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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | Potential strike on Syria worries investors early on Stocks declined on Wednesday morning on concerns over an imminent Western military intervention in Syria, with investors also choosing to scale back positions ahead of a number of 'risk events' later on in the week.
The Senate Foreign Relations Committee last night gave the green light on a US attack on Syria, saying that the use of force "reflects the will and concerns of Democrats and Republicans alike".
The backing of the Committee "reminded investors that the potential for war is still lurking", according to Financial Trader Shavaz Dhalla from Spreadex.
This comes ahead of the crucial vote in Congress next week on President Barack Obama's call for action against the Bashar al-Assad regime which he claims is responsible for the deadly chemical weapons attack against the Syrian people in August.
Dhalla said: "Many now believe that if a strike is approved, this would likely occur in a much smaller scale and involve a fewer number of countries than initially expected. Despite this, the possible legal repercussions from Syria’s allies, which include China and Russia, if the strike does happen without UN approval is still troubling investors."
Traders will also be cautious today ahead of three central-bank meetings tomorrow from the Bank of Japan, Bank of England and the European Central Bank.
These will be followed by the all-important US jobs report on Friday which will be a large factor in the Federal Reserve's decision on whether or not to adjust current stimulus measures later this month.
FTSE 100: Airline stocks sink after Ryanair profit warning
Airline peers easyJet and IAG were flying lower this morning after a gloomy outlook by Ryanair on the back of the hot weather in Northern Europe over the summer. The company scaled back its full-year profit guidance after worse-than-expected bookings but said that it could even fail to meet these forecasts if fares and yields continue to weaken over the coming winter.
Hargreaves Lansdown fell despite reporting record annual figures this morning. Full-year pre-tax profit rose 28% to £195.2m as the financial services company took on more clients and increased assets under administration by 38% rise in AuA to £36.4bn. Weighing on the price this morning could be Morgan Stanley's downgrade of the 'Diversified Financial' sector to 'neutral'.
TUI Travel, Resolution and BHP Billiton were also heavy fallers this morning after going ex-dividend, meaning that from today new investors won't be able to get their hands on their latest dividend payments. Others that went ex-dividend on the blue-chip index include Admiral, Aggreko, ARM Holdings, IMI, Land Securities, Serco Group and Shire.
Chemicals group Croda International also went ex-div today but was trading higher after Exane BNP Paribas upgraded its rating on the stock to 'outperform'.
British Land fell after saying it is set to purchase 50% of 430,000 square-foot SouthGate retail space in Bath by paying current owner Multi Southgate £101m.
FTSE 250: Phoenix lower after going ex-div
Closed life and pension fund consolidator Phoenix was the worst performer this morning after going ex-dividend. A host of others were also trading without the rights to their latest payouts, including 888 Holdings, Betfair, Elementis, esure, Greggs, Hikma Pharmaceuticals, Jardine Lloyd Thompson, Michael Page International, Micro Focus International, National Express Group, Polymetal International, Regus, SEGRO and Xaar.
Ashtead Group rose after the equipment rental company booked a 24% increase in first-quarter revenue amid strong demand and a tight control on costs. It now expects a full-year result ahead of previous expectations.
