The latest focusIR Investor Webinar with speakers from: Pyx Resources, Helix Exploration, Fulcrum Metals and Metals One takes place on Tuesday 23rd July. Please register here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksBAE Systems Share News (BA.)

Share Price Information for BAE Systems (BA.)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 1,277.50
Bid: 1,276.00
Ask: 1,276.50
Change: 7.50 (0.59%)
Spread: 0.50 (0.039%)
Open: 1,271.00
High: 1,282.50
Low: 1,268.00
Prev. Close: 1,270.00
BA. Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

LONDON MARKET CLOSE: Europe closes mixed ahead of US inflation data

Wed, 11th Oct 2023 17:03

(Alliance News) - European equities closed mixed on Wednesday, pausing for breath after convincing gains on Tuesday, with a sell-off of luxury retail shares hurting the mood, while a hotter-than-expected US producer price reading did little to soothe lingering inflation worries.

All eyes will be on Thursday's consumer price index data, which could influence whether or not the US Federal Reserve enacts an interest rate hike next month. Currently, it is expected to leave rates unchanged at the 5.25%-5.50% range.

The FTSE 100 index lost 8.18 points, or 0.1%, at 7,620.03. The FTSE 250 ended down 91.43 points, or 0.5%, at 17,876.24, and the AIM All-Share lost 2.40 points, or 0.3%, at 695.69.

The Cboe UK 100 fell 0.2% to 761.15, the Cboe UK 250 lost 0.7% at 15,540.27, and the Cboe Small Companies lost 0.1% to 13,050.46.

Stocks in New York were mixed. The Dow Jones Industrial Average was down 0.1% at the time of the closing bell in London. The S&P 500 was flat and the Nasdaq Composite was up 0.4%.

The pound was quoted at USD1.2309 at the time of the London equities close on Wednesday, up from USD1.2270 on Tuesday. The euro stood at USD1.0622, up against USD1.0606. Against the yen, the dollar was trading at JPY149.01, higher compared to JPY148.74.

The dollar was mixed despite a more robust than expected US producer price index reading.

The producer price index rose 2.2% in September from a year before, accelerating from a 2.0% annual rise in August. Markets had been expecting the inflation rate cool to 1.6%, according to FXStreet-cited consensus.

Month-on-month, the producer price index rose 0.5% in September, slowing from a 0.7% rise in August. The monthly PPI inflation print had been expected to be 0.4%.

The data was printed ahead of the release of minutes from the Federal Reserve's most recent meeting, due at 1900 BST.

Fed tightening expectations have faded so far this week, supporting equities.

The Federal Reserve is on track to tackle US inflation without pushing the country into a damaging recession, a senior official on the bank's rate-setting committee said Tuesday.

"We feel like we're on track for a soft landing," Minneapolis Fed President Neel Kashkari told a conference in North Dakota, using a popular term to describe tackling inflation while avoiding a recession.

"Inflation has come down quite a bit, the labour market has remained strong, maybe we can get inflation all the way back down and avoiding (sic) a deep recession," he said.

Kashkari also engaged with recent comments from Dallas Fed President Lorie Logan, who said elevated long-term interest rates could mean there is "less need" for another rate hike.

"It's certainly possible that higher long term yields may do some of the work for us in terms of bringing inflation back down," Kashkari said Tuesday.

But he warned that if yields rose due to a change in expectations about Fed policy, the US central bank "might actually have to follow through on their expectations in order to maintain those yields".

In mainland Europe, the DAX 40 in Frankfurt rose 0.2%, though the CAC 40 in Paris lost 0.4%.

LVMH fell 5.8% after poorly-received third-quarter results, which showed revenue growth slowed.

Other luxury retail stocks across the continent also fell, under the expectation that their top-line growth will be similarly tepid.

In London, Burberry fell 3.2%. Richemont declined 4.0% in Zurich.

Helping the FTSE 100 and Frankfurt's DAX on Wednesday were defence firms BAE Systems and Rheinmetall. The duo rose 1.3% and 2.7% as investors continue to track events in the Middle East.

Israel's Prime Minister Benjamin Netanyahu announced Wednesday an "emergency government" with an opposition party leader, Benny Gantz, for the duration of the war with Gaza militants.

Ebury analyst Matthew Ryan said that while the conflict's impact on financial markets has been contained so far, the events threaten a "contagion".

"We think that the biggest risk lies in commodities, as a wider war in the Middle East would jeopardise oil supply and could push up prices, particularly should major oil producers Saudi Arabia and Iran take up arms. This may present an additional upside risk to global inflation and could ensure that central bank interest rates stay higher, for longer," Ryan said.

Back in London, Travis Perkins declined 6.7%. The builders merchant warned that falling prices of commodity products have hurt gross profit and narrowed its profit margins, leading it to cut earnings guidance.

Travis guided for 2023 adjusted operating profit of GBP175 million to GBP195 million. This is down from its previous guidance of GBP240 million, provided in August at the time of its interim results. It also will be down at least 34% from GBP295 million in 2022.

Howden Joinery and Grafton fell 2.8% and 4.7% in a negative read-across.

Over in New York, Exxon was down 4.4% at the time of the London equities close. It announced it would acquire Pioneer Natural Resources in a deal worth roughly USD60 billion.

