| | | | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London close: Tapering concerns continue to hit stocks Concerns about the future of US stimulus continued to weigh on stocks on Monday with London's mining sector bearing the brunt of a reduction in risk appetite amongst investors.
Market sentiment has been fragile in recent weeks due to heightened speculation that the Federal Reserve will taper its quantitative easing programme at its next policy meeting in September given the recent improvement in economic data as well as comments from a number of policymakers.
Rising government bond yields were worrying traders today with the yield on a US 10-year Treasury note up three basis points (bp) at a fresh two-year high of 2.86%, as eyes begin to turn towards the minutes of the Federal Open Market Committee (FOMC) meeting due for release on Wednesday.
Spikes in bond yields "are widely seen as unwelcomed due to the negative impact on growth at a time when economies are just starting to show tangible signs of recovery," said Market Strategist Ishaq Siddiqi from ETX Capital. Benchmark bond yields in the UK and Germany were also higher today.
The FTSE 100 finished 34.26 points lower at 6,465.73.
Ankit Kapur, Sales Trader at CMC Markets, said this afternoon that markets were lacking continuity as the City remains in a "holiday slumber".
He said: "It appears that everyone in the City is still either asleep or on holiday with low trading volumes and a blank macro calendar unlikely to stir anyone into action in the short - term as we all wait for Wednesday's Fed minutes and any clues on the potential scale of the tapering plan." |
| | 7 Deadly mistakes to avoid when trading in Gold & Silver | | Learn how to profit consistently from Gold & Silver Trading – Click here |
| FTSE 100: Miners provide a drag
Mining stocks were in the red on Monday as metals prices declined. Glencore Xstrata and BHP Billiton were both lower ahead of their first-half and full-year results tomorrow, respectively. Market chatter has suggested that Glencore Xstrata could write down the value of its assets inherited from Xstrata during the merger by as much as $7.0bn.
Anglo American, Fresnillo, Rio Tinto and Vedanta were also registering losses with the latter down despite announcing over the weekend that it has completed the merger of two of its subsidiaries, Sesa Goa and Sterlite Industries.
Pharmaceuticals group Shire edged higher after The Sunday Times said that it had hired advisory firm Lazard Ltd to help defend it against a takeover bid.
Marks & Spencer was in demand as retailer launched its Britain's Leading Ladies campaign to promote its new autumn/winter fashion collection. The advertisement features stars including Helen Mirren, Tracey Emin and Ellie Goulding.
Supermarket giant Tesco fell after being fined £300,000 for misleading customers over a promotion on a 400g punnet of strawberries.
FTSE 250: Kentz soars on bidding war hopes
Oil engineering firm Kentz rocketed today after rejected two takeover proposals (one from AMEC and another from Germany's M&W Group), saying they undervalue the company. AMEC's approach valued the firm at around £680m, though City sources told the London Evening Standard that Kentz could fetch up to around £820m.
Property website Rightmove and online price comparison group Moneysupermarket.com were making gains this afternoon after Westhouse Securities upgraded its ratings on the stocks to 'add' and 'buy', respectively.