Kenmare Resources was higher after Goldman raised its recommendation to 'conviction buy', while Salamander Energy was boosted by a Morgan Stanley upgrade to 'equalweight'. |
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| | FTSE 100 - Risers
Vodafone Group (VOD) 206.30p +1.88%
Fresnillo (FRES) 1,295.00p +1.33%
Experian (EXPN) 1,147.00p +1.15%
HSBC Holdings (HSBA) 691.50p +0.57%
BG Group (BG.) 1,252.50p +0.44%
Shire Plc (SHP) 2,396.00p +0.38%
Petrofac Ltd. (PFC) 1,401.00p +0.36%
Serco Group (SRP) 551.50p +0.27%
Johnson Matthey (JMAT) 2,924.00p +0.24%
WPP (WPP) 1,236.00p +0.24%
FTSE 100 - Fallers
easyJet (EZJ) 1,190.00p -7.03%
International Consolidated Airlines Group SA (CDI) (IAG) 282.60p -4.11%
Resolution Ltd. (RSL) 312.20p -4.06%
TUI Travel (TT.) 333.50p -3.53%
Hargreaves Lansdown (HL.) 998.00p -3.20%
BHP Billiton (BLT) 1,887.50p -2.51%
William Hill (WMH) 405.90p -2.17%
Carnival (CCL) 2,339.00p -1.93%
Persimmon (PSN) 1,121.00p -1.84%
Associated British Foods (ABF) 1,867.00p -1.79%
FTSE 250 - Risers
Bumi (BUMI) 220.50p +5.65%
Kenmare Resources (KMR) 28.30p +4.04%
UK Commercial Property Trust (UKCM) 76.45p +1.80%
Salamander Energy (SMDR) 131.40p +1.78%
JPMorgan Indian Inv Trust (JII) 294.60p +1.73%
Fisher (James) & Sons (FSJ) 1,109.00p +1.46%
Big Yellow Group (BYG) 414.40p +1.44%
F&C Commercial Property Trust Ltd. (FCPT) 115.50p +1.32%
Daejan Holdings (DJAN) 3,818.00p +1.14%
Dixons Retail (DXNS) 44.67p +1.11%
FTSE 250 - Fallers
Phoenix Group Holdings (DI) (PHNX) 713.50p -5.50%
Thomas Cook Group (TCG) 137.00p -3.93%
Micro Focus International (MCRO) 741.50p -3.76%
Barratt Developments (BDEV) 305.20p -3.11%
Menzies(John) (MNZS) 770.00p -3.02%
Mitchells & Butlers (MAB) 434.00p -2.95%
Taylor Wimpey (TW.) 100.10p -2.91%
Carillion (CLLN) 283.80p -2.64%
Ashtead Group (AHT) 669.50p -2.62%
Amlin (AML) 380.30p -2.46% |
| | UK Event Calendar | | FINALS
A&J Mucklow Group, Hargreaves Lansdown
Q1
Ashtead Group
INTERIMS
Abbey Protection, Smart Metering Systems, SQS Software Quality Systems AG, Staffline Group
INTERIM DIVIDEND PAYMENT DATE
Man Group
INTERIM EX-DIVIDEND DATE
888 Holdings, Aggreko, Amino Technologies, Amlin, Arbuthnot Banking Group, ARM Holdings, Avesco Group, Baronsmead VCT 3, Baronsmead VCT 4, Baronsmead VCT 5, Camellia, Capital & Regional, Carillion, Churchill China, Cineworld Group, Croda International, Elementis, esure Group, FBD Holdings, Grafton Group Units, Greggs, Hellermanntyton Group, Hikma Pharmaceuticals, Holders Technology, IMI, Jardine Lloyd Thompson Group, John Laing Infrastructure Fund Ltd, JPMorgan American Inv Trust, Lavendon Group, Macfarlane Group, Maven Income & Growth 4 VCT, Michael Page International, National Express Group, North Midland Construction, Novae Group, Paddy Power, Phoenix Group Holdings (DI), Plus500 Ltd (DI), Polymetal International, Portmeirion Group, Regus, Resolution Ltd., Robert Walters, SEGRO, Serco Group, Shire Plc, TUI Travel, Xaar
QUARTERLY PAYMENT DATE
Unilever
QUARTERLY EX-DIVIDEND DATE
British Assets Trust, Land Securities Group
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Federal Reserve’s Beige book released (US) (19:00)
Trade balance (US) (13:30)
Monthly vehicle sales (US) (22:00)
Eurozone final services PMI (EZ) (10:00)
Eurozone final Q2 GDP (EZ) (10:00)
Eurozone retail sales (EZ) (10:00)
SPECIAL EX-DIVIDEND PAYMENT DATE
Admiral Group, Goodwin Plc, Miton Income Opportunities Trust
AGMS
Ashtead Group
FINAL EX-DIVIDEND DATE
ACM Shipping Group, Avarae Global Coins, Betfair Group, BHP Billiton, Downing Distribution VCT 1, Downing Income VCT 3, Downing Income VCT 3 E Shs, Mattioli Woods, Micro Focus International, Mid Wynd International Inv Trust, Pinewood Shepperton, Victoria, Volex
UK ECONOMIC ANNOUNCEMENTS
BRC Shop price index (00:01)
Markit Services PMI (09:28) |
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Capital at Risk. |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Congress backing for Syria strike rattles stocks FTSE 100: -0.29%
DAX: -0.14%
CAC 40: -0.34
FTSE MIB: -0.79%
IBEX 35: -0.46%
Stoxx 600: -0.19
European equities slumped ahead of the release of a report on economic growth in the Eurozone and as Syria tensions continued to rise.
