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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | Markets choppy after US data, Putin comments A disappointing US jobs report and comments from Vladimir Putin sparked a choppy end to trade on Friday, resulting in meagre gains on the FTSE 100 as risk appetite was scaled back before the weekend.
The FTSE 100 ended the day up just 14.89 points at 6,547.33, a rise of 0.23%. Still, this was the highest close for London’s benchmark index since August 14th.
After a subdued start, markets rallied strongly after a worse-than-expected gain in American jobs, given increased hopes that the Federal Reserve will delay a potential tapering of monetary stimulus until later this year. Just 169,000 non-farm payrolls were added in August, less than estimates, while figures for July were revised lower. Yet the unemployment rate unexpectedly fell from 7.4% to 7.3% in August, the lowest since December 2008.
“Our best guess is that the cumulative evidence of improvement over the past year will convince a majority of officials that the tapering should begin at the next FOMC meeting in another couple of weeks' time, but we're not going to pretend this is a certainty,” said Chief US Economist Paul Ashworth from Capital Economics.
Following a brief stint in positive territory, stocks sank sharply into the red after Putin said Russia would “assist” Syria if the US attacked, escalating tensions between President Barack Obama and his Russian counterpart as they meet along with other world leaders at the G20 Summit in St Petersburg.
Obama is currently trying to rally for support for the military intervention in Syria following the alleged use of chemical weapons by Bashar Al-Assad’s regime. US Congress is reportedly due to vote on whether or not to attack next week.
“Before the G20 summit, President Obama had just the one country to deal with, but Vladimir Putin has now snookered him by giving his support for the Assad government should a military invasion occur,” said Market Analyst David Madden from IG.
“The US is keen to bring stability to the region, but now Washington will have to smooth things over with Moscow before stepping foot on Syrian soil, and this adds even more uncertainty to the situation,” he said.
FTSE 100: Tullow jumps after Norway discovery
Tullow Oil rose strongly after revealing that the Wisting Central exploration well has made the first-ever oil discovery in the 20%-owned Hoop-Maud Basin in the Barents Sea offshore Norway. The oil and gas explorer said the well, which was drilled to a total depth of 905m and a water depth of 373m, had discovered 50m to 60m of net light oil pay in good quality relatively shallow middle to lower Jurassic reservoir rocks.
Shares in Chile-based copper miner Antofagasta were making gains after analysts at Canaccord Genuity raised their outlook for free cash flow and highlighted the prospect of a special dividend in the new few years.
Airline group easyJet was continuing to recover after heavy falls on Wednesday following a profit warning from sector peer Ryanair. Improved traffic statistics for FTSE 100-listed easyJet yesterday helped the share price to rebound.
Accountancy software group Sage was a heavy faller today after Morgan Stanley downgraded its rating on the stock to 'underweight'.
Engineering and project management company AMEC declined despite scoring a contract with TAQA for work on the Tern oil production platform in the North Sea. |
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| | FTSE 100 - Risers
Tullow Oil (TLW) 1,070.00p +3.58%
Meggitt (MGGT) 545.00p +2.25%
Antofagasta (ANTO) 899.00p +2.04%
Burberry Group (BRBY) 1,600.00p +1.91%
Aberdeen Asset Management (ADN) 370.60p +1.56%
easyJet (EZJ) 1,255.00p +1.54%
SABMiller (SAB) 3,103.00p +1.39%
Sainsbury (J) (SBRY) 393.50p +1.31%
G4S (GFS) 257.70p +1.30%
Imperial Tobacco Group (IMT) 2,261.00p +1.21%
FTSE 100 - Fallers
Sage Group (SGE) 345.80p -1.79%
Fresnillo (FRES) 1,264.00p -1.33%
Randgold Resources Ltd. (RRS) 4,989.00p -1.31%
AstraZeneca (AZN) 3,117.50p -0.83%
Aviva (AV.) 391.00p -0.79%
Legal & General Group (LGEN) 190.70p -0.73%
Standard Life (SL.) 338.00p -0.68%
Eurasian Natural Resources Corp. (ENRC) 226.10p -0.66%
Amec (AMEC) 1,050.00p -0.66%
Petrofac Ltd. (PFC) 1,416.00p -0.63%