FTSE 100 - Risers
Wood Group (John) (WG.) 903.00p +2.27%
ARM Holdings (ARM) 889.00p +2.18%
William Hill (WMH) 428.10p +1.45%
Serco Group (SRP) 615.50p +1.40%
Marks & Spencer Group (MKS) 459.50p +1.37%
Petrofac Ltd. (PFC) 1,262.00p +1.37%
Aberdeen Asset Management (ADN) 385.50p +1.29%
Diageo (DGE) 2,037.00p +1.29%
Sainsbury (J) (SBRY) 388.40p +1.25%
Bunzl (BNZL) 1,349.00p +1.20%
FTSE 100 - Fallers
Anglo American (AAL) 1,492.50p -3.55%
Vedanta Resources (VED) 1,200.00p -2.83%
Tullow Oil (TLW) 1,034.00p -2.18%
Glencore Xstrata (GLEN) 301.95p -2.08%
Randgold Resources Ltd. (RRS) 5,045.00p -2.04%
Standard Chartered (STAN) 1,521.00p -2.00%
Lloyds Banking Group (LLOY) 75.00p -1.83%
Old Mutual (OML) 194.00p -1.77%
Persimmon (PSN) 1,167.00p -1.77%
Rio Tinto (RIO) 3,055.00p -1.59%
FTSE 250 - Risers
Kentz Corporation Ltd. (KENZ) 591.00p +24.19%
Brewin Dolphin Holdings (BRW) 275.50p +5.56%
Rightmove (RMV) 2,364.00p +4.42%
Debenhams (DEB) 109.40p +3.89%
Bwin.party Digital Entertainment (BPTY) 134.10p +3.87%
Perform Group (PER) 549.50p +3.58%
Keller Group (KLR) 1,043.00p +3.58%
Halfords Group (HFD) 369.60p +3.53%
Moneysupermarket.com Group (MONY) 166.00p +3.43%
KCOM Group (KCOM) 85.55p +3.38%
FTSE 250 - Fallers
Ophir Energy (OPHR) 305.00p -7.58%
Hochschild Mining (HOC) 232.90p -4.55%
Ferrexpo (FXPO) 181.10p -3.98%
Taylor Wimpey (TW.) 104.60p -3.42%
Xaar (XAR) 821.00p -3.41%
888 Holdings (888) 152.10p -3.31%
JPMorgan Indian Inv Trust (JII) 302.00p -3.21%
Kazakhmys (KAZ) 306.60p -3.13%
Big Yellow Group (BYG) 422.90p -2.83%
Bumi (BUMI) 214.00p -2.73% |
| | The Share Centre | | Trade Online – Just £7.50 Per Deal.
Sign up in minutes.
Click here to find out more.
Capital at Risk. |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe midday: Investors wait on FOCM minutes - Investors eye FOMC minutes
- Germany to return to normal growth, says Bundesbank
- CBI raises UK growth forecast
- Mining stocks fall as copper prices drop
FTSE 100: -0.20%
DAX: -0.12
CAC 40: -0.62%
FTSE MIB: -1.56
IBEX 35: -0.83%
Stoxx 600: -0.29%
European equities were in the red as investors held out for Wednesday’s release of minutes from last month’s Federal Open Market Committee (FOMC) meeting.
The minutes from FOMC’s July 30th-31st meeting will provide details about discussions that led to the continuation of the Federal Reserve’s $85bn per month of bond purchases.
“Our economists expect the minutes to indicate that committee members viewed the improvement in labour markets and reduced downside risks as sufficient to signal that many on the committee stand ready to reduce the pace of purchases in September, should current trends continue,” Barclays said.
The Fed has said it would begin scaling back monetary stimulus once the economy picks up enough.
Economists expect the central bank to trim quantitative easing at its September meeting.
Germany to return to growth in H2
The Bundesbank expects Germany to return to normal growth in the second half of this year and inflation to ease further, according to the central bank's August monthly report published on Monday.
“Economic growth in Germany is likely to return to normal and steady rates in the second half of 2013,” the bulletin said.
In the UK, the Confederation of British Industry lifted its forecast for economic growth for this year from 1.0% to 1.2%, double the pace predicted by George Osborne in his March budget.
A series of upbeat reports, including in the services, construction and manufacturing sectors, prompted the organisation to raise its estimates.
Mining stocks decline
A gauge mining companies slumped, including Rio Tinto and Anglo American, as the price of copper fell in London
Kentz advanced after the engineering and construction services company confirmed it had been approached by AMEC about a potential takeover offer. The group rejected the offer, saying it undervalued the firm.
Atlas Copco gained following reports a purchase of Edwards Group could be announced as early as this month.
Holcim tumbled after UBS cut the stock to ‘neutral’ from ‘buy’, citing an expected earnings downgrade pressure.
Glencore Xstrata retreated after Reuters reported the mining company may write down as much as $7.0bn of inherited Xstrata assets when it reports results this week.
Other asset classes mixed
The euro/dollar rose 0.20% to the 1.3356 dollar mark.
Brent crude futures were up $0.036 to $110.440 per barrel on the ICE. |
| | Get Your Free Copy of High Perfomance Trading | What's covered:
| 35 Practical strategies and technique to enhance your trading psychology and performance. How to avoid common pitfalls of trading. Develop your mental edge through to learning to think like a successful trader. T.R.A.D.E. to Success - Goal Achievement Strategies | There are no obligations. Click here for your book.
