Stocks of raw materials hurt FTSE, vaccine safety concerns rise
TThe oday session went off without incident due to the lack of any positive news.
This morning, European equities got off to a good start as the bullish mood that prevailed last week has spread until today. The Biden administration approved the much-talked-about $ 1.9 trillion spending program at the end of last week and it greatly influenced the overall mood in the markets. The story of the recovery also contributes to the positive sentiment, but some doubts have been cast in light of growing safety concerns over the AstraZeneca-Oxford Covid-19 vaccine. There are concerns that the drug is linked to blood clots, so some countries have stopped distributing it for now. It looks like the recovery trade has hit a small bump in the road, contributing to a slightly bearish mood. The FTSE 100 is in the red as commodities stocks BP, Royal Dutch Shell, Rio Tinto, Glencore and BHP Group weigh on the index.
Flutter Entertainment has responded to press speculation that it plans to sell a small portion of FanDuel, its U.S. subsidiary, via an IPO. Paddypower’s parent said he is considering his options but no action will be taken at this time. Just three months ago, Flutter increased his stake in FanDuel to 95%, so it seems a little odd that he is now considering divesting part of the operation. Recently, several US states have relaxed their gambling restrictions, so European businesses have moved quickly. If Flutter is considering a partial IPO, it may be because they are keen to raise funds to grow the business.
Ascential shares are down more than 4%, with the group reporting a 30% drop in full-year revenue to £ 263.7million. EBITDA fell from £ 128.5 million to £ 50 million. The media group has been affected by the restrictions. The cancellation of the Cannes Festival of Creativity contributed to causing its marketing division to suffer a 60% drop in its revenues. This wasn’t bad news in the update, as the first two months of the year saw strong revenue and profit growth.
Germany has suspended the distribution of the AstraZeneca-Oxford vaccine over concerns about its safety. Authorities in the Netherlands and Ireland have also stopped administering the drug over concerns that the vaccine will increase the likelihood of blood clots.
Deliveroo plans to raise £ 1bn through its listing on the London Stock Exchange, while the value of the entire group is said to be over £ 5bn. The food delivery market exploded last year due to restrictions. Deliveroo has 6 million customers in 12 countries, but it faces competition from Just Eat Takeaway – the world’s largest food delivery company outside of China.
Emmanuel Faber, Chairman and CEO of Danone, was forced to leave the company as the food group came under pressure from activist investors.
Provident Financial shares fell as its mortgage lending business saw an increase in complaints. The lender has devised a £ 50million plan to settle the disputes, but if not approved, the unit could collapse.
The Dow Jones pulled back from its record on Friday as trading was lackluster. It looks like the bulls are taking a break in light of the strong gains that were posted last week. The New York Empire’s manufacturing reading jumped to 17.4, the fastest growth rate in almost two years. The update contributes to the story of the recovery of the US economy.
AMC Entertainment shares are rising as the group plans to reopen theaters in Los Angeles today, with plans to reopen 23 theaters in Los Angeles on Friday. The stock has experienced great volatility over the past two months as it was targeted by a group of retail investors as it was known that there was a high level of short-term interest in the stock. . The story of the reopening added a new dimension to its appeal.
GenMark Diagnostics shares reached an all-time high when they agreed to be acquired by Roche for $ 1.8 billion, or $ 24.05 per share.
Caesars Entertainment, Penn National Gaming, NXP Semiconductors and Generac will be added to the S&P 500. This bodes well for stocks, as funds that track the well-known index will have to buy the stocks.
The CMC USD Index is up 0.1% because the 10-year yield is relatively high – it’s outside recent highs, but it’s comfortably above last week’s lows. The fact that the 10-year yield is not too far from the 13-month high that was recently set makes the US dollar more attractive. The Federal Reserve is by no means close to raising interest rates, but it is further ahead than the ECB or the Bank of England. It was a calm day in terms of economic announcements from Europe. GBP / USD and EUR / USD are in the red due to greenback movement.
Gold is trading today within a small range. Last week it fell to its nine-month low, but has seen a slight rebound since then. It seems that the recovery has run out of steam and is at a crossroads. If the metal holds above its recent low, it could look to retest $ 1,760, while a move lower could see it finding support at $ 1,670.
Oil started on a positive note this morning as well-received data on China’s industrial production and refining boosted the energy market. The world’s second largest economy is hungry for minerals, but that hasn’t stopped WTI and Brent from overturning