smartphone manufacturers, warned that sales in the first quarter would fall sharply.
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Philips plans to close its last manufacturing facility in the UK, putting 430 jobs at risk.
The online real estate agency will carry out a relaunch one month after taking office under new management.