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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: Syria, taper uncertainty weigh on stocks Markets opened broadly lower on Monday morning as improving data from Asia was offset by continuing concerns over tensions in Syria.
With the economic data calendar for Europe and the US looking pretty thin for Monday, investors are likely to focus on figures from China where trade and inflation numbers brightened 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%.
Meanwhile, second-quarter growth estimates in Japan were revised higher from 0.6% to 0.9%, as confidence grows in Prime Minister Shinzo Abe's so-called 'Abenomics'. This data - along with the news that Tokyo will host the 2020 Olympics - gave stock markets across Asia a boost overnight.
Nevertheless, a close eye will be kept on tensions over Syria this week ahead of a vote by US 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.
Uncertainty regarding Federal Reserve monetary policy also prompted traders to adopt a cautious approach in the aftermath of Friday's disappointing jobs report. A worse-than-expected rise in non-farm payrolls in August sparked speculation that the US central bank could hold off from tapering its quantitative easing (QE) programme until later on in the year. However, the unemployment rate fell last month from 7.4% to 7.3%.
Market Strategist Ishaq Siddiqi from ETX Capital said that the August jobs report was a "mixed result leaving the market feeling none the wiser to second guess the Fed's next move".
FTSE 100: BG cuts production guidance
Oil and gas group BG was a heavy faller this morning after lowering its 2014 production milestones due to the instability in Egypt, delays to the start-up of production in Norway and low natural gas prices in the US.
Sugar and food group Tate & Lyle was also in the red after UBS downgraded the stock from 'neutral' to 'sell', saying that its current valuation is too high and does not reflect that "sucralose prices continue to decline as 'generic' competitors improve product quality and access greater scale".
Food ingredients peer and retail group Associated British Foods was lower despite saying a strong finish to the year from Primark will help it deliver adjusted operating profit ahead of expectations for the second half.
GlaxoSmithKline declined after confirming it has reached an agreement to sell its Lucozade and Ribena brands to Japanese firm Suntory Beverage & Food for £1.35bn in cash. The company said that now is the right time to sell "as we increase the focus of our Consumer Healthcare business and execute the delivery of our late stage pipeline of pharmaceuticals and vaccines".
Engineering and project management group AMEC was subdued despite winning a five-year extension to its gas mains replacement contract with Wales & West Utilities (WWU), worth £40m per annum to its joint venture with Morrison Utility Services. |
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| | UK Event Calendar | | Monday September 09
INTERIMS
Brady, Escher Group Holdings, Hydrogen Group, Telit Communications, Ubisense Group
INTERIM DIVIDEND PAYMENT DATE
Delcam, LSL Property Services
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Credit (US) (20:00)
Harmonised Competitiveness Indicators (EU) (09:00)
FINALS
City of London Investment Group, Murgitroyd Group, Ricardo
AGMS
Bacit Ltd, PHSC
TRADING ANNOUNCEMENTS
Associated British Foods
FINAL DIVIDEND PAYMENT DATE
Greene King, Mulberry Group
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks mixed on Asia data and Syria vote - China and Japan data exceed estimates
- US Congress prepares to vote on Syria
- US buyers invest in European equities
- Suntory to buy GSK's Lucozade and Ribena
FTSE 100: -0.04%
DAX: -0.11%
CAC 40: -0.31%
FTSE MIBL 0.15%
IBEX 35: -0.67%
Stoxx 6000: -0.08%
European equities were mixed following better than expected data from China and Japan and as traders awaited a US vote on military strikes against Syria.
China's exports rose 7.2% in August from a year earlier, the General Administration of Customs revealed, beating the 5.5% estimate.
The figures added to hopes that the world's second largest economy may be recovering from its recent weakness.
Japan revised its growth data for the three months through June to show a 0.9% expansion compared to the previous quarter or at 3.8% on annual basis. It follows aggressive measures by the world's third-biggest economy in recent months to bolster recovery.
Meanwhile, Syria remains high on the agenda this week as US President Barack Obama makes a final push to convince Congress to back his proposal to launch air strikes against the Syrian regime.
He last week failed to gain support from foreign leaders at the Group of 20 summit.
Obama wants to chastise Syria President Bashar Hafez al-Assad's government for allegedly using chemical weapons against civilians on August 21st.
"Traders are fearful of the implications of the military intervention by the US, particularly after Putin warned that a Western strike could be met with retaliation as he continues to support Syria financially and strategically," said Ishaq Siddiqi, Market Strategist at ETX Capital.
The prospect of US Federal Reserve stimulus tapering is also weighing heavy on markets ahead of the central bank's policy meeting on September 17th to 18th.
Jobs data last week prompted economists to readjust their forecasts for the Fed's trimming of quantitative easing at the meeting.
US non-farm payrolls data missed expectations, with employers adding 169,000 workers in August. Yet, the unemployment rate fell to 7.3% last month from 7.4% in July.
