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 picksNEX.L Share News (NEX)

  • There is currently no data for NEX

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 OPEN: FTSE 100 gain hindered as pound nears USD1.23

Mon, 05th Dec 2022 09:10

(Alliance News) - Stock prices in London opened flat on Monday, with the FTSE 100 held back by a strong pound, despite gains for its China-exposed listings, as Asia's largest economy eases its strict Covid measures.

The FTSE 100 index opened up 3.54 points, 0.1%, at 7,559.77. The FTSE 250 was up 15.37 points, 0.1%, at 19,378.65, but the AIM All-Share was down 0.88 points, 0.1%, at 852.44.

The Cboe UK 100 opened marginally higher at 756.23, the Cboe UK 250 was marginally lower at 16,788.62, and the Cboe Small Companies was down 0.1% at 13,044.88.

"In the UK, the main index was largely undecided in opening trade. The more recent weakening of the US dollar and some recovery in sterling has held back an index which is largely reliant on overseas earnings, such that dollar weakness reduces some of this strength on repatriation," said interactive investor's Richard Hunter.

The dollar was weaker, with sterling quoted at USD1.2295 early Monday, higher than USD1.2240 at the London equities close on Friday. The euro traded at USD1.0541, up from USD1.0478. Against the yen, the dollar was quoted at JPY135.11, down from JPY135.41.

A weaker dollar helped to drive up the price of gold, which was quoted at USD1,798.49 an ounce early Monday, higher than USD1,788.36 on Friday.

The Confederation of British Industry economists have forecast that from the highest to the lowest point in the recession, UK gross domestic product will drop by 0.7%.

The CBI estimates that GDP will drop by 0.4% in 2023, then return to growth the following year when it rises 1.6%.

It is a considerably more positive forecast than that produced by the Bank of England just a month ago, when the central bank predicted a drop of 1.5% in 2023 and a further fall of 1% in 2024.

Although slightly less "bleak" than the BoE forecast, the CBI's outlook for the decade ahead makes for "difficult reading", according to Hargreaves Lansdown's Susannah Streeter.

"The CBI warns that companies will face significant challenges through a long period of elevated inflation and stagnant growth, unless fresh investment can be unlocked. Finding the key to do that is proving a big challenge, with the UK government hesitant about bringing in further tax incentives, while some companies appear to be battening down the hatches amid global uncertainty," Streeter commented.

In European equities on Monday, the CAC 40 index in Paris opened down 0.3%, while the DAX 40 in Frankfurt was down 0.4%.

In China on Monday, the Shanghai Composite closed up 1.8%, while the Hang Seng index in Hong Kong was up 4.3%. In Tokyo, the Nikkei 225 index closed up 0.2%. The S&P/ASX 200 in Sydney closed up 0.3%. 

"Asian markets were mostly positive on continuing hopes that the Chinese authorities would dial down their pandemic restrictions, in turn allowing the economy some room to breathe and attempt to recoup some of the economic damage which has been wrought by a zero-tolerance Covid-19 policy," said ii's Hunter.

In Shanghai, authorities will scrap some testing requirements as China continues to loosen its strict zero-Covid policy following recent protests across the nation. Shanghai follows multiple cities including Beijing, Tianjin, Shenzhen and Chengdu, which all cancelled the testing requirement for public transport on Saturday.

In the FTSE 100, Vodafone added 1.9%, as it announced Chief Executive Nick Read will step down on December 31 after 20 years at the telecommunications firm and four as CEO.

Chief Financial Officer Margherita Della Valle will step up as an interim CEO, in addition to continuing her role as CFO. The board has begun a process to find a replacement CEO.

"Investors will be hoping that a change at the top at Vodafone might inject a new longer-term lease of life in the company's share price. Although any change of chief executive is unsettling, the restructuring strategy Nick Read headed up, hasn't yet reaped rewards," said HL's Streeter.

Vodafone shares are down 44% over the past four years.

Glencore rose 1.3%, as the miner reached a settlement with the Democratic Republic of Congo over alleged corruption in the country.

This covers "all present and future claims arising from alleged acts of corruption" in the period between 2007 and 2018.

Glencore International will pay the DRC USD180 million, on behalf of its Congolese-associated companies.

"This includes activities in certain group businesses that have been the subject of various investigations by, amongst others, the US Department of Justice and the DRC's National Financial Intelligence Unit and Ministry of Justice," the miner said.

Other blue-chip miners were making gains in early trading, buoyed by the positive developments in China that could signal a rebound in demand for commodities. Rio Tinto added 2.0%, Fresnillo rose 1.6%, and Anglo American was up 1.3%.

Asia-focused insurer Prudential was up 3.4%.

Meanwhile, Persimmon fell 1.6% as Jefferies cut the housebuilder's stock to 'hold' from 'buy'.

In the FTSE 250, National Express shed 0.6%, as it named James Stamp as its new chief financial officer with immediate effect.

Stamp has served as interim CFO since the beginning of November, and been with the bus operator since 2017.

China-focused investment trust Fidelity China Special Situations jumped 5.1%, on news of the easing of the country's zero-Covid measures.

