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LONDON MARKET MIDDAY: Weak Start To 2019 As Miners Slump On China Data

Wed, 02nd Jan 2019 12:01

LONDON (Alliance News) - The FTSE 100 got off to a lacklustre start to 2019 on Wednesday, with miners among the worst blue-chip fallers following further disappointing economic data from China. The pound traded lower despite the UK manufacturing sector expanding at its strongest rate in six months in December, as it was no-deal Brexit fears that drove the factory activity.The FTSE 100 was down 53.75 points, or 0.8% at 6,674.38 at midday. The FTSE 250 was up 4.32 points, broadly flat at 17,506.37. The AIM All-Share was up 0.1% at 859.41.The Cboe UK 100 was down 0.7% at 11,326.82, while the Cboe UK 250 was 0.1% higher at 15,676.12 and the Cboe UK Small Companies was up 0.5% at 10,861.75.The pound was quoted at USD1.2671 at midday, down from USD1.2782 late Monday before the New Year's Day break, despite data showing UK manufacturing sector activity hit a six-month high in December. The IHS Markit/CIPS manufacturing Purchasing Managers' Index for the UK came in at 54.2 in December, up from 53.6 in November. A score above the no-change mark of 50 indicates expansion in the sector, while one below signals contraction. Consensus forecasts had seen the reading falling to 52.5 in December.The average PMI reading during the fourth quarter of 2018 was the weakest since the third quarter of 2016 - the first survey conducted after the UK's decision to leave the EU, noted Markit.The rise in the PMI in December was mainly driven by stronger inflows of new business and a "solid" increase in stocks of purchases. Movements in both mainly reflected Brexit preparations by manufacturers and their clients, Markit said, as output also increased, but at a slower pace than seen the month before. David Cheetham, chief market analyst at XTB, said that while the data is upbeat on first read, the figures were mainly driven by pre-Brexit stockpiling. "The release is not as strong as it first appears with the higher print seemingly due to firms building stocks at a near-record pace due to concerns about a no-deal Brexit. Likewise, order books were clearly buoyed by customers taking pre-emptive measures and preparing for supply disruptions in the event of the UK leaving the EU without a deal," Cheetham said. In manufacturing data from Europe, IHS Markit's final December PMI reading for the eurozone fell to 51.4 from 51.8 in November. The score came in line with the flash estimate. In accordance with the latest trend, underlying the slowdown in overall growth was further softness in new orders, the survey showed. Separate data showed that German manufacturing activity expanded in December at the slowest pace since March 2016. The final manufacturing PMI slipped to 51.5 in December from 51.8 in November. The reading matched the flash estimate.In mainland Europe, the CAC 40 in Paris was down 1.4% but the DAX 30 in Frankfurt down just 0.1%.Markets in the US are on course for a similarly weak start to 2019, with the Dow Jones Industrial Average called down 1.4%, as was the S&P 500, while the Nasdaq was pointed 2.2% lower.Still to come in Wednesday's economic calendar is a Markit manufacturing PMI for the US at 1445 GMT. Miners were leading the declines in London, with Glencore down 5.0%, Antofagasta down 4.6%, and Anglo American down 4.4% after worrying manufacturing sector data from China. The Caixin manufacturing PMI fell to 49.7 points in December from 50.2 in November. Economists had expected it to weaken to 50.1 points, but the fall below the 50 point mark which separates contraction from expansion was worse than forecast. The print was the lowest since May 2017, when the index stood at 49.6 points. Wednesday's data comes after the official PMI, released on Monday, also slipped into contraction territory in December with a score of 49.4. Smith & Nephew was down 2.0% after JPMorgan cut its rating on the medical products business to Neutral from Overweight. International Consolidated Airlines was down 2.3%, also knocked by a broker downgrade. Citigroup cut the British Airlines owner to Sell from Neutral. Among the FTSE 100 risers, fashion and homewares retailer Next was up 1.9% ahead of Thursday's Christmas trading statement. The blue-chip clothes seller is the first to update on the festive trading period, acting as a bellwether for the holiday season.Shares in department store Debenhams were down 8.8% at midday, investors less hopeful of a Christmas miracle from the retailer. "Pictures on social media of the retailer's messy shelves and the usual widespread discounts on goods people don't really want in the first place would suggest that Debenhams continues to be stuck in a rut. A trading update expected on 10 January should give the market some answers although expectations remain low for the business to deliver good news," said Russ Mould, investment director at AJ Bell.In the FTSE 250, Energean Oil & Gas was up 5.5% after signing a gas sales and purchase agreement with IPM Beer Tuvia worth approximately USD900 million over 19 years.Under the contract, Energean will supply an estimated 5.5 billion cubic metres of gas from its Karish and Tanin floating production storage and offloading vessel, located offshore in Israel.The agreement, which will begin around 2024, adds between 265 million and 380 million cubic metres per year of gas sales to Energean. Energean estimates that the agreement will contribute around 900 million in revenue over the life of the contract.

