FTSE 100 pares gains on disappointing Chicago PMI, New York ISM and ADP employment updates

Overview: the FTSE 100 pared early gains to return to the opening level on disappointing US data that also sent US stocks down in early trade.
The Chicago PMI (Purchasing Managers Index) update showed a decline from 62.6 to 58.8 in March. This followed ADP’s employment report, which revealed a decline in private employment instead of an expected increase. Finally, the New York ISM index declined 78.1 to 60.6.
Markets got some support from US Commerce Department’s factory orders data, which reported an increase of 0.6% in March to signal a six straight month of gains.
Broadcaster BSkyB (LSE: BSY), which today pledged to challenge regulator Ofcom’s order to cut the price it charges other broadcasters for access to Sky Sports, emerged atop the leaderboard with a gain of nearly 3%. Gold miner Randgold Resources (LSE: RRS) followed with a 2% climb, while bank Lloyds (LSE: LLOY) and food manufacturer Unilever (LSE: ULVR) added 1.5%.
Commercial property company Segro (LSE: SGRO) was at the bottom of the index with a 3.4% loss. London Stock Exchange (LSE: LSE) shed 2%, followed by interdealer broker ICAP (LSE: IAP) and water company United Utilities (LSE: UU), which declined 1.5%. Retailer Kingfisher (LSE: KGF), credit information group Experian (LSE: EXPN) and defence and aerospace systems manufacturer BAE Systems (LSE: BA) shed slightly more than 1%.
US stocks opened lower. The Dow Jones Industrial Average dropped 0.35%, the broader S&P 500 index was down 0.2% and the technology heavy NASDAQ composite slid 0.1%.
Commodities
Oil prices rose as while US crude stockpiles continued growing, the increase reported by the American Petroleum Institute (API) yesterday turned out to be smaller than expected.
According to yesterday’s report from the API, oil stockpiles added just 421,000 barrels last week, while distillates, which include diesel and heating oil, fell by 1 million barrels and gasoline stocks shed 946,000 barrels.
A more closely watched report from Energy Information Administration (EIA) is due out today.
On Monday, OPEC (Organisation of Petroleum Exporting Countries) said that oil prices could stay within the current range of US$70-80/barrel for the next ten years.
Brent Crude for May delivery improved to US$82.32/barrel in London, while US light, sweet crude advanced to US$83.51/barrel on the New York Mercantile Exchange (NYMEX).
Blue chip oil and gas producers didn’t show much movement today. Supermajors BP (LSE: BP) and Shell (LSE: RDSB) posted small losses, while Tullow Oil (LSE: TLW) was flat and other FTSE 100 constituents BG Group (LSE: BG) and Cairn Energy (LSE: CNE) added less than 1%.
Oil and gas engineering firms headed in different directions as while Amec (LSE: AMEC) added nearly 1%, Petrofac (LSE: PFC) posted a small loss.
Most midcaps were in decline. Melrose Resources (LSE: MRS) and Dana Petroleum (LSE: DNX) were at the bottom of the pile, shedding 2% and 1.5% respectively. JKX Oil & Gas (LSE: JKX), Premier Oil (LSE: PMO) and Soco International (LSE: SIA) posted small losses. Heritage Oil (LSE: HOIL) and Salamander Energy (LSE: SMDR) were flat.
Wood Group (LSE: WG) lost nearly 1%, while another services company Wellstream Holdings (LSE: WSM) added 1%.
Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO), Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) and North Sea explorers Xcite Energy (AIM: XEL) led the juniors with gains of 9%, 6.5% and 4.5% respectively.
Gold, silver and platinum climb on weaker US dollar
Gold extended gains as the euro continued its rise against the US dollar on increased optimism about the European debt crisis following last week’s EU agreement on an aid package for debt laden Greece. Last Friday, leaders of euro zone countries agreed to put together a bailout package jointly with the IMF (International Monetary Fund) if the country fails to raise enough money in the market to avoid a default. The agreement provided immediate relief for Europe’s single currency, which has been pressured by concerns over Greece’s fiscal problems for weeks.
The US dollar was further weakened by today’s ADP employment report, which showed a loss of 23,000 jobs in the private sector, while an increase was expected.
Gold is seen as a riskier alternative to the safe-haven US dollar and usually moves inversely to the American currency.
More data is expected today with investors eyeing the Chicago PMI (Purchasing Managers Index), New York ISM index and US factory orders for February.
Spot gold reached US$1,115/oz today. Other precious metals followed with silver and platinum rising to US$17.55/oz and US$1,643/oz respectively.
Major mining stocks were mixed. Gold producer Randgold Resources (LSE: RRS) climbed 1.6% to take the lead in the sector in the FTSE 100, while silver miner Fresnillo (LSE: FRES) followed with a 1% advance. Platinum producer Lonmin (LSE: LMI) made little headway.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) tacked on less than 1%.
Gold miner Petropavlovsk (LSE: POG) was the leading performer among the midcaps with a 1.1% climb. Aquarius Platinum (LSE: AQP) posted a marginal gain, while silver producer Hochschild Mining (LSE: HOC) declined 2.2%.
Russia focused Ovoca Gold (LSE: OVG) led the small caps with a 6.5% gain after releasing an operational update. South Africa and Botswana operating diamond miner Firestone Diamonds (AIM: FDI) slipped 16% after releasing its interim results, while Africa operating gold miner GMA Resources (AIM: GMA) lost 8.7%. Brazil focused gold miner Horizonte Minerals (AIM: HZM) and Uzbekistan focused gold miner Oxus Gold (AIM: OXS) lost more than 5%.