Gross domestic product for the second quarter in 17-nation euro area is expected to show a 0.3% rise on the quarter and a 0.7% fall on the year.
A separate report is anticipated to show Eurozone retail sales dropped 0.3% in July after a decline of 0.09% in June.
Also moving markets in early morning trading was news that US President Obama secured the backing on Tuesday of Republican and Democratic leaders in the House for a military attack on Syria.
Speaker John A. Boehner and House majority leader, Representative Eric Cantor of Virginia said they would support the president’s call to action.
It set the stage for wider approval in Congress when they vote on September 9th on whether to punish President Bashar al-Assad’s government which is accused of using chemical weapons against civilians on August 21st.
Russian President Vladimir Putin warned the US and its allies against taking one-sided action in Syria, saying any military strike without United Nations approval would be an “aggression”.
Possible legal repercussions from Syria’s allies Russia and China is troubling investors, according to Spreadex Financial Trader, Shavaz Dhalla.
“Thus, investors should look out for any signs of volatility until at least the September 9th when the US congress reconvenes and the markets receive more information as to officials’ intentions towards Syria,” Dhalla added.
Fed’s Beige Book
The Federal Reserve’s Beige Book will be unveiled ahead of the central bank’s highly anticipated September 17th to 18th policy meeting.
The book, a report in which each Federal Reserve bank gathers anecdotal information on current economic conditions in its district, should provide some insight as to where policymakers feel America’s financial state stands.
The Fed is expected to start reducing its $85bn per month in bond purchases at its meeting this month and has been turning to data for indicators of economic improvement.
The US trade balance will also be released later Wednesday and is tipped to show the deficit came in at $38.6bn in July compared to $34.2bn a month earlier.
In the meantime, Markit's UK Services purchasing managers' index will come in at 59 for August, down from 60.2 the previous month, according to forecasts. A reading above 50 signals expansion.
Ryanair lowers annual forecast
Ryanair’s shares plunged after the budget airline said full-year profit would be at the lower end of its forecast range of €570m to €600m.
French bank Credit Agricole declined after saying it had begun the sale of its remaining 7.6% stake in Spain's Bankinter.
Vodafone surged after selling its 45% stake in Verizon Wireless to US telecoms group Verizon Communications in one of the biggest deals in corporate history.
Telecom Italia dipped following reports core investors are seeking to sell their stakes, which could leave the Italy's largest telecom operator open to a takeover bid.
Brent crude slips
Brent crude futures fell $0.069 to $115.600 per barrel on the ICE.
The euro was up 0.02% to the 1.3172 US dollar. |
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| | US Market Report | | Stocks rise as economic data offsets Syria concerns Dow Jones: 0.16%
Nasdaq: 0.63%
S&P 500: 0.42%
Stocks finished with moderate gains on Tuesday as concerns about an impending US military strike against Syria were offset by better-than-expected economic data.
Reports of two ballistic missiles being fired in the Eastern Mediterranean, though later confirmed as a missile test by Israeli forces training with the US Navy, rattled equity markets across the globe early on.
This came ahead of the crucial vote in Congress next week on whether President Barack Obama will be supported in his call for action against the Bashar al-Assad regime which he claims is responsible for the deadly chemical weapons attack against the Syrian people in August.
Congress is reportedly split on whether to intervene in Syria. Should lawmakers deny Obama’s request for force in Syria it would be the first time Congress had rejected a president’s appeal for military action.
However, Speaker of the House and Ohio Republican John Boehner showed his support for Obama’s call for action, saying that the US should “warn others around the world that this type of behaviour is not going to be tolerated”. Republican Senator John McCain has also said he is in favour of an attack.
