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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 fall as investors await US non-farm payrolls Stocks opened broadly lower on Friday morning with investors refraining from building positions ahead of the all-important US jobs report due out this afternoon, seen as a deciding factor in the Federal Reserve's impending withdrawal of stimulus.
US data released Thursday threw more weight behind the argument to begin tapering asset purchases at the Fed's next meeting later this month - jobless claims fell more than forecasts, factory orders declined less than expected and the ISM non-manufacturing index smashed estimates.
However, given that the Fed has explicitly called for an improvement in labour-market conditions before it begins to scale back quantitative easing, analysts will be watching the August employment report - due out on later this afternoon - very carefully.
Consensus estimates are for a 180,000 increase in non-farm payrolls last month, up from the 162,000 gain in July. The unemployment rate is expected to remain unchanged at 7.4%, though this has already fallen speedily from 7.9% in January.
"As is usually the case with nonfarm payroll day it's all about the big figure and what effect it'll have on the financial markets," said Chief Economist Simon Smith from FxPro.
"The USD has been attracting some buyers over the past couple of weeks, some looking to get into the currency for safe-haven reasons, but others because the expectations of tapering have been augmented following the good run of economic data we've seen."
The G20 meeting in St Petersburg continues today and will no doubt also be at the back of investors' minds given that the hot topic amongst world leaders is the potential US military intervention in Syria following last month's alleged chemical weapons attack. "With the US senate moving forward on US unification on Syria the outcome of G20 is likely to cause high volatility today," said Financial Sales Trader Alex Conroy from Spreadex.
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.
B&Q and Screwfix owner Kingfisher was in the red early on after Morgan Stanley downgraded the stock ahead of its first-half results due next Wednesday. The US bank cut its rating to 'underweight' but left its 300p target unchanged.
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.
Airline group easyJet and IAG were continuing to recover after heavy falls on Wednesday following a profit warning from sector peer Ryanair. Improved traffic statistics for both FTSE 100-listed stocks over recent days have helped share prices to rebound.
A host of miners were trading lower as risk appetite was scaled back ahead of the US data later on. Anglo American, Fresnillo, ENRC, BHP Billiton and Randgold Resources were all in the red this morning. |
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| | FTSE 100 - Risers
Tullow Oil (TLW) 1,052.00p +1.84%
Diageo (DGE) 2,004.50p +1.37%
easyJet (EZJ) 1,249.00p +1.05%
Associated British Foods (ABF) 1,847.00p +0.98%
Meggitt (MGGT) 538.00p +0.94%
International Consolidated Airlines Group SA (CDI) (IAG) 301.50p +0.70%
Tesco (TSCO) 369.75p +0.69%
Hammerson (HMSO) 490.80p +0.57%
National Grid (NG.) 742.50p +0.54%
Rexam (REX) 501.00p +0.50%
FTSE 100 - Fallers
Anglo American (AAL) 1,543.00p -1.78%
Fresnillo (FRES) 1,260.00p -1.64%
Sage Group (SGE) 346.90p -1.48%
Randgold Resources Ltd. (RRS) 4,986.00p -1.36%
Kingfisher (KGF) 400.60p -1.28%
ITV (ITV) 172.40p -1.26%
Aviva (AV.) 389.30p -1.22%
GKN (GKN) 342.50p -1.18%
Rio Tinto (RIO) 3,068.50p -0.97%
BHP Billiton (BLT) 1,894.00p -0.97%
FTSE 250 - Risers
Thomas Cook Group (TCG) 144.00p +3.82%
Lancashire Holdings Limited (LRE) 758.50p +2.85%
BH Macro Ltd. EUR Shares (BHME) € 21.00 +1.84%
Bwin.party Digital Entertainment (BPTY) 113.80p +1.70%
TR Property Inv Trust (TRY) 209.30p +1.36%
Galliford Try (GFRD) 1,027.00p +1.18%
Carpetright (CPR) 669.50p +1.13%
Synthomer (SYNT) 231.90p +1.13%
Enterprise Inns (ETI) 145.00p +1.12%
Worldwide Healthcare Trust (WWH) 1,138.00p +1.07%
FTSE 250 - Fallers
John Laing Infrastructure Fund Ltd (JLIF) 113.10p -2.33%
Imagination Technologies Group (IMG) 273.20p -2.18%
Kazakhmys (KAZ) 308.50p -2.03%
African Barrick Gold (ABG) 182.60p -1.99%
Computacenter (CCC) 527.50p -1.95%
Tullett Prebon (TLPR) 375.00p -1.94%
NMC Health (NMC) 317.00p -1.86%
Oxford Instruments (OXIG) 1,502.00p -1.64%
Lonmin (LMI) 336.20p -1.64%
