Today's Closing Update
U.S. shares climbed, as the market’s recent upward bias appeared to return after increased volatility last week, although more pronounced gains from near-record levels may be hard to achieve amid continued political uncertainty.
European and U.K. shares European shares were subdued as investors awaited developments at a Eurogroup meeting on Greece later in the day, but Britain’s main indices re-approached last week’s record highs.
Theresa May’s Conservative party has been forced into a climbdown on a controversial manifesto promise known as the ‘dementia tax’ following sharp criticism of the party’s social care policy. May has now said there will be an “absolute limit” on the increase in social care costs for older citizens, during a campaign event for the Welsh Conservatives. May did not give further details on the plan to introduce the cap or how much it would be. Her suggestion that opposition Labour Party leader Jeremy Corbyn had made “fake claims” that some people would lose their homes under the policy were also found to be incorrect when the Guardian revealed that the manifesto carried no limit on how much people could end up paying for their care in old age.
The Competition and Markets Authority has opened an investigation into the planned £11bn merger of Standard Life and Aberdeen Asset Management. The regulator said it wanted to determine if the deal would result in a “substantial lessening of competition”. The two companies agreed the terms of the merger, which will create the UK’s biggest asset manager, in March. If it goes ahead, Aberdeen shareholders will own 33.3% and Standard Life shareholders 66.7% of the merged firm. The two companies have a combined worldwide workforce of about 9,000 people. It is expected that about 800 jobs will go in a three-year integration period.
GlaxoSmithKline said it has presented data from an analysis of its phase IIIb study of Nucala in severe asthma, which showed it consistently improved health-related quality of life and lung function. Additionally, the data also showed an associated between increasing lung function improvement and increasing eosinophil levels. Eosinophils are a type of white blood cell known to cause inflammation in the lungs. The data was presented at the American Thoracic Society conference in Washington.
Invesco Perpetual Enhanced Income said it generated a positive return amid a good market for high-yield bonds in its first financial half, but warned the bond market may see a correction soon. The bonds-focused investment company reported a net asset value total return of 5.5% for the six months ended March. Its net asset value per share at the end of the period stood at 76.1p, up 2.1% from 74.5p at September 30th, with overall net assets rising to £108.1m from £100m over the period. The company issued 7.9m shares in the period at an average price of 77.4p each.
Schiehallion oilfield off Shetland in the North Sea has begun producing oil for BP and partners including Shell for the first time since it was shut down for refurbishment in 2013. BP said the field, which is being tapped again as part of the $4.4bn Quad 204 investment project, could generate around 450m barrels of crude oil for the companies up to at least 2035 thanks to new drilling technology.
Rio Tinto has announced a new bond buyback of up to $2.5bn to further reduce gross debt. The company has issued a redemption notice for around $1.72bn of its 2019 and 2020 US dollar-denominated notes and commenced cash tender offers to purchase up to approximately $781m of its five 2021, 2022 and 2025 US dollar-denominated notes.
House prices rose for the fifth month in a row in May, according to a new survey that runs counter to recent industry research based on sale completions. Rightmove found that new homes coming onto the market were selling for an average 1.2% more than the month before, when there had been a 1.1% monthly rise but was slower than the 1.3% and 2.0% in March and February.
Swiss and US chemicals groups Clariant and Huntsman Corp have agreed to a merger of equals that would create a company worth around $20bn. The deal will create a specialty chemical company with sales of around $13.2bn and an adjusted EBITDA of $2.3bn. Under the terms of the transaction, which is due to close by the end of the year, Clariant shareholders will own around 52% of the new entity, while Huntsman investors will own the rest, based on their current values.
Oil Prices swung from one-month highs to session lows in volatile trading on as investors awaited a signal on output policy from OPEC’s two biggest producers.
Gold prices firmed, looking to add to the their largest weekly gain since mid-April, as declines in the U.S. dollar index and a modest rise in equities helped to support bids for precious metals.
Market Close
Market |
Index |
Change |
% Change |
UK 100 |
7,496.3 |
+25.6 |
+0.3% |
UK 250 |
19,912.6 |
+99.8 |
+0.5% |
GER 30 |
12,622.7 |
-16.0 |
-0.1% |
FRA 40 |
5,323.3 |
-1.1 |
-0.0% |
U.S. 30 |
20,872.35 |
+67.51 |
+0.3% |
U.S. 500 |
2,390.0 |
+8.2 |
+0.4% |
OIL (BRENT) |
53.91 |
+0.30 |
+0.6% |
GOLD |
1,260.13 |
+4.20 |
+0.3% |
UK Risers & Fallers
Company |
Price |
Change |
% Change |
Ferrexpo |
169.6 |
+6.9 |
+4.2% |
Marks and Spencers |
395.5 |
+10.6 |
+2.8% |
Burberry |
1756 |
+42 |
+2.5% |
Hikma Pharmaceuticals |
1656 |
-80 |
-4.6% |
Micro Focus |
2379 |
-93 |
-3.8% |
Senior |
230 |
-6.8 |
-2.9% |
Reported Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
Eurogroup Meetings |
– |
– |
– |
2:00pm: U.S. FOMC Member Harker Speaks |
– |
– |
– |
6:00pm: Prime Minister May speaks |
– |
– |
– |
Sources
http://www.marketwatch.com/story/us-stocks-poised-for-a-steady-open-as-investors-watch-for-the-next-catalyst-2017-05-22
http://www.nasdaq.com/article/european-stocks-subdued-miners-boost-ftse-100-cm792551
http://www.bbc.co.uk/news/business-39996883
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1495461558839532300.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1495460142089499900.html
https://www.digitallook.com/news/news-and-announcements/bp-restarts-north-sea-production-at-schiehallion–2683793.html
https://www.digitallook.com/news/news-and-announcements/rio-tinto-to-cut-debt-with-25bn-bond-buyback–2683654.html
https://www.digitallook.com/news/news-and-announcements–/house-prices-are-not-falling-finds-rightmove–2682541.html
https://www.digitallook.com/news/political-news/conservatives-in-humiliating-dementia-tax-u-turn-after-google-ad-criticism–2682970.html
https://www.digitallook.com/news/m-a/huntsman-and-clariant-agree-20bn-merger–2682563.html
http://www.cnbc.com/2017/05/22/oil-prices-whipsaw-iraq-seen-as-potential-holdout-on-opec-output-deal.html
http://www.marketwatch.com/story/gold-keeps-rally-going-as-dollar-eases-stocks-churn-2017-05-22