FTSE 100 Seen Lower Again as Risk Aversion Continues

FTSE 100 Seen Opening Lower Amid Risk Aversion

0641 GMT - The FTSE 100 is seen opening down 26 points, according to spreadbetting firm IG, after the London index closed 31 points lower on Monday amid widespread risk aversion. "Risk sentiment is morose this week with the escalating tensions in Ukraine, rising Covid cases in China, mounting tensions between U.S. and China, the selloff in U.S. and other treasuries, the relentless appreciation in the U.S. dollar and the drop in safe haven currencies," Swissquote Bank analyst Ipek Ozkardeskaya writes. Meanwhile, data on Tuesday showed the U.K. unemployment rate fell to 3.5% in the June-August period, the lowest since 1974, although the number of job vacancies fell and the number of inactive people in the labor market jumped. ([e-mail])

 
Companies News: 

Genius Sports, Sportradar Settle UK Lawsuit Over Data Dispute

Genius Sports Ltd. and Sportradar Group AG have resolved litigation over Genius Sports' partnership with Football DataCo.

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PureTech Mutually Agrees to End Takeover Talks With Nektar Therapeutics

PureTech Health PLC said Tuesday that it has mutually agreed to terminate takeover talks with potential buyer Nektar Therapeutics.

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Reach CFO Simon Fuller to Step Down; 3Q Revenue Hit by Death of Queen

Reach PLC said Tuesday that Chief Financial Officer Simon Fuller will step down from his role on Dec. 31, and that revenue in the third quarter was hurt by the death of Queen Elizabeth II in September.

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Plus500 Sees 2022 Revenue and Ebitda Ahead of Views Thanks to Robust Customer Income

Plus500 Ltd. said Tuesday that it expects its fiscal 2022 performance to be ahead of market expectations, driven by robust levels of customer income and a flexible cost base.

 
Market Talk: 

Breakevens Offer Value Ahead of U.K. March 2051 Index-Linked Gilt Auction

0643 GMT - Breakevens offer value at current levels and could attract investor demand at the U.K. Debt Management Office's GBP900 million tap of the 0.125% March 2051 index-linked gilt, Citi's rates strategists say in a note. "The context is that of great real yield / breakeven volatility (+63bp and -33bp yesterday, respectively), both back towards historically cheap levels," they say. Citi's strategists, nevertheless, would be more cautious about real yield prospects, they say. "While breakevens have room to retrace and 10y gilt yields have pretty much reached our medium-term target (4.47% as of yesterday's close vs. 4.5% target), gilts are prone to overshooting and conditions are ripe," they say. ([e-mail])

UK Gilt Markets Look to Remain Cause of Concern

0638 GMT - The U.K. gilt markets are again showing "highly concerning signs," Mizuho's rates strategist Peter McCallum and rates strategy analyst Evelyne Gomez-Liechti say in a note. Monday's jump in long-end real yields, after a selloff on Friday, "means that we likely have another situation whereby LDI funds will be struggling to post margin quickly enough, and gilt selling will encourage more selling," the strategists say. In a new announcement earlier Tuesday, the Bank of England said that it will widen the scope of its daily gilt purchase operations to include index-linked gilts, effective Tuesday. The BOE's temporary gilt purchases are set to run until Oct. 14 to help restore market functioning. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

10-11-22 0306ET