FTSE 100 closes despite rising energy prices

The FTSE 100 index closed higher on Thursday despite rising energy prices, said senior market analyst at IG Joshua Mahony. The index is moving a touching distance from 19-month highs, Mr Mahony said. “Fears about energy prices and inflation appear to have abated for now, although the current 5% rise in natural gas prices increases the risk that this respite will be short-lived,” said Mr Mahony, adding that “the collapse of three other UK energy suppliers this week underlined that prices will rise sharply for suppliers to stay in business.”

 
Companies News: 

Firering Strategic Minerals expects to float in London next month

Firering Strategic Minerals PLC said Thursday that it plans to go on the London Stock Exchange in early November and use the money to acquire pilot production plants and finance exploration.

Capital & Regional will restructure its shopping center; Launches £ 30million fundraiser

Capital & Regional PLC said Thursday it has reached an agreement with lenders to restructure and reduce secured debt on its four mall assets, including launching a £ 30m ($ 41m) open bid.

Purplebricks CFO to resign at the end of October, Steve Long named successor

Purplebricks Group PLC announced Thursday that CFO Andy Botha will step down from his duties and board at the end of October and that he has appointed Steve Long as his successor.

Radiator Company Stelrad confirms its intention to float in London

Stelrad Group PLC, a manufacturer and distributor of steel panel radiators, confirmed on Thursday its intention to list on the London Stock Exchange.

Castelnau surpasses the target show in the London float

Castelnau Group Ltd. said on Thursday it had raised gross proceeds of £ 53.1million ($ 72.5million) in its float on the London Stock Exchange, with its market cap exceeding its target issue size.

Rubix Group Holdings will be listed on the main London market

Rubix Group Holdings Ltd. said on Thursday he plans to list on the main London stock market and expects to raise proceeds of around 850 million euros ($ 985.6 million) through a placement of new ordinary shares.

National Express revenue continued to improve in the third quarter – Update

National Express Group PLC said on Thursday that revenues continued to improve in the third quarter of the year, and it supported its underlying pre-tax profit expectations for the full year.

UK Antitrust Watchdog investigates acquisition of TM Group by Dye & Durham (UK)

The French Competition and Markets Authority said on Thursday it was investigating whether the acquisition of TM Group (UK) Ltd. by Canadian cloud-based software provider Dye & Durham Ltd. could lead to a substantial decrease in competition in UK markets.

Tower trader IHS to debut trading after low-priced IPO

The shares of IHS Holding Ltd. are set to debut in the United States on Thursday after the wireless tower operator’s initial public offering was valued at lower expectations.

 
Market Talk: 

UK borrowing costs fall as BOE’s Tenreyro minimizes rate hike

10:49 GMT – Comments by Bank of England rate fixer Silvana Tenreyro on Thursday downplaying the effectiveness of an interest rate hike in countering a one-time price shock help UK government bond prices to pull up based on their recent small gains. Tenreyro told local Wales media that raising interest rates to cope with rising energy and semiconductor prices would be ‘doomed’ if higher inflation is of short time. The yield on two-year gilts, which are more sensitive to changes in interest rate expectations, fell to 0.537% on Thursday, after hitting 0.614% on October 11, the highest level since January 2020, according to Tradeweb. Bond prices move inversely with yields.

National Express Salary Offers Help Strengthen Recovery

10:47 GMT – National Express’s sequential performance improvement across all segments has been driven by the recovery in passenger volumes, Citi said. In addition, in addition to signing wage deals in Spain and the UK, the transport operator is using support from the US government to tackle driver shortages and offset some of the wage pressure as it expects to wage inflation of around 5% there, Citi said. “We consider the cost mitigation measures, including the two-year wage agreements in Spain and the UK, to be positive,” the US bank said. Citi evaluates the purchase of shares with a target price of 350 pence. Shares are up 2.1% to 234 pence.

Shattering SSE Would Not Guarantee Value Creation, Berenberg Says

1009 GMT – A separation of the ESS grid and renewable energy activities could lead to more transparency of assessments for both, but would not guarantee value creation, Berenberg said. Britain’s energy company is said to be under pressure from activist investor Elliott to consider a split. It is not clear how SSE’s other activities would fit into this separation, according to the German bank. Additionally, the company’s current integration supports dividend growth, as a stand-alone renewable energy company would likely prioritize capital spending, he says. Berenberg raises the target price to 1,690 pence from 1,300 pence, reflecting more optimistic long-term expectations for SSE’s renewable business, but retains a sustaining note after the recent rise in the share price.

RBC raises its forecast for gas prices in Europe

0958 GMT – A combination of factors has led to an unprecedented rise in gas prices in Europe, and multi-year low storage levels have made prices vulnerable to further price shocks this winter, RBC Capital Markets said . Analysts at the Canadian bank are improving their 2021 forecast for the NBP – the UK gas benchmark – by 21% to $ 13.08 per thousand cubic feet, and by 69% for 2022 to $ 14.16. Meanwhile, for 2023, RBC has established an estimate of $ 10.49, while the long-term outlook is held unchanged at $ 7.00. “While Nord Stream 2 and more US LNG may help ease some pressures through 2022, we expect price strength to persist,” RBC said.

A softer stance in the speeches of BOE rate regulators could refine the Gilt curve

0909 GMT – A softer stance on the path of rising UK interest rates from Bank of England rate regulators speaking on Thursday could push the interest rate curve to s ‘accentuate, Mizuho said. “There is a good chance that today’s speakers can provide more clarity on where the consensus of the Monetary Policy Committee actually lies, and we expect that consensus to favor a more gradual path. than the one currently priced, “say the bank’s analysts. This could be a catalyst to steepen the gilt forwards of intermediate maturities, which beyond 2 years are now extremely flat, they specify, noting that the segments between the 2 year 1 year forwards and the 4 year 1 year forwards are now reversed.

 

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

 

(END) Dow Jones Newswires

October 14, 2021 12:07 p.m. ET (4:07 p.m. GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

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