Authorised and regulated by the Financial Conduct Authority No.475285 | |
| | US Market Report | | US close: Stocks finish lower as data misses forecasts - Building permits, housing starts, confidence data misses estimates
- Sentiment still fragile after sell-off
- Dell edges higher as Icahn fails to fast-track lawsuit
Dow Jones: -0.20%
Nasdaq: -0.09%
S&P 500: -0.32%
US benchmarks closed slightly lower on Friday as three major economic data-points failed to meet analysts' forecasts, with markets finishing lower for the second week in a row.
This was the largest weekly loss for the S&P 500 since June 21st though volumes were said to be very thin given the usual seasonal summer trends.
Stocks finished sharply lower on Thursday with the Dow registering a 225-point fall, its biggest one-day drop in two months, as disappointing corporate earnings and heightened fears of tapering dented investor confidence.
Data from the labour market – a deciding factor in the Federal Reserve's potential scaling back of stimulus – came in better than anticipated yesterday with jobless claims falling to their lowest levels since October 2007.
In addition to a rise in consumer prices, speculation about an imminent tapering of asset purchases at the central bank's next meeting in September continues to ramp up.
Economic data misses forecasts
Building permits rebounded in July rising 2.7% to 943,000 after a revised 6.8% fall the month before, but missed the 945,000 consensus forecast.
Housing starts rose 5.9% last month to 896,000 after a revised 7.9% fall in June, below the 900,000 estimate.
Meanwhile, the University of Michigan consumer confidence survey fell to 80 in August, pulling back after a six-year high of 85.1 in July. Analysts had expected a slight rise to 85.5.
Icahn loses bid to fast-track Dell lawsuit
Dell's share price edged higher after a court denied investor Carl Icahn's bid to fast-track a lawsuit against a takeover bid by founder Michael Dell. The company yesterday reported a whopping 72% drop in second-quarter profits to $204m as PC sales took a hit.
Aluminium giant Alcoa was trading lower after Bank of America Merrill Lynch downgraded its rating for the stock from 'neutral' to 'underweight'.
Meanwhile, internet radio group Pandora jumped after Goldman Sachs upgraded the shares from 'neutral' to 'buy'.
JC Penney fell after striking an agreement with former board member and biggest shareholder Bill Ackman regarding the sale of his 17.7% stake in the company.
S&P 500 - Risers
Anadarko Petroleum Corp. (APC) $91.52 +2.60%
Adt Corp (ADT) $41.06 +2.34%
PulteGroup Inc. (PHM) $16.28 +2.33%
Snap On Inc. (SNA) $98.39 +2.27%
Lincoln National Corp. (LNC) $43.55 +2.16%
Netflix Inc. (NFLX) $258.87 +2.15%
Applied Materials Inc. (AMAT) $15.62 +1.92%
Hewlett-Packard Co. (HPQ) $26.42 +1.81%
Lennar Corp. Class A (LEN) $33.88 +1.80%
Genworth Financial Inc. (GNW) $12.59 +1.70%
S&P 500 - Fallers
Nordstrom Inc. (JWN) $56.43 -4.89%
Cliffs Natural Resources Inc. (CLF) $22.83 -3.87%
Kimco Realty Corp. (KIM) $20.50 -3.71%
Monsanto Co. (MON) $94.99 -3.12%
J.C. Penney Co. Inc. (JCP) $13.40 -3.11%
Mosaic Company (MOS) $42.87 -3.07%
ProLogis (PLD) $35.08 -2.99%
Simon Property Group Inc. (SPG) $145.30 -2.93%
Host Hotels & Resorts Inc. (HST) $16.52 -2.88%
Macy's Inc. (M) $44.99 -2.83%
Dow Jones I.A - Risers
Hewlett-Packard Co. (HPQ) $26.42 +1.81%
Boeing Co. (BA) $103.47 +0.72%
Bank of America Corp. (BAC) $14.42 +0.70%
American Express Co. (AXP) $75.17 +0.39%
Home Depot Inc. (HD) $75.38 +0.32%
United Technologies Corp. (UTX) $103.08 +0.09%
3M Co. (MMM) $115.90 +0.04%
