Today's Closing Update

U.S. shares traded higher on Friday after the Republicans took a step toward achieving tax reform.

 

European stocks traded higher on Friday as a slew of upbeat earnings reports and the dollar’s gains on increased optimism about the prospects for US tax reforms helped investors shrug off renewed political uncertainty in Spain.

 

The UK budget deficit narrowed in September, the Office for National Statistics said Friday. Public sector net borrowing, excluding public sector banks, decreased by £0.7bn from the previous year to £5.9bn in September. This was the lowest September net borrowing since 2007. During April to September period, PSNB decreased by £2.5bn to £32.5bn, which was the lowest year-to-date net borrowing since 2007.

 

Rio Tinto has opened the books for its remaining Australian coal mine assets to “over” half a dozen potential bidder.The news agency, citing two people familiar with the matter, said that the potential acquirers are a mix of Australia’s established coal miners and private equity firms. Sources suggested that they had been attracted by the positive outlook for selling metallurgical or coking coal to Asian steel mills. Whitehaven Coal Ltd, South32 Ltd and possibly Anglo American are among the interested parties. Previously, Reuters said private equity firm Apollo Global Management LLC and retirement fund Canada Pension Plan were both suggested as interested in the assets alongside Xcoal Energy & Resources LLC and an unnamed former Glencore executive.

 

Dechra Pharmaceuticals’ performance in the first quarter was in line with management expectations, with continued growth across all of its markets, shareholders at today’s annual general meeting will be told. Dechra said that no other new trading updates would be made at the AGM and said that it would announce its interim results for the six months to 31st December on 26th February.

 

Renishaw reported a rise in first-quarter profit and revenue thanks in part to a number of large orders from Far East customers in the consumer electronics markets. In an update for the three months to 30 September, the company said adjusted pre-tax profit was up 137% to £35.8m and statutory pre-tax profit increased to £36.9m from £10.7m the year before. Meanwhile, revenue from continuing operations came in at £142.3m, up 26% from the corresponding period last year. Revenue from the metrology business rose to £137.1m from £108.9m last year, with an underlying growth at constant exchange rates of 20%, while revenue in the healthcare business came in at £5.2m compared with £4m last year, representing growth of 29% at constant exchange rates.

 

General Electric has slashed its profits guidance after posting a quarterly loss due to weak trading in two key divisions. Shares in the industrial group fell at the start of trading on Wall Street after it unveiled a 5% fall in third quarter earnings to $1.8bn.
New chief executive John Flannery is due to announce a restructuring of the group next month. GE’s divisions range from jet engines, oil, transport, healthcare and finance.

 

Oil Prices rose, supported by signs of tightening supply and demand fundamentals, although a warning about excessive China economic optimism still weighed somewhat on markets.

 

Gold turned lower as the dollar regained ground after the U.S. Senate approved a budget plan for the 2018 fiscal year that will ease passage for Republicans to pursue a tax-cut package without Democratic support.

Market Close

Market Index Change % Change
UK 100 7,523.2 +0.2 +0.0%
UK 250 20,146.9 +15.4 +0.1%
GER 30 12,985.4 -4.7 -0.0%
FRA 40 5,371.8 +3.5 +0.1%
U.S. 30 23,269.88 +106.84 +0.5%
U.S. 500 2,570.6 +8.5 +0.3%
OIL (BRENT) 57.49 +0.26 +0.5%
GOLD 1,281.97 -8.16 -0.6%

UK Risers & Fallers

Company Price Change % Change
Spire Helathcare 260.7 +14.3 +5.8%
Provident 933 +44 +4.9%
Standard Chartered 772.1 +23.4 +3.1%
Acacia 194.5 -17.2 -8.1%
Fresnillo 1367 -51 -3.6%
Unilever 4161 -138 -3.2%

Reported Economic Data

Time/Date Previous Forecast Outcome
9:30am: U.K. Public Sector Net Borrowing 5.1bn 5.7bn 5.3bn
3:00pm: U.S. Existing Home Sales 5.35m 5.30m 5.39m

 

 

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