The FTSE 100 is down 1 per cent in early trading. Among the companies with reports and trading updates today are Shell, Majestic and Rothesay Life. Read the Friday 5 April Business Live blog below.
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Market open: FTSE 100 down 1%; FTSE 250 off 0.7%
London-listed stocks haev slumped at the open amid heightened Middle East tensions, while investors braced for the release of key US and UK economic data.
Oil and gas stocks are the only outliers across the board, rising by 0.3 [er cent as crude prices extend gains over escalating geopolitical tensions in he Middle East and tightening supply concerns.
Later in the day, investors will parse UK business activity data for March and the US non-farm payrolls report for fresh insights into the trajectory of interest rates.
Among individual stocks, Experian is down 1.6 per cent after the credit data group agreed to acquire peer illion for up to $542.10million.
Footsie opens sharply lower
Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown:
‘The FTSE 100 has gone backwards on its last trading day of the week, as investors digest PMI data as well as a downbeat tone over in the US.
‘The major indices all shed between 1.2-1.4% on Thursday, with broad based declines suggesting the malaise is a widespread mood problem, rather than a sector specific issue. Investors are now looking ahead to today’s US job data which will highlight the strength of the labour market.
‘The narrative around the potential for interest rate cuts has been slightly contradictory this week, so there’s a lot resting on this data to help steady the ship. A looser labour market could help back the argument that the economy is returning to more stable footing.’
Majestic rescues Vagabond bars
Majestic has completed a rescue deal to buy wine bar chain Vagabond from administration.
The UK’s largest specialist wine retailer confirmed talks over a potential move last month after Vagabond Wines went into insolvency.
On Friday, Majestic confirmed it has completed the acquisition, which will secure the future of nine Vagabond venues and 171 workers.
The bar firm’s ‘underperforming’ site in Canary Wharf and its bars at Gatwick Airport are not included in the deal.
John Colley, chief executive of Majestic, said: ‘We are delighted to have secured this partnership with Vagabond Wines and are looking forward to working with the team to share our collective passion, expertise and love of wine.
‘The completion of this deal marks the start of a long-term partnership and we are committed to investing in the Vagabond business, with the potential to open new wine bars across the UK when the right opportunities arise.’
Hundreds of young people out of pocket after trades training provider Options Skills goes under
Shell expects weaker gas performance
Shell’s first-quarter trading results for its integrated gas division are expected to be significantly lower than the fourth quarter of last year, the energy giant has told shareholders.
The oil company, however, expects performance at its chemicals and products business to be significantly higher than the last three months of 2023, with losses at the unit also expected to be lower.
Shell, which reported a $28billion profit for 2023, expects to take an exploration write-off of about $600million, mainly in Albania in the first quarter.