FTSE 250 - Risers
Thomas Cook Group (TCG) 147.40p +6.27%
Imagination Technologies Group (IMG) 293.50p +5.08%
Homeserve (HSV) 258.90p +4.48%
ITE Group (ITE) 297.40p +4.31%
Berendsen (BRSN) 933.50p +4.01%
Brown (N.) Group (BWNG) 570.00p +3.54%
Ferrexpo (FXPO) 177.00p +3.27%
Petra Diamonds Ltd.(DI) (PDL) 127.30p +3.08%
Perform Group (PER) 505.00p +3.04%
Polymetal International (POLY) 769.00p +3.01%
FTSE 250 - Fallers
International Public Partnerships Ltd. (INPP) 124.50p -3.19%
Computacenter (CCC) 523.50p -2.70%
NMC Health (NMC) 314.90p -2.51%
Supergroup (SGP) 1,197.00p -2.44%
John Laing Infrastructure Fund Ltd (JLIF) 113.00p -2.42%
3i Infrastructure (3IN) 131.80p -2.30%
BTG (BTG) 376.80p -2.08%
Bovis Homes Group (BVS) 755.00p -1.95%
National Express Group (NEX) 268.40p -1.94%
Centamin (DI) (CEY) 46.10p -1.91% |
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Capital at Risk. |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Stocks rebound as G20 split on Syria intervention FTSE 100: 0.07%
DAX: 0.35%
CAC 40: 0.76%
FTSE MIBL 0.89%
IBEX 35: 0.82%
Stoxx 600: 0.32%
European equities rebounded as the Group of 20 summit remained divided on a strike in Syria and as the US unemployment rate fell.
US President Barack Obama has been trying to gain support for his plan to launch an attack on President Bashar Hafez al-Assad’s government for allegedly using chemical weapons against civilians on August 21st – a claim which Assad denies.
Russia and China, however, warned any action would be illegal unless sanctioned by a United Nations Security Council resolution.
At G20 press conference, Russian President Vladimir Putin said his country would "assist" Syria if attacked.
US ambassador Samantha Power accused Russia of holding the Security Council hostage by blocking resolutions.
The US and France were the only two nations at the G20 summit to commit to intervention in Syria.
The reluctance of lawmakers to support the move has delayed any possible force until next month after the seven-day opening of general debate at the United Nations General Assembly in New York which starts on September 24th. German industrial output, Ireland bailout
German industrial production fell 1.7% in July from June when it rose a revised 2%, the Economy Ministry in Berlin revealed. Economists had predicted a decline of 0.5% in Europe’s largest economy.
German manufacturing output decreased 2.1% in July while construction rose 2.7%, the report also showed.
In France, consumer confidence rose to 84 in August from 82 in July, a touch above market estimates.
Meanwhile, Ireland may need a €10bn bailout to help smooth the transition on its exit from the bailout, according to Irish Finance Minister Michael Noon.
Noon told the Irish Independent that they may need a €10bn (£8.4bn) safety net in the form of a credit line that would only be used in an emergency situation.
EON SE, Sonova
German utility EON SE advanced after a government advisor raised the possibility of limits on subsidies for renewable energy.
Sonova rose after UBS raised its rating on the shares to buy from neutral, citing growth prospects in its hearing-implants business.
Tullow Oil surged after it was revealed that the Wisting Central exploration well had made the first ever oil discovery in the Hoop-Maud Basin in the Barents Sea offshore Norway.
Ericsson advanced after Credit Suisse raised its rating of the shares to ‘outperform’ from ‘neutral’, citing growth in the wireless infrastructure market.
Air France soared as the airline said the number of passengers climbed 3% in August compared to a year ago.
Brent crude rises
Brent crude futures rose $0.877 to $116.280 per barrel on the ICE as the G20 failed to make headway on reaching a consensus on Syria.
The euro fell 0.08% to the 1.3109 US dollar. |
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| | US Market Report | | Reports on Syria spook traders again Dow Jones Industrials: -0.91%
Nasdaq Composite: -1.03%
S&P 500: -0.73%
US stocks have turned noticeably lower, apparently in reaction to reports citing Russian President Vladimir Putin to the effect that he would support Syria in the case of a strike against Syria. The exact context and content of the remarks has yet to be confirmed but at least two large news organisations have run the story.