US investors pump money into European market
US traders have invested $65bn in the European market in the first half of the year, the most in 36 years, according to research from Goldman Sach's European strategy team.
The investments, which come from pension funds and other US groups, show confidence in Europe's recovery following a batch of positive economic data.
Chief Investment Officer of international equity at Goldman Sachs Asset Management, Eddie Perkins, said: "The economic story makes Europe a good bet. We expect European equities to keep rising as the continent recovers."
The European Central Bank last week improved its outlook for the Eurozone economy this year. The Bank expects the region to shrink 0.4% compared to its previous forecast in June of a 0.6% contraction.
Suntory to buy GSK's Lucozade and Ribena
GlaxoSmithKline's stock fell following reports Suntory Beverage & Food has agreed to buy the company's drink brands Lucozade and Ribena for £1.3bn.
BG Group slumped after cutting its 2014 production forecast due to unrest in Egypt, a delay in first production from the Knarr project in Norway and lower volumes from the US.
Vivendi rallied after Director Vincent Bolloré said he would be willing to become Chief Executive Officer of the French multinational mass media and telecommunication company. |
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| | US Market Report | | US close: Markets flat as Putin comments offset QE hopes - Stocks finish flat after choppy day
- Jobs report raises uncertainty over September taper
- Putin says Russia will 'assist' Syria
Dow Jones: -0.10%
Nasdaq: 0.03%
S&P 500: 0.00%
US stocks ended flat on Friday following a volatile session as investors focused on a worse-than-expected employment report and comments from Russian President Vladimir Putin on Syria.
Just 169,000 non-farm payrolls were added in August, less than estimates, while figures for July were revised lower. The unemployment rate meanwhile unexpectedly fell from 7.4% to 7.3% in August, the lowest since December 2008.
Markets reacted positively to the disappointing labour-market figures as they sparked speculation that the Federal Reserve could hold off from tapering its quantitative easing (QE) programme until later on in the year.
However, given the recent improvement in economic data over recent weeks, it still remains uncertain if policymakers will be put off from scaling back stimulus on August's jobs figures alone.
Chicago Fed President Charles Evans said the central bank would begin scaling back monetary stimulus "later this year" if the economy improves but failed to specify when.
After a strong start Wall Street benchmarks briefly moved into negative territory after reports that Vladimir Putin had said Russia would "assist" Syria if it was attacked by the US.
Putin was reported to have made his comments at a press conference at the Group of 20 Summit in St Petersburg where US President Barack Obama is 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 expected to vote on whether or not to attack next week.
Ishaq Siddiqi, Market Strategist at ETX Capital said: "Escalating fears over Syria gripped the markets, sending jitters through risk-loving market participants who soon retreated, leaving the sellers to re-emerge and take control of price action."
He added: "Expect hesitation and uncertainty to grip the markets for the days heading into the September 18th Fed policy meeting."
S&P more positive on car makers
Standard&Poor's today lifted its long-term credit rating on Ford to BBB- from BB+ and raised its outlook on GM's to "positive" from "stable."
Apple advanced 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'.
Telecom tower group American Tower jumped after buying the parent company of rival firm Global Tower Partners for $3.3bn..
Delta Airlines and US Airways were in the red as rising oil prices (due to tensions over Syria) raised concerns over a hike in jet fuel costs.
S&P 500 - Risers
Advanced Micro Devices Inc. (AMD) $3.57 +4.69%
American Tower Corp (Reit) (AMT) $71.91 +4.60%
E*TRADE Financial Corp. (ETFC) $16.26 +4.57%
Moody's Corp. (MCO) $65.78 +3.40%
JDS Uniphase Corp. (JDSU) $14.40 +3.19%
Expedia Inc. (EXPE) $49.68 +3.11%
St Jude Medical Inc. (STJ) $52.52 +3.06%
AES Corp. (AES) $13.09 +2.99%
HCP Inc. (HCP) $40.89 +2.97%
Weyerhaeuser Co. (WY) $28.51 +2.70%
S&P 500 - Fallers
Electronic Arts Inc. (EA) $26.76 -3.32%
GameStop Corp. (GME) $49.61 -3.11%
First Solar Inc. (FSLR) $37.45 -2.37%
Macy's Inc. (M) $45.08 -2.04%
Tenet Healthcare Corp. (THC) $39.86 -2.02%
Harris Corp. (HRS) $57.28 -1.97%
Fossil Group Inc (FOSL) $112.25 -1.97%
Actavis Inc (ACT) $137.39 -1.91%
Sears Holdings Corp. (SHLD) $47.05 -1.90%
