(Alliance News) - Stock prices in London are set to open slightly in the red on Wednesday, despite higher chances of the US government agreeing a stimulus deal before November's election.
In early news on the London Stock Exchange, Antofagasta held its annual guidance despite a slight fall in copper output during the third-quarter. Gold miner Fresnillo "marginally reduced" its output forecast for the yellow metal. Metro Bank posted a 5% rise in assets during a "good" third quarter of the year.
IG futures indicate the FTSE 100 index is to open 8.2 points higher at 5,897.42. London's blue-chip index closed 0.1% higher, or 4.57 points at 5,889.22 on Tuesday.
Frankfurt's DAX 30 index and the CAC 40 in Paris are seen opening 0.3% higher.
The pound was quoted at USD1.2993 on Wednesday morning, firm from USD1.2958 at the London equities close Tuesday.
In early UK economic data, consumer prices climbed 0.4% monthly in September, swinging from a 0.4% decline in August. FXStreet had put the consensus forecast at a 0.5% monthly rise in September, however.
Annual growth was in line with market forecasts, however. Data from the Office of National Statistics showed a 0.5% increase in September, an uptick from the 0.2% growth in August.
The euro stood at USD1.1856 early Wednesday, improved from USD1.1825 late Tuesday.
Blue-chip miner Antofagasta said copper production in the third quarter of 2020 came in 4.6% lower quarter-on-quarter at 169,600 tonnes. The company said it lost on output due to "due to major maintenance work" at its Los Pelambres mine in Chile.
For the nine-month period, output was in line with forecasts at 541,300 tonnes, though down 7.3% annually.
Meanwhile gold output fell 17% quarter-on-quarter but molybdenum production was up 9.7%.
"Copper production guidance for 2020 is unchanged at the lower end of the original 725-755,000 tonnes range," Antofagasta said, adding that government-imposed virus restrictions in Chile are easing.
Fresnillo on the other hand, said it has "marginally reduced our full-year guidance for gold" as working restrictions due to the virus at its Herradura mine in Mexico have hurt production.
Gold output fell 6.3% quarter-on-quarter to 172,718 ounces in the period to September. Total silver fell 2.3% to 13.3 million ounces. Elsewhere, lead output fell 6.4% and zinc dropped 1.5%.
Fresnillo now expects annual gold production in the range of 745,000 to 775,000 ounces. Its previous guidance range was between 785,000 and 815,000 ounces.
Among the mid-caps, William Hill, the object of an agreed GBP2.9 billion takeover from US casino giant Caesars, said its trading in the 13 weeks to September 29 was "robust".
With the live sporting calendar getting busier, group net revenue fell just 9% annually, compared to the 32% plunge seen in the first half.
Online net revenue improved 4% in the third quarter, and the retail like-for-like fall eased to 2% from a sharp 49% decline in the lockdown hit first-half.
In the US, net revenue was 10% higher.
Midcap lender Metro Bank said activity levels are continuing to "gradually recover".
"In a challenging environment, Metro Bank has delivered a good performance with loan growth reflecting our support for government-backed lending schemes," Chief Executive Officer Daniel Frumkin said.
Assets rose 5% annually in the third quarter ended September to GBP22.14 billion and loans grew 1% to GBP15.09 billion. Deposits were up 10% to GBP15.62 billion.
Its CET1 ratio "remains materially in excess of regulatory minima" at 20.2%, the company said.
In China, the Shanghai Composite was down 0.5% on Wednesday afternoon, but the Hang Seng Index in Hong Kong rose 0.8%. Tokyo's Nikkei 225 was up 0.4% in late trade.
Wall Street closed in the green on Tuesday. The Dow Jones Industrial Average rose 0.4%, the S&P 500 climbed 0.5% and the tech-heavy Nasdaq Composite climbed 0.3%.
Against the yen, the dollar was trading at JPY105.30, down from JPY105.57 at the London equities close on Tuesday.
US House Speaker Nancy Pelosi said on Bloomberg TV that legislators are starting to commit the measure to paper and she is optimistic it can win bipartisan support.
Whether policymakers can complete the negotiations in time for Congress to approve the package before the November 3 presidential election - less than two weeks away - remains a question mark.
"Stock markets are cautiously upbeat that a stimulus package can be agreed in the U.S. before the November 3 election – but even if it does happen, it's likely to be a 'short-lived sticking plaster' that masks the major long-term issue: unemployment," cautioned Nigel Green, chief executive officer of financial advisors deVere Group.
The bill's prospects got a boost after Senate Majority Leader Mitch McConnell, who repeatedly signalled that he would not support a massive package, said he would bring the measure to the Senate floor for a vote.
"If a presidentially-supported bill clears the House, at some point we'll bring it to the floor, yes," McConnell told reporters.
Against the yen, the dollar was trading at JPY105.24down from JPY105.57 at the London equities close on Tuesday.
Brent oil was quoted at USD42.74 a barrel, up from USD42.48 at the London market close on Tuesday.
Gold fetched USD1,917.73 an ounce on Wednesday morning, up from USD1,908.45.
By Eric Cunha; ericcunha@alliancenews.com
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