(Alliance News) - Stocks in London are expected to rise further on a quiet Thursday between holidays, as hopes for US interest rate cuts next year stay strong.
"Wednesday was yet another day of joy and euphoria for the Federal Reserve doves, and another day of sell-off for the US dollar," said Swissquote Bank's Ipek Ozkardeskaya.
Another reason for market optimism is the easing of shipping disruption around the Red Sea, which caused oil prices to retreat slightly.
French shipping company CMA-CGM has resumed some transit through the Red Sea, days after Danish group Maersk announced it would return as a US-led naval coalition is now policing the maritime route against Yemeni rebel attacks.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called up 18.8 points, 0.2%, at 7,743.75
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Hang Seng: up 2.6% at 17,052.79
Nikkei 225: closed down 0.4% at 33,539.62
S&P/ASX 200: closed up 0.7% at 7,614.30
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DJIA: closed up 0.3%, at 37,656.52
S&P 500: closed up 0.1% at 4,781.58
Nasdaq Composite: closed up 0.2% at 15,099.18
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EUR: flat at USD1.1114 (USD1.1115)
GBP: up at USD1.2808 (USD1.2797)
USD: down at JPY141.10 (JPY141.88)
Gold: up at USD2,086.34 per ounce (USD2,080.29)
Oil (Brent): down at USD79.75 a barrel (USD80.15)
(changes since previous London equities close)
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ECONOMICS
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Thursday's key economic events still to come:
08:30 EST US economic indicators report
08:30 EST US unemployment insurance weekly claims report
10:00 EST US home sales index
16:30 EST US federal discount window borrowings
16:30 EST US foreign central bank holdings
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ECONOMIC NEWS
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Storm Gerrit has wreaked havoc on the UK travel network and left thousands of homes without power. Parts of Scotland experienced significant heavy snow with Scottish & Southern Electricity Networks saying workers had been dealing with wind speeds of 80mph in some coastal areas as they worked to reconnect customers. High winds and heavy rain and snow damaged electricity networks across Scotland as fallen trees, branches and other debris brought down power lines while there was damage to property by strong gusts in Greater Manchester. SSEN said power had been restored to 25,000 properties with a further 16,000 homes entering Thursday without power.
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COMPANY NEWS
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Corcel updated on the drilling results for the Tobias-14 well in the onshore Block KON-11 in Angola, where it has a 20% working interest. The well encountered a full Binga resrvoir section with identical zones as seen in the previous TO-13 well, with oil showing through. Corcel and operator Sonangol believe the results "confirm the ability to reactivate production through an early production system and imply significant hydrocarbon potential remaining". Corcel Executive Chair Antoine Karam commented: "The encouraging results of the TO-14 well constitute a significant milestone toward development of an EPS and providing line of sight to near-term revenue generation for Corcel."
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CBD products company Chill Brands said revenue jumped to GBP83,393 in the six months to September 30 from just GBP19,610 a year before. "This reflects initial sales of the company's vape products, commissions earned on products sold by third-party brands on the Chill.com website, and continued sales of certain legacy products including CBD oral chew pouches," the company explained. Pretax loss for the period narrowed to GBP1.6 million from GBP2.2 million. Looking ahead, the company expects further progress, with its products now in hundreds of independent stores and having secured listings with major US and UK retail chains.
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Zanaga Iron Ore Co said it has signed a memorandum of understanding with China Machinery Engineering Corp pertaining to hydroelectric power solutions for the Zanaga iron ore project in the Republic of Congo, and "associated funding of such power projects". The iron ore exploration and development company also updated on the timing of its feasibility study updated process alongside its Chinese engineering, procurement & construction partner. The initial review and recosting phase of the 2014 FS is now complete, which indicate potential cost reductions compared to the 2014 study. The second market enquiry and financial modelling phase is now underway and will extend into the first quarter of next year.
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Codelco, a Chilean state-owned company that is one of the world's top copper producers, on Wednesday announced an "unprecedented" alliance with private Chilean mining firm SQM, aiming to nearly double lithium extraction in the Atacama desert. The two companies will partner from 2025 to 2060, working in the desert to extract 300,000 tons per year of lithium, used to manufacture electric car batteries, as well as those in cell phones and other electronics. In 2022, SQM, whose full name is Sociedad Quimica y Minr de Chile SA, extracted 168,000 tons of lithium there. Codelco accounts for about eight percent of the global copper supply while SQM is a large lithium exploration company.
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By Elizabeth Winter, Alliance News deputy news editor
Comments and questions to newsroom@alliancenews.com
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Zanaga Iron (ZIOC)
Corcel (CRCL)
Chill Brands (CHLL)