The human tragedy unfolding in the Middle East continued to impact financial markets on Thursday as the FTSE 100 fell with global equities.

The FTSE 100 was down 1% at the time of writing on Thursday.

“Worries about an escalation of violence in the Middle East weighed on stocks around the world. US markets experienced a troubled session last night and negativity spread across Europe and Asia on Thursday,” said Russ Mould, investment director at AJ Bell.

“Unsurprisingly, investors are flocking to supposed safe-haven or defensive assets including insurers and gold which neared a two-month high. Energy stocks were also in vogue as oil prices held firm above $90 per barrel amid fears that Middle Eastern oil supplies could be disrupted by the Israel-Hamas war. A big drawdown on US crude oil inventories has also given support to the oil price this week.”

Risk assets had held up well during the first days of the latest conflict in the Middle East, but the threat of violence increasing across the region has rightly hit sentiment over the past few trading sessions.

FTSE 100 movers

Rentokil Initial shares were exterminated by some investors on Thursday after lower operating profit margins in their key North American business. Shares in the company were down around 20% at the time of writing.

Rightmove shares were having a tough time after a US group agreed on a takeover of rival OnTheMarket. One would expect the new owners to pump cash into OnTheMarket in an attempt to steal market share from Rightmove.

OneTheMarket generated revenues of around £16.8m in their first half, while Rightmove generated in the region of £170m over a similar period.

The London Stock Exchange Group rose 2% after announcing gross profit increased 4.5% in last quarter’s trading.

Despite releasing a reasonably upbeat scoping study for their Monte Muambe project yesterday, Altona Rare Earths shares sank on Thursday in very thin trade.

Altona Rare Earths shares last traded down 9.5% on the day.

The company released the scoping study for their Monte Muambe rare earth located in northwestern Mozambique project yesterday, providing an insight into the economics of the asset.

The evaluation gave the project an upside scenario NPV of $409.9m and capex requirements of $276.3m. Net revenues over the life of the mine are expected to be $3,193.1m.

Cedric Simonet, CEO of Altona, commented on the scoping study results: 

“For Altona, the Monte Muambe Scoping Study is a significant milestone. This key deliverable serves as an affirmative initial validation of the Project’s economic viability, enabling the Company to establish its presence amongst other prospective REE producers in Africa. It provides, together with the Mineral Resource Estimate (“MRE”), a solid foundation for the Project’s subsequent progression.

“As the Project moves into its PFS stage, the Company will continue to work towards de-risking Monte Muambe and, with its local partners, to optimise its technical, commercial and financial parameters. We believe the timing for this achievement is impeccable, at a time where the global rare earths supply chain is diversifying away from China’s decades-long domination, and Western processing facilities are starting to come online.”

Altona Rare Earths shares have suffered from illiquidity and are down around 41% since relisting in London.

Netflix shares are up almost 13% in the US pre-market after the streaming giant raised prices for streaming plans in some countries and welcomed a gain of 9 million viewers in Q3.

Total Q3 income rose 8% and was around the previously expected $8.5bn.

The cost of a premium subscription plan in the UK is up by £2 and now costs £19.99, while in France the same subscription is up by €2 and in the U.S. by $3.

Netflix shares skyrocketed from $346.19 to $390.80 in extended trading on Thursday.

Despite ongoing Hollywood worker and actor strikes, which have caused Netflix to fill its slots with repeats and reality shows, the streaming platform gained up to 9 million viewers in Q3. And, according to the company, it expects to welcome at least the same number of new subscribers in the current quarter.

“These are the times I’m glad we have such a rich, deep, and broad programming selection,” Netflix co-CEO Ted Sarandos said about Q3 results. “The same was true during COVID, when we were able to manage the slate through a prolonged and pretty unpredictable production interruption.”

According to Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown,

“Subscribers were always going to be in the spotlight, and what a bright light they’ve been, with 9 million new paying additions to the Netflix fan club following a crackdown on account sharing. Blockbuster hits including Sex Education and The Witcher have helped attract and retain consumers with open wallets. The ongoing SAG-AFTRA negotiations are a lingering cloud, with disputes and the threat of prolonged production slowdowns increasing the risk of Netflix’s content slate being less than ideal, which is problematic when it doesn’t have the same back catalogue as Disney+ to fall back on.”

Finnish giant Nokia stated in a press release on Thursday that the company is planning to cut up to 14,000 employees as it aims to save up to €1.2 billion by 2026.

Nokia’s Thursday Q3 reports stated that quarterly comparable sales dropped 20%, while US sales are down 40% as the market remains unstable.

Letting go of up to 14000 employees will reduce Nokia’s annual staffing cost by 10-15% as part of their efforts to reduce gross costs by up to €1.2 bln by 2026.

Nokia’s shares are down 1.95% and are trading at €3.19 at the time of writing.

President and CEO of Nokia, Pekka Lundmark, said that the company´s “third quarter performance demonstrated resilience in our operating margin despite the impact of the weaker environment on our net sales. In the last three years, we have invested heavily to strengthen our technology leadership across the business, giving us a firm foundation to weather this period of market weakness.”

The CEO added that while she believed in Nokia´s long-term market attractiveness, “given the uncertain timing of the market recovery, we are now taking decisive action on three levels: strategic, operational, and cost. I believe these actions will make us stronger and deliver significant value for our shareholders”.

OnTheMarket has agreed to a £99m all-cash takeover by US-based CoStar Group at 110p per share.

OnTheMarket shares were trading up 52% at 107p at the time of writing on Thursday.

“OnTheMarket is the latest UK stock to receive a takeover offer, making it feel like a near-daily event as private equity and trade players seek to take advantage of cheap valuations on the UK market,” said Russ Mould, investment director at AJ Bell.

“Shareholders are being offered a chunky 56% premium to last night’s closing price by CoStar. It’s a classic move – a US business that is already an expert in the same sector is using the acquisition of a London-listed stock to expand into a new segment of the UK market. In CoStar’s case, the deal will give it a foot in the door for the UK residential property sector.

“OnTheMarket was set up as a rival to Rightmove and Zoopla, and while it didn’t necessarily cause those businesses too much stress, it did make slow but steady progress.”

OnTheMarket also released their half-year results on Thursday, revealing a 1% increase in revenue to £16.8m for the six months to 31st July.

Competitor Rightmove recently announced a 10% jump in revenue to £179.5m for the six-month period to 30th June.

Tekcapital announced further expansion of MicroSalt’s distribution network with the addition of Longs Drugs and 70 stores across Hawaii.

Longs Drugs is owned by $91bn market cap CVS Health.

“We are very excited about the placement of our SaltMe Low Sodium Crisps with the Longs Drug Chain. Excess sodium consumption is one of the leading contributors to hypertension and heart disease.  Placements like this are the best way to provide consumers with great tasting, healthy products with less sodium,” said Rick Guiney, CEO of MicroSalt®.

MicroSalt slashes the amount of sodium in foods and can help improve the health of those suffering from cardiovascular diseases. An estimated 31% of adults worldwide suffer from high blood pressure and other cardiovascular diseases.

Growth in MicroSalt’s distribution channels comes days after the announcement that MicroSalt’s IPO will be rescheduled with a new date expected in mid-November.