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LONDON MARKET MIDDAY: Weak Start To 2019 As Miners Slump On China Data

Wed, 02nd Jan 2019 12:01

LONDON (Alliance News) - The FTSE 100 got off to a lacklustre start to 2019 on Wednesday, with miners among the worst blue-chip fallers following further disappointing economic data from China. The pound traded lower despite the UK manufacturing sector expanding at its strongest rate in six months in December, as it was no-deal Brexit fears that drove the factory activity.The FTSE 100 was down 53.75 points, or 0.8% at 6,674.38 at midday. The FTSE 250 was up 4.32 points, broadly flat at 17,506.37. The AIM All-Share was up 0.1% at 859.41.The Cboe UK 100 was down 0.7% at 11,326.82, while the Cboe UK 250 was 0.1% higher at 15,676.12 and the Cboe UK Small Companies was up 0.5% at 10,861.75.The pound was quoted at USD1.2671 at midday, down from USD1.2782 late Monday before the New Year's Day break, despite data showing UK manufacturing sector activity hit a six-month high in December. The IHS Markit/CIPS manufacturing Purchasing Managers' Index for the UK came in at 54.2 in December, up from 53.6 in November. A score above the no-change mark of 50 indicates expansion in the sector, while one below signals contraction. Consensus forecasts had seen the reading falling to 52.5 in December.The average PMI reading during the fourth quarter of 2018 was the weakest since the third quarter of 2016 - the first survey conducted after the UK's decision to leave the EU, noted Markit.The rise in the PMI in December was mainly driven by stronger inflows of new business and a "solid" increase in stocks of purchases. Movements in both mainly reflected Brexit preparations by manufacturers and their clients, Markit said, as output also increased, but at a slower pace than seen the month before. David Cheetham, chief market analyst at XTB, said that while the data is upbeat on first read, the figures were mainly driven by pre-Brexit stockpiling. "The release is not as strong as it first appears with the higher print seemingly due to firms building stocks at a near-record pace due to concerns about a no-deal Brexit. Likewise, order books were clearly buoyed by customers taking pre-emptive measures and preparing for supply disruptions in the event of the UK leaving the EU without a deal," Cheetham said. In manufacturing data from Europe, IHS Markit's final December PMI reading for the eurozone fell to 51.4 from 51.8 in November. The score came in line with the flash estimate. In accordance with the latest trend, underlying the slowdown in overall growth was further softness in new orders, the survey showed. Separate data showed that German manufacturing activity expanded in December at the slowest pace since March 2016. The final manufacturing PMI slipped to 51.5 in December from 51.8 in November. The reading matched the flash estimate.In mainland Europe, the CAC 40 in Paris was down 1.4% but the DAX 30 in Frankfurt down just 0.1%.Markets in the US are on course for a similarly weak start to 2019, with the Dow Jones Industrial Average called down 1.4%, as was the S&P 500, while the Nasdaq was pointed 2.2% lower.Still to come in Wednesday's economic calendar is a Markit manufacturing PMI for the US at 1445 GMT. Miners were leading the declines in London, with Glencore down 5.0%, Antofagasta down 4.6%, and Anglo American down 4.4% after worrying manufacturing sector data from China. The Caixin manufacturing PMI fell to 49.7 points in December from 50.2 in November. Economists had expected it to weaken to 50.1 points, but the fall below the 50 point mark which separates contraction from expansion was worse than forecast. The print was the lowest since May 2017, when the index stood at 49.6 points. Wednesday's data comes after the official PMI, released on Monday, also slipped into contraction territory in December with a score of 49.4. Smith & Nephew was down 2.0% after JPMorgan cut its rating on the medical products business to Neutral from Overweight. International Consolidated Airlines was down 2.3%, also knocked by a broker downgrade. Citigroup cut the British Airlines owner to Sell from Neutral. Among the FTSE 100 risers, fashion and homewares retailer Next was up 1.9% ahead of Thursday's Christmas trading statement. The blue-chip clothes seller is the first to update on the festive trading period, acting as a bellwether for the holiday season.Shares in department store Debenhams were down 8.8% at midday, investors less hopeful of a Christmas miracle from the retailer. "Pictures on social media of the retailer's messy shelves and the usual widespread discounts on goods people don't really want in the first place would suggest that Debenhams continues to be stuck in a rut. A trading update expected on 10 January should give the market some answers although expectations remain low for the business to deliver good news," said Russ Mould, investment director at AJ Bell.In the FTSE 250, Energean Oil & Gas was up 5.5% after signing a gas sales and purchase agreement with IPM Beer Tuvia worth approximately USD900 million over 19 years.Under the contract, Energean will supply an estimated 5.5 billion cubic metres of gas from its Karish and Tanin floating production storage and offloading vessel, located offshore in Israel.The agreement, which will begin around 2024, adds between 265 million and 380 million cubic metres per year of gas sales to Energean. Energean estimates that the agreement will contribute around 900 million in revenue over the life of the contract.

