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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 snap nine-day winning streak Equities pulled back from a five-month high on Wednesday with ex-dividend names weighing on markets in London as traders took a breather following a recent strong run.
The FTSE 100 snapped a nine-day winning streak this morning to trade around 0.5% lower than Tuesday's finish of 6,695.66, the index's highest closing high since May 28th when it closed at 6,762.01.
Stocks have surged over the past week as investors celebrated the end to the US government shutdown and the short-term deal to raise the debt ceiling. Meanwhile, hopes over a continuation of Federal Reserve monetary stimulus were sparked yesterday after a disappointing September jobs report.
Weighing on markets this morning was a sharp sell-off across Asian indices overnight on the back of concerns over the Chinese banking sector following a report that said that debt write-offs at the country's biggest lenders tripled in the first half.
According to Chief Market Analyst Michael Hewson from CMC Markets, "given concerns earlier this year about the Chinese shadow banking sector it would appear that the acknowledgement that there is a problem and Chinese authorities are starting to deal with it has seen some investors take some money off the table in case there are a lot more provisions to come".
The minutes of the latest Bank of England policy meeting will be released this morning following the decision by the central bank to hold the Bank Rate at 0.5% and maintain its asset purchase programme at £375bn.
Ex-div stocks provide a drag
A number of heavyweight stocks were trading in the red this morning after going ex-dividend, meaning that from today new investors won't be able get their hands on the companies' latest payouts. Smiths Group went ex-dividend today, along with BAE Systems and Rolls-Royce.
John Menzies, Senior, William Hill, Rank Group, Barratt Developments and JD Wetherspoon also went ex-div on the FTSE 250.
Banknote printer and ID services firm De La Rue was a big mover this morning with shares sinking after the company warned that it would miss its full-year profit target by £10m owing to "challenging trading conditions".
Sports Direct edged higher after saying that sales in the nine weeks to September 29th were up 15.1% despite some tough comparatives with last year. Fellow retailer Home Retail also rose after a 53% jump in first-half profits owing to sales growth at its Argos and Homebase chains.
Chip designer ARM Holdings was a heavy faller for the second straight day as investors gave a cool reaction to its third-quarter results. Analysts at JPMorgan Cazenove maintained their 'neutral' rating on the stock this morning, saying: "With no upgrades to estimates expected in the next couple of quarters we see no reason to be building positions at this time and would take profits in the short - term."
Costa and Premier Inn owner Whitbread was lower after Deutsche Bank downgraded the stock to 'hold', saying that it's time to "consolidate and take stock" after a great year. |
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| FTSE 100 - Risers
RSA Insurance Group (RSA) 126.40p +2.02%
United Utilities Group (UU.) 715.00p +1.42%
International Consolidated Airlines Group SA (CDI) (IAG) 363.60p +1.28%
Associated British Foods (ABF) 2,097.00p +1.26%
Shire Plc (SHP) 2,521.00p +1.12%
Weir Group (WEIR) 2,361.00p +1.11%
Sports Direct International (SPD) 714.00p +1.06%
Reckitt Benckiser Group (RB.) 4,783.00p +1.04%
Carnival (CCL) 2,160.00p +0.89%
Compass Group (CPG) 906.00p +0.83%
FTSE 100 - Fallers
Smiths Group (SMIN) 1,405.00p -3.44%
Royal Bank of Scotland Group (RBS) 352.00p -2.76%
BAE Systems (BA.) 444.90p -2.48%
Aggreko (AGK) 1,471.00p -2.13%
HSBC Holdings (HSBA) 675.40p -1.79%
Rio Tinto (RIO) 3,206.00p -1.70%
GlaxoSmithKline (GSK) 1,574.00p -1.69%
ARM Holdings (ARM) 988.00p -1.59%
BT Group (BT.A) 363.10p -1.12%
Anglo American (AAL) 1,540.00p -1.03%
FTSE 250 - Risers
Pace (PIC) 310.50p +7.07%
Home Retail Group (HOME) 190.60p +3.42%
Laird (LRD) 233.00p +3.23%
BH Global Ltd. USD Shares (BHGU) 11.63 +2.02%
Chemring Group (CHG) 218.60p +1.63%
888 Holdings (888) 170.00p +1.55%
ITE Group (ITE) 303.50p +1.27%
Alent (ALNT) 358.60p +1.01%
Cranswick (CWK) 1,110.00p +0.91%
Diploma (DPLM) 686.00p +0.88%
FTSE 250 - Fallers
De La Rue (DLAR) 896.00p -8.66%
Telecity Group (TCY) 783.00p -5.32%
Premier Oil (PMO) 328.00p -3.53%
Hochschild Mining (HOC) 159.60p -3.04%
International Personal Finance (IPF) 650.00p -2.77%
Ocado Group (OCDO) 434.40p -2.38%
TalkTalk Telecom Group (TALK) 261.70p -2.35%
Kazakhmys (KAZ) 256.20p -2.21%
NMC Health (NMC) 348.00p -1.97% |
| | UK Event Calendar | | Wednesday October 23
INTERIMS
Home Retail Group
INTERIM DIVIDEND PAYMENT DATE
International Public Partnerships Ltd., Interserve
INTERIM EX-DIVIDEND DATE
BAE Systems, Camkids Group, Central Asia Metals, Downing Planned Exit VCT 2011 (General Shares), Downing Planned Exit VCT 2011 (Low Carbon Shares), Downing Planned Exit VCT 2011 (Structured Shares), Goals Soccer Centres, Hansteen Holdings, Harvey Nash Group, JZ Capital Partners Ltd, Marshalls, Martin Currie Pacific Trust, Menzies(John), Morgan Advance Materials , Octopus VCT , ProVen Growth & Income VCT, ProVen VCT, Restore, Rolls-Royce Holdings, Senior, Tullett Prebon, Walker Greenbank, William Hill, Zhejiang Expressway Co 'H' Shares
QUARTERLY PAYMENT DATE
Assura Group Ltd.