The firm said Pioneer shareholders will receive 2.32 Exxon Mobil shares for each share of Pioneer. Pioneer is a Texas-based hydrocarbon exploration firm.

The deal gives Pioneer an equity value of USD59.5 billion and an enterprise value, so including debt, of USD64.5 billion.

The deal will be the firm's largest since its USD81 billion merger with Mobil in 1998.

Brent oil was quoted at USD85.84 a barrel late Wednesday in London, down from USD87.50 at the London equities close on Tuesday. Gold was quoted at USD1,872.58 an ounce, higher against USD1,859.73.

Thursday's economic calendar has a UK gross domestic product reading at 0700 BST, before the US CPI and latest jobless claims readings at 1330 BST.

The UK corporate diary has a trading statement from budget carrier easyJet and money transfer firm Wise.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.

More News
22 Jul 2024 14:43

Starmer says UK warplane capability important amid defence review

FARNBOROUGH, England, July 22 (Reuters) - Prime Minister Keir Starmer on Monday stressed the importance of Britain's fighter jet capability, but stopped short of guaranteeing its next generation combat air programme with Japan and Italy would not be affected by a defence policy review.

Read more
22 Jul 2024 11:14

UK renews long-term complex weapons deal with MBDA

FARNBOROUGH, England, July 22 (Reuters) - British defence minister John Healey has announced the renewal of a 6.5 billion pound ($8.40 billion), 10-year complex weapons partnership with MBDA, the European missile systems company.

Read more
22 Jul 2024 10:38

UK PM Starmer tells airshow of importance of GCAP project

FARNBOROUGH, England, July 22 (Reuters) - British Prime Minister Keir Starmer said on Monday he wanted to put "on record" just how important the Global Combat Air Programme (GCAP) was, amid speculation that it could stop supporting the fighter jet project with Japan and Italy.

Read more
21 Jul 2024 11:00

Embraer's Eve rolls out flying taxi prototype, cash needs covered until 2027

Prototype to fly by end of 2024 or early 2025, says CEO Johann Bordais

*

Read more
20 Jul 2024 23:10

US to take 'hard look' at fighter project, top official says

RAF FAIRFORD, England, July 20 (Reuters) - The U.S. will closely dissect its plans for a Next Generation Air Dominance (NGAD) platform - a future family of fighters and drones - before deciding whether to go ahead, Secretary of the Air Force Frank Kendall said on Saturday.

Read more
19 Jul 2024 17:33

UK stocks end with weekly losses as commodity-linked stocks weigh

FTSE 100 down 0.6%, FTSE 250 off 0.8%

*

Read more
19 Jul 2024 09:38

LONDON BROKER RATINGS: Jefferies raises AJ Bell to 'buy'

(Alliance News) - The following London-listed shares received analyst recommendations Friday morning and on Thursday:

Read more
18 Jul 2024 20:30

UK defence firms discuss boosting support for Ukraine with Zelenskiy

LONDON, July 18 (Reuters) - Senior executives from British defence firms including BAE and Babcock met Ukrainian President Volodymyr Zelenskiy on Thursday to discuss the need to boost military support for the country in its conflict with Russia.

Read more
18 Jul 2024 13:05

US State Department OKs possible $138.26 mln weapons sale to Czech Republic -statement

WASHINGTON, July 18 (Reuters) - The U.S. State Department has backed the possible sale of hellfire missiles and other weapons worth $138.26 million to the Czech Republic via contractors Lockheed Martin and BAE Systems Inc, according to a statement posted online on Thursday.

Read more
18 Jul 2024 09:32

LONDON BROKER RATINGS: Berenberg cuts Babcock International to 'hold'

(Alliance News) - The following London-listed shares received analyst recommendations Thursday morning and on Wednesday:

Read more
12 Jul 2024 21:05

Germany says it won't be cowed by Russia after reported plot to kill Rheinmetall CEO

DUESSELDORF/WASHINGTON, July 12 (Reuters) - Berlin is taking reports of a plot to assassinate the chief executive of arms manufacturer Rheinmetall very seriously and will not be cowed by Russian intimidation, the German government said on Friday.

Read more
11 Jul 2024 16:19

Four European nations agree to jointly develop long-range cruise missiles

WASHINGTON, July 11 (Reuters) - France, Germany, Italy and Poland signed a letter of intent on Thursday to develop ground-launched cruise missiles with a range beyond 500 km (310 miles), aiming to fill what they say is a gap in European arsenals exposed by Russia's war in Ukraine.

Read more
11 Jul 2024 14:35

France, Germany, Italy, Poland agree to jointly develop long-range cruise missiles

WASHINGTON, July 11 (Reuters) - France, Germany, Italy and Poland on Thursday kicked off an initiative to develop ground-launched cruise missiles with a range beyond 500 kilometres to fill a gap in European arsenals that they say has been exposed by Russia's war in Ukraine.

Read more
21 Jun 2024 09:28

LONDON BROKER RATINGS: Barclays cuts Ryanair and Wizz Air

(Alliance News) - The following London-listed shares received analyst recommendations Friday morning and on Thursday:

Read more
21 Jun 2024 07:56

JPMorgan lifts BAE Systems price target, points to 'exciting' list of potential new contracts

(Sharecast News) - JPMorgan Cazenove lifted its price target on BAE Systems on Friday to 1,500p from 1,400p as it pointed to an exciting list of potential new contracts.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.