The UK’s major shares reversed morning gains to nudge into the red at lunchtime on Friday, joining Europe’s major markets under water. Having closed in on two-year highs of 7,600 following near-1% gains earlier, the FTSE 100 lost its momentum as the market mood turned more nervous ahead of US jobs data due at 1.30pm UK time.
At 12.45pm, the UK’s benchmark index has dipped a toe into the red with a less than a single point decline to be back where it stared the day at 7,528.21.
Mid-caps are in far worse shape, the FTSE 250 slumping 100 point, or about 0.46%, to 21,867.76, no doubt reacting to yesterday’s Bank of England interest rate hike.
A mixed start predicted for Wall Street, after yesterday's tech-induced carnage, is not doing much to lift spirits. Futures for the Nasdaq 100 are pointing to big tech bounce when trading starts at 2.30pm UK time, boosted by an anticipated jump for Amazon and Snap following earnings reports after the market close on Thursday.
Pre-market trading earlier suggested Amazon could be heading for the biggest one-day gain in stock market history, though the rise has eased from as much as 18% to 12%.
Elsewhere, modest gains are seen for the S&P 500, with the Dow Jones set to fall.
On the currency markets, sterling lost ground against the dollar at $1.3556, while in commodity markets Brent crude futures continue to push higher, up more than 2% at $92.97 per barrel, adding to inflation concerns.
MOVING ON THE MARKETS
Travel retail group SSP (SSPG) posted a mixed trading update as the spread of the Omicron variant around the world over the holiday season and subsequent government restrictions impacted passenger numbers in many of its markets.
After running at 66% of 2019 levels from October to the start of December, revenues slowed to just 57% of 2019 levels in the eight weeks to the end of January.
On a positive note, the firm said sales were ‘trending positively’ again in the UK and some European markets, nudging the stock 0.4% higher at 265.4p.
Real estate investment firm Shaftesbury (SHB), which owns a 16-acre portfolio in the heart of London’s West End, also reported a rebound in activity heading into the festive period followed by a dip in footfall due to Omicron.
Longer term, vacancy levels are trending lower towards pre-Covid levels and rent collection continues to improve with 88% of rent for the quarter to end-December collected by early February. The shares were flat at 613p.
Shares in mobile operator Airtel Africa (AAF) lost earlier modest gains to slip 1% into the red to 155.3p after the firm posted strong nine-month results with growth of more than 20% in revenues and more than 30% in EBITDA (earnings before interest, taxes, depreciation and amortisation).
The firm increased its customer base by just under 6% to 125.8 million users with mobile money services proving especially popular and customer numbers up almost 20% in the period to December.
It was the first day of dealings for infrastructure employment firm Hercules Site Services (HERC:AIM) after the company raised £8 million of capital at 50.5p per share last month.
Hercules has strong relationships with infrastructure firms Balfour Beatty (BBY), Costain (COST) and Kier Group (KIE). In early trading shares gained 2p to 52.5p.
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