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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: FTSE driven higher by BP - FTSE opens higher than expected
- Gains driven by BP after strong quarter
- Insurance firms also provide a boost
techMARK 2,645.08 +0.16%
FTSE 100 6,758.68 +0.49%
FTSE 250 15,458.32 +0.19%
The FTSE 100 has so far made decent gains this morning, beating expectations of a flat start ahead of the release of important US and UK data, as BP helped drive oil stocks higher.
Also providing a lift were insurance firms, particularly Admiral, after the St Jude storm appears to have caused less damage that had been feared.
The UK's six biggest energy providers will today stand before a group of MPs to face criticism over recent price rises.
Today's data releases includes mortgage approvals and consumer credit, as well as M4 money supply and sterling lending.
Germany's consumer confidence figures will also be unveiled. GfK's forward-looking consumer sentiment indicator is pegged to climb to 7.2 in November from 7.1 the prior month.
Strong focus on US data and Fed meeting
Both retail sales and consumer confidence figures in the US will be released later today, with the former expected to remain little changed, while the latter is tipped to fall in October. The index for consumer sentiment will drop to 75 this month from 79.7 in September, economists forecast.
Later on the Fed will kick off its two-day policy meeting and will announce its decision on whether to alter its monetary policy a day later.
"Ever since the September meeting, investors have been left guessing when the Fed will first taper, with most guesses ranging from December to March," Craig Erlam, Market Analyst at Alpari, pointed out.
"Unlike earlier this year, the Fed hasn't given clear guidance about when this will now happen and may use tomorrow's statement to provide it."
BP in top spot after divi boost
BP has raised its dividend 5.6% to 9.5 cents a share after third quarter earnings fell less than expected. Profit adjusted for one-time items and inventory changes declined to $3.7bn from $5bn a year earlier, beating $3.4bn forecast.
Wood Group rose on the news it has secured a two-year contract extension from Shell UK to deliver integrated services to two gas plants in Scotland, continuing a previous contract awarded in 2007. The deal is the eighth North Sea contract extension awarded to the group in the past year.
Meanwhile, leading the downside was Lloyds Banking Group, which swung to a pre-tax profit of £1.7bn in the first nine months of the year from a loss of £607m in the same period in 2012, but saw a £750m increase in its PPI bill, prompting shares firmly lower. Altogether, the company has paid £8bn in relation to PPI.
Standard Chartered was also lower after it revealed it had cut around 2,000 jobs this year, with the trend set to continue. The firm 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 resilient performance despite an uncertain macro environment.
ITV shares were hit by a downgrade from Berenberg, which reduced its rating on the stock from 'hold' to 'sell', although increased its target from 91p to 155p.
On the FTSE 250, transport group Stagecoach revealed trading had worsened in UK rail but improved in the US Megabus unit in the first 24 weeks of the year. Ahead of a meeting with analysts and on the day the East Coast franchise prospectus is released, the group said trading remained "satisfactory" and that there was "no significant change" to expected annual earnings. |
