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Aug 15, 2013

Morning Euro Markets Bulletin




ADVFN III Morning Euro Markets Bulletin
Daily world financial news Thursday, 15 August 2013 10:00:31
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London Market Report
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Weak start ahead of US data
UK stocks slumped in early trading on Thursday as investors awaited a barrage of economic data from the US amid mounting fears of a withdrawal of stimulus by the Federal Reserve.

"With the markets having a good run of late, the combination of uninspiring earnings and fears of tapering could create some pressure selling in when the European markets open," said Max Cohen, a Financial Sales Trader from Spreadex, before trading started this morning.

Meanwhile, the ongoing violence in Egypt continues to be a worry for markets after the interim government declared a state of emergency yesterday and Vice-President Mohamed ElBaradei resigned after a wave of bloody protests over recent days.

Retail sales figures will be the only major economic indicator to watch here in the UK today, though traders will keep their eyes peeled for a long list of data in the States this afternoon, including: CPI inflation; jobless claims; New York and Philadelphia manufacturing; industrial production; and the NAHB housing market index.

Jobless claims in particular will be closely watched given the Fed's comments linking a recovery in the labour market to the potential scaling back of asset purchases. Analysts are predicting a slight increase in claims to 335,000 during the week ended August 9th, up from 333,000 the week before.

Imperial lights up early on

Imperial Tobacco rose this morning after saying it is sticking to its full-year expectations despite a fall in volumes and sales amid difficult market conditions in Europe. Sector peer British American Tobacco was also higher.

Antofagasta was lower after JPMorgan Cazenove downgraded its rating for the copper mining group from 'overweight' to 'neutral', saying that its valuation is up to speed with events. The bank named Glencore Xstrata as its top pick in the copper sector.

Old Mutual meanwhile was in demand after the same broker raised its recommendation from 'neutral' to 'overweight' on the back of its first-half results last week.

British Airways and Iberia owner IAG fell after revealing it is buying up to 220 Airbus short-haul jets for the two airlines and its newly acquired Spanish budget carrier Vueling.

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FTSE 100 - Risers
Imperial Tobacco Group (IMT) 2,208.00p +2.51%
Admiral Group (ADM) 1,279.00p +0.95%
Carnival (CCL) 2,498.00p +0.81%
Randgold Resources Ltd. (RRS) 4,978.00p +0.71%
Aviva (AV.) 406.60p +0.42%
Old Mutual (OML) 198.50p +0.25%
Bunzl (BNZL) 1,358.00p +0.22%
ARM Holdings (ARM) 898.50p +0.17%
National Grid (NG.) 750.00p +0.13%
Meggitt (MGGT) 538.00p +0.09%

FTSE 100 - Fallers
easyJet (EZJ) 1,280.00p -2.29%
AstraZeneca (AZN) 3,181.00p -2.09%
Persimmon (PSN) 1,163.00p -1.77%
Rio Tinto (RIO) 3,144.50p -1.53%
Vedanta Resources (VED) 1,232.00p -1.52%
BG Group (BG.) 1,190.00p -1.37%
Antofagasta (ANTO) 958.00p -1.34%
Aggreko (AGK) 1,676.00p -1.30%
Petrofac Ltd. (PFC) 1,258.00p -1.18%
Travis Perkins (TPK) 1,609.00p -1.17%

FTSE 250 - Risers
BH Global Ltd. USD Shares (BHGU) 11.8 +1.64%
Salamander Energy (SMDR) 124.60p +1.47%
Lancashire Holdings Limited (LRE) 758.00p +1.07%
Michael Page International (MPI) 466.80p +0.78%
Moneysupermarket.com Group (MONY) 161.00p +0.62%
Synthomer (SYNT) 228.00p +0.44%
Rentokil Initial (RTO) 103.40p +0.39%
UBM (UBM) 714.50p +0.35%
African Barrick Gold (ABG) 154.20p +0.33%
NMC Health (NMC) 315.90p +0.29%

FTSE 250 - Fallers
Ophir Energy (OPHR) 353.80p -9.28%
Bumi (BUMI) 212.60p -5.51%
Fidessa Group (FDSA) 2,020.00p -3.81%
Centamin (DI) (CEY) 35.86p -3.73%
Carpetright (CPR) 640.00p -3.61%
Drax Group (DRX) 664.50p -3.13%
SIG (SHI) 182.50p -2.93%
Brewin Dolphin Holdings (BRW) 263.30p -2.70%
AZ Electronic Materials SA (DI) (AZEM) 309.10p -2.58%
Ted Baker (TED) 1,878.00p -2.44%

UK Event Calendar
INTERIMS
Afarak Group (DI), AZ Electronic Materials SA (DI), Cineworld Group, Delcam, Gem Diamonds Ltd. (DI), Ophir Energy, PV Crystalox Solar, SIG, Skyepharma, Talvivaara Mining Company (CDI)

INTERIM DIVIDEND PAYMENT DATE
Chemring Group, Safestore Holdings

QUARTERLY PAYMENT DATE
Abbott Laboratories, Marsh & Mclennan Cos Inc.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Bloomberg Consumer Confidence (US) (14:45)
Capacity Utilisation (US) (14:15)
Consumer Price Index (US) (13:30)
Continuing Claims (US) (13:30)
Industrial Production (US) (14:15)
Initial Jobless Claims (US) (13:30)
Philadelphia Fed Index (US) (15:00)

Q2
Afarak Group (DI), Talvivaara Mining Company (CDI)

GMS
Bglobal, Ideagen, Vane Minerals

FINALS
Orosur Mining Inc, Rank Group

EGMS
Crystal Amber Fund Ltd.

