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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | Stocks pulled higher after US jobless claims It was a mixed finish for European equity markets on Thursday but the FTSE 100 managed to push into positive territory by the close after some better-than-expected labour-market data in the States.
London’s benchmark FTSE 100 index ended the day up 14.06 points at 6,565.59, rebounding after hitting a two-week low of 6,551.53 on Wednesday.
“Today has very much been a day of two halves, with fear dominating the morning session until US optimism dragged the FTSE back out of the red,” said Alastair McCaig, Market Analyst at IG. “Traders have spent much of the week waiting for today’s economic figures and, now that they’re out, a sense of anti-climax has shrouded the trading floor,” he said.
US jobless claims dropped from a revised 310,000 to 305,000 in the week ended September 20th, surprising the consensus of analysts who had expected a jump to 325,000. IT issues in a number of regions had distorted figures the week before leading to a lower number of claims, so benefits were forecast to rise sharply today.
“While the lingering issues in California could result in a further uptick in continuing claims in coming weeks, it appears that the improved initial claims numbers are more a result of improved labour-market conditions than technical issues,” said analyst Cooper Howes from Barclays.
Following a mid-afternoon rally on markets, gains were limited by the close after some US housing figures disappointed. Pending-home sales fell for the third straight month, dropping 1.6% in August after a revised 1.4% decline the month before. Analysts had expected a fall of just 1%.
Economic data from the States continues to be closely watched in the aftermath of the Federal Reserve’s surprise decision last week to hold off from tapering stimulus as it await a stronger recovery. Conflicting comments from Fed officials since then have sparked further uncertainty over the future for US monetary policy with analysts now looking ahead to the October meeting for a potential ‘taper’.
Uncertainty surrounding US budget negotiations in Washington has also been weighing on market sentiment this week. Investors are hoping that politicians can agree on an extension to the current debt-ceiling limit of $16.7tn ahead of the deadline on October 1st to avoid a government shutdown when the new fiscal year begins.
Markets largely gave a subdued reaction to in-line economic data from the UK, as the second and final revision to UK gross domestic product growth for the second quarter held steady at 0.7%. US GDP growth meanwhile was unrevised at an annualised rate of 2.5%.
FTSE 100: TUI Travel jumps after lifting guidance
Tour operator TUI Travel jumped after hiking its profit guidance for the full year on the back of a strong summer season and early bookings for the winter.
Compass Group gained after saying expectations for the full year were unchanged with organic revenues set to have risen by just over 4% and profit margins to have grown slightly.
Tullow Oil also rose after announcing a new oil discovery in Northern Kenya. The group said results of drilling, wireline logs and samples of reservoir fluid indicate a potential net oil pay in the Auwerwer and Upper Lokone sandstone reservoirs of between 60 and 100 metres.
British Gas owner Centrica and utility group SSE were leading the downside, extending losses after this week’s proposal by Labour leader Ed Miliband to freeze energy bills if the party is voted back into power in 2015.
Banking and financial stocks were also providing a drag, with Barclays, Hargreaves Lansdown and Standard Chartered among the worst performers. Insurer Admiral however was bucking the trend, registering decent gains by the close.
FTSE 250: Soco Intl retreats after yesterday's good news
Soco International retreated one day after revealing its drill stem tests thus far on the TGT-10XST1 exploration well on the H5 fault block of the Te Giac Trang field, had "exceeded all pre-test expectations". It said combined peak production from two of the three zones tested is over 16,500 barrels of oil per day.
Ladbrokes slumped after warning that 2013 profits for its digital operations would come in a long way below current market forecasts. It said it expected 2013 Digital operating profits to be between £10m and £14m compared with a market consensus of about £27.5m. Numis and Canaccord Geunity downgraded their ratings for the stock this morning.
Tour operator Thomas Cook also fell sharply after reporting a decline in bookings in the UK over summer and flat sales in Europe. In a trading update ahead of the company’s full-year 2013 results in November, the group said UK bookings were down 3% on last year with a capacity reduction of 2.5%.