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| | FTSE 100 - Risers
BP (BP.) 474.15p +4.88%
Admiral Group (ADM) 1,259.00p +1.53%
GlaxoSmithKline (GSK) 1,644.50p +1.23%
Royal Dutch Shell 'A' (RDSA) 2,162.50p +1.19%
Royal Dutch Shell 'B' (RDSB) 2,265.50p +1.14%
Persimmon (PSN) 1,238.00p +1.14%
HSBC Holdings (HSBA) 689.90p +1.02%
BAE Systems (BA.) 452.20p +1.01%
Prudential (PRU) 1,275.00p +0.95%
Petrofac Ltd. (PFC) 1,487.00p +0.95%
FTSE 100 - Fallers
Royal Bank of Scotland Group (RBS) 360.00p -2.31%
Lloyds Banking Group (LLOY) 77.89p -2.17%
Randgold Resources Ltd. (RRS) 4,766.00p -1.75%
Coca-Cola HBC AG (CDI) (CCH) 1,796.00p -1.48%
ARM Holdings (ARM) 958.50p -1.39%
ITV (ITV) 189.40p -1.30%
Standard Chartered (STAN) 1,514.50p -1.27%
Aberdeen Asset Management (ADN) 448.50p -1.23%
Tullow Oil (TLW) 949.50p -0.78%
Fresnillo (FRES) 1,034.00p -0.77%
FTSE 250 - Risers
Barr (A.G.) (BAG) 523.00p +4.18%
COLT Group SA (COLT) 125.30p +3.98%
Thomas Cook Group (TCG) 141.60p +3.43%
Bovis Homes Group (BVS) 780.00p +2.70%
Petra Diamonds Ltd.(DI) (PDL) 115.70p +1.85%
Centamin (DI) (CEY) 51.85p +1.67%
Redrow (RDW) 259.00p +1.65%
Chemring Group (CHG) 222.30p +1.51%
Barratt Developments (BDEV) 336.80p +1.35%
Telecom Plus (TEP) 1,562.00p +1.30%
FTSE 250 - Fallers
Regus (RGU) 196.50p -4.05%
Domino Printing Sciences (DNO) 679.00p -2.02%
Kenmare Resources (KMR) 21.58p -1.91%
F&C Asset Management (FCAM) 103.10p -1.81%
Hochschild Mining (HOC) 171.30p -1.61%
PayPoint (PAY) 1,025.00p -1.44%
AZ Electronic Materials SA (DI) (AZEM) 278.90p -1.10%
Brown (N.) Group (BWNG) 504.50p -1.08%
Provident Financial (PFG) 1,593.00p -1.06%
Supergroup (SGP) 1,168.00p -1.02%
FTSE TechMARK - Risers
SDL (SDL) 258.25p +1.27%
Ricardo (RCDO) 595.00p +1.02%
Anite (AIE) 88.25p +0.86%
RM (RM.) 118.00p +0.43%
IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 178.82 +0.11%
FTSE TechMARK - Fallers
Consort Medical (CSRT) 880.00p -1.12%
Wolfson Microelectronics (WLF) 145.00p -1.02%
Vectura Group (VEC) 112.00p -0.89%
E2V Technologies (E2V) 143.00p -0.69%
Sepura (SEPU) 146.50p -0.34% |
| | UK Event Calendar | | Tuesday October 29
INTERIMS
Braemar Shipping Services
INTERIM DIVIDEND PAYMENT DATE
Smith & Nephew, Standard Life
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Confidence (US) (14:00)
GFK Consumer Confidence (GER) (07:00)
Producer Price Index (US) (12:30)
Retail sales (US) (12:30)
S&P Case Shiller 2-city HPI (US) (13:00)
Q3
BP, Wolfson Microelectronics
FINALS
Redefine International
EGMS
Air China Ltd., Datang International Power Generation Co Ltd.
AGMS
Clinigen Group, eXpansys, Ideagen, In-Deed Online, Indus Gas Ltd., Pacific Horizon Inv Trust, ViaLogy
UK ECONOMIC ANNOUNCEMENTS
Consumer Credit (09:30)
M4 Money Supply (09:30)
M4 Sterling Lending (09:30)
Mortgage Approvals (09:30)
FINAL DIVIDEND PAYMENT DATE
Anite
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise ahead of Federal Reserve meeting - Fed begins policy meeting
- US and German consumer confidencedata out
- US retail sales report ahead this afternoon
FTSE 100: 0.37%
DAX: 0.04%
CAC 40: 0.27%
FTSE MIB: 0.65%
IBEX 35: 0.30%
Stoxx 600: 0.09%
European stocks opened higher before the Federal Reserve kicked off its two-day policy meeting.
The Fed is expected to announce that it will maintain its $85bn in monthly asset purchases and keep the interest rate at 0.25% after the meeting wraps up tomorrow.
Most economists predict the central bank will hold off on tapering stimulus until March 2014.
