London stocks steady with eyes on US employment report
June 6 (Reuters) - London shares remained nearly flat on Friday as investors adopted a wait-and-see approach ahead of crucial U.S. jobs data.
As of 0950 GMT, the blue-chip FTSE 100 (.FTSE), opens new tab was up 0.05%, poised for its fourth consecutive weekly gain.
The domestically focused FTSE 250 (.FTMC), opens new tab was up 0.03% on the day, heading toward its second straight weekly advance.
The upcoming US non-farm payrolls report will likely set the market tone, offering insights into how U.S. President Donald Trump's trade policies are affecting the labor market and how the Federal Reserve might navigate the uncertain trade environment.
British government bond yields eased across the curve, mirroring eurozone counterparts ahead of the data release.
Earlier this week, Trump doubled tariffs on steel and aluminum imports, though the UK received an exemption following a limited trade deal signed in early May that established a framework for future negotiations.
Global attention also remained fixed on trade negotiations, with potential easing in U.S.-China trade tensions following Trump's phone call with Chinese President Xi Jinping on Thursday.
On the stock indexes, homebuilders (.FTNMX402020), opens new tab were leading the way with a gain of 0.9%.
Life insurers were up 0.5% after Deutsche Bank upgraded Phoenix (PHNX.L), opens new tab and Prudential (PRU.L), opens new tab to "buy", with both stocks climbing nearly 1%.
On the flip side, industrial metal miners (.FTNMX551020), opens new tab dropped 1.1%.
The heavy-weight aerospace and defence index (.FTNMX502010), opens new tab shed 0.8% with Babcock International Group (BAB.L), opens new tab sliding 3.4%, making it the biggest decliner on the blue-chip index.
In other major developments, Finance Minister Rachel Reeves said on Thursday that upbeat business surveys and strong first-quarter GDP indicate the British economy is recovering from its weak end to 2024, though the public remains concerned about slow improvements in living standards.
Purchasing managers' indexes released this week have shown a recovery in activity after a sharp fall in April due to the shock of Trump's tariffs.
Investors will closely monitor next week's employment figures and April GDP estimates for further insights into the country's economic health.
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an hour ago
- Reuters
Iran tensions make thermal coal a winner against pricier LNG
LAUNCESTON, Australia, June 23 (Reuters) - Thermal coal may end up as a major beneficiary of escalating hostilities in the Middle East, as the fuel used to generate electricity becomes cheaper than one of its main competitors liquefied natural gas (LNG). Much of the focus of the potential fallout from the conflict between Israel, and now the United States, and Iran is the threat to crude oil and refined fuels shipped through the Strait of Hormuz. But all of Qatar's LNG also goes through the narrow waterway separating the gulfs of Persia and Oman, and this amounts to almost 20% of the global seaborne supply of the super-chilled fuel. While there has yet to be any disruption of Qatar's LNG, the mere threat that Iran may attempt to block the strait or attack shipping has seen spot LNG prices rise in Asia, the biggest market. LNG for delivery to North Asia rose to $14 per million British thermal units (mmBtu) in the week to June 20, a four-month high and up from $12.6 the prior week. The weekly price assessment also came before the United States joined Israel's bombing campaign against Iran, with President Donald Trump claiming on June 21 that the strikes had "completely and totally obliterated" three nuclear facilities. The involvement of the United States makes it more likely that LNG prices will continue to rise to reflect the increased risk premium. But even at the current level, LNG is no longer competitive against thermal coal in the two major markets where fuel-switching can occur, Japan and South Korea. The price of Australian thermal coal with an energy content of 6,000 kilocalories per kilogram at Newcastle Port rose to a four-month high of $109.41 a metric ton in the week to June 20, according to data from globalCOAL. This is the grade of thermal coal most used by Japan and South Korea, as well as Taiwan. Using LSEG data to convert the price of coal into million British thermal units shows that Australia's Newcastle benchmark is currently around $12.18 per mmBtu, or a 13% discount to the spot LNG price. The most recent low for spot LNG was in early May when the price dipped to $11 per mmBtu, at which point it was cheaper than Newcastle coal, which was $11.47. But spot LNG prices have rallied harder than those for coal in recent weeks, a trend that is likely to continue for as long as