European, US stocks hover near record highs on Covid recovery hopes – business live
Rolling coverage of the latest economic and financial news as Covid recovery hopes lift stocks
- Jamie Dimon: Goldilocks moment' possible for US economy
- JP Morgan boss warns more EU services could move from London
- London stocks gain but Wall Street mixed
- HSBC to move 1,200 UK staff to permanent home working
3.35pm BST
Wall Street stock market indices have now edged up in early trading. With an hour of trading left on Wednesday, the FTSE 100 is still up by 1% at about 6,889 points - on a day that the benchmark index hit pre-pandemic lockdown levels.
Here are some of the top business stories from today:
Related: Under-30s in UK should be offered alternative Covid vaccine to AstraZeneca jab, says regulator
3.11pm BST
Dimon also had some uncomfortable words for the UK government: the unfolding Brexit process cannot possibly be a positive for the United Kingdom's GDP", he said.
The JP Morgan boss's words on Brexit particularly matter because of the US bank's large presence in London - both its investment bank and its asset management services.
We may reach a tipping point many years out when it may make sense to move all functions that service Europe out of the United Kingdom and into continental Europe. But London still has the opportunity to adapt and reinvent itself, particularly as the digital landscape continues to revolutionize financial services.
It is clear that, over time, European politicians and regulators will make many understandable demands to move functions into European jurisdictions.
3.04pm BST
The flat opening on Wall Street in part reflects the lack of a strong narrative driving global markets today, while traders are also waiting for minutes from the Federal Reserve that might give more hints on the path of US interest rates.
It is possible that we will have a Goldilocks moment - fast and sustained growth, inflation that moves up gently (but not too much) and interest rates that rise (but not too much). A booming economy makes managing US debt much easier and makes it much easier for the Fed to reverse QE and begin raising rates - because doing so may cause a little market turmoil, but it will not stop a roaring economy.
And, of course, being who we are, while we are going to hope for the Goldilocks scenario - and we think there is a chance for that to happen - we will anticipate and be prepared for two other negative scenarios: 1) the new Covid-19 variants may be more virulent and resistant to the vaccine, which could obviously reverse a booming economy, damage the equity markets and reduce interest rates as there is a rush to safety, and 2) the increase in inflation may not be temporary and may not be slow, forcing the Fed to raise rates sooner and faster than people expect.
2.40pm BST
It's a mixed opening for stocks on Wall Street at the opening bell, despite the relatively positive mood in London.
Here are the opening snaps:
2.31pm BST
The International Monetary Fund has suggested that companies that made the biggest profits during the coronavirus pandemic should pay higher taxes.
In an interview with the Financial Times (), Vitor Gaspar, the IMF's head of fiscal affairs, said large economies should increase their top rates of income tax temporarily so that companies who made big profits in 2020 should pay more. Gaspar said:
The symbolic impact of this type of contribution is sometimes very important... typically, they occur in a very exceptional circumstances where social solidarity plays a particularly strong role.
Vaccination will, thus, more than pay for itself, providing excellent value for public money invested in ramping up global vaccine production and distribution.
1.37pm BST
Some unsurprising figures on air traffic from February, but there are signs of hope as restrictions start to ease.
1.16pm BST
BREAKING: HSBC is moving more than 1,200 UK staff onto permanent home working contracts, according to Reuters, which is citing the Unite union.
The news comes weeks after HSBC confirmed plans to slash its office space around the world by nearly 40% as part of sweeping cost cutting designed to capitalise on new part-office-part-homeworking arrangements after the pandemic.
12.49pm BST
The pub chain Marston's is among the raft of pubs and restaurants gearing up for outdoor service as Covid restrictions are ease further in England on 12 April.
The company confirmed this morning that it expects to reopen around 70% (around 700) of its managed and franchised pubs in England with outdoor spaces on or around 12 April and,
12.30pm BST
Oil prices have been see-sawing throughout the trading session, but seem to have steadied.
Brent crude prices are now trading higher by around 0.8% at $63.28 per barrel, while WTI is up 0.7% at $59.76.
The whipsaw effect remains in the full-blow as liquidity is still low across all markets post-Easter, which may be exaggerating moves and keeping active oil investors sidelined...I still feel oil traders may find comfort-buying dips [in prices] knowing OPEC+ will closely monitor macro conditions via monthly meetings on the flip side of the coin. There should be little doubt the group will step in to put a floor on the oil price, [if] macro conditions deteriorate.
12.04pm BST
Royal Dutch Shell expects its oil production business to turn a profit this quarter for the first time since the outbreak of Covid-19 pandemic, our energy correspondent Jillian Ambrose writes.
11.24am BST
Returning to protests at Barclays' HQ in Canary Wharf, Reuters is reporting that 7 people have been arrested after activists broke windows as part of a protest against the financial sector's role in the climate crisis.
Extinction Rebellion are entitled to their view on capitalism and climate change, but we would ask that in expressing that view they stop short of behaviour which involves criminal damage to our facilities and puts people's safety at risk.