Frontier Communications Co. (FTR) $4.28 -1.83%
Dow Jones I.A - Risers
Hewlett-Packard Co. (HPQ) $22.42 +1.36%
JP Morgan Chase & Co. (JPM) $52.56 +0.86%
Alcoa Inc. (AA) $7.92 +0.64%
McDonald's Corp. (MCD) $96.26 +0.63%
Caterpillar Inc. (CAT) $83.39 +0.53%
Intel Corp. (INTC) $22.67 +0.31%
Coca-Cola Co. (KO) $38.35 +0.29%
AT&T Inc. (T) $33.41 +0.21%
3M Co. (MMM) $115.04 +0.15%
Walt Disney Co. (DIS) $61.39 +0.15%
Dow Jones I.A - Fallers
E.I. du Pont de Nemours and Co. (DD) $57.11 -0.87%
Verizon Communications Inc. (VZ) $46.34 -0.64%
American Express Co. (AXP) $73.35 -0.61%
International Business Machines Corp. (IBM) $183.03 -0.61%
Cisco Systems Inc. (CSCO) $23.55 -0.59%
Boeing Co. (BA) $106.07 -0.54%
United Technologies Corp. (UTX) $103.23 -0.43%
Home Depot Inc. (HD) $72.70 -0.40%
Microsoft Corp. (MSFT) $31.15 -0.27%
Travelers Company Inc. (TRV) $80.49 -0.21%
Nasdaq 100 - Risers
Expedia Inc. (EXPE) $49.68 +3.11%
Facebook Inc. (FB) $43.95 +3.02%
Nuance Communications Inc. (NUAN) $19.66 +2.34%
Baidu Inc. (BIDU) $135.67 +2.02%
Cognizant Technology Solutions Corp. (CTSH) $77.50 +1.97%
Expeditors International Of Washington Inc. (EXPD) $42.90 +1.80%
eBay Inc. (EBAY) $52.83 +1.69%
Automatic Data Processing Inc. (ADP) $73.13 +1.09%
Liberty Interactive Corp (LINTA) $23.69 +1.07%
Dentsply International Inc. (XRAY) $42.84 +0.97%
Nasdaq 100 - Fallers
Green Mountain Coffee Roasters Inc. (GMCR) $82.14 -3.23%
Equinix Inc. (EQIX) $172.77 -2.20%
Fossil Group Inc (FOSL) $112.25 -1.97%
Sears Holdings Corp. (SHLD) $47.05 -1.90%
Tesla Motors Inc (TSLA) $166.97 -1.74%
Amgen Inc. (AMGN) $111.01 -1.70%
Mylan Inc. (MYL) $35.29 -1.63%
Monster Beverage Corp (MNST) $55.25 -1.59%
Fastenal Co. (FAST) $47.89 -1.46%
Sirius XM Radio Inc (SIRI) $3.75 -1.32% |
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| | Newspaper Round Up | | Monday newspaper round-up: China, Banks, IGas Energy The Chinese economy found its feet in August, with inflation remaining subdued as exports rose more than expected, giving a rosier outlook for the second half of the year. Consumer prices rose 2.6 per cent from a year earlier, just a touch below July's 2.7 per cent pace, the statistics bureau said on Monday. Inflation is unlikely to pass the 3 per cent threshold in 2013, leaving it well within the government's comfort zone and beneath its official "upper limit" of 3.5 per cent, the Financial Times says.
Widespread co-ordinated strike action was threatened by trade unions last night. Their leaders queued up at the annual conference of the Trades Union Congress in Bournemouth to support generalised strike action and said that a "pressure cooker" of discontent was building among workers stuck in austerity pay settlements. The Communication Workers Union, which is balloting to take 125,000 Royal Mail workers out on strike in response to government plans to privatise the national postal network, said it would look to time its action alongside other national disputes, writes The Times.
UK businesses are more optimistic about their prospects than at any time since May 2011, according to accountants BDO, heading up a raft of encouraging economic surveys published today. Business activity in the English regions saw the strongest growth since 2001 while temporary recruitment rose at the strongest rate for 15 years, according to separate research, The Daily Telegraph reports.
Banks face a hidden bill of as much as £10bn to settle mis-selling claims linked to commercial real estate projects, according to research by one of the property sector's largest consultants. DTZ estimates property developers could receive compensation and preferential lending terms worth between £5bn and £10bn in return for dropping legal cases linked to the alleged mis-sale of complex interest rate derivatives, according to The Daily Telegraph.
An AIM-listed oil and gas explorer will run the gauntlet of anti-fracking protesters this week when it names the precise location in Lancashire where it will drill the UK's next shale gas well. IGas Energy will inform the local community before going public with the plan. It claims it has learnt the lessons of Balcombe, the Sussex village where activists disrupted drilling this summer by the rival shale gas explorer Cuadrilla Resources, The Times explains.
Banks should raise capital levels to double the current norm, Sir John Vickers, the man responsible for drawing up Britain's series of post-crisis reforms, has said. Sir John told the Financial Times that in a "blue-skies" world, banks' core tier one capital ratios would now be 20%, rather than the 10% he recommended as chair of the Independent Commission on Banking, The Daily Telegraph says. | | |
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