FTSE 100 opens in positive territory
The FTSE 100 opened in chipper fettle after mixed performances on Wall Street and across Asia’s main markets.
The reason for the general air of positivity was hard to fathom with inflation worries lurking in the background.
Perhaps investors are really moving from growth to value plays. Who knows?
On the market, there were some early bargain-hunters out for Burberry (LON:BRBY), which rose 3% early on to lead the Footsie.
On the debit side, Wizz Air (LON:WIZZ) lost a little altitude as the budget airline joined the list of carriers posting record losses thanks to travel restrictions imposed during lockdown.
“Wizz Air remains at the mercy of factors outside of its control before it can return to profitability,” said Richard Hunter, head of markets at Interactive Investor.
“At the same time, the actions it has taken have put strong foundations in place and a 42% increase in the share price over the last year, as compared to a hike of 31% for the wider FTSE250, is evidence that there has been investor support in the background.
“With the current outlook remaining cloudy, however, investor sentiment is rather more circumspect on prospects, with the market consensus of the shares currently stuck at a hold, albeit a strong one.”
6.50 am: Footsie set open little changed
The FTSE 100 is expected to open mostly unchanged on Wednesday as a lack of major news left traders searching for direction.
Spread-better IG expects the blue-chip index to start flat on Wednesday morning after ending Tuesday’s session 58 points higher at 7,080.
The prediction of a muted open followed a mixed performance for Wall Street overnight, with the Dow Jones Industrial Average closing up 0.13% at 34,575 while the S&P 500 dropped 0.05% to 4,202 and the Nasdaq fell 0.09% to 13,736.
The picture was similarly varied in Asia this morning, with Japan’s Nikkei 225 up 0.38% while Hong Kong’s Hang Seng was down 0.53%.
With little else to go on, investors will likely look ahead to Friday’s non-farm payrolls numbers from the US for more economic clarity, as well as any fresh comment from officials at the Federal Reserve later today.
On currency markets, the pound was mostly flat against the dollar at US$1.414, with little imminent macroeconomic data in the diary likely to cause significant movement.
Around the markets:
Sterling: US$1.414, unchanged
Brent crude: US$70.51 a barrel, up 0.37%
Gold: US$1,897 an ounce, down 0.07%
Bitcoin: US$36,660, down 0.8%
6.50am: Early Markets – Asia / Australia
Stocks in the Asia-Pacific region were mixed on Wednesday as Australia’s economy grew by 1.8% in the first three months of 2021 compared to the final three months of 2020.
This was ahead of a 1.5% growth that economists were expecting.
The Shanghai Composite in China dipped 0.58% and Hong Kong’s Hang Seng index fell 0.52%
In Japan, the Nikkei 225 gained 0.43% while South Korea’s Kospi rose 0.04%.
Shares in Australia lifted, with the S&P/ASX 200 trading 0.93% higher.
Proactive Australia news:
Surefire Resources NL (ASX:SRN) (FRA:GBL) has intersected thick gold mineralisation with high-grade intervals from nine reverse circulation (RC) holes at Yidby Road prospect within Yidby Gold Project in the highly prospective southwest Murchison province of Western Australia.
archTIS Ltd (ASX:AR9) is set to expand deployment of its cloud technology platform for the secure collaboration of sensitive information with the Australian Department of Defence.
Antipa Minerals Ltd (ASX:AZY) has welcomed a firm commitment from Netherlands-based Commodity Discovery Fund (CDF) to raise A$1 million through the issue of 23,809,524 new shares at A$0.042 per share.
Azure Minerals Limited (ASX:AZS) (OTCMKTS:AZRMF) has discovered two new broad zones of nickel-copper sulphide mineralisation at its flagship Andover Nickel-Copper Project near Port Hedland in WA.
OliveX Holdings Ltd (NSX:OLX) has signed a milestone partnership with leading health and fitness brand Les Mills to stream all of the ground-breaking Les Mills-created group exercise content using OliveX’s web-player platform.