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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London close: Markets finish lower despite late rally Markets slumped to a six-week low on Tuesday as investors trimmed positions and scaled back risk appetite ahead of minutes of the latest US policy meeting due out tomorrow.
The FTSE 100 dropped to an intraday low of around 6,400 early on after a series of disappointing corporate earnings, but rallied strongly in afternoon trade to finish at 6,453.46, down just 12.27 points on the day. Still, the last time the London benchmark closed lower was on July 8th when it finished the day at 6,450.07
"Even though we've seen losses across Europe today, markets have pulled off their worst levels as bond yields, which jumped sharply yesterday, are slipping back today, and that has limited the downside," said Senior Market Analyst Michael Hewson from CMC Markets.
After rising to a fresh two-year high of 2.89% yesterday, the yield on a benchmark 10-year US Treasury pulled back to the 2.82% mark today. However, they will likely remain in focus until they fall further from current elevated levels, having surged by 34 basis points over the last month alone.
Bond and equity markets have been choppy over recent weeks given the heightened speculation that the Fed will begin to taper it quantitative easing programme at the next Federal Open Market Committee (FOMC) meeting in September. |
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| FTSE 100: Wood Group drops on cautious outlook
Oil and gas services company Wood Group fell to a seven-week low today after scaling back its full-year EBITA growth guidance for its engineering division from 15% to "10-15%", reflecting some project delays and further weakening in Canada. The firm however said that it expects to meet full-year expectations on the whole.
CRH also fell sharply after swinging to a loss for the half-year period. The building materials firm reported a loss before tax of €71m, down from €102m the year before, while sales fell 3.0% to €8.01bn.
Mining stocks were broadly out of favour today as results from BHP Billiton and Glencore Xstrata failed to impress. BHP said lower commodity prices wiped $8.9bn off its underlying earnings which plunged 22.4% in the year to the end of June, while Glencore Xstrata was forced to write down $7.7bn in assets as it reported a 9.0% drop in first-half adjusted EBITDA.
Even housebuilder Persimmon fell into the red despite a strong jump early on. The company said that first-half profits jumped 38% and its order book was running 21% ahead of last year as the government's 'Help to Buy' scheme boosted demand.
A number financial stocks were also lower today with Prudential and Standard Chartered among the heaviest fallers given the concerns about money pouring out of emerging markets.
Terrestrial broadcaster ITV was among the best performers today after Morgan Stanley raised its target for the stock, saying the business could benefit from an upswing in UK advertising as the economic recovery gathers momentum.
Meggitt, the engineering group working in the aerospace, defence and energy markets, was slightly higher after Investec upgraded the stock from 'add' to 'buy', saying it still sees further upside even after a strong performance this year.
FTSE 250: Fisher, NMC Health, Evraz
James Fisher, the worldwide marine services firm, was on the rise after revealing that it had sold 25% of its stake in Foreland Holdings and acquired Osiris, a diving and sub-sea services firm.
Growth in referrals and patient numbers helped Abu Dhabi healthcare and distribution group NMC Health to a strong first-half result, prompting a strong rise in shares.
As on the top tier index, miners on the FTSE 250 were providing a drag, with steel group EVRAZ dropping sharply, along with Kenmare Resources and Hochschild Mining.
FTSE 100 - Risers
Fresnillo (FRES) 1,184.00p +2.33%
BT Group (BT.A) 328.20p +1.86%
ITV (ITV) 161.90p +1.82%
Compass Group (CPG) 870.00p +1.46%
National Grid (NG.) 743.50p +1.36%
GlaxoSmithKline (GSK) 1,662.00p +1.03%
InterContinental Hotels Group (IHG) 1,978.00p +1.02%
Bunzl (BNZL) 1,362.00p +0.96%
Meggitt (MGGT) 537.50p +0.94%
Intertek Group (ITRK) 3,224.00p +0.91%
FTSE 100 - Fallers
Wood Group (John) (WG.) 831.00p -7.97%
Prudential (PRU) 1,148.00p -3.20%
Standard Chartered (STAN) 1,479.00p -2.76%
Vedanta Resources (VED) 1,173.00p -2.25%
CRH (CRH) 1,394.00p -2.24%
Experian (EXPN) 1,178.00p -1.83%
Aberdeen Asset Management (ADN) 378.80p -1.74%
BHP Billiton (BLT) 1,923.50p -1.66%
Lloyds Banking Group (LLOY) 73.80p -1.60%
Glencore Xstrata (GLEN) 297.15p -1.59%
FTSE 250 - Risers
Fisher (James) & Sons (FSJ) 1,057.00p +5.86%
NMC Health (NMC) 348.50p +5.61%
Crest Nicholson Holdings (CRST) 337.00p +4.27%
Ladbrokes (LAD) 197.50p +3.13%
Keller Group (KLR) 1,070.00p +2.59%
Law Debenture Corp. (LWDB) 473.00p +1.83%
Hikma Pharmaceuticals (HIK) 1,090.00p +1.68%
Moneysupermarket.com Group (MONY) 168.60p +1.57%
Barr (A.G.) (BAG) 565.00p +1.35%
Berendsen (BRSN) 867.50p +1.34%
FTSE 250 - Fallers
Evraz (EVR) 115.00p -6.58%
Perform Group (PER) 520.50p -5.28%
Ashmore Group (ASHM) 335.40p -4.91%
Brewin Dolphin Holdings (BRW) 263.10p -4.50%
Enterprise Inns (ETI) 132.80p -3.91%
Domino Printing Sciences (DNO) 675.00p -3.78%
Kenmare Resources (KMR) 29.70p -3.51%
Renishaw (RSW) 1,706.00p -3.40%
Inchcape (INCH) 612.00p -3.39%
Hochschild Mining (HOC) 225.50p -3.18% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks fall as investors await FOMC minutes - Stoxx 600 at three-week low
- Fed taper concerns continue to weigh on sentiment
- Banking stocks decline across the continent
FTSE 100: -0.19%
Xetra DAX: -0.79%
CAC 40: -1.35%
IBEX 35: -1.79%
FTSE MIB: -1.41%
Stoxx 600: -0.83%
European stock markets finished firmly lower on Tuesday with banking stocks across the continent bearing the brunt of a reduction in risk appetite.
