3rd Apr 2023 08:06
(Alliance News) - Stocks in London opened higher on Monday morning, ahead of a slew of PMI scores in Europe and the US, whilst oil prices surged after a surprise Opec production cut.
Manufacturing purchasing managers' index readings are due from the eurozone at 0900 BST, the UK at 0930 BST and the US at 1445 BST.
Growth in the Chinese manufacturing sector stalled in March, according to survey data on Monday.
The Caixin manufacturing PMI fell to a neutral reading of 50.0 points, from the eight-month high of 51.6 in February. The 50-point mark separates growth from contraction and shows manufacturing activity was stable from the previous month.
Meanwhile, in Japan, the deterioration of the country's manufacturing sector eased slightly in March. The au Jibun Bank manufacturing PMI increased to 49.2 points in March from 47.7 in February.
On Sunday, Saudi Arabia led a coordinated production cut by major oil powers, despite US pressure to pump more crude, saying they were aiming at market stability.
Cuts by the Saudis, Iraq, UAE, Kuwait, Algeria and Oman from May to the end of the year will total more than one million barrels per day – the biggest reduction since the OPEC+ cartel slashed two million barrels per day in October. Russia, a member of OPEC+, said it also was extending its cuts of 500,000 barrels per day to the end of this year, calling it "a responsible and preventive action".
A Saudi energy ministry official "emphasised that this is a precautionary measure aimed at supporting the stability of the oil market", the official Saudi Press Agency said.
In early company news in London, Ryanair and Wizz Air reported their March passenger numbers, showing big increases from a year before.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 42.90 points, or 0.6%, 7,674.64
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Hang Seng: down 0.7% at 20,254.08
Nikkei 225: closed up 0.6% at 28,194.97
S&P/ASX 200: closed up 0.5% at 7,216.30
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DJIA: closed up 415.12 points, or 1.3%, at 33,274.15
S&P 500: closed up 58.48 points, or 1.4%, at 4,109.31
Nasdaq Composite: closed up 208.43 points, 1.7%, to 12,221.91
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EUR: down at USD1.0812 (USD1.0863)
GBP: down at USD1.2287 (USD1.2370)
USD: up at JPY133.73 (JPY132.90)
Gold: down at USD1,954.62 per ounce (USD1,979.05)
(Brent): up at USD83.81 a barrel (USD79.14)
(changes since previous London equities close)
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ECONOMICS
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Monday's key economic events still to come:
10:00 CEST EU manufacturing PMI
09:55 CEST Germany manufacturing PMI
09:30 BST UK manufacturing PMI
09:45 EDT US S&P Global manufacturing PMI
10:00 EDT US ISM manufacturing PMI
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Ireland's manufacturing sector contracted in March amid reports by factory owners of weak demand, S&P Global and Allied Irish Banks reported on Monday. The manufacturing PMI fell to 49.7 points in March from 51.3 in February. It was the first contraction in three months. However, Ireland's PMI score was above the flash readings of the US, the UK and the eurozone, which were at 49.3, 48.0, and 47.1 respectively, AIB noted. This illustrated "continued subdued manufacturing activity globally," said Oliver Mangan, chief economist at AIB.
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BROKER RATING CHANGES
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Barclays raises Anglo American to 'overweight' (equal weight) - price target 3,250 (2,900) pence
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HSBC cuts NCC Group to 'hold' (buy) - price target 117 (245) pence
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Shore Capital starts Dunelm Group with 'hold'
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COMPANIES - FTSE 100
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Intertak Group said it has agreed to buy Controle Analitico Analises Tecnicas, a provider of environmental analysis with a focus on water testing. The company, which is based in Brazil, was bought for an undisclosed amount. Intertek noted that Controle Analitico has more than 150 employees and generated revenue of GBP5.5 million in 2022. Chief Executive Officer Andre Lacroix said: "The acquisition of Controle Analítico is a compelling strategic fit for Intertek and is highly complementary to our existing footprint and service offering in Brazil. Moreover, it aligns with our core purpose of bringing quality, safety and sustainability to life."
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UK Government Investments said it has agreed to extend the sale of part of the Treasury's shareholding in NatWest Group. UKGI explained that the sale is part of its trading plan, which was first announced in June 2021 and extended in June the following year. Following the extension, the trading plan will now terminate no later than August 11, 2025, instead of August 11, 2023. The trading plan will continue to be managed by Morgan Stanley.
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COMPANIES - FTSE 250
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Wizz Air said it carried 4.3 million passengers in March, a 72% year-on-year increase. The budget airline's load factor improve to 92.2% from 86.2% a year before, whilst total capacity jumped by 61% to 4.6 million seats from 2.9 million seats. On a rolling 12-month basis, capacity was up 68% to 58.2 million seats from 34.6 million seats. Passenger numbers surged 89% to 51.1 million from 27.1 million, and Wizz Air's load factor improved to 87.8% from 78.2%.
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Genus named Jorgen Kokke as its new chief executive officer. The role will have effect from July 1. The company said that Kokke has spent the last 14 years in leadership roles at Ingredion, a food and beverage ingredient solutions company listed on the New York Stock Exchange. Most recently, he was executive vice president & president Americas with responsibility for "all operational and strategic management decisions" across its North and South American businesses. In February, Genus announced that Stephen Wilson will retire as CEO, after 10 years with the company. Wilson will leave Genus on September 30. Wilson will step down as CEO on July 1, but will remain involved in the company until the announcement of its annual results in September.
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OTHER COMPANIES
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Budget airline Ryanair said that the number of passengers in March rose by 12% to 12.6 million from 11.2 million a year earlier. Ryanair's load factor improved to 93% from 87%. On a rolling 12 month basis, the number of passengers climbed 74% to 168.6 million from 97.0 million. Load factor increased to 93% from 82%. The airline operated over 71,350 flights in March 2023, it said, while noting that in 2022 air traffic was hurt by the Ukraine invasion.
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WANdisco said that Co-founder & Chief Executive Officer David Richards and Chief Financial Officer Erik Miller have decided to step down, following an investigation. In March, WANdisco suspended trading in its shares after uncovering signs of possible "sophisticated" fraudulent activity, just days after it announced it was exploring a potential US listing. The company said Non-Executive Chair Ken Lever will take up the role of executive chair pending the conclusion of a formal process to appoint a new CEO, which will begin shortly. WANdisco also named Ijoma Maluza as its new CFO. "It is in the best interests of all stakeholders if this objective is pursued under new leadership," WANdisco said. The company noted that the board changes are not connected to the findings to date of the independent investigation. "Over the years David and Erik have contributed significant time and effort to establishing and developing WANdisco. They remain meaningful shareholders in the business and continue to believe in the long-term, successful future for this company and its unique technology," Lever said.
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By Sophie Rose, Alliance News reporter
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