| | | | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: FTSE swoops lower, dragged by Croda Intl - FTSE led lower by Croda Intl
- Guidance sought from abroad
- German consumer confidence falls
techMARK 2,646.30 -0.70%
FTSE 100 6,753.63 -0.36%
FTSE 250 15,493.32 -0.58%
The FTSE offered up few treats on Thursday, swooping 24 points lower in early trade, following the Federal Open Market Committee's decision not to close the door on a start to Fed tapering even as soon as its next meeting, in December.
The US central bank yesterday decided to keep its monthly $85bn bond buying programme unchanged, pointing to weaker economic growth that was hampered by the 16-day partial government shutdown earlier this month.
While many economists expect a reduction to quantitative easing will be held off until March 2014, some interpreted the Fed's statement to a suggestion that it could come in December.
The losses on the FTSE 100 were led by Croda International, which plunged after warning on subdued underlying market conditions, the "significant devaluation of the Japanese Yen and Indian Rupee", and near double digit declines in "relatively low" margin but high volume commodity and toll manufacturing sales. Overall, turnover for the first half rose 4.4%, although underlying sales climbed just 0.8%.
Meanwhile, market research institute GfK's consumer confidence index for Germany fell unexpectedly to 7.0 in November from 7.1 in October. Economists had predicted a reading of 7.2.
Investors seek guidance from abroad
Today's economic calendar is jam packed with the release of Eurozone inflation, US initial jobless claims, and German retail sales figures.
The consumer price index in the Eurozone is expected to remain unchanged at 1.1% in October.
In the US, initial jobless claims for the week ending October 25th will be unveiled along with the Chicago Purchasing Managers' regional manufacturing index which is pegged to fall to 55 in October from 55.7 in September. A reading above 50 signals expansion.
A report on German retail sales is also due out and is expected to show a rise of 1.1% in September, compared to a 0.3% increase a month earlier, according to consensus.
Shell plunges after earnings take bigger-than-expected hit
Earnings declined more than expected at Royal Dutch Shell due to weaker refinery conditions, higher costs and lower volumes, pushing the stock firmly lower. Chief Executive Officer Peter Voser said headwinds that continued to "erode the near term outlook" included weak industry refining margins and security issues in Nigeria but pointed to a strong flow of new projects and said Shell would increase the pace of asset sales.
Also in the red was AstraZeneca after it reported a fall in third quarter revenue. During the third quarter, core operating profit dropped 29% to $2.02bn as core earnings per share dipped 26% to $1.21.
Heading higher was BG Group, which predicted that production would recover in the fourth quarter, helped by the completion of its North Sea maintenance shutdowns and new projects coming on stream, particularly the Jasmine field in the North Sea. |
| | 40% Returns from unusual but proven industry | | Download our FREE Full Industry Review here. |
| FTSE 100 - Risers
Resolution Ltd. (RSL) 355.80p +1.45%
Coca-Cola HBC AG (CDI) (CCH) 1,817.00p +1.40%
Aggreko (AGK) 1,614.00p +1.06%
BG Group (BG.) 1,258.50p +1.04%
