London’s FTSE 100 was in the red during midday trade on Monday, returning the morning’s gains as optimism fuelled by China’s interest rate cuts ebbed.
There was some sparkle in commodity markets from gold, however. Oil prices also climbed, supporting Shell and BP, which rose 1.1% and 1.9%.
The FTSE 100 index went into the afternoon in a tepid fashion, despite the heavyweight oil majors rising. The large-cap benchmark traded down 17.79 points, 0.2%, at 8,340.46. London’s flagship index had traded 0.4% higher in morning trade.
The FTSE 250 was down 125.25 points, or 0.6%, at 21,024.33, and the AIM All-Share was down 1.95 points, or 0.3%, at 738.74.
The Cboe UK 100 was down 0.2% at 834.84, the Cboe UK 250 also fell 0.5% to 18,572.44, and the Cboe Small Companies edged down to 16,950.20.
The CAC 40 in Paris was down 0.8%, and Frankfurt’s DAX 40 shed 0.7%.
The pound was quoted at $1.3023 early Monday afternoon, down from $1.3040 at the time of the London equities close on Friday. The euro stood at $1.0849, fading from $1.0858. Against the yen, the dollar was trading at JP¥149.91, up from JP¥149.54.
Gold was quoted at $2,731.44 an ounce midday Monday, up from $2,717.31 at the time of the London equities close on Friday.
‘Donald Trump has edged forward in the betting markets in the race to the White House, explaining why gold and bitcoin have been attracting attention in recent days,’ AJ Bell analyst Russ Mould commented.
‘Betting markets are offering odds of 33/50 on Trump, which equates to a 60% probability of him winning the election. That compares to a 54.5% probability 10 days ago,’ the analyst added, citing data from odds comparison site Oddschecker.
Mould continued: ‘Gold typically attracts investors’ attention when they are looking for a store of value during uncertain times. Trump winning the US presidential election would raise the risk of a trade war and his provocative nature could lead to heightened uncertainty on the markets. Owning gold is essentially an insurance policy against unknowns.’
Tracking gold higher, Fresnillo rose 4.7% to shine the brightest among London’s large-caps. Hochschild Mining rose 1.3% in the FTSE 250.
Brent oil was quoted at $74.30 a barrel on Monday afternoon, climbing from $72.45 at the time of the London equities close on Friday. Interest rate cuts in China, aimed at breathing life in the Asian economy, boosted oil.
China’s one-year loan prime rate, which constitutes the benchmark for the most advantageous rates lenders can offer to businesses and households, was cut to 3.1% from 3.35%.
The five-year LPR, the benchmark for mortgage loans, was cut to 3.6% from 3.85%.
Back in London, Intertek Group was down 3.4%. RBC cut the product testing and certification services provider to ’sector perform’ from ’outperform’.
Hollywood Bowl rose 2.9%. It said it achieved record annual revenue, and it expects profit to land ahead of market expectations.
The ten-pin bowling operator said it expects to report revenue of £230.4 million in the six months to September 30, up 7.2% on-year. UK revenue alone rose 3.8%, it said, while at constant currency, Canada revenue jumped 42%.
Hollywood Bowl expects to post earnings before interest, tax, depreciation and amortisation, on a pre-IFRS 16 basis, ahead of market expectations and above £65.0 million. According to company-compiled consensus, market expectations stand at £64.1 million.
XLMedia jumped 35%. The London-based sports digital media company proposed a deal to sell its North America business to Sportradar AG for up $30 million in cash, with $20 million of that coming on completion.
Sportradar is a technology company focused on sport, and it has footballing bodies FIFA and UEFA and basketball’s NBA among its partners.
XLMedia is to become a cash shell should the deal materialise. The move is its latest step in its aim to boost shareholder value. It had previously sold its Europe and Canada sports betting and gaming assets for $42.5 million.
US stocks are called to open lower. The Dow Jones Industrial Average is called down 0.1%, the S&P 500 down 0.2% and the Nasdaq Composite 0.3% lower.
Boeing traded 3.6% higher in pre-market dealings. The aerospace firm and its striking Seattle-area workers have reached a tentative deal to end a more than month-long stoppage, the union said Saturday.
Boeing confirmed a tentative deal was reached and said it includes a 35% pay raise over four years and a one-time signing bonus of $7,000.
Union members will vote Wednesday on the proposal. The strike began September 13 in a dispute over pay and other compensation issues, the International Association of Machinists & Aerospace Workers said on social media platform X in a message to its members.
The strike by some 33,000 unionized workers, mainly in Washington state, halted work at two Seattle-area assembly plants and production of its 737 MAX planes.
Boeing last week announced a plan to raise up to $25 billion through various financial instruments, while obtaining $10 billion in credit from multiple banks, to boost its coffers amid the strikes.
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