We have made a commitment to align our entire financing portfolio to the goals of the Paris Agreement, with specific targets and transparent reporting, on the way to achieving our ambition to be a net zero bank by 2050, and help accelerate the transition to a low-carbon economy.
11.14am BST
Lutz Schuler, the chief executive of Virgin Media, has been appointed to head up the new 31bn company being created by the merger of the cable TV company with O2, the UK's largest mobile operator, our media business correspondent Mark Sweney writes.
11.00am BST
US futures are pointing to a lacklustre start on Wall Street, with futures for the S&P 500, Dow and Nasdaq all flat, following a lower close on Tuesday.
Bit Neil Wilson, chief market analyst, for Markets.com, said investors will be eyeing the US Fed's Federal Open Market Committee (FOMC) minutes from their meeting on 17 March.
FOMC minutes tonight will one to watch. The minutes could help explain how the Fed plans to communicate future policy decisions and shed light on how some policymakers could change their view on monetary policy if inflation and growth does accelerate as expected this summer.
Whilst Jay Powell has kept market speculation at bay, the minutes could allow participants to focus on when the Fed will tighten.
10.36am BST
Saga, the travel and insurance company for the over-50s, has revealed it made a 61m loss before tax last year after the Covid-19 pandemic prevented it from operating its tours and cruises and forced it to refund customers, Joanna Partridge reports.
Looking ahead, while we are mindful of economic headwinds and the potential ongoing impacts of Covid 19, it is clear that there is significant pent-up demand among our customer base, the vast majority of whom have now been vaccinated and are ready to enjoy post-lockdown freedom.
Related: Saga hit by 61m loss as Covid takes toll on tours and cruises
9.56am BST
UK stocks are surging ahead, supported further by the composite PMI reading showing the first expansion in three months.
Now the FTSE 100 us up more than 0.8% to around 6880 points.
9.36am BST
DATA FLASH: UK business activity for March has been downgraded slightly, compared to flash estimates, but the UK has still logged its first PMI expansion in three months.
The IHS Markit/CIPS composite PMI - again, the combined reading of services and manufacturing business activity - came in at 56.4 for March, compared to 49.6 in February.
Encouraging news on #UK #economy as purchasing managers reported #services activity improved markedly in March to return to clear growth despite continuing #lockdown restrictions. Services #PMI at 7-month high of 56.3 (but revised down from flash 56.8) in March from 49.5 in Feb
9.27am BST
Time for a PMI round-up.
The final reading of the Eurozone's composite PMI for March - which combines both manufacturing and service sector activity - showed a surprise increase to 53.2 from 48.8, higher than initial estimates for 52.5.
Private sector activity in the eurozone expanded in March, according to the latest PMI data. The upturn was driven by record growth in the manufacturing sector which more than offset a further decline at services firms. Read more: https://t.co/9rOC1SYE6B pic.twitter.com/K1UNTSgrhH
The economy has weathered recent lockdowns far better than many had expected, thanks to resurgent manufacturing growth and signs that social distancing and mobility restrictions are having far less of an impact on service sector businesses than seen this time last year.
Spain Services PMI (Mar) rises to 48.1, exp: 45.8
Italy Services PMI (Mar) comes in at 48.6, exp: 49
France Services PMI (Mar) comes in at 48.2, exp: 47.8
Germany Services PMI (Mar) comes in at 51.5, exp: 50.8
8.59am BST
Deliveroo shares have opened slightly higher on the first day of unconditional trading, as retail investors were allowed to take part for the first time.
8.44am BST
And another!
The FTSE 250, which returned to pre-pandemic levels on Tuesday, has surpassed the record closing high of 22,108 reached in January 2020.
8.32am BST
Germany's DAX has hit a fresh record high of 15,235 points at the start of trading, and the blue chip index is continuing to climb:
8.07am BST
It's a lacklustre start across Europe, but stocks are broadly edging higher:
8.05am BST
BREAKING: Climate activists have been arrested in London after windows were broken at the Barclays headquarters in Canary Wharf, according to Reuters.
The protests have been launched by activists from Extinction Rebellion, aiming to highlight the role of the financial sector in fuelling the climate crisis.
Climate change protesters break windows at Barclays London HQ https://t.co/Y6513tSanR pic.twitter.com/y0cW1Qopj1
7.59am BST
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
European indexes including Germany's DAX and the FTSE 250 are hovering near record highs, as investors reacted positively to upgraded global growth forecasts by the IMF, which said yesterday that a stronger than expected recovery from the Covid crisis was on the horizon.
European and US stock futures are trading lower, but they are still hovering near their all-time high as investors remain optimistic about stimulus-supported recovery.
One particular takeaway from Joe Biden's speech yesterday was that he has full confidence in his team.
European Opening Calls:#FTSE 6855 +0.47%#DAX 15217 +0.03%#CAC 6137 +0.10%#AEX 711 -0.30%#MIB 24790 +0.12%#IBEX 8651 +0.19%#OMX 2227 -0.16%#STOXX 3969 -0.03%#IGOpeningCall
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