International Consolidated Airlines Group SA (CDI) (IAG) 354.60p +0.94%
Intertek Group (ITRK) 3,345.00p +0.87%
Shire Plc (SHP) 2,785.00p +0.83%
easyJet (EZJ) 1,332.00p +0.83%
BP (BP.) 485.75p +0.78%
Aviva (AV.) 448.00p +0.74%
FTSE 100 - Fallers
Croda International (CRDA) 2,460.00p -6.64%
Royal Dutch Shell 'B' (RDSB) 2,169.50p -4.72%
Royal Dutch Shell 'A' (RDSA) 2,081.00p -4.72%
AstraZeneca (AZN) 3,243.50p -2.60%
Fresnillo (FRES) 993.50p -2.50%
Randgold Resources Ltd. (RRS) 4,693.00p -2.23%
Petrofac Ltd. (PFC) 1,448.00p -2.03%
Antofagasta (ANTO) 883.00p -1.62%
Pearson (PSON) 1,298.00p -1.37%
Anglo American (AAL) 1,517.50p -1.08%
FTSE 250 - Risers
Countrywide (CWD) 579.00p +2.84%
Bwin.party Digital Entertainment (BPTY) 124.70p +1.88%
Afren (AFR) 150.30p +1.62%
Henderson Group (HGG) 216.90p +1.21%
Diploma (DPLM) 695.00p +1.16%
SIG (SHI) 200.00p +1.16%
Ted Baker (TED) 1,725.00p +0.88%
Menzies(John) (MNZS) 814.50p +0.87%
Ashtead Group (AHT) 667.50p +0.75%
National Express Group (NEX) 260.40p +0.66%
FTSE 250 - Fallers
Telecity Group (TCY) 719.00p -9.04%
Rentokil Initial (RTO) 105.00p -6.42%
RPS Group (RPS) 288.60p -3.54%
COLT Group SA (COLT) 122.60p -3.46%
African Barrick Gold (ABG) 191.20p -3.04%
TalkTalk Telecom Group (TALK) 261.90p -3.00%
Rank Group (RNK) 145.50p -2.74%
Essar Energy (ESSR) 117.20p -2.41%
Computacenter (CCC) 573.00p -2.05%
Daejan Holdings (DJAN) 4,112.00p -2.03%
FTSE TechMARK - Risers
Anite (AIE) 90.75p +0.83%
Consort Medical (CSRT) 888.00p +0.45%
Wolfson Microelectronics (WLF) 142.50p +0.35%
Optos (OPTS) 156.00p +0.16%
FTSE TechMARK - Fallers
Antisoma (ASM) 1.35p -12.90%
Puricore (PURI) 46.50p -3.12%
SDL (SDL) 252.25p -1.18%
Ricardo (RCDO) 612.00p -1.05%
Innovation Group (TIG) 31.75p -0.78%
NCC Group (NCC) 162.25p -0.76%
E2V Technologies (E2V) 144.00p -0.69%
Vectura Group (VEC) 110.50p -0.45% |
| | UK Event Calendar | | Thursday October 31
INTERIM DIVIDEND PAYMENT DATE
EMIS Group, Inspired Energy, Ladbrokes, Old Mutual, TT Electronics, Wynnstay Group
QUARTERLY PAYMENT DATE
F&C Commercial Property Trust Ltd., JP Morgan Chase & Co, Middlefield Canadian Income PCC, Schroder Income Growth Fund
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (GER) (07:00)
Bloomberg Consumer Confidence (US) (13:45)
Chicago PMI (US) (12:45)
Continuing Claims (US) (12:30)
International Reserves (EU) (11:00)
Personal Consumption Expenditures (US) (12:30)
Personal Income (US) (12:30)
Personal Spending (US) (12:30)
Retail Sales (GER) (07:00)
Q3
AstraZeneca, Avocet Mining, BG Group, Royal Dutch Shell 'A', Royal Dutch Shell 'B', Smith & Nephew
GMS
Forte Energy NL
AGMS
Angle, Forte Energy NL, Genesis Emerging Markets Fund Ltd., Pochin's, Seeing Machines Ltd.
UK ECONOMIC ANNOUNCEMENTS
Consumer Confidence (09:30)
GFK Consumer Confidence (00:01)
FINAL DIVIDEND PAYMENT DATE
Abbey
Q1
Hillshire Brands Company (The)
|
| | Which fine wine had an ROI of over 300 per cent... | | Download your Complimentary Fine Wine Investment Guide. Click Here. |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks mixed after FOMC decision - Federal Reserve keeps QE unchanged
- EU, US and German data released
- ECB liquidity swap agreements
FTSE 100: -0.36%
DAX: -0.16%
CAC 40: -0.19%
FTSE MIB: 0.12%
IBEX 35: 0.02%
Stoxx 600: -0.09%
European stocks fell before the release of a slate of economic data and after the Federal Reserve hinted that a tapering of monetary stimulus could begin this year.
