24th Apr 2020 12:06
(Alliance News) - Stocks in London were mixed at midday on Friday after a study into a potential coronavirus treatment was halted following inconclusive results.
Gilead Sciences on Thursday insisted trial results for remdesivir as a possible coronavirus treatment were "inconclusive" and trends in the data suggest a "potential benefit".
On Thursday, the Financial Times reported that a trial showed Gilead's remdesivir did not improve patients' condition or reduce the pathogen's presence in the bloodstream. The drug also showed significant side effects in some, which meant 18 patients were taken off it.
Gilead's stock was down 4.3% in pre-market trade in New York.
The FT cited draft documents published accidentally by the World Health Organization.
The FTSE 100 index was down 46.95 points, or 0.8%, at 5,779.66, but is on track to end the week up 2.5%.
The mid-cap FTSE 250 was flat at 15,793.77, and the AIM All-Share was up 0.5% at 778.75.
The Cboe UK 100 was down 0.7% at 9,781.72, the Cboe UK 250 was down 0.2% at 13,620.74, and the Cboe Small Companies flat at 8,799.74.
In Paris the CAC 40 was down 0.9%, while the DAX 30 in Frankfurt was down 0.8%.
"European equity markets are broadly weaker following on reports Gilead's Remdesivir drug isn't what it was cracked up to be. It had been indications of early positive results for treating Covid-19 patients with the drug that sent markets up at the tail end of last week. We should note these are all leaked reports and the data is sketchy at best. What it shows is how the market is prepared to read into positive vaccine or anti-viral news with extreme optimism, setting the bar high for disappointment," said Markets.com analyst Neil Wilson.
On the London Stock Exchange, housebuilders were once again among the blue-chip risers after positive news from Persimmon.
Taylor Wimpey was up 2.3%, Barratt Developments, up 2.1%, while Persimmon was up 0.5%.
York-based Persimmon on Friday said it will begin a phased re-opening of its construction sites, starting Monday, following similar announcements made by Taylor Wimpey and Vistry Group earlier this week.
The FTSE 100-listed housebuilder also said it has achieved about 820 gross private sales in the five weeks to April 19, as its sales staff continues to work from home.
Cancellation rates remain at historically low levels, Persimmon added.
Persimmon has not made use of the UK government's Coronavirus Job Retention Scheme to furlough staff and has no current plans to access any of the government's COVID-19 funding programmes and continues to pay all taxes.
At the other end of the large-cap index, Meggitt was the worst performer, down 5.3% after Societe Generale cut the aerospace parts maker to Sell from Hold.
The pound was quoted at USD1.2328 at midday, down from USD1.2391 at the London equities close on Thursday, after disappointing UK retail sales figures.
Retail sales in the UK saw the sharpest fall on record last month as clothing sales plunged by a third, according to new figures.
The Office for National Statistics said that total sales volumes dived 5.1% month-on-month as many stores shut their doors in the face of the coronavirus. On an annual basis, retail sales were down 5.8% against market expectations of a 4.7% drop.
The ONS added that clothing store sales saw a particularly sharp fall when compared with February, moving 35% lower.
The euro stood at USD1.0765 at midday, down from USD1.0835 late Thursday.
EU leaders tasked the European Commission with drawing up a recovery plan for the looming recession after talks hailed as a step forward on Thursday, though others warned that difficult negotiations lie ahead.
The package of financial stimulus is expected to total at least EUR1 trillion, but virtually all details remain unresolved. The recovery fund is to be anchored within the next EU long-term budget, commission President Ursula von der Leyen said after the EU video summit.
"If we do it well and succeed, then the investments will have been worth every single cent we pay," she stressed, adding that the proposal should be ready by mid-May.
Against the yen, the dollar was trading at JPY107.65, flat from JPY107.60 late Thursday.
Stocks in New York are set for a higher open amid fresh stimulus measures to help the ailing US economy.
The DJIA was called up 0.6%, the S&P 500 index up 0.4% and the Nasdaq Composite up 0.5%.
The House of Representatives passed a new USD483 billion economic stimulus bill Thursday as US job losses due to the coronavirus soared and businesses clamoured for more support.
In scenes never witnessed in the tradition-bound US Congress, lawmakers covered their faces with masks and voted in small groups as the House of Representatives overwhelmingly approved a USD483 billion stimulus plan. The money will back small businesses on the brink of bankruptcy, and hard-pressed hospitals. It comes on top of USD2.2 trillion package enacted in late March.
Gold was quoted at USD1,729.10 an ounce at midday, down from USD1,737.15 at the equities close Thursday.
Brent oil was quoted at USD21.26 a barrel at midday, lower against USD22.78 late Thursday.
By Arvind Bhunjun; [email protected]
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