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UK markets managed to reverse early morning losses on Wednesday to nudge modestly into positive territory at midday, but there remains plenty for investors to mull over.
Doubts have quickly emerged about the potential effectiveness of a Covid-19 vaccine being developed by Morderna in the US after promising early tests that had markets jumping on Monday. That saw major US markets to snap a three-day winning streak to decline overnight, led by the Dow's 1.6% fall. The S&P 500 and tech-heavy Nasdaq lost 1% and 0.5% respectively.
At midday, the UK's benchmark FTSE 100 had edged roughly 0.2% higher and managing to so far, keep its head above 6,000 at 6,013.16.
Engineering group Melrose, down more than 4% at 91.28p, and housebuilders acted as the biggest drag.
Today's winners are led by global data firm Experian after rallying nearly 9% to £27.39 after posting strong full year results and a confident outlook despite the impact of the pandemic.
Revenues were up 8% to $5.18bn on a like for like basis in the year to 31 March, while operating profits grew 9% to $1.39bn helped by strong demand for its services in the final quarter. The firm expects first quarter revenues to decline between 5% and 10%, but remains confident of its ability to bounce back 'once the crisis abates', and has therefore held its second interim dividend.
ELSEWHERE IN CORPORATE NEWS
Aerospace firm Rolls-Royce was another loser, falling close to a new year-low down 3.8% to 257p after it revealed plans for a major restructuring involving the lay-off of at least 9,000 personnel 'as soon as possible.'
The plan involves slashing civil aerospace engine production, which represents around half of group revenues, as airline customers and aircraft makers reduce orders due to the impact of the pandemic on global air travel.
Chief executive Warren East said it was 'increasingly clear that activity in the commercial aerospace market will take several years to return to the levels seen just a few months ago. We must now address these medium-term structural changes, as demand from customers reduces significantly for our civil aerospace engines and aftermarket services.'
Pharma giant AstraZeneca firmed 1.7% to £88.20 on announcing that a prostate cancer treatment had been approved in the US.
M&S RALLIES HARD
Among mid-cap stocks, high street retailer Marks & Spencer jumped 9% to 93.42p after it revealed that sales were down just 1.9% in the year to 28 March and cash flow was well ahead of its Covid scenario in the first six weeks of the new financial year.
Close behind Marks was gambling technology company Playtech, up 3.5% to 239p as it reported better than expected operating profits for the first four months of the year.
Housebuilder Vistry gave up 2.3% to 742p despite a strong start to the year with over 70% of sites operating normally and an increase in the average sales rate accompanies by improved pricing.
Over the past eight weeks the firm has exchanged on 310 homes, completed on 257 sales and taken in 300 reservations net of cancellations, putting it ahead of where it expected to be at this stage.
Water utility Severn Trent found 0.3% to £24.11 as it hiked its annual dividend 7.2% amid a slight fall in underlying annual profit.
Gambling company William Hill added 3.9% to 126.73p after it estimated that it may receive as cash refund from UK tax authorities of between £125m and £150m.
Real estate company Great Portland Estates shed 1.9% to 629.2p, having booked a lower profit dragged down by weaker rental income and a fall in the value of its retail properties.
SMALLCAP WRAP
Investment manager Ninety One, which was recently spun out of South African investment bank Investc, gained 2.2% to 191.9p, having posted an 11% rise in annual profit after it welcomed fresh inflows into its funds.
Diagnostics company Renalytix AI jumped 14% to 401p on news that it had entered into a joint venture with the New York's Icahn School of Medicine at Mount Sinai to produce Covid-19 antibody test kits.