Petropavlovsk releases production forecasts, 3i Infrastructure says portfolio 'resilient'
London open
The FTSE 100 is expected to open 24 points lower on Wednesday, having closed up 0.53% on Tuesday at 6,772.12.
Stocks to watch
Russian gold miner Petropavlovsk said it expected total 2021 gold production of 430 – 470,000 ounces (koz) made up of its own gold production of 370 – 390koz and third-party gold production of 60 - 80koz. It also said capital expenditure would rise to $140m, including exploration spend of $20m, from $118m in 2020.
3i Infrastructure reported that its portfolio remained “resilient” despite the continuing effects of the Covid-19 pandemic, saying it was performing in line with its medium-term return target. It said total income and non-income cash was £69m in the second half, in line with its expectations and down from £82m at the same time last year. The firm said it was on track to deliver its dividend target of 9.8p per share, a year-on-year increase of 6.5%.
Newspaper round-up
When Boris Johnson announced the first stay-at-home order, effectively shutting down whole sections of the economy, it was hoped the tide could be turned within 12 weeks. As many months later, lockdown measures are being relaxed for a third time and Britain still faces a lengthy road to recovery from the worst recession for 300 years. As restrictions ease, the chief economist at the Bank of England, Andy Haldane, warned that despite the reopening of the economy, the risk of a “jobs equivalent of long Covid” remains for workers across the country. - Guardian
The government “talks a good game” on supporting steelmakers but should set targets for the use of British steel in big infrastructure projects, the industry trade body has said. As the financial turmoil threatening 5,000 jobs at Liberty Steel reignited concern about the sector, UK Steel said ministers had failed to come up with practical action to arrest the decline of an industry that has lurched from crisis to crisis in recent years. - Guardian
Senior managers at outsourcer Serco carried out a "fraud on the taxpayer" by hiding the scale of its profits so that civil servants would not cut payments from the public purse, a court heard. The FTSE 250 firm made a £27m profit from keeping track of criminals and defendants for the Ministry of Justice between 2010 and 2012, but claimed it had only made £15m, prosecutors allege. - Telegraph
Regulators are questioning banks’ multibillion-dollar fire sale of shares in the past few days which were linked to the stricken investment firm Archegos Capital Management. America’s Securities and Exchange Commission and the Financial Conduct Authority in the UK are examining the actions of several banks over the way they unloaded large blocks of shares after US-based Archegos failed to meet margin calls. - The Times
US close
Wall Street stocks closed lower on Tuesday after the Dow Jones saw out the previous session at a fresh all-time high as elevated bond yields weighed on sentiment yet again.
At the close, the Dow Jones Industrial Average was down 0.31% at 33,066.96, while the S&P 500 was 0.32% weaker at 3,958.55 and the Nasdaq Composite was 0.11% softer at 13,045.39.
The Dow Jones closed 104.41 points lower, reversing gains recorded in the previous session.
Rising bond yields were in focus again on Tuesday, with the yield on the benchmark 10-year Treasury note rising to 1.72%, at the top end of its recent range, stoking fears that the recent advance in yields would lead money managers to make significant adjustments in their portfolios, creating heightened volatility during the Easter holiday-shortened week.
As a result of the elevated bond yields, the US dollar hit its highest point since November, while gold slumped to the bottom of its recent range and tested $1,700. Rising bond yields also saw traders exit their positions in high-flying tech shares, sending stock in several of the industry's biggest names into the red on Tuesday.