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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 open: Markets lower, but Kentz rockets after AMEC approach The FTSE 100 opened slightly lower on Monday morning as traders continue to speculate about the future of the Federal Reserve's quantitative easing programme.
The weak start follows the London benchmark's second weekly decline in a row last week and the worst weekly performance on New York's Dow Jones index so far this year.
With the economic data calendar looking pretty bare today, the focus is likely to remain on the Fed ahead of the minutes of the latest Federal Open Market Committee (FOMC) meeting to be released on Wednesday.
"Whether the latest Fed minutes will offer any further clues regarding a September taper is doubtful given recent chatter from various FOMC members about the strength or otherwise of recent data, but it does give the markets something else to obsess about," said Senior Market Analyst Michael Hewson from CMC Markets.
Kentz rockets; miners provide a drag early on
Engineering solutions group Kentz Corporation saw shares surge this morning after saying that a 565-580p-a-share proposal from AMEC undervalued the company and was rejected by its board. The approach values Kentz at around £680m, compared with Friday's market cap of £561m (476p a share).
Kentz said: "The company has strong growth prospects given its substantial order backlog, prospective bidding pipeline and robust balance sheet, together with a clear and realisable strategy to create further shareholder value as a standalone entity."
Mining stocks were in the red this morning as risk appetite was scaled back: Fresnillo, Glencore Xstrata, Randgold, Rio Tinto, Anglo American, BHP Billiton and ENRC were all registering losses early on. Vedanta was also down despite announcing over the weekend that it has completed the merger of two of its subsidiaries, Sesa Goa and Sterlite Industries.
Utilities group SSE was trading higher after HSBC upgraded the stock from 'underweight' to 'neutral', saying that the Energy Market Reform offers a "glimmer of hope". The broker said that SSE's "risk profile [is] reduced in line with peers on greater business visibility.
Vodafone was lower after reports said the telecoms giant has paid millions to HMRC to settle a dispute over tax returns of its Irish subsidiary.
Housebuilder Bovis Homes gained after reporting a 19% jump in pre-tax profits in the first half and giving an upbeat outlook for the rest of the year with demand being supported by the government's 'Help to Buy' scheme. |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks slide ahead of FOMC minutes - Investors wait for FOMC minutes
- CBI raises growth forecast for UK
FTSE 100: -0.33%
DAX: -0.68
CAC 40: -0.72%
FTSE MIB: -0.47
IBEX 35: -0.46%
Stoxx 600: -0.40%
European stocks retreated as investors awaited 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.
It will also shed further light on interest rate talks and the warning of the potential risks from inflation below the central bank's 2.0% target.
"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 been weighing up whether to begin scaling back its monetary stimulus, saying it would do so as soon as the economy and job market improved.
CBI lifts British growth forecast
The Confederation of British Industry has 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.
The CBI, which represents 240,000 UK businesses, also boosted its forecast for 2014 from 2.0% to 2.3%, supported by an expected increase in disposable income and business and housing investment.
Its upgrade comes after figures last week showed that the Eurozone emerged from recession.
However, the body warned that Britain is still falling short of a sustainable recovery as a rebalancing of the economy to become less reliant on consumer spending and more focused on investment and trade is taking longer than expected.
Kentz rejects AMEC offer
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 declined after UBS cut the stock to 'neutral' from 'buy', citing an expected earnings downgrade pressure.
Glencore Xstrata slumped after Reuters reported the mining company may write down as much as $7.0bn of inherited Xstrata assets when it reports results this week. |
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| | 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% |
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| | Newspaper Round Up | | Monday newspaper round-up: Tesco, Egypt, JPMorgan, Vodafone Tesco is set to introduce its own tablet computer which is expected to be ready for Christmas loaded with books, films and music, The Times reported.
Egypt's turmoil threatens to create a potential oil spike that could damage any nascent economic recovery, according to The Telegraph.
JPMorgan Chase is being investigated by US regulators over its hiring practises in Hong Kong, the Financial Times revealed
Vodafone made a previously unreported multimillion-pound settlement with HM Revenue & Customs amid a dispute over the tax paid by an Irish subsidiary created to collect royalty payments for using its brand, The Guardian unveiled.
The Confederation of British Industry has lifted its forecast for UK economic growth to 1.2%, but warned that Britain is still falling short of a sustainable recovery, The Independent wrote.
A government department ordered changes to the report of an independent investigation into a loan made by Barclays under a state-backed lending scheme in order to reflect the bank's views, The Guardian has learned.
Leading housebuilders Persimmon and Bovis Homes are this week expected to reveal a surge in profits as the government's controversial Help to Buy scheme starts to lift sales, the Daily Mail stated. | | |
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