Polymetal International (POLY) 735.00p -1.54% UK Event Calendar INTERIMS
Belgravium Technologies, EMIS Group
IMS
SThree
INTERIM DIVIDEND PAYMENT DATE
Arden Partners. Avon Rubber. BG Group. Blackrock Income And Growth Investment Trust, Countrywide, CSR. Dialight. Domino's Pizza Group. Fenner. Porvair, Sherborne Investors (Guernsey) 'B' (Reg S)
QUARTERLY PAYMENT DATE
Barclays, Carnival, Energy XXI (Bermuda) (Di)
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Non-farm payrolls (US) (13:30)
Unemployment rate (US) (13:30)
Average hourly earnings (US) (13:30)
Average weekly hours (US) (13:30)
Speech President Kansas City Fed (US) (19:30)
Speech President Chicago Fed (US) (14:00)
German industrial production (EU) (11:00)
GMS
Powerhouse Energy Group
AGMS
Centurion Resources, Circle Oil, DQ Entertainment, Hayward Tyler Group, Latchways
EGMS
X5 Retail Group NV GDR (Reg S)
FINAL DIVIDEND PAYMENT DATE
Accumuli, Ashtead Group, Cranswick, QinetiQ Group, RPC Group
SPECIAL DIVIDEND PAYMENT DATE
JPMorgan Asian Inv Trust
QUARTERLY PAYMENT DATE
Boeing Co, M Winkworth
UK ECONOMIC ANNOUNCEMENTS
Industrial output (09:30)
Manufacturing output (09:30)
Visible trade balance (09:30) |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks mixed ahead of US payrolls report - US payrolls report in focus
- G20 leaders discuss global economy, Syria
FTSE 100: -0.07%
DAX: -0.22
CAC 40: -0.13%
FTSE MIBL -0.14
IBEX 35: 0.08%
Stoxx 600: -0.03
European equities were little changed ahead of a US payrolls report as the Federal Reserve's policy meeting looms.
The report is expected to show employers increased payrolls by 180,000 in August, compared with 162,000 in July. The unemployment rate is forecast to remain unchanged at 7.4%.
The Fed has said it will maintain its low interest rates at least until the unemployment rate falls to 6.5%, as long as the inflation outlook remains below 2.5%.
The central bank is also weighing up whether to being scaling back its $85bn per month in bond purchases based on how the jobs market and economy is recovering.
Economists are split of whether tapering will start at the Fed's next policy meeting on September 17th-18th.
G20 leaders tackle threats to global economy
The reduction in quantitative easing was expected to dominate the Group of 20 (G20) summit in Russia as leaders of the world's biggest economies tackled the threats to the global economy.
Leaders vowed on Thursday in St. Petersburg to create a $100bn pool of currency reserves to guard against future shocks.
The Syria conflict was discussed, with Chinese and Italian officials warning that military intervention would risk hurting the economy. G20 leaders were divided over the Syrian turmoil as they entered the final day of the meeting.
US President Barack Obama has proposed a military strike in Syria after accusing President Bashar Hafez al-Assad's government of using chemical weapons against civilians. Congress is due to vote next week.
Ericsson, Air France
Ericsson advanced after Credit Suisse raised its rating of the shares to 'outperform' from 'neutral', citing growth in the wireless infrastructure market.
Air France rallied as the airline said the number of passengers rose 3% in August compared to a year ago.
ProSiebenSat.1 declined after TMG said late yesterday it sold its entire 6% stake in the German company to institutions.
DEUTZ slumped as the German engine manufacturer placed 10.2m of shares. |
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| | US Market Report | | US close: Stocks rise but upside limited ahead of jobs report - US data mostly beat expectations
- Markets gearing up for jobs report on Friday
- Treasury yields at two-year high
Dow Jones: 0.04%
Nasdaq: 0.27%
S&P 500: 0.12%
US indices finished in positive territory on Thursday after a list of better-than-expected economic data, but gains were trimmed by the close as investors turned nervous ahead of the all-important jobs report on Friday.
Meanwhile, benchmark US 10-year Treasury yields climbed above the psychological threshold of 3% on Thursday, rising as high as 3.005%. It settled around 2.997% as Wall Street closed, up 9.5 basis points on the day and its steepest level since July 2011.
US data released Thursday supported the call for the Federal Reserve to begin tapering asset purchases at its next meeting later this month - jobless claims fell more than forecasts, factory orders declined less than expected and the ISM non-manufacturing index smashed estimates.
