29th Aug 2024 07:46
(Alliance News) - Stocks were called higher in London on Thursday morning, as investors wait for a handful of data from the US later, including the most recent GDP figures.
In early corporate news, the European Commission has authorised GSK's respiratory syncytial virus vaccine for adults aged 50 to 59.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: called up 0.2% at 8,350.60
----------
Hang Seng: up 0.2% at 17,727.93
Nikkei 225: closed down 0.2% at 38,313.09
S&P/ASX 200: closed up down 0.3% at 8,045.10
----------
DJIA: closed down 159.08 points, 0.4%, at 41,091.42
S&P 500: closed down 0.6% at 5,592.18
Nasdaq Composite: closed down 1.1% at 17,556.03
----------
EUR: up at USD1.1135 (USD1.1128)
GBP: up at USD1.3222 (USD1.3204)
USD: up at JPY144.51 (JPY144.38)
GOLD: up at USD2,519.40 per ounce (USD2,507.11)
OIL (Brent): down at USD77.75 a barrel (USD78.91)
(changes since previous London equities close)
----------
ECONOMICS
----------
Thursday's key economic events still to come:
08:30 EDT Canada current account
11:00 CEST eurozone economic sentiment index
11:00 CEST eurozone consumer confidence
11:00 CEST eurozone industrial sentiment index
14:00 CEST Germany CPI
19:00 CEST Germany Deutsche Bundesbank President Joachim Nagel speaks
11:00 IST Ireland CPI
09:00 CEST Spain CPI
08:30 EDT US trade balance
08:30 EDT US wholesale inventories
08:30 EDT US GDP
08:30 EDT US initial jobless claims
08:30 EDT US flash quarterly personal consumption expenditures
10:00 EDT US pending home sales
10:30 EDT US EIA natural gas stocks
15:30 EDT US Atlanta Fed President Raphael Bostic speaks
----------
US Vice President Kamala Harris embarked on a bus tour of the swing state of Georgia, returning to the campaign trail after the Democratic convention for the final 10-week sprint against Donald Trump. Riding on the momentum from her star turn in Chicago last week, Harris and her running mate Tim Walz are hitting a battleground that they believe is in play since she replaced Joe Biden as the party's nominee. With Republican former president Trump also stepping up his campaign in the handful of toss-up states where the race for the White House will be decided, the November 5 presidential election promises to be agonizingly tight. But after Biden flipped Georgia in 2020 for the first time in three decades, "we're seizing on the energy and putting in the work to win again in 2024," Harris's campaign said.
----------
US national security adviser Jake Sullivan met with a top Chinese military official on Thursday as the two countries strengthen communication to prevent differences over the South China Sea and Taiwan from spiralling into conflict. The meeting came one day after the White House said both countries would plan for a phone call between Chinese President Xi Jinping and US President Joe Biden in the coming weeks. Sullivan was wrapping up a three-day trip to China, his first as national security adviser and one aimed at stabilising bilateral relations to avoid conflict. His main talks were held over the past day and a half with Wang Yi, the foreign minister and the ruling Communist Party's top foreign policy official.
----------
The outlook for the UK's chemical industry is "worrying" without a plan to eliminate its reliance on fossil fuels, sector experts have warned. Researchers from the think tank Green Alliance assessed how much Britain's policy supports the transition in the sector, which relies heavily on fossil fuels for energy and as a feedstock. They found that 140,000 jobs in the industry are at stake over the long term if it remains dependent on fossil fuels, and policymakers fail to plan for its decarbonisation. It comes as the steel industry, which employs far fewer people at an estimated 33,700, hit the headlines in recent months due to job losses at Tata Steel as it switches to a greener form of production.
----------
The Resolution Foundation has warned of a "weak" living standards outlook for middle-income households in a report published on Thursday, which is "even worse" for poorer families, who could lose out if ministers press ahead with benefit cuts set by the previous Conservative administration. Alex Clegg, an economist at the think tank, said Bank of England and Office for Budget Responsibility forecasts showed the majority of income growth before 2030 is expected in this year alone. Incomes are expected to grow by 3% in 2024 to 2025, but annual median income growth for non-pensioner households is forecast to tumble to 0.4% between 2024 to 2025 and 2029 to 2030. This would leave annual average income growth over the whole Parliament at 0.8% – or GBP1,400 per household.
