Check out our new Timeline feature to give you the latest updates on all the stocks you follow. Clickhere to set up your Timeline.

Less Ads, More Data, More Tools Register for FREE
Sponsored Content
Don't want ads? Click here
Sponsored Content
Don't want ads? Click here

Pin to quick picksEDL.L Share News (EDL)

  • There is currently no data for EDL

Watchlists are a member only feature

Login to your account

Timelines are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

LONDON MARKET MIDDAY: Recession fear, wild bond market spook investors

Tue, 11th Oct 2022 12:21

(Alliance News) - Stock prices in were firmly in the red on Tuesday afternoon, with UK government bond market volatility among an ever-growing list of worries for investors.

The Russian war on Ukraine, inflation, interest rate hikes and concerns about what those could mean for the economy have cast a dark cloud over equities. JPMorgan Chase Chair & Chief Executive Officer Jamie Dimon on Monday warned the US economy is headed for a recession next year.

The bank will be in focus again later this week, when the US quarterly earnings season kicks off.

The FTSE 100 index fell 67.05 points, or 1.0%, to 6,892.26. The FTSE 250 lost 159.05 points, or 0.9%, to 16,966.24 and the AIM All-Share shed 6.51 points, 0.8%, at 793.12.

The Cboe UK 100 was down 1.1% at 688.51 and the Cboe UK 250 down 0.9% at 14,542.28. The Cboe Small Companies traded flat at 12,624.41.

In European on Tuesday afternoon, the CAC 40 in Paris was down 0.7%, while the DAX 40 in Frankfurt was down 0.9%.

JPMorgan's Dimon told news network CNBC that while the US economy was holding up for now, it faced several headwinds including surging inflation, Fed tightening and the Ukraine war. "These are very, very serious things, which I think are likely to push the US and the world - I mean, Europe is already in recession - and they're likely to put the US in some kind of recession six to nine months from now," he said.

On Wall Street, the S&P 500 index called down 0.8% on Tuesday. The Dow Jones Industrial Average was called down 0.7%, while the Nasdaq Composite was called 0.8% lower.

JPMorgan shares were down 0.7% in pre-market trade.

"There is growing pessimism in the markets now and with some big data points to come from the US this week, not to mention the start of earnings season with JPMorgan among those getting us underway, investors should probably brace for more volatility ahead," Oanda analyst Craig Erlam commented.

The US third-quarter earnings season kicks off this week, with numbers from PepsiCo, BlackRock, JPMorgan Chase and Wells Fargo due.

The pound traded at USD1.1062 around Monday, up from USD1.1038 late Monday and recovering after falling below the USD1.10 mark.

The Bank of England once again intervened in a bid to calm volatile bond markets, which it said are now a "material risk" to the UK's "financial stability".

The BoE said it has widened the scope of its bond-buying programme, due to end this week, to include purchases of index-linked gilts.

The central bank said the measure is a "further backstop" as it bids to restore orderly market conditions.

"Fire sales" of UK government bonds, or gilts, are a "material risk to UK financial stability", Threadneedle Street warned.

Investor confidence in UK government finances took a hit late last month following Chancellor Kwasi Kwarteg's mini-budget announcement. UK borrowing costs jumped as investors were spooked by the unfunded tax cuts announced by Kwarteng.

The UK chancellor was in focus again after the Institute for Fiscal Studies said the government will have to find spending cuts of more than GBP60 billion if he is to meet his target to get the public finances back under control.

The euro stood at USD0.9713 on Tuesday afternoon, up slightly from USD0.9700 late Monday. Against the yen, the dollar was trading at JPY145.66, soft from JPY145.72.

In London, Ferrexpo shares slumped 8.7%. Production at its operations have been "temporarily suspended" as the iron ore pellets producer in Ukraine continues to find itself caught up in the war started by Russia.

Following Russian air strikes in Ukraine on Monday, Ferrexpo said state-owned electrical infrastructure close to its operations have been damaged.

Ferrexpo did say however that it has enough stockpiles to meet expected sales volumes, though it noted this is "subject to logistics corridors remaining available to the group". None of its workforce were injured as a result of the attacks.

Ukraine was bombarded again on Tuesday. The Lviv region in western Ukraine was hit by strikes that targeted the region's energy facilities, local officials said.

Vladimir Putin on Monday threatened more "severe" attacks against Ukraine, following an explosion over the weekend that damaged a key bridge linking Russia to the Moscow-annexed Crimean peninsula.

Back among London shares, RPS fell 6.8%. A suitor decided against making a sweetened bid, ruling out the prospect of a prolonged bidding war for the professional services firm.

WSP Global said its roughly GBP591 million, or 206 pence per share, offer for the company is final.

RPS in September recommended a GBP636 million takeover offer from consultancy and engineering services firm Tetra Tech. Tetra's offer is for 222p per RPS share.

WSP on Tuesday said its offer is now final, and RPS called meetings for November 3 to approve the Tetra Tech deal.

