4th Dec 2019 08:37
(Alliance News) - The FTSE 100 extended the week's losses early Wednesday as a risk-off mood prevailed amid worries over US President Donald Trump's latest trade comments.
The FTSE 100 index was down 11.37 points, or 0.2%, at 7,147.39. The FTSE 250 was up 11.53 points, or 0.1%, at 20,512.46, and the AIM All-Share was up 0.1% at 906.94.
The Cboe UK 100 was down 0.3% at 12,106.41, the Cboe UK 250 was up 0.1% at 18,447.12, and the Cboe Small Companies flat at 11,359.06.
In European equities on Tuesday, the CAC 40 in Paris was up 0.1%, while the DAX 30 in Frankfurt was 0.1% higher.
In Asia on Wednesday, the Japanese Nikkei 225 index closed down 1.1%. In China, the Shanghai Composite ended down 0.2%, while the Hang Seng index in Hong Kong ended down 1.2%.
"Asian equity markets are down overnight following a third consecutive decline on Wall Street. President Trump's comment that a trade deal between the US and China may not be agreed until after next year's US elections rattled markets," said Lloyds Banking.
"If a deal is delayed a crucial issue for markets will be whether the US goes ahead with planned tariff hikes on 15th December," said Lloyds.
US data later in the day will be of interest, the bank added, but the focus in markets will primarily be on any news about trade negotiations.
In the economic calendar on Wednesday, there are services PMIs from Germany, the eurozone, the UK and the US at 0855 GMT, 0900 GMT, 0930 GMT and 1445 GMT respectively.
Outside of this, there are ADP employment data in the US at 1315 GMT, which comes ahead of Friday's non-farm payrolls.
Already out, PMI data showed China's total business activity in November expanded at a 21-month high as manufacturing and services expanded.
The Caixin China composite output index for November reached 53.2 from the 52.0 reported in October, indicating the highest rate of growth since February 2018. Caixin said the rise was driven by strong performances from both the manufacturing and services sectors, in particular an accelerated increase in activity from services.
The services business activity index rose to 53.5 from 51.1 in October, a seven-month high. Companies widely commented on planned expansions, new projects and an improvement in overall demand conditions, Caixin said.
In forex, sterling was quoted at USD1.3038 early Wednesday, up from USD1.2999 at the London equities close on Tuesday.
The euro was quoted at USD1.1084 early Wednesday, flat on USD1.1089 late Tuesday. Against the yen, the dollar was quoted at JPY108.45, also flat versus JPY108.50.
"As long as there is no escalation in trade war rhetoric and the dollar is not stronger, risk currencies should regain support and exert limited downside," said ING.
In commodities, gold was quoted at USD1,482.84 early Wednesday, higher compared to USD1,480.64 at the London equities close on Tuesday as the safe haven asset firmed amid Tuesday's caution.
Brent was quoted at USD61.18 early Wednesday, higher than USD60.96 at the London equities close on Tuesday.
In a relatively quiet day for company news in London, SEGRO was down 1.6% after RBC cut the property investor to Underperform from Sector Perform.
M&C Saatchi opened down more than 50% and remained down 39% in morning trade after saying it will make downward adjustments of GBP11.6 million following an independent review by PwC.
In addition, the company unveiled a hefty profit warning for 2019.
The advertising firm in September engaged PwC's Forensic Services group to perform a review of issue identified by an internal review of several UK subsidiaries. Following the review, the company judged it would take adjustments of GBP11.6 million.
Of the total proposed adjustments, GBP9.6 million is considered to relate to 2018 and will be treated as a prior period adjustment, and GBP2.1 million to 2019. The company said it will be taking action to ensure that the accounting misstatements which led to the review do not recur.
Separately, the company said underlying pretax profit for 2019 is expected to be "significantly lower" than expected at the time of its interim results release and, in addition, the company has incurred substantial central costs in its UK business.
Underlying pretax profit for 2019 is expected to be 22% to 27% below 2018 on a like-for-like basis.
"The trading performance in the second half of this year is disappointing. However our operating businesses remain strong, creative and competitive and we expect that, when combined with the impact of our restructuring coming through, we will have a stronger trading performance in 2020," said Chief Executive David Kershaw.
Stock Spirits, up 2.4%, reported a rise in both revenue and profit for its recently ended financial year.
Revenue surged to EUR312.4 million for the financial year to September 30 from EUR193.8 million a year ago.
On a proforma basis - due to the fact Stocks Spirits has changed its year-end to September from December - revenue was EUR282.4 million in the 2018 financial year, up 11%.
The central and eastern Europe-focused alcohol maker reported pretax profit rose 24% proforma to EUR38.2 million from EUR30.7 million. Volumes were up 8.5% on a proforma basis to 14.4 million nine-litre cases.
"While there are challenges in certain areas of our business, notably in managing any impact that might result from the proposed excise tax increases in the Czech Republic and Poland, we remain confident in the strength of our brands, the quality of our people and the viability of our strategy. As a result, we feel well positioned for future success," the company said.
By Lucy Heming; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
STCK.LSegroM&C Saatchi