The FTSE 100 closes 26 units
Investors are worried about the US monetary tightening
Sanctions against Russia are intensifying
4:50 pm: The FTSE index ends in a fall but from its lows
The FTSE 100 balanced its losses until the end, but nevertheless ended lower due to concerns about rising US interest rates and further sanctions against Russia in response to the horrors reported in Ukraine. The London blue chip closed 26 points, or 0.34% lower at 7,588, above the low of 7,536. “After slipping into US markets yesterday due to the Brainard and Daly balance sheets and the tougher comments, the tone for the markets has deteriorated significantly with European stocks plummeting as the musical mood for the heaviest sanctions in Russia rises further in anticipation that “We could very well see evidence of further Russian atrocities in the coming days,” said Michael Hewson, chief market analyst at CMC Markets UK. “While the musical mood surrounding energy embargoes on Russian oil and gas still maintains a degree of reluctance on the part of resilient European countries, the direction of travel suggests that it is only a matter of time before the pressure and waiting out becomes as “Germany must succumb to the inevitable in order not to be accused of forgiving the genocide.” On Wall Street until the close of London, the Dow Jones Industrial Average was 257 points or 0.74% lower at 34,384, while the broader S&P index fell 1.24% and the technology Nasdaq Composite fell 2.4%.
16:15: Shell wins as the IEA says it will release more oil
The International Energy Agency has said it will release another 60 million barrels of emergency oil to try to offset rising fuel and energy prices. This addition will enhance the release of the 180 million barrels, which had already been announced by US President Joe Biden. Shell PLC (LSE: SHEL, NYSE: SHEL) is one of the “top 10” rise of the FTSE 100, having climbed 0.5% to 2,132 points. This comes as the US imposes further sanctions on individuals and banks in Russia, including Putin’s adult children, Sberbank and Alfabank. Americans will also stop investing in the nation state.
15.28: US stocks fall sharply
As expected, US stocks fell sharply in the opening, reflecting European markets and extending Tuesday’s losses. One hour after trading, the Dow fell 283 points, or 0.8%, as it aimed to avoid successive dives of 300+ points. The Nasdaq, which is heavily influenced by technology, fell 332 points or 2.3% to 13,872. Meanwhile, the S&P 500 was among the former US indices, having fallen 1.2% or 54 points.
14.52: Increases in fuel costs will be passed on to aircraft passengers
More problems for travelers and the aviation industry, with providers expected to pass on the rising cost of fuel to passengers.
The @ @ IATA says that the price of jet fuel has increased by 77% in 2022 so far, compared to 2021. Obviously this will reflect on ticket prices. pic.twitter.com/n2VvakOKKL – Ajay Awtaney (@LiveFromALounge) April 6, 2022 International Aviation Association CEO Willie Walsh added that rising energy costs will undoubtedly cause a resounding reading for the industry.
14.15: Smoke from above
Imperial Brands PLC (LSE: IMB) led the FTSE 100 lifts after improved performance on its next generation (NPG) products. The tobacco and e-cigarette company, which saw its shares rise 3.7% to 1,675 a.m., said it expects first-half earnings to rise 2% on a fixed exchange rate basis due to reduced losses in NPG activities. . Tobacco demand is steadily declining, according to research by the World Health Organization. “The key to any tobacco company in the world today is how to move away from the increasingly unpopular classic tobacco products and create an NGP offering,” said Matt Britzman, a Hargreaves Lansdown stock analyst. The company behind brands such as Rizla and Winston is one year behind in its five-year strategy outlined last year, and the expected improved performance of vaporizers and e-cigarettes will be a sign that it is on the right track.
1.40 pm: Retail retailers
Many retail companies in the FTSE 100 were among the biggest declines, as they continued the downward trend from Tuesday, after it was announced that sales in the industry plunged 20% between February and April. The next PLC (LSE: NXT), which surpassed only the Smurfit Kappa Group plc (LSE: SKG) in its fall, fell 3.8% to 5,922 p. Meanwhile, Burberry Group PLC (LSE: BRBY) and JD Sports Fashion PLC (LSE: JD.) Were also among the biggest losers in the blue-chip index, falling 3.3% and 3.0% respectively. The Scottish Mortgage Investment Trust and the owner of British Airways International Consolidated Airlines Group (LSE: IAG) SA were other notable shares that contributed to the fall of the FTSE, both of which fell 3.5%.
