(Alliance News) – The FTSE 100 was expected to open higher on Thursday morning, in a sudden reversal of sentiment as market participants await data from the UK, US Composite Purchasing Managers’ Index -United and other regions.
The index was previously announced down 0.1%.
“The geopolitical situation in the Middle East is tense, and the doves at the Federal Reserve are worried in view of the better-than-expected tremors and the ADP report announced earlier in the week,” commented Ipek Ozkardeskaya of Swissquote.
“Yesterday’s ADP report showed that the U.S. economy added about 142,000 new private jobs last month, far more than the 124,000 analysts expected…but we’re also not seeing the kind of figures that would maintain expectations of another Fed rate cut in November.”
On commodities, Ozkardeskaya said: “Oil prices rose yesterday as Israel promised to take retaliatory measures against Iran and G7 leaders announced they were preparing to impose new sanctions on Iran… some bullish voices are being heard, putting the objective of 100 USD per barrel back on the table.
“But I think it will be difficult for us to see the US crude oil barrel exceed the 88-90bp range in the event of a serious deterioration in the situation in the Middle East, as OPEC prepares to announce the end of its oil production restrictions. by the end of the year, with Saudi Arabia moving towards a strategy where it will attempt to increase its market share rather than prop up oil prices.”
Here’s what you need to know when the London market opens:
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MARKETS
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FTSE 100: opening up 0.2% to 8,304.83
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Hang Seng: down 1.4% to 22,133.35
Nikkei 225: closes up 2.0% at 38,552.06
S&P/ASX 200: closes up 0.1% at 8,205.20
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DJIA: closes up 39.55 points, 0.1%, at 42,196.52
S&P 500: closes up 0.79 points at 5,709.54
Nasdaq Composite: Closes up 14.76 points, 0.1%, at 17,925.12
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EUR: down to 1.1032 USD (1.1046 USD)
GBP: down to 1.3167 USD (1.3271 USD)
USD: up to 146.60 JPY (146.06 JPY)
Or : hausse à 2 655,30 USD l’once (2 650,17 USD)
(Brent: up to USD 74.86 per barrel (USD 74.05)
(changes since the last close of London stock markets)
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ECONOMY
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The main economic events of Thursday are still to come:
Chinese National Day. Closure of financial markets in Shanghai. Hong Kong open.
14:30 BST Canada PMI composite
09:00 BST Eurozone Composite PMI
10:00 BST zone euro PPI
08:50 BST France PMI composite
08:55 BST Germany Composite PMI
08:45 BST Italie PMI composite
09:30 BST UK Composite PMI
1:30 p.m. BST First assessment of unemployment in the United States
14:45 BST US Composite PMI
15:00 BST US Factory Orders
15:00 BST US ISM services PMI
15:30 BST US EIA stocks de gaz naturel
15:00 BST Total US vehicle sales
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Japan’s services economy continued to grow in September, although at a slower pace than in August, according to survey results released by S&P Global. Jibun Bank’s Services Purchasing Managers’ Index fell slightly to 53.1 points in September from 53.7 in August. This result is lower than the flash estimate released last week, which indicated an improvement in the index to 53.9 in September. As it approaches the neutral 50-point bar that separates growth from contraction, the index indicates a deceleration in growth. Jibun Bank’s composite PMI fell to 52.0 points in September from 52.9 in August. The final reading was lower than the flash estimate of 52.5. S&P Global said the increase in order books was driven by the services sector, while manufacturers reported a slight decline in new work.
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The services sector continued to drive the Irish economy as a whole last month, while the manufacturing sector continued to contract, according to results from S&P Global’s Purchasing Managers’ Index survey. The AIB Ireland Services Activity Index rose to 55.7 points in September, up from 53.8 in August, marking the second fastest pace of expansion in 14 months, after 56.6 March points. However, the composite production PMI index fell to 52.1 points last month from 52.6 in August, showing that overall private sector growth was held back by the manufacturing sector. Published on Tuesday, the manufacturing PMI index fell to 49.4 points in September, compared to 50.4 in August.
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The Bank of England is monitoring the crisis in the Middle East, fearing that a worsening conflict between Iran and Israel could make it impossible to stabilize oil prices, according to the Guardian. Gov. Andrew Bailey told the newspaper he was watching developments “very closely” and that there were limits to what could be done to keep the cost of crude from rising if things ” were getting really bad.” In a wide-ranging interview with the Guardian, Mr Bailey hinted at the possibility that the bank could become “a little more aggressive” in cutting interest rates, provided inflation news continues to come. be good. Mr. Bailey also said the economy has proven more resilient than he feared two years ago, or even a year ago. “I think the economy has weathered the shocks of the last five years better than many of us feared. So there is a base to build on.”
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CHANGES IN BROKER RATINGS
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Citigroup upgrades National Grid to “neutral” (buy) – price target 1,050 (985) pence
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Morgan Stanley reduces British American Tobacco to “underweight”
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Barclays reduces Old Mutual to ‘underweight’ (equal weight) – target price 62 (67) pence
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COMPANIES – FTSE 100
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Supermarket group Tesco, Britain’s biggest retailer, said its net profit rose in the first half as cost pressures eased for consumers and businesses. Pre-tax profit rose 20% to £1.1bn in the six months ending August 24, compared to the previous year, with sales rising as inflation slowed, it said Tesco in a press release. The company also increased its interim dividend by 10% to 4.25p, up from 3.85p. Turnover increased by 3.1% to £35.18 billion excluding VAT, and like-for-like sales increased by 2.9%. Looking ahead, the company expects adjusted operating profit of £2.9 billion for the full financial year, up from “at least £2.8 billion” previously.
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COMPANIES – FTSE 250
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In a pre-closing update, SSP said its fourth-quarter revenue increased 15% on a constant currency basis, while sales on a constant currency basis increased 6%. For the full year ended September 30, SSP estimates that turnover rose 17% annually to £3.5 billion, and that operating profit rose by around 30% to be between £210 million and £220 million. “The good underlying business momentum continued through the end of the financial year, leaving SSP well positioned to deliver full-year results in line with previously published planning assumptions,” commented l ‘business.
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OTHER COMPANIES
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Following a strategic review, nanomaterials maker Nanoco said it has appointed CDX Advisors LLC as its financial advisor to achieve the best possible financial outcome and secure the long-term future of the intellectual property and group activities. Nanoco, however, insisted that its considerable financial resources mean that the commercial activity will continue to be supported to grow and not compromise its potential. The company said it intends to return excess cash to shareholders in the 2025 financial year, commencing with the release of its results for the year ended July 31. Additionally, Nanoco said it was taking steps to “rationalize” its cost base, with non-executive directors having to agree to defer payment of at least 50% of their director fees until the end of the term. financial year or until the potential sale of the trading business, whichever occurs first, the accrued liability then being satisfied by ordinary shares of 10.0 pence each.
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By Emma Curzon, journalist at Alliance News
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