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(Alliance News) - Equity trading in London was muted on midday Thursday, with declines for oil stocks offset by share price gains for miners and aerospace firms, while traders now will look to key US data out this afternoon.
A Dutch court ruling which ordered Royal Dutch Shell to cut emissions more aggressively weighed on the oil and gas sector. Commodity prices helped blue-chip miners, while Rolls-Royce was in the green after a promising update from customer Airbus, which boosted the Paris bourse as well.
The FTSE 100 index was down 8.57 points, or 0.1%, at 7,018.36 midday Thursday.
The mid-cap FTSE 250 index was up 38.52 points, or 0.2%, at 22,678.60. The AIM All-Share index was down 2.18 points, or 0.2%, at 1,250.34.
The Cboe UK 100 index was down 0.1% at 699.47 points. The Cboe 250 was up 0.1% at 20,422.14, and the Cboe Small Companies was up 0.2% at 14,915.38.
"The FTSE 100 seems to be on a road to nowhere at the moment. Fears about inflation have subsided for the time being and even some volatility in Asian markets wasn't enough to wake the index from its slumber," AJ Bell Investment Director Russ Mould said.
"There is a relative dearth of economic data which could push markets in any particular direction in the coming days, although a second estimate of first quarter US GDP later on Thursday could renew focus on inflationary pressures, particularly if the already elevated number is revised upwards."
The US GDP estimate, latest jobless claims and a personal consumption expenditure price reading are all printed at 1330 BST. The third contains the preferred inflation measure for the US Federal Reserve.
Besides the US prints, Thursday's economic calendar has been light, though earlier data from GfK showed consumer confidence is rebounding in Germany, albeit at a slower pace than the market expected.
Sterling was quoted at USD1.4134 in London at midday on Thursday, up from USD1.4125 at the London equities close Wednesday. The euro stood at USD1.2203, down from USD1.2214.
Against the yen, the dollar was trading at JPY109.17, up from JPY109.01.
Ahead of the economic indicators, US stock index futures were lower. The Dow Jones Industrial Average was called down 0.1%, the S&P 500 0.2% lower and the Nasdaq Composite down 0.4%.
In mainland Europe, the DAX 30 in Frankfurt was 0.3% lower., but the CAC 40 in Paris was up 0.4%.
Airbus helped boost the blue-chip index in Paris, jumping 6.2%. The aerospace firm updated on its production plans.
Airbus is currently producing 40 planes of the A320 single-aisle family per month, but the company said it would increase the average rate to 45 during the last three months of this year.
"Airbus continues to expect the commercial aircraft market to recover to pre-Covid levels between 2023 and 2025, led by the single-aisle segment," the company added.
Rolls-Royce, which provides jet engines to Airbus, rose 3.7% in London. Melrose Industries, which also provides aftermarket services to the aviation industry, was 3.1% higher. Outside the FTSE 100, Senior, another supplier to the aerospace industry, was up 3.0%.
Antofagasta rose 3.2%, BHP was up 2.6% and Glencore added 2.7%. OANDA analyst Sophie Griffiths noted resource stocks were following precious metal prices higher.
IG analyst Chris Beauchamp added: "Along with a decent bounce for UK mining stocks, Aviva is putting on a good show following its strong Q1 results that contained plenty of meaty headlines for investors to absorb."
The insurer's shares were up 2.4%. Its shareholders face the tantalising prospect of "substantial" returns once the cash is received this year from a series of divestments.
Aviva Chief Executive Amanda Blanc on Thursday highlighted the company is set to generate GBP7.5 billion in proceeds from the sale of eight non-core businesses.
In addition, Aviva said it made "very good progress" in the first quarter of 2021, with record quarterly net flows to its Savings & Retirement arm.
Net flows in Savings & Retirement were up 31% year-on-year to GBP2.98 billion. Sales grew 23% to GBP6.17 billion.
Shell A shares were 1.6% lower and B shares down 1.7%. BP was down 1.3%.
A court in the Netherlands on Wednesday ordered Shell to cut its carbon emissions by 45% by 2030 compared with 2019 levels, in a landmark case brought by climate activist groups.
The ruling by The Hague District Court could set a precedent for similar cases against polluting multinationals around the world. The court ruled that the Anglo-Dutch energy giant has a duty of care to reduce emissions and its current plans are not concrete enough.
In pre-market trade on Thursday in New York, Exxon Mobil shares were down 0.6%, though Chevron was flat.
Investors rejected the responses of the US oil firms to climate change Wednesday, installing activist board members at both companies.
The dual decisions at their respective annual meetings are clear evidence that addressing climate change has moved from being an environmentalist cause to one championed by mainstream investors.
Brent oil was quoted at USD68.24 a barrel midday Thursday in London, soft from USD68.64 late Wednesday. Gold was quoted at USD1,896.03 an ounce, down from USD1,904.70.
Back in London, there was more M&A action as financial administration outsourcer Equiniti received a firm takeover offer from Siris Capital, and Morgan Stanley Infrastructure said it is mulling a takeover offer for waste management firm Augean.
Equiniti shares were up 7.4% and Augean up 18%.
Equiniti received a firm 180p per share takeover offer from Earth Private Holdings, a newly formed company owned by funds managed or advised by Siris Capital.
Equiniti shares were trading at 180.90p midday Thursday, giving it a market capitalisation of GBP664.3 million.
The takeover bid values Equiniti at GBP673 million on a fully diluted basis, Siris said. The 180p offer is a 56% premium to Equiniti's 116p share price at the close of play on February, the day before initial press reports of a potential bid for the company.
Equniti's directors backed the offer.
Morgan Stanley Infrastructure confirmed press reports that it is considering a possible takeover offer for West Yorkshire-based waste management firm Augean. MSI said there can be no certainty that an offer will be made for the AIM listing or on what terms.
Augean currently has a market capitalisation of GBP306.5 million. It noted the announcement by MSI and confirmed no approach has yet been made.
By Eric Cunha; ericcunha@alliancenews.com
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