Iron ore producer Ferrexpo was a high riser after Macquarie upgraded its rating on the stock to 'neutral' and lifted its target from 155p to 180p. |
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| | FTSE 100 - Risers
TUI Travel (TT.) 370.40p +3.93%
Whitbread (WTB) 3,035.00p +3.34%
Compass Group (CPG) 849.50p +2.35%
G4S (GFS) 253.40p +1.97%
Schroders (SDR) 2,623.00p +1.94%
Glencore Xstrata (GLEN) 344.75p +1.56%
Admiral Group (ADM) 1,248.00p +1.55%
BAE Systems (BA.) 468.00p +1.45%
Land Securities Group (LAND) 933.50p +1.25%
British Land Co (BLND) 590.50p +1.03%
FTSE 100 - Fallers
Centrica (CNA) 366.90p -2.32%
SSE (SSE) 1,460.00p -1.95%
Hargreaves Lansdown (HL.) 995.50p -1.63%
Experian (EXPN) 1,199.00p -1.40%
Barclays (BARC) 269.20p -1.39%
easyJet (EZJ) 1,287.00p -1.23%
Standard Chartered (STAN) 1,507.50p -0.89%
Legal & General Group (LGEN) 202.00p -0.79%
Pearson (PSON) 1,253.00p -0.71%
Travis Perkins (TPK) 1,650.00p -0.66%
FTSE 250 - Risers
Man Group (EMG) 87.25p +4.43%
Polymetal International (POLY) 689.50p +4.15%
AZ Electronic Materials SA (DI) (AZEM) 310.80p +4.12%
Centamin (DI) (CEY) 47.29p +3.82%
African Barrick Gold (ABG) 163.70p +3.02%
Xaar (XAR) 799.00p +2.90%
IP Group (IPO) 144.00p +2.86%
Diploma (DPLM) 650.00p +2.77%
Workspace Group (WKP) 444.80p +2.63%
Ferrexpo (FXPO) 182.00p +2.59%
FTSE 250 - Fallers
Soco International (SIA) 394.00p -8.37%
Ladbrokes (LAD) 173.80p -7.60%
Thomas Cook Group (TCG) 145.30p -6.62%
Mitchells & Butlers (MAB) 408.90p -4.62%
Dunelm Group (DNLM) 936.50p -4.00%
Playtech (PTEC) 721.00p -3.03%
Redrow (RDW) 230.20p -2.42%
Countrywide (CWD) 544.50p -2.42%
Oxford Instruments (OXIG) 1,281.00p -2.36%
Millennium & Copthorne Hotels (MLC) 543.00p -2.16% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Stocks little changed after batch of economic reports FTSE 100: 0.06%
DAX: -0.16%
CAC 40: -0.31%
FTSE MIB: -1.21%
IBEX 35: 0.13%
Stoxx 600: -0.12%
European stocks were mixed at Thursday’s close as investors digested a raft of economic data in the US, Europe and the UK.
Eurozone loans, UK GDP
Private sector loans in the Eurozone fell by 2% in August compared to a year earlier, signalling that small companies and households are still struggling to benefit from the European Central Bank's (ECB) monetary easing.
The data pointed to an ongoing credit crunch in which companies and households are having a tough time trying to secure funding.
It also showed that one of the ECB’s key problems is still not fixed despite providing what some consider is sufficient liquidity to banks.
ECB President Mario Draghi has discussed the possibility of new long-term refinancing operations, but it remains to be seen whether the extra liquidity will boost economic recovery.
Also weighing on markets on Thursday was the release of Italy’s retail sales, which fell by a seasonally adjusted 0.3% in July compared to a 0.2% drop in June.
On a brighter note, France's consumer confidence rebounded in September, to reach a seven-month high. INSEE’s indicator for consumer sentiment rose from 84 last month to 85, in line with the consensus estimate.
The UK economy grew in line with market expectations in the second quarter, according to the Office for National Statistics.
GDP rose by 0.7% when compared to the previous three months when it increased at the same quarterly rate.
