FTSE 100 braces for US employment data as Trump Covid diagnosis adds to market uncertainty

FTSE 100 braces for US employment data as Trump Covid diagnosis adds to market uncertainty

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As Britain braced for its first winter storm, heralding 65mph winds and lashing rain, the FTSE 100 caught a case of the sniffles. The political uncertainty around the Trump Covid diagnosis didn’t help the mood, while US employment data could sap any nascent positivity if the new jobs number undershoots. Non-farm payrolls are expected to show the world’s largest economy created 900,000 jobs in September, with the unemployment rate edging down 0.2 percentage points to 8.2%. On the outlook for the UK market, Richard Hunter, head of markets at Interactive Investor, provided this assessment. “The Footsie remains fettered by investor insouciance and bleak prospects for the UK economy as a whole, down 23% in the year to date and seemingly unable to break out of its current narrow band,” he said. “Further countries being added to the UK quarantine list alongside targeted local lockdowns have done little to lighten the mood, with the moves piling further pressure on several already beleaguered sectors. “Large fundraisings announced by the likes of British Airways owner International Consolidated Airlines and Rolls-Royce are further indications of travel industry in turmoil.” On the market, it was a ‘bounce-back day’ for the aforementioned IAG (LON:IAG), which led the blue-chip index with a fairly anaemic 1.5% gain. It was of only seven top-flight companies to show forward momentum in the first half-hour of trade. Rolls (LON:RR.), which is in the process of raising £5bn of rescue financing, including £2bn from the market in the form of a hugely discounted, highly diluted rights issue, led the losers with a 5.9% decline. Melrose (LON:MRO), the owner of fellow aero-engineer GKN, fell 3.5% as it became caught in the downdraught caused by Rolls’ travails. Egyptian gold-digger Centamin (LON:CEY) achieved almost the impossible feat in this red hot market for the yellow metal – it issued a profit warning. The stock tanked 20% after Centamin said delays to open pit mining meant output for the fourth quarter would likely fall to about 70,000 ounces from the 120,000 ounces it produced in the third quarter. Proactive news headlines Cobra Biologics will manufacture Scancell Holdings PLC’s (LON:SCLP) COVID-19 vaccine ready for a phase I clinical trial. The agreement covers the good manufacturing practice (GMP) production of plasmid DNA needed to generate the inoculation against SARS-CoV-2. A drug development firm has been given the green light to take into human trials a treatment for irritable bowel syndrome (IBS) that contains OptiBiotix Health PLC's (LON:OPTI) Lactobacillus Plantarum LPLDL probiotic. The company said Seed Health’s investigational new drug application has been approved by the US Food & Drug Administration, which will allow DS-01 to go straight into phase II clinical trials. One Media IP Group PLC (LON:OMIP) has now paid the final US$100,000 of the fee for the acquisition of the music catalogue of Philip Wesley. The digital music rights acquirer, publisher and distributor acquired the catalogue of the American composer and solo piano artist a year ago but part of the payment was deferred, as it was dependent on how well the deal panned out. Falcon Oil & Gas Ltd (LON:FOG) told investors that an 11-stage hydraulic stimulation programme has been completed at part of the Beetaloo shale project in Australia’s Northern Territory. The 11 stages were carried out along the well’s 1,579-metre horizontal section in the Lower Kyalla formation. Bezant Resources PLC (LON:BZT), the copper-gold exploration and development company, said exploration work has started at the Hope Copper-Gold Project, Namibia. This first phase of work by Bezant will focus on exploration licence EPL5796 hosting the Hope and Gorob-Vendome massive sulphide deposits, part of a combined indicated and inferred mineral resource within three closely spaced deposits of 10.2mln tonnes @ 1.9% Cu (copper) and 0.3 grams per tonne (g/t) Au (gold) at a 0.7% Cu cut-off. Bahamas Petroleum Company PLC (LON:BPC) has updated investors on licence administration in Trinidad. The company has agreed with state-backed Heritage Petroleum the three-month extension of the contract to December 31 to give Heritage time to obtain requisite consents from the Ministry of Energy and Energy Industries for the implementation of a new 10-year Enhanced Production Sharing Contract (EPSC) agreement. Westminster Group PLC (LON:WSG) has been notified by holders of its convertible loan notes that they have elected to convert £93,750-worth into 937,500 ordinary shares. This latest conversion further reduces the outstanding CLN amount to £1.5mln with a corresponding reduction in interest charges, the