"Ever since the September meeting, investors have been left guessing when the Fed will first taper, with most guesses ranging from December to March," Craig Erlam, Market Analyst at Alpari UK, pointed out.
"Unlike earlier this year, the Fed hasn't given clear guidance about when this will now happen and may use tomorrow's statement to provide it."
Acting as a backdrop is the release of US retail sales and consumer confidence figures today.
US advanced retail sales for September are expected to remain little changed, according to consensus.
Consumer confidence in the world's biggest economy, however, is tipped to fall in October. The index for consumer sentiment will drop to 75 this month from 79.7 in September, economists forecast.
Germany's consumer confidence figures will also be unveiled. GfK's forward-looking consumer sentiment indicator is pegged to climb to 7.2 in November from 7.1 the prior month.
French Statistics Institute - INSEE's - business confidence gauge for the month of October has come in at 85.0, versus economists forecasts for a reading of 86.0 and last month's print of 85.0.
Standard Chartered, Deutsche Bank
Standard Chartered slumped after saying third-quarter revenue dropped due to weakness in its corporate-banking business.
Deutsche Bank declined after reporting a fall in net income in the three months through September, missing analysts' estimates. It registered a 94% drop in third quarter income.
UBS slid as it said it probably won't be able to reach its profitability goal in 2015 after the Swiss regulator demanded the lender hold more capital for risks related to litigation.
Europe's largest tiremaker Michelin & Cie fell as sales in the third quarter dropped, falling short of analysts' forecasts.
Other asset classes fall
The euro was down 0.07% to $1.3776.
Brent crude futures dipped $0.238 to $109.350 per barrel on the ICE. |
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| | US Market Report | | US close: Apple shares dip after the close - Apple falls 1.22 per cent after close on lower margin forecasts
- Philip Morris to price benchmark debt offering
- $32bn two-year debt auction well received
Dow Jones Industrials: -0.01%
Nasdaq Composite: -0.09%
SP 500: 0.13%
A weaker-than-expected report on US factory production sent stocks in the world's biggest economy falling at the start on Monday, but they more or less managed to stage a comeback by the end of the session. That came on the back of the media hype which always precedes quarterly results out of Apple and Wednesday's US Federal Reserve policy meeting outcome.
In the event Apple once again managed to beat analysts' forecasts, but its 37% gross margin forecast for the current quarter was lower than last year's 38.6%.
Factory output rose 0.1% in September after a revised 0.5% increase in August as the partial government shut-down halted manufacturing. Economists had forecast a 0.3% jump.
Total industrial production advanced 0.6% in September after a 0.4% gain a month earlier as higher temperatures drove up electricity use. The consensus estimate was for a gain of 0.4%.
"September's US industrial production figures aren't as good as they look, but at least they suggest that the economy had some momentum ahead of October's government shut-down," according to Capital Economics.
"Of course, October's figures are likely to be weak as the government shut-down probably reduced activity for some private producers. But beyond that, we expect a steady, albeit unspectacular, improvement in industrial production."
Also weighing on sentiment initially was a surprise 5.6% month-on-month drop in the NAR's pending home sales index for September. An unchanged reading had been expected.
Ironically, both data points only fed expectations that the US central bank was on hold for the foreseeable future.
Economists expect the Fed will maintain its monthly $85bn stimulus programme and hold interest rates at 0.25%.
A tapering of quantitative easing is not expected now until March 2014.
"Usually, the prospect of Fed tapering is enough to move investors to the sidelines," said Craig Erlam, Market Analyst at Alpari UK.
"However, on this occasion that has so far not been the case, which clearly highlights the fact that investors do not see this as a likely outcome on Wednesday."
In company news, Tribune Co's shares rose following a Reuters report that said the media firm was launching a $4.1bn credit via a lender meeting on Thursday. JP Morgan will help lead the new credit, which backs Tribune's acquisition of Local TV and refinances existing Tribune debt.