QUARTERLY EX-DIVIDEND DATE
City of London Inv Trust
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Confidence Indicator (EU) (10:00)
Crude Oil Inventories (US) (15:30)
House Price Index (US) (15:00)
MBA Mortgage Applications (US) (12:00)
Import price data (US) (13:30)
Q3
GlaxoSmithKline, Norsk Hydro ASA
FINALS
ASOS
IMSS
British American Tobacco, Laird
SPECIAL EX-DIVIDEND PAYMENT DATE
Bailey (C.H.), Smiths Group
EGMS
MTI Wireless Edge Ltd.
AGMS
Arcontech Group, Haynes Publishing Group
TRADING ANNOUNCEMENTS
Sports Direct International
UK ECONOMIC ANNOUNCEMENTS
BBA Mortgage Lending Figures (09:30)
BoE Interest Rate Minutes (09:30)
Mansion House speech Andrew Bailey (19:30)
FINAL DIVIDEND PAYMENT DATE
Rank Group, UniVision Engineering Ltd.
FINAL EX-DIVIDEND DATE
Aeorema Communications, Barratt Developments, ISG, JPMorgan Emerging Markets Inv Trust, Mcbride, Smiths Group, Thorpe (F.W.), Wetherspoon (J.D.)
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks mixed as ECB applies capital buffer to banks - ECB unveils bank stress test details
- BoE releases meeting minutes
FTSE 100: -0.50%
DAX: -0.49%
CAC 40: -0.83%
FTSE MIB 0.57%
IBEX 35: -1.60%
Stoxx 600: -0.67%
European stocks were mixed as the region's central bank announced details of its asset quality review of banks.
The European Central Bank has applied an 8% capital buffer to 124 banks as part of stress tests.
The Eurozone's top banks will undergo a comprehensive batch of tests next year in an effort to build confidence in the sector.
The ECB is looking for risks in banks' balance sheets before taking over supervision of lenders from November 2014 as part of a European banking union.
BoE releases meeting minutes
The Bank of England (BoE) will release minutes of its latest meeting today, shedding further light on the central bank's decision to keep its monetary policy unchanged.
The BoE's Monetary Policy Committee earlier this month stuck to its pledge to keep interest rates at a record low of 0.5% until the unemployment rate falls to 7% - which is not expected for another three years.
The central bank also decided to leave its total asset purchases unchanged at £375bn.
The minutes will reveal which ministers voted in favour of the decision and will provide more details into the reason behind the BoE's move.
Also in the UK today, Loans for House Purchases report from the British Bankers' Association. Loans are expected to rise to 39,500 in September from 38,228 the prior month.
Orange, STMicroelectronics
Orange declined after the French telecommunications company posted a 7.7% fall in third-quarter earnings due to drop in sales.
STMicroelectronics NV slumped after the European semiconductor maker reported a $142m quarterly net loss.
International Consolidated Airlines rose after saying its Spanish carrier Iberia will return to profit next year. |
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| | US Market Report | | US close: S&P 500 hits fresh all-time high after payroll miss - Stocks rise as bets for taper pushed back
- Limited upside for US equities, says analyst
- Netflix pulls back from record high
Dow Jones: 0.49%
Nasdaq: 0.25%
S&P 500: 0.59%
US stocks registered decent gains on Tuesday amid hopes that the Federal Reserve will delay tapering quantitative easing after the economy added fewer jobs than expected in September.
The news pushed the S&P 500 to another record close of 1,754.67, up 0.6% on the day, while the Dow Jones Industrial Average rose 0.5% to 15,467.66, its best level since September 19th.
