24th Aug 2018 11:54
LONDON (Alliance News) - Stocks in London were marginally higher at midday on Friday ahead of a highly anticipated speech from the head of the US Federal Reserve.With US-China trade talks demoting a lack of significant progress, investors will now shift focus to a speech by Federal Reserve Chairman Jerome Powell in the afternoon for fresh updates on the outlook for the US economy. Investors also adopted a cautious stance ahead of the long bank holiday weekend in the UK.The FTSE 100 index was up 0.1%, or 10.10 points at 7,573.32. The FTSE 250 was up 0.2%, or 31.14 points, at 20,696.00, and the AIM All-Share was down 0.3%, or 3.69 points, at 1,088.86.The Cboe UK 100 was up 0.1% at 12,831.08, the Cboe UK 250 was up 0.1% at 18,783.21, and the Cboe UK Small Companies was up 0.1% at 12,342.86.On the London Stock Exchange, Antofagasta was the best blue chip performer, up 3.2% after RBC Capital upgraded the Chilean copper miner to Outperform from Sector Perform. Shire was up 2.2% after the US Food & Drug Administration has approved the Irish pharmaceutical company's Takhzyro drug to treat a rare genetic disease. The disease, hereditary angioedema, causes attacks of swelling in different parts of the body and can be life-threatening. Approval from the FDA follows a phase III study of 125 patients in which Takhzyro reduced monthly attacks by, on average, 87% in patients when compared with a placebo.Miners were also higher with Anglo American, up 1.6%, Rio Tinto, up 1.1%, BHP Billiton, up 1.1%. "A rebound in copper, platinum and palladium has helped mining stocks. The cooling of the Chinese economy has triggered major volatility in the metals market, as investors are worried about future demand. For the time being, the size of the tariffs being imposed on Chinese goods imported into the US are relatively small, but if it is drawn out, it could chip away at growth," said David Madden, market analyst at CMC Markets.Conversely, housebuilders were weighing on the large cap index amid a decline in UK mortgage approval figures in July.Berkeley Group was down 1.8%, Barratt Developments, down 1.6%, Persimmon, down 1.1%, Taylor Wimpey, down 1.0%.The number of mortgages approved in July fell to 39,584 from 40,330 in June. Economists had forecast approvals to rise to 40,650, data from UK Finance showed. "Housebuilders have taken a knock as a double whammy of lower new approved mortgages and a five-month low in mortgage lending weighed on the sector," IG Group analyst Chris Beauchamp said. Additionally, midcap peers McCarthy & Stone, Bovis Homes and Bellway were down 1.6%, 1.4% and 0.9%, respectively. Sterling was quoted at USD1.2823 at midday, compared to USD1.2830 at the London equities close on Thursday. The pound was flat with investors unmoved by new details covering a "no deal" Brexit unveiled by Brexit Secretary Dominic Raab on Thursday. In mainland Europe, the CAC 40 in Paris was up 0.5% while the DAX 30 in Frankfurt was up 0.2%.The euro was flat against the dollar quoted at USD1.1565 at midday, from USD1.1569 at the European equities close Thursday, following solid Germany GDP data. Germany's economy expanded at a faster pace as initially estimated on domestic demand in the second quarter, detailed data from Destatis showed.The largest euro area economy grew 0.5% sequentially, following the 0.4% increase in the first quarter. The rate came in line with the estimate released on August 14.On a yearly basis, gross domestic product advanced at a faster pace of 2.3% after expanding 1.4% a quarter ago. Meanwhile, the calendar-adjusted GDP growth slowed slightly to 2% from 2.1%. Both annual rates matched expectations.Stocks in New York were set for a higher open as Fed Chair Powell gets set to take the stage at the Economic Policy Symposium in Jackson Hole.The DJIA, the S&P 500 index and the Nasdaq Composite were all called up 0.2%.Powell will make his maiden address to some of the world's most prominent central bankers at the gathering in Wyoming at 1500 BST, a week after US President Donald Trump took aim at the Fed chair.Earlier this week, the Fed has pencilled in two more interest rate hikes this year despite risks from trade conflicts and emerging market turmoil.In response, Trump reiterated his criticism of the Fed's monetary policy, saying he was "not thrilled" with the central bank for raising interest rates and that it should do more to help boost the US economy. It remains to be seen whether Powell will respond to Trump's criticism.Powell was hand picked by Trump to lead the US central bank.Related Shares:
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