ADVFN Morning London Market Report: Monday 30 November 2020

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London open: Stocks edge higher, FTSE 100 on track for best month in 30 years

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London stocks edged higher in early trade on Monday, with the FTSE 100 on track for its best month in more than 30 years, having rallied 14% so far in November.

At 0855 GMT, the FTSE 100 was up 0.3% at 6,385.80.

Investors were digesting the latest manufacturing data out of China. The official manufacturing PMI rose to 52.1 in November from 51.4 the month before, marking the fastest of rate of expansion in three years. Meanwhile, the services PMI reading came in at 56.4 from 56.2 in October, ahead of consensus expectations of 56.0 and marking the best level of growth since 2012.

On home shores, Brexit was in focus. Foreign Secretary Dominic Raab said over the weekend that this week will be “very significant”. He told the BBC that negotiations between the UK and the UK were down to their final two basic issues and a deal was possible if the EU showed some pragmatism.

Richard Hunter, head of markets at Interactive Investor, said: “Brexit remains centre stage as the outcome of the negotiations is still undecided. Investors are hoping that a last-gasp compromise will prevent the economic pain of a no-deal to both parties, and for the UK this has particular ramifications given the parlous state of the economy both now and post-pandemic – further deterioration of the nation’s finances would be a material blow.

“With very little corporate news this week, the macro issues are likely to come under further focus as we move into the final month of the year. The FTSE 100 has had a much improved November, being lifted by the global tide of improved sentiment especially on vaccine news, and the index has spiked by 14%. Even so, the fact that it remains down by 16% in the year to date gives context to what has been a tumultuous year.”

In equity marketsJD Sports surged following reports over the weekend that it is considering backing away from a proposed rescue of beleaguered department store chain Debenhams.

Indivior shares rallied after the opioid addiction treatment maker said a £1.1bn claim against it by Reckitt Benckiser, which has yet to be served on the company, is “without merit” and that it has “strong grounds” for defending itself should the claim be served. The stock tanked at the end of last week on news of the claim.

Frasers Group ticked higher after confirming it had offered a £50m loan to Philip Green’s Arcadia retail group, currently on the verge of collapse.

Lloyds Banking Group was also a little higher after it hired Charlie Nunn, HSBC’s head of retail banking, as the FTSE 100 lender’s next chief executive.

On the downside, Royal Dutch Shell and BP were both lower as oil prices fell.

In broker note action, homeware retailer Dunelm was boosted by an upgrade to ‘outperform’ at RBC Capital Markets, while Bodycote was knocked lower by a downgrade to ‘underweight’ at JPMorgan.

 

Top 10 FTSE 100 Risers

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# Name Change Pct Change Cur Price
1 Experian Plc +4.33% +112.00 2,697.00
2 Spirax-sarco Engineering Plc +3.09% +335.00 11,185.00
3 Pearson Plc +2.77% +18.00 668.00
4 Intertek Group Plc +2.73% +150.00 5,652.00
5 Rentokil Initial Plc +2.53% +12.40 503.20
6 Bunzl Plc +2.50% +58.00 2,374.00
7 Kingfisher Plc +2.14% +5.80 276.70
8 London Stock Exchange Group Plc +2.05% +162.00 8,082.00
9 Astrazeneca Plc +1.93% +150.00 7,920.00
10 Segro Plc +1.86% +16.80 918.20

 

Top 10 FTSE 100 Fallers

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76.4% of retail CFD accounts lose money.

 

# Name Change Pct Change Cur Price
1 Fresnillo Plc -4.86% -54.00 1,058.00
2 Easyjet Plc -3.03% -25.40 813.40
3 Flutter Entertainment Plc -2.63% -360.00 13,345.00
4 Bt Group Plc -2.14% -2.60 118.70
5 Bp Plc -1.90% -5.00 257.90
6 Micro Focus International Plc -1.66% -6.10 361.90
7 Carnival Plc -1.63% -23.00 1,390.00
8 Hsbc Holdings Plc -1.57% -6.35 398.50
9 Royal Dutch Shell Plc -1.49% -19.40 1,284.60
10 Royal Dutch Shell Plc -1.33% -17.80 1,321.60

 

Monday newspaper round-up: London jobs, car makers, easyJet

London has suffered the biggest fall in job opportunities among Europe’s biggest cities, according to a report showing that national capitals across the region have been damaged most by Covid-19. Britain’s capital is also among five of the biggest cities in western Europe – London, Berlin, Madrid, Paris and Rome – that have recorded a larger drop in new job adverts than elsewhere in their respective countries, according to Indeed. – Guardian

Carmakers are bracing for the final Brexit deadline by moving cars and parts both ways across the Channel to make sure they are not hit by tariffs if the UK and EU fail to agree a trade deal. Trade between the UK and EU will be governed by new rules from 1 January, but the imported cars will become 10% more expensive overnight if tariffs are imposed under the World Trade Organization regime. – Guardian

City crisis experts have parachuted into easyJet as it attempts to refinance more than £1.4bn of debt owed to taxpayers and lenders. The budget airline has called in AlixPartners to assist with cash flow forecasting amid crisis talks with Whitehall officials and banks. EasyJet had its finances red-flagged by auditors earlier this month as it slipped into the red for the first time with a £1.3bn pre-tax loss. – Telegraph

The former owner of Little Chef is eyeing more than 40 pubs being sold in the wake of Stonegate’s £3bn takeover of Ei Group. Buy-out fund RCapital is understood to be among the suitors for 42 pubs that are being auctioned off to secure competition approval for the mammoth tie-up. Stonegate Pubs, which is backed by TDR Capital and owns chains Slug & Lettuce and Yates, swooped on Ei last year to create an industry giant with nearly 5,000 pubs and bars. – Telegraph

Britain’s leading business lobby group “must change” as the country leaves the European Union and grapples with the economic cost of coronavirus, according to its new director-general. Tony Danker, who starts at the CBI today, is calling for an overhaul of its relationship with Downing Street after turbulence since the Brexit referendum. Writing in The Times, he argues that the pandemic amounts to a “wake-up call” for the UK, which must “grab this moment” and boost productivity and invest in innovative industries. – The Times

 

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