Nickel rallies, copper and zinc gain to lift miners
Base metals were on the rise today. Copper and zinc reached US$3.54/lb and US$1.07/lb, while nickel rallied to US$11.30/lb.
Anglo American (LSE: AAL) and Xstrata (LSE: XTA) led the mining stocks, advancing 1.2%. Antofagasta (LSE: ANTO) and Vedanta Resources (LSE: VED) tacked on less than 1%. Eurasian Natural Resources (LSE: ENRC) and Rio Tinto (LSE: RIO) were flat.
Kazakhmys (LSE: KAZ) headed into the opposite direction, sliding 1.4%, while BHP Billiton (LSE: BLT) posted a small loss.
Russia focused copper and nickel miner Amur Minerals (AIM: AMC) led the juniors, rallying 17%. Philippines operating nickel miner Rusina Mining (ASX: RML; AIM: RMLA) also did well, gaining 6.5%.
Tunisia focused metal miner Maghreb Minerals (AIM: MMS) was in decline, slipping 18%. Zinc mining and recycling specialist ZincOX (AIM: ZOX) shed 6.5% after announcing the requisitioning of a general meeting to sack its current directors, adding that it had received written confirmation from more than 50% of its shareholders that they would vote against the proposals. Cement operator Prosperity Mineral Holdings (AIM: PMHL) lost nearly 6%.
Banks, insurance, private equity
Part-nationalised bank Lloyds (LSE: LLOY) and Standard Chartered (LSE: STAN) led the banking sector with gains of 1.3%. Royal Bank of Scotland (LSE: RBS) added nearly 1%, while Barclays (LSE: BARC) posted a small gain. HSBC (LSE: HSBA) went against the tide, shedding less than 1%.
Standard Life (LSE: SL) was at the bottom of the insurance sector with a 1.1% decline. Aviva (LSE: AV), Legal & General (LSE: LGEN) and RSA Insurance Group (LSE: RSA) posted small losses. Admiral Group (LSE: ADM) and Old Mutual (LSE: OML) were flat. Prudential (LSE: PRU) was in the lead with a small gain.
Private equity group 3i (LSE: III) was flat.
Large and Mid Cap News
London and New York pharmaceutical giant GlaxoSmithKline (NYSE:GSK, LSE:GSK) has been continually seeking new partnerships while also regularly restricting its own operations in an attempt to maximise its drug development pipeline while keeping research and development costs in check. This morning Glaxo announced a new strategic alliance with US listed Isis Pharmaceuticals (NASDAQ:ISIS) to jointly develop new therapies using Isis’ antisense drug delivery platform. The alliance will focus on potential candidates for rare and serious disease, including conditions that cause blindness and infectious diseases.
Small Cap News
Engyco PLC intends to become the first listed European solar power utility company, and plans to raise up to €1bn via a listing on the London Stock Exchange. The company intends to acquire producing solar assets in Spain, where it already has agreements from vendors for €640 million worth of solar assets with a capacity of 86MW.
European Nickel (AIM, PLUS: ENK) is certainly juggling quite a few nickel balls at the moment. The company is progressing towards a merger with fellow nickel laterite specialist, Rusina Mining, and this morning confirmed that it had extended financing discussions for its key Çaldağ project which contains a JORC proven reserve of 33.2Mt at 1.13% Ni, for a nickel content of 375,000 tonnes.
Norseman Gold PLC (AIM, ASX: NGL) said it was notified that non-executive director David Steinepreis last week bought 24,100 shares in the company on the market for a total of A$16,972, and he now holds 4,337,957 shares in Norseman. This follows Steinepreis’s purchase of 56,750 shares, also last week , which the group announced two days ago.
The board of ZincOx Resources (AIM: ZOX) has found reassurance among its major shareholders following a recent general meeting requisition to oust six directors by two minor shareholders with a combined 5% stake in the company. Today, Zincox said that it has received written confirmations representing more than 50% of the company’s issued shares.
Oxus Gold PLC (AIM: OXS) said chief operating officer John Donald will be retiring from the Oxus board with effect from 31 March 2010. He has agreed to consult for Oxus until 31 December 2010. The COO position will remain vacant pending completion of the CITIC Consortium funding it announced on 7 January 2010.
In the six months ended 31 December 2009, North River Resources (AIM: NRRP) has strengthened its position as emerging southern Africa focused resource company. Most notably with the acquisition of a highly prospective portfolio of Namibian base metal and gold assets from Kalahari Minerals (AIM: KAH) - which subsequently became the company’s largest shareholder with a 44.9% stake in North River.
For the six-months ended 31 December 2009, Regency Mines (AIM: RGM) reported a pretax profit of £388,164 compared to a £1.4m loss in the comparative period in 2008, and said it is loolking ahead with confidence.
Pan African Resources (AIM: PAF, JSE: PAN) has agreed to acquire a 25% stake in RK1 Consortium, which operates a PGM (platinum group metals) concentrator plant from Ivanhoe Nickel & Platinum Limited for ZAR 53 million, or £4.8 million.
In its full-year results report, the IPSA Group (AIM: IPSA) said that whilst it has been a difficult year, the recent loan-note issue provides working capital to enable it to progress the coal-fired developments in the Eastern Cape, in addition to securing the sale of its surplus turbines and the power purchase agreement (PPA) for the plant in Newcastle, South Africa.
Ovoca Gold (AIM: OVG) has contracted a drilling company to start the planned diamond drill programme at the Rassoshinskaya property in April, and announced the appointments of a new chief financial officer, a non-exceutive director  and a corporate secretary.

