22nd Aug 2018 17:01
LONDON (Alliance News) - Stocks in London ended mixed on Wednesday, as investors exercised caution ahead of the release of minutes from the Federal Open Market Committee meeting and amid the legal woes of US President Donald Trump.Investors are also keeping an eye on the US-China trade talks and the latest Brexit developments as the EU and UK enter the final stages of talks over foreign policy, security and economic relationship.The FTSE 100 index closed up 0.1%, or 8.54 points at 7,574.24. The FTSE 250 ended down 0.36 points, at 20,642.50, and the AIM All-Share closed up 0.2%, or 2.22 points, at 1,084.80.The Cboe UK 100 closed up 0.1% at 12,846.13, the Cboe UK 250 closed flat at 18,737.93, and the Cboe UK Small Companies closed up 0.8% at 12,341.82.In Paris the CAC 40 ended up 0.2%, while the DAX 30 in Frankfurt ended flat. "Despite a softer start the FTSE has managed to grind higher into positive territory across the afternoon. However, trading was notably cautious, in line with global markets, as investors digest increased US political risk, whilst looking towards the outcome of US-Sino trade talks and the Fed minutes due later today," said City Index analyst Fiona Cincotta.On the London Stock Exchange, miners ended among the blue chip risers amid a rise in commodity prices. Gold miners Fresnillo and Randgold Resources closed up 1.8% and 1.0% respectively, tracking spot gold prices higher. Gold was higher quoted at USD1,195.95 an ounce at the London equities close against USD1,189.10 late Tuesday. The precious metal touched an intraday high of USD1,201.41 in afternoon trade, its highest level in a week as the dollar weakened. In addition, oil prices rallied after the Energy Information Administration reported US stockpiles fell by 5.83 million barrels, with the consensus estimate pointing to a drop of only 1.49 million barrels.Brent oil was up quoted at USD74.26 a barrel at the London equities close from USD72.45 at the close on Tuesday.Anglo-Australian miners BHP Billiton and Rio Tinto closed up 1.6% and 1.0% respectively. "In London the bigger, diversified miners are moving higher a day after BHP Billiton's results prompted some hesitancy among the sector's names, with investors reasoning that the broader operational characteristics of BHP and Rio make them better bets than the more specialist names," said IG chief market analyst Chris Beauchamp.The pound was higher quoted at USD1.2906 at the London equities close, compared to USD1.2860 at the same time on Tuesday, amid weakness in the dollar.The greenback drifted lower as a guilty plea from Trump's former personal lawyer, Michael Cohen, and the conviction of the president's former campaign chairman Paul Manafort triggered uncertainty over his leadership.Cohen pleaded guilty to campaign finance violations and other charges, and Paul Manafort, Trump's former campaign chairman, was found guilty on five counts of tax fraud, renewing political worries.Trump subsequently criticised Cohen, a day after his former "fixer" implicated the US president in a campaign cover-up to buy the silence of women who said they had sexual relationships with him.Trump tweeted: "If anyone is looking for a good lawyer, I would strongly suggest that you don't retain the services of Michael Cohen!"The euro was firm against the dollar at USD1.1599 at the European equities close, against USD1.1524 late Tuesday. Stocks in New York were mixed at the London equities close as investors await the release of minutes from the Federal Reserve's policy meeting in August at 1900 BST, for clues about growth outlook and further interest rate hikes this year.In its August meeting, the Fed had left interest rates unchanged but hinted at a couple of rate hikes this year as it gave an upbeat assessment of the US economy.Trump attacked the central bank, saying he "was not thrilled" at decision to hike rates and that it should do more to help boost the US economy, which caused the dollar to depreciate. "Trump has stressed his apparent belief that the Fed should be helping his cause not hindering it, taking aim at the pace at which it is raising interest rates which threatens to slow the potential of the economy and further strengthen the dollar. While I don't expect Trump's comments to influence policy makers - and they shouldn't - it's clear that they now have a target on their back and will be publicly attacked should the economy not hit the heights that Trump promised," said Oanda senior market analyst Craig Erlam.The DJIA was down 0.1%, the S&P 500 index up 0.1% and the Nasdaq Composite up 0.3%."The stench of corruption surrounding Trump, the restarting of trade talks between the US and China, and even Wednesday night's FOMC meeting minutes all pose a challenge to the Dow's gains. In terms of that latter event, the dollar could really do with Jerome Powell and co signalling a September rate hike, given the greenback suffered in the aftermath of a dovish Donald's Fed criticism earlier in the week," Spreadex analyst Connor Campbell said. The UK corporate calendar on Thursday has half year results from Irish building materials firm CRH, infrastructure investor John Laing Group, pension fund consolidator Phoenix Group Holdings, gaming and financial technology provider Playtech and challenger bank OneSavings Bank. The economic events calendar on Thursday has PMI data from France at 0815 BST, Germany at 0830 BST, the eurozone at 0900 BST and US at 1445 BST. In addition, the world's major central bank heads will gather in Jackson Hole, Wyoming for the Federal Reserve's annual Economic Policy Symposium, which begins on Thursday through to Saturday.Related Shares:
Rio TintoBHP Billiton PLCRandgold ResourcesFresnillo