Spain's Rajoy addresses unemployment
Spain's Prime Minister Mariano Rajoy said the government may ramp up the overhaul of labour laws following advice from the Organisation for Economic Cooperation and Development (OECD), Bloomberg reported.
The government is reviewing the impact of the 2012 overhaul and will submit the assessment to the OECD in an effort to reduce the country's 26% unemployment rate.
“If it were necessary or useful to do a touch-up so that things worked better, have no doubt that we would do it,” Rajoy said.
Thomas Cook, Ladbrokes
Thomas Cook plunged after the tour operator said summer bookings were broadly flat and winter got off to a slow start.
Ladbrokes tumbled after issuing a profit warning for its digital division due to lack of competitiveness and lower-than-planned margins.
Mapfre dropped after Bankia SA sold a 12% stake in Spain’s biggest insurer.
Interdealer broker ICAP declined after agreeing to pay £55m to UK and US regulators as part of the long-running scandal over the alleged manipulation of the London Interbank Offered Rate by three former employees between 2006 and 2011.
H&M rallied after reporting a 22% rise in third quarter profit to 4.43bn kroner, beating analysts’ expectations.
Vinci advanced following reports the European builder could sell all or part of its parking unit.
Alcatel Lucent gained after reports Nokia Oyj was evaluating a linkup with the French global mobile phone manufacturer.
Brent crude climbs
Brent crude futures rose $0.551 to $108.920 per barrel on the ICE.
The euro fell 0.27% to the 1.3489 US dollar. |
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- Full breakdown of dates, including grey-market period.
- Performance of peers and recent similar IPOs.
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| | US Market Report | | Stocks rise following unemployment data Dow Jones Industrials: 0.25%
Nasdaq Composite: 0.50%
S&P 500: 0.19%
The main US stock benchmarks are now registering modest gains following the release of some slightly positive economic data, particularly as regards initial unemployment claims.
"Equity markets have been sliding since the Federal Reserve decided to keep its quantitative easing scheme unchanged last week. Since tapering was postponed last week, any positive news for the economy will be viewed as negative for the equity market," an analyst explained to Sharecast.
Fed officials Jeremy Stein, Narayana Kocherlakota and Sandra Pianalto will speak in the US on Thursday, which might provide more indication as to where the central bank is headed in its plans for quantitative easing.
Worth taking into account, earlier in the day Jeffrey Lacker – the President of the Federal Reserve bank of Richmond reportedly remarked that it is going to be harder for the Fed to communicate credibly in the future.
Also high on the agenda is the budget, as Treasury Secretary Jacob Lew said on Wednesday the US will hit its debt ceiling by October 17th.
Lew said unless the US is allowed to extend its borrowing limit, currently set at $17trn, the government will be left with $30bn of cash - half the money it needs to pay its bills. “Clearly investors hate the uncertainty surrounding these talks,” said Alpari Market Analyst, Craig Erlam. “Investors are currently concerned about the possibility of a partial government shutdown if no budget for the next year is passed by next week, followed by a default on US debt in the middle of the month, should the debt ceiling not be raised.”
Turning to company news, Caesars Entertainment Corp. fell as the casino operator started selling 10m new shares.
Hertz Global Holdings declined after cutting its forecast for full-year revenue and profit due to weaker than expected car rentals at US airports.
Bed Bath & Beyond rallied after the retailer said it raised its forecast for full-year adjusted earnings per share to between $4.88 to $5.01 from a previous range of $4.84 to $5.01.
Slightly positive economic data
Pending home sales in the US dropped by 1.6% on the month in August, versus consensus estimates for a drop of 1.0%.
Initial US weekly unemployment claims fell unexpectedly in the seven days ending on September 14th, by 5,000 to reach 310,000 Consensus: 325,000.
Second quarter gross domestic product growth estimates have revealed that the economy expanded at a 2.5 per cent pace during said period, just a smidgen below the 2.6 per cent clip which had been penciled in by economists.
Commenting on the numbers economists at Barclays Research had this to say: “All in all, the report provides no new information for policymakers, who will be more keenly focused on forward-looking growth indicators. On this front the picture remains mixed - our GDP tracking estimate, for example, currently suggests some easing in the third quarter as it stands at 1.7%.”