The Stoxx Europe 600 index finished 0.83% lower at 302.25, its worst level since July 31st.
Investors were trimming positions ahead of the minutes of the last Federal Open Market Committee (FOMC) meeting due out tomorrow which will be closely watched for hints of a timeframe for the reduction of US stimulus.
"Many are now anticipating the July minutes could strengthen the view that the central bank could soon taper its bond-buying programme," said Lee Mumford, Financial Sales Trader at Spreadex.
Societe Generale was among the worst performers in France, Commerzbank and Deutsche Bank declined in Germany, while Banco de Sabadell and Bankinter suffered heavy losses in Spain.
Meanwhile, a number of disappointing corporate earnings in London weighed on sentiment today.
Oil and gas services company Wood Group fell to a seven-week low today after scaling back its full-year EBITA growth guidance for its engineering division from 15% to "10-15%", reflecting some project delays and further weakening in Canada.
Mining stocks were broadly out of favour today as results from BHP Billiton and Glencore Xstrata failed to impress. BHP said lower commodity prices wiped $8.9bn off its underlying earnings which plunged 22.4% in the year to the end of June, while Glencore Xstrata was forced to write down $7.7bn in assets as it reported a 9.0% drop in first-half adjusted EBITDA.
Irish building materials firm CRH fell sharply after swinging to a loss for the half-year period. The firm reported a loss before tax of €71m, down from €102m the year before, while sales fell 3.0% to €8.01bn. European cement makers Holcim and HeidelbergCement also finished in the red.
Swiss chocolate maker Lindt surged closed to a six-year high today after beating profit forecasts with in the first half and upping its full-year guidance. |
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| | US Market Report | | US close: Stocks fall as bond yields continue to rise - Eyes turn to FOMC minutes on Wednesday
- Benchmark yields continue to rise
- Dow, S&P in longest losing streak since Dec 2012
Dow Jones: -0.47%
NASDAQ: -0.38%
S&P 500: -0.59%
US stocks fell firmly into the red on Monday despite a positive start as rising bond yields and heightened speculation about a tapering of stimulus continued to hit market sentiment.
Following a choppy week last week - volumes are still said to be light with many traders away on summer holidays - both the Dow Jones and S&P 500 finished lower for the fourth straight day, the longest losing streak since December 28th 2012, according to MarketWatch.
Treasury yields were on the advance again on Monday with the majority of analysts now expecting the Fed to begin tapering quantitative easing as early as September. The yield on the US 10-year Treasury note was up seven basis points (bp) at a fresh two-year high of 2.89%, as eyes begin to turn towards the minutes of the Federal Open Market Committee (FOMC) meeting due for release on Wednesday.
US benchmark yields have surged so far in 2013, boosted by Fed Chairman Ben Bernanke's indication in May that the central bank would begin to trim its $85bn-a-month of asset purchases if the economic recovery gathers momentum.
Market Strategist Ishaq Siddiqi from ETX Capital said: "The growing optimism over the US economy/prospects of September Fed tapering drives the spike in bond yields, which 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."
Intel, Facebook, Apple on the rise
Chipmaker Intel rose after investment bank Piper Jaffray upgraded the stock from 'underweight' to 'neutral', saying that PCs "are not going away anytime soon" despite the chip industry being solidly in the "post-PC era".
Facebook was making decent gains after Evercore Partners upped its price target for the social media titan from $34 to $45 and maintained an 'overweight' position. Apple was also providing a lift on the Nasdaq today.
Zillow Inc. declined after agreeing to acquire New York City real-estate website StreetEasy.
Industrial technology group Edwards Group surged after Atlas Copco agreed to buy the company for up to $1.6bn.