The US central bank yesterday decided to keep its monthly $85bn bond buying programme unchanged, pointing to weaker economic growth that was hampered by the 16-day partial government shutdown earlier this month.
While many economists expect a reduction to quantitative easing will be held off until March 2014, some interpreted the Fed's statement to a suggestion that it could come in December.
"Investors were spooked by what they believed to be a hint from the Fed in this month's statement, that asset purchases could be reduced at the December meeting," said Craig Erlam, Market Analyst at Alpari.
"If I'm honest, I just think that yet again the markets have overreacted […] I still believe it will be March before tapering begins and I don't think the [Fed's] statement suggests otherwise."
The Fed also reiterated that it would keep interest rates near zero as long as the jobless rate remained above 6.5% and inflation did not threaten to rise above 2.5%.
Barrage of economic data released
Today's economic calendar is jam packed with the release of Eurozone inflation, US initial jobless claims, German consumer confidence and retail sales figures.
The consumer price index in the Eurozone is expected to remain unchanged at 1.1% in October.
In the US, initial jobless claims for the week ending October 25th will be unveiled along with the Chicago Purchasing Managers' regional manufacturing index which is pegged to fall to 55 in October from 55.7 in September. A reading above 50 signals expansion.
Market research institute GfK's consumer confidence index for Germany fell unexpectedly to 7.0 in November from 7.1 in October. Economists had predicted a reading of 7.2.
Also out in Europe's biggest economy is a report on retail sales which are expected to rise by 1.1% in September, compared to a 0.3% increase a month earlier, according to consensus.
ECB makes liquidity swap agreements with central banks permanent
The European Central Bank (ECB) has said it is making its liquidity swap arrangements with global central banks permanent, according to an emailed statement obtained by Bloomberg.
ECB will convert temporary, bilateral arrangements with the Bank of Canada, the Bank of England, the Federal Reserve, the Bank of Japan and the Swiss National Bank into standing facilities, allowing banks to access global currencies, including the euro when needed.
"The existing temporary swap arrangements have helped to ease strains in financial markets and mitigate their effects on economic conditions," the ECB said. "The standing arrangements will continue to serve as a prudent liquidity backstop."
The arrangements started in 2008 to help keep funds flowing as markets froze.
BNP, Shell
BNP Paribas advanced after the French bank reported a rise in third quarter net income that beat analysts' expectations.
Royal Dutch Shell dropped after posting a fall in profit that missed forecasts.
Danske Bank fell after Denmark's biggest lender reduced its 2013 forecasts and lowered its target for how much it will return to investors.
L'Oreal slumped as the beauty products maker reported sales that fell short of market estimates due to weak performance in North America.
Other asset classes decline
The euro was down 0.20% to $1.3709.
Brent crude futures fell $0.384 to $109.440 per barrel on the ICE. |
| | NEW Trading Strategy - Currently running at 70% success rate | | Earn a tax free income trading, from just 20 minutes a day – no experience needed. Our powerful trading software will help you decide when to enter trades and how to maximise profits.
Register for a FREE brochure and trading guide, Click Here. |
| | US Market Report | | US close: FOMC keeps door open to tapering - Fed keeps door open to tapering before March
- Slight selling following FOMC meeting
- ADP doubts weak ADP report linked to shutdown
- Qatar fund quietly builds 1bn dollar Bank of America stake
Dow Jones Industrials: -0.39%
Nasdaq Composite: -0.54%
SP 500: -0.51%
US stocks ended the session slightly lower following the Federal Open Market Committee's (FOMC) decision not to close the door on a start to Fed tapering even as soon as its next meeting, in December.
Thus, initial market commentary following the meeting highlighted the omission in yesterday's policy statement of a reference to "still tightening financial conditions," which is the phrase it used in its September 18th statement.
