Investment market update
UK stocks are expected to open flat this morning after the index returned back above 6,000.
UK stocks advanced for a fourth day, rising higher with gains in oil and mining shares. Glencore Plc climbed 18% after saying it signed new loan commitments to replace an existing $8.45 billion revolving credit facility. Anglo American Plc gained 17%. Antofagasta Plc and BHP Billiton Plc added at least 7%.
US stocks rallied, led by rising commodity prices that helped metal and oil producers’ stocks climb. Both the S&P 500 and Dow Jones gained 1.6% and NASDAQ rose 2.2%.
Asian stocks climbed led by Japan, despite figures that showed exports had reduced for a fourth straight month. Rising oil prices were supporting investor sentiment together with better-than-forecast economic data from the US.
Vodafone is looking to raise £2.9bn by issuing mandatory convertible bonds. The bonds will be issued in two tranches, one with a maturity of 18 months, and another with a maturity of three years. The coupon for the former is expected to be between 1.2-1.5% a year, and 1.7-2.0% a year for the latter.
Chinese consumer prices rose in January, an encouraging sign for the world’s second largest economy in a month characterised by turbulence in its financial markets. The consumer price index rose by 1.8% year-on-year in January, from 1.6% in December 2015. However, CPI continues to trail Beijing’s target of “around 3%“.
David Cameron’s bid to win backing for his EU reforms has reached ‘crunch time’, a UK government official says. The Prime Minister heads for a Brussels summit later hoping to agree a deal on changes that will pave the way for the UK’s in/out referendum. It follows months of negotiations between officials, with the PM visiting 20 member states to make his case.