Proactive Investors -
- FTSE 100 off session low of 7,773.03
- US investors expect 25 bps Fed rate hike
- Lloyds (LON:LLOY) weak despite strong first-quarter profits
HSBC) boosted
HSBC PLC (LON:HSBA) extended its post-results advance as analysts at German bank Berenberg upgraded their rating for the global lender to 'buy' from 'hold' while maintaining their price target at 780p
"HSBC's footprint is structurally attractive," the Berenberg analysts reportedly said in a note to clients. "As well as providing the bank with access to faster-growing markets, HSBC's global presence means it is well placed to provide high-returning transaction banking services for global corporates."
"This structural strength was previously eclipsed by cyclical headwinds and uncertainty related to HSBC's restructuring. More recently, however, higher interest rates have supported HSBC's returns and risks from restructuring are now modest," they added.
The Berenberg analysts believe that strengthening activity, particularly in Asia, provides further cyclical support, and growth can be supported further by the bank's recent investments.
In afternoon trading, HSBC shares were 0.5% higher at 597.40p having gained nearly 4% after its numbers on Tuesday.
ADP payrolls jump
Ahead of the Federal Reserve's interest rate decision, due around 7.00pm BST, the latest ADP report showed a 296,0000 leap in US private sector payrolls last month, nearly double the consensus estimate of 150,000.
Ian Shepherdson, chief economist at Pantheon Macroeconomics commented: "ADP has understated the official payroll numbers in six of the past eight months since its new methodology was introduced, and on the two occasions when it has overstated payrolls, the error was very small."
"Between last August and March, ADP reported a cumulative 1,698K increase in private payrolls, while the official estimate is up 2,217K. But if the ADP model is unbiased - presumably it is intended to be - then the run of undershoots has to come to an end sooner or later, closing the 519K gap between the cumulative measures.
"The unexpectedly big April number, then, might just mark the start of the catch-up," he concluded.
Some of the top risers on the junior market
Mirriad Advertising PLC (LON:MIRI) saw its shares rocket more than 200% higher as it announced a collaboration with Microsoft (NASDAQ:MSFT) to build a new API to enable the use of the AIM-firm’s ad technology for “dynamic insertions by media partners”. "Partnering with Microsoft is an important milestone for the further development of our in-content advertising platform, proposition and business,” said chief executive Stephan Beringer.
TI Fluid Systems PLC, a global leader in automotive fluid systems, saw its shares surge 17% higher in early trade on Wednesday after the first quarter got off to what CEO Hans Dieltjens described as an “encouraging start”.
Ashtead Technology Holdings PLC (LON:AHT) saw its shares rise 6% as the UK-based subsea equipment rental and solutions provider reported a 31% increase in group revenue to £73.1mln for full-year 2022, boosted by organic growth, favourable foreign exchange rates and M&A.
Braveheart Investment Group PLC (LON:BRH) shares jumped 25% after it said the CX300 rapid test instrument being developed by its Paraytec subsidiary will be marketed for sale to researchers after passing independent testing for CE marking and successfully completing trials at the University of Sheffield.
SRT Marine Systems PLC (LON:SORA) shares rose 3% after the company announced the completion and sign-off of Phase 1 of a substantial national coast guard maritime surveillance system contract. The project, worth a total of £40mln and announced in January 2022, is for the delivery of the first stage of a planned national maritime surveillance system which will be built up in a series of contracts over several years.