(Alliance News) - A flight to safety by investors after a weekend of loud sabre rattling by the US and Iran sent the Brent oil price above USD70 a barrel early Monday, its highest level since May.
Stock markets were lower, while the dollar and gold also were benefiting from the decidedly risk-off mood.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called down 0.5% at 7,582.00
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Hang Seng: down 0.9% at 28,188.83
Nikkei 225: closed down 1.9% at 23,204.86
DJIA: closed down 233.92 points, 0.8%, at 28,634.88
S&P 500: closed down 0.7% at 3,234.85
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GBP: down at USD1.3079 (USD1.3092)
EUR: down at USD1.1162 (USD1.1177)
Gold: up at USD1,572.10 per ounce (USD1,549.40)
Oil (Brent): up at USD70.00 a barrel (USD68.11)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Monday's Key Economic Events still to come
0930 GMT UK CIPS-Markit services purchasing managers' index
0930 GMT UK official holdings of international reserves
0955 CET Germany services PMI
1000 CET EU eurozone services PMI
1100 CET EU producer price index
0945 EST US services PMI
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UK Prime Minister Boris Johnson is to assemble key ministers to discuss the spiralling crisis in the Middle East after the US's assassination of Iran's top military leader. The prime minister is also likely to continue high-stakes diplomatic discussions with world leaders on Monday over the Donald Trump-ordered drone strike on General Qassem Soleimani. After speaking to the US President on Sunday, Johnson broke his silence to say the UK "will not lament" the death of the leader who he said was "a threat to all our interests". The PM urged de-escalation from all sides, saying that calls for reprisals "will simply lead to more violence in the region and they are in no one's interest" in the wake of the killing in Baghdad on Friday.
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The UK Labour party's ruling National Executive Committee is to decide on the campaign timetable and other key elements for the election of Jeremy Corbyn's successor. Other factors that could potentially affect the outcome, such as who is eligible to vote, will also be ruled on during the meeting expected to be attended by the outgoing leader in London on Monday.
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New car sales in the UK sunk to a six-year low in 2019 due to low consumer confidence and uncertainty over the treatment of diesel vehicles, the automotive industry has said. Preliminary figures released by trade body the Society of Motor Manufacturers & Traders show 2.3 million new cars were registered in the UK in 2019, down 2.3% on the previous 12 months. It is the third consecutive year of decline and is the lowest annual total since 2013.
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Ireland's services sector remained in growth in December, survey data from AIB and IHS Markit showed on Monday, with optimism also reaching a 17-month high, helped by subsiding Brexit worries. The AIB purchasing managers' index for services expanded at its fastest pace since June, coming in at 55.9 points in December, improved from 53.7 in November and well above the 50.0 mark that separates growth from decline. The services business activity index has been in a sequence of uninterrupted growth since August 2012, AIB noted. Output in the private sector as a whole rose to a six-month high in December, with the composite output index climbing to 53.0 from 52.0 in November. Released on Thursday last week, the AIB manufacturing PMI came in at 49.5 in December, down from 49.7 the month before.
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Reserve troops were deployed to fire-ravaged regions across three Australian states on Monday after a torrid weekend that turned swathes of land into smouldering, blackened hellscapes. The bushfires have now destroyed an area the size of Ireland, according to official figures, and authorities warned the months-long crisis is not over as another heatwave looms. Firefighters joined by fresh teams from the US and Canada were taking advantage of rainy and cooler conditions to tackle out-of-control blazes ahead of soaring temperatures forecast later this week.
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BROKER RATING CHANGES
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DEUTSCHE BANK CUTS ST JAMES'S PLACE TO 'HOLD' (BUY) - TARGET 1220 (1190) PENCE
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JPMORGAN CUTS HIKMA PHARMACEUTICALS TO 'UNDERWEIGHT' ('NEUTRAL') - TARGET 1850 (1800) PENCE
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JEFFERIES CUTS PAGEGROUP TO 'HOLD' ('BUY') - TARGET 555 (540) PENCE
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COMPANIES - FTSE 100
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AstraZeneca said the US Food & Drug Administration granted the company a priority review for its Farxiga heart failure drug. AstraZeneca said the FDA accepted a supplemental New Drug Application for Farxiga scheduled for the second quarter of 2020. In addition, AstraZeneca said its drug to treat hyperkalaemia had been approved in China after a positive clinical trial.
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Compass said Paul Walsh has decided to step down as chair to focus on "his other business interests", but will remain with the company until a successor is in place. "It has been a privilege to serve for the last 6 years as chairman of Compass, which is a world-class business and a true British success story on the global stage. We have a strong and well-established chief executive in place, and I will work to ensure a seamless transition to my successor as chairman," Walsh said.
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COMPANIES - FTSE 250
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Plus500 said it expect to report revenue and earnings before interest, tax, depreciation and amortisation for 2019 of USD354 million and USD190 million, respectively. For 2018, Plus500 reported revenue and EBITDA of USD720.4 million and USD506 million respectively. Back at the start of last year, Plus500 had said 2019 earnings for would be materially lower than analyst expectations due to tighter European regulation of the CFDs it sells to retail investors. The company said it was pleased with the performance which reflects "a much improved second half compared to the first half". Chief Executive Officer Asaf Elimelech said: "We finished the year in good financial and operational shape following a period of change for the industry, which has provided a more certain regulatory outlook for Plus500. I am encouraged by the momentum we have shown in the second half, reflecting continued optimisation of our marketing spend, enhancements to our customer service, and improvements in our proprietary technology platform. Looking to 2020 we are confident of the prospects for the group as we focus on further strengthening our customer offering and market positions."
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COMPANIES - INTERNATIONAL
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Former Nissan Motor boss Carlos Ghosn will give a hotly awaited press conference in Lebanon on Wednesday, his spokesman said, offering clarity on his recent flight from Japan. Since arriving in his native Lebanon after skipping bail in Japan almost a week ago, the 65-year-old businessman has given few media statements. The circumstances of his flight from Japan, where he was under strict house arrest facing charges of financial misconduct, remain unclear. The press conference will be held in Beirut on January 8 at 1500 local time, his spokesman told AFP without giving further details.
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Monday's Shareholder Meetings
KEFI Minerals
Open Orphan (re hVIVO reverse takeover)
Aura Energy (re board changes)
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By Tom Waite; thomaslwaite@alliancenews.com
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