(Alliance News) - Markets were rallying early Tuesday on tentative signs of a slowdown in the mounting death toll from the Covid-19 health crisis.
However, the news in the UK was more disquieting, as Prime Minister Boris Johnson was moved into intensive care as he battles the disease.
The pandemic's relentless death march across the planet has already claimed more than 73,000 victims out of 1.32 million confirmed cases, with warnings that much worse is yet to come.
A record new surge of 833 deaths in France and a jump in the Italian death toll on Monday doused tentative hopes of a beginning to the end of the agony in European hotspots.
And the US recorded 1,150 deaths over 24 hours, Johns Hopkins University said.
However, glimmers of hope flickered in the daily diet of deadly statistics, with US President Donald Trump tweeting there was "light at the end of the tunnel".
In New York state, the US epicentre of the crisis, the rate of growth in the death toll appeared to be slowing, although state Governor Andrew Cuomo warned that "now is not the time to be lax".
In China, where the virus originated late last year, there were no new deaths reported for the first time.
But amid fears of a second wave in Asia, Japanese Prime Minister Shinzo Abe was expected to declare a state of emergency later Tuesday as cases spike, especially in Tokyo.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 2.9% at 5,741.84
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Hang Seng: up 1.5% at 24,105.59
Nikkei 225: closed up 2.0% at 18,950.18
DJIA: closed up 1,627.46 points, 7.7%, at 22,679.99
S&P 500: closed up 7.0% at 2,663.68
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GBP: unchanged at USD1.2291 (USD1.2292)
EUR: up at USD1.0834 (USD1.0810)
Gold: up at USD1,659.56 per ounce (USD1,645.22)
Oil (Brent): up at USD33.28 a barrel (USD32.26)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Tuesday's Key Economic Events still to come
0830 BST UK Halifax house price index
1500 EDT US consumer credit
1630 EDT US API weekly statistical bulletin
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Dominic Raab will take charge of the UK government's response to the coronavirus crisis after the prime minister was transferred to intensive care. Johnson was admitted to intensive care on Monday after his Covid-19 symptoms worsened during the afternoon. The Conservative Party leader ceded control "where necessary" to Foreign Secretary & First Secretary of State Raab, who will deputise for the PM. Raab's first job as stand-in PM on Tuesday will be to lead the Government's emergency daily coronavirus "war Cabinet" meeting with senior colleagues and the UK's chief medical officer, Chris Whitty, and chief scientific adviser, Patrick Vallance. Johnson was moved to intensive care at about 7pm on Monday and was understood to be conscious but moved as a precaution should he require a ventilator. The 55-year-old had been admitted to St Thomas' Hospital in central London on Sunday evening after testing positive for coronavirus 10 days previously.
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EU finance ministers are under pressure to deliver proposals for further fiscal measures to counter the economic crisis triggered by the Covid-19 pandemic, as they head into talks on Tuesday. On the table is a "safety net" worth half a trillion euros, according to eurogroup President Mario Centeno. The senior eurozone official believes there is a broad consensus for a trio of measures. First up for consideration is a precautionary credit line from the European Stability Mechanism, which is the eurozone's bailout fund, in case individual countries experience difficulties raising funds to deal with the fallout from the pandemic on financial markets. Also under discussion would be a guarantee fund from the European Investment Bank for business liquidity and EU support, which would pay the wages of workers who would otherwise be laid off by struggling firms. More controversial is the question of whether jointly issued EU bonds - so-called coronabonds - are necessary to overcome the major economic contraction anticipated in the EU this year.
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BROKER RATING CHANGES
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LIBERUM RAISES DIAGEO TO 'BUY' (HOLD) - PRICE TARGET 3100 (2800) PENCE
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HSBC CUTS FERGUSON TO 'HOLD' ('BUY') - TARGET 5000 (8100) PENCE
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RBC CUTS CENTRICA TO 'UNDERPERFORM' ('SECTOR PERFORM') - TARGET 33 (85) PENCE
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UBS CUTS CENTRICA TO 'NEUTRAL' ('BUY') - TARGET 30 (105) PENCE
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UBS RAISES NATIONAL GRID TO 'BUY' (NEUTRAL) - PRICE TARGET 960 PENCE
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COMPANIES - FTSE 250
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Contracts-for-difference trading provider Plus500 reported an "exceptional" first-quarter performance amid significantly increased levels of customer trading activity, with strong performance across all key financial metrics. For the quarter ended March 31, revenue skyrocketed to USD316.6 million from USD53.9 million in the first quarter of 2019. In addition, new customers rose to 82,951 from 21,306 last year. Plus500 said the first days of the second quarter have seen continued heightened levels of volatility, but acknowledged that it is difficult to forecast whether this would persist. "As a result of the exceptional first-quarter performance, revenue and profitability for the full year are expected to be substantially ahead of current consensus expectations. However, as we remain at an early stage in the financial year, and there are global markets uncertainties as well as ongoing regulatory changes, it remains difficult to predict the outcome for the full year," said Chief Executive Asaf Elimelech.
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Cineworld Group said every effort is being made to protect the business from the effect of cinema closures, with the UK and elsewhere still under lockdown. In addition, Cineworld said it would "monitor progress" of its proposed acquisition of Canadian peer Cineplex. The movie theatre operator highlighted that its entire estate of 787 cinemas spanning 10 countries has been closed as a result of Covid-19. Cineworld said cost-saving efforts include discussions with landlords, film studios and major suppliers, as well as curtailing all capital expenditure not immediately necessary. Cineworld also has decided to suspend the payment of the 2019 fourth-quarter dividend of 4.25 cents per share and upcoming 2020 quarterly dividends. The company said it will keep this position under review.
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WH Smith said it has raised GBP165.9 million via a share placing. The retailer placed 15.6 million shares at 1,050 pence each, which represents 13.7% of its entire share capital. The placing price represents a discount of 4.0% to the closing share price of 1,094p on Monday.
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Tuesday's Shareholder Meetings
Law Debenture
Tex Holdings
Polar Capital Global Financials Trust
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By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
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