Fresnillo posts record silver production, Sage sales improve slightly below target
London open
The FTSE 100 is expected to open seven points lower on Wednesday, having closed up 0.21% at 7,731.83 on Tuesday,
Stocks to watch
Mexico-based precious metals mining company Fresnillo reported record annual silver production in its fourth quarter production update on Wednesday, totalling 58.7 moz including Silverstream. The FTSE 100 firm said that was an increase of 16.6% over 2016, in line with guidance and primarily as a result of the first complete year of San Julián phase I operating at full capacity, and the start-up of operations at San Julián phase II.
Sage, the accounting software developer, increased sales slightly below target in the first three months of its financial year as it invested "heavily" in sales training to allow sales to accelerate in coming months. Organic revenue grew 6.3% in the three months ended 31 December, but the FTSE 100-listed group remained confident of hitting its 8% full year target.
Chile focused miner Antofagasta on Wednesday said full year copper production fell 0.7% to 704,300 tonnes, in line with guidance. The fall was due to the impact of expected lower grades at Los Pelambres and Centinela, which was offset by Encuentro Oxides coming into production in October and following the completion of the ramp-up at Antucoya in 2016.
Newspaper round-up
Apple shipped fewer iPhone X handsets than expected last year, according to estimates, adding to speculation that the company could phase out the smartphone model before the end of the year. Apple sent out 29 million iPhone Xs in the final quarter of 2017, below investors’ expectations of 30 million to 35 million, according to figures published by Canalys, a market research provider. - The Times
Donald Trump’s decision to impose a tariff on imported solar panels will cost the US solar industry about 23,000 jobs this year and risks slowing the growth of clean energy that would help address climate change, renewable energy advocates warned. Trump has imposed a 30% tariff on foreign-made solar cells and modules, with the White House expressing alarm at a huge rise in imported components “spurred on by artificially low-priced solar cells and modules from China”. - Guardian
A ban on using credit cards for online gambling and a mandatory levy on gambling firms to fund addiction treatment are among last-minute recommendations submitted as part of a government review of gambling regulation. As a consultation by the Department for Digital, Culture, Media and Sport (DCMS) drew to a close, ministers faced calls to introduce concrete measures to tackle the “hidden addiction” suffered by the UK’s estimated 430,000 problem gamblers. - Guardian
US close
Wall Street finished mixed on Tuesday, after Senators from both sides of the aisle agreed on a temporary deal to end the three-day government shutdown, with a surge in Netflix stock propelling the tech-heavy Nasdaq gauge to a record high.
The Dow Jones Industrial Average ended the session down 0.01% at 26,210.81, while the S&P 500 was ahead 0.22% at 2,839.13 and the Nasdaq 100 added 0.83% to 6,963.46.
As expected, the Senate did agree a deal after the close of markets on Monday that would keep the government running up to 8 February.
Helping to boost sentiment, strategists at Bank of America-Merrill Lynch raised their year-end 2018 target for the S&P 500 from 2,800 points to 3,000.
"While 2017 saw building optimism, 2018 may be the year of euphoria,” the strategists said in their report.
“While valuations have overshot fair value, sentiment is likely to be the most important driver of returns − typical of late-stage bull markets.”