ISM manufacturing data beats forecasts
Data from the US came in ahead of expectations this afternoon with the closely-watched ISM manufacturing index rising from 55.4 to 55.7 in August (forecast; 54). Amna Asaf from Capital Economics said: “clearly this is the sort of the news that could prompt the Fed to begin tapering its monthly asset purchases later this month.”
The Markit purchasing managers' index (PMI) for US manufacturing activity however failed to meet forecasts, falling from 53.9 to 53.1 in August (forecast: 54) though "the short history of the Markit PMI limits its usefulness for forecasting", according to analyst Cooper Howes from Barclays.
In other news, US construction spending for July increased by 0.6% after a revised no change in June forecast: +0.4%.
Economic indicators from the States will be in focus over the next two weeks ahead of the Federal Open Market Committee meeting on September 17-18th with policymakers widely expected to announce that they will begin scaling back stimulus.
The all-important monthly employment report in Friday will be likely be the main event this week after Fed Chairman Ben Bernanke said back in May that he was eyeing an improvement in the labour market specifically before making an adjustment to the quantitative easing programme. The consensus forecast is for a 180,000 increase in non-farm payrolls in August, up from the 162,000 gain registered in July.
Microsoft slumps after Nokia mobile purchase
Microsoft’s shares fell as the US tech giant agreed to buy Nokia’s struggling mobile-phone business for €5.44bn, paying €3.79bn for its devices and €1.65bn for its patents.
Stephen Elop, who ran Microsoft's business software division before joining Nokia in 2010, will return to the US tech giant as head of its mobile devices business. Elop is being considered as a potential candidate to replace Microsoft’s departing Chief Executive Officer, Steve Ballmer who will leave sometime in the next 12 months.
Citigroup advanced following reports the US bank sold more than $6bn in private-equity and hedge-fund assets in the past month.
Verizon Communications also declined after confirming yesterday that it will buy out Vodafone’s stake in their joint venture Verizon Wireless for $130bn in cash and shares.
Broadcaster CBS rose strongly after reaching a new rights agreement with Time Warner Cable ending a one-month blackout.
S&P 500 - Risers
Regeneron Pharmaceuticals Inc. (REGN) $259.15 +6.95%
CBS Corp. (CBS) $53.50 +4.70%
Biogen Idec Inc. (BIIB) $221.79 +4.12%
E * TRADE Financial Corp. (ETFC) $14.54 +3.56%
Micron Technology Inc. (MU) $14.01 +3.24%
Coca-Cola Enterprises Inc. (CCE) $38.54 +3.05%
Boston Scientific Corp. (BSX) $10.90 +3.02%
Freeport-McMoRan Copper & Gold Inc. (FCX) $31.12 +2.98%
Juniper Networks Inc. (JNPR) $19.45 +2.91%
Mastercard Inc. (MA) $623.45 +2.87%
S&P 500 - Fallers
Murphy Oil Corp. (MUR) $59.80 -11.30%
Monster Beverage Corp (MNST) $54.02 -5.87%
Microsoft Corp. (MSFT) $31.88 -4.55%
Verizon Communications Inc. (VZ) $46.01 -2.89%
Integrys Energy Group Inc. (TEG) $54.59 -2.38%
Family Dollar Stores Inc. (FDO) $69.53 -2.33%
Pinnacle West Capital Corp. (PNW) $53.12 -2.12%
Ensco Plc. (ESV) $54.47 -1.96%
Pepco Holdings Inc. (POM) $18.60 -1.80%
Adt Corp (ADT) $39.14 -1.73%
Dow Jones I.A - Risers
United Technologies Corp. (UTX) $102.66 +2.56%
JP Morgan Chase & Co. (JPM) $51.13 +1.19%
Unitedhealth Group Inc. (UNH) $72.56 +1.14%
Boeing Co. (BA) $105.01 +1.05%
International Business Machines Corp. (IBM) $183.96 +0.93%
Bank of America Corp. (BAC) $14.25 +0.92%
Travelers Company Inc. (TRV) $80.57 +0.84%
Cisco Systems Inc. (CSCO) $23.48 +0.73%
American Express Co. (AXP) $72.43 +0.72%
Intel Corp. (INTC) $22.07 +0.40%
Dow Jones I.A - Fallers
Microsoft Corp. (MSFT) $31.88 -4.55%
Verizon Communications Inc. (VZ) $46.01 -2.89%
AT&T Inc. (T) $33.32 -1.51%
