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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: Markets rebound after China data, Sports Direct drops - Chinese HSBC PMI at seven-month high
- Sports Direct founder sells 106m-pound stake
- WPP rises after strong third quarter
techMARK 2,627.78 +0.13%
FTSE 100 6,695.11 +0.31%
FTSE 250 15,538.56 +0.28%
UK markets rebounded on Thursday morning with buying sparked by some improving data from China.
Financial Trader Shavaz Dhalla from Spreadex said that bourses across Europe "opened confidently today" as the Chinese data "provided an excuse for investors to dive back into the equity markets in full throttle".
The FTSE 100 pulled back on Wednesday, recording its first day in the red in 10 trading sessions, as traders took profits after the index hit a five-month high the day before. Concerns over a spike in money-market rates in China and nervousness ahead of a round of stress tests for European banks dampened sentiment across markets yesterday.
"Although some analysts have pointed out that they expect a period of consolidation owing to the near all-time highs of equities as well as restrictions in the flow of cash from China, investors nevertheless still think that there are bargains out there and have adopted a buying mentality today," Dhalla said.
Indices across Europe rose early on after a key gauge of Chinese manufacturing activity rose to a seven-month high. The Chinese HSBC manufacturing purchasing managers' index (PMI) improved from 50.2 to 50.9 in October, ahead of the consensus forecast for 50.4.
"China's growth recovery is becoming consolidated into the fourth quarter following the bottoming out in the third quarter" said HSBC economist Qu Hongbin. "This momentum is likely to continue in the coming months, creating favourable conditions for speeding up structural reforms."
PMI's from the Eurozone and the US are due out later on today, along with initial weekly jobless claims in the the States.
Sports Direct drops as founder trims stake
Sports Direct, the High Street retailer which impressed the market with its first-half trading update yesterday, sunk sharply after revealing today that MASH Holdings, a company wholly owned by founder and Deputy Chairman Mike Ashley, sold 16m shares in the company at 662.5p each, equal to a 2.7% stake. The £106m sale reduced MASH's holding to 61.7%.
Advertising giant WPP advanced after reporting a 7.2% rise in revenue to £8.2bn pounds in the first nine months on the back of acquisitions and new business wins.
Power systems group Rolls-Royce rose after winning a contract for the supply of thrusters and deck machinery for use in drilling offshore Korea.
Consumer products giant Unilever sunk early on after the firm reported underlying sales growth of 3.2% during the third quarter, well below the 5% growth seen in the first half after a slowdown in emerging-market growth.
Copper miner Kazakhmys gained after saying that copper cathode equivalent output is on track to meet the upper-end of guidance after a decent third quarter. |
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| FTSE 100 - Risers
WPP (WPP) 1,343.00p +2.28%
Rolls-Royce Holdings (RR.) 1,167.00p +2.01%
Lloyds Banking Group (LLOY) 79.17p +1.62%
Royal Bank of Scotland Group (RBS) 357.70p +1.59%
Weir Group (WEIR) 2,377.00p +1.45%
Mondi (MNDI) 1,124.00p +1.35%
Vedanta Resources (VED) 1,079.00p +1.31%
Fresnillo (FRES) 1,006.00p +1.21%
Resolution Ltd. (RSL) 354.20p +1.20%
Old Mutual (OML) 204.80p +1.19%
FTSE 100 - Fallers
Sports Direct International (SPD) 674.50p -5.27%
Severn Trent (SVT) 1,844.00p -1.65%
Diageo (DGE) 1,999.50p -1.45%
Randgold Resources Ltd. (RRS) 4,589.00p -1.10%
William Hill (WMH) 395.40p -0.90%
RSA Insurance Group (RSA) 126.20p -0.63%
Unilever (ULVR) 2,483.00p -0.52%
United Utilities Group (UU.) 713.00p -0.49%
Aberdeen Asset Management (ADN) 423.50p -0.49%
Centrica (CNA) 358.70p -0.47%
FTSE 250 - Risers
Ophir Energy (OPHR) 325.70p +8.78%
Ferrexpo (FXPO) 191.70p +3.79%
Kazakhmys (KAZ) 260.00p +3.42%
Essar Energy (ESSR) 123.70p +2.91%
Home Retail Group (HOME) 197.50p +2.81%
Telecity Group (TCY) 797.50p +2.31%
Hochschild Mining (HOC) 163.20p +2.06%
IP Group (IPO) 151.90p +1.95%
TR Property Inv Trust (TRY) 230.00p +1.86%
African Barrick Gold (ABG) 174.50p +1.81%
FTSE 250 - Fallers
COLT Group SA (COLT) 120.40p -2.75%
Debenhams (DEB) 107.90p -2.53%
Alent (ALNT) 346.30p -2.45%
Spirent Communications (SPT) 120.90p -2.11%
De La Rue (DLAR) 872.00p -1.52%
Ladbrokes (LAD) 186.40p -1.48%
KCOM Group (KCOM) 97.55p -1.12%
Oxford Instruments (OXIG) 1,305.00p -1.06%
Ocado Group (OCDO) 429.60p -1.01% |
| | UK Event Calendar | | Thursday October 24
INTERIMS
Bloomsbury Publishing, Stobart Group Ltd.