Merck & Co Inc slumped after reporting better-than-expected third-quarter earnings due to cost cuts but lower sales of its Januvia diabetes treatment.
From a sector standpoint the best performance is now to be seen in the following industrial groups: Aluminum (2.83%), non-durable household goods (2.05%) and delivery services (1.95%).
From a sector standpoint the best performance was put in by the following industrial groups: Aluminum (3.23%), Delivery services (1.55%) and Personal products (1.54%).
Small rise in West Texas crude futures
The 10-year government yield was little changed at the end of trading, at 2.52%.
Front month West Texas crude futures fell by 23 cents to the $98.45/barrel mark on the NYMEX.
S&P 500 - Risers
J.C. Penney Co. Inc. (JCP) $7.39 +8.84%
Bristol-Myers Squibb (BMY) $52.02 +6.66%
CF Industries Holdings Inc. (CF) $218.36 +4.17%
International Game Technology (IGT) $19.38 +3.75%
Alcoa Inc. (AA) $9.56 +3.46%
Teradata Corp. (TDC) $45.89 +3.19%
Hershey Foods Corp. (HSY) $100.14 +3.12%
Diamond Offshore Drilling Inc. (DO) $63.01 +2.84%
T. Rowe Price Group Inc. (TROW) $77.78 +2.68%
Cognizant Technology Solutions Corp. (CTSH) $88.84 +2.49%
S&P 500 - Fallers
Roper Industries Inc. (ROP) $124.26 -6.60%
Edwards Lifesciences Corp. (EW) $73.24 -4.96%
Netflix Inc. (NFLX) $314.00 -4.28%
Merck & Co. Inc. (MRK) $45.35 -2.56%
First Solar Inc. (FSLR) $51.48 -2.50%
Charles Schwab Corp. (SCHW) $23.01 -2.33%
Cliffs Natural Resources Inc. (CLF) $24.42 -2.28%
Garmin Ltd. (GRMN) $47.80 -2.25%
Eastman Chemical Co. (EMN) $76.26 -2.16%
NRG Energy Inc. (NRG) $29.48 -2.09%
Dow Jones I.A - Risers
Procter & Gamble Co. (PG) $81.30 +1.62%
Coca-Cola Co. (KO) $39.61 +1.49%
Wal-Mart Stores Inc. (WMT) $77.14 +1.39%
AT&T Inc. (T) $35.57 +1.08%
General Electric Co. (GE) $26.09 +0.81%
McDonald's Corp. (MCD) $95.37 +0.62%
Travelers Company Inc. (TRV) $87.11 +0.55%
Intel Corp. (INTC) $24.36 +0.52%
Pfizer Inc. (PFE) $30.74 +0.42%
Cisco Systems Inc. (CSCO) $22.55 +0.42%
Dow Jones I.A - Fallers
Merck & Co. Inc. (MRK) $45.35 -2.56%
United Technologies Corp. (UTX) $105.99 -1.42%
Boeing Co. (BA) $129.88 -1.00%
Caterpillar Inc. (CAT) $84.28 -0.58%
E.I. du Pont de Nemours and Co. (DD) $61.56 -0.55%
Microsoft Corp. (MSFT) $35.57 -0.45%
Goldman Sachs Group Inc. (GS) $161.45 -0.39%
Walt Disney Co. (DIS) $69.00 -0.38%
Verizon Communications Inc. (VZ) $50.57 -0.28%
Nike Inc. (NKE) $75.51 -0.25%
Nasdaq 100 - Risers
Cognizant Technology Solutions Corp. (CTSH) $88.84 +2.49%
Broadcom Corp. (BRCM) $27.03 +2.37%
Texas Instruments Inc (TXN) $41.01 +1.94%
F5 Networks Inc. (FFIV) $84.28 +1.90%
Randgold Resources Ltd. Ads (GOLD) $78.18 +1.89%
Linear Technology Corp. (LLTC) $39.77 +1.79%
Intuitive Surgical Inc. (ISRG) $375.60 +1.75%
Sandisk Corp. (SNDK) $70.22 +1.74%
Amgen Inc. (AMGN) $118.33 +1.73%
Express Scripts Holding Co (ESRX) $61.91 +1.69%
Nasdaq 100 - Fallers
Netflix Inc. (NFLX) $314.00 -4.28%
Tesla Motors Inc (TSLA) $162.86 -4.01%
Facebook Inc. (FB) $50.23 -3.31%
Baidu Inc. (BIDU) $154.12 -3.29%
Garmin Ltd. (GRMN) $47.80 -2.25%
Maxim Integrated Products Inc. (MXIM) $29.55 -1.83%
O'Reilly Automotive Inc. (ORLY) $123.71 -1.71%
Starbucks Corp. (SBUX) $78.71 -1.56%
Equinix Inc. (EQIX) $168.94 -1.52%
Charter Communications Inc. (CHTR) $136.54 -1.47% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: China, G4S, British businesses China's central bank has allayed fears of a cash crush by injecting money into the financial system for the first time in two weeks, but it has also steered interest rates to a higher level in a signal of mild monetary tightening. The People's Bank of China added Rmb13bn (2.1bn dollars) to the economy via open-market operations on Tuesday, having refrained from any liquidity injections since mid-October. It was a small amount, but was still seen as a clear indication that the central bank does not want a replay of the liquidity squeeze that rattled global markets in late June, according to the Financial Times.