AGMS
Accumuli

TRADING ANNOUNCEMENTS
Imperial Tobacco Group

UK ECONOMIC ANNOUNCEMENTS
Internet Retail Sales (09:30)
Retail Sales (09:30)

FINAL DIVIDEND PAYMENT DATE
Fortune Oil, Hansa Trust, Hansa Trust 'A' Non Voting Shares

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Europe Market Report
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FTSE 100EuronextDax perfCAC 40
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Stocks mixed ahead of US data
FTSE 100: -0.41%
DAX: -0.57%
CAC 40: -.029%
FTSE MIB: 0.48%
IBEX 35: -0.30%
Stoxx 600: -0.54%

European equities were mixed ahead of US reports on industrial production and jobless claims.

The Fed Bank of New York's general economic index is expected to show manufacturing grew in August to 10 from 9.5 in July. Readings greater than zero mean activity expanded in New York, northern New Jersey and southern Connecticut.

A Federal Reserve report is also anticipated to show that US output from factories, mines and utilities rose 0.3% in July.

Separately the Labor Department will release its employment report which is forecast to reveal that jobless claims in the week ended August 10th jumped to 335,000 from 333,000 a week earlier. The data comes as the Federal Reserve continues to mull over whether to scale back its quantitative easing.

The central bank is expected to trim its $85bn in monthly bond purchases at its two-day meeting starting September 17th, according to economists. The Fed has said it would begin reducing its monetary stimulus if the economy and the jobs market improved enough, so Thursday's reports will be of particular importance.

Zurich Insurance, Imperial Tobacco

Zurich Insurance slumped after reporting second-quarter net income of $789m which missed analysts' estimates.

Imperial Tobacco advanced after sticking to its full-year expectations despite a fall in volumes and sales amid difficult market conditions in Europe.

Oriflame declined after posting second quarter earnings and sales that fell short of analysts' predictions

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US Market Report
Stocks fall as tapering concerns continue to hit sentiment
Dow Jones: -0.73%
Nasdaq: -0.42%
S&P 500: -0.54%

US stocks finished firmly lower on Wednesday with the Dow Jones registering tripe-digit losses as speculation about an imminent tapering of Federal Reserve stimulus ramped up.

Retail bellwether Macy's was also weighing on sentiment today as it disappointed with its second-quarter earnings report.

"The sell-off in the US came after another rise in US Treasury yields, to around 2.71%, on increasing expectations that the Fed will start tapering its asset purchases in September," said Market Analyst Craig Erlam from Alpari.

"While I still believe it won't come until December, at the earliest, I am certainly in the camp that hopes it will happen in September. All these swings in the markets driven by fear of when the Fed will begin tapering is overshadowing the fundamentals once again and preventing the markets from functioning correctly."

US producer prices increased at a 2.1% annual rate in July, a slowdown from the 2.5% pace in June and below the 2.4% forecast. When compared month-on-month, producers prices were flat at a 0.8% gain in June (forecast: 0.3%). Core producer prices, which exclude food and energy, also came in below expectations.

Analyst Peter Newland from Barclays said that while the producer price data hints at further weakness ahead, "we continue to judge that the core consumer price inflation reached a trough on a year-on-year basis in June, and will gradually rise during H2. In large part this is likely to be driven by services components, such as shelter and medical care, which are not well covered by producer prices."

Other economic data out today showed a 4.7% decline in applications for mortgage loans and refinancing during the week ended August 9th, according to the Mortgage Bankers Association. This was a sharp contrast to the 0.2% rise the week before.

Wall Street benchmarks were shrugging off the news that the Eurozone had exited its 18-month long recession in the second quarter - the region's gross domestic product expanded by 0.3%, slightly beating the consensus estimate for growth of 0.2%.

Macy's slumped after the department-store chain reduced its full-year profit forecast following "softer-than-anticipated" sales in the second quarter, blaming consumers' "continuing uncertainty about spending on discretionary items in the current economic environment".

The company said that earnings this year would now be $3.80-3.90 a share, slightly below the previous guidance range of $3.90-3.95.

Retail titan Wal-Mart edged lower ahead of its earnings release tomorrow.

The world's largest farm-equipment maker, Deere & Co, fell despite beating expectations with its fiscal third-quarter results as it reported record earnings of $997m. The firm however did say that equipment sales would be down 5.0% in the final quarter of the year owing to tough comparatives with last year.

Cree plummeted after the maker of energy-efficient lighting products predicted earnings in the first quarter will be no more than $0.41 a share, missing estimates.