company said. Brunner Investment Trust PLC PLC (LON:BUT) confirmed that its top 10 shareholdings continues to be led by Microsoft Corp, UnitedHealth Group and Roche Holding AG.  6.31 am: Dour start predicted  London's leading shares are set to open on the back foot ahead of the release this afternoon of US jobs figures for September. Spread betting quotes point to the FTSE 100 opening some 58 points lower at around 5,821. “A short while ago it was announced that Donald Trump tested positive for COVID-19, so no doubt he will quarantine. This put pressure on US index futures and European indices are called lower,” suggested CMC’s David Madden. US indices had a reasonably solid day yesterday with the Dow rising 35 points to close at 27,817 and the S&P 500 climbing 18 points to 3,381. In Asia, Japan's Nikkei 225 was off 19 points at 23,166. Hong Kong was closed for a market holiday. Other than speculating about what outlandish comment Trump will make about his coronavirus status, traders will be focusing on the US jobs numbers. Monthly increases in new jobs have been getting smaller in recent months, prompting some economists to argue the US labour market and US economy are stalling a bit, perhaps as a result of fresh local COVID flare-ups and lockdowns. “By the time the next non-farm payrolls is released, the US election will have passed. That means today's number assumes a greater than usual significance, with a weak number possibly becoming a campaign issue in the absence of a stimulus deal. The same could also be said if the data outperform, with the Republicans using their economic stewardship card to try and close their polling gap. Either way, the data should ensure we have an energetic finish to the week. said Jeffrey Halley, market analyst at Oanda. August’s initial reading came in at 1.37mln new jobs, with the unemployment rate dropping to 8.4% from 10.2% in July. The consensus forecast for September's non-farm payrolls is 850K, with the unemployment rate easing to 8.2%. Around the markets Sterling: US$1.2860, down 0.27 cents 10-year gilt: yielding 0.238%, up 0.6 basis points Gold: US$1,899.20 an ounce, down US$17.10 Brent crude: US$40.14 a barrel, down 78 cents Bitcoin: US$10,512, down US$102. 6.45 am: Early Markets: Asia / Australia Markets in China, Hong Kong, Taiwan, South Korea and India are closed today for holidays. The other markets in Asia-Pacific mostly declined as oil crude futures dropped nearly 2.9% today on COVID-19 concerns after falling more than 3% on Thursday. In Japan, the Nikkei 225 shed 0.86% in afternoon trade while Australia’s S&P/ASX 200 fell 1.36%. Australia’s retail sales data for August fell 4% on a seasonally adjusted basis, according to data from the country’s Bureau of Statistics. READ OUR ASX REPORT HERE Proactive Australia news: TNT Mines Ltd (ASX:TIN) has received high-grade assay results from underground exploration channel sampling at the 100%-owned East Canyon Uranium-Vanadium Project in south-eastern Utah, the US. Kazia Therapeutics Ltd (ASX:KZA) (NASDAQ:KZIA) has completed the institutional component of its accelerated 1 for 3 non-renounceable entitlement offer of new fully paid ordinary shares at A$0.80 per new share to raise A$16.4 million. Imugene Ltd (ASX:IMU) (OTCMKTS:IUGNF) has received a Notice of Grant from the United States Patent and Trademark Office for Patent Application 16/292032, which protects its cancer growth factor immunotherapy platform. Alto Metals Ltd’s (ASX:AME) preliminary test-work of Lord Nelson primary zone mineralisation within the Sandstone Gold Project in WA has returned "excellent" average gold recoveries of 96%. Mako Gold Ltd (ASX:MKG) has appointed highly experienced mining executive Steve Zaninovich to the board as a non-executive director to support the restructure and evolution of the company. Oakdale Resources Ltd (ASX:OAR) shares traded 35% higher yesterday to 2.8 cents after announcing the grant of an exploration licence EL 6505 in South Australia’s halloysite-kaolin hotspot on the Eyre Peninsula. Latin Resources Ltd (ASX:LRS) is entering a transformational joint venture agreement with Argentinian investment group Integra Capital S.A. which will spend up to A$1.4 million to earn a 50% interest in Latin’s Catamarca lithium pegmatite projects in Argentina. SenSen Networks Ltd (ASX:SNS) (OTCMKTS:SNNSF) achieved an important milestone last month of listing on the OTCQB venture market, which will enable US investors to easily participate in the company’s growth story. White Rock Minerals Ltd (ASX:WRM) (OTCQX:WRMCF) shares are now trading on the US-based OTCQX Best Market, the highest market tier of OTC Markets on which 11,000 US and global securities trade. Theta Gold Mines Ltd (ASX:TGM) (OTCMKTS:TGMGF) remains on track to begin gold production from its South African project with trial mining scheduled to begin this quarter.

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