The UK blue chip index ended in positive territory but US investors remain cautious
- FTSE 100 closes up 18 points
- Wall Street mixed and flat at midday
- Intermediate Capital climbs
5.03pm: Markets struggle to find a spark
London’s leading index ended Tuesday up 18 points, 0.3%, at 7,095, while the FTSE 250 dropped 13 points to 22,896.
“Stock markets remain in stubborn mood, with a mixed picture prevailing across the US and Europe today,” IG Chief Market Analyst Chris Beauchamp wrote. “…Financial conditions remain tighter in Europe than the US, which should continue to weigh on the greenback, but as ever investors are determined to keep an eye on inflation, in the hope that a spark can be found to reignite the gains of earlier in the year.”
In the US, the Dow was down 14 points to 34,617 at midday, after a brief downward spike that saw the index drop as low as 34,453. The Nasdaq was up 2 points to 13,883, and the S&P 500 was down 2 points to 4,225.
3.59pm: Miner moves higher, housebuilders fall
Leading shares are in a bit of a holding pattern.
The FTSE 100 is up 35.6 points or 0.5% at 7112.82, while the mid-cap FTSE 250 is less enthused by the day, up 0.13% at 22,938.03.
The biggest riser in the blue chip index is Ltd (). Yes indeed.
Its shares have jumped 34.12% to 148.9p, although this is less impressive when you realise it joined the FTSE 100 on Monday at 150p and promptly plunged to 111p.
So it has effectively just about recovered yesterday’s losses.
The company is a thermal coal miner spun off from () and was the subject of a negative note from short seller Boatman Capital Research over the weekend.
It will also not remain a member of the FTSE 100 for too long.
On Friday it effects a nationality change from the UK to South Africa with its primary listing in Johannesburg. So it will not be eligible for inclusion in the FTSE UK indices.
Until Friday however it will sit in the same category as Anglo, and therefore is in the FTSE 100 for the week.
The index compilers FTSE Russell must have had fun with that one.
Elsewhere asset manager PLC () is up 6.17% following its results.
But housebuilders have lost some of Monday’s gains despite chief economist Andy Haldane saying at a University of Glasgow seminar that the UK housing market is “on fire.”
PLC () is down 1.44% and PLC () has fallen 0.96%.
3.17pm: US jobs data beats expectations
More signs of the strength of the US economy.
Job openings figures – showing the number of vacancies employers are trying to fill and therefore a sign of increased demand – came in better than expected at 9.286mln in April.
US JOLTS Job Openings Apr: 9286K (est 8200K; prev R 8288K)
— LiveSquawk (@LiveSquawk) June 8, 2021
— BLS-Labor Statistics (@BLS_gov) June 8, 2021
Of course that may well mean a rerival of the fears about inflation amid a growing economy, and the possible action the world’s central banks might take to tame it.
Further clues will come later in the week with Thursday’s US consumer price index data, and Wall Street seems to have decided to play it cautious until then.
So the Dow Jones Industrial Average is down just 0.14%, the S&P 500 is barely changed and the Nasdaq Composite is up 0.36%.
As for the FTSE 100, it remains in positive territory, up 32.51 points or 0.46% at 7109.73.
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