S&P 500 - Risers
Newmont Mining Corp. (NEM) $31.94 +6.18%
Nvidia Corp. (NVDA) $15.03 +4.23%
NRG Energy Inc. (NRG) $26.52 +3.92%
Peabody Energy Corp. (BTU) $17.88 +3.89%
Advanced Micro Devices Inc. (AMD) $3.82 +3.52%
J.C. Penney Co. Inc. (JCP) $13.11 +3.39%
Weyerhaeuser Co. (WY) $27.79 +2.96%
Best Buy Co. Inc. (BBY) $31.67 +2.62%
Cliffs Natural Resources Inc. (CLF) $24.54 +2.59%
Actavis Inc (ACT) $137.94 +2.45%

S&P 500 - Fallers
TripAdvisor Inc. (TRIP) $73.55 -9.15%
Moody's Corp. (MCO) $65.50 -5.07%
Macy's Inc. (M) $46.33 -4.47%
JDS Uniphase Corp. (JDSU) $14.23 -3.85%
Newfield Exploration Co (NFX) $23.54 -3.84%
Sherwin-Williams Co. (SHW) $170.06 -3.26%
McGraw Hill Financial Inc (MHFI) $61.53 -3.21%
Dean Foods Co. (DF) $10.27 -2.75%
Noble Corp (NE) $39.23 -2.70%
Duke Energy Corp. (DUK) $69.02 -2.54%

Dow Jones I.A - Risers
Bank of America Corp. (BAC) $14.60 +0.62%
Microsoft Corp. (MSFT) $32.35 +0.37%
Travelers Company Inc. (TRV) $82.18 +0.29%
Merck & Co. Inc. (MRK) $48.57 +0.29%
Intel Corp. (INTC) $22.57 +0.22%
Cisco Systems Inc. (CSCO) $26.38 +0.21%
AT&T Inc. (T) $34.77 +0.14%
Alcoa Inc. (AA) $8.16 +0.12%

Dow Jones I.A - Fallers
Home Depot Inc. (HD) $77.44 -2.52%
Johnson & Johnson (JNJ) $90.70 -2.48%
Boeing Co. (BA) $104.16 -1.95%
United Technologies Corp. (UTX) $105.06 -1.63%
Unitedhealth Group Inc. (UNH) $72.49 -1.17%
3M Co. (MMM) $117.62 -0.88%
Caterpillar Inc. (CAT) $85.82 -0.87%
Pfizer Inc. (PFE) $29.03 -0.82%
Wal-Mart Stores Inc. (WMT) $76.40 -0.60%
E.I. du Pont de Nemours and Co. (DD) $59.37 -0.57%

Nasdaq 100 - Risers
Nvidia Corp. (NVDA) $15.03 +4.23%
Randgold Resources Ltd. Ads (GOLD) $76.92 +3.15%
Apple Inc. (AAPL) $498.50 +1.82%
Vertex Pharmaceuticals Inc. (VRTX) $78.25 +0.93%
Twenty-First Century Fox Inc Class A (NWSA) $15.90 +0.44%
Wynn Resorts Ltd. (WYNN) $140.17 +0.39%
Microsoft Corp. (MSFT) $32.35 +0.37%
Intel Corp. (INTC) $22.57 +0.22%
Cisco Systems Inc. (CSCO) $26.38 +0.21%
eBay Inc. (EBAY) $54.23 +0.20%

Nasdaq 100 - Fallers
Comcast Corp. (CMCSA) $43.86 -2.21%
Baidu Inc. (BIDU) $138.51 -2.13%
Avago Technologies Ltd. (AVGO) $37.22 -2.10%
Altera Corp. (ALTR) $35.56 -2.04%
Monster Beverage Corp (MNST) $60.57 -1.99%
Equinix Inc. (EQIX) $171.85 -1.94%
Check Point Software Technologies Ltd. (CHKP) $57.72 -1.80%
Ross Stores Inc. (ROST) $66.64 -1.78%
Liberty Global plc Series A (LBTYA) $76.46 -1.72%
Linear Technology Corp. (LLTC) $39.64 -1.71%

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Thursday newspaper round-up
BoE, JP Morgan, China
Top economists expect the Bank of England to take further action to ensure interest rates remain low say it and could relaunch quantitative easing within months if markets do not move into line, The Telegraph reported.

Two former JP Morgan bankers face up to 25 years in prison after US prosecutors filed criminal charges over their role in the $6.2bn "London Whale" trading scandal, The Times revealed.

China has widened its investigation into drug pricing and corruption in the healthcare sector, the Financial Times said.

AOL Chief Executive Tim Armstrong has apologised to his entire staff for publicly sacking an employee in front of 1,000 colleagues during a company conference call, according to The Guardian.

Kazakhstan miner Eurasian Natural Resources Corp. delivered poor half-way figures on Thursday ahead of being taken private, The Independent noted.

The Serious Fraud Office has brought charges for the first time under the toughened anti-bribery laws, against three businessmen in connection with an alleged £23m biofuel scam, The Times unveiled.

Energy giant npower could axe hundreds of jobs after it announced a plunge in profits and a cost-cutting drive, The Mirror said.

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