(Alliance News) - Stock prices in London were mixed at midday in London on Monday amid a lack of fresh drivers following a bumper set of central bank announcements and economic indicators last week.
Some industrial shares were benefiting after the US infrastructure bill finally passed through Congress on Friday.
The FTSE 100 was down just 0.28 of a point at 7,303.68. The FTSE 250 index was down 35.15 points, or 0.2%, at 23,561.64. The AIM All-Share index was down 0.1% at 1,236.51.
The Cboe UK 100 index was flat at 724.10. The Cboe 250 was down 0.1% at 21,033.20 and the Cboe Small Companies up 0.3% at 15,637.70.
In mainland Europe, the CAC 40 stock index in Paris was up 0.3%, but the DAX 40 in Frankfurt was down 0.1%.
"European markets have kicked off the week on a somewhat uninspiring note, with indices largely treading water off the back of a volatile week just gone," said IG Group's Josh Mahony. "However, the news that Joe Biden is on the cusp of signing off a USD1 trillion infrastructure package does provide a boost for industrial names that have largely enjoyed a strong third quarter in any case. The US looks set for a somewhat volatile start thanks to Elon Musk's latest antics, with the billionaire's decision to poll Twitter followers on whether he should sell 10% of Tesla bringing fears of a USD1.1 billion selloff in the stock."
US stock market futures were pointed mostly higher as US President Joe Biden on Saturday hailed congressional passage of his USD1.2 trillion infrastructure plan as a "monumental step forward" after months of tough negotiations.
Speaking from the White House, Biden also insisted that both houses of Congress would pass an even bigger social spending package - the "Build Back Better" plan - despite infighting between the progressive and moderate wings of his Democratic Party.
The breakthrough on infrastructure, which gave the embattled president a much-needed win, came shortly before midnight Friday when House lawmakers finally approved a Senate-passed bill by a comfortable 228 votes to 206.
Construction-related stocks Caterpillar, Deere & Co and United Rentals were up 3.7%, 1.5% and 1.1% respectively in pre-market trade in New York. London-listed Ashtead, a United Rentals peer that makes a bulk of its revenue in the US, was up 0.9%. Irish construction materials firm CRH, also active in the US, was up 1.5%.
The Dow Jones Industrial Average was called up 0.1%and the S&P 500 up 0.2%. The Nasdaq Composite was called flat, held back by Tesla.
The stock was down 5.3% in pre-market trade in New York after founder Elon Musk promised to obey the results of a Twitter poll in which followers voted for him to sell a 10% stake in the electric car maker.
By Sunday, 57.9% of those who voted had picked "yes" in Musk's poll. "I was prepared to accept either outcome," said Musk, who regularly takes to Twitter to make unexpected announcements or surprising comments. He did not specify when or how he plans to sell the shares.
Musk owned about 17% of Tesla's outstanding shares as of June 30, currently worth USD208.37 billion, according to Bloomberg. By selling 10% of his shares, he could theoretically earn just under USD21 billion.
"It is worth noting that due to the elevated trading volume that Tesla shares experience, any potential impact could be significantly mitigated if the CEO were to spread that sale across several weeks," commented Walid Koudmani, a market analyst at XTB online trading.
Musk is world's wealthiest individual, according to the Bloomberg billionaires index, with a total net worth of USD338 billion.
In the FTSE 100, oil majors were in the green, tracking spot oil prices higher. BP, Royal Dutch Shell 'A' and 'B' were up 1.1%, 1.5% and 1.6% respectively.
Brent oil was quoted at USD83.75 a barrel at midday on Monday, up sharply from USD82.82 at the close Friday.
"Energy stocks are on the rise in early trade, with crude gaining ground off the back of a volatile week just gone. While last week saw some doubts creep in for bulls, they are likely to get back in the driving seat before long, with rising demand being met by an unwillingness to ramp up output in both the US and OPEC. The US infrastructure bill promises a whole new source of demand for crude products, with many of the plans reliant upon both energy and materials originating from oil," said IG Group's Mahony.
Asset manager abrdn was up 2.8% after it confirmed it is in discussions with JC Flowers for the potential acquisition of online retail investment platform interactive investor.
The Financial Times on Saturday reported that Edinburgh-based abrdn is finalising a deal to buy Manchester-based ii for GBP1.5 billion, in a bid to deepen its direct-to-consumer business, citing people with "direct knowledge of the matter".
However, abrdn said there can be no certainty that the discussions will result in a deal. It said it will make a further announcement "as and when appropriate".
Polymetal International was up 1.5% after the gold miner said it had approved the construction of the Veduga gold project in the Krasnoyarsk region of Russia.
The company had approved a USD447 million investment in the 4 million ounce asset, based on the results of a preliminary feasibility study. First production was expected in the second quarter of 2025.
Gold stood at USD1,815.45 an ounce on Monday at midday, higher against USD1,810.85 late Friday.
Conversely, JD Sports Fashion was down 1.4%. The sportswear retailer responded to a Sunday Times report, saying it "totally refuted" any breaches in corporate governance.
The newspaper said that JD Sports had launched an investigation into who had covertly filmed Chair & Chief Executive Peter Cowgill meeting his counterpart at footwear retailer Footasylum, Barry Bown, in a possible breach of competition rules.
Last week, the UK Competition & Markets Authority ordered JD Sports to sell Footasylum, which it had acquired in 2019. JD highlighted that Cowgill has known Bown "on a business and personal basis for over 25 years".
As a result, JD said it was not unusual, "or in any way suspicious or illegitimate, for the pair to meet from time to time", including in relation to the ongoing review by the CMA of JD's acquisition of Footasylum.
JD noted it has an obligation under the terms of the interim enforcement order from the CMA to encourage key staff of the Footasylum business - which includes Bown - to remain with the business.
In the FTSE 250, Investec was the best performer, up 5.7%, after the Anglo-South African bank upgraded its interim earnings guidance, surpassing the upper ranges of its previous forecast.
Investec said it now expects adjusted earnings per share for the six months ended September 30 to range between 26.0 pence and 26.5p, up from 11.2p a year before. This was above the upper range of between 21.5p and 24p predicted late in September.
It also lifted basic earnings per share guidance to 24.8p and 25.2p, up from 20.2p and 22.7p forecast in September. In the prior year, basic EPS stood at 9.6p. Headline EPS is expected to be sharply higher at 24.5p to 24.9p, up from 9.2p previously, revised up from between 20.2p and 22.7p.
Sirius Real Estate was the worst performer FTSE 250 stock at midday, down 3.6%. The business park operator reported a stronger interim performance, with a double-digit rise in profit through gains from property revaluations and growth in revenue.
Also on Monday, the Germany-focused operator of business parks, offices and industrial complexes said it has agreed to acquire Helix Investments Ltd - which holds flexible workspace provider BizSpace Group - for GBP245 million, based on an enterprise value of GBP380 million.
The acquisition will be funded through the group's existing cash resources, an EUR75 million revolving credit facility and proceeds from a capital raise.
For the six months ended September 30, Sirius posted pretax profit at EUR78.2 million, up 26% from EUR62.2 million a year prior, partly through a higher gain on the value of investment properties at EUR49.5 million from EUR31.9 million.
The pound was quoted at USD1.3495 on Monday at midday, up from USD1.3482 at the close Friday.
The euro stood at USD1.1567, rising from USD1.1550. Against the Japanese yen, the dollar was trading at JP113.46, flat from JPY113.47.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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