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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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13 Feb 2019 17:11

LONDON MARKET CLOSE: Stocks Rise On US-China Trade Optimism

LONDON (Alliance News) - Stocks in London ended higher, with miners driving the FTSE 100 to a near four-month high, amid brighter prospects regarding US-China trade negotiations. Investor was US a

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4 Feb 2019 08:52

LONDON MARKET OPEN: Stocks Edge Higher; Ryanair Sounds Brexit Alarm

LONDON (Alliance News) - Stock prices in London opened marginally higher on Monday after quiet trading in Asia overnight, while Ryanair fell after posting a loss in the third and

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31 Jan 2019 17:13

LONDON MARKET CLOSE: Commodity Stocks Rise As Trump Turns Optimistic

LONDON (Alliance News) - Stocks in London ended mixed on Thursday with the energy and mining sector behind the FTSE 100's gains, as investors welcomed positive comments from the US over trade.

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30 Jan 2019 17:15

LONDON MARKET CLOSE: FTSE 100 Rallies As Commodity Stocks Drives Gains

LONDON (Alliance News) - Stocks in London ended higher on Wednesday with heavyweight commodity stocks and a weaker pound edging the FTSE 100 towards the 7,000 mark. The FTSE 100 index closed up or

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30 Jan 2019 10:48

WINNERS & LOSERS SUMMARY: Firm Commodity Prices Drive Miners Higher

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.----------FTSE 100 - up 2.5%. The Mexican gold miner was spot a

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25 Jan 2019 17:18

LONDON MARKET CLOSE: Stocks Mixed As Miners Rise But Vodafone Sinks

LONDON (Alliance News) - Stocks in London finished the week mixed as commodity miners were unable to keep the FTSE 100 in the green with Vodafone dragging the index lower.The FTSE 100 closed down

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25 Jan 2019 12:13

LONDON MARKET MIDDAY: Miners On The Up, Property Stocks Recover

LONDON (Alliance News) - The FTSE 100 was higher midday Friday, helped by rising commodity stocks, while the FTSE 250 has been helped by property firms clawing back losses made earlier in the FTSE

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25 Jan 2019 08:42

LONDON MARKET OPEN: Miners Rise; Deals Lift Fuller's And Earthport

LONDON (Alliance News) - The FTSE 100 was in the green early on Friday, helped by commodities stocks, while a number of midcap firms were suffering from broker ratings cuts. Elsewhere on the Stock

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23 Jan 2019 08:52

TOP NEWS: Antofagasta Keeps Up Record Silver Output But Gold Falters

LONDON (Alliance News) - Antofagasta PLC on Wednesday said it achieved record silver production in 2018, but gold output declined despite strong growth in the final quarter.The FTSE miner a

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23 Jan 2019 08:34

LONDON MARKET OPEN: Burberry And Fresnillo Fall As FTSE Resumes Slide

LONDON (Alliance News) - Stocks in London continued where they left off on Tuesday, with the FTSE 100 lower on Wednesday amid losses for fashion house Burberry and gold miner FTSE

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23 Jan 2019 07:40

LONDON MARKET PRE-OPEN: RPC Agrees To Be Bought Out For GBP3.3 Billion

LONDON (Alliance News) - Stock prices in London on Wednesday are set to resume Tuesday's slide, with markets in the US posting steep declines overnight and trade in Asia mixed.In early company

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22 Jan 2019 16:55

LONDON MARKET CLOSE: Oil, Mining Stocks Hit By Global Growth Jitters

LONDON (Alliance News) - The FTSE 100 tumbled on Tuesday as markets in the US and Asia got a chance to react to the International Monetary Fund's downgraded global growth forecasts.Also on a a

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16 Jan 2019 17:38

Antofagasta Non-Executive Director Hayes To Stand Down At AGM

LONDON (Alliance News) - Antofagasta PLC on Wednesday said Non-Executive Director William Hayes will not stand for re-election at the company's next annual general meeting.The meeting a

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16 Jan 2019 16:12

UK Earnings, Trading Statements Calendar - Next 7 Days

Thursday 17 January IbstockTrading StatementWhitbreadQ3 ResultsGame (at

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15 Jan 2019 17:02

LONDON MARKET CLOSE: Pound Sinks As May Braces For Likely Defeat

LONDON (Alliance News) - Stocks ended in positive territory on Tuesday, with mining stocks, Sage, and BAE Systems all among the risers.The blue-chip FTSE 100 was

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