Home Depot Inc. (HD) $73.90 -0.79%
Coca-Cola Co. (KO) $37.90 -0.73%
Pfizer Inc. (PFE) $28.01 -0.71%
Wal-Mart Stores Inc. (WMT) $72.68 -0.41%
E.I. du Pont de Nemours and Co. (DD) $56.39 -0.41%
General Electric Co. (GE) $23.06 -0.35%
3M Co. (MMM) $113.22 -0.32%
Nasdaq 100 - Risers
Regeneron Pharmaceuticals Inc. (REGN) $259.15 +6.95%
Biogen Idec Inc. (BIIB) $221.79 +4.12%
Activision Blizzard Inc. (ATVI) $16.98 +4.04%
Micron Technology Inc. (MU) $14.01 +3.24%
Liberty Media Corporation - Class A (LMCA) $140.36 +2.84%
Amazon.Com Inc. (AMZN) $288.80 +2.78%
Xilinx Inc. (XLNX) $44.62 +2.76%
Yahoo! Inc. (YHOO) $27.78 +2.43%
Fastenal Co. (FAST) $45.00 +2.30%
Alexion Pharmaceuticals Inc. (ALXN) $110.17 +2.24%
Nasdaq 100 - Fallers
Monster Beverage Corp (MNST) $54.02 -5.87%
Microsoft Corp. (MSFT) $31.88 -4.55%
Fossil Group Inc (FOSL) $114.18 -1.69%
Green Mountain Coffee Roasters Inc. (GMCR) $85.16 -1.33%
Vodafone Group Plc ADS (VOD) $32.01 -1.05%
Stericycle Inc. (SRCL) $111.56 -0.89%
Staples Inc. (SPLS) $13.83 -0.58%
Avago Technologies Ltd. (AVGO) $38.35 -0.42%
Catamaran Corp (CTRX) $54.70 -0.38%
Intuitive Surgical Inc. (ISRG) $385.17 -0.35% |
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| | Wednesday newspaper round-up | | MPC, Syria, Cuadrilla Mark Carney’s guidance policy has come under fire from several members of The Times Shadow Monetary Policy Committee, with one warning of the risks of a fresh housing bubble. Four of the nine members raised questions about the Bank of England’s pledge to keep rates at the rock-bottom level of 0.5 per cent as long as unemployment remains above 7 per cent, that same newspaper says.
Leading Democratic and Republican senators have reached a deal on a motion authorising an attack on Syria, adding momentum to US President Barack Obama’s risky push for congressional approval for military action. The resolution, agreed by Bob Menendez, the Democratic chair of the Senate Foreign Relations Committee, and Bob Corker, the senior Republican on the committee, set a 60-day deadline for military action, with a possible 30-day extension, the Financial Times writes.
About 80,000 gold miners in South Africa walked out on strike on Tuesday night, raising fears of renewed violence in the crisis-hit industry and underlining the goverment's dwindling authority. President Jacob Zuma admitted that he could only plead with companies and unions to find a peaceful solution and avoid seriously damaging the economy, already hit by sluggish growth and a contagion of strikes in other sectors, The Guardian reports.
Supergroup, the high street fashion retailer, faces a battle with investors after Pensions & Investment Research Consultants Pirc advised members to reject its remuneration report at the annual meeting on September 10th. The shareholder group, whose members control assets in excess of £1.5trn, has warned that the performance conditions of Supergroup’s long-term incentive plan “are not considered sufficiently challenging,” The Daily Telegraph explains.
Sterling raced to a three-and-a-half month high against the euro yesterday as the economic recovery gathered pace. The pound soared to as high as €1.1838 – a level not seen since May – after figures showed the construction industry growing at its fastest pace for six years, The Daily Mail points out.
Cuadrilla's attempts to drill for oil in West Sussex have suffered a fresh setback after it was forced to re-apply for planning permission, admitting its current application may not comply with regulations. The current authorisation expires at the end of September and a fresh application to remove any potential legal ambiguities does run a certain risk of adding several months of delays to further work at the site, according to The Daily Telegraph. | | |
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