Subdued trading in other asset classes
US 10-year bond yield is rising by 1 basis point to the 2.64%.
Front month West Texas crude futures are now down by 0.30% to the 102.99 dollar per barrel mark on the NYMEX.
S&P 500 - Risers
Air Products & Chemicals Inc. (APD) $113.53 +5.78%
Bed Bath & Beyond Inc. (BBBY) $77.74 +4.79%
Regeneron Pharmaceuticals Inc. (REGN) $303.04 +3.70%
eBay Inc. (EBAY) $56.07 +3.43%
Genworth Financial Inc. (GNW) $13.10 +2.87%
Micron Technology Inc. (MU) $17.45 +2.83%
Cabot Oil & Gas Corp. (COG) $36.57 +2.81%
Yahoo! Inc. (YHOO) $32.22 +2.81%
First Solar Inc. (FSLR) $41.45 +2.62%
Juniper Networks Inc. (JNPR) $20.61 +2.56%
S&P 500 - Fallers
Jabil Circuit Inc. (JBL) $22.34 -6.90%
McCormick & Co. (MKC) $66.36 -2.48%
Eli Lilly and Company (LLY) $51.31 -2.47%
Windstream Holdings Inc (WIN) $8.36 -2.34%
Western Digital Corp. (WDC) $64.42 -1.54%
PG & E Corp. (PCG) $41.38 -1.17%
AvalonBay Communities Inc. (AVB) $129.60 -1.01%
GameStop Corp. (GME) $50.33 -0.93%
Valero Energy Corp. (VLO) $34.57 -0.89%
Seagate Technology Plc (STX) $43.49 -0.87%
Dow Jones I.A - Risers
Microsoft Corp. (MSFT) $33.00 +1.52%
Verizon Communications Inc. (VZ) $47.55 +1.28%
American Express Co. (AXP) $76.91 +1.21%
General Electric Co. (GE) $24.51 +1.16%
International Business Machines Corp. (IBM) $191.60 +1.12%
AT&T Inc. (T) $34.40 +1.03%
JP Morgan Chase & Co. (JPM) $52.23 +1.03%
Home Depot Inc. (HD) $76.25 +0.97%
Unitedhealth Group Inc. (UNH) $72.66 +0.94%
United Technologies Corp. (UTX) $110.10 +0.77%
Dow Jones I.A - Fallers
Intel Corp. (INTC) $23.59 -0.44%
Cisco Systems Inc. (CSCO) $24.35 -0.33%
Alcoa Inc. (AA) $8.32 -0.06%
Pfizer Inc. (PFE) $28.48 -0.04%
Nasdaq 100 - Risers
Bed Bath & Beyond Inc. (BBBY) $77.74 +4.79%
Regeneron Pharmaceuticals Inc. (REGN) $303.04 +3.70%
eBay Inc. (EBAY) $56.07 +3.43%
Green Mountain Coffee Roasters Inc. (GMCR) $78.12 +3.03%
Micron Technology Inc. (MU) $17.45 +2.83%
Yahoo! Inc. (YHOO) $32.22 +2.81%
Celgene Corp. (CELG) $148.84 +2.26%
Liberty Media Corporation - Class A (LMCA) $148.42 +2.13%
Alexion Pharmaceuticals Inc. (ALXN) $115.42 +2.10%
Gilead Sciences Inc. (GILD) $62.91 +1.91%
Nasdaq 100 - Fallers
Western Digital Corp. (WDC) $64.42 -1.54%
Seagate Technology Plc (STX) $43.49 -0.87%
Intel Corp. (INTC) $23.59 -0.44%
Express Scripts Holding Co (ESRX) $62.42 -0.34%
Cisco Systems Inc. (CSCO) $24.35 -0.33%
Sears Holdings Corp. (SHLD) $59.62 -0.17%
Mondelez International Inc. (MDLZ) $32.06 -0.12%
Kraft Foods Group, Inc. (KRFT) $52.59 -0.09%
Monster Beverage Corp (MNST) $54.29 -0.09%
Catamaran Corp (CTRX) $48.17 -0.08% |
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| | Broker Tips | | African Barrick Gold: Deutsche Bank ups target from 137p to 145p and maintains a hold recommendation.