INTERIM DIVIDEND PAYMENT DATE
BrainJuicer Group, Derwent London, Invesco Perpetual UK Small Companies Inv Trust, Morgan Sindall Group, Premier Farnell
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Bloomberg Consumer Confidence (US) (14:45)
Continuing Claims (US) (13:30)
Initial Jobless Claims (US) (13:30)
New Homes Sales (US) (15:00)
Job Openings and Labor Turnover Survey (US)
EU Summit (to 25/10)
Preliminary purchasing managers' surveys (EZ) (08:28)
Q3
Shire Plc, Torchmark Corp., Unilever
FINALS
Debenhams, Tracsis
IMSS
AZ Electronic Materials SA (DI), Go-Ahead Group, Inchcape, Kazakhmys, Promethean World
SPECIAL DIVIDEND PAYMENT DATE
BrainJuicer Group
EGMS
Queenco Leisure International Ltd. GDR (Reg S)
AGMS
BHP Billiton, Go-Ahead Group, Lucky Cement Ltd GDR (Reg S), Murgitroyd Group, Rangers International Football Club, Thorntons
TRADING ANNOUNCEMENTS
WPP
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Surveys (11:00)
BoE Governor Carney to speak at event (17:45)
FINAL DIVIDEND PAYMENT DATE
Oxford Instruments
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise as Spain's jobless rate declines - Spain's unemployment rate drops
- Eurozone PMI Composite
- China PMI Manufacturing
- BoE's Carney to speak
FTSE 100: 0.30%
DAX: 0.52%
CAC 40: 0.25%
FTSE MIB: 0.63%
IBEX 35: 0.62%
Stoxx 600: 0.35%
European stocks rebounded from yesterday's slump as Spain's unemployment rate fell more than expected and as investors waited the release of Eurozone purchasing managers' index (PMI) data.
Spain's jobless rate declined in the third quarter to 26% from 26.3% in the previous quarter, compared to the consensus of 26.1%, the National Statistics Institute revealed.
The busy tourist season helped to boost employment in the nation between July and September, the report said.
The country's central bank yesterday estimated that Spain's economy grew for the first time in two years in the third quarter, exiting the second recession since 2008.
In another report to be released today, the Eurozone PMI Composite, which includes manufacturing and services activity, is predicted to have slowed slightly to 52.4 in October from 52.2 last month. A reading above 50 signals expansion.
It follows the release of China's manufacturing PMI which rose to 50.9 in October from 50.2 last month, beating the 50.4 forecast.
It pointed to signs the recovery is gaining momentum in the world's second largest economy.
Stocks fell yesterday in response to a report that sparked fears over China's banking sector. The report showed debt write-offs at China's biggest lenders more than tripled in the first half.
In the US, initial jobless claims figures for the week ended October 18th will be released later today. It comes two days after a report showed non-farm payrolls increased by 148,000 in September, missing the consensus for 180,000.
The report had been delayed by over two weeks due to the prolonged government shutdown.
The weaker-than-forecast jobs data also reinforced expectations that the Federal Reserve will hold off on tapering its monetary stimulus.
"By now we know that we are almost certain to not see a taper next week when the FOMC reconvene to discuss when to begin trimming back on the current $85bn monthly asset purchase scheme," said Craig Erlam, Market Analyst at Alpari.
This afternoon Bank of England Governor Mark Carney will speak at the Financial Times 125th anniversary event in London.
He is likely to drive home the Bank's vow to keep interest rates at the current low of 0.5% until the unemployment rate falls to 7%.
Minutes of the Bank's last meeting, released on Wednesday, showed a unanimous vote to maintain the current monetary policy.
Daimler, ABB
Daimler gained after the maker of luxury vehicles reported third-quarter earnings that beat analysts' forecasts.
ABB climbed after the maker of power transformers reported earnings that topped estimates amid growing orders in China and Germany.
Celesio rallied after McKesson Corp. agreed to buy the German drug wholesaler for €3.9bn.
Credit Suisse Group fell after the Swiss bank reported second quarter profit that missed analysts' expectations.
