Source: Sharecast
The FTSE 100 was up 0.3% at 5,805.50, flitting between gains and losses as market participants mulled the absence of a ‘blue wave’ sweep for the Democrats and the fact that it could be several more days before the outcome of the election is known.
So far, press reports indicate that Democrat Joe Biden has edged ahead with 238 Electoral College votes to Republican Trump’s 213. They need at least 270 votes out of 538 to win the presidency.
Despite no clear result, Trump declared victory over Biden and said that any challenge to this would be "fraud on the American public". With final votes yet to be tallied in several swing states, Trump said he will ask the Supreme Court to stop all vote counting.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "With Donald Trump already claiming victory even though millions of votes are still uncounted, investors may have to belt up and brace themselves for some volatile sessions of trading ahead. So far, as trading has got underway in Europe, investors seem to be adopting a wait and see approach, as it is likely to be many hours and possibly days before all states tally all the ballots. With a high number more votes cast this year, and many more by mail because of the coronavirus, the process could be long and protracted.
"With the outcome potentially in doubt for days to come US equity futures have already been swinging, but tech stocks gained, with Nasdaq futures rising by more than 3% at one point before easing back, on speculation a Trump win could benefit the sector. The dollar has also lifted against the euro and with uncertainty the name of the game there are signs some investors are ploughing into safe haven bonds, with yields on US treasuries falling back."
On home shores, a survey released earlier suggested the economy was headed for a double-dip recession, with activity in the services sector slowing in October. The IHS/Markit CIPS services purchasing managers’ index fell to 51.4 from 56.1 in September. This was below the flash reading of 52.3 and marked the worst level since June. However, it was still above the 50.0 mark that separates contraction from expansion.
The composite PMI, which includes the manufacturing sector, fell to 52.1 in October from 56.5, hitting the lowest level in four months.
Tim Moore, economics director at IHS Markit, said: "October data indicates that the UK service sector was close to stalling even before the announcement of lockdown 2 in England, with tighter restrictions on hospitality, travel and leisure leading to a slump in demand for consumer-facing businesses."
Moore said the upcoming lockdown and a worsening Covid-19 situation across the rest of Europe mean the UK economy appears to be "on course for a double-dip recession this winter and a far more challenging path to recovery in 2021".
In UK equity markets, cyclical stocks were under the cosh, with banks Standard Chartered, HSBC and Lloyds weaker, while miners also lost ground.
Defensives gained, however, with AstraZeneca, British American Tobacco and GlaxoSmithKline all higher.
Royal Mail was the top performer on the FTSE 250 after an upgrade to ‘overweight’ at JPMorgan, while Big Yellow was boosted by a double upgrade to ‘overweight’ by the same outfit.
Retailer Marks & Spencer rallied despite saying that it swung to a half-year loss as coronavirus lockdowns hit its clothing division. The company posted a pre-tax loss of £87.6m from a profit of £159m a year earlier.
Richard Hunter, head of markets at Interactive Investor, said: "While an historic loss cannot be ignored, Marks & Spencer is working at pace to transform its business and there are some signs of early success.
"The streamlining is likely to result in annualised cost savings of £115 million, the online channel is receiving particular attention to modernise the overall offering and the Food business has maintained its position as a positive contributor to the business."
Morgan Sindall also advanced after the construction and regeneration group said its full-year performance was set to be slightly above the top end of its guided range and reinstated its dividend.
Market Movers
FTSE 100 (UKX) 5,805.50 0.32%
FTSE 250 (MCX) 17,551.63 0.34%
techMARK (TASX) 3,696.74 1.40%
FTSE 100 - Risers
AstraZeneca (AZN) 8,338.00p 4.71%
Hikma Pharmaceuticals (HIK) 2,688.00p 3.98%
Avast (AVST) 488.40p 3.83%
Experian (EXPN) 3,022.00p 3.53%
British American Tobacco (BATS) 2,574.00p 3.44%
Smurfit Kappa Group (SKG) 3,194.00p 3.23%
Ocado Group (OCDO) 2,505.00p 3.09%
Next (NXT) 5,946.00p 2.69%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,866.00p 2.66%
RSA Insurance Group (RSA) 464.10p 2.65%
FTSE 100 - Fallers
Standard Chartered (STAN) 353.50p -5.10%
Antofagasta (ANTO) 1,007.50p -3.50%
HSBC Holdings (HSBA) 334.90p -3.45%
CRH (CRH) 2,849.00p -3.42%
Evraz (EVR) 355.50p -2.84%
Melrose Industries (MRO) 125.15p -2.76%
NATWEST GROUP PLC ORD 100P (NWG) 125.60p -2.48%
Legal & General Group (LGEN) 186.70p -2.43%
Barclays (BARC) 110.70p -2.35%
Lloyds Banking Group (LLOY) 28.62p -2.15%
FTSE 250 - Risers
Royal Mail (RMG) 253.70p 8.51%
Morgan Sindall Group (MGNS) 1,226.00p 5.33%
Marks & Spencer Group (MKS) 96.26p 4.63%
Convatec Group (CTEC) 188.70p 3.85%
Genus (GNS) 4,308.00p 3.56%
Allianz Technology Trust (ATT) 2,610.00p 3.37%
Ultra Electronics Holdings (ULE) 2,006.00p 2.87%
Dixons Carphone (DC.) 101.00p 2.80%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,866.00p 2.66%
Monks Inv Trust (MNKS) 1,188.00p 2.59%
FTSE 250 - Fallers
Centamin (DI) (CEY) 125.50p -3.57%
IWG (IWG) 268.60p -3.10%
Fisher (James) & Sons (FSJ) 1,096.00p -3.01%
Hochschild Mining (HOC) 227.00p -2.41%
Greencore Group (GNC) 89.25p -2.35%
Diversified Gas & Oil (DGOC) 112.40p -2.26%
Capita (CPI) 24.42p -2.09%
BMO Global Smaller Companies (BGSC) 122.40p -2.08%
Cineworld Group (CINE) 27.47p -2.07%
OneSavings Bank (OSB) 315.20p -1.99%
