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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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LONDON MARKET OPEN: Miners Struggle Amid Ongoing US-China Trade Woes

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TOP NEWS: Antofagasta Costs To Continue To Fall After Strong Quarter

(Alliance News) - Chilean copper miner Antofagasta PLC on Wednesday held annual production guidance after a "strong" copper performance in the second quarter of 2019.Production in

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LONDON MARKET PRE-OPEN: Aston Martin Cuts Guidance On Tough Backdrop

(Alliance News) - Stocks in London are on course for a hesitant start on Wednesday following some solid gains in the previous session, with US-China trade talk newsflow providing some support.In a

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LONDON MARKET CLOSE: Stocks Higher As Investors Look For US Rate Cut

(Alliance News) - Stocks in London ended higher on Friday as dovish remarks from a key Federal Reserve official boosted investor sentiment.Central banks should move quickly to address economic are

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LONDON MARKET MIDDAY: Stocks Mixed As US Rate Cut Expectations Rise

(Alliance News) - London shares were mixed at midday on Friday with the FTSE 100 hindered by the rising pound, as investors digested comments from the US Federal Reserve.Central banks should move

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LONDON MARKET OPEN: Acacia Mining Jumps On Barrick Gold Agreement

(Alliance News) - Stocks opened up in the green in London on Friday, with investor sentiment worldwide boosted by doveish comments from US central bankers on Thursday.On the London Stock Acacia on

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LONDON MARKET CLOSE: FTSE Rises On Weak Pound And Strong Miners

(Alliance News) - Stocks in London ended in the green Monday with the FTSE 100 enjoying a boost from miners and a weaker pound. The large-cap FTSE 100 index closed 25.75 points higher, or 0.3%, at

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LONDON MARKET MIDDAY: Stocks Up As Investors Shrug Off China GDP Data

(Alliance News) - Stock prices were higher in London at midday on Monday with investors unperturbed by weakened economic growth in China, as Citigroup is set to initiate earnings

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WINNERS & LOSERS SUMMARY: Sports Direct Sinks On Annual Results Delay

(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.----------FTSE 100 - up 4.3%. An international tribunal has ordered to to

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LONDON MARKET OPEN: House Of Fraser Woes Continue For Sports Direct

(Alliance News) - Stock prices in London opened higher on Monday with heavyweight miners among the blue-chip risers, while among mid-caps Sports Direct fell sharply after delaying

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TOP NEWS: Antofagasta's Tethyan Copper Wins Case Against Pakistan

(Alliance News) - An international tribunal has ordered Pakistan to pay almost USD6 billion to a joint venture partly owned by Antofagasta PLC, the company said Monday.The USD5.84 billion a

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5 Jul 2019 17:07

LONDON MARKET CLOSE: Strong US Jobs Report Dim Interest Rate Cut Hopes

(Alliance News) - Stocks in London ended lower on Friday as a stellar jobs report from the US cooled hopes that the Federal Reserve will cut interest rates at its upcoming monetary policy meeting

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LONDON MARKET MIDDAY: Housebuilders Hurt By Slip In UK House Prices

(Alliance News) - Stocks continued to trade mostly lower at midday on Friday, as market focus remained on the US jobs report later in the day.Holding back the FTSE 100 were losses for and miners,

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