ADVFN Morning London Market Report: Tuesday 16 February 2021

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London open: Stocks edge up on vaccine optimism; Glencore rallies after results


London stocks edged higher on Tuesday as vaccine optimism and recovery hopes underpinned sentiment.

The FTSE 100 was 0.3% firmer at 6,775.66, while sterling was up 0.2% against the dollar at 1.3926.

Spreadex analyst Connor Campbell said: “If lacking the same hutzpah as on Monday, the European markets at the very least defended the week’s peaks on Tuesday.

“The FTSE was the rare index to push forth after the bell; but, then again, its highs are recent not record. It was a fairly predictable start from the FTSE, following up Monday’s blowout gains – spurred on by the UK speedily reaching a key milestone in the race to vaccinate the nation -with a timid, contemplative open.”

In equity markets, miner Glencore rallied after its full-year adjusted earnings beat expectations and it reinstated its dividend.

Asia-focused banks HSBC and Standard Chartered were also on the front foot.

Serco surged after the outsourcer agreed to buy Whitney, Bradley & Brown, a provider of advisory, engineering and technical services to the US military, for $295m.

Rotork was also in the black after an upgrade to ‘buy’ at Jefferies.

Travel company TUI and cinema chain Cineworld were high risers, likely boosted by hopes that vaccines will allow a return to more normal life by spring.

On the downside, Australian mining giant BHP ticked lower even as it declared a record interim dividend after reporting a rise in profits driven by Chinese demand for iron ore.

Homeware retailer Dunelm slumped after deputy chairman Will Adderley sold 15m shares in the company – a stake of about 7.4% – at a 9% discount to the closing share price on Monday.


Top 10 FTSE 100 Risers

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# Name Change Pct Change Cur Price
1 Tui Ag +5.98% +20.70 366.70
2 Easyjet Plc +3.09% +25.20 840.80
3 Hsbc Holdings Plc +3.02% +12.40 422.85
4 Glencore Plc +2.94% +8.30 290.60
5 Rio Tinto Plc +2.55% +158.00 6,344.00
6 Rolls-royce Holdings Plc +2.48% +2.38 98.46
7 International Consolidated Airlines Group S.a. +2.13% +3.40 162.95
8 Standard Chartered Plc +1.97% +9.50 490.60
9 Evraz Plc +1.72% +9.20 544.40
10 Bp Plc +1.52% +4.25 283.15


Top 10 FTSE 100 Fallers

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# Name Change Pct Change Cur Price
1 Carnival Plc -2.38% -32.50 1,330.50
2 Compass Group Plc -2.01% -30.00 1,466.00
3 Pearson Plc -1.29% -10.00 767.40
4 Kingfisher Plc -1.07% -3.00 276.60
5 Informa Plc -0.98% -5.20 522.80
6 Astrazeneca Plc -0.85% -63.00 7,359.00
7 Whitbread Plc -0.70% -24.00 3,411.00
8 Taylor Wimpey Plc -0.68% -1.15 167.35
9 Persimmon Plc -0.67% -19.00 2,819.00
10 Burberry Group Plc -0.65% -12.00 1,846.00


Europe open: Shares look for direction after Monday’s gains

European shares were looking for direction on Tuesday after sharp gains in the previous session on the back of economic recovery hopes and the long-awaited US stimulus package.

The pan-European Stoxx 600 was up 0.2%, after Monday’s 1.3% rise. Regional bourses were mixed with the UK FTSE 100 outperforming, up 0.43% as the country’s health service met its first Covid vaccination target of elderly people.

Germany’s DAX and France’s CAC were flat as investors eyed a flash GDP reading for the Eurozone, tipped to show a fourth quarter contraction of 0.7%, and German economic sentiment numbers.

With the US market closed on Monday for the President’s Day holiday investors were also watching progress on President Joe Biden’s $1.9trn economic rescue plan.

In equity news Glencore jumped 2.3% after reinstating its dividend, while BHP Group rose 0.3% as the world’s largest listed miner posted its best first-half profit in seven years and declared a record interim dividend.

Travel company TUI and cinema chain Cineworld were high risers, likely boosted by hopes that vaccines will allow a return to more normal life by spring.


Tuesday newspaper round-up: Brexit dividend, gigafactory, RBS

The government should force banks to let customers block all betting transactions, according to proposals led by the online lender Monzo, which wants gambling firms to hand over data to make sure the system is watertight. In a letter to the sports minister, Nigel Huddleston, who is leading a landmark review of gambling law, Monzo, campaigners and addiction experts called on the government to use the opportunity to remove obstacles for people who want to stop betting. – Guardian

Britain’s foremost economics thinktank has urged Rishi Sunak to use next month’s budget to announce a targeted extension of government support to tackle a “triple challenge” to the economy from Brexit, Covid and global heating. The Institute for Fiscal Studies said the chancellor needed to steer clear of raising taxes in response to record peacetime borrowing of about £400bn inflicted by the coronavirus pandemic and called on him instead to focus on supporting the UK’s economic recovery from lockdown. – Guardian

Regulators must launch an unprecedented overhaul of red tape so Britain can seize on a “Brexit dividend” to boost the economy, according to a major report into the country’s competition regime. Watchdogs have a once in a generation opportunity to update their rules outside the orbit of Brussels so they can focus ruthlessly on promoting competition and protecting consumers, the report’s author Tory MP John Penrose says. – Telegraph

Coventry airport could house a factory making batteries for electric vehicles as efforts to phase out the fossil fuel engine gather pace. The site has been picked by the West Midlands Combined Authority as the preferred site for a “gigafactory” in the region. Coventry City Council is now working with the airport’s owners to submit a planning application for the site to be used for battery manufacturing. – Telegraph

Banking customers at the state-backed Royal Bank of Scotland are the least satisfied in Britain, an industry-wide poll has found. Only 47 per cent of customers said that they would recommend the personal current account provider to family and friends in a survey commissioned by the Competition and Markets Authority. NatWest, which is owned by the same parent, NatWest Group, also languished near the bottom of the table. – The Times


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