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20 Sep 2019 12:05

LONDON MARKET MIDDAY: FTSE 100 Flat As Pound Rises On Brexit Deal Hope

(Alliance News) - Stock prices in London were flat to higher at midday on Friday, with the FTSE 100 hindered by strength in the pound, which hit its highest level since July on optimism a Brexit a

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20 Sep 2019 10:24

WINNERS & LOSERS SUMMARY: Rolls-Royce Down On Further Trent 1000 Delay

(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.----------FTSE 100 - WINNERS----------Royal Bank of

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20 Sep 2019 09:23

BROKER RATINGS SUMMARY: HSBC Cuts Great Portland And Derwent London

(Alliance News) - The following London-listed shares received analyst recommendations Friday morning:----------FTSE 100----------CREDIT SUISSE RAISES BURBERRY GROUP TO

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20 Sep 2019 09:22

LONDON MARKET OPEN: FTSE 100 Dragged Down By Strong Pound, Rolls-Royce

(Alliance News) - Stock prices in London were mixed on Friday morning, as a stronger pound weighed on the large-cap index, while other indexes gained on raised hopes for a Brexit deal between the

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20 Sep 2019 08:10

LONDON BRIEFING: Rose Picked To Be First Woman To Lead RBS

(Alliance News) - Royal Bank of Scotland Group PLC on Friday said Alison Rose will succeed Ross McEwan as chief executive officer. McEwan will formally step down on October 31.RBS - which -

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12 Sep 2019 09:38

BROKER RATINGS SUMMARY: Goldman Raises AIB and Cuts Bank Of Ireland

(Alliance News) - The following London-listed shares received analyst recommendations Thursday morning:----------FTSE 100----------GOLDMAN SACHS CUTS LLOYDS BANKING TO

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4 Sep 2019 09:32

BROKER RATINGS SUMMARY: Deutsche Bank Raises BHP And Cuts Antofagasta

(Alliance News) - The following London-listed shares received analyst recommendations Wednesday morning and Tuesday:----------FTSE 100----------DEUTSCHE BANK RAISES BHP

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22 Aug 2019 09:33

BROKER RATINGS SUMMARY: Liberum Cuts Anglo American, Rio, BHP To Sell

(Alliance News) - The following London-listed shares received analyst recommendations Thursday morning:----------FTSE 100----------LIBERUM CUTS ANGLO AMERICAN TO - 1500

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22 Aug 2019 08:50

LONDON MARKET OPEN: FTSE 100 Dips Despite NMC Health Shares Soaring

(Alliance News) - London stocks opened Thursday's session on a downbeat note after a set of less dovish than expected minutes from the US Federal Reserve.The FTSE 100 was lower in early

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22 Aug 2019 07:28

TOP NEWS: Antofagasta Warns On Trade War Despite Strong Interims

(Alliance News) - Chilean copper miner Antofagasta PLC on Thursday reported a "robust" first-half performance, though cautioned on the impact trade issues are having on the copper a of a

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19 Aug 2019 08:44

LONDON MARKET OPEN: Stocks Surge On Hopes Of Economic Stimulus

(Alliance News) - Stock prices in London opened higher on Monday, amid hopes of economic stimulus and the prospect of renewed trade talks between the US and China. Amid fears of a global investors

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15 Aug 2019 16:56

LONDON MARKET CLOSE: US-China Trade Confusion Sinks Stocks Once Again

(Alliance News) - Stock prices in London closed lower on Thursday as the US and China continued to deliver confusing blows over the prospect of a trade truce between the two largest global FTSE or

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15 Aug 2019 15:59

UK Earnings, Trading Statements Calendar - Next 7 Days

Friday 16 August no events scheduled Monday 19 Advanced CommunicationsHalf

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14 Aug 2019 12:03

LONDON MARKET MIDDAY: Stocks Slide After Fleeting Tariff Delay Rally

(Alliance News) - US-China trade optimism in markets gave way to doubts over the outlook for relations between the two, leading the FTSE 100 to slump nearly 70 points at midday on blue-chip index

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14 Aug 2019 08:55

LONDON MARKET OPEN: US Tariff Move Fails To Lift Mood As China Weakens

(Alliance News) - Despite strong gains in the US overnight and broadly upbeat trade in Asia, London stocks got off to a soggy start on Wednesday, after poor economic readings from China and on got

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