Synchronica (AIM: SYNC) has agreed the acquisition of IMPS instant messaging business Colibria AS in a structured deal totalling €750,000 in cash and approximately 128 million shares. Additionally, the company announced that it will conduct a placing and an equity-swap placing, raising up to £4.8 million.

Fusion IP (AIM: FIP), the university commercialisation company which turns university research into business, reported its first interim profit of £0.9 million as revenues were up from £0.1 million to £0.8 million after the company secured its first major IP licensing deal from the agreement with Sheffild University during the first half.
In its results statement for the six months ended 31 December 2009, Red Rock Resources (AIM: RRR) said the period saw a recovery from the depressed conditions early in 2009, and the gradual maturing of the company's strategies. The company reported an interim pretax profit of £3.2 million compared with a loss of £1.9 in the comparative period of 2008.
In its results statement for the six months ended 31 December 2009, Red Rock Resources (AIM: RRR) said the period saw a recovery from the depressed conditions early in 2009, and the gradual maturing of the company's strategies. The company reported an interim pretax profit of £3.2 million compared with a loss of £1.9 in the comparative period of 2008.
In its interim report for the six-months to 31 December 2009, Firestone Diamonds (AIM: FDI) said that the period saw good progress in the development of its project portfolio in Botswana.  The company’s activities were primarily focused on the BK11 kimberlite in the Orapa area, from which producttion is expected to start on schedule in Q2 2010.
Caledon Resources (AIM: CND, ASX: CCD) released its annual financial report today, reporting lower revenues that resulted in a full year loss due to lower prices and unfavourable currency movements, but projecting a rebound in 2010 after growing production and cutting sales costs during 2009.

Solomon Gold (AIM: SOLG) said one of the company’s non-executive directors, John Bovard,  has taken a stake in the company. The director bought 300,000 Solomon Gold shares at a price of 7.5p per share, on 30th March 2010.
Junior gold outfit Kryso Resources (AIM:KYS) has had a bit of a rethink about the 2.8 million ounce Pakrut Gold Project in Tajikistan.  Pakrut is approximately 112 km north-east of the capital city Dushanbe, and sits in the prolific Tien Shan gold belt which runs through Uzbekistan, Tajikistan, Kyrgyzstan and China.

Amur Minerals (AIM: AMC) said it has now completed the transfer of fuel and materials via the ice road to its Kun-Manie nickel deposit to progress the 2010 field season at the Russian project.
Recent updates from London Mining (AIM: LOND) reflect a company in transition, as the company continues to delineate big iron ore resources at its key projects in Sierra Leone, Saudi Arabia and Greenland.

Human tissue and human tissue based research services supplier Asterand (AIM: ATD) said chief executive Martyn Coombs has increased his shareholding in the company, buying 60,000 shares at 15.9p per share. Coombs now holds approximately 400,000 shares, representing 0.35% of the company’s issued share capital.

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