African Minerals: Macquarie reduces target from 307p to 280p and reiterates an outperform rating. Deutsche Bank cuts target from 450p to 423p, while its buy recommendation is kept. Investec places its target prev.: 246p under review, while keeping its buy recommendation.
Altitude Group: WH Ireland suspends its forecasts.
Amerisur Resources: Investec shifts target from 71p to 73p and keeps a buy recommendation.
Anglo American: Deutsche Bank lowers target from 840p to 830p leaving its buy recommendation unchanged.
Atkins (WS): Canaccord Genuity increases target from 1100p to 1400p and reiterates a buy recommendation.
Avacta Group: Numis shifts target from 1.40p to 1.70p and stays with its buy recommendation.
BHP Billiton: Deutsche Bank increases target from 2290p to 2500p and maintains a buy recommendation.
Countrywide: Jefferies raises target from 560p to 604p and keeps a buy recommendation.
Crawshaw Group: WH Ireland moves target from 5.50p to 10p and retains its buy recommendation.
Diploma: Jefferies ups target from 690p to 720p and retains a buy recommendation.
Entertainment One: N+1 Singer initiates with a target of 258p and a buy recommendation.
Faroe Petroleum: Panmure Gordon lowers target from 190p to 184p, while its buy recommendation is kept.
Ferrexpo: Macquarie raises target from 155p to 180p upgrading to neutral. Deutsche Bank cuts target from 360p to 338p and retains a buy recommendation.
Fresnillo: Deutsche Bank ups target from 970p to 1000p, while its hold recommendation remains unaltered.
Glencore Xstrata: Deutsche Bank moves target from 379p to 367p, while its buy recommendation is kept.
Hilton Food Group: Investec raises target from 352p to 450p and keeps an add rating.
ICAP: Espirito Santo shifts target from 353p to 356p and reiterates a neutral rating.
Judges Scientific: WH Ireland increases target from 1550p to 1900p and maintains an outperform rating.
Kazakhmys: Westhouse Securities initiates with a target of 345p and an add rating. Deutsche Bank lowers target from 250p to 240p and downgrades to sell.
Keywords Studio: Numis upgrades to buy with a target of 150p.
Ladbrokers: Numis downgrades to add with a target of 210p. Daniel Stewart cuts target from 225p to 200p and reiterates a hold recommendation. Canaccord Genuity reduces target from 220p to 190p and downgrades from buy to hold.
Liontrust Asset Management: N+1 Singer increases target from 230p to 282p maintaining a buy recommendation. Numis lowers target from 261p to 269p, while downgrading to add.
London Mining: Macquarie ups target from 185p to 200p and stays with its outperform rating. Investec raises target from 98p to 130p keeping its hold recommendation.
Mothercare: N+1 Singer upgrades from hold to buy with an unchanged target of 450p.
Mountfield Group: WH Ireland shifts target from 2p to 2.20p keeping a buy recommendation.
Premier Farnell: UBS lowers target from 235p to 225p and reiterates a neutral rating.
Randgold Resources: Deutsche Bank takes target from 4840p to 5050p and maintains its buy recommendation.
REXAM: Bank of America lowers target from 630p to 620p, but still recommends buying.
Rio Tinto: Deutsche Bank raises target from 4300p to 4570p and stays with its buy recommendation.
RPS Group: Panmure Gordon moves target from 295p to 303p maintaining a buy recommendation.
Segro: Panmure Gordon ups target from 270p to 295p, while downgrading from buy to hold.
TUI Travel: Numis upgrades to add with a target of 400p.
Vedanta Resources: Deutsche Bank cuts target from 1205p to 1100p leaving its hold recommendation unaltered.
WANdisco: Panmure Gordon places both its target and its hold recommendation under review. | | |
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