FTSE 100 to Open Lower After Lacklustre Data

The FTSE 100 is seen falling at the start of trading as lacklustre U.S. and Chinese economic data fuel concerns about the global economic recovery stalling. Spreadbetting firm IG expects the index to open 13 points lower. Caixin data on Wednesday showed Chinese manufacturing activity contracted for the first time since April 2020 in August while ADP reported U.S. private payrolls rose by much less than expected in August. With little on the economic calendar Thursday, investors' focus now turns to Friday's closely-followed U.S. nonfarm payrolls report. A poor report wouldn't change the likelihood of the Federal Reserve tapering asset purchases, but it "will affect the pace, timing and scope of one," CMC Markets analyst Michael Hewson says. 


 
Companies News:

JD Sports to Continue Fight For Blocked Footasylum Purchase Despite Regulator's Rejection

JD Sports Fashion PLC said Thursday that it would continue to fight for its planned acquisition of Footasylum, despite a continued provisional rejection of the deal by the U.K.'s competition watchdog.

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EnQuest Posts Narrowed 1H Loss, Sees 2021 Production at Lower End of Range

EnQuest PLC on Thursday reported a narrowed loss for the first half of the year, but warned that full-year production will be at the lower end of the guidance range.

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Melrose Industries 1H Pretax Loss Narrowed

Melrose Industries PLC said Thursday that its first-half pretax loss narrowed after booking lower costs, and that the positive performance seen in its Powder Metallurgy division in the period is expected to continue through the second half.

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Grainger Raised GBP209 Mln in Discounted Share Placing

Grainger PLC said Thursday it raised 209 million pounds ($287.8 million) in a share placing at a small discount.

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Auction Technology Shareholders Sell 10% Stake for GBP189 Mln

Major shareholders in Auction Technology Group PLC have sold a 10% stake in the company for gross proceeds of 189 million pounds ($260.3 million).

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Gulf Keystone Swung to 1H Profit, Raises 2021 Production Guidance Midpoint

Gulf Keystone Petroleum Ltd. on Thursday reported a swing to profit for the first half and tightened its full-year production guidance toward the higher end of the range.

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Coca-Cola Europacific Partners 1H Pretax Profit Rose

Coca-Cola Europacific Partners PLC said Thursday that pretax profit for the first half rose as revenue increased, and that its digital business was on track for record revenue in 2021. 


 
Market Talk:

Stimulus-Induced Commodity Boom Is Losing Steam

The recent upswing in mined-commodity prices underpinned by pandemic-related stimulus is losing steam, Jefferies says as it trims its price forecasts for some materials including copper and iron ore. The bank has, however, raised projections for some others, including aluminum, zinc and coal, saying its expectations for the latter in particular had been too conservative. "The rapid, stimulus-fueled recovery in demand coming out of Covid lockdowns in 2020 was clearly unsustainable," Jefferies says. But even as this boom cools, the bank continues to forecast an extended period of strength for some commodities because of global decabonization efforts, which are expected to be metals intensive.

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Woodside's BHP Deal May Spur Decommissioning Liability of Up to $4 Bln

Woodside will be taking on a $2 billion-$4 billion decommissioning liability if it proceeds with the acquisition of BHP's petroleum business, Macquarie says. Woodside hasn't quantified the liability so far, but has said it is a key area of due diligence. "Bass Strait is a near-term focus, with decommissioning activities on shut-in wells and platform topsides taking place near term, and larger-scale platform removal to commence later this decade," Macquarie says. It believes Gulf of Mexico decommissioning liabilities will also be large, given the scale of operations and water depths involved. However, these will likely be longer-dated than Bass Strait.

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

09-02-21 0305ET