12.59 pm: Cobra market interest increases due to strong drilling results
Away from large capitalizations, Cobra Resources PLC (LSE: COBR) continued until noon due to strong buying interest. The gold prospector announced positive results from his Wudinna Gold Project in South Australia, with all the holes, at 350 parts per million (PPM) total rare earth oxide (TREO) cut, creating significant crossings. Meanwhile, at a 500 PPM TREO cut, 81% or 13 of the holes returned multiple significant junctions per hole. The team said it would publish the results from another 104 holes in two different projects later this month. Its shares jumped 20% to 2.76 a.m. in the news on Wednesday.
12.10 pm: US markets open lower
US stocks are expected to extend Tuesday’s loss from Federal Reserve Governor Lael Brainard’s aggressive comments, with the overall market likely to remain silent as investors seek further evidence of the policymaker’s approach in minutes. March expected later today. Bond yields rose to a one-year high, signaling the possibility of the world’s largest economy leading to a recession, with Brainard saying it expects a combination of interest rate hikes and a rapid decline in the Fed’s balance sheet to close to $ 9 trillion. monetary policy in a “more neutral position” later this year. Futures for the Dow Jones Industrial Average fell 0.55% in Wednesday’s pre-market trading, while for the S&P 500 it was 0.67% lower and the contracts for the technologically heavy Nasdaq-100 fell 1%. The Fed’s announcement later today of the March meeting minutes is expected to keep investors on the sidelines as they digest new details about the central bank’s plans to shrink its balance sheet to tame inflation. However, activity in the Fed’s futures contracts already indicates a more than 75% chance of raising 50 basis points at the May meeting. “In this tense environment, investors will be watching the Fed minutes closely today. It would not be surprising if the Fed hinted at a 50 basis point increase at the next meeting. However, what will really make a difference is the speed with which the Fed will shrink the balance sheet. And there is a strong possibility of a hawk pricing on this front, “said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank. “Market risks remain low, given the dramatic change in the latest comments from Fed officials. “Terrifying inflation figures, combined with unusually strong job reports and higher wages, support the idea that if there is a good time for the Fed to put a brake on its oversold policy, it is now.” Brent crude futures rose 1.2% to $ 107.96 a barrel in the commodity market. “Black gold is doing its best to stay on positive ground; the chances of imposing sanctions on Russian oil are slim and traders see no supply problems, keeping oil prices under control. “Both Brent crude and oil prices remain above the critical $ 100 level, which shows that the bulls are still very much in control of the price,” said Naeem Aslam, chief market analyst at Avatrade. In preliminary trading, Twitter fell 2.2% after rising this week due to the acquisition by Tesla CEO Elon Musk of a large stake in the social networking company.
11.00: The government proposes a new energy security body
The UK government has said it will set up a new energy security body, the Future System Administrator, which will oversee most non-renewable and green energy sources.
This “whole system” approach was aimed at reducing dependence on Russia and speeding up the transition to renewable energy sources.
Greg Hunts, the energy minister, said: “Russia’s appalling aggression in Ukraine amid escalating world gas prices has shown the vital importance of strategic change in the UK energy system.
“We need to strengthen our energy resilience, reduce our dependence on expensive imports and reduce emissions.”
10.20 am: Construction in the UK increases according to cost
March saw a sharp rise in UK manufacturing output, but inflationary pressures and war continued to affect the industry climate, according to S&P Global. The S&P Global / CIPS UK Construction Purchasing Managers’ Index (PMI) – which measures monthly changes in overall industry activity – stood at 59.1 in March, unchanged from February and well above the 50.0 threshold that separates expansion by contraction. The most recent reading marked the joint fastest growth rate of production since June 2021. Commercial work was the top-performing segment in March with 60.8 points, with projects restarting after pandemic restrictions were lifted. This part of the construction sector has seen production growth accelerate for three consecutive months and the last recovery was the strongest since June 2021. In contrast, recoveries in civil engineering at 56.3 and domestic work at 54.9 lost momentum last month. The last…
