23rd Oct 2020 06:59
(Alliance News) - Stock prices in London are seen opening higher on Friday, ahead of a raft of flash manufacturing and services data in Europe and after a US presidential debate which saw neither candidate land knockout blows.
IG futures indicate the FTSE 100 index is to open 17.5 points higher at 5,803.2. The blue-chip index closed up 0.2%, or 9.15 points at 5,785.65 on Thursday.
Frankfurt's DAX 30 and the CAC 40 in Paris both both called up 0.4%.
The pound was quoted at USD1.3061, down from USD1.3095 at the London equities close on Thursday.
The euro stood at USD1.1799, down from USD1.1825.
"Last night's final presidential debate didn't add much to the font of human knowledge about the two candidates," noted CMC Markets UK Chief Market Analyst Michael Hewson.
"There was sparring over a range of subjects, including the pandemic, personal finances, a national minimum wage and health care; however neither of them managed to land what could be construed a significant blow. Even if they were, so many Americans have already voted that it probably wouldn’t have made much difference."
In the US on Thursday, the Dow Jones Industrial Average and S&P 500 gained 0.5%, while the Nasdaq Composite added 0.2%.
The Shanghai Composite was down 0.1% on Friday afternoon, though the Hang Seng was up 0.5%. Tokyo's Nikkei 225 was 0.4% higher in late trade.
"The positive finish in the US is likely to bleed through into a positive open for European stocks this morning; however the economic uncertainty being wrought through Europe by the various restrictions and rising infections is likely to be reflected in today's latest October flash manufacturing and services PMIs for France, Germany, and the UK," Hewson added.
Hewson noted France and Germany already saw weakness in the services sector back in September, a result of a resurgence of the virus. The UK was "more resilient" however, getting a boost from the Eat Out to Help Out scheme in August, though it did come out of lockdown later, the analyst explained.
PMI readings from France, Germany and the eurozone are released at 0815, 0830 and 0900 BST. The UK print is at 0930 BST before the US counterpart at 1445 BST. The UK also has retail sales figures at 0700 BST.
Flash data from Japan showed the country's private sector deteriorated further in October.
The headline au Jibun Bank Japan manufacturing purchasing managers' index - which measures the overall health of the manufacturing sector - edged up to 48.0 in October from 47.7. It was the slowest deterioration since January, but with the figure below the 50.0 no-change mark, numbers show the sector is still in decline.
The services business activity index, meanwhile, slipped to 46.6 in October from 46.9 seen in September.
Against the yen, the dollar was trading at JPY104.70 early Friday in London, down JPY104.83 at the London market close on Thursday.
The UK corporate calendar on Friday has third-quarter results from lender Barclays, hotel operator InterContinental Hotels Group, and London Stock Exchange Group.
"From the peak in June through the low in September, Barclays shares lost over a third of their value. They have recouped some of the losses though October and are holding above GBP100. There has been no love lost for the big banks in this crisis despite healthier balance sheets," London Capital Group's Jasper Lawler explained.
"That owes to expectations for huge loan losses due to the pandemic, the prospect of negative interest rates and an uncertain Brexit outcome. It's unlikely the third-quarter will replicate the 83% rise in FICC trading revenue from second-quarter but Barclays does have the benefit of its investment banking revenues to offset the woes in retail banking."
Barclays shares closed up 1.5% on Thursday, but are down 42% so far this year.
Late Thursday, drug maker Gilead Sciences said its antiviral remdesivir medication has been approved by the US Food & Drug Administration to treat Covid-19.
The drug can now be used for adults and paediatric patients for the treatment of Covid-19 during hospitalisation, and the FDA has also issued an emergency use authorisation for the use of remdesivir to treat patients under 12 years old.
Gilead shares ended 0.8% higher in New York on Thursday before jumping 7.1% after hours.
"The approval of Remdesivir by the FDA as the first drug to treat Covid-19 is a big positive for markets beset by second wave concerns," Lawler added.
Brent oil was quoted at USD42.28 a barrel, down from USD42.70 at the London equities close Thursday.
Gold climbed above the USD1,9000 mark again. The yellow metal fetched USD1,906.11 an ounce, up from USD1,898.00.
By Eric Cunha; [email protected];
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