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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: Stocks rise on Syria developments, China data Stocks jumped strongly on Tuesday morning following a decent finish on Wall Street the night before on the back of easing concerns about a potential US strike on Syria.
US benchmarks rose by an average 1% on Monday after Russian Foreign Minister Sergei Lavrov urged Syria to place any chemical weapons they may have under international control in an attempt to avoid action from the States.
The news that Syrian counterpart Walid Muallem apparently welcomed the proposal has given investor sentiment a large boost this morning, especially given that President Barack Obama said that he would put air strikes on hold if Bashar al-Assad's government follows the initiative.
Market Analyst Craig Erlam from Alpari said that a US-led military response had looked "inevitable" until now, but reports that Syria has welcomed Russia's suggestion "could be a game changer, although at this stage there has not been confirmation that Assad would approve such a move".
Supporting stocks further this morning was a continuing improvement in economic data from China with the third-quarter outlook for the Asian powerhouse continuing to brighten. Industrial output, fixed-asset investment and retail sales strengthened during the month of August, with all three economic indicators rising by more than expected.
FTSE 100: Miners, airlines jump early on
Mining stocks were benefitting from increased risk appetite this morning despite metals prices taking a hit. Glencore Xstrata was leading the upside on London's blue-chip index after lifting its synergy target - following its merger - to at least $2bn next year as the miner vowed to cut costs and improve operational efficiency.
Resource peers Rio Tinto and Anglo American were also higher early on.
Airline groups IAG and easyJet were flying higher this morning as crude continued to pull back from its recent highs as fears over turmoil in the Middle East ease. Elevated oil prices have pressured both stocks over the last few weeks on concerns over the knock-on effects to jet fuel costs.
Rolls-Royce gained after scoring a $175m contract with Asia Gas Pipeline (AGP) for services on a natural gas pipeline in Kazakhstan.
Leading the downside was Costa and Premier Inn owner Whitbread after seeing sales growth slow down from 13.8% in the first quarter to just 10.8% in the second as the hot summer weather hit demand at its coffee shops.
Drinks giant SABMiller was on the climb this morning after HSBC upgraded the stock to 'overweight', while consumer products group Unilever was lifted by Deutsche Bank to 'buy'.
FTSE 250: Ashmore jumps, Oxford Instruments slumps
Record subscriptions helped emerging markets asset manager Ashmore to drive strong net inflows into its funds in the year to June, giving the share price a boost this morning. Strong net inflows of $13.4bn led to a 22% increase in assets under management (AuM) to $77.4bn during the year, with average AuM rising 13%.
Oxford Instruments was a heavy faller after saying that while growth in the order intake rate in Industrial Products and third party Service is encouraging, slowness in R&D markets in the Western economies means that the year is likely to be more second half-weighted. |
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| | UK Event Calendar | | Tuesday September 10
INTERIMS
Amara Mining, Deltex Medical Group, Hilton Food Group, Netplay TV, OSJC Center for Cargo Container Traffic Transcontainer GDR (Reg S), Quixant, Reach4Entertainment Enterprises, Stadium Group, Surgical Innovations Group
INTERIM DIVIDEND PAYMENT DATE
Fresnillo
QUARTERLY PAYMENT DATE
Canaccord Financial Inc., IBM Corp.
FINALS
Abcam, Ashmore Group, Craneware, ISG
EGMS
JSC Halyk Bank GDR (Reg S)
AGMS
Colefax Group, Datatec Ltd. (DI), M&G High Income Inv Trust Income & Growth Units, M&G High Income Inv Trust Income Shares, Oxford Instruments, Supergroup
UK ECONOMIC ANNOUNCEMENTS
RICS Housing Market Survey (09:30)
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise as China data beats forecasts - China data beats expectations
- Syria tensions ease
- Federal Reserve meeting looms
FTSE 100: 0.72%
DAX: 1.18%
CAC 40: 0.86%
FTSE MIB: 0.17%
IBEX 35: 0.92%
Stoxx 600: 0.81%
European equities jumped as Chinese data beat expectations and fears over an imminent strike in Syria eased.
