market relief

The FTSE 100 has rallied today as there is a broad push higher in financial, energy and mining stocks. 

The slight weakness in the British pound has helped the main equity index too. Eurozone stocks started the morning on a broadly positive note but most markets are handing back earlier gains. Sentiment is still mixed as concerns about global growth still linger.

Debenhamsreported that it is in advanced talks about borrowing £150 million, which would be vital for its restructuring plans, and its ability to stay afloat. Should the company manage to secure the £150 million, it would pay down £40 million of lending it secured last month. The struggling retail is trying fend off a takeover from Mike Ashley, and securing this financing would be essential to seeing off Mr Ashley’s advances. The stock is still in positive territory today, but it is off the highs of the session.

Kier Group shares are in the red this morning after the company upped its debt estimate. The firm previously announced that its net debt position was £130 million, and now they have revised it to over £180 million. The company aims to lower its debt position and it hopes for a net cash position by the end of June. Putting the debt issue to one side, Kier said they anticipate to meet their underlying 2019 target. In late November 2018, the company launched a rights issue because it was concerned about banks unwillingness to lend to the construction sector. The latest debt fiasco has rocked investment sentiment further. The stock has been in decline since September, and a break below 400p, might bring the 335p area into play.  

Cairn Energy confirmed that it expects further delays to the arbitration result. The energy firm is claiming $1.4 billion against the Indian authorities in relation to ‘retrospective taxation actions’ and it is confident in its claim, but it now feels the process will be delayed. The stock gapped lower, and while its remains below the 200-day moving average at 208p, its outlook should remain negative.

Boeing shares are likely to be in focus today in the wake of the terrible news that a Boeing 737 plane crashed over the weekend, and there were no survivors from the Ethiopian airlines flight. The tragedy was the second Boeing 737 crash in five months, and the news prompted China to ground all flights of Boeings 737 flights. The move by China might be replicated by other countries.    

We are expecting the Dow Jones to open 115 points lower at 25,335 and we are calling the S&P 500 up 7 points at 2,750.   

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