tensions remain high in the Middle East. Since it has only been 10 days since Israel started its bombing campaign against Iran it's still too early to see a sustained trend in the volumes of coal being purchased by Japan and South Korea. However, there are some signs that coal imports are starting to increase, with commodity analysts Kpler tracking Japan's arrivals at 6.57 million tons in June, up from 6.39 million in May. More interestingly, Kpler is already estimating that Japan's thermal coal imports will jump to 7.23 million tons, which would be the most since March. It's likely that the July number will be revised higher as more cargoes are assessed. There is also an element of seasonality to Japan's thermal coal imports, which tend to rise in both the winter and summer peak demand periods. This means it will be important to look at the year-on-year changes to see if Asia's third-biggest coal buyer is indeed buying more of the fuel. Japan imported 10.05 million tons of thermal coal in July last year, and given that the volume already assessed for this coming July is more than 70% of that total, it's likely that imports next month will show an increase from July 2024. It's also worth noting that Asia's two biggest coal importers, China and India, don't have much ability to swap LNG for coal given their limited use of natural gas for power generation. But on a longer-term note, both countries are likely to view the current unrest in the Middle East as another compelling reason to reduce dependency on imported crude oil and LNG as rapidly as possible. If that means using their vast domestic reserves of coal, supplemented by imports, to electrify transportation at a faster pace, it's likely that this is a path they will pursue irrespective of climate change concerns. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab. The views expressed here are those of the author, a columnist for Reuters.
Reuters
an hour ago
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Indian rupee, bonds under pressure as US strike on Iran deepens Middle East conflict
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Leader Live
an hour ago
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Brexit rules spark ‘clear demand' for more motorhome parking, lobby group says
Boosting provision for these vehicles would generate more revenue for local businesses and increase the number of visitors to tourist destinations outside the peak summer season, the Campaign for Real Aires (Campra) said. Aires is a French word used to describe designated stopping places for motorcaravans – the collective term for motorhomes and campervans – which are much more common in continental Europe than the UK. Post-Brexit rules mean UK passport holders are prohibited from being in the Schengen area – which covers most of the European Union and some other European nations – for more than 90 days within a 180-day period. That means many UK-based motorcaravan users are seeking domestic destinations for overnight trips. But a survey of 6,731 users suggested 88% are dissatisfied with the UK's availability of overnight parking in desirable locations. The poll also indicated that motorcaravaners spend an average of £51 per day in local businesses and £23 per night on overnight parking or campsite fees. Many respondents commented on the UK's lack of infrastructure and welcoming attitude compared with continental Europe, Campra said. Last month, Hampshire County Council approved plans to ban campervans and motorhomes from staying overnight at the south coast beauty spot of Keyhaven, near Lymington. It claimed the move would 'bring order' to the area. Campra managing director Steve Haywood said welcoming motorcaravans to an area 'can be a hugely positive move'. He went on: 'There is a clear demand – emphasised by post-Brexit travel restrictions – for more overnight stay options in UK towns and cities, and those towns and cities could benefit hugely by embracing motorcaravans. 'More councils are seeing the benefits of providing facilities, instead of suffering the cost of enforcement and bans, not to mention the loss of potential revenue to businesses. 'In Fleetwood, Lancashire, for example, the introduction of overnight parking in the seafront car park for £5 per night has seen a huge boost in revenue for local shops, and has been so successful that additional facilities are now being planned for motorcaravanners. 'Every council that has operated a 12-month trial aire has been successful and made the overnight parking permanent.' Driver and Vehicle Licensing Agency figures show more than 416,000 motorcaravans are registered in the UK. A spokesperson for the Local Government Association said: 'Policies around overnight motorcaravan parking and the provision of facilities are a matter for local councils.'
