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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 close: FTSE almost flat ahead of Fed decsion - FTSE closes almost flat, erasing earlier gains
- Tracking loses seen in US ahead of Fed decision
- Next holds onto position in top spot, Standard Life leads fallers
techMARK 2,665.02 +0.34%
FTSE 100 6,777.70 +0.04%
FTSE 250 15,582.96 +0.31%
The FTSE beat a hasty retreat this afternoon erasing most of this morning's strong gains, tracking declines seen across the pond ahead of the Federal Reserve statement.
The FTSE 100 ultimately ended the session just three points higher that at the opening bell.
The central bank’s Federal Open Market Committee is expected to announce it will keep its monthly $85bn asset purchase programme unchanged and interest rate at 0.25%.
The possibility of the Fed tapering at this meeting was "very slim”, according to Craig Erlam, Market Analyst at Alpari.
Meanwhile, an ADP employment report on private non-farm payrolls revealed that US employers added 130,000 jobs in October, below the 150,000 which were expected, and despite a large rise in hiring amongst large firms. It followed a gain of 166,000 last month.
Furthermore, US inflation fell unexpectedly as higher energy costs were offset by flat food prices. The consumer price index rose to 1.7% in September from 1.8% in August.
Back on this side of the Atlantic, Mark Carney, the Governor of the Bank of England, was quoted in a Welsh newspaper as saying that monetary policy will not be tightened until there is evidence of "real traction and momentum" in the recovery.
Several energy stocks were lower after the so-called 'Big Six' energy firms have been charged with behaving like a “chorus line acting in concert”, after they faced tough questioning on recent hefty price rises of around 10% from MPs. In a damning report by regulator Ofgem, it was revealed that wholesale electricity costs actually fell over the past three years, but some companies still increased prices for customers.
UK Pensions Minister Steve Webb has proposed a cap on the level of fees charged on workplace pensions in a 'full frontal assault' on the pensions industry. The Liberal Democrat minister has suggested that fees charged by pensions providers on auto-enrolment workplace pension schemes should be capped at 0.75%, lower than the 1% originally pencilled in and some existing fees that top 2%.
BoE Govenor needs to see "real traction and momentum in this recovery"
"We’re not going to look to tighten monetary policy until we see real traction and momentum in this recovery that has been sustained for some time,” Mark Carney, the Governor of the Bank of England, said in an interview with Cardiff-based newspaper Western Mail.
“Most of the growth in momentum is coming from the household sector and there’s a pick-up in the housing market from quite low levels.”
Next continues to impress with jump in Q3 sales
High Street clothing and homeware retailer Next topped the leader board after it reported an increase in third quarter sales, despite ongoing trading volatility, as it upwardly revised its earnings forecasts for the full year.
Sector peer Marks and Spencer was also firmly higher after Kantar Worldpanel, the consumer research group, issued data which revealed that M&S has eased the decline in its clothing market share, resulting in a flat market share for the 24 weeks to the end of September.
Banking group Barclays posted a strong rise in its nine-month pre-tax profits from £962m to £2.85bn, while its mis-sold personal protection insurance pay-outs were steady at £3.95bn.
Meanwhile, strong momentum in the UK saw pensions and savings provider Standard Life boast of continued third-quarter strong growth in assets under management but it was not enough to hit analysts' expectations.
Sales slowed in constant currencies at Pearson in the third quarter, but the publisher remained on track to hit its full year earnings targets. Although the Financial Times owner saw 4% sales growth in the first nine months at constant currencies, down from 5% in the first half of the year, but on an underlying basis it remained at 2%.
