22nd Aug 2024 07:45
(Alliance News) - Stocks in London are called to open lower on Thursday, after New York rebounded on hopes of a September interest rate cut.
Investors will be eagerly waiting for the Jackson Hole symposium to kick off today in Wyoming, and for the further guidance that may come with Fed Chair Jerome Powell's speech on Friday.
Stocks on New York recovered on Wednesday from Tuesday's dip as investors digested revised nonfarms data and minutes from July’s US Federal Reserve meeting, ahead of the start of the Jackson Hole conference on Thursday.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called down 0.1% at 8,272.10
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Hang Seng: up 0.7% at 17,509.62
Nikkei 225: closed up 0.7% at 38,211.01
S&P/ASX 200: closed up 0.2% at 8,027.00
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DJIA: closed up 55.52 points, 0.1%, at 40,890.49
S&P 500: closed up 0.4% at 5,620.85
Nasdaq Composite: closed up 0.6% at 17,918.99
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EUR: up at USD1.1143 (USD1.1138)
GBP: up at USD1.3083 (USD1.3020)
USD: down at JPY145.28 (JPY145.35)
GOLD: down at USD2,505.40 per ounce (USD2,507.72)
OIL (Brent): down at USD75.99 a barrel (USD77.29)
(changes since previous London equities close)
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ECONOMICS
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Thursday's key economic events still to come:
10:00 CEST eurozone flash composite PMI
11:00 CEST eurozone negotiated wage growth
16:00 CEST eurozone consumer confidence
09:15 CEST France flash composite PMI
09:30 CEST Germany flash composite PMI
11:00 IST Ireland wholesale prices
09:30 BST UK flash composite PMI
08:30 EDT US Chicago Fed national activity index
08:30 EDT US initial jobless claims
09:45 EDT US flash composite PMI
10:00 EDT US existing home sales
10:30 EDT US EIA natural gas stocks
11:00 EDT US Kansas City Fed manufacturing activity
US Jackson Hole Economic Policy Symposium
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Business activity in Japan increased in August at the fastest pace in more than a year, flash purchasing managers' index reading published by S&P Global showed. The flash composite output index improved to 53.0 points in August from the final score of 52.5 in July. S&P said it was the highest reading since May 2023. The flash services business activity index edged up to 54.0 points in August from 53.7 in July. The flash manufacturing output index climbed to 50.9 points in August from 49.7 in July. Edging over the neutral 50-points mark, it indicates activity returned to growth. Jingyi Pan, economics associate director at S&P Global Market Intelligence said: "Overall optimism levels remained above average to indicate that firms were confident that output will continue to rise in the months ahead. The level of business confidence eased to a 19-month low, however. Anecdotal evidence pointed to concerns over labour constraints, particularly in the service sector where employment growth slowed, and also rising price pressures."
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Tim Walz introduced himself to millions of Americans on a star-studded night at the Democratic National Convention Wednesday, as he accepted the nomination to be Kamala Harris's White House running mate. In a whirlwind quarter-hour address, Walz raced through the story of his middle-class upbringing in small town Nebraska, where he worked on the family farm, and described his experience teaching students who inspired him to go into politics. "They saw in me what I had hoped to instill in them: a commitment to the common good, an understanding that we're all in this together, and the belief that a single person can make a real difference for their neighbors," he said as the crowd chanted "Coach Walz!" The gloves came off as the 60-year-old Minnesota governor turned his fire on Republican nominee Donald Trump, accusing him of spending "all day insulting people and blaming others." But Walz devoted much of his speech at the United Center in Chicago to making the case for Harris. "From her day as a prosecutor, as a district attorney, as an attorney general, as a US senator and then our vice president, she's fought on the side of the American people," he said.
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BROKER RATING CHANGES
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Jefferies raises Admiral to 'hold' ('underperform') - target 3,025 (2,300) pence
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COMPANIES - FTSE 100
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JD Sports Fashion updated its shareholders on its second quarter trade, in the 13 weeks ended August 3. The retailer reported like-for-like sales growth of 2.4% and organic sales growth of 8.3% in the second quarter, which it said demonstrated "the strength and agility of our multi-brand model." Notably, JD saw double-digit organic sales growth in North America and Europe, supported by the success of its JD store rollout programme. Looking ahead, Chief Executive Regis Schultz said: "The global macro environment remains volatile and so we continue to be cautious on our outlook for the rest of the year."
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COMPANIES - FTSE 250
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Hays reported that net fees in the year ended June 30 fell 14% to GBP1.11 billion from GBP1.29 billion a year ago. Pretax profit plummeted 92% from GBP14.7 million from GBP192.1 million. Hays maintained its core dividend per share at 3.00p. Looking ahead, Hays said that near-term conditions "remain challenging" but in line with is expectations. It noted that September is the key trading month in its first quarter, but it it "too early to assess trends. CEO Dirk Hahn said: "We saw increasingly challenging market conditions through FY24 in both Perm and Temp, with low confidence levels and longer-than-normal 'time-to-hire', and our profitability was significantly impacted, including our three largest markets of Germany, Australia and the UK. Against this backdrop, we have focused on enhanced operational rigour, driving consultant productivity and strong cost management, and are determined to build a more resilient Hays."
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Serco said has been awarded a new contract by US Army Corps of Engineers to manage the modernisation of the back-up electrical plant at the US Space Force's Pituffik Space Base, in Greenland. The contract started in August and has an estimated value of around USD320 million over its four-year term. Pituffik Space Base, which was formerly known as Thule Air Base, supports missile warning, missile defence, and space surveillance missions. CEO Mark Irwin said: "This contract award builds on Serco's strong capabilities in systems design and installation, as well as our exemplary past performance on defence construction projects. We are delighted to have the opportunity to support this large, mission-critical upgrade project for the US Space Force and Army Corps of Engineers. We recognise the impact of our work in ensuring mission critical readiness is maintained for this pivotal location."
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OTHER COMPANIES
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Eckoh confirmed that, following a period of discussions and negotiations with multiple parties regarding a potential sale of the company since May, it has received a highly conditional, non-binding revised indicative offer from a private equity investor. The investor has offered 54p per share. Shares in Eckoh closed up 3.2% at 48.52p each on Wednesday. It noted that discussions with other parties remain ongoing, and there is no certainty that any offer will be made. Eckoh explained: "Late last year and based on the board's belief that the share price did not reflect the fundamental value of the business, the company began to consider alternative options to realise value for shareholders. Subsequently, the board appointed Stifel and Singer Capital Markets in March 2024 as financial advisers in order to determine the value that could be achieved in the event of a sale process and to initiate discussions on behalf of Eckoh."
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By Sophie Rose, Alliance News senior reporter
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