Overnight Asian markets continued to climb with the Nikkei up +0.47% at 21,255 and the Hang Seng hitting an intraday +0.96% high. The Australian index rose close to a nine-year high. Some of the confidence sentiment was being supported by lower inflation readings from the US, bolstering the possibility of the brakes being applied to US Fed rate rises.
Higher oil prices too: at close to 7am Brent crude was +1% higher at $57.74 while WTI crude was up +0.76% at $51.84. Some of the oil uplift was premised on more US-Iran tension. The Iraq-Kurdistan conflict is also applying some oil pressure of its own with fresh fighting near Kirkuk, a major oil city which has declared independence by its Kurdish population.
At 7am the pound was trading at $1.3281, close to the $1.33 handle and supported by news of a UK dash to Brussels by PM Theresa May and Brexit Secretary David Davis in an attempt to break the Brexit deadlock. The euro was somewhat lower, down -0.09% at $1.1798 as Catalan premier Carles Puigdemont has to either reject independence or see Madrid muscle in with direct rule. The deadline is 10am this morning.
“We argue,” said Barclays in a research note issued this morning, “that de facto independence is highly unlikely in the near or medium-term in part because non-separatist parties control over 2/3 of the Spanish parliament; and we think their recent agreement to reform the constitution could help to de-escalate.” Either way, expect euro volatility.
- UK FTSE 100 7,535.44 -0.28%
- Dow 22,871.72 +0.13%
- S&P 500 2,553.17 +0.09%
- Nasdaq 6,605.80 +0.22%
- Nikkei 225 21,265.25 +0.88%
- DAX 12,991.87 +0.07%
- CAC 40 5,351.74 -0.17%
- Gold 1,304.90 +0.02%
- Oil WTI 51.84 +0.76%
ConvaTec snips full-year revenue forecast; Vauxhall jobs threat
Earlier this morning medical tech FTSE 100 player ConvaTec said it saw third quarter +6.8% growth to $445.5m but full year organic revenue growth is now expected to come in a +1-2% on lower sales. Advanced Wound Care revenue grew +1.4% reflecting some supply disruptions and loss of some orders.
There was also lower than anticipated revenue contribution from new products. “Given what we have experienced in the third quarter, we are reviewing the financial implications for growth and margins in FY2018,” said chief exec Paul Moraviec, “and will provide further guidance at our preliminary results in early 2018."