On AIM, Wentworth Resources surged 20% to 30.00 pence.

The Tanzania-focused natural gas producer agreed the terms of a potential takeover by Etablissements Maurel & Prom. The offer is for 32.5p per share in cash, valuing Wentworth at around GBP61.7 million.

The offer is a premium of around 30% to the closing price of 25.0p on Friday.

Wentworth's directors consider the offer to be "fair and reasonable", and recommend its shareholders vote in favour of the takeover at the upcoming court and general meetings.

Brent oil was trading at USD86.26, flat compared to USD86.65 late Friday, as the EU embargo and price cap on Russian oil becomes effective.

Imports of Russian crude oil now are prohibited in the EU, with limited exemptions. The embargo, agreed in a package of sanctions to punish Russia for invading Ukraine, technically entered into force after adoption but allowed for a transition period for EU member states to phase in the ban.

At the same time, a price cap on seaborne Russian oil, designed to hit Kremlin revenues from energy exports, is now also in effect and limits exports to other countries at USD60 per barrel.

On Sunday, the Organization of the Petroleum Exporting Countries, led by Saudi Arabia and Russia, agreed to maintain their current output levels.

"Worries about demand being hit by the global downturn are holding crude prices back from more significant gains. OPEC+ has adopted a wait-and-see policy, before introducing any further change to its already lower production targets. This reticence isn't surprising given it's unclear how the Covid situation in China will play out," commented HL's Streeter.

In Monday's economic calendar, there are services PMI prints for the UK at 0930 GMT and the US at 1445 GMT. There are also EU retail trade figures at 1000 GMT.

By Elizabeth Winter; elizabethwinter@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

More News
12 Oct 2021 09:35

TOP NEWS: Stagecoach merger talks continue; reiterates annual guidance

TOP NEWS: Stagecoach merger talks continue; reiterates annual guidance

Read more
12 Oct 2021 07:44

LONDON MARKET PRE-OPEN: easyJet gets demand boost after UK rules eased

LONDON MARKET PRE-OPEN: easyJet gets demand boost after UK rules eased

Read more
11 Oct 2021 11:48

LIVE MARKETS-European luxury: the Q3 China question

* European shares tick down* Miners best performers, up 2.5%* China helps Asian shares edge up* U.S. bond markets shut for Columbus DayOct 11 - Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share ...

Read more
11 Oct 2021 11:32

LIVE MARKETS-Expected: a correction before Christmas

* European shares tick down* Miners best performers, up 2.5%* China helps Asian shares edge up* U.S. bond markets shut for Columbus DayOct 11 - Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share ...

Read more
11 Oct 2021 10:54

LIVE MARKETS-How to spend those 1 trillion euros

* European shares tick down* Miners best performers, up 2.5%* China helps Asian shares edge up* U.S. bond markets shut for Columbus DayOct 11 - Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share ...

Read more
28 Sep 2021 12:12

LONDON MARKET MIDDAY: Stocks slide as markets brace for US tapering

LONDON MARKET MIDDAY: Stocks slide as markets brace for US tapering

Read more
27 Sep 2021 09:31

LONDON BROKER RATINGS: Upgrades for Ferrexpo, Go-Ahead and Old Mutual

LONDON BROKER RATINGS: Upgrades for Ferrexpo, Go-Ahead and Old Mutual

Read more
21 Sep 2021 16:56

LONDON MARKET CLOSE: Europe ends higher as M&A adds impetus in London

LONDON MARKET CLOSE: Europe ends higher as M&A adds impetus in London

Read more
21 Sep 2021 12:10

LONDON MARKET MIDDAY: Stocks bounce back as markets eye US Fed meeting

LONDON MARKET MIDDAY: Stocks bounce back as markets eye US Fed meeting

Read more
21 Sep 2021 10:57

SMALL-CAP WINNERS & LOSERS: Stagecoach accelerates on merger hopes

SMALL-CAP WINNERS & LOSERS: Stagecoach accelerates on merger hopes

Read more
21 Sep 2021 09:14

UPDATE 2-FTSE 100 recovers 1% on energy, healthcare stock boost; Entain jumps

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* Kingfisher top FTSE 100 loser despite positive results* Royal Dutch Shell sells U.S. oilfield assets* Stagecoast surges on merger talks wit...

Read more
21 Sep 2021 08:58

LONDON MARKET OPEN: Pershing Square rises 6% on Universal Music debut

LONDON MARKET OPEN: Pershing Square rises 6% on Universal Music debut

Read more
21 Sep 2021 08:52

UPDATE 2-European shares recover from worst session in two months; UMG soars in debut

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* Travel, media, mining, energy stocks lead gains* German shares rebound from two-month lows* Focus on U.S. Fed, other central bank meetings*...

Read more
21 Sep 2021 08:46

TOP NEWS: National Express, Stagecoach plan merger to create bus giant

TOP NEWS: National Express, Stagecoach plan merger to create bus giant

Read more
21 Sep 2021 08:10

LONDON BRIEFING: National Express eyes cost cuts in Stagecoach merger

LONDON BRIEFING: National Express eyes cost cuts in Stagecoach merger

Read more

Make Better Investment Decisions

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.