Unitedhealth Group Inc. (UNH) $71.43 +0.04%
Travelers Company Inc. (TRV) $81.10 +0.04%
Microsoft Corp. (MSFT) $31.80 +0.03%
Dow Jones I.A - Fallers
Verizon Communications Inc. (VZ) $47.71 -1.71%
Pfizer Inc. (PFE) $28.37 -1.49%
Cisco Systems Inc. (CSCO) $24.27 -0.88%
Caterpillar Inc. (CAT) $85.16 -0.82%
E.I. du Pont de Nemours and Co. (DD) $58.28 -0.78%
Procter & Gamble Co. (PG) $79.90 -0.72%
Merck & Co. Inc. (MRK) $47.70 -0.56%
Intel Corp. (INTC) $21.92 -0.52%
AT&T Inc. (T) $34.18 -0.49%
Alcoa Inc. (AA) $8.12 -0.49%
Nasdaq 100 - Risers
Applied Materials Inc. (AMAT) $15.62 +1.92%
Facebook Inc. (FB) $37.08 +1.42%
Randgold Resources Ltd. Ads (GOLD) $80.25 +1.21%
Xilinx Inc. (XLNX) $44.56 +1.20%
Equinix Inc. (EQIX) $167.78 +1.14%
Express Scripts Holding Co (ESRX) $64.61 +1.00%
Analog Devices Inc. (ADI) $48.31 +0.99%
Altera Corp. (ALTR) $35.00 +0.89%
Apple Inc. (AAPL) $502.33 +0.89%
Cognizant Technology Solutions Corp. (CTSH) $71.46 +0.85%
Nasdaq 100 - Fallers
Western Digital Corp. (WDC) $64.60 -2.15%
F5 Networks Inc. (FFIV) $87.49 -1.95%
Dollar Tree Inc (DLTR) $50.45 -1.62%
Whole Foods Market Inc. (WFM) $52.96 -1.60%
CA Inc. (CA) $30.55 -1.44%
Intuitive Surgical Inc. (ISRG) $378.33 -1.41%
Liberty Interactive Corp (LINTA) $22.08 -1.41%
Kraft Foods Group, Inc. (KRFT) $52.77 -1.36%
Citrix Systems Inc. (CTXS) $71.60 -1.34%
Sears Holdings Corp. (SHLD) $41.18 -1.31% |
| | NEW Trading Strategy - Currently running at 70% success rate | | Earn a tax free income trading, from just 20 minutes a day – no experience needed. Our powerful trading software will help you decide when to enter trades and how to maximise profits.
Register for a FREE brochure and trading guide, Click Here. |
| | Broker Tips | | Broker tips: BHP Billiton, Antofagasta, Bovis Homes Barclays has maintained its positive stance on diversified mining giant BHP Billiton ahead of its full-year results on Tuesday.
"The share price of BHP Billiton has outperformed in seven of the last 12 years, and this year is proving no exception. The company's superior margin, ROCE, dividend and free cashflow yield continue to provide protection against the downdrift in commodity prices, while the diversified commodity base captures cyclical upswings."
Morgan Stanley has kept its 'underweight' position on Chile-focused copper mining group Antofagasta, saying that while current operating momentum is positive it will be hard to keep up.
"Changes to capital allocation caused by lower cash generation and approval of marginal projects continue to make the investment case unattractive. The solid operating performance delivered in Q1/Q2 will be difficult to sustain due to expected grade declines and ongoing cost inflation."
Prime Markets recommends to 'buy' shares of housebuilder Bovis Homes following Monday's interim report which showed strong growth in revenues and profits, as well as the group being 90% sold for legal completions in 2013.
"This of course means the South East-focused housebuilder should enter 2014 with a bulging forward order book, which for investors should mean a push for new year highs for the share price." | | |
New ADVFN Service - FREE Reports Get your free report on Isa's, Investment Trusts, Funds,
Sipps Travel and Cars - FREE and Easy service CLICK HERE
To advertise in the Euro Markets Bulletin please contact patrick@advfn.co.uk |
| | | | | | | To unsubscribe from this news bulletin or edit your mailing list settings click here. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +44 (0) 207 0700 961. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49 | |
No comments:
Post a Comment