----------
More military aid "is vital for Ukraine's ability to stay in the fight" against Russia's all-out invasion, Nato Secretary General Jens Stoltenberg said. "Ukraine continues to intercept Russian missiles on a daily basis, saving countless lives. But Ukraine's ability to maintain their defences requires increased supply and more support," he said in a statement. In the wake of recent heavy Russian airstrikes, Stoltenberg called a meeting of Nato allies' ambassadors in Brussels at Ukraine's request to discuss the country's air defence needs. Speaking via video-link, Ukrainian Defence Minister Rustem Umerov briefed the ambassadors and Stoltenberg on the battlefield situation and Ukraine's priorities for military equipment.
----------
BROKER RATING CHANGES
----------
JPMorgan cuts Reckitt to 'neutral' (overweight)
----------
Bernstein raises Whitbread to 'outperform,' (market-perform,) - price target 3,300 (3,140) pence
----------
Royal Bank of Canada raises Hunting price target to 500 (450) pence - 'outperform'
----------
COMPANIES - FTSE 100
----------
GSK said that the European Commission has authorised Arexvy, its respiratory syncytial virus vaccine, for adults aged 50 to 59. The vaccine immunises patients, in order to prevent lower respiratory tract disease, which is caused by respiratory syncytial virus. It has been approved in Europe for adults over 60 since June last year. The news follows approval in the US, with other countries - including Japan - expected to grant permission later this year.
----------
COMPANIES - FTSE 250
----------
Grafton Group reported pretax profit for the six months ended June 30 of GBP71.7 million, down 23% from GBP93.6 million a year prior. Operating profit was GBP71.3 million, down 24% from GBP94.3 million. Revenue fell 4.4% to GBP1.14 billion from GBP1.19 billion the year before. Nevertheless, Grafton upped its interim dividend by 5.0% to 10.5 pence from 10p. Chief Executive Officer Eric Born said: "Whilst uncertainties remain in the short term, our medium-term outlook remains positive, supported by strong demand fundamentals, not least in the demand for new housing as markets normalise and consumer confidence improves. At this point in the year, with the important Autumn trading season yet to come, we continue to anticipate delivering adjusted operating profit for 2024 in line with analysts' expectations."
----------
OTHER COMPANIES
----------
Irish Continental Group reported revenue for the half ended June 30 of EUR285.5 million, up 8.1% from EUR264.0 million a year prior. Pretax profit was EUR14.6 million, up 4.3% from EUR14.0 million the previous year, while basic earnings per share came to 8.30 cents from 7.50 cents. The firm raised its dividend by 5% to 5.11 cents from 4.87 cents. Chair John McGuckian said: "Our position on the Dover – Calais route was strengthened this year with the agreement of a space charter on this route with P&O Ferries, allowing for space sharing on each parties' vessels encompassing both freight and passenger traffic. As previously announced, the initial focus was to start introducing the space sharing for our freight customers over the summer allowing them to benefit from the advantages of a turn up and go service. We are now focused on introducing this space charter for our passenger traffic. When fully implemented, the agreement will result in greater flexibility and more choice for all our customers."
----------
Hunting reported a sharp increase in the order book and a significant contract win. The manufacturer of equipment for the energy industry said pretax profit jumped to USD36.2 million in the first half of 2024 from USD15.7 million a year ago. Revenue climbed 3.3% to USD493.8 million from USD477.8 million. Hunting upped its interim dividend by 10% to 5.5 US cents per share from 5.0c. Its order book increased by 32% to a record of USD699.5 million from USD529.7 million. "Management anticipates a firming in the Henry Hub natural gas price by 2025, which will support onshore and gas-focused drilling activity in the US and Canada, which will also enable oil focused drilling to increase given the limitations on flaring in certain US onshore basins, such as the Permian," the company said. Further, Hunting said it signed significant organic oil recovery contracts from major North Sea operators, totaling up to USD60 million over a five-year period. "Hunting will deliver the organic oil recovery specialised water flood technology to increase recoverable reserves and extend the operational life of multiple assets across the operators' North Sea portfolios," it said.
----------
By Holly Beveridge, Alliance News senior reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.