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24 Oct 2018 12:00

LONDON MARKET MIDDAY: Stocks Recover As Global Sell-Off Eases

LONDON (Alliance News) - FTSE 100 index bounced back to over 7,000 mark at midday on Wednesday after a sharp fall in Tuesday's session, with Barclays among the markets are on the

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24 Oct 2018 09:03

LONDON MARKET OPEN: Stocks Open Higher On Asia Rebound, Airline Gains

LONDON (Alliance News) - Stock prices in London opened higher on Wednesday as Asian markets extended a global equity rebound, with airlines among the gainers.Meanwhile, miners and reported mixed with

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24 Oct 2018 07:49

TOP NEWS: Antofagasta Third Quarter Production Rises, Costs Contained

LONDON (Alliance News) - Copper miner Antofagasta PLC said Wednesday its third quarter production improved markedly as it expects further output gains in the final quarter, meanwhile the firm to a

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24 Oct 2018 07:42

LONDON MARKET PRE-OPEN: Barclays Profit Falls; Miners Cut Guidance

LONDON (Alliance News) - Stock prices in London are set to open higher on Wednesday, following a sharp decline on Tuesday, with Barclays reporting a fall in profit in the first nine

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22 Oct 2018 17:13

LONDON MARKET CLOSE: Gambling Stocks Slip; May Gives Brexit Statement

LONDON (Alliance News) - Stocks in London ended lower on Monday with gambling companies among the worst blue chip performers, while UK Prime Minister Theresa May delivers her Brexit statement to the

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22 Oct 2018 11:59

LONDON MARKET MIDDAY: FTSE 100 Led Higher By NMC, Airlines And Miners

LONDON (Alliance News) - The FTSE 100 went from strength to strength on Monday, gains accelerating as the morning session progressed, having started well following strong trading in Asia was the top

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22 Oct 2018 08:38

LONDON MARKET OPEN: Buoyant China Boosts Miners And Lifts FTSE 100

LONDON (Alliance News) - Following a bumper session for equities in China on Monday, stock prices in London started the week in the green, with NMC Health and miners among the risers.The FTSE 100 was

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17 Oct 2018 16:04

UK Earnings, Trading Statements Calendar - Next 7 Days

Thursday 18 October Domino's PizzaQ3 ResultsUnileverQ3 ResultsRWS

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12 Oct 2018 17:13

LONDON MARKET CLOSE: Miners Up As FTSE 100 Dips Below 7,000 Mark

LONDON (Alliance News) - Stocks in London ended mixed on Friday following a bruising week for the large cap FTSE 100 index, though mining stocks were the main winners on stronger commodity prices and

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12 Oct 2018 11:56

LONDON MARKET MIDDAY: Stocks In Rebound Mode As Global Sell Off Eases

LONDON (Alliance News) - Stocks in London were clawing back steep losses at midday on Friday, with miners driving gains in the FTSE 100, as the global sell off which has plagued financial markets the

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9 Oct 2018 16:59

LONDON MARKET CLOSE: Stocks Mixed As Italy Crisis And US Yields Weigh

LONDON (Alliance News) - Stocks in London ended mixed on Tuesday, although the FTSE 100 managed to move off six-month lows, as fears over the Italian debt crisis and rising US bond yields continued a

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5 Oct 2018 17:03

LONDON MARKET CLOSE: Stocks End Lower, Dragged By US Bond Yields

LONDON (Alliance News) - Stocks in London followed Europe to close lower Friday due to the relatively high US government bond yields scaring investors away from emerging markets and dragging FTSE 100

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5 Oct 2018 12:00

LONDON MARKET MIDDAY: Stocks Dragged By US Bond Yields, Intu Surges

LONDON (Alliance News) - Stocks continued to fall at midday on concerns over rising US bond yields, presenting a sizable event risk, as Intu Properties surged following news of a its

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5 Oct 2018 10:41

WINNERS & LOSERS SUMMARY: Possible Shareholder Offer Boosts Intu

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.----------FTSE 100 - down 5.1%. Goldman Sachs has cut its stock to to

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5 Oct 2018 09:25

BROKER RATINGS SUMMARY: Intu Gets Upgrades As Possible Offer Looms

LONDON (Alliance News) - The following London-listed shares received analyst recommendations Friday morning and late Thursday. ----------FTSE 100----------BERNSTEIN RAISES TO -

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