LONDON MARKET MIDDAY: Stocks mixed as Jackson Hole edges closer

(Alliance News) - Stock prices in London turned mixed at midday on Tuesday as the early boost from vaccine-related optimism began to wane on a light day of market-moving corporate and economic news.

Investors were left speculating about Friday's Jackson Hole meeting of central bankers and watching the dramatic scenes unfold at Kabul airport.

US Federal Reserve Chair Jerome Powell gives a speech at 1500 BST on Friday.

The FTSE 100 index was down 12.80 points, or 0.2%, at 7,096.42. The mid-cap FTSE 250 index was up 121.11 points, or 0.5%, at 23,862.25. The AIM All-Share index was up 0.3% at 1,270.24.

The Cboe UK 100 index was down 0.1% at 706.81. The Cboe 250 was up 0.5% at 21,719.52, and the Cboe Small Companies was up 0.3% at 15,479.81.

In mainland Europe, the CAC 40 stock index in Paris was 0.3% lower, while the DAX 30 in Frankfurt was up 0.3%.

US stock market futures were pointing higher, with the S&P 500 and Nasdaq Composite indices looking to extend their record highs.

The Dow Jones Industrial Average was called up 0.2%, the S&P 500 up 0.2%, and the Nasdaq Composite up 0.3%.

The US Food & Drug Administration on Monday fully approved the Pfizer-BioNTech Covid vaccine, a move that triggered a new wave of vaccine mandates as the Delta variant batters the country.

Around 52% of the American population is fully vaccinated, but health authorities have hit a wall of vaccine hesitant people, impeding the national campaign.

"This is a pivotal moment for our country in the fight against the pandemic," acting FDA Commissioner Janet Woodcock told reporters in a call. "This FDA approval should give added confidence that this vaccine is safe and effective. If you're not vaccinated yet, now is the time," tweeted President Joe Biden.

The US military said shortly after the announcement that it would mandate the vaccine, and a slew of private businesses and universities are expected to follow.

New York City also said it would require all its department of education employees to receive at least one dose of vaccine by September 27, without the option for regular testing instead.

Pfizer shares were up 0.4% in pre-market trade in New York, while Moderna shares were up 0.5%.

In the FTSE 100, British Airways parent International Consolidated Airlines Group was the best performer, up 3.3%, as part of a wider rally in travel stocks on vaccine optimism.

In the FTSE 250, easyJet, Wizz Air, Tui and Carnival were up 4.5%, 3.8%, 2.8% and 3.5% respectively. Irish carrier Ryanair was up 2.7%.

At the other end of the large-caps, J Sainsbury was the worst performer, down 1.7%. The supermarket stock was giving back some of Monday's strong gains after the Sunday Times reported the company was the object of private equity interest. Sainsbury's had closed up 15% on Monday.

In the FTSE 250, John Wood was down 0.5%. The energy services provider reported a decline in first-half revenue, as the negative effects from the coronavirus pandemic continued to be felt.

Revenue for the six months ended June 30 was USD3.15 billion, down 23% from USD4.09 billion in the period partially before the pandemic's outbreak a year before. The decline was attributed to the damage caused by Covid-19 and a USD74 million reduction in revenue from sold businesses.

Looking ahead, John Wood expects full-year revenue in the range of USD6.6 billion to USD6.8 billion underpinned by trading momentum and strong order book growth, with USD3.0 billion for delivery in the second half. It posted revenue of USD7.6 billion for 2020.

The company declared no interim dividend, in line with the year before, but said it was committed to reviewing the future policy as certainty over the rate of recovery in markets increases.

The pound was quoted at USD1.3729 at midday on Tuesday, up from USD1.3717 at the London equities close Monday.

The euro stood at USD1.1737, rising slightly from USD1.1734. Against the Japanese yen, the dollar was priced at JPY109.73, marginally lower from JPY109.78.

On the continent, the German economy grew a little faster than first estimated in the second quarter of 2021, figures from the Federal Statistics Office showed.

Gross domestic product rose by 1.6% in the three months to June 30 compared with the three months to March 31, after adjustment for price, seasonal and calendar variations. GDP climbed 9.4% on the year, according to the country's final reading.

Flash estimates at the end of July had shown German GDP growth of 1.5% quarter-on-quarter in the three months to June. Annually, growth had been estimated at 9.2% on a seasonally-adjusted basis. According to FXStreet, the market had expected the flash readings to be confirmed.

Brent oil was quoted at USD69.70 a barrel Tuesday at midday, sharply higher from USD68.44 late Monday. Gold was quoted at USD1,804.45 an ounce, little changed from USD1,804.37.

A slim economic calendar on Tuesday has US new home sales at 1500 BST.

By Arvind Bhunjun; arvindbhunjun@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.