At the very least the central bank is likely reticent to be seen to be allowing financial assets to keep shooting higher. As well, some believe that the risk of another government shutdown come spring is in reality quite low.
Some observers also emphasised the possibility that incoming Fed Chairwoman Janet Yellen could also turn out to be less dovish than many are saying.
Even so, by and large economists see the Fed holding off on tapering until March 2014.
Weak economic data
Acting as a backdrop was the release of the 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.
Economists at Capital Economics had this to say: "provides further evidence that labour market conditions are weakening. We are not convinced that this latest easing was due to the government shut-down forcing private firms to cut headcounts".
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," Capital Economics wrote to clients.
In the earnings arena, 267 companies, including Starbucks and Facebook, releasing results on Wall Street.
From a sector standpoint the worst performance was seen in the following industrial groups: Business training (-6.32%) and Consumer electronics (-2.59%).
Front-month West Texas crude futures were down by 0.35% to $96.42 per barrel mark on the NYMEX, despite what appeared to be slightly bullish weekly inventory figures from the Department of Energy.
Ten-year US treasury yields finished slightly higher on the day, at 2.53%.
S&P 500 - Risers
Electronic Arts Inc. (EA) $26.00 +7.75%
Sealed Air Corp. (SEE) $30.35 +6.42%
LSI Corporation (LSI) $8.47 +5.61%
Gilead Sciences Inc. (GILD) $72.67 +4.56%
Sprint Nextel Corporation (S) $6.93 +3.74%
Range Resources Corp. (RRC) $77.40 +3.70%
Tesoro Corp. (TSO) $48.94 +3.47%
Goodyear Tire & Rubber Co. (GT) $21.42 +3.18%
Valero Energy Corp. (VLO) $41.41 +2.98%
J.C. Penney Co. Inc. (JCP) $7.60 +2.98%
S&P 500 - Fallers
Western Union Co. (WU) $16.85 -12.42%
Vertex Pharmaceuticals Inc. (VRTX) $71.75 -5.70%
Sears Holdings Corp. (SHLD) $58.67 -5.51%
Edwards Lifesciences Corp. (EW) $66.29 -5.11%
Jabil Circuit Inc. (JBL) $20.93 -4.78%
Borg Warner Inc. (BWA) $100.79 -3.92%
Hess Corp. (HES) $80.32 -3.81%
CBRE Group Inc (CBG) $23.48 -3.77%
TE Connectivity Ltd (TEL) $51.04 -3.68%
Beam Inc. Common Stock (BEAM) $67.83 -3.51%
Dow Jones I.A - Risers
General Electric Co. (GE) $26.37 +0.61%
Home Depot Inc. (HD) $77.88 +0.49%
Nike Inc. (NKE) $76.13 +0.29%
Microsoft Corp. (MSFT) $35.54 +0.06%
Boeing Co. (BA) $129.68 +0.02%
Dow Jones I.A - Fallers
Procter & Gamble Co. (PG) $81.52 -1.14%
Verizon Communications Inc. (VZ) $50.53 -1.10%
International Business Machines Corp. (IBM) $180.15 -1.08%
Pfizer Inc. (PFE) $30.93 -1.02%
Chevron Corp. (CVX) $120.30 -0.99%
E.I. du Pont de Nemours and Co. (DD) $61.02 -0.75%
Merck & Co. Inc. (MRK) $45.24 -0.75%
Caterpillar Inc. (CAT) $83.49 -0.69%
American Express Co. (AXP) $83.10 -0.67%
Walt Disney Co. (DIS) $68.47 -0.65%
Nasdaq 100 - Risers
Gilead Sciences Inc. (GILD) $72.67 +4.56%
Baidu Inc. (BIDU) $164.93 +3.47%
Seagate Technology Plc (STX) $49.50 +2.59%
Symantec Corp. (SYMC) $22.67 +2.44%
Dentsply International Inc. (XRAY) $46.78 +2.34%
Apple Inc. (AAPL) $524.90 +1.59%
Starbucks Corp. (SBUX) $80.83 +1.52%
Randgold Resources Ltd. Ads (GOLD) $77.09 +1.42%
Alexion Pharmaceuticals Inc. (ALXN) $125.50 +1.14%
Express Scripts Holding Co (ESRX) $62.32 +0.71%
Nasdaq 100 - Fallers
Vertex Pharmaceuticals Inc. (VRTX) $71.75 -5.70%
Sears Holdings Corp. (SHLD) $58.67 -5.51%
Equinix Inc. (EQIX) $162.18 -3.69%
Tesla Motors Inc (TSLA) $159.22 -3.19%
Netflix Inc. (NFLX) $318.14 -2.80%
Automatic Data Processing Inc. (ADP) $74.30 -2.69%