China's industrial production climbed by 10.4% in August compared to a year ago, beating the forecast for a 9.9% rise.
Retail sales in China increased an annual 13.4% in the month, above market expectations for a 13.2% incline.
The reports pointed to signs the world's second largest economy was recovering after its recent slump.
"China's upswing could not have come at a better time as the market remains highly sensitive to any potential tapering activity by the Federal Reserve," said Ishaq Siddiqi, Market Strategist at ETX Capital.
The US Federal Reserve is mulling over trimming back its $85bn per month in bond purchases.
Economists are mixed on whether the central bank will begin tapering at its next policy meeting on September 17th to 18th, particularly after last Friday's jobs report which showed a fall in the unemployment rate, but a less than expected increase in payrolls.
Aside from the Fed's upcoming meeting, the US has plenty on its agenda at the moment with the Syria turmoil at the top of its list.
Concerns over a military strike in Syria receded after US President Barack Obama said he will delay any action if the Assad regime agreed to place chemical weapons under international control.
Obama said he was prepared to halt plans for military force in Syria, but was unconvinced that Syria would give up control.
His remarks came after Russia recommended that Syria relinquish its chemical weapons in return for avoiding strikes from the US. Syria has welcomed the proposal.
The US has been debating an intervention in Syria after accusing the government of using chemical weapons against civilians on August 21st. Syria President Bashar Hafez al-Assad continues to deny the claims.
Glencore Xstrata lifts synergy target
Glencore Xstrata rallied after the miner lifted its synergy target from its merger and vowed to cut costs.
Banco de Sabadell declined after the Spanish bank said it would initially raise as much as €650m through accelerated bookbuilding.
Man Group advanced as investors speculated over a takeover bid of the investment management business.
Other asset classes slide
The euro fell 0.06% against the 1.3247 US dollar.
Brent crude futures dipped $0.655 to $112.980 per barrel on the ICE. |
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| | US Market Report | | US close: Stocks lifted by M&A, China data - M&A activity boosts sentiment
- Chinese data gives stocks a lift
- September taper looking less likely
Dow Jones: 0.94%
Nasdaq: 1.26%
S&P 500: 1.02%
US markets put in a strong performance on Monday - despite ongoing concerns over Syria weighing on indices across Europe - as heightened merger and acquisition(M&A)activity and decent data from China gave stocks a boost.
Wall Street's three main benchmarks each finished the session around 1% higher with the S&P 500 in particular extending its recent winning streak into the fifth straight day, its longest string of positive sessions since July.
Driving gains today in the States was M&A news as data from Bloomberg showed that the US market is poised for its busiest month of takeovers since July 2007. Some $160bn of M&A involving American companies has been announced since the end of August, according to the news agency, $15bn of which occurred on Monday alone.
Asian data improves
Chinese trade and inflation numbers helped to brighten the third-quarter outlook for the world's second-largest economy. Chinese exports rose by a stronger-than-expected 7.2% in August and imports jumped by 7%, while the annual rate of consumer price inflation eased from 2.7% to 2.6%.
Writing in Monday's Financial Times Chinese Premier Li Keqiang said that his country will stay the course on sustainable growth, by continuing to promote reforms, with an aim of meeting its 7.5% lower bound for gross domestic product (GDP) growth this year.
Second-quarter GDP estimates in Japan were revised higher from 0.6% to 0.9%, as confidence grows in Prime Minister Shinzo Abe's so-called 'Abenomics'. While this was slightly lower than predictions, this data - along with the news that Tokyo will host the 2020 Olympics - gave investors more reasons to be confident about a Japanese recovery.
Fed taper, Syria outcome still uncertain
Friday's disappointing jobs report was likely to be at the back of investors' minds ahead of the Federal Reserve policy meeting later this month, with a September 'taper' now looking a bit uncertain. While the jobless rate inched lower in August to 7.3%, a worse-than-expected rise in non-farm payrolls has now sparked speculation that the US central bank could hold off from scaling back quantitative easing (QE) programme until later on in the year.
