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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: Upbeat earnings lift markets higher ahead of US data Upbeat corporate earnings from a number of heavyweight stocks helped UK markets higher on Tuesday morning as investors showed optimism ahead of some key economic data out later on.
The FTSE 100 was trading up 0.1% at 6,659.87 early on, building on gains after hitting a two-and-a-half-month high on Monday of 6,654.2.
A backlog of US data should begin to unwind this week following the end of the government shutdown with last month's employment report likely to garner the most attention today. However, the figures will have less clout than normal given that they are already over two weeks old.
Nevertheless, consensus forecasts are pointing to an 180,000 increase in US non-farm payrolls last month, higher than the 169,000 gain seen in August. Meanwhile, the unemployment rate is expected to have remained unchanged at 7.3%.
Chief Economist Simon Smith from FxPro explained that the survey was undertaken before the shutdown took effect, so markets will likely be wary of "the extent to which subsequent developments have undermined any strength in the economy".
Investors are hoping that the shutdown - which is likely to have dampened US growth in the fourth quarter - will prompt the Federal Reserve to delay tapering its stimulus programme until next year.
Fed Bank of Chicago President Charles Evans said yesterday that the central bank may not taper for "a few months" given due to the cloudy economic outlook. Evans said that he wants to see "consistent" growth in non-farm payrolls of over 200,000 each month and a lower jobless rate before the Fed can make a move.
Blue chips impress early on
Household products group Reckitt Benckiser was a high riser after lifting its full-year revenue guidance slightly following a strong third quarter and a decent performance by recent acquisitions. The company said it now expects to grow net revenue excluding Reckitt Benckiser Pharmaceuticals (RBP) by "at least 6%" in 2013, compared with the previous forecast of the "upper end of the +5-6% range".
BHP Billiton was also in demand after the world's largest miner raised its forecast for annual iron ore production whilst maintaining guidance for oil, copper and coal output.
Engineering firm GKN advanced after a 16% increase in group sales to £1.87bn and a 34% jump in profits in the third quarter, helped by a good performance from its auto and commercial aerospace divisions.
Bucking the trend was ARM Holdings as the chip designer fell after unveiling its third-quarter results. Investors gave a cool reaction to the figures despite a strong 36% jump in pre-tax profits to £92.6m.
Utilities providers SSE and National Grid were lower as ongoing hikes in energy tariffs across the sector come under increased scrutiny from politicians.
Property group Grainger was a high riser on the FTSE 250 after JPMorgan Cazenove raised its rating on the stock from 'neutral' to 'overweight', saying that UK house price inflation is not yet priced into the shares.
The same bank lifted its target for insurance giant RSA from 132p to 141p, giving the stock a lift this morning, saying that its UK underwriting results are expected to "turn the corner". |
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| FTSE 100 - Risers
Reckitt Benckiser Group (RB.) 4,719.00p +4.87%
BHP Billiton (BLT) 1,925.50p +2.78%
GKN (GKN) 366.90p +1.21%
Carnival (CCL) 2,115.00p +0.95%
Legal & General Group (LGEN) 208.60p +0.77%
RSA Insurance Group (RSA) 123.00p +0.74%
Anglo American (AAL) 1,547.00p +0.68%
Antofagasta (ANTO) 897.00p +0.67%
British American Tobacco (BATS) 3,356.00p +0.60%
Whitbread (WTB) 3,392.00p +0.59%
FTSE 100 - Fallers
ARM Holdings (ARM) 994.50p -4.28%
Smith & Nephew (SN.) 782.50p -1.88%
SSE (SSE) 1,427.00p -1.72%
easyJet (EZJ) 1,339.00p -1.40%
International Consolidated Airlines Group SA (CDI) (IAG) 360.00p -1.21%
Persimmon (PSN) 1,239.00p -0.88%
National Grid (NG.) 759.50p -0.85%
Associated British Foods (ABF) 2,059.00p -0.68%
TUI Travel (TT.) 379.60p -0.68%
Coca-Cola HBC AG (CDI) (CCH) 1,752.00p -0.68%
FTSE 250 - Risers
Grainger (GRI) 190.60p +3.59%
African Barrick Gold (ABG) 162.70p +2.52%
Bwin.party Digital Entertainment (BPTY) 121.40p +2.27%
esure Group (ESUR) 235.70p +2.12%
Fidessa Group (FDSA) 2,018.00p +1.66%
BH Macro Ltd. EUR Shares (BHME) € 19.90 +1.53%
Carpetright (CPR) 636.50p +1.35%