Ashley Almanza, the Chief Executive of G4S, is expected to resist any break-up of the world's biggest security company even as it tries to fight off further reputational damage over a South African prison and a failed £1.6bn bid for its cash solutions business. On Monday the company faced fresh allegations after the South African government said it was looking into claims that G4S staff at the Mangaung Correctional Centre south of Bloemfontein used punishments including electric shocks and forced injections to control inmates, the Financial Times reports.
British businesses are recovering their confidence as shoppers and restaurant diners open their wallets to help drive the economic recovery. According to the latest Red Flag Alert research from business rescue and recovery firm Begbies Traynor financial distress among UK businesses is continuing to fall sustained by burgeoning consumer spending. It said that across all business sectors those firms experiencing "critical" financial problems reduced 2% from 3,001 in the second quarter of 2013 to 2,951 in the third quarter, the Daily Express writes.
Britain will be the first country in the Western world to sell government debt that complies with the rules of Sharia, David Cameron will announce today. Speaking at a conference in London aimed at raising billions of pounds in trade with Muslim countries, the Prime Minister will reveal that the Treasury is working on plans to sell an Islamic bond worth 200m pounds. This would enable Sharia-compliant investors to buy gilts to fund government spending for the first time, The Times reports.
House prices jumped almost £2,500 in September as the property market continued to regain its feet, Land Registry figures have shown. It reported a house prices in England and Wales rose 1.5% over the month, in further evidence that a fresh burst of confidence is taking hold of home buyers and sellers. But while there are fears of a new bubble being blown, property transactions remain a third down on the level seen in 2007 before the financial crisis hit and prices are up by only 3.4% annually, The Daily Mail writes.
There is no snub, apparently. The Commons energy and climate change committee has summoned the big six energy companies to give evidence on Tuesday. The committee did not name individuals in its requests for representatives to give evidence. Only one is sending the top boss. The rest are sending divisional heads. The topic – energy prices – is an important one and the hearing has been sparked by the recent hikes, which will hit consumers hard at a time of heated political debate about how to rein in the big six, The Guardian says.
Private jets operator Hangar8 has boosted its fleet of air ambulance aircraft in Africa on hopes of soaring demand from ex-pats, tourists and foreign investors. It is adding a new Bombardier Challenger to its African Aero Medical arm, which has seen revenues lift off by 300% in the last six months. It estimates that there are only 24 dedicated air ambulance aircraft in the continent. They carry out 15,000 aero medical evacuations a year, costing over £300m and accounting for 40% of the global total, the Daily Express says. | | |
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