The Market Close - Second day of Powell testimony sends U.S. stocks up - Collins Sarri Statham Investments

Today's Closing Update

U.S.Stocks overturned earlier losses to trade higher after Federal Reserve chairman Jerome Powell told a Senate hearing that the central bank does not see strong evidence of wage inflation and that there is no evidence that the US economy is overheating.

European shares slid as a flurry of uninspiring earnings updates from retailer Carrefour and advertiser WPP kept the mood downbeat, while broader jitters over tightening monetary policy spilled over into a new month.

The upturn in the UK manufacturing sector slowed further during February. At 55.2, the seasonally adjusted IHS Markit/CIPS Purchasing Managers’ Index (PMI) fell to an eight-month low and lost further ground after hitting a 51-month high last November. Manufacturing production increased at the slowest pace for 11 months in February, with decelerations seen across the consumer, intermediate and investment goods sectors.

Growth in the US economy’s manufacturing sector unexpectedly rose in February, according to data from the Institute for Supply Management. The ISM’s headline manufacturing index increased to 60.8 from 59.1 in January, beating expectations for a drop to 58.7. A reading above 50 indicates expansion, while a reading below signals contraction.

Eurozone unemployment held steady at its lowest level since December 2008 in January, according to figures released by Eurostat. The unemployment was stable at 8.6% in January, with December’s level revised down to 8.6% from the 8.7% previously estimated. In January 2017, the unemployment rate stood at 9.6%.

The number of Americans filing for unemployment benefits hit its lowest level in 49 years last week, according to data from the Labor Department. US initial jobless claims declined by 10,000 to 210,000 from the previous week’s level, which was revised down by 2,000. Economists had been expecting claims of 226,000. This marked the lowest level of claims since 6 December 1969, when it was 202,000.

Redde achieved an adjusted profit before tax of £21.9 million in the six months to 31 December 2017, an increase of 11.2%. Revenues were £253.3m, an increase of 11.5%, reflecting a 24.8% growth in the number of credit hires and a 0.5% increase in the total number of repairs undertaken against the corresponding period last year. The adjusted earnings before interest and taxation for the period were £22.0m.

Evraz reported a net profit of $759m in 2017 after a loss of $188m in 2016 supported by an upswing in the steel prices as China curbed output. ‘This performance was driven partially by higher volumes but mostly by an upswing in prices for steel and coal products amid more favourable market trends,’ the company in statement.

National Grid has warned it may not have enough gas to meet demand on Thursday as the cold snap continues to grip the UK. It issued its first “gas deficit warning” for eight years in the wake of “significant supply losses”. Shortages could affect industrial users as the firm seeks to balance supply and demand by buying in more gas if needed. Despite the shortfall of about 30 million cubic metres, household gas supplies should not be affected.

AVEVA announced the completion of the combination with the Schneider Electric industrial software business. The company said the combination created a “global leader” in engineering and industrial software, with an “unmatched” set of solutions covering all aspects of digital asset management.

Oil Prices edged lower, extending losses after data showed a higher-than-expected rise in U.S. crude and gasoline stocks.

Gold Prices extended their slide after recording its first monthly loss since October as the dollar hovered at six-week highs.

Market Close

Market	Index	Change	% Change
UK 100	7,175.6	-56.3	-0.8%
UK 250	19,551.7	-135.6	-0.7%
GER 30	12,190.9	-244.9	-2.0%
FRA 40	5,262.6	-57.9	-1.1%
U.S. 30	25,049.44	+20.24	+0.1%
U.S. 500	2,716.2	+2.4	+0.1%
OIL (BRENT)	63.78	-0.95	-1.5%
GOLD	1,310.78	-7.53	-0.6%

UK Risers & Fallers

Company	Price	Change	% Change
Burberry Group	1592	+58.5	+3.8%
Shire	3222	+113	+3.6%
Hunting	673.25	+66	+10.9%
Rentokil Initial	263.1	-26.5	-9.2%
WPP	1280	-114	-8.2%
AVEVA Group	1806.5	-1083	-37.5%

Reported Economic Data

Time/Date	Previous	Forecast	Outcome
9.30am U.K. Manufacturing PMI	55.3	55.1	55.2
3.00pm: Fed Chair Powell Testifies	–	–	–
3.00pm: U.S. ISM Manufacturing PMI	59.1	58.7	60.8