Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksSTOB.L Share News (STOB)

  • There is currently no data for STOB

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

LONDON MARKET PRE-OPEN: Stocks To Suffer Amid Tight White House Race

Wed, 04th Nov 2020 07:45

(Alliance News) - Share prices in London were seen opening lower on Wednesday, as the prospect of a decisive US presidential result diminished, with the race too close to call.

Democrat Joe Biden claimed Wednesday he was winning America's knife-edge election, but President Donald Trump shot right back by predicting his own victory and accusing his opponent of trying to "steal" the vote.

"Europe is set to open to lower as caution dominates amid no clear outcome in the US elections so far. The elections are going down to the wire and that is unnerving investors," said Gain Capital analyst Fiona Cincotta.

The FTSE 100 was called 42.0 points lower at 5,744.77 points on Wednesday. The blue-chip index added 131.80 points, or 2.3%, on Tuesday, closing at 5,786.77 points.

The dollar was higher across the board.

The pound was quoted at USD1.2979 on Wednesday morning, down from USD1.3070 at the London equities close on Tuesday. The euro slipped to USD1.1638, from USD1.1729 late Tuesday. Versus the yen, the dollar fetched JPY105.00, up from JPY104.50 at the London market close on Tuesday.

"All of those expecting to see a blue wave sweep for the Democrats, have quickly seen this notion disabused as early results come in, with the Republican vote holding up fairly well, and in areas where you wouldn't normally expect," said CMC Markets UK chief market analyst Michael Hewson.

"The failure of the Democrats to capture the states of Texas and Florida, which they had high hopes of seizing control of, is likely to see the eventual outcome of this 2020 vote go to the wire, as the votes continue to get counted across the US. The Republicans appear to have also held onto Ohio."

Crucially for Trump, he is projected to edge Florida, which offers a bumper 29 electoral college votes and is one of the most coveted swing states. He is also projected to hold Texas, which offers 38 electoral college seats.

A candidate needs 270 electoral votes in the Electoral College system to win the White House. Biden was on 224 electoral votes and Trump on 213 with states still to be called.

In an address early Wednesday morning, Trump said "we did win this election", and he will go going to the Supreme Court to dispute the vote count.

Back in London, Irish paper and packaging firm Smurfit Kappa said its third-quarter performance topped expectations and mid-cap retailer Marks & Spencer Group swung to a loss in a lockdown hit first-half.

Smurfit Kappa said revenue for the nine months to September 30 came in at EUR6.31 billion, down 7.9% from the EUR6.85 billion it reported a year ago.

Earnings before interest, tax, depreciation and amortisation were 11% lower at EUR1.13 billion.

"Third-quarter performance was ahead of our expectations," Smurfit said.

Turning to M&S, revenue in the six months ended September 26 dropped 16% year-on-year to GBP4.09 billion, and the high street store chain swung to a pretax loss of GBP87.6 million from a GBP158.8 million profit.

However, the company said the 16% revenue drop outperformed its "Covid-19 planning scenario by 22.8%".

"The Food business has performed strongly despite substantial Covid headwinds during the six-month period achieving 2.7% LFL growth or 6.6% when excluding hospitality, which was largely closed during lockdown," M&S said.

Its more beleaguered Clothing & Home arm "was heavily impacted by the full Covid lockdown in the first quarter, ongoing social distancing and the priority to clear stock". Revenue there dropped 41%.

Elsewhere in London, Stobart Group posted a widened interim loss with the logistics, energy and aviation firm hit by a reduction in passenger travel at Southend Airport.

Revenue in the six months ended August dropped 29% to GBP53.2 million from GBP74.8 million, and its pretax loss ballooned to GBP77.4 million from GBP15.5 million.

"Covid-19 has created unprecedented challenges for the group," conceded Chief Executive Warwick Brady.

"Whilst passenger travel has been severely disrupted by lockdowns and evolving quarantine arrangements, London Southend Airport has benefited from uninterrupted income from its global logistics operation. At Stobart Energy, we are seeing a more consistent demand profile and have taken appropriate actions to ensure certainty of supply of waste wood for customers over the winter period to fulfil our valuable long-term supply contracts."

The company affirmed that it "remains focused on exiting Stobart Air", adding that the trading outlook at the unit "has deteriorated significantly" due to Covid-19.

"The group is seeking to exit that business in early course. To that end, it is engaging actively with parties interested in acquiring its stake and with Aer Lingus to enter a new commercial arrangement beyond December 2022 as part of this process," Stobart Group added.

In China, the Shanghai Composite index closed 0.2% higher and the Hang Seng index in Hong Kong was 0.3% lower in late trade. The Nikkei 225 in Japan ended the day 1.7% higher. Japan climbed after financial markets reopened following the Culture Day, but trade was more cautious elsewhere.

In the international economic calendar on Wednesday, there are a slew of services PMI readings due, with Germany, the eurozone, and the UK at 0855 GMT, 0900 GMT and 0930 GMT, respectively. In the afternoon, the US services PMI will be released at 1445 GMT.

A eurozone producer price index print is due at 1000 GMT, followed by the US ADP employment figures at 1315 GMT. This is an important precursor to the nonfarm payrolls data due Friday.

Already out, data showed China's services sector strengthened at the start of the fourth quarter.

Caixin's services purchasing managers' index rose to 56.8 in October from 54.8 in September. Any reading over 50.0 indicates expansion, and one below contraction.

