Proactive Investors -
- FTSE 100 hit session low of 7,633.29
- Fed rate decision eyed as US stocks advance
- UK economic activity slows in July - S&P
Wall Street pushes ahead
The FTSE 100 index remained a touch lower in midafternoon trading, stuck between session highs and lows even as US stocks started higher ahead of a crucial week for key central bank policy decisions and some big US corporate earnings.
Around 15 minutes after the New York open, the Dow Jones Industrials Average was up 101 points, or 0.3% at 35,328, extending its recent gains to an 11th session in a row, while the broader the S&P 500 and the tech-laden Nasdaq Composite both gained 0.4%.
"The market will be watching closely to see if the Fed will signal its intention to pause rate hikes or whether it will give itself the flexibility to react to future economic conditions," commented FOREX.com senior market analyst Fiona Cincotta.
Airport relief
Staying with industrial strife, some of the strikes planned by baggage handlers and other workers at Britain's no.2 airport Gatwick in the peak summer travel period have been suspended or cancelled, the Unite trade union said on Monday.
Earlier this month, Unite warned that airlines including easyJet (LON:EZJ), TUI (LON:TUIT) and British Airways (LON:ICAG) could face cancellations and delays after two sets of four-day strikes by 950 workers were announced for late July and early August.
But improved pay offers mean that DHL workers, who provide services to easyJet, have cancelled their walkouts completely after they voted to accept a 15% pay rise, the union said.
In a statement on Monday, Unite general secretary Sharon Graham said: “This is an excellent result secured by the steadfast position of our DHL members. Once again, workers are gaining real material benefits from Unite’s absolute focus on improving jobs, pay and conditions.”
Workers for Menzies and ASC are balloting on improved pay offers, raising the possibility that they could also cancel their planned strike action if they accept the new deal. Currently ASC workers have not yet suspended their walkouts, while Menzies have suspended some of them.
A fourth set of workers, who are contracted by GGS, have suspended strikes between July 28-Aug.1 to allow negotiations to continue but are still due to walk out August 4-8.
Unite regional officer Dominic Rothwell noted: “Strikes by DHL workers have now been cancelled. ASC and Menzies workers are being balloted on new offers and talks are progressing with GGS. Unite will be making no further comment until the outcome of the ballots and negotiations are known later this week.”
Rail woes roll on
Despite progress being made in London, notably with this week's tube stoppages called off, national rail strikes are still expected to take place next Saturday 29 July following closures last Saturday and last Thursday.
The industrial action will affect services such as Chiltern Railways, Great Western Railway, TransPennine Express and the West Midlands Railway.
In addition, ASLEF workers are also taking “action short of a strike” by refusing to work any overtime between Monday 31 July and Saturday 5 August.
While the ASLEF strikes won’t bring any rail services to a complete standstill, similar lines to those affected by the RMT strikes will be operating with reduced timetables.
A look at some of today’s movers
Fallers
S4 Capital - down 20% to 111.3p: Shares in Sir Martin Sorrell's advertising group, plunged 22% after it sounded the earnings alarm. It cited the tech sector's growing caution amid tough macroeconomic conditions for cuts to revenue and profit forecasts.
Berkeley Energia - down 47% to 19p: Berkeley Energia halved as its latest update highlighted that Spain’s election over the weekend gave an inconclusive result, suggesting permitting for its Salamanca uranium deposit will remain gridlocked.
Risers
Ocado (LON:OCDO) - up 12.2% to 770.8p: Ocado topped the FTSE 100 risers on Monday, with shares leaping 12% higher after it settled a long-running intellectual property dispute with its Norwegian rival AutoStore. The online grocer and robotics company said AutoStore would pay it £200mln over two years, starting in July.
Canadian Overseas - up 17% to 2p: Canadian Overseas Petroleum shares shot up in Monday morning's early deals as the AIM-quoted firm advanced a partnering process that promises to trigger the development of its Cole Creek property in Wyoming by signing a letter of intent (LOI).
Itsarm - up 208% to 0.62p Shares in the UK-based shell company formerly known as In The Style, surged higher after confirming a raft of board changes that give it a possible survival lifeline.
Upland Resources (LON:UPL) - up 14% to 0.6p: Shares rose by some 14% in Monday’s early deals as the micro-cap explorer told investors it is assessing and contracting an onshore rig for the Sarawak project in northern Malaysia.