Banks, Financial

Banking app targets millennials who want help budgeting

Graduate debt, rent and high living costs have made it hard for millennials to save for a house, a pension or even a holiday. For Ollie Purdue, a 23-year-old law graduate, this was reason enough to launch Loot, a banking app targeted at tech-dependent 20-somethings who want help to manage their money and avoid falling […]

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Economy

Eurozone inflation climbs to highest since April 2014

A welcome dose of good news before next week’s big European Central Bank meeting. Year on year inflation in the eurozone has climbed to its best rate since April 2014 this month, accelerating to 0.6 per cent from 0.5 per cent on the back of the rising cost of services and the fading effect of […]

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Financial

Wealth manager Brewin Dolphin hit by restructuring costs

Profits at wealth manager Brewin Dolphin were hit by restructuring costs as the company continued to shift its focus towards portfolio management. The FTSE 250 company reported pre-tax profits of £50.1m in the year to September 30, down 17.9 per cent from £61m the previous year. Finance director Andrew Westenberger said its 2015 figure was […]

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Financial

Travis Perkins and Polymetal to lose out in FTSE 100 reshuffle

Builders’ merchant Travis Perkins and mining company Polymetal face relegation from the FTSE 100 after their recent performances were hit by political events. The share price of Travis Perkins has dropped 29 per cent since the UK voted to leave the EU in June, as economic uncertainty has sparked concerns among some investors about the […]

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Banks

RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

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Categorized | Equities

Torrid quarter ends in broad stock rebound


Posted on September 30, 2015

A large computerised display of the British FTSE 100 index is pictured in London, on September 8, 2008. The London Stock Exchange said Monday it had been forced to halt trade after experiencing connectivity problems with some clients. "There was a connectivity issue this morning which affected some clients so we have suspended connectivity in order to bring it back in a controlled fashion," an LSE spokeswoman told AFP. At its suspension the FTSE 100 showed a gain of 3.81 percent at 5,440.20 points. AFP PHOTO/Shaun Curry (Photo credit should read SHAUN CURRY/AFP/Getty Images)©AFP

An outbreak of bargain hunting at the end of a torrid quarter for stocks lifted nearly every FTSE 100 constituent on Wednesday, with Glencore among the best gainers.

Shares in the Swiss-based miner and commodities trader — which have marched lower in lockstep with falling metals and oil prices — bounced back 7 per cent to 85.8p. Only J Sainsbury made a stronger gain, after the supermarket group lifted its profit guidance.

    Wednesday’s recovery cut into Glencore’s decline over September, which reached 45 per cent by the end of the previous session. Over the third quarter, the shares are down 69 per cent. The company also took the unusual step of issuing a statement saying it remains “operationally and financially robust”, which followed a flurry of doom-laden analyst commentary on the company.

    Wider mining stocks made more modest gains for the day, also limiting longer-term losses. Antofagasta was 1 per cent higher at 496p, while BHP Billiton regained 0.9 per cent to 987½p. Anglo American was up 0.8 per cent at 547.6p.

    Overall, the main London stock index rose 1.8 per cent to 6,014.39, a gain of 105 points. But it came after a decline of 10.6 per cent from the start of July to the close of the previous session, leaving it on course to record its steepest quarterly decline since 2011. Over the calendar year, the FTSE 100 is down 10 per cent.

    The international FTSE Eurofirst 300 was up 2.2 per cent at 1,365.37, after a loss of 11.5 per cent over the third quarter to Tuesday’s close.

    There were warnings that Wednesday’s respite could prove fleeting, with investors’ attention starting to turn back towards the macroeconomic picture and closely watched US jobs numbers due out at the end of the week.

    “The commodity glut and decelerating emerging markets is not going to go away any time soon,” said Mike McCudden, head of derivatives at Interactive Investor.

    “Sentiment can change at the flick of a switch these days. Equities should start to cool down as traders begin to get nervous ahead of key jobs data from the US on Friday.

    Michael Hewson, chief market analyst at CMC Markets, said: “The ‘buy the dip’ strategy, has by and large, worked extremely well since 2009. When commodity prices bottomed in 2008, the combined effects of a Chinese stimulus program and US quantitative easing saw a swift about turn in prices in a matter of months.

    “But it’s hard to see something similar happening now with oil and mining companies taking a scalpel to capex in large chunks [and] investors are having to contend with a US Federal Reserve looking to tighten policy and not loosen it.”