Today's Closing Update
U.S. shares were little changed, near record levels as investors grappled with a variety of geopolitical issues, both domestic and abroad.
European and U.K. stocks were modestly lower at the start of a busy week that includes the latest policy decision from the European Central Bank and the British general election, which is taking place in the wake of a series of attacks.
The UK economy “regained some momentum” last month but the election and a spending squeeze weighed on the services sector, a survey has found. The Markit/CIPS purchasing managers’ index (PMI) for services fell to 53.8 in May, compared with 55.8 in April. But a separate report found that companies were increasingly positive about the prospects for manufacturing. The EEF manufacturers’ body raised its 2017 and 2018 growth forecasts, saying demand from Europe was “buoyant”. Manufacturing growth was faster than expected in May, according to PMI figures released last week. In comparison, the services industry was “out of sync with the other sectors which were fired up and running”, said Duncan Brock of the Chartered Institute of Procurement & Supply (CIPS).
Sales of new cars fell 8.5% in May from a year earlier, with buyers cautious in the run-up to the general election, the Society of Motor Manufacturers and Traders (SMMT) has said. The SMMT said 186,265 new cars were registered in May. But sales of alternatively fuelled cars rebounded after falling in April. They now have a record 4.4% market share. More than 1.1m new cars have been registered this year to date, down 0.6% on 2016.
Premier Foods said its offer of £210m of senior secured floating rate notes due in July 2022 has closed, allowing it to redeem its existing notes and pay down its debt. Last month, Premier Foods priced the new five-year £210m notes at three-month LIBOR plus 500 basis points, reset quarterly. Premier Foods said the offer has now closed, and confirmed that it intends to redeem the £175m of senior secured floating rate notes due in 2020 and pay down its revolving credit facility by up to £35m. It will then reduce the maximum capacity available under the facility by the same amount, and cover certain administrative costs, expenses and fees in connection with the offering.
Marlin Bidco, the buyout vehicle set up by BC Partners and Pollen Street Partners, has upped its offer for Shawbrook Bank. The private equity groups have lifted their offer by 10p to 340p a share, valuing the company at around £868m. The offer, which is final, represents a 28% premium to Shawbrook’s closing price on 2 March.
HICL Infrastructure Co Ltd announced it has raised £267.7m to fund its pipeline of investments. The company raised the funds from an oversubscribed share placing from the issue of 162.2m shares which were sold at 165p each. Shares in HICL were trading down 0.3% at 168.50p on Monday. The share placing was in high demand as the company had initially set out to raise £205.0m. The new shares will be admitted to trading on the main market of the London Stock Exchange on Wednesday and following admission, the company will have 1.75bn shares in issue.
Qatar’s stock market suffered its largest fall in almost a decade after Saudi Arabia led other Gulf states including United Arab Emirates and Egypt in cutting diplomatic ties, purportedly over protecting themselves from “terrorism and extremism”.
Saudi Arabia also closed the border and halted air and sea traffic with Qatar, urging “all brotherly countries and companies to do the same”. The official Saudi state news agency said early on Monday that diplomatic and consular relations had been severed with Qatar “proceeding from the exercise of its sovereign right guaranteed by international law and the protection of national security from the dangers of terrorism and extremism”, thought to be over its support for Islamist movements such as the Muslim Brotherhood and Hamas as well as its relationship with Iran.
Oil Prices fell about 1 percent, on concerns that the cutting of ties with Qatar by top crude exporter Saudi Arabia and other Arab states could hamper a global deal to reduce oil production.
Gold hit a six-week high on, buoyed by disappointing U.S. jobs data on Friday
Market Close
UK 100 |
7525.8 |
-21.9 |
-0.3% |
UK 250 |
19,868.7 |
-134.1 |
-0.7% |
GER 30 |
12,821.7 |
+156.8 |
+1.2% |
FRA 40 |
5,306.0 |
-37.4 |
-0.7% |
U.S. 30 |
21,195.94 |
-10.35 |
-0.1% |
U.S. 500 |
2,435.9 |
-3.1 |
-0.1% |
OIL (BRENT) |
49.22 |
-0.73 |
-1.5% |
GOLD |
1,280.18 |
+1.01 |
+0.1% |
UK Risers & Fallers
Greencore Group |
254.75 |
+6.8 |
+2.7% |
Old Mutual |
201.5 |
+4.5 |
+2.3% |
Standard Chartered |
753 |
+8 |
+1.1% |
Restaurant Group |
346.1 |
-20.7 |
-5.7% |
Antofagasta |
776.5 |
-28.5 |
-3.5% |
Easyjet |
1344 |
-28.5 |
-3.5% |
Reported Economic Data
8:30am: U.K. Services PMI |
55.8 |
55.1 |
53.8 |
12:30pm: U.S.Revised Non-farm Productivity q/q |
-0.6% |
-0.6% |
0.0% |
2:00pm: U.S. ISM Non-Manufacturing PMI |
57.5 |
57.1 |
56.9 |
2:00pm: U.S. Factory Orders m/m |
0.2% |
-0.2% |
-0.2% |
Sources
http://www.marketwatch.com/story/us-stock-futures-brush-off-uk-terror-attacks-as-busy-week-kicks-off-2017-06-05
http://abcnews.go.com/Business/wireStory/asian-stocks-mixed-london-attack-oil-qatar-rift-47834931
http://www.bbc.co.uk/news/business-40154368
http://www.bbc.co.uk/news/business-40157721
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1496669853425857400.html
http://www.stockmarketwire.com/article/5561434/RMG-exchanges-contracts-on-two-Nine-Elms-plots.html
https://www.digitallook.com/news/news-and-announcements/bc-partners-and-pollen-street-sweeten-offer-for-shawbrook–2705070.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1496674317565986500.html
https://www.digitallook.com/news/international-economic/qatar-equities-quake-as-arab-states-sever-diplomatic-ties–2704634.html
http://oilprice.com/Energy/Energy-General/Oil-Markets-On-Edge-As-Arab-States-Cut-Ties-With-Qatar.html
http://economictimes.indiatimes.com/markets/commodities/news/gold-hits-highest-in-over-6-weeks-as-us-jobs-data-disappoints/articleshow/58995505.cms