Edenville Energy jumped 32%. It said production and sales at its Rukwa coal project in Tanzania have resumed. Repairs and upgrades to a wash plant have been made, addressing "historically poor performance".

What's more, it is also eyeing lifting pricing which would exceed a previous outlined range of USD35 to USD50 per tonne of washed coal at mine gate.

"The recommencement of production at Rukwa has coincided with a dramatic uplift in global thermal coal prices, which have risen from USD125 per tonne a year ago to USD450 per tonne in 2022, with Tanzanian coal now also being exported to Europe," Edenville said.

Brent oil was quoted at USD94.14 a barrel midday Tuesday UK time, falling from USD96.99 at the London equities close on Monday.

Recession fears hit the price of Brent, dragging London-listed oil producers lower too. Harbour Energy was among the worst performers in the FTSE 100, down 3.6%

Gold traded at USD1,665.10 an ounce midday Tuesday, down from USD1,668.45.

Still to come on Tuesday are a cluster of speeches from monetary policymakers, with European Central Bank board member Philip Lane at 1345 BST, before the Fed's Patrick Harker and Loretta Mester at 1630 BST and 1700 BST, respectively.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

More News
10 Nov 2022 15:52

TRADING UPDATES: Vertu Motors sizes up acquisition; Ondo's Hiscox deal

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Wednesday and not separately reported by Alliance News:

Read more
11 Oct 2022 11:45

Edenville Energy says upgrades to plant rectifying poor performance

(Alliance News) - Edenville Energy PLC on Tuesday said production has restarted at its Rukwa project following planned servicing and repairs on the main machinery and wash plant.

Read more
29 Sep 2022 14:52

EARNINGS UPDATES: Volvere says interim performance below expectations

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Thursday and not separately reported by Alliance News:

Read more
16 Aug 2022 15:26

Edenville signs deal with mine operator Brahma

(Sharecast News) - Edenville has signed an agreement with Brahma Energies, it announced on Tuesday, to secure production and sales of at least 4,000 tonnes of washed coal per month at its Rukwa Coal Project in Tanzania, potentially rising to at least 6,000 tonnes after two months.

Read more
16 Aug 2022 11:53

Edenville unveils new Rukwa coal mining agreement, shares fall

(Alliance News) - Edenville Energy PLC on Tuesday announced a new coal mining agreement in Tanzania which will yield a "low" sales price for Rukwa coal versus international prices.

Read more
3 Aug 2022 15:57

TRADING UPDATES: Ensilica expects annual profit ahead of expectations

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Wednesday and not separately reported by Alliance News:

Read more
27 Jul 2022 16:11

UK shareholder meetings calendar - next 7 days

Read more
5 Jul 2022 10:23

IN BRIEF: Edenville hires Noel Lyons as new chief executive officer

Edenville Energy PLC - London-based developer of Tanzania's Brownfield Rukwa coalfields - Appoints Noel Lyons as new chief executive officer, as Alistair Muir has stepped down with immediate effect. Lyons says: "Given my ongoing operational experience in Africa I believe we are well positioned to optimise the proposed expansion of Rukwa, both in terms of production rates and sales. I look forward to providing shareholders with a more comprehensive update on this in the near future."

Read more
30 Jun 2022 13:59

EARNINGS UPDATES: UK Oil & Gas and 7digital post widened losses

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Thursday and not separately reported by Alliance News:

Read more
31 May 2022 14:20

IN BRIEF: Edenville cancels coal project contract with Nextgen

Edenville Energy PLC - London-based developer of Tanzania's Brownfield Rukwa coalfields - Resumes full control of Rukwa coal project in Tanzania, terminating its contract with Nextgen Coalmine Ltd. "All mining equipment has been brought back into service by the company, whilst an additional pre-strip excavator has been added to the fleet," firm explains. Edenville is sourcing three additional trucks to scale production. Targets monthly sales of 5,000 tonnes of washed coal from the end of the third quarter of 2022. As comparison, Edenville sold 610 tonnes of washed coal over the three months between February 1 and April 30. Aims to maximise cash returns, reiterating "the attractive pricing forecast over the coming years".

Read more
31 May 2022 12:29

Edenville terminates mining deal with Nextgen at Rukwa

(Sharecast News) - Edenville Energy updated the market on the operation of its Rukwa coal project in Tanzania on Tuesday, announcing the termination of its coal mining agreement with Nextgen.

Read more
18 May 2022 17:49

Edenville in talks with NextGen to vary Tanzanian mining contract

(Alliance News) - Edenville Energy PLC on Wednesday said it is in talks with NextGen Coalmine Ltd to vary the existing mining contract the companies have.

Read more
4 May 2022 20:54

TRADING UPDATES: Residential Secure Income acquires 39 new homes

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Wednesday and not separately reported by Alliance News:

Read more
3 Feb 2022 22:31

TRADING UPDATES: Alliance Pharma to appeal; Braemar sales to rise

TRADING UPDATES: Alliance Pharma to appeal; Braemar sales to rise

Read more

Track Your Investments

Register for FREE

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.