"The figures have thrown into doubt something the markets had pretty much priced in, tapering in September," said Market Analyst Craig Erlam from Alpari.
In spite of the strong gains on Wall Street, Syria continues to be in focus this week ahead of a vote by Congress over whether or not to proceed with a military attack after last month's alleged use of chemical weapons by Bashar Al-Assad's regime.
Tensions at the G20 Summit escalated last week after Vladimir Putin said Russia would "assist" Syria if it was attacked by the US, just as President Barack Obama was trying to rally for support from global leaders for an intervention. Nevertheless, Russian Foreign Minister Sergei Lavrov asked Syria on Monday to give up its chemical weapons in an attempt to avoid military strikes from the US.
Apple in focus
Tech giant Apple, the biggest stock on Wall Street by market capitalisation, was making decent gains on Monday ahead of a much-anticipated event on Tuesday where the company is expected to launch the new upgraded model of the iPhone.
Molex, which makes components for Apple's smartphone, was also a high riser after agreeing to a sale to Koch Industries for $7.2bn.
In other M&A news, Ares Management and the Canada Pension Plan Investment Board said they would jointly buy luxury department store Neiman Marcus for $6bn.
Delta Airlines jumped following reports the carrier will replace BMC Software Inc. in the S&P 500 this week, roughly six years after coming out of bankruptcy.
Expedia rallied as the online travel services provider was raised to 'buy' from 'neutral' by Lazard Capital Markets LLC.
S&P 500 - Risers
Molex Inc. (MOLX) $38.63 +31.66%
Sears Holdings Corp. (SHLD) $53.07 +12.79%
PulteGroup Inc. (PHM) $16.63 +7.50%
D. R. Horton Inc. (DHI) $19.28 +6.52%
Cliffs Natural Resources Inc. (CLF) $23.18 +6.09%
Lennar Corp. Class A (LEN) $33.99 +5.40%
Mosaic Company (MOS) $44.31 +5.10%
AutoNation Inc. (AN) $51.45 +4.42%
Masco Corp. (MAS) $20.47 +4.28%
Boston Scientific Corp. (BSX) $11.99 +4.26%
S&P 500 - Fallers
Tenet Healthcare Corp. (THC) $38.39 -3.69%
Marathon Petroleum Corporation (MPC) $69.61 -1.75%
M&T Bank Corp. (MTB) $113.14 -1.60%
Sprint Nextel Corporation (S) $6.37 -1.55%
Tesoro Corp. (TSO) $46.16 -1.33%
Express Scripts Holding Co (ESRX) $64.77 -1.14%
Actavis Inc (ACT) $135.90 -1.08%
Hudson City Bancorp Inc. (HCBK) $9.15 -1.08%
Verizon Communications Inc. (VZ) $45.91 -0.93%
WellPoint Inc. (WLP) $86.71 -0.66%
Dow Jones I.A - Risers
Caterpillar Inc. (CAT) $85.59 +2.64%
Travelers Company Inc. (TRV) $82.19 +2.11%
Alcoa Inc. (AA) $8.08 +2.02%
Microsoft Corp. (MSFT) $31.66 +1.61%
Cisco Systems Inc. (CSCO) $23.92 +1.57%
3M Co. (MMM) $116.74 +1.48%
Procter & Gamble Co. (PG) $78.16 +1.31%
Wal-Mart Stores Inc. (WMT) $73.51 +1.27%
United Technologies Corp. (UTX) $104.48 +1.21%
Home Depot Inc. (HD) $73.58 +1.21%
Dow Jones I.A - Fallers
Verizon Communications Inc. (VZ) $45.91 -0.93%
Hewlett-Packard Co. (HPQ) $22.36 -0.27%
Nasdaq 100 - Risers
Sears Holdings Corp. (SHLD) $53.07 +12.79%
Green Mountain Coffee Roasters Inc. (GMCR) $86.44 +5.23%
Yahoo! Inc. (YHOO) $29.24 +3.80%
Vertex Pharmaceuticals Inc. (VRTX) $81.93 +3.72%
Regeneron Pharmaceuticals Inc. (REGN) $276.80 +3.45%
Mylan Inc. (MYL) $36.49 +3.41%
Akamai Technologies Inc. (AKAM) $48.89 +2.75%
Equinix Inc. (EQIX) $177.26 +2.60%
Gilead Sciences Inc. (GILD) $62.66 +2.52%
Fastenal Co. (FAST) $49.07 +2.46%
Nasdaq 100 - Fallers
Tesla Motors Inc (TSLA) $160.70 -3.76%
Randgold Resources Ltd. Ads (GOLD) $76.40 -1.96%
