Proactive Investors -
- FTSE 100 down 13 points at 7,442
- Halfords (LON:HFD) tightens guidance, sees softer big ticket sales
- Aviva (LON:AV) knocked by Deutsche Bank (ETR:DBKGn) downgrade
Endeavour, Fresnillo and Greatland Gold jump on rising precious metals prices
Gold and silver miners continue to shine benefiting from the recent rally in precious metals prices.
The price of gold has risen 2.5% this week alone, taking it back above the $2,000 an ounce mark, currently trading at $2,038.73/ounce, while the price of silver has enjoyed an even better week, up 5.7%.
The share prices in gold miner Endeavour Mining PLC (LON:EDV) is up a further 3.1% today, taking gains in the past month to more than 10%, while gold and silver miner, Fresnillo PLC (LON:FRES) has jumped 5.8% today, and 6.7% in the past month.
Greatland Gold PLC (LON:GGPL) is another stock to benefit, rising 5.7% today, and a bumper 26% in the past month.
Susannah Streeter, head of money and markets, Hargreaves Lansdown (LON:HRGV) explains the price has gold has been helped by the dip in the dollar as interest rate cuts are eyed on the horizon.
“A cheaper greenback makes gold less expensive to buy for foreign investors,” she pointed out.
“The eruption of conflict in the Israel and Gaza sparked this most recent rally. Although there are hopes a truce can be extended, there is deep uncertainty about what might lie ahead for the region, which is making gold edge higher,” she added.
High Court kicks out challenge to LME
The High Court has rejected an attempt by a US hedge fund to sue the London Metal Exchange for nearly half a billion dollars over its decisions when nickel prices spiked dramatically last year.
The court disagreed with Elliott Management's claims that the LME did not have the power to cancel a series of trades.
The move cost Elliott about $456 million in lost net profits, the court in London heard.
A second claimant, Jane Street Global Trading, said that it had lost around $15 million.
Elliott said it would make a bid to appeal against the decision.
The exchange's managers suspended trading in nickel for a day in early March last year after an enormous spike in the price of the metal.
JD Sports boosted as Foot Locker raises sales outlook
The FTSE 100 is trying its best to move into positive territory, trading close to its opening levels now.
JD Sports Fashion has spiked 4.5% higher after US peer Foot Locker (NYSE:FL) raised its full-year sales after a strong Thanksgiving period.
Admittedly, the footwear retailer still expects sales to fall but by less than previously guided - shares in Foot Locker are more than 8% higher in pre-market trading in the US.
JD’s share price got a similar push last week after another US peer Dick’s Sporting Goods raised its profit outlook after posting sales that were “meaningfully ahead” of analyst expectations.
In Europe, peers Adidas (ETR:ADSGN) and Puma are up 1.9% and 2.2% respectively.
US markets expected to open higher
US markets are expected to open higher, tracking most European markets, on hopes that interest rate cut will come sooner than thought.
In pre-market trading, futures for the Dow Jones Industrial Average were up 0.3%, while those for the S&P 500 were 0.3% higher, and contracts for the Nasdaq 100 futures rose 0.4%.
Investors are hoping for favourable European and US inflation readings after positive data in Europe today, boosting the narrative that rates could soon be coming down.
Jim Reid at Deutsche Bank noted comments from the generally hawkish Fed Governor Waller on Tuesday, who said that he was “increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2%”.
“His off the cuff Q&A responses even suggested cuts were potentially possible in H1 if inflation behaves as he thinks it could. So surprisingly explicit,” Reid pointed out.
Reid said the remarks were taken as another sign that the Fed were done hiking rates, and investors moved to price in a noticeably more dovish path for rates over the year ahead.
In the US today, there will be a estimate for gross domestic product in the third quarter, which economists expect will show growth accelerated by 5%, a slight revision from the preliminary estimate of 4.9%.
Elsewhere, earnings are due from discount retailer Dollar Tree (NASDAQ:DLTR), spam maker Hormel and shoe retailer Foot Locker.
After the closing bell, tech groups Salesforce and Snowflake will report.
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