However, Analyst Jessica Hinds from Capital Economics said she sees limited upside for US equities from current levels despite potential delays at the Fed.
"What's more, the S&P 500 has risen a long way since early 2009, with the result that the cyclically-adjusted price/earnings ratio has more than doubled to a level that is well above its long-run average. Profit margins are also stretched and long overdue a cyclical correction. These headwinds should cap the upside for US equities over the next year."
Jobs report misses forecasts
Non-farm payrolls increased by just 148,000 in September, according to the US data this afternoon which was delayed by over two weeks due to the prolonged government shutdown. The consensus forecast was for a much bigger increase of 180,000.
While the unemployment rate fell from 7.3% to 7.2%, the data reinforced speculation that the Fed will refrain from tapering stimulus until next year, given that that the survey was taken before the fiscal stand-off in Washington which is said to have weighed heavily on economic growth.
Analyst Michael Gapen from Barclays said the report was on the "soft side" and that the recent pace of job growth is "unlikely to satisfy [Fed] policymakers". He said that the data reduces the likelihood of the Fed scaling back of stimulus in the near future, as he pushed back his forecast for the first taper of asset purchases to March 2014, from his previous prediction December 2013.
US Treasuries rallied on the news, rising the most in a month, while the yield on the benchmark 10-year bond dropped to 2.49% its lowest level since July 23rd. Gold prices meanwhile came close to a one-month high with bullion for immediate delivery touching $1,344.85 during the session.
Choppy day for Netflix
Video-streaming company Netflix swung sharply into the red, pulling back after hitting a record high earlier in the session after the company's net income surged 315% to $31.8m, ahead of estimates.
However, the firm dampened sentiment after saying that it will be many years before cable set-top boxes match the internet in terms of streaming volumes, sending shares lower by mid-morning. Meanwhile, reports that billionaire Carl Icahn had sold more than half his stake in the company also weighed on the shares after-hours.
Luxury accessories maker Coach fell after revealing that foreign exchange headwinds resulted in a drop in international sales. On a constant currency basis, however, those were up by 9%.
Data storage provider EMC slumped after lowering its full-year guidance for earnings per share and revenues.
United Technologies warned on its full-year sales guidance. As a result of the on-going weakness in military aerospace markets and the slow pace of recovery in Europe, the company now expects full-year sales of approximately $63bn, versus its previous estimate of $64bn.
Tech giant Apple finished slightly lower after unveiling a thinner version of its larger iPad.
Better-than-forecast construction data
Construction spending grew by 0.7% month-on-month in August (consensus: 0.4%). The previous month's estimate has been revised to show a rise of 1.4%, versus the preliminary estimate of a 0.6% gain.
Weekly retail store chain sales expanded at a 1.4% week-on-week pace, according to ICSC.
S&P 500 - Risers
Whirlpool Corp. (WHR) $146.19 +11.62%
Alcoa Inc. (AA) $9.36 +8.84%
QEP Resources Inc (QEP) $32.90 +5.82%
Forest Laboratories Inc. (FRX) $46.54 +5.03%
Goodyear Tire & Rubber Co. (GT) $22.04 +4.36%
Vulcan Materials Co. (VMC) $54.14 +4.32%
Lennar Corp. Class A (LEN) $36.17 +4.21%
Kimberly-Clark Corp. (KMB) $102.97 +4.19%
Masco Corp. (MAS) $20.50 +4.11%
Vertex Pharmaceuticals Inc. (VRTX) $77.62 +3.99%
S&P 500 - Fallers
Netflix Inc. (NFLX) $322.52 -9.15%
Coach Inc. (COH) $50.10 -7.53%
Zions Bancorporation (ZION) $27.87 -6.66%
Waters Corp. (WAT) $99.83 -6.01%
Pioneer Natural Resources Co. (PXD) $208.51 -5.29%
EMC Corp. (EMC) $24.04 -4.75%
Discover Financial Services (DFS) $51.80 -3.61%
Regions Financial Corp. (RF) $9.68 -3.59%
State Street Corp. (STT) $67.54 -3.25%
Seagate Technology Plc (STX) $49.14 -2.67%
Dow Jones I.A - Risers
Walt Disney Co. (DIS) $69.00 +2.06%
Procter & Gamble Co. (PG) $80.38 +1.79%
Caterpillar Inc. (CAT) $89.17 +1.68%
Wal-Mart Stores Inc. (WMT) $76.32 +1.56%
Johnson & Johnson (JNJ) $92.36 +1.27%
International Business Machines Corp. (IBM) $174.97 +1.22%
E.I. du Pont de Nemours and Co. (DD) $60.17 +1.19%