Express Scripts Holding Co (ESRX) $64.77 -1.14%
Catamaran Corp (CTRX) $55.35 -0.54%
Comcast Corp. (CMCSA) $42.29 -0.44%
Linear Technology Corp. (LLTC) $39.00 -0.31%
eBay Inc. (EBAY) $52.67 -0.30%
Liberty Global plc Series A (LBTYA) $76.78 -0.25%
Sigma-Aldrich Corp. (SIAL) $82.96 -0.18%
Dell Inc. (DELL) $13.84 -0.00% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: Foxtons, AG Barr, Jobs Barack Obama said on Monday that he would put planned air strikes against Syria on hold if the regime of Bashar al-Assad followed a Russian proposal to hand over control of the country's chemical weapons stocks. The US president's comments capped a day of fast-moving diplomatic manoeuvres which appears to have started with a misstatement by US Secretary of State John Kerry and ended with a proposal that could provide a way out from deeply unpopular military action against Syria, the FT reports.
Jaguar Land Rover is to open a new production line in Birmingham that will create another 1,700 British manufacturing jobs. In a direct challenge to its great German rivals BMW, Mercedes-Benz and Audi, the West Midlands car-maker will unveil a new range of sporty mid-sized Jaguars at today's Frankfurt Motor Show, The Times says.
Foxtons has opened an investor road-show to gain support for a stock market debut that could value the London estate agency at more than £550m. The chain is understood to have outlined the price range for its proposed initial public offering at between 190p to 230p a share. This implies a market capitalisation of between £550m and £650m and would propel it into the FTSE 250, The Times reports.
Shale gas production in Britain will fail to reduce energy bills, according to the Energy and Climate Change Secretary, contradicting claims by the Prime Minister that households will save money. In a keynote speech yesterday provocatively entitled The Myths and Realities of Shale Gas Exploration, Ed Davey argued that British shale gas production would be no different to the development of North Sea gas, which had no impact on energy prices for consumers once it came on stream in the 1970s, The Times writes.
Britain is set for a 'game-changing year' for jobs as the economic recovery picks up pace, according to a report published today. Recruitment group Manpower said 2013 is on course to be the best year for job creation in the UK since 2007 as businesses take on new staff. It came just a day after George Osborne declared that 'Britain is turning a corner,' according to The Times.
The City expects Irn-Bru maker AG Barr to pursue other acquisitions after Japanese drinks giant Suntory yesterday scooped up the Lucozade and Ribena brands for £1.35 bn. The Cumbernauld-based firm had not publicly stated that it was interested in buying the brands from GlaxoSmithKline (GSK), Britain's biggest drugs maker, but The Scotsman has learned that it did speak to the group, The Scotsman explains.
Britain's economic growth will be limited to just 1% in the longer term as higher government spending, dwindling North Sea oil stocks and an ageing population all take their toll on the country's potential output, the Institute of Economic Affairs [IEA] has warned has warned. Tempering the recent spate of upbeat news on the UK and Chancellor George Osborne's assertion that the economy has "turned a corner", a new paper predicts a post-crisis era of sluggish growth, The Guardian says. | | |
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