Celgene Corp. (CELG) $151.32 -2.57%
Twenty-First Century Fox Inc Class A (FOXA) $33.94 -2.54%
Regeneron Pharmaceuticals Inc. (REGN) $291.17 -2.47%
Staples Inc. (SPLS) $15.74 -2.27% |
| | Magnetic FTSE Service | | Tired of Struggling Away Alone Trying to Make Trading Profits? Why Not Just Follow Me? I Aim to Make 1,000 Points For my Subscribers in The Next 12 Months.
To join us click here |
| | Newspaper Round Up | | Thursday newspaper round-up: Google, Bank of America, Barclays Google on Wednesday declared that it was "outraged" by apparent US government attempts to siphon information about millions of its users from its network, as the latest revelations in the internet surveillance scandal left it struggling to reassure its global users about the security of their personal information. The strong denunciation followed a report by the Washington Post that the National Security Agency had sought to take information wholesale from Google by tapping into a weak point in its network architecture, according to the Financial Times.
Qatar's sovereign wealth fund has quietly built a stake worth about $1bn in Bank of America, the country's second-biggest bank, as it seeks exposure to the US economic recovery, people familiar with the plans said. Qatar Holding, the direct investment arm of Qatar Investment Authority, started to buy BofA shares about two years ago but bought more as the bank's share price fell to $7-$8 last year, a person close to the fund said. The stock is now trading above $14, the Financial Times reports.
Barclays has been drawn into the global inquiry into the potential rigging of currency rates. The bank's admission comes after Deutsche Bank, UBS and Royal Bank of Scotland said that they were co-operating with an investigation into the £3trn-a-day market. Barclays said yesterday that "various" authorities had indicated that they were investigating foreign exchange trading "including possible attempts to manipulate certain benchmark currency rates or engage in other activities that would benefit their trading positions", The Times writes.
The number of people declared insolvent is continuing to fall, with an estimated 23% fewer people being made bankrupt in 2013 compared to last year. Official figures due to be released by The Insolvency Service on Friday are expected to show that personal insolvencies have fallen to their lowest levels since 2008. Accountancy firm Baker Tilly has compiled its own figures which have found that around 75,000 personal insolvencies were field in the first nine months of 2013, a fall of nine per cent on the first three quarters of 2012, The Daily Mail says.
Households in Britain have seen their living standards stagnate for the past four years and are spending an increasing share of their incomes on "essentials" such as fuel and housing.The Office for National Statistics says households' true disposable income has flatlined since the end of the recession, in the autumn of 2009, even though national output has expanded by 4.2% over the same period, The Guardian reports.
A strike planned by Royal Mail workers in the aftermath of the company's recent privatisation has been called off after unions and management said talks were progressing. The Communication Workers Union (CWU) had given notice of a one-day strike by its 115,000 members in the postal service next Monday over issues including pay, pensions and the legal protections offered to employees, The Guardian writes. | | |
New ADVFN Service - FREE Reports Get your free report on Isa's, Investment Trusts, Funds,
Sipps Travel and Cars - FREE and Easy