Verizon Communications Inc. (VZ) $51.14 +1.11%
Pfizer Inc. (PFE) $30.68 +0.92%
Exxon Mobil Corp. (XOM) $87.98 +0.86%
Dow Jones I.A - Fallers
United Technologies Corp. (UTX) $106.13 -1.38%
Cisco Systems Inc. (CSCO) $22.65 -1.22%
JP Morgan Chase & Co. (JPM) $53.62 -1.20%
Microsoft Corp. (MSFT) $34.58 -1.17%
General Electric Co. (GE) $26.02 -0.46%
Goldman Sachs Group Inc. (GS) $159.25 -0.33%
Intel Corp. (INTC) $24.07 -0.27%
Nike Inc. (NKE) $75.96 -0.17%
Merck & Co. Inc. (MRK) $46.47 -0.09%
Travelers Company Inc. (TRV) $86.71 -0.06%
Nasdaq 100 - Risers
Vertex Pharmaceuticals Inc. (VRTX) $77.62 +3.99%
Randgold Resources Ltd. Ads (GOLD) $75.56 +3.93%
Regeneron Pharmaceuticals Inc. (REGN) $304.49 +3.26%
Biogen Idec Inc. (BIIB) $250.60 +3.10%
Discovery Communications Inc. Class A (DISCA) $85.01 +2.66%
Fossil Group Inc (FOSL) $124.21 +2.53%
Mondelez International Inc. (MDLZ) $33.26 +2.37%
Akamai Technologies Inc. (AKAM) $53.39 +2.28%
Amgen Inc. (AMGN) $116.21 +2.26%
Sigma-Aldrich Corp. (SIAL) $85.00 +2.02%
Nasdaq 100 - Fallers
Netflix Inc. (NFLX) $322.52 -9.15%
Seagate Technology Plc (STX) $49.14 -2.67%
Nuance Communications Inc. (NUAN) $16.50 -2.31%
NetApp Inc. (NTAP) $40.71 -2.26%
Facebook Inc. (FB) $52.67 -2.18%
Check Point Software Technologies Ltd. (CHKP) $58.49 -1.98%
Wynn Resorts Ltd. (WYNN) $169.99 -1.81%
Texas Instruments Inc (TXN) $40.28 -1.73%
Baidu Inc. (BIDU) $158.57 -1.64%
Cisco Systems Inc. (CSCO) $22.65 -1.22% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: Energy companies, Shale gas, RBS Sir John Major, former Conservative prime minister, piled pressure on David Cameron to act against the "big six" energy companies, suggesting they should be hit with a windfall tax. Major said it was "unacceptable" that energy companies were raising prices up to 10 per cent, leaving some people with a choice between eating and heating their homes in the event of a cold winter. His comments are a political gift to Labour, echoing some of Ed Miliband's criticisms in the Financial Times (FT) of "predatory" energy companies and the need for the state to intervene in the event of market failures, the FT writes.
A French state-backed energy giant has thrown its weight behind Britain's shale gas rush after agreeing to help fund a new drilling programme in Lancashire and Wales. GDF Suez has formed a joint venture with Dart Energy to drill up to 14 wells exploring for both coal bed methane (CBM) — gas strapped in underground coal seams — and for shale gas. It is due to start at the end of the year, The Times reports.
A big hedge fund emerged as the leading private shareholder in Royal Mail yesterday in a disclosure that may rekindle criticism of the sell-off. The Children's Investment Fund, the hedge fund and activist investor that famously was once described as a locust, has emerged as the largest shareholder, with a 5.8% stake in the postal service. The government has been forced on to the defensive after shares in Royal Mail soared from 330p, when it floated 12 days ago, to as high as 530p, prompting criticism that it had been sold too cheaply, according to The Times.
A trio of Scottish investors has joined forces with one of New York's most-powerful hedge funds to buy an estimated £250m debt package from Royal Bank of Scotland. Urbicus, a specialist debt business set up by former Noble Group Chief Executive Ben Thomson and Hazeldene's Mark Shaw, has teamed up with Elliot Associates to acquire part of a debt that backed the troubled Glanmore property fund, The Scotsman reports.
Marks & Spencer is planning to open 150 new food stores in the next three years as its groceries continue to outsell clothes and home-wares. Marc Bolland, the Chief Executive, said he wanted to double the pace of expansion in food as the company continued to take market share from rivals. M&S called a halt to new clothing and home-wares stores earlier this year. The retailer is also taking its standalone food stores into Europe via its first international food franchise deal after a successful trial of six stores in Holland, The Guardian says.
Ryanair is to continue its transformation by offering new fares and services aimed at pulling in business travellers and families. The no-frills airline will start selling higher-priced flexible tickets aimed at the business market, allowing passengers to change flight more easily without further penalty, The Guardian says. | | |
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