Other asset classes increase
The euro rose 0.05% to $1.3783.
Brent crude futures were up $0.268 to $108.090 per barrel on the ICE. |
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| | US Market Report | | US close: Stocks pull back as Caterpillar disappoints - Caterpillar sinks after poor Q3 results, guidance
- Boeing jumps after lifting forecasts
- S&P 500 pulls back from record high
Dow Jones: -0.35%
Nasdaq: -0.57%
S&P 500: -0.47%
US markets finished with moderate losses on Wednesday with the S&P 500 snapping a five-day winning streak as investors weighed mixed corporate earnings, including some gloomy results from bellwether Caterpillar.
"If Caterpillar is a harbinger for the US recovery story, the fact that the earnings for the world's largest machinery-maker have failed to meet consensus expectations over the past five quarters should be telling," said Brenda Kelly, Senior Market Strategist at IG.
The bullish mood was also dampened by concerns over the Chinese economy after a report said that debt write-offs at China's biggest lenders had tripled in the first half. Meanwhile, the People's Bank of China refrained from adding liquidity to the market through new reverse repurchase operations which led to a sharp increase in the country's benchmark money market rate.
This gave investor an excuse to take profits after a solid run as of late which sent the S&P 500 to a record close of 1,754.67 the night before. Over the last two weeks alone, the benchmark index has risen by an impressive 6%.
According to data compiled by Bloomberg, the recent run in stock markets has pushed the average price-to-earnings multiple of the S&P 500 to 15.9, the highest since late-2009.
Caterpillar drops after cutting forecasts
Industrial machinery manufacturer Caterpillar was a heavy faller on Wednesday after cutting its full-year guidance for revenue and profit. The company reported a 44% drop in earnings in the third quarter as weakness in the mining sector hit demand for its products.
Chipmaker Broadcom plunged despite beating analysts' forecasts with its third-quarter results, as it estimated fourth-quarter revenue that fell short of expectations. The latter revelation was broadly similar to warnings out of other chip outfits recently, such as ARM Holdings or ST Microelectronics overseas.
Networking equipment maker Juniper Networks fell sharply after saying that sales in its fourth quarter will be between $1.2bn and $1.23bn, disappointing analysts who were expecting $1.23bn.
Aircraft manufacturer Boeing jumped after raising its full-year earnings forecast following a strong third quarter. The company delivered 170 commercial plans during the period, up from 149 the year before, helping it to top earnings expectation for the eighth quarter in a row.
College chain Apollo rocketed after adjusted fourth-quarter profits came in at 55 cents, well ahead of the 25 cents estimate.
Economic data comes in mixed
US mortgage applications fell 0.6% in the week to October 18th, compared to a rise of 0.3% the previous week, according to data from the Mortgage Bankers Association.
Import prices increased by 0.2% month-on-month in September, following a 0.2% gain the month before and in line with consensus forecasts.
The house price index rose 0.3% in August, below the 1% gain the month before and under the 0.8% rise expected.
S&P 500 - Risers
Corning Inc. (GLW) $17.52 +14.14%
Safeway Inc. (SWY) $35.58 +8.15%
J.C. Penney Co. Inc. (JCP) $7.04 +7.48%
C.R. Bard Inc. (BCR) $135.80 +6.96%
Norfolk Southern Corp. (NSC) $86.06 +6.77%
NASDAQ OMX Group Inc. (NDAQ) $35.53 +5.82%
Boeing Co. (BA) $129.02 +5.34%
Northrop Grumman Corp. (NOC) $105.56 +4.04%
Motorola Solutions Inc (MSI) $62.40 +3.26%
Raytheon Co. (RTN) $78.49 +2.99%
S&P 500 - Fallers
Altera Corp. (ALTR) $32.30 -13.45%
FMC Technologies Inc. (FTI) $52.80 -8.60%
Juniper Networks Inc. (JNPR) $19.05 -6.43%
Caterpillar Inc. (CAT) $83.76 -6.07%
Nabors Industries Ltd. (NBR) $16.86 -5.44%
F5 Networks Inc. (FFIV) $86.31 -4.79%
Airgas Inc. (ARG) $107.00 -4.67%
Newmont Mining Corp. (NEM) $27.29 -4.11%
NetApp Inc. (NTAP) $39.06 -4.05%
Denbury Resources Inc. (DNR) $18.32 -3.93%
Dow Jones I.A - Risers
Boeing Co. (BA) $129.02 +5.34%
Procter & Gamble Co. (PG) $80.91 +0.66%
International Business Machines Corp. (IBM) $175.77 +0.46%