S&P 500 - Risers
Dollar General Corp (DG) $54.09 +3.09%
Intuitive Surgical Inc. (ISRG) $384.95 +1.75%
Intel Corp. (INTC) $22.28 +1.67%
Nike Inc. (NKE) $64.71 +1.67%
Monster Beverage Corp (MNST) $59.11 +1.49%
Johnson & Johnson (JNJ) $90.45 +1.21%
Boeing Co. (BA) $104.72 +1.21%
Best Buy Co. Inc. (BBY) $30.73 +1.19%
Ball Corp (BLL) $45.54 +1.18%
Covidien Plc (COV) $60.90 +1.08%
S&P 500 - Fallers
Marathon Oil Corp. (MRO) $32.61 -4.82%
Cliffs Natural Resources Inc. (CLF) $21.74 -4.77%
Apache Corp. (APA) $75.37 -4.58%
Genworth Financial Inc. (GNW) $12.02 -4.53%
United States Steel Corp. (X) $17.99 -4.41%
Lennar Corp. Class A (LEN) $32.39 -4.40%
Peabody Energy Corp. (BTU) $16.74 -4.01%
PulteGroup Inc. (PHM) $15.65 -3.87%
D. R. Horton Inc. (DHI) $18.30 -3.68%
Tesoro Corp. (TSO) $47.04 -3.61%
Dow Jones I.A - Risers
Intel Corp. (INTC) $22.28 +1.67%
Johnson & Johnson (JNJ) $90.45 +1.21%
Boeing Co. (BA) $104.72 +1.21%
McDonald's Corp. (MCD) $95.48 +0.47%
Unitedhealth Group Inc. (UNH) $71.71 +0.39%
Pfizer Inc. (PFE) $28.46 +0.32%
Dow Jones I.A - Fallers
JP Morgan Chase & Co. (JPM) $51.83 -2.74%
Alcoa Inc. (AA) $7.94 -2.22%
Hewlett-Packard Co. (HPQ) $25.88 -2.04%
Bank of America Corp. (BAC) $14.15 -1.87%
E.I. du Pont de Nemours and Co. (DD) $57.53 -1.29%
Microsoft Corp. (MSFT) $31.39 -1.28%
AT&T Inc. (T) $33.79 -1.14%
Caterpillar Inc. (CAT) $84.20 -1.13%
Exxon Mobil Corp. (XOM) $86.92 -1.13%
American Express Co. (AXP) $74.34 -1.10%
Nasdaq 100 - Risers
Facebook Inc. (FB) $37.81 +1.97%
Intuitive Surgical Inc. (ISRG) $384.95 +1.75%
Intel Corp. (INTC) $22.28 +1.67%
Monster Beverage Corp (MNST) $59.11 +1.49%
Apple Inc. (AAPL) $507.74 +1.08%
Google Inc. (GOOG) $865.65 +1.02%
Dollar Tree Inc (DLTR) $50.91 +0.91%
Garmin Ltd. (GRMN) $38.07 +0.77%
Gilead Sciences Inc. (GILD) $57.34 +0.76%
Ross Stores Inc. (ROST) $65.18 +0.65%
Nasdaq 100 - Fallers
Activision Blizzard Inc. (ATVI) $16.79 -2.95%
Sears Holdings Corp. (SHLD) $40.12 -2.58%
Randgold Resources Ltd. Ads (GOLD) $78.19 -2.57%
Staples Inc. (SPLS) $16.41 -2.55%
Sirius XM Radio Inc (SIRI) $3.61 -2.43%
Broadcom Corp. (BRCM) $25.29 -2.39%
F5 Networks Inc. (FFIV) $85.70 -2.05%
Liberty Global plc Series A (LBTYA) $74.84 -1.84%
Fossil Group Inc (FOSL) $115.04 -1.81%
Twenty-First Century Fox Inc Class A (NWSA) $15.70 -1.75% |
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| | Broker Tips | | Broker tips: AMEC, Meggitt, ITV Credit Suisse has maintained its upbeat stance on engineering consultancy firm AMEC despite Monday's rejected takeover bid of smaller rival Kentz Corporation, saying that the company could re-start share buybacks later in the year.
"If Amec fails to secure a meaningful acquisition by 4Q management can be expected to announce the re-commencement of share buybacks. Some investors may view this as an admission of failure, but we believe management should maintain its policy of strict capital discipline."
Meggitt, the engineering group working in the aerospace, defence and energy markets, was making gains on Tuesday morning after Investec upgraded the stock from 'add' to 'buy', saying it still sees further upside even after the near-40% ire so far this year.
Analyst Chris Dyett said: "For a number of years now civil aerospace stocks have been market favourites given the long term visibility and growth prospects. However, we favour Meggitt for its subtle improvements, which we still think are under-estimated and under-valued."
Morgan Stanley has raised its target for terrestrial broadcaster ITV from 175p to 185p, highlighting the potential for an upswing in UK advertising.
The bank, which reiterated its 'overweight' position on the stock, said: "Advertising momentum will be the key driver of the short-term share price. 2013 appears to be in good shape and the market is optimistic that 2014 will see an improving UK environment." | | |
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