The FTSE 100 resisted the pull of Wall Street and Asia’s main markets to open flat as a pancake.
Fed chair Jerome Powell’s comments on US inflation and non-comments on the broader vision of the US rate-setting body met with a collective shrug here in the UK.
Likewise, there appeared to be little early excitement ahead of words from Bank of England governor Andrew Bailey, whose turn it is to speak at the virtual gathering that has replaced the annual Jackson Hole jamboree for central bankers.
Unsettling for the markets early on was the news that Japan’s premier Shinzo Abe is resigning due to ill health.
His eight years in office make him the country’s longest-serving prime minister and his tenure has coincided with a period of stability in Japanese politics.
The nudge higher in the gold price gave a boost to precious metals groups Polymetal (LON:POLY), up 1.6%, and Fresnillo (LON:FRES), ahead 1.5%.
On the downside, Rolls Royce (LON:RR.) continued its post-results sell-off even after heading off the market’s major worry – a highly dilutive rights issue – by saying it well sell assets worth around £2bn.
6.34 am: Forward momentum predicted
London reacted with indifference to yesterday’s speech from the chairman of the Federal Reserve, Jerome Powell, but is making more of an effort today.
The FTSE 100 is expected to open at around 6,023 and seeing as the index had the decency to close at 6,000 (down 46 points) last night, that makes the arithmetic easy in terms of calculating the gain.
“As a reaction to the pandemic, the Fed pursued an extremely aggressive stimulus package as a way of trying to cushion the blow of the lockdowns. Central banks around the globe all took the decision to go down the easing route in a bid to assist their respective economies. At the time of the interest rate cuts and the various government bond-buying schemes were announced, some economists cautioned there could be a spike in inflation,” said David Madden at CMC Markets.
Robert Carnell, ING’s Regional Head of Research for Asia-Pacific, would like to know how Powell “is going to reach, let alone exceed 2% inflation” but said he had has bought markets some more time.
While London’s Footsie drifted lower following Powell’s speech yesterday at Jackson Hole, in the US the Dow Jones rose 160 points to 28,492 and the S&P climbed 6 points to 3,485.
Asian markets this morning are mostly firmer with Japan’s Nikkei 225 up 88 points at 23,297 and Hong Kong’s Hang Seng 161 points to the good at 25,442.
Today, the Bank of England’s governor, Andrew Bailey, is set to do his party piece at Jackson Hole.
$BOE Bank of England governor Andrew Bailey's speech at Jackson Hole in focus for Friday https://t.co/f3dzq9PlvK via @proactive_UK @bankofengland #BOE
— Proactive (@proactive_UK) August 27, 2020
The market will be interested in Bailey’s views on negative rates, said economists at ING: “They are still on the table and a renewed threat to use them could prove some trouble for GBP”.
On the corporate front, the level of in-fighting among the stakeholders has made Amigo Holdings PLC (LON:AMGO) one of the most inappropriately named companies listed on the stock exchange.
The consumer credit company is set to announce his quarterly numbers today.
Around the markets
- Sterling: US$1.3267, up 0.66 cents
- 10-year gilt: yielding 0.339%, up 3.51 basis points
- Gold: US$1,951.50 an ounce, up US$17.90
- Brent crude: US$45.64 a barrel, up 4 cents
- Bitcoin: US$11,388, up US$116
6.45 am: Early Markets: Asia / Australia
Stocks in Asia Pacific were mixed today as investors reacted to recent developments from the US Federal Reserve.
Shares in Japan led losses among the region’s major markets with Nikkei 225 falling 1.66%
Chinese stocks were higher with the Shanghai composite up 1.08 % while Hong Kong’s Hang Seng index advanced 1.34%.
S&P/ASX 200 fell 52 points or 0.86% to 6,074 with losses across almost all sectors with materials, technology and consumer discretionary experiencing some of the sharper falls.
READ OUR ASX REPORT FOR MORE INFORMATION
Proactive Australia news:
Emerald Clinics Ltd (ASX:EMD) has raised $2.2 million via the placement of shares at 8 cents each to fund the expansion of its clinical services, research and development and business development opportunities.
Pantoro Limited (ASX:PNR) (FRA:RKN) has increased its share purchase plan (SPP) to $5.5 million from the initial target of $5 million after receiving strong interest from its shareholders.
Perseus Mining Limited (ASX:PRU) (TSE:PRU) (OTCMKTS:PMNXF) has revealed updated mineral resources and ore reserves at each of its West African operations.
Salt Lake Potash Ltd (ASX:SO4) (LON:SO4) (OTCMKTS:WHELF) has completed the retail component of the 1 for 3.2 pro-rata accelerated non-renounceable entitlement offer, which formed part of the company's underwritten A$98.5 million equity raising.
Red River Resources Ltd (ASX:RVR) has received encouraging early results, including visible gold, from a maiden diamond drilling program targeting the Eleanora Garibaldi Lode at Hillgrove Gold Project in NSW
Alkane Resources Limited (ASX:ALK) (OTCMKTS:ALKEF) continues to enhance the underground mining potential of satellite deposits at Tomingley Gold Operations in Central West NSW with more high-grade results.
Roots Sustainable Agricultural Technologies Ltd (ASX:ROO) has set up a new plant-based meats department aimed at capitalising on study results that show the positive effects of its Root Zone Temperature Optimisation (RZTO) technology on the yield of protein-based plants.
Greenland Minerals Ltd (ASX:GGG) has been notified by Greenland’s Environmental Agency for Mineral Resources Activities (EAMRA) that the environmental impact assessment (EIA) review process for its world-class Kvanefjeld Rare Earth Project in Greenland is near completion.
Bryah Resources Ltd (ASX:BYH) has made new a nickel-copper-cobalt discovery after assessing results from recently completed reverse circulation (RC) drilling at Mount Labouchere prospect within the Bryah Basin.
https://news.google.com/__i/rss/rd/articles/CBMijAFodHRwczovL3d3dy5wcm9hY3RpdmVpbnZlc3RvcnMuY28udWsvY29tcGFuaWVzL25ld3MvOTI3NzY4L2Z0c2UtMTAwLXNldC10by1vcGVuLW9uLXRoZS1mcm9udC1mb290LWFoZWFkLW9mLWJvZS1nb3Zlcm5vci1zLXNwZWVjaC05Mjc3NjguaHRtbNIBPmh0dHBzOi8vd3d3LnByb2FjdGl2ZWludmVzdG9ycy5jby51ay9jb21wYW5pZXMvYW1wL25ld3MvOTI3NzY4?oc=5
2020-08-28 05:34:00Z
CBMijAFodHRwczovL3d3dy5wcm9hY3RpdmVpbnZlc3RvcnMuY28udWsvY29tcGFuaWVzL25ld3MvOTI3NzY4L2Z0c2UtMTAwLXNldC10by1vcGVuLW9uLXRoZS1mcm9udC1mb290LWFoZWFkLW9mLWJvZS1nb3Zlcm5vci1zLXNwZWVjaC05Mjc3NjguaHRtbNIBPmh0dHBzOi8vd3d3LnByb2FjdGl2ZWludmVzdG9ycy5jby51ay9jb21wYW5pZXMvYW1wL25ld3MvOTI3NzY4
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