Home Depot Inc. (HD) $75.08 +0.29%
United Technologies Corp. (UTX) $106.39 +0.24%
Merck & Co. Inc. (MRK) $46.56 +0.19%
AT&T Inc. (T) $35.28 +0.14%
E.I. du Pont de Nemours and Co. (DD) $60.22 +0.08%
Dow Jones I.A - Fallers
Caterpillar Inc. (CAT) $83.76 -6.07%
Microsoft Corp. (MSFT) $33.76 -2.37%
Cisco Systems Inc. (CSCO) $22.25 -1.74%
JP Morgan Chase & Co. (JPM) $52.75 -1.62%
Intel Corp. (INTC) $23.74 -1.40%
Walt Disney Co. (DIS) $68.12 -1.28%
General Electric Co. (GE) $25.70 -1.23%
McDonald's Corp. (MCD) $94.21 -0.96%
Goldman Sachs Group Inc. (GS) $157.74 -0.95%
Verizon Communications Inc. (VZ) $50.82 -0.63%
Nasdaq 100 - Risers
Google Inc. (GOOG) $1,031.41 +2.42%
Netflix Inc. (NFLX) $330.24 +2.39%
Intuitive Surgical Inc. (ISRG) $374.98 +1.81%
Alexion Pharmaceuticals Inc. (ALXN) $109.66 +1.80%
Sigma-Aldrich Corp. (SIAL) $86.22 +1.44%
Gilead Sciences Inc. (GILD) $69.01 +1.35%
Ross Stores Inc. (ROST) $75.68 +1.30%
Fossil Group Inc (FOSL) $125.79 +1.27%
Equinix Inc. (EQIX) $168.65 +0.99%
Apple Inc. (AAPL) $524.96 +0.98%
Nasdaq 100 - Fallers
Altera Corp. (ALTR) $32.30 -13.45%
F5 Networks Inc. (FFIV) $86.31 -4.79%
Tesla Motors Inc (TSLA) $164.50 -4.10%
NetApp Inc. (NTAP) $39.06 -4.05%
Microchip Technology Inc. (MCHP) $38.94 -3.90%
Applied Materials Inc. (AMAT) $17.40 -3.71%
Xilinx Inc. (XLNX) $44.88 -3.42%
Randgold Resources Ltd. Ads (GOLD) $73.01 -3.37%
Avago Technologies Ltd. (AVGO) $45.39 -3.16%
Maxim Integrated Products Inc. (MXIM) $28.92 -3.08% |
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| | Newspaper Round Up | | Thursday newspaper round-up: China rates, Bank stress tests, Scottish Power China's money rates shot up on Thursday after the central bank withdrew cash from the financial system, fuelling worries that the world's second-biggest economy might see a replay of a liquidity squeeze that rattled global markets earlier this year, the Financial Times explains.
According to the Financial Times, Mario Draghi warned on Wednesday that some banks in Europe would need to fail a series of European Central Bank stress tests in order to prove the "credibility" of the year-long review. "The blunt comments by the ECB president raised pressure on EU leaders to earmark public money that could in extreme cases be used to recapitalise struggling lenders," the paper writes.
Keith Anderson, the Chief Corporate Officer of ScottishPower has hit back at calls to place a windfall tax on energy companies after making a loss this year, "which it blamed on having to fund the government's expanding social and environmental programmes", reports The Times.
Unite is set to make a "last-ditch attempt" to save the Grangemouth petrochemicals plant as it attempts to salvage 800 jobs, according to The Telegraph. Representatives from the trade union are expected to re-open talks this morning with owner Ineos after just half of the employees accepts it "survival plan" which included bonus cuts, changes to working terms and reduced pensions, countered by a £15,000 one-off payment.
London's economy is doing even better after the banking crash than during the bubble, while nearly every other part of the UK has seen its economy shrink by comparison. Exclusive findings published by The Guardian show that London and the south-east are racing away from the rest of the UK at a pace that would have seemed almost incredible at the height of the financial panic.
The National Trust is prepared to consider fracking on its land but has all but ruled out wind farms, according to the head of the conservation charity. Dame Helen Ghosh, the trust's Director-General, told The Times in an interview that it was keeping an open mind on drilling for natural gas and was waiting to see what evidence emerged about its environmental impact. She added that gas was "less bad" than coal in terms of carbon dioxide emissions.
Capacity constraints are starting to bite in the housebuilding sector, the Bank of England said yesterday, amid fresh evidence of a pick-up in the wider economy. The Bank's regional agents said that they were hearing increasing reports of skills shortages and problems with the supply of raw materials. The warning came as banks reported the strongest month for net lending to businesses for four years, The Times reports. | | |
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