“One possibility is that a simple Google “search” will bring up many such entries from the last couple of days from media outlets in the non-English speaking world, including quite a few in South America for example,” hence it remains to be seen to whom these reports are being attributed to exactly, comment analysts at Digital Look.
In any case, today’s monthly non-farm payrolls report has come out clearly weaker than expected. Non-farm payrolls rose by 169,000 in August Consensus: 180,000. The previous month's reading has been revised down to show a gain of 104,000, from the original estimate of 162,000.
Also worth pointing out, Chicago Fed President Charles Evans said the US Federal Reserve will begin scaling back its monetary stimulus “later this year” if the economy improves but will keep interest rates near zero for another two years. While he failed to specify what month, and the wording is rather vague, it may fuel speculation that the Fed might not begin trimming its $85bn per month in bond purchases at its September policy meeting.
G20 leaders split on Syria intervention
The Group of 20 leaders summit remained divided on plans for military strikes against Syria on Friday.
US President Barack Obama is trying to gain support on his proposal to intervene in Syria after accusing President Bashar Hafez al-Assad’s government of using chemical weapons against civilians on August 21st.
However, Russia and China said they were unswayed by the US President’s allegations.
Obama’s plea for possible military action may be delayed until next month after the seven-day opening of a general debate at the United Nations General Assembly in New York that starts September 24th.
Apple gains on Japan deal
Apple advanced in early morning trading following news the tech giant is near a final agreement to offer its iPhone through the largest mobile carrier in Japan, NTT DoCoMo Inc.
Infoblox surged as the network and data-services provider reported fourth-quarter earnings that beat analysts’.
Newmont Mining Corp. retreated after Barclays downgraded the stock to ‘equal weight’ from ‘overweight’.
Other asset classes reacting
10-year US Treasury yields are now falling by 9 basis points to the 2.90% level.
Front month West Texas crude futures are up by $1.04 to $109.40 per barrel on the NYMEX as G-20 leaders failed to make head-way on reaching a consensus on Syria.
S&P 500 - Risers
Sears Holdings Corp. (SHLD) $47.96 +6.27%
Fastenal Co. (FAST) $48.60 +6.02%
Boston Scientific Corp. (BSX) $11.57 +5.86%
J.C. Penney Co. Inc. (JCP) $14.22 +5.33%
First Solar Inc. (FSLR) $38.36 +5.18%
Nabors Industries Ltd. (NBR) $16.14 +3.53%
Rowan Companies plc (RDC) $37.18 +3.51%
Broadcom Corp. (BRCM) $26.82 +3.47%
Peabody Energy Corp. (BTU) $18.00 +3.33%
Tenet Healthcare Corp. (THC) $40.68 +3.30%
S&P 500 - Fallers
Newmont Mining Corp. (NEM) $30.30 -4.17%
Sprint Nextel Corporation (S) $6.48 -2.56%
Cabot Oil & Gas Corp. (COG) $38.45 -2.49%
Campbell Soup Co. (CPB) $41.88 -2.42%
H&R Block Inc. (HRB) $27.04 -2.38%
Deere & Co. (DE) $82.55 -2.28%
Kimco Realty Corp. (KIM) $19.83 -2.27%
Teradata Corp. (TDC) $57.51 -2.19%
L Brands Inc (LTD) $56.90 -2.13%
Iron Mountain Inc. (IRM) $25.74 -2.13%
Dow Jones I.A - Risers
Unitedhealth Group Inc. (UNH) $74.04 +0.94%
American Express Co. (AXP) $73.80 +0.90%
E.I. du Pont de Nemours and Co. (DD) $57.61 +0.66%
International Business Machines Corp. (IBM) $184.15 +0.56%
McDonald's Corp. (MCD) $95.66 +0.53%
JP Morgan Chase & Co. (JPM) $52.11 +0.46%
Chevron Corp. (CVX) $121.37 +0.42%
Alcoa Inc. (AA) $7.87 +0.38%
Bank of America Corp. (BAC) $14.37 +0.35%
Walt Disney Co. (DIS) $61.30 +0.31%
