10th Mar 2021 17:01
(Alliance News) - Stocks in London ended mixed on Wednesday as a fall in US bond yields helped temper volatility, while a fall in heavyweight miners saw the FTSE 100 end marginally lower.
The yield on the benchmark 10-year US Treasury note stood at 1.53% on Wednesday afternoon, lower from 1.55% on Tuesday afternoon.
The FTSE 100 index closed down 4.74 points, or 0.1%, at 6,725.60. The FTSE 250 ended up 24.20 points, or 0.1%, at 21,406.67. The AIM All-Share ended up 1.17 points, or 0.1%, at 1,181.87.
The Cboe UK 100 ended down 0.2% at 670.37, the Cboe UK 250 closed down 0.4%, at 19,038.23, the Cboe Small Companies ended 0.3% lower at 13,724.65.
In Paris the CAC 40 ended up 1.1%, while the DAX 30 in Frankfurt ended up 0.7%.
"In a similar fashion to yesterday, the overall mood in European equity markets is positive but the FTSE 100 is underperforming in comparison with the major indices in mainland Europe. The subdued activity in government bond yields is helping equities again," said CMC Markets analyst David Madden.
On the London Stock Exchange, Just Eat Takeaway ended the best blue-chip performer, up 6.1%, after the online takeout platform posted a sharp revenue hike for 2020, but was unable to stave off a widened loss during what was an "exceptional year" for the new food delivery tie-up.
In 2020, Just Eat Takeaway.com's revenue surged almost five-fold to EUR2.04 billion from the EUR416 million merger partner Takeaway.com alone registered in 2019.
Revenue was largely boosted by the merger, though Just Eat Takeaway.com was also helped by increased demand for its services as lockdowns meant restaurants, pubs and bars were unable to provide in-person dining for much of 2020. Its pretax loss widened to EUR147 million from the EUR88 million incurred by Takeaway.com in 2019.
Spirax-Sarco Engineering closed up 3.5% after the steam management systems manufacturer said its fourth quarter was better than expected, with full-year profit nudging up.
Revenue for 2020 fell 4% to GBP1.19 billion from GBP1.24 billion a year earlier. On an organic basis, revenue declined by 3%. Currency movements had a 2% negative effect on sales during the year, the Cheltenham, England-based company noted.
Pretax profit edged up 1% to GBP240.1 million, as the firm's operating profit margin improved to 20.9% from 19.7%. Spirax-Sarco raised its dividend for the year by 7% to 118.0 pence.
M&G ended 3.8% higher after Bank of America upgraded the investment manager to Buy from Neutral.
At the other end of the large-caps, mining stocks ended in the red amid a decline in commodity prices. Asian benchmark iron ore futures fell more than 3.0% on Tuesday to their lowest levels in two weeks, as anti-pollution restrictions in China's main steelmaking city of Tangshan hurt prices.
BHP Group closed down 3.0%, while Rio Tinto fell 2.9% and Antofagasta slipped 3.0%.
"The FTSE 100 continues to show signs of fatigue after its recent gains, with mining stocks still acting as a drag on the index following recent weakness in commodity prices. The currency angle is playing a part once again too, sterling remaining strong against the dollar while the euro struggles to recover after recent losses, explaining why continental indices have enjoyed a better time of it in recent sessions," said IG Group's Chris Beauchamp.
In the FTSE 250, Quilter ended the standout performer, up 9.3%, after the London-based wealth management company swung to an annual profit with 2020 seeing "significant progress on strategic execution" as the firm's assets grow.
The pound was quoted at USD1.3902 at the London equities close, flat from USD1.3900 at the close Tuesday.
The euro stood at USD1.1900 at the European equities close, up from USD1.1888 late Tuesday, ahead of the European Central Bank's interest rate decision on Thursday.
The ECB Governing Council meets this week in Frankfurt, announcing its latest policy decision at 1245 GMT on Thursday. This will be followed by a press conference with President Christine Lagarde at 1330 GMT.
Against the yen, the dollar was trading at JPY108.65, marginally lower from JPY108.70 late Tuesday.
Stocks in New York were firmly in the green at the London equities close as markets await congressional passage of US President Joe Biden's USD1.9 trillion stimulus plan, which is expected to boost the economy's recovery.
The DJIA was up 1.0%, the S&P 500 index up 0.6% and the Nasdaq Composite up 0.4%.
Biden's massive rescue package was set for a vote later in the day in the House of Representatives, and includes vast sums aimed at improving Covid-19 vaccinations and supporting the unemployed, as well as paying for another round of stimulus checks for consumers.
On the corporate front, Johnson & Johnson was up 0.9% after it emerged that the Biden administration plans to acquire an extra 100 million doses of the drugmaker's Covid-19 vaccine, giving the US surplus capacity should other makers run into manufacturing problems.
On the economic front, US inflation for February strengthened in line with market expectations, official figures showed.
The annual inflation rate for February was 1.7%, according to the US Bureau of Labor Statistics, accelerating from 1.4% the month before and exactly in line with market forecasts.
Month-on-month, prices rose 0.4%, ticking up from 0.3% monthly rise in January and again in line with analyst expectations.
Brent oil was quoted at USD67.85 a barrel at the equities close, lower from USD68.20 at the close Tuesday.
Gold was quoted at USD1,719.15 an ounce at the London equities close, higher against USD1,713.01 late Tuesday.
The economic events calendar on Thursday has the latest US jobless claims figures at 1330 GMT.
The UK corporate calendar on Thursday has annual results from grocer WM Morrison Supermarkets, jet engine maker Rolls-Royce and from ad agency WPP.
By Arvind Bhunjun; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Rio TintoAntofagastaSpirax-SarcoBHP GroupJust Eat TakeawQuilterM&G