However, given that the Fed has explicitly said that the labour market is a key factor in its decision, analysts will be watching the August employment report - due out on Friday afternoon - very carefully.
Consensus estimates are for a 180,000 increase in non-farm payrolls last month, up from the 162,000 gain in July. The unemployment rate is expected to remain unchanged at 7.4%, though this has already fallen speedily from 7.9% in January.
Thursday was also a busy day for equity markets worldwide with a host of central-bank policy decisions to digest - the Bank of Japan, Bank of England and European Central Bank (ECB) all decided to keep interest rates on hold and current stimulus measures in place.
Meanwhile, the G20 meeting which began in St Petersburg was likely on the back of investors' minds, given that a potential US military strike in Syria is expected to be the hot topic amongst world leaders. Michael Hewson, Senior Market Analyst at CMC Markets, said: "while there may not be much in the way of fireworks we could well see a lot of tension, given the opposing views of the US and Russia, over the rationale for any type of intervention."
Market chatter swirls around Yahoo
Internet group Yahoo edged higher after 'market chatter' suggested that activist investor Bill Ackman may be looking to purchase a big stake in the company.
Discount voucher group Groupon was a high riser after Morgan Stanley upgraded its rating for the stock from 'equalweight' to 'overweight'.
Louisiana-Pacific surged after the building materials firm agreed to buy Ainsworth Lumber for $863m in cash and stock.
Sector peer Fastenal, the construction supplies retailer, also jumped after reporting strong sales for August.
Service sector activity at multi-year highs, ISM says
The non-manufacturing ISM index rose to 58.6% last month, up 2.6 percentage points (pp) from 56% in July. The consensus forecast was for a slight fall to 55%. ISM said this was the highest level seen since the survey's inception in January 2008.
Monthly retail sales rose by 3.7% year-on-year in August, according to ICSC.
Factory orders fell by 2.4% month-on-month in July, down from a 1.6% gain the month before but less than the 3.4% fall predicted.
Initial weekly unemployment claims dropped by 9,000 to 323,000 in the seven days ending on August 31st (forecast: 330,000).
Labour productivity growth was revised higher to 2.3% pace in the second quarter (Consensus: 1.6%).
Companies announced 50,462 lay-offs in August, consultancy Challenger reported.
The ADP employment report, seen as a rough guide to Friday's official data, showed that the US private sector created 176,000 jobs in August, slightly below the 184,000 increase expected. Previous month's data was revised slightly lower.
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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Authorised and regulated by the Financial Conduct Authority No.475285 | |
| | Newspaper Round Up | | Friday newspaper round-up: North Sea, Glaxo, Wonga Government borrowing costs in the US and Europe surged as investors became more optimistic that the developed world has embarked on a period of sustained and rapid growth and anticipated that central banks will increase interest rates earlier than previously thought. Yields on sovereign debt, which move inversely to prices, broke above key levels in Europe and the US, even after Mario Draghi, the European Central Bank president, warned about the fragility of the Eurozone's nascent economic recovery, the FT writes.
An extensive programme of repairs could be needed across North Sea oil and gas operations in light of emerging evidence of causes of last year's Elgin gas leak, experts have warned. A corrosive drilling fluid may have been to blame for the leak at the Total-operated platform, which went on for a month and a half before being stopped and contributed to a slump in North Sea production last year, according to The Daily Telegraph.
Rolls-Royce will help Russia's state-controlled nuclear energy group build its reactors in Britain as the Government casts its net ever wider to gets its stalled nuclear programme off the ground. Rosatom, which was formed out of the Soviet ministry responsible for the Chernobyl nuclear disaster, has hired the engineer to advise on getting its technology licensed by British regulators, The Times reports.
Speaking at the CBI Scotland annual dinner in Glasgow, the BT chairman said he remains unconvinced that independence would be a good economic move for the Scottish. "The CBI is not convinced of the economic case for independence and has asked some important questions of the Scottish Government," Sir Mike Rake said, The Daily Telegraph reports.
The Suntory group, best known for its range of Japanese whisky, is close to agreeing a purchase of the iconic Ribena and Lucozade brands from British drug maker GlaxoSmithKline, according to industry sources. An announcement is expected within days, though a Suntory spokesman stressed that "nothing has been decided" at this stage. Analysts value the brands at around £1bn, though it is believed the final sum could exceed this, with some reports suggesting a price tag as high as £1.5bn, The Daily Telegraph says.
One million hard-pressed borrowers prepared to pay interest at up to 5,853% have propelled Wonga.com into the league of Britain's biggest lenders after the controversial payday loan company lent as much money last year as Britain's biggest building society advanced in personal loans, The Guardian reports. | | |
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