2nd Oct 2024 08:09
(Alliance News) - Stocks were higher in London on Wednesday morning, as the market processed Iran attacks on Israel, and ahead of a number of speeches from European Central Bank members later in the day.
In early corporate news, JD Sports Fashion remained confident in its strategy, as the firm upped its interim dividend amid growth in adjusted pretax profit.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: opened up 29.24 points, or 0.4%, at 8,305.89
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Hang Seng: up 6.0% at 22,405.98
Nikkei 225: closed down 2.2% at 37,808.76
S&P/ASX 200: closed down 0.1% at 8,198.20
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DJIA: closed down 173.18 points, 0.4%, at 42,156.97
S&P 500: closed down 0.9% at 5,708.75
Nasdaq Composite: closed down 1.5% at 17.910,36
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EUR: up at USD1.1067 (USD1.1064)
GBP: up at USD1.3285 (USD1.3276)
USD: up at JPY143.96 (JPY143.87)
Gold: down at USD2,648.60 per ounce (USD2,660.31)
(Brent): up at USD74.64 a barrel (USD74.51)
(changes since previous London equities close)
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ECONOMICS
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Wednesday's key economic events still to come:
China National Day. Financial markets in Shanghai closed. Hong Kong open.
09:30 CEST eurozone European Central Bank Vice President Luis de Guindos speaks
11:30 CEST eurozone European Central Bank Governor Philip Lane speaks
11:00 CEST eurozone unemployment
13:00 CEST eurozone European Central Bank executive board member Frank Elderson speaks
18:45 CEST eurozone European Central Bank executive board member Isabel Schnabel speaks
08:15 EDT US unemployment
10:30 EDT US EIA crude oil stocks
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President Joe Biden said that the US was "fully supportive" of Israel after Iran's ballistic missile attacks, describing Tehran's assault as "defeated and ineffective". "The attack appears to have been defeated and ineffective, and this is a testament to Israeli military capability and the US military," Biden told reporters at the White House. "Make no mistake, the US is fully, fully, fully supportive of Israel." Asked by reporters what the response towards Iran would be, Biden replied: "That's in active discussion right now. That remains to be seen." Biden said his team had been in contact throughout the attacks with Netanyahu's and that he would be speaking to the Israeli prime minister himself. "I'll be talking to him and my message will depend on what we finally conclude is needed," he said. Vice President Kamala Harris meanwhile has said the US will take "whatever action is necessary" to protect its interests against Iran. "I am clear-eyed: Iran is a destabilising, dangerous force in the Middle East and today's attack on Israel only further demonstrates that fact," she said. Oil prices surged on Tuesday following the missile attack, rising by up to 5% to USD75.40 per barrel, but are currently about the same as at the London close.
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US vice presidential contenders JD Vance and Tim Walz faced off in a surprisingly civil debate Tuesday, despite tense moments on the hot topics of migration, abortion and the threat of war in the Middle East. Republican Vance and Democrat Walz dug into policy and avoided the bitter personal attacks that presidential candidates Donald Trump and Kamala Harris exchanged during an often heated clash in September. But the shadow of their bosses hung over the CBS debate, with Walz attacking Trump as a threat to democracy and unfit to lead America on the world stage, and Vance slamming Harris's record on the economy and illegal migration as part of President Joe Biden's administration. A key moment came near the end, when Vance refused to say whether he backed Trump's false claims to have won the 2020 election against Biden. Minnesota governor Walz accused him of a "damning non-answer" and blasted Trump over the January 6, 2021 attacks on the US Capitol by pro-Trump supporters. There was also a fiery moment when Vance had his microphone briefly muted when the moderators tried to fact-check him on migration.
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UK Prime Minister Keir Starmer heads to Brussels on Wednesday for the first time as prime minister, looking to build on a promised "reset" of relations with the EU that were strained by Brexit. Starmer will hold his first formal meeting with European Commission President Ursula von der Leyen since his Labour party ousted the Conservatives from power in a general election in July. It is a further sign of new British goodwill towards European neighbours following the UK's rancorous 2020 departure from the bloc under Brexit champion Boris Johnson. But Starmer is also under pressure to be more precise about what exactly he wants for Britain from the EU – and what he is willing to give in return. Downing Street said Starmer will use the Brussels trip to discuss "his ambitions for the next few months" with von der Leyen and other EU leaders. Ahead of the visit, he said he was "so determined to put the Brexit years behind us and establish a more pragmatic and mature relationship" with the EU.
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BROKER RATING CHANGES
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Berenberg raises Rio Tinto to 'buy' (hold) - price target 6,200 (5,600) pence
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HSBC raises Burberry price target to 770 (690) pence - 'hold'
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DZ Bank cuts IBM to 'hold' (buy) - fair value 215 (210) USD
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COMPANIES - FTSE 100
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JD Sports Fashion reports pretax profit for the half ended June 30 of GBP126.3 million, down from GBP353.7 million a year prior. Adjusted pretax profit however grows to GBP405.6 million from GBP397.8 million. Revenue rises to GBP5.03 billion from GBP4.78 billion the year before. Declares a dividend per share of 0.33 pence, up from 0.30p. Additionally, reiterates its previous pretax profit and adjusting items guidance range of GBP955 million to GBP1.04 billion. Chief Executive Officer Regis Schultz says: "Our acquisition of Hibbett, Inc, which completed just before the period end, is a key milestone in our international development and advances the global nature of the Group through our strengthened position in the US. I remain confident in the delivery of our exciting growth plans for North America and that the group is well positioned to continue growing share in the world's largest sportswear market."
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COMPANIES - FTSE 250
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AO World and musicMagpie confirm that they have agreed the terms of a recommended cash acquisition of the entire issued and to be issued share capital of musicMagpie by AO Ltd. According to the terms of the acquisition, each musicMagpie shareholder will be entitled to receive 9.07 pence per share in cash for each musicMagpie share. The buy values musicMagpie at just under GBP10.0 million. musicMagpie directors recommend the acquisition, and are to support it with 12.3% shareholdings, while AO World's offer respectively has support from other investors for 54% in total. AO World says musicMagpie has a "highly complementary business model" to its own.
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OTHER COMPANIES
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GenIP, a technology business operating within the generative artificial intelligence space, announces the admission of its entire issued share capital to trading on AIM, a market operated by London Stock Exchange, at 0800 BST Wednesday under the ticker 'GNIP'. Follows a placing by Novum Securities, as well as a company subscription, for a combined total of 4.5 million ordinary shares at 39p per ordinary share, raising gross proceeds of GBP1.8 million.
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By Holly Beveridge, Alliance News senior reporter
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