Standard Chartered shares were also retreating, with investors taking profits one day after the company reported a slight increase in operating profit for the year-to-date due to tight cost controls. In a trading update for the nine months ended September 30th, the financial services company said it delivered a strong performance despite an uncertain market environment. |
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| | FTSE 100 - Risers
Next (NXT) 5,450.00p +4.71%
Experian (EXPN) 1,270.00p +3.25%
Travis Perkins (TPK) 1,848.00p +1.99%
Marks & Spencer Group (MKS) 493.20p +1.57%
Melrose Industries (MRO) 321.70p +1.55%
Kingfisher (KGF) 380.60p +1.47%
Hargreaves Lansdown (HL.) 1,181.00p +1.20%
Babcock International Group (BAB) 1,278.00p +1.19%
Associated British Foods (ABF) 2,222.00p +1.18%
Tullow Oil (TLW) 947.00p +1.18%
FTSE 100 - Fallers
Standard Life (SL.) 354.50p -3.98%
Pearson (PSON) 1,316.00p -3.59%
Standard Chartered (STAN) 1,508.00p -2.30%
Schroders (SDR) 2,619.00p -2.20%
London Stock Exchange Group (LSE) 1,643.00p -1.68%
Reckitt Benckiser Group (RB.) 4,789.00p -1.40%
Old Mutual (OML) 202.70p -1.03%
Unilever (ULVR) 2,523.00p -0.98%
SSE (SSE) 1,428.00p -0.90%
Aberdeen Asset Management (ADN) 444.60p -0.83%
FTSE 250 - Risers
African Barrick Gold (ABG) 197.20p +15.93%
Cable & Wireless Communications (CWC) 46.50p +5.11%
Thomas Cook Group (TCG) 144.40p +4.34%
Euromoney Institutional Investor (ERM) 1,075.00p +2.87%
Paragon Group Of Companies (PAG) 339.40p +2.79%
Stagecoach Group (SGC) 352.40p +2.68%
3i Group (III) 373.20p +2.67%
BBA Aviation (BBA) 343.60p +2.60%
Premier Farnell (PFL) 225.80p +2.59%
Mitchells & Butlers (MAB) 401.00p +2.43%
FTSE 250 - Fallers
Go-Ahead Group (GOG) 1,684.00p -3.11%
Centamin (DI) (CEY) 50.10p -2.53%
IP Group (IPO) 151.00p -1.95%
Hansteen Holdings (HSTN) 102.30p -1.92%
Workspace Group (WKP) 488.90p -1.83%
888 Holdings (888) 162.00p -1.82%
Ashmore Group (ASHM) 409.60p -1.73%
International Personal Finance (IPF) 585.00p -1.68%
Petra Diamonds Ltd.(DI) (PDL) 113.70p -1.56%
Evraz (EVR) 120.70p -1.55%
FTSE TechMARK - Risers
Ricardo (RCDO) 618.50p +2.83%
DRS Data & Research Services (DRS) 22.75p +2.25%
Puricore (PURI) 48.00p +2.13%
Triad Group (TRD) 14.50p +1.75%
Anite (AIE) 90.00p +1.69%
Gresham Computing (GHT) 128.00p +1.59%
Skyepharma (SKP) 97.00p +1.57%
Torotrak (TRK) 28.00p +1.36%
Kofax (KFX) 380.00p +1.33%
RM (RM.) 116.50p +1.30%
FTSE TechMARK - Fallers
Microgen (MCGN) 120.75p -5.29%
Vislink (VLK) 49.12p -2.00%
XP Power Ltd. (DI) (XPP) 1,575.00p -1.87%
Ark Therapeutics Group (AKT) 0.36p -1.37%
Phoenix IT Group (PNX) 148.50p -1.33%
Optos (OPTS) 155.75p -0.80%
Vectura Group (VEC) 111.00p -0.67%
Wolfson Microelectronics (WLF) 142.00p -0.35%
Sepura (SEPU) 146.75p -0.17% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks mixed after data, ahead of FOMC announcement - German inflation eases
- German jobless rate holds steady, unemployment rises
- Eurozone economic confidence increases
- US inflation falls,employment advances
- FOMC wraps up policy meeting
FTSE 100: 0.04%
DAX: -0.13%
CAC 40: -0.09%
FTSE MIB: -0.47%
IBEX 35: 0.01%
Stoxx 600: 0.52%
European stocks were mixed as investors weighed a batch of European and US data and waited for the outcome of the Federal Reserve’s policy meeting.
German inflation eased unexpectedly in October due to lower energy costs. The consumer price index slowed to 1.2% from 1.4% in September, well below the European Central Bank’s target inflation of 2%.
Also in Germany, the unemployment rate in October was unchanged at 6.5%, in line with forecasts.
Joblessness in Europe’s biggest economy rose by 2,000 to 2.8m, the Labour Office revealed. Economists had predicted the reading to hold steady.
The Eurozone’s economic confidence increased slightly with the index up to 97.8 in October from 96.9 in September. It exceeded analysts’ expectations for a reading of 97.2.
The European Central Bank has said in a survey that banks expect to relax standards on corporate lending this quarter.
The financial institutions signalled that they may make it easier for companies to get loans for the first time in more than six years.
They also plan to ease access to consumer loans and mortgages.
“This is a cautiously encouraging survey,” said Marie Diron, a senior economic adviser to Ernst & Young LLP in London, according to Bloomberg.
“This would be very good news for the Eurozone economy. So far, our forecast is based on a more cautious assumptions that credit conditions will remain tight for some time.”
Standard Life, Fiat
Standard Life dropped after saying its asset-management business saw net inflows in three months through September fall from the previous year.
Fiat slumped after the Italian carmaker lowered its forecast for trading profit this year.
Pearson sank after saying it expects margins for its education unit to decline in 2013 due to weaker demand for college textbooks.
Volkswagen rallied after reporting a rise in quarterly earnings that beat analysts’ estimates.
Barclays advanced after saying credit impairment charges fell 6% to £2.4bn in the first nine months of this year.
Eni gained after the Italian oil producer posted net income for the third quarter that exceeded forecasts.
Other asset classes rise
Brent crude futures were up $0.420 to $109.470 per barrel on the ICE.
The euro rose 0.15% to $1.3766. |
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| | US Market Report | | US open: Stocks rise ahead of FOMC announcement US stocks rose as investors waited for the outcome of the Federal Reserve’s two-day policy meeting.
The central bank’s Federal Open Market Committee is expected to announce it will keep its monthly $85bn asset purchase programme unchanged and interest rate at 0.25%.
Economists see the Fed holding off on tapering until March 2014 after the 16-day partial government shutdown earlier this month reduced economic growth by 0.3 percentage points this quarter.
The possibility of the Fed tapering at this meeting was "very slim”, according to Craig Erlam, Market Analyst at Alpari.
“The government shutdown and debt ceiling battle has left a lot of uncertainties hanging over the economy.”
Acting as a backdrop, was the release of an ADP employment report on private non-farm payrolls. Employers added 130,000 jobs in October, below the 150,000 which were expected, and despite a large rise in hiring amongst large firms. It followed a gain of 166,000 last month.
US inflation fell unexpectedly as higher energy costs were offset by flat food prices. The consumer price index rose to 1.7% in September from 1.8% in August.
“The decline in CPI inflation in September and signs of weaker jobs growth in October support the now widespread view that the Fed won’t begin to taper its monthly asset purchases until next year,” according to Capital Economics.
In the earnings session there are 267 companies, including Starbucks and Facebook, releasing results on Wall Street.
Front-month West Texas crude futures were down by $0.873 to $97.350 per barrel on the NYMEX
Ten-year US treasury yields were down 0.01 basis points to 2.49%. |
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| | Broker Tips | | African Barrick Gold: Investec places its target prev.: 137p under review and keeps a sell recommendation. Canaccord Genuity upgrades from sell to hold with an unchanged target of 125p.
AMEC: Goldman Sachs cuts target from 1248p to 1227p, while keeping its buy recommendation.
Associated British Foods: Exane raises target from 2400p to 2700p and reiterates an outperform rating.
Aquarius Platinum: Goldman Sachs upgrades from sell to neutral with a target of 93p.
Beazley: Westhouse Securities upgrades to add with a target of 245p.
Betfair: Credit Suisse initiates with a target of 1185p and an outperform rating.
BHP Billiton: Goldman Sachs increases target from 1900p to 1950p and maintains a neutral rating.
Blinkx: Numis places both its target prev.: 136p and its buy recommendation under review.
Bovis Homes Group: Panmure Gordon raises target from 840p to 873p keeping its buy recommendation.
BP: Deutsche Bank ups target from 500p to 520p and keeps a buy recommendation. Goldman Sachs lowers target from 450p to 440p and stays with its neutral rating. Investec takes target from 440p to 460p retaining its hold recommendation. Societe Generale raises target from 490p to 530p upgrading to buy.
bwin.party: Credit Suisse initiates with a target of 99p and an underperform rating.
easyJet: Barclays upgrades to overweight with a target of 1530p.
Gable Holdings: Panmure Gordon moves target from 71p to 84p upgrading from hold to buy.
Genel Energy: Canaccord Genuity lowers target from 1114p to 1100p and reiterates a hold recommendation.
GlaxoSmithKline: JP Morgan reduces target from 1900p to 1750p and stays with its neutral rating.
Halfords Group: Barclays takes target from 330p to 360p reiterating an equal-weight rating.
Ladbrokers: Alphavalue shifts target from 197p to 196.50p and downgrades from add to reduce. Credit Suisse initiates with a target of 170p and an underperform rating.
Land Securities: Alphavalue moves target from 865.60p to 866.90p, while downgrading from reduce to sell.
Legal & General Group: JP Morgan ups target from 151p to 164p, while leaving its underweight rating unchanged.
Lloyds Banking Group: Deutsche Bank raises target from 77p to 90p retaining a buy recommendation.
Lookers: Panmure Gordon shifts target from 140p to 147p and keeps its buy recommendation.
Nighthawk Energy: Westhouse Securities shifts target from 14p to 16.50p and reiterates a buy recommendation.
Pace: Numis increases target from 200p to 310p upgrading to hold.
Pearson: Numis takes target from 1225p to 1297p and maintains a hold recommendation. Investec places its target prev.:1325p under review, while keeping its add rating.
Playtech: Credit Suisse initiates with a target of 835p and a neutral rating.
Regus: Credit Suisse raises target from 190p to 225p retaining its outperform rating.
Rightmove: Canaccord Genuity increases target from 2800p to 3000p keeping a buy recommendation.
Speedy Hire: Investec ups target from 85p to 100p maintaining a buy recommendation.
Spirent Communications: N+1 Singer cuts target from 160p to 140p retaining a buy recommendation.
Spirit Pub: Deutsche Bank moves target from 70p to 77p and maintains its hold recommendation.
Standard Chartered: UBS takes target from 1790p to 1680p, while leaving its buy recommendation unaltered.
Tullow Oil: Investec cuts target from 940p to 925p, while upgrading from sell to hold.
Wood Group: Goldman Sachs reduces target from 974p to 916p, while upgrading from buy to strong buy.
Whitbread: Alphavalue cuts target from 3002.30p to 2996.20p and downgrades from reduce to sell.
William Hill: Credit Suisse initiates with a target of 465p and an outperform rating.
Wolfson Microelectronics: FinnCap lowers target from 140p to 120p and retains a sell recommendation. Numis ups target from 170p to 200p and upgrades to buy. | | |
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