2nd Oct 2020 16:55
(Alliance News) - The FTSE 100 managed to turnaround what was shaping up to be a dire session on Friday after US President Donald Trump said he tested positive for the novel coronavirus.
The FTSE 100 closed up 22.67 points, or 0.4%, at 5,902.12 on Friday - rising nearly 100 points off its intraday low of 5,809.61. The blue-chip index gained 1.0% for the week.
The FTSE 250 ended up 12.35 points, or 0.1%, at 17,395.81 - ending the week up 2.0% - and the AIM All-Share closed up 0.19 of a point at 964.79, and ending the week up 1.1%.
The Cboe UK 100 ended up 0.2% at 585.73, the Cboe UK 250 closed down 0.1% at 14705.33, and the Cboe Small Companies ended down 0.1% at 9231.07.
In European equities on Friday, the CAC 40 in Paris ended flat, while the DAX 30 in Frankfurt ended down 0.3%.
"The initial panic sparked by Trump's case of the Covids seemed to cool somewhat as the day went on, despite a pretty awful nonfarm jobs report providing fuel for the fire," said Connor Campbell at Spreadex.
Campbell said news that Trump is experiencing mild symptoms may have helped markets recover.
The White House physician said the president is expected to continue carrying out his duties "without disruption" while recovering. A White House official said Trump was experiencing mild symptoms but was working from the White House residence.
Hours before Trump announced he had contracted the virus, the White House said a senior aide who had travelled with him during the week had tested positive.
"Tonight, @FLOTUS and I tested positive for COVID-19. We will begin our quarantine and recovery process immediately," Trump tweeted. "We will get through this TOGETHER!"
The stunning development comes a month before the US election on November 3. Trump is now expected to be in quarantine for some two weeks while facing treatment for the disease. The president is 74 years old, putting him at higher risk of serious complications from the virus.
Vice president Mike Pence tested negative for the virus on Friday morning and "remains in good health", his spokesman said.
Stocks in New York were in the red at the London equities close, with the DJIA down 0.5%, the S&P 500 index down 0.7%, and the Nasdaq Composite down 1.3%.
Not helping matters was a disappointing US jobs report.
Total nonfarm payroll employment rose by 661,000 in September, slowing sharply from an upwardly revised 1.5 million jobs added in August. The September print missed the market estimate, cited by FXstreet, of 850,000 jobs.
The report's bright spot was the unemployment rate, however. The US unemployment rate was 7.9% in September, easing from 8.4% in August. The latest reading beat the market forecast of 8.2%.
The dollar was mixed at the European equities close.
Against the yen, the dollar was trading at JPY105.34, lower compared to JPY105.58 late Thursday.
The euro stood at USD1.1717 at the European equities close Friday, down against USD1.1745 at the same time on Thursday.
The pound was quoted at USD1.2939 at the London equities close Friday, up compared to USD1.2889 at the close on Thursday.
David Madden, market analyst at CMC Markets, commented: "GBP/USD is up on the session thanks to a broad mover higher in sterling...The fact that Johnson and von der Leyen are scheduled to talk tomorrow is seen as a step in the right direction.
The two leaders will speak on Saturday to discuss the "next steps" following the conclusion of the final formal round of talks in Brussels.
The chief negotiators Michel Barnier and Lord Frost were meeting on Friday in the Belgian capital at the end of a week of talks.
A No 10 spokesman said: "The prime minister will be speaking to President von der Leyen tomorrow afternoon to take stock of negotiations and discuss next steps."
Both sides have acknowledged that time is running out if they are to achieve an agreement before the current Brexit transition period comes to an end at the end of the year. UK Prime Minister Boris Johnson has said he is prepared to walk away from the negotiations if there is no agreement by the time of the next EU summit on October 15.
In London, Rolls-Royce ended in the red for the fifth session in a row, closing down 2.7% on Friday and having lost more than 25% since the start of the week alone. The stock has collapsed 83% since the start of the year.
The jet engine maker was extending losses after its equity raise announcement on Thursday.
Goldman Sachs and Morgan Stanley, who are advising Rolls-Royce on its GBP5 billion debt and equity issue plans, have cut their underwriting exposure to the fundraising due to the Covid-19 led market volatility and the US presidential election, the Financial Times reported on Thursday, citing several sources.
Centamin slumped 22% after saying it will defer open pit mining operations in the Stage 4 West wall of the open pit at its Sukari gold mine in Egypt after detecting movement in a localised area of waste material.
The decision to defer operations in that zone is a preventative measure, aiming to ensure workforce health and safety, Centamin said. As a result of the deferral, however, its 2020 guidance will be reduced, and it will include an updated mine plan for future years in its life of asset review.
RBC cut the gold miner to Sector Perform from Outperform.
Gold was quoted at USD1,906.50 an ounce at the London equities close Friday against USD1,910.51 at the close on Thursday.
Cineworld closed down 2.5%. Moody's Investors Service downgraded Cineworld's corporate family rating late Thursday to Caa3 from B3, reflecting "significant operating challenges" amid the Covid-19 pandemic as well as the possibility of a second wave.
Additionally, Moody's maintained its negative outlook on all of the Brentford, England-based firm's ratings. This reflects Cineworld's "very tight liquidity position" as well as uncertainty around cinema attendance levels.
Liontrust Asset Management ended up 5.7%. The fund manager said it has sold one investment team and closed two as part of a review in devoting resources and strategic focus.
Liontrust has decided to sell its Asia Income investment team to Somerset Capital Management for GBP2 million in cash, payable over five years. The sale is expected to have a neutral effect on the company's earnings. The FTSE 250-listed company separately has decided to close the European Income and Macro Thematic investment teams.
Brent oil was quoted at USD39.48 a barrel at the London equities close Friday, down from USD40.13 late Thursday.
The UK corporate calendar on Monday has full-year results from luxury leather accessories retailer Mulberry Group and heavy fuel oil alternative manufacturer Quadrise Fuels International.
The economic calendar on Monday has services PMIs from Ireland, Germany, the eurozone and the UK at 0101 BST, 0855 BST, 0900 BST and 0930 BST respectively.
Eurozone retail sales are at 1000 BST and there is a Markit US services PMI at 1445 BST, followed by a report from the ISM at 1500 BST.
By Lucy Heming; [email protected]
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