Dow Jones I.A - Fallers
Home Depot Inc. (HD) $72.99 -1.55%
AT&T Inc. (T) $33.34 -1.19%
Coca-Cola Co. (KO) $38.24 -0.78%
Caterpillar Inc. (CAT) $82.95 -0.71%
Hewlett-Packard Co. (HPQ) $22.12 -0.67%
Travelers Company Inc. (TRV) $80.66 -0.51%
Exxon Mobil Corp. (XOM) $87.35 -0.47%
Procter & Gamble Co. (PG) $77.14 -0.45%
Merck & Co. Inc. (MRK) $47.51 -0.36%
Pfizer Inc. (PFE) $28.27 -0.35%
Nasdaq 100 - Risers
Sears Holdings Corp. (SHLD) $47.96 +6.27%
Fastenal Co. (FAST) $48.60 +6.02%
Broadcom Corp. (BRCM) $26.82 +3.47%
Sirius XM Radio Inc (SIRI) $3.80 +2.98%
Micron Technology Inc. (MU) $15.17 +2.83%
Costco Wholesale Corp. (COST) $114.62 +2.81%
Facebook Inc. (FB) $42.66 +2.11%
Liberty Media Corporation - Class A (LMCA) $143.88 +1.82%
Sandisk Corp. (SNDK) $57.97 +1.45%
Catamaran Corp (CTRX) $56.09 +1.41%
Nasdaq 100 - Fallers
Randgold Resources Ltd. Ads (GOLD) $77.87 -2.70%
Green Mountain Coffee Roasters Inc. (GMCR) $84.88 -1.65%
Expedia Inc. (EXPE) $48.18 -1.49%
Liberty Global plc Series A (LBTYA) $77.93 -1.49%
Cerner Corp. (CERN) $46.61 -1.44%
Biogen Idec Inc. (BIIB) $227.70 -1.25%
Comcast Corp. (CMCSA) $42.54 -1.21%
Fossil Group Inc (FOSL) $114.50 -1.17%
Microchip Technology Inc. (MCHP) $39.11 -1.16%
Baidu Inc. (BIDU) $132.99 -1.11% |
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| | Broker Tips | | Antofagasta: Canaccord Genuity lowers target from 1035p to 1020p, while leaving its buy recommendation unchanged.
Ashmore Group: Canaccord Genuity downgrades from buy to hold with a target of 380p.
Associated British Foods: Societe Generale upgrades to hold with a target of 1900p.
Bellway: Panmure Gordon takes target from 1327p to 1383p and maintains a hold recommendation.
British American Tabacco: Citi cuts target from 4000p to 3800p, while leaving its buy recommendation unaltered.
BTG: Numis initiates with a target of 350p and a reduce rating.
Diageo: Citi increases target from 1830p to 2320p upgrading from neutral to buy.
Dixons Retail: Alphavalue shifts target from 39.90p to 40.60p, while downgrading from reduce to sell.
EMIS Group: Numis cuts target from 900p to 860p, while leaving its buy recommendation unchanged.
Gable Holdings: Panmure Gordon downgrades from buy to hold with a target of 71p.
Go-Ahead Group: Panmure Gordon raises target from 1500p to 1550p maintaining a hold recommendation.
Howden Joinery: JP Morgan ups target from 299p to 306p and retains an overweight rating.
H&T Group: N+1 Singer reduces target from 290p to 164p, while its buy recommendation remains unchanged.
International Consolidated Airlines Group: Cantor Fitzgerald raises target from 290p to 360p keeping a buy recommendation.
Iomart: Canaccord Genuity ups target from 272p to 300p and maintains a buy recommendation.
Johnson Matthey: Morgan Stanley increases target from 2570p to 2890p reiterating an equal-weight rating.
Kingfisher: Morgan Stanley downgrades to underweight with a target of 300p.
Low&Bonar: N+1 Singer shifts target from 69p to 78p and upgrades to buy.
Man Group: Espirito Santo raises target from 49p to 64p, while staying with its sell recommendation.
Matchtech Group: Numis takes target from 510p to 544p maintaining its buy recommendation.
McBride: Numis cuts target from 140p to 132p downgrading to hold.
Rio Tinto: Goldman Sachs ups target from 2500p to 2550p, but still recommends selling.
Sage Group: Morgan Stanley downgrades to underweight with a target of 320p.
Vodafone: Citi moves target from 230p to 235p and stays with its buy recommendation.
WPP Group: Panmure Gordon increases target from 1250p to 1450p keeping its buy recommendation. | | |
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