(Sharecast News) - London stocks managed to break into the green in the final moments of trading on Tuesday, having spent most of the session in negative territory amid ongoing concerns about new coronavirus cases in the US and following the release of disappointing UK GDP data.
The FTSE 100 ended the session up 0.06% at 6,179.75, while the FTSE 250 closed 1.21% lower at 17,174.69.
Sterling was weaker against both of its major trading pairs, last falling 0.08% against the dollar to $1.2545, and losing 0.63% on the euro to €1.0998.
Worries about the pandemic continued to dent sentiment after California reimposed restrictions on indoor activities due to a surge in new cases.
"The mood has been downbeat all day as continued health concerns and rising tensions in relation to China have weighed on stocks," said CMC Markets analyst David Madden.
"Dealers are still worried about the rate at which the virus is spreading, and seeing as some restrictions are being reintroduced, that is adding to the bearish move too."
Madden noted that geopolitical tensions were also in the air, after the US government "hit out" against the Beijing administration over its territorial claims in the South China Sea.
"This represents the latest development in the frosty relationship between the two largest economies in the world.
"China isn't on great terms with the UK either, as earlier today it was announced the British government basically banned Huawei from its 5G network."
On home shores, data out earlier from the Office for National Statistics showed the economy grew 1.8% on the month in May.
It was a big improvement on April's 20.3% slump, but well below consensus expectations of 5.5% growth.
"GDP languished 24.5% below January's pre-Covid peak in May, as the maintenance of a strict lockdown to curb Covid-19 prevented the economy from recovering meaningfully," said Samuel Tombs, chief UK economist at Pantheon Macroeconomics.
There was more bad news as the Office for Budget Responsibility said the UK economy was unlikely to recover to pre-Covid levels until the end of 2022 under its central scenario, while the budget deficit would hit its highest level in peacetime.
In its downside scenario, output would recover even more slowly, returning to its pre-virus peak only in the third quarter of 2024.
The upside scenario would see activity rebound relatively quickly, recovering by the first quarter of next year.
"The coronavirus outbreak and the public health measures taken to contain it have delivered one of the largest ever shocks to the UK economy and public finances," the OBR said.
It said the UK was on track to record the largest decline in annual GDP for 300 years, with output falling by more than 10% this year in all three scenarios and contracting by a quarter between February and April.
"This delivers an unprecedented peacetime rise in borrowing this year to between 13 and 21% of GDP, lifting debt above 100% of GDP in all but the upside scenario.
"As the economy recovers, the budget deficit falls back. But public debt remains elevated, continuing to rise in the central and downside scenarios."
In equity markets, Halma fell 4.54% after it reported record annual profit and revenue underpinned by acquisitions, but warned that adjusted pre-tax profit for the 2021 financial year would fall 5% to 10% on the year.
Online grocer Ocado lost 2.19% even after it reported a rise in half-year revenue as Britons turned to home deliveries during the coronavirus lockdown.
The company said revenue for the six months to 31 May increased 27.2% to £1.02bn.
AO World reversed earlier gains to slide 14.02%, after saying it experienced strong demand during the Covid-19 crisis but was cautious about the outlook as it reported a smaller annual loss.
The online household appliance retailer's operating loss for the year to the end of March narrowed to £3.8m from £13m as total revenue rose to £1.05bn from £902.5m.
FTSE 100 (UKX) 6,179.75 0.06%
FTSE 250 (MCX) 17,174.69 -1.21%
techMARK (TASX) 3,679.54 -0.49%
FTSE 100 - Risers
BT Group (BT.A) 115.80p 4.23%
BP (BP.) 304.50p 2.65%
Imperial Brands (IMB) 1,442.50p 2.52%
Royal Dutch Shell 'B' (RDSB) 1,247.60p 2.45%
Royal Dutch Shell 'A' (RDSA) 1,309.60p 2.38%
Phoenix Group Holdings (PHNX) 658.40p 2.08%
Admiral Group (ADM) 2,333.00p 2.06%
CRH (CRH) 2,950.00p 2.01%
WPP (WPP) 603.80p 1.75%
Vodafone Group (VOD) 126.78p 1.65%
FTSE 100 - Fallers
Scottish Mortgage Inv Trust (SMT) 893.50p -6.83%
Halma (HLMA) 2,187.00p -4.54%
Rolls-Royce Holdings (RR.) 256.40p -4.26%
Persimmon (PSN) 2,543.00p -4.25%
JD Sports Fashion (JD.) 619.20p -4.09%
Hargreaves Lansdown (HL.) 1,542.00p -3.99%
Compass Group (CPG) 1,100.50p -3.89%
Informa (INF) 420.90p -3.68%
Avast (AVST) 558.50p -3.46%
Taylor Wimpey (TW.) 138.75p -3.44%
FTSE 250 - Risers
Just Group (JUST) 51.80p 6.85%
Direct Line Insurance Group (DLG) 293.50p 3.67%
Computacenter (CCC) 1,680.00p 2.38%
Royal Mail (RMG) 175.00p 1.89%
IP Group (IPO) 66.20p 1.85%
Tate & Lyle (TATE) 653.40p 1.81%
Wood Group (John) (WG.) 205.10p 1.79%
National Express Group (NEX) 165.50p 1.72%
TP ICAP (TCAP) 355.00p 1.54%
LXI Reit (LXI) 111.20p 1.46%
FTSE 250 - Fallers
AO World (AO.) 141.00p -14.02%
Oxford Instruments (OXIG) 1,240.00p -7.32%
Meggitt (MGGT) 297.30p -6.69%
Cineworld Group (CINE) 53.10p -6.18%
Frasers Group (FRAS) 289.80p -6.15%
TUI AG Reg Shs (DI) (TUI) 356.30p -5.54%
Polar Capital Technology Trust (PCT) 2,075.00p -5.47%
Avon Rubber (AVON) 3,560.00p -5.44%
PPHE Hotel Group Ltd (PPH) 1,130.00p -5.44%
Hammerson (HMSO) 74.98p -5.30%
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
(Sharecast News) - London's benchmark finished pretty close to flat on Friday, as investors - sweltering in an August heatwave - digested a surprisingly positive US nonfarm payrolls report, released during the afternoon.
Majid Shafiq, CEO of i3 Energy (AIM:I3E), and CFO, Graham Heath, discuss today’s follow-on deal to sell the Gain assets to Harvard Resources which will occur following the completion of the group’s previously announced C$80 million reverse takeover .
i3 Energy plc, an independent oil and gas company with assets and operations in the UK, Final Results for the year ended 31 December 2019 show significant operational progress for the pre-revenue company with net loss of £10.8m. To fund the Gain acquisition announced post period end in 2020, i3 is proposing to raise £30 million at a price of 5 pence per share, an 18% discount to the closing mid-price at which i3's shares suspended on 23 June 2020.
Oilex, the Operator of the PSC and on behalf of the JDPA joint venture, has reached amicable settlement with JPDA in East Timor with a settlement of US$0.8m payable in 2021 and 2022 financial years. The settlement amount is fully provided for in the FY19 accounts.
Shield Therapeutics said a reanalysis of the AEGIS-H2H study for its iron deficiency lead product Feraccru®/Accrufer® has confirmed the product as a credible alternative to IV therapy for patients with iron deficiency anaemia.