After the chaos of the first Presidential debate in the US earlier this week the race has been thrown into further confusion today with news that President Trump and first lady Melania have tested positive for Covid-19, sending shockwaves through equity markets. European markets opened the day down with the FTSE100 down 0.6 per cent at 9am and the other main European bourses down in tandem.
With the prospect of volatility in equity markets already running high the latest twist is already causing a sell off in US equity futures which are down 1 per cent. Until there is more clarity over Mr Trump’s diagnosis and the severity of his illness there is little likelihood of volatility easing. The President was already facing a battle to win a second term with various factors stacking up against his candidacy, not least of all the effect the coronavirus crisis has had on the US economy. The lack of agreement over a fiscal stimulus package continues to dog sentiment in the US with figures yesterday showing that personal income in the US dropped by 2.7 per cent on average in August as the previous temporary package of economic support lapsed. For more on the companies bankrolling the US presidential election read our news feature this week.
Mixed news from the UK where the are some tentative signs that local lockdowns may be slowing the progress of the second wave of Covid 19 but huge uncertainty remains around the prospect of the UK and EU agreeing a trade deal ahead of the end of the Brexit transition period. Meanwhile, across the channel France and Spain are both in the grip of a second wave of coronavirus infections with Madrid now in a tighter lockdown and Paris believed to be in danger of further restrictions too in a bid to arrest alarmingly high infection rates.
In the world of stocks, a further weakening of the oil price has weighed on the share prices of super majors Royal Dutch Shell and BP, both of whom are battling some scepticism over their recently announced plans to transition to a carbon-free future.
UK Company Announcements
| Centamin (CEY) | Guidance for 2020 production has been cut by at least 13 per cent following "movement" in a high-grade area of the Sukari pit. The miner's share price is down 19 per cent on the news. |
| Ryanair (RYA) | The airline carried 5.1m passengers in September, representing a decline of almost two-thirds on last year, as tightening coronavirus travel restrictions in Europe continue to depress air travel. Ryanair operated around half of its normal September schedule. |
| James Fisher (FSJ) | The group’s specialist technical business has been awarded a five-year, multi-million pound contract by the Royal Navy to maintain its life-support diving equipment. The new agreement reflects the strength of its longstanding relationship with the Royal Navy, which stretches back over 20 years. |
| Wincanton (WIN) | The group’s digital and e-fulfilment business is continuing to benefit from increased demand for online retail. It is guiding to a £60m net cash position for the year ending 30 September 2020, versus £15m of net debt a year earlier. Facing a £105m pension deficit, Wincanton has agreed with its pensions trustee to make annual payments of £18m into its scheme from 2021 to 2024 and then £21m per year through to 2027. |
**Interested in individual company trading opportunities? If so, Michael Taylor's weekly columns are a must. This week he has examined the potential to make gains from consolidation activity in the gambling industry.**