It was the second-fastest rate of growth since August 2010, Caixin noted. Optimism over the year ahead ticked up in October to the strongest recorded since April 2012.

"The markets will remain fixed on the [election] results of each [US] state as they come in, however attention will also be turning towards the service sector PMI data. The service sector across the board has been more deeply impacted by the pandemic, with a more fragile recovery. In the UK that recovery has been showing signs of losing momentum as covid cases started rising again. The UK service sector PMI is expected to confirm October’s flash reading of 52.3," commented Gain Capital's Cincotta.

"The eurozone, which saw the second wave of covid start earlier particularly in tourist destinations such as France and Spain, is expected to report a deeper contraction in the sector that in September, with the PMI expected to fall to 46.2. The level 50 separates expansion from contraction."

England is set to go into a one-month lockdown from Thursday, but UK Prime Minister Boris Johnson must negotiate an MP vote on the matter in Westminster on Wednesday.

Gold was quoted at USD1,894.03 an ounce early on Wednesday, down from USD1,906.10 late Tuesday.

A barrel of Brent oil fetched USD40.10 early on Wednesday, up from USD39.64.

By Eric Cunha; ericcunha@alliancenews.com;

Copyright 2020 Alliance News Limited. All Rights Reserved.

More News
30 May 2018 17:23

LONDON MARKET CLOSE: Stocks End Higher, Ocado Promoted To FTSE 100

LONDON (Alliance News) - Stocks in London ended higher on Wednesday as fears surrounding political turmoil in Italy eased, with oil majors driving gains in the FTSE 100. The FTSE 100 index closed up

Read more
30 May 2018 11:55

LONDON MARKET MIDDAY: Stocks Reverse Early Losses As Oil Majors Gain

LONDON (Alliance News) - London stocks were climbed higher at midday on Wednesday, with gains for oil majors and easing fears over political uncertainty in Italy helping to reverse some early the in

Read more
30 May 2018 10:46

WINNERS & LOSERS SUMMARY: Bodycote Rises On Warmer Outlook

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.----------FTSE 100 - WINNERS----------WM up J up

Read more
30 May 2018 10:29

Cenkos Securities Quits As Stobart Broker Amid Stobart Boardroom Spat

LONDON (Alliance News) - Shares in Stobart Group Ltd slipped on Wednesday as Cenkos Securities PLC resigned as its joint broker following Stobart's recent revelation of a boardroom shares were

Read more
29 May 2018 15:32

Stobart Executive Director To Vote Against Re-Election Of Chairman

LONDON (Alliance News) - Stobart Group Ltd said Tuesday that Executive Director Andrew Tinkler will be voting against the re-election of Iain Ferguson as director and chairman at the company's

Read more
10 May 2018 12:37

Stobart Group Swings To Profit Thanks To Eddie Stobart Stake Sale

LONDON (Alliance News) - Stobart Group Ltd said Thursday it has swung to a profit for its recently ended year on strong revenue growth and an investment disposal.Stobart Group's pretax

Read more
3 May 2018 16:01

UK Earnings, Trading Statements Calendar - Next 7 Days

Friday 4 May HSBC HoldingsQ1 Results (at 0500 BST)International Consolidated Airlines Hotels Year

Read more
22 Mar 2018 15:44

LIVE MARKETS-A question of trust

* European stocks extend losses * Tech, banks hit by trade fears * Euro zone growth slows again in March * U.S. to sign tariffs on China at 1630 GMT * 22

Read more
22 Mar 2018 14:42

LIVE MARKETS-View from the buyside: stick with Europe and banks

* European stocks extend losses * Tech, banks hit by trade fears * Euro zone growth slows again in March * U.S. to sign tariffs on China at 1630 GMT * 22

Read more
22 Mar 2018 13:51

LIVE MARKETS-Is it all doom and gloom for Ted Baker after all?

* European stocks extend losses * Tech, banks hit by trade fears * Euro zone growth slows again in March * U.S. to sign tariffs on China at 1630 GMT * 22

Read more
22 Mar 2018 10:47

UPDATE: Flybe Confident As Shares Crash Land On Stobart Bid Collapse

LONDON (Alliance News) - Budget airline Flybe Group PLC said Thursday it was "highly confident" of its future prospects as an independent firm after Stobart Group it

Read more
22 Mar 2018 09:53

Flybe Shares In Crash Landing As Stobart Drops Buyout Bid

LONDON (Alliance News) - Stobart Group Ltd said Thursday it does not intend to make an offer for budget airline Flybe Group PLC after its latest proposal was rejected by the -

Read more
22 Mar 2018 08:57

BUZZ-Flybe: slumps after Stobart gives up pursuit of co

** Flybe Group shares down 25 pct in volume after Stobart says it has scrapped plans to buy the company ** Stobart says Flybe rejected a bid, and it has decided against making a higher has

Read more
22 Mar 2018 08:15

UPDATE 1-Stobart Group says no longer pursuing regional carrier Flybe

LONDON, March 22 (Reuters) - Britain's Stobart Group has scrapped plans to buy Flybe Group, it said on Thursday, adding the regional airline had a bid

Read more
22 Mar 2018 07:43

UPDATE 1-UK Stocks-Factors to watch on March 22

March 22 (Reuters) - Britain's FTSE 100 index is seen opening 22 points lower on Thursday, according to financial bookmakers, with futures down 0.4 pct ahead of the cash a

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.