12th Oct 2018 07:39
LONDON (Alliance News) - Stocks in London are seen opening higher on Friday, rebounding from steep losses on Thursday after Asian markets stabilised, while Ashmore and Man Group reported increases in assets under management. IG futures indicate the FTSE 100 index is to open 37.24 points higher at 7,044.10. The blue chip index closed down 1.9%, or 138.88 points, at 7,006.86 on Thursday.In early UK corporate news, emerging markets-focused fund manager Ashmore Group reported a USD2.5 billion increase in assets under management, as clients responded positively to price volatility across a range of emerging markets asset classesFor the first quarter to September-end, the company reported a 3.0% quarter-on-quarter rise in assets under management to USD76.4 billion from USD73.9 billion, with net inflows of USD1.9 billion.The asset manager said emerging markets were volatile during the quarter, mainly in local currency-denominated countries; however sentiment improved towards the end of the period due to positive developments in high-profile countries."Given the likelihood for mispricing around near-term events such as elections in the US and several emerging markets countries, we anticipate there will be more opportunities to buy attractively-valued assets and to embed long-term value into portfolios," said Chief Executive Mark Coombs. Meanwhile, hedge fund manager Man Group said funds under management increased in the third quarter amid "positive investment movements". For the third quarter to September-end, Man reported a slight rise in funds under management of USD114.1 billion against USD113.7 billion in the previous quarter. Net inflows in the third quarter were USD400 million despite the previously announced USD2.2 billion hit from a "very low" margin infrastructure mandate, which had already been anticipated.Man said positive investment movements offset negative foreign exchange and other movements, due to the dollar strengthening against sterling.In addition, the company added, investment performance in the quarter was mixed with strong absolute and relative performance in momentum and discretionary long only strategies, but weaker relative performance in its discretionary alternative and systematic equity strategies. "Looking forward, Man Group is well positioned, with strong fundamentals, and we remain focused on enhancing our technology platform and continuing to develop innovative strategies for our clients," said Chief Executive Luke Ellis. Rio Tinto told an aluminium investor roadshow on Thursday it expects aluminium demand to grow around 3.2% per annum for the next five years amid a "strong demand outlook".China is expected to be broadly balanced in aluminium in the medium- to long-term, the miner said, and is anticipated to drive demand for seaborne bauxite. Rio Tinto said China is showing "determination" to curb overcapacity and reduce pollution.Diploma acquired Actios, the parent company of the Gremtek Group, for an undisclosed price. The technical products supplier explained that Gremtek is a supplier of sleeving and cable identification products, mostly based in Germany and France.The acquisition, which will be "immediately earnings enhancing", is part of Diploma's strategy to expand in Europe and provide complementary products to its Interconnect division's markets.In the economic events calendar there are eurozone industrial production data at 1000 BST.The pound was quoted at USD1.3230 early Friday, up from USD1.3192 at the London equities close Thursday,In domestic political news, UK Prime Minister Theresa May has briefed key ministers on the Brexit negotiations amid speculation the government is moving closer to a deal with Brussels.Following the meeting of the "inner Cabinet" in Downing Street on Thursday, Government Chief Whip Julian Smith insisted ministers were united behind the PM's strategy.However, Westminster was rife with speculation of possible resignations if May gives too much ground to the EU in her attempt to win an agreement.In the US on Thursday, Wall Street ended sharply lower, with the Dow Jones Industrial Average and S&P 500 down 2.1% and Nasdaq Composite down 1.3%.US stocks extended losses to post their worst two-day stretch in eight months amid worries about rising interest rates as well as the escalating US-China trade war. The Nasdaq fell to its lowest closing level in five months, while the S&P 500 and the Dow hit three-month and two-month closing lows, respectively.In the US corporate calendar on Friday banking giants Citigroup, JPMorgan and Wells Fargo will report earnings before the market open in New York.The Japanese Nikkei 225 index closed up 0.5% on Friday. In China, the Shanghai Composite is up 0.5%, while the Hang Seng index in Hong Kong is up 1.6%.China's foreign trade grew robustly in September, despite the escalating trade war with the US, official customs data showed. China's exports, in dollar amounts, soared 15% in September compared to the same period last year, reaching USD226.7 billion. Meanwhile, imports jumped 14% year-on-year to USD195 billion.China's strong domestic demand continues to drive foreign trade, despite its souring relationship with the US. Companies are also believed to be rushing to fill orders before the situation further deteriorates.Related Shares:
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