Today's Closing Update
U.S. Shares opened higher as Irma further weakened to a post-tropical cyclone, and ahead of the highly anticipated launch of the new iPhone.
European and U.K. Shares were mixed, with gains continental stocks offset by a small decline in U.K. markets following higher than expected inflation data.
Chancellor Philip Hammond will deliver the government’s first budget of the parliament on Wednesday 22 November, the Treasury confirmed on Wednesday afternoon. Following the shake-up the Chancellor announced last year, there will now only be one fiscal budget per year, held in the autumn. “From 2018 there will be a spring statement, responding to the forecast from the OBR, but no major fiscal event,” the Treasury said.
The City regulator, the Financial Conduct Authority (FCA) has warned consumers of the dangers of investing in digital tokens issued by firms. So-called initial coin offerings can raise millions of dollars for firms and consumers can make a gain if the new crypto-currencies then go up in value. But the FCA says investors also stand to lose their entire stake in the high-risk investments. In an initial coin offering (ICO), a firm sells digital tokens, or “coins”. These are often in exchange for a more established crypto-currency such as Bitcoin or Ethereum.
UK Culture Secretary Karen Bradley said she intends to refer 21st Century Fox Inc’s £11.70bn offer for the near 61% of Sky it does not already own to regulatory authorities. Bradley, speaking in the House of Commons said that none of the representations she’d received had persuaded her to change her position, and intends to make a referral of the deal on the grounds of media plurality to the Competition & Markets Authority for a fuller investigation. She also said she was minded to refer the merger to the CMA on the grounds of “genuine commitment to broadcasting standards.”
UK inflation climbed more-than-expected in August to its joint highest level in over five years, driven by strong increase in clothing and petrol prices, and added pressure on the Bank of England rate-setters to raise interest rates amid the Brexit-fueled economic uncertainty. The consumer price index rose 2.9% year-on-year following 2.6% increase in July. Economists had forecast 2.8% inflation. The 2.9% inflation is the highest since April 2012 and was previously logged in May this year. The pound surged to a one-year high versus the US dollar following the release of the data. The currency also soared against the euro. The drop in the value of the pound since the Brexit referendum in June last year boosted import prices, which partly fueled price growth for household items.
Shire said it has been granted a fast-track designation by the US Food & Drug Administration for its treatment SHP607 in the prevention of chronic lung disease in extremely premature infants. SHP607 is currently in phase II trials, and the fast-track designation has been supported by preclinical data and phase I and II studies. This designation is designed to speed up the development and review of drugs that treat serious conditions and fill an unmet medical need. It does not, however, guarantee SHP607’s approval or the timing of any approval.
Oil prices rose for a second straight session, buoyed by the latest OPEC report that showed oil production from the cartel fell last month.
Gold prices moved lower for a second session, trading at their lowest in over a week as a prevailing tide of investors continued to take their chances on stock market upside, snubbing haven assets.
Market Close
Market |
Index |
Change |
% Change |
UK 100 |
7,400.7 |
-12.9 |
-0.2% |
UK 250 |
19,665.9 |
-28.4 |
-0.1% |
GER 30 |
12,525.1 |
+49.9 |
+0.4% |
FRA 40 |
5,210.2 |
+33.5 |
+0.7% |
U.S. 30 |
22,129.23 |
+71.86 |
+0.3% |
U.S. 500 |
2,492.9 |
+4.8 |
+0.2% |
OIL (BRENT) |
54.07 |
+0.23 |
+0.4% |
GOLD |
1,327.03 |
-0.51 |
-0.0% |
UK Risers & Fallers
Company |
Price |
Change |
% Change |
JD Sports |
373.15 |
+30.8 |
+9% |
Ashtead Group |
1759 |
+75 |
+2.5% |
Barclays |
191.35 |
+4.7 |
+2.5% |
Redrow |
580.25 |
-52.5 |
-8.3% |
Randgold Resources |
7765 |
-235 |
-2.9% |
Fresnillo |
1570 |
-37 |
-2.3% |
Reported Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
9:30am: U.K. CPI y/y |
2.6% |
2.8% |
2.9% |
9:30am: U.K. PPI Input m/m |
0.0% |
1.2% |
1.6% |
9:30am: U.K. RPI y/y |
3.6% |
3.7% |
3.9% |
Sources
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1505220484395110900.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1505221768015129700.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1505215552564962600.html
https://www.digitallook.com/news/news-and-announcements–/budget-to-be-held-on-22-november-chancellor-hammond-says–2855507.html
https://www.reuters.com/article/usa-stocks/us-stocks-wall-st-set-to-open-higher-as-irma-weakens-apple-in-focus-idUSL4N1LT3P8
http://www.marketwatch.com/story/european-stocks-push-higher-with-banks-up-as-investors-embrace-risk-2017-09-12
http://www.marketwatch.com/story/oil-prices-climb-for-2nd-day-as-opec-report-shows-production-drop-2017-09-12
http://www.marketwatch.com/story/gold-knocked-back-to-over-1-week-low-as-record-high-stocks-lure-investors-2017-09-12
http://www.bbc.co.uk/news/business-41239576