BH Macro Ltd. USD Shares (BHMU) 19.63 +1.29%
Daejan Holdings (DJAN) 4,041.00p +1.18%
Countrywide (CWD) 594.00p +1.11%
FTSE 250 - Fallers
UBM (UBM) 716.00p -3.76%
IP Group (IPO) 137.00p -2.84%
Redrow (RDW) 250.20p -2.11%
Barratt Developments (BDEV) 341.00p -1.73%
KCOM Group (KCOM) 99.00p -1.69%
Bovis Homes Group (BVS) 790.00p -1.68%
Bank of Georgia Holdings (BGEO) 1,968.00p -1.60%
Carillion (CLLN) 307.00p -1.54%
Taylor Wimpey (TW.) 111.30p -1.50% |
| | UK Event Calendar | | Tuesday October 22
INTERIMS
B.P. Marsh & Partners, Development Securities, Whitbread
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Wholesale Price Index (GER) (07:00)
Employment situation for September (US) (13:30)
Q3
ARM Holdings, Eurasia Drilling Co Ltd GDR (Reg S), Telekomunikacja Polska S.A GDR (Reg S)
FINALS
Avia Health Informatics, EpiStem Holdings, Spirit Pub Company
EGMS
JSC KazMunaiGaz Exploration Production GDR (Reg S)
AGMS
Aberforth Geared Income Trust, Diverse Income Trust (The)
UK ECONOMIC ANNOUNCEMENTS
Public Sector Finances (09:30)
Speech from BoE's Bean (09:10)
FINAL DIVIDEND PAYMENT DATE
IG Group Holdings
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Rising fears of property bubble in Germany - Markets steady ahead of US employment report
- Bundesbank warns of possible overvaluation of apartment prices
- Spanish Treasury auction ahead
FTSE-100: 0.12%
Dax-30: -0.10%
Cac-40: -0.08%
FTSE Mibtel: -0.05%
Ibex 35: 0.03%
Stoxx 600: -0.02%
European stocks have begun the session in a rather lacklustre fashion, as traders bide their time ahead of this afternoon's release of the delayed US non-farm payrolls report for the month of September.
Acting as a backdrop, the Bundesbank warned that apartment prices in Germany's biggest cities could be overvalued by as much as 20%, the Financial Times pointed out.
Meanwhile, analysts at Unicredit were referencing a letter dated September 3rd in which the European Union's Joaquin Almunia replied to European Central Bank President Draghi stating that markets have already priced in the possibility of losses being imposed on junior bondholders while European rules for bank aid make provisions for exceptions applicable on a case-by-case basis in order to safeguard financial stability.
Spain will sell up to €3.5bn in three and nine month T-bills on Tuesday morning.
Tele2 plummets after slashing its own estimates
Sweden's second-largest phone company, Tele2, posted an unforeseen loss in the third quarter and lowered its 2015 forecasts for sales and profits.
Swiss drug-maker Novartis raised its full-year outlook for a second quarter in a row on Tuesday.
German automaker Daimler AG is preparing a two-year investment plan for commercial vehicle production in Brazil and will announce its investments for 2014 and 2015 on Sunday, a spokeswoman cited by Reuters said.
Relevant economic indicators due out
The Belgian central bank's business confidence barometer for the month of October will be released at 07:45.
Eurozone consumer confidence figures for October are due out at 13:00.
Single currency steady below technical resistance
Front-month Brent crude futures were 0.345 dollars higher at 110.02, after hitting a session low of 109.60 before the start of trading.
The euro/dollar was little changed, off by 0.07% to the 1.3677 dollar level. |
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| | US Market Report | | US close: Stocks finish flat as investors await jobs report - S&P 500 adds fraction to record high
- Fed's Evans says taper won't come for 'a few months'
- McDonald's misses forecasts with Q3 results
Dow Jones: -0.05%
Nasdaq: 0.15%
S&P 500: 0.03%
US markets finished flat on Monday with the S&P 500 little changed from its all-time high, as investors trod water ahead of some key economic data out later in the week.
Indices had a strong week of gains last week on the back of upbeat corporate earnings from the likes of Google and Morgan Stanley, as well as speculation that the government shutdown may prompt the Federal Reserve to put off tapering stimulus. On Monday, the S&P 500 only managed to add a further 0.16 points (+0.01%) to Friday's record high of 1,744.5.
Many believe that the Fed will not begin to taper until Janet Yellen takes over as Chairman in February next year. Speaking to CNBC's 'Squawkbox' on Monday, Fed Bank of Chicago President Charles Evans said that the central bank may not taper for "a few months" given due to the cloudy economic outlook.
"October is a tough one. December? I think we need a couple of good labor reports and evidence of increasing growth, gross domestic product growth. It's probably going to take a few months to sort that out."
Evans said that he wants to see "consistent" growth in non-farm payrolls of over 200,000 each month and a lower jobless rate before the Fed can make a move.
A backlog of US data should begin to unwind this week following the shutdown with last month's employment report likely to garner the most attention on Tuesday. Consensus forecasts are pointing to an 180,000 increase in US non-farm payrolls last month, higher than the 169,000 gain seen in August. However, the unemployment rate is expected to have remained unchanged at 7.3%.
This week will also see the delayed release of August construction spending figures, international trade data and wholesale inventories.
As for Monday's data, the National Association of Realtors reported that existing home sales slipped 1.9% month-on-month in September after hitting their highest level in nearly four years the month before. Sales fell to an annualised rate of 5.29m, just below the 5.30m forecast.
In other news, according to Barron's this weekend, money managers who took part in its autumn survey expect the S&P 500 and Nasdaq to both gain 5% to approximately 1,824 and 4,116 points, respectively, by the next June. The Dow is seen rising 7% during that time.
McDonald's falls after Q3 miss
Fast-food chain McDonald's was in the red after third-quarter profits rose 4.6% to $1.52 a share, slightly below the consensus forecast for $1.51. The company saw revenue increase 2.4% to $7.32bn (forecast: $7.43bn). Following global same-store sales growth of 0.9% during the period, McDonald's warned that October would be more or less flat.
Telecoms giant AT&T was higher after the news that it has agreed to lease around 9,100 of its towers and offload another 600 to Crown Castle for $4.85bn.
US Steel's trading performance was subdued after the company said it will be hit by a $1.8bn writedown for its North American flat-rolled and Texas operations in the third quarter. Market reports have suggested that the cash could be used to finance an expansion in Europe.
JP Morgan Chase was flat after agreeing to pay $13bn to end US civil probes of its mortgage-bond instruments.
Phone-equipment manufacturer Tellabs jumped after saying it will be taken private by Marlin Equity Partners in a deal valued at about $891m, for a 4.3% premium to Friday's closing price.
S&P 500 - Risers
First Solar Inc. (FSLR) $53.88 +7.82%
Netflix Inc. (NFLX) $354.99 +6.44%
Hasbro Inc (HAS) $49.72 +5.25%
JDS Uniphase Corp. (JDSU) $16.27 +4.63%
Priceline.Com Inc. (PCLN) $1,087.09 +3.71%
VF Corp. (VFC) $211.23 +3.39%
Devon Energy Corp. (DVN) $65.32 +3.34%
TripAdvisor Inc. (TRIP) $74.11 +3.12%
Cliffs Natural Resources Inc. (CLF) $23.73 +3.08%
F5 Networks Inc. (FFIV) $90.11 +2.62%
S&P 500 - Fallers
J.C. Penney Co. Inc. (JCP) $6.42 -8.29%
Goodyear Tire & Rubber Co. (GT) $21.12 -6.67%
Halliburton Co. (HAL) $50.66 -3.45%
Vertex Pharmaceuticals Inc. (VRTX) $74.64 -3.14%
Regeneron Pharmaceuticals Inc. (REGN) $294.89 -2.86%
Lockheed Martin Corp. (LMT) $125.30 -2.79%
Micron Technology Inc. (MU) $16.57 -2.72%
Abercrombie & Fitch Co. (ANF) $33.99 -2.41%
Alexion Pharmaceuticals Inc. (ALXN) $105.88 -2.35%
Raytheon Co. (RTN) $75.07 -2.33%
Dow Jones I.A - Risers
General Electric Co. (GE) $26.14 +2.31%
AT&T Inc. (T) $35.22 +1.76%
Verizon Communications Inc. (VZ) $50.58 +1.14%
Intel Corp. (INTC) $24.14 +1.09%
Walt Disney Co. (DIS) $67.61 +0.69%
Goldman Sachs Group Inc. (GS) $159.77 +0.68%
Caterpillar Inc. (CAT) $87.70 +0.41%
3M Co. (MMM) $123.25 +0.33%
Nike Inc. (NKE) $76.09 +0.21%
Travelers Company Inc. (TRV) $86.76 +0.21%
Dow Jones I.A - Fallers
Boeing Co. (BA) $121.47 -0.86%
Wal-Mart Stores Inc. (WMT) $75.15 -0.74%
McDonald's Corp. (MCD) $94.59 -0.64%
Procter & Gamble Co. (PG) $78.97 -0.55%
International Business Machines Corp. (IBM) $172.86 -0.53%
Johnson & Johnson (JNJ) $91.20 -0.47%
Exxon Mobil Corp. (XOM) $87.23 -0.37%
Pfizer Inc. (PFE) $30.40 -0.36%
E.I. du Pont de Nemours and Co. (DD) $59.46 -0.27%
Merck & Co. Inc. (MRK) $46.51 -0.21%
Nasdaq 100 - Risers
Netflix Inc. (NFLX) $354.99 +6.44%
Priceline.Com Inc. (PCLN) $1,087.09 +3.71%
F5 Networks Inc. (FFIV) $90.11 +2.62%
Apple Inc. (AAPL) $521.36 +2.45%
Check Point Software Technologies Ltd. (CHKP) $59.67 +2.16%
Avago Technologies Ltd. (AVGO) $47.05 +2.15%
Yahoo! Inc. (YHOO) $34.06 +1.88%
Sba Communications Corp. (SBAC) $86.06 +1.64%
Paychex Inc. (PAYX) $42.26 +1.51%
Sandisk Corp. (SNDK) $69.71 +1.43%
Nasdaq 100 - Fallers
Tesla Motors Inc (TSLA) $172.60 -5.89%
Vertex Pharmaceuticals Inc. (VRTX) $74.64 -3.14%
Regeneron Pharmaceuticals Inc. (REGN) $294.89 -2.86%
Baidu Inc. (BIDU) $161.21 -2.83%
Micron Technology Inc. (MU) $16.57 -2.72%
Green Mountain Coffee Roasters Inc. (GMCR) $62.67 -2.70%
Alexion Pharmaceuticals Inc. (ALXN) $105.88 -2.35%
Gilead Sciences Inc. (GILD) $66.99 -1.79%
Liberty Interactive Corp (LINTA) $26.65 -1.66%
Nuance Communications Inc. (NUAN) $16.89 -1.46% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: BHP Billiton, Pay-outs, Merlin Entertainments BHP Billiton is in demand this morning after the Australian miner said it was lifting its full-year iron ore production forecast due to resurgent demand in China. The miner's shares have risen 1.7 per cent after it said it now expects to produce 212mn tonnes of iron ore this financial year against previous guidance of 207mn tonnes. In its quarterly report to shareholders, BHP also said iron ore production had risen a healthy 23 per cent compared to the same period last year, the Financial Times says.
Energy bills will top £1,500 for the first time after npower became the latest supplier to announce an inflation-busting price rise. The company is increasing gas and electricity bills by 10.4% on average, adding almost £140 to the annual cost of heating and lighting a home. Campaigners accused the company of putting "profits before people's lives". The increase by the German-owned supplier came as the Government faced criticism for awarding subsidies worth tens of billions of pounds to a French company to build Britain's first nuclear power plant in a generation, according to The Times.
The expected £16.6bn special dividend from Vodafone, following the sale of its stake in US group Verizon Wireless, will take pay-outs by UK stock market listed firms past £100bn for the first time. It easily outstrips the previous high of £80.6bn in 2012. Even without the mammoth windfall from Vodafone, pay-outs to private investors and institutional shareholders such as pension funds are set to hit £83bn next year, The Daily Express says, citing data from the Shareholder Solutions unit at Capita Asset Services.
The company behind attractions including Legoland, Madame Tussauds and the Edinburgh Dungeon, has unveiled plans to float on the London stock market. Private equity-owned Merlin Entertainments, which also owns Alton Towers and the Sea Life Centre at Loch Lomond, is likely to be worth as much as £3bn. It said the flotation, targeting a free float of at least 20%, would help it pay down debt and plan for the next stage of its development. Plans include a Legoland Park in Dubai and eventual expansion into China, The Scotsman reports.
Former employees of ICAP, Rabobank, the Royal Bank of Scotland, Deutsche Bank and UBS were among 22 names that the UK Serious Fraud Office included as alleged co-conspirators on a draft indictment against Tom Hayes, a former star trader at both UBS and Citigroup who is facing criminal charges stemming from a probe into alleged LIBOR manipulation. None have been formally accused of wrongdoing by the fraud agency but may face investigation, according to a copy of an SFO letter read out by Mr Justice Cooke during a hearing at London's Southwark Crown Court on Monday, the Financial Times writes.
American hedge funds have forced the Co-operative Group to relinquish control of its banking arm in a deal that raises concerns about its ethical approach to business for 4.7m customers. After months of intense talks with two US hedge funds, the UK's largest mutual – and owner of pharmacies, grocers and funeral homes – was forced to cede majority control in the bank as it battles to plug a £1.5bn capital shortfall, The Guardian says. | | |
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