FTSE 100 Ends Down on Signs of China Deflation
December 11 2023 - 1:01PM
Dow Jones News
The FTSE 100 index closed down 0.1% on Monday, at 7,544.89
points, on the back of weakness in the basic-resources sector. The
latest inflation numbers from China showed signs that the world's
second-biggest economy is slipping into deflation, CMC Markets
analyst Michael Hewson says in a market comment. "These concerns
over weak demand are weighing on the likes of Glencore, Rio Tinto
and the rest of the mining sector, as iron ore prices decline," he
says. Anglo American shares saw a bit of a rebound after last
week's drops prompted some takeover speculation, he adds.
COMPANIES NEWS:
Hipgnosis Sells Non-Core Songs Catalogue For $23.1 Mln
Hipgnosis Songs Fund said it has completed the sale of around
20,000 non-core songs for $23.1 million.
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Domino's Pizza Backs Guidance, Eyes Opening More Stores
Domino's Pizza Group said it backed its fiscal 2023 guidance
expecting accelerating growth through additional opportunities
mostly in the U.K. and Ireland markets.
---
Begbies Traynor Pretax Profit Falls on Higher Costs; Sees Year
in Line With Views
Begbies Traynor Group said pretax profit for the first half of
its fiscal year fell after booking higher costs, and that it was
confident on delivering current market expectations for the full
year.
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Synectics Shares Have Best Day in 24 Years After Profit Beat
Forecast
Synectics shares rose 31%--marking their best one-day percentage
rise in over 24 years--after the company said that it expects to
beat market forecasts for fiscal 2023 after a strong second-half
performance, particularly in the oil & gas market.
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Anglo American Shares Rise After Being Tipped for Takeover
Shares in Anglo American rose on Monday after being tipped by
analysts for a takeover if its doesn't turn operations around and
its share price continues to lag.
MARKET TALK:
QinetiQ's Low Share Price an Attractive Entry Point
1305 GMT - QinetiQ's shares have fallen 16% year-to-date, while
the rest of the European defense sector has gained 32% on average,
JPMorgan analyst David H. Perry says in a note. This is attributed
to investor concerns over the defense-technology company's M&A
activity, as the initial results of acquired businesses have fallen
short of expectations, Perry says. "These concerns are valid but
the severe derating of the shares provides an attractive entry
point in our view," Perry says. JPM upgrades the stock to
overweight from neutral and raises the target price to 440 pence
from 390 pence. Shares are up 1.1% at 301.40 pence.
(anthony.orunagoriainoff@dowjones.com)
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Luxury Industry Could Return to Growth in the U.S. Next Year
1224 GMT - The luxury industry might have a long-term growth
opportunity in the U.S., where new markets such as Miami continue
to thrive, UBS analysts say in a research note. "After three years
of a booming demand in the local luxury market, 2023 has been
rather muted with a flattish sales performance," UBS analysts say,
adding that they expect the sector to return to growth in the
second half of next year. However, some people are still cautious
heading into 2024, UBS says, due to low consumer confidence,
geopolitical uncertainty and the upcoming presidential election in
the country, which are limiting the visibility in the market. UBS
takes Hermes, Hugo Boss and Richemont as its top picks, while it
remains cautious on Salvatore Ferragamo and Burberry.
(andrea.figueras@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
December 11, 2023 12:46 ET (17:46 GMT)
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