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Australian strike fears lift natural gas prices
Natural gas prices surged in European markets today on fears Australian production could be disrupted by a strike. Benchmark prices were up by as much as 9% in early trading, raising worries that consumer bills could stay higher longer as the northern hemisphere goes into the autumn.
Australian unions have given employer Woodside Energy until close of business on Wednesday to come up with an improved pay offer before giving seven days notice of industrial action.
The latest tremors in the energy market come ahead of Friday’s Ofgem announcement of the latest cap on average energy bills.
Oil giants help FTSE 100, Tesco shares rally
Shell and BP supported the FTSE 100 index today as frustration continued over China’s reluctance to inject major stimulus into its economy.
The country’s central bank cut its one-year loan rate by 0.1% to a record low of 3.45% but the move underwhelmed Asia markets, with the Hang Seng index further into bear market territory following a decline of 1.8%.
Hargreaves Lansdown’s head of money Susannah Streeter said: “There is still some expectation that Chinese authorities will step in with a more generous boost, but it appears the weakness of the yen appears to be stemming more immediate action.”
The FTSE 100 index made progress after a six-day losing streak, but the improvement was a modest 31.32 points at 7,293.75. The performance owed much to the support of the energy sector after a jump for natural gas prices caused by strike action in Australia.
Brent Crude also traded above $85 a barrel as signs of tighter supply conditions more than outweighed the uncertainty over faltering China demand.
BP shares rose 2% or 7.9p to 481.35p and Shell lifted 27p to 23487p, while British Gas owner Centrica continued its recent rise to stand 1.5p higher at 144.65p.
Other stocks on the FTSE 100 risers board included Tesco after UBS analysts forecast strong profit growth ahead of October’s half-year results.
Shares rose 4.2p to 253.9p as the bank reiterated a 300p price target, adding that shares are at a “very attractive entry point” as attention shifts from deflation concerns back towards the supermarket’s consistently strong trading.
Positive City comment also benefited HSBC, which added 1.8p to 585.7p after Jefferies said recent weakness for shares as part of a ‘shadow China’ sell-off had presented a buying opportunity. It upgraded its price target to 1000p.
Unlike London’s top flight, the UK-focused FTSE 250 remained in the red after a further decline of 44.02 points to 18,052.58.
Fallers included the publisher Future, which has significant online operations in the United States. The stock fell 24p to 736.5p amid fears that interest rates will stay higher for longer.
Market update as FTSE climbs higher
The FTSE 100 has climbed higher today after modest early gains, as it heads back towards the 7300 mark.
Take a look at our latest market snapshot.
Bumper payout for founders of London NHS staffing platform after acquisition by Japanese investor
The founders of a London-based doctor recruitment platform aimed at plugging NHS staffing shortages are in line for a major payout after the firm was acquired by a Japanese investor.
Christopher Kurwie, a former M&A solicitor, and Abrar Gundroo, a former intensive care doctor at Guy’s and St Thomas’ hospital in Westminster, today said they had sold their business to Tokyo-based healthcare investment firm M3 for an undisclosed fee.
The pair, who become friends at secondary school before both going to Cambridge University, jointly control just under 50% of the share capital of the company, which they founded in 2017.
The Fulham-based business operates as recruiting marketplace platform for U.K. doctors, for surgeries and hospitals to hire locums, or temporary doctors, at short notice.
The deal highlights the scale of opportunities available to businesses seeking to address chronic staffing shortages in the NHS, the UK’s single-biggest employer.
read more here
Domino’s franchisee to declare Russian business bankrupt
The Russian arm of fast food chain Domino’s is likely to close after its London-listed parent company decided to put it into bankruptcy.
Apparently failing to find a buyer for the Russian business, DP Eurasia said it has decided its subsidiary should instead file for bankruptcy.
The franchisee runs around 170 Domino’s pizza sites in the country, and had previously said it was “evaluating its presence” there.
The Russian economy has been hit by sanctions since President Vladimir Putin launched an unprovoked full-scale attack on Ukraine in February 2022, a continuation of the Kremlin’s campaign in eastern Ukraine and Crimea which started in 2014.
Read more here
Building shares hit by Crest warning, FTSE 250 lower
The profits warning by Crest Nicholson has shaken stocks in the housebuilding sector, with Taylor Wimpey down 4% or 4.95p to 107.65p at the top of the FTSE 100 fallers board.
Persimmon also lost 34p to 988p and Barratt Developments weakened by 2% or 10.3p to 423.3p, while property portal Rightmove declined 76p to 3915p.
The losses failed to keep the FTSE 100 index out of positive territory as the top flight climbed 14.10 points to 7,276.53, with BP and Shell among the risers following a 1% increase for the price of Brent Crude to $85.62 a barrel.
Crest Nicholson’s warning sent its shares down 13% or 25.3p to 168.7p and has contributed to a poor session for the UK-focused FTSE 250 index, which lost 0.3% or 57.48 points to 18,039.12.
Market snapshot: Shares slightly higher after six-day losing streak
The FTSE 100 is slightly higher this morning, as investors hope that its China-led losing streak will come to an end.
Take a look at all our key market data
Social media firms should reimburse online purchase scam victims – Barclays
Tech companies should help to reimburse the victims of social media purchase scams, bosses at Barclays have said.
It comes as data from the bank revealed a jump in the number of social media scams affecting British shoppers.
Purchase scams, where people buy good which never arrive or are not as advertised, now account for two thirds of all reported scams, according to the research.
Read more here
China rate cut fails to lift Asia shares, FTSE 100 seen slightly higher
The FTSE 100 index is poised for a firmer session after the run of declines that has seen it lose almost 6% so far this month.
Much of the recent selling pressure has been caused by China’s disappointing economic performance and the concerns over the country’s debt laden property sector.
Today, the People’s Bank of China cut its one-year loan rate by 0.1% to 3.45% but surprisingly kept the five-year rate unchanged at 4.2% as it attempts to strike a balance between stimulus for the economy and supporting the yuan.
Hong Kong’s Hang Seng index, which on Friday closed in bear market territory following a decline of more than 20% from January’s highs, fell by another 1.7% today.
It also emerged today that property firm Country Garden is to lose its place in the index when the next quarterly reshuffle takes place in early September. It follows a 70% slide for its shares so far this year.
As well as the latest developments in China, the focus is on the comments of Federal Reserve chair Jerome Powell at the Jackson Hole symposium later this week.
US markets closed broadly unchanged on Friday and CMC Markets expects the FTSE 100 index to open 10 points higher at 7272 this morning.
Crest Nicholson warns on profits as rates hit housebuilding
Housebuilder Crest Nicholson has slashed its profit forecasts, as the impact of high interest rates and inflation continues to affect builders.
It said that with rising mortgage rates and “no Government support in place to cushion the impact”, property sales have continued to decline, and demand for new properties has fallen.
Having previously expected a profit of £73.7 million in June, it now projects profits to come to just £50 million.
The group said: “Against a backdrop of persistently high inflation and rising interest rates, trading conditions for the housing market have worsened during the summer of this year.”
However, it added: “The board remains positive and confident about the outlook for Crest Nicholson. While the current trading conditions are challenging, over the medium term it expects inflation to abate and mortgage rates start to reduce.
“In addition, the group has a strong financial position and an experienced leadership team who are used to trading through downturns in the cycle. The long-term structural shortfall of housing supply versus demand continues to increase and the Group has developed an attractive land portfolio.”
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