Today's Closing Update

U.S. shares traded lower amid renewed pressure on technology stocks.

 

European and U.K. shares were hit by big falls in Apple suppliers and other tech shares, overshadowing well-received election results in France and Italy.

 

UK PM Theresa May faced a group of senior Conservative MPs in a crunch meeting on Monday as she looks try and win backbench support following the unexpected loss of the party’s majority last week. May called the snap election with the purpose of creating an increased mandate for her Brexit plans, but a strong performance from Labour led to the Tories having to seek out a coalition with Northern Ireland’s DUP. Reports suggested May will ask her parliamentary colleagues to support her leadership, while she will vow to run the government in a less controlling manner following a weekend cabinet reshuffle.

 

Lloyds Banking Group said Lloyds Bank has launched non-US and US tender offers to repurchase selected senior debt securities totalling £6.0bn Lloyds said it is making the offers in order to provide the holders with an opportunity to have their notes repurchased “whilst maintaining a prudent approach to the management of the group’s funding and liquidity base”. It is yet to determine the price at which it will repurchase the notes. Lloyds said it “continues to maintain a strong liquidity and capital position, reducing the requirement for wholesale funding in 2017”, but that going forward it will focus on “modest incremental senior unsecured issuance” in order to meet future wholesale funding requireme

 

The Weir Group has entered into an agreement to acquire Singapore-headquartered KOP Surface Products for $114m cash. KOP is a provider of advanced surface pressure control technologies, systems and services for the oil and gas industry. The business was being acquired from Akastor ASA, a Norwegian-listed investor in oilfield services. KOP employed about 450 people and designs and manufactures wellheads, surface trees, valves, actuators and aftermarket services.

 

Reckitt Benckiser has received final regulatory approval for its recommended acquisition of Mead Johnson Nutrition. Reckitt had announced back in February that it would buy the US baby milk manufacturer for up to $17.9bn in an all-cash deal. The London-listed company will pay $90 per share in cash, valuing Mead Johnson’s equity at $16.6bn.

 

Oil Prices  rose to break a two-day losing streak, after futures traders increased their bets on a renewed price upswing even though rising U.S. drilling helped keep physical markets bloated.

 

Gold prices stalled as investors took stock of the longest skid for the yellow metal in over a month, and as this week’s focus now turns squarely on the Federal Reserve.

Market Close

UK 100 7511.9 -15.5 -0.2%
UK 250 19,682.7 -87.3 -0.4%
GER 30 12,702.3 -113.4 -0.9%
FRA 40 5,240.0 -59.7 -1.1%
U.S. 30 21,215.58 -56.39 -0.3%
U.S. 500 2,426.0 -5.8 -0.2%
OIL (BRENT) 48.73 +0.58 +1.2%
GOLD 1,265.33 -1.43 -0.1%

UK Risers & Fallers

Mitie Group 274.2 +33.2 +13.5%
Johnson Matthey 3045 +61 +2.0%
RDS ‘B’ ‘B’ 2185.5 +33.5 +1.6%
Acacia Mining 261.2 -39.1 -13.0%
Fresnillo 1641 -84 -4.9%
Micro Focus 2404 -95 -3.8%

Reported Economic Data

8:00am: Italian Industrial Production m/m 0.4% 0.2% -0.4%
5:01pm: U.S. 10-y Bond Auction

 

Sources

http://www.cnbc.com/2017/06/12/us-stocks-tech-apple-falls.html

https://uk.reuters.com/article/uk-europe-stocks-idUKKBN1930O7

http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1497276462344390600.html

http://www.stockmarketwire.com/article/5565434/Weir-Group-acquires-KOP-for-114m.html

https://www.digitallook.com/news/news-and-announcements/reckitt-benckiser-gets-final-approval-for-mead-johnson-acquisition–2717396.html

https://www.digitallook.com/news/political-news/may-to-face-tory-backbenchers-following-disastrous-election-result–2716354.html

https://www.reuters.com/article/us-global-oil-idUSKBN19303W

http://www.marketwatch.com/story/gold-pinned-near-unchanged-with-weak-tech-stocks-and-a-probable-fed-hike-in-play-2017-06-12

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