ADVFN Morning London Market Report: Monday 10 May 2021

Share On Facebook
share on Linkedin
Print

London open

© ADVFN

London stocks were little changed in early trade on Monday despite strong gains in the mining sector, held back by a stronger pound as investors cheered the prospect of easing coronavirus restrictions.

At 0845 BST, the FTSE 100 was , while the pound was 0.6% firmer against the dollar at 1.4062. Against the euro, sterling was trading 0.7% higher at 1.1582.

Spreadex analyst Connor Campbell said: “Reports that the UK government is pushing ahead with its lockdown-easing plan – regardless of concerns over the Indian covid-19 variants currently circulating (and, in some areas, surging) – gave the pound a shot in the arm.

“From May 17th up to six people, or two households, will be able to meet indoors, while cinemas, restaurants, pubs and the like will be able to have patrons mix inside.

“This appeared to counter any concerns the currency may have had over the SNP’s renewed push for a referendum on Scottish independence and sent the pound up.”

In equity markets, miners were the standout gainers as metals prices rallied, with iron ore and copper hitting fresh record highs. Rio Tinto, BHP, Anglo American, Glencore and Antofagasta all gained.

Elsewhere, Greggs was the top performer on the FTSE 250 as it said annual profit could be similar to 2019 and was likely to materially beat board expectations after like-for-like sales returned to growth following the relaxation of Covid-19 restrictions.

Polymer maker Victrex was also in the black as it posted a decline in interim profit as the medical division was a drag on revenue, but declared a dividend.

On the downside, airlines were under the cosh, with British Airways owner IAG, easyJet and Wizz all trading lower amid disappointment that popular destinations such as Spain, France and Italy were not on the government’s green list.

 

Top 10 FTSE 100 Risers

Sponsored by
ii
Buy Sell
76.4% of retail CFD accounts lose money.
# Name Change Pct Change Cur Price
1 Rio Tinto Plc +3.58% +234.00 6,769.00
2 Bhp Group Plc +3.27% +76.50 2,414.00
3 Berkeley Group Holdings (the) Plc +2.51% +119.00 4,869.00
4 Fresnillo Plc +2.28% +20.80 931.80
5 Antofagasta Plc +2.11% +39.50 1,913.50
6 Glencore Plc +1.87% +6.05 328.80
7 Evraz Plc +1.83% +12.60 701.80
8 Barclays Plc +1.58% +2.86 184.40
9 Lloyds Banking Group Plc +1.44% +0.67 47.23
10 Anglo American Plc +1.38% +46.50 3,428.00

 

Top 10 FTSE 100 Fallers

Sponsored by
ii
Buy Sell
76.4% of retail CFD accounts lose money.
# Name Change Pct Change Cur Price
1 Easyjet Plc -2.83% -31.00 1,064.00
2 Intertek Group Plc -1.91% -118.00 6,072.00
3 International Consolidated Airlines Group S.a. -1.85% -3.95 209.25
4 Flutter Entertainment Plc -1.81% -265.00 14,360.00
5 Scottish Mortgage Investment Trust Plc -1.77% -21.50 1,193.50
6 Rightmove Plc -1.75% -10.60 596.40
7 Tui Ag -1.56% -7.00 441.20
8 Auto Trader Group Plc -1.50% -8.60 566.40
9 Compass Group Plc -1.45% -23.50 1,601.50
10 Whitbread Plc -1.28% -42.00 3,250.00

 

Europe open: Stoxx hits fresh record on economic recovery hopes

European stocks pushed further into record territory at the opening on Monday as the pound moved above $1.40 on hopes of holiday travel and reopening of economies.

The pan-European Stoxx 600 index rose 0.06%. Britain’s FTSE 100 outperformed to be 0.16% higher despite the fact that the export-heavy index normally falls when the pound rises. Investors were waiting on the next phase of reopening from the Covid-19 lockdown.

“Reports that the UK government is pushing ahead with its lockdown-easing plan – regardless of concerns over the Indian Covid-19 variants currently circulating – and, in some areas, surging – gave the pound a shot in the arm,” said Spreadex analyst Connor Campbell.

From May 17 up to six people, or two households, will be able to meet indoors, while cinemas, restaurants, pubs and will be permitted to have patrons mix inside.

In equity news, UK food-on-the-go chain Greggs topped the Stoxx, up almost 8% as the company said annual profit could be similar to 2019 and was likely to materially beat its expectations after sales returned to growth following the relaxation of Covid-19 restrictions.

Shares in Polymer maker Victrex rose as the company reported a decline in interim profit as its medical division dragged on revenue, but still declared a dividend.

 

US close: Stocks finish higher as jobless claims drop sharply

Wall Street stocks finished in positive territory on Thursday, as the Dow Jones tacked on a new fresh record following its same achievement in the previous session.

At the close, the Dow Jones Industrial Average was up 0.93% at 34,548.53, as the S&P 500 added 0.82% to 4,201.62 and the Nasdaq Composite was 0.37% firmer at 13,632.84.

The Dow closed 318.19 points higher on Thursday, piling on to the gains recorded on Wednesday as corporate earnings and comments from Treasury Secretary Janet Yellen were both in focus.

On investors’ minds on Thursday, weekly jobless claims dropped sharply in the week ended 1 May, with first-time claims hitting a new Covid-19-era low.

Initial claims came to 498,000 last week, according to the Labor Department, better than estimates for a reading of 527,000 and down from the previous week’s print of 590,000, which was upwardly revised from the initially reported 553,000.

On the other hand, continuing claims actually ticked higher, rising 37,000 to just below 3.7m, while the four-week moving average for claims edged down to 3.68m, the lowest since late March 2020.

Elsewhere on the macro front, labour market strength was reinforced by a report from Challenger, Gray & Christmas, which showed job cuts announced by US employers had fallen 25% in April to 22,913, the lowest figure seen since June 2000.

In the corporate space, PayPal reversed earlier losses to close up 1.87% after the payments processor posted a 31% quarterly jump in revenues, leading technology stocks higher in the process.

Online marketplace Etsy, meanwhile, slumped 14.57% after cautioning that sales would likely slow as the Covid-19 pandemic boost began to fade away.

Anheuser-Busch jumped 6.2% after the brewing giant reported first-quarter earnings that topped Wall Street estimates, and named North American head Michel Doukeris as its next chief executive.

Cereal and snack foods peddler Kellogg rose 7.07% after it hiked its full-year sales forecast on the back of a ‘strong’ first-quarter performance.

 

Monday newspaper round-up: Electric cars, Royal Mail, AstraZeneca

Electric cars and vans will be cheaper to produce than conventional, fossil fuel-powered vehicles by 2027, and tighter emissions regulations could put them in pole position to dominate all new car sales by the middle of the next decade, research has found. By 2026, larger vehicles such as electric sedans and SUVs will be as cheap to produce as petrol and diesel models, according to forecasts from BloombergNEF, with small cars reaching the threshold the following year. – Guardian

Royal Mail is to trial using a drone to send PPE, Covid-19 test kits and other items of mail from the UK mainland to the Scilly Isles. The company said it would be the first parcel carrier in the country to deliver mail to a UK island using an autonomous flight, which would fly out of sight of any operator during the 70-mile journey. – Guardian

Still reeling from the uncertainty surrounding Brexit, bankers and investors in Scotland are now facing the prospect of ‘Scexit’ – a split from the UK – following the Scottish National Party’s fourth victory in the Holyrood elections. In a dramatic weekend for UK politics, Nicola Sturgeon said there is “no democratic justification whatsoever for Boris Johnson or anyone else seeking to block the right of the people of Scotland to choose our future”, leaving financiers asking themselves if they are ready for a break-up that could make Brexit feel like an appetiser. – Telegraph

Elon Musk’s enthusiastic public claims about Tesla’s self-driving technology have been privately contradicted by the car company’s own employees, who told authorities that the billionaire’s comments do not “match engineering reality”. Documents from California’s Department of Motor Vehicles appear to show that a Tesla director told the regulator that the company was some way away from being fully autonomous. – Telegraph

One of the most influential investor groups in the City has intervened in the dispute over plans by AstraZeneca to raise the bonuses on offer to its boss, Pascal Soriot. The Investment Association has issued an amber-top warning, its second highest level of alert, about pay at the pharmaceutical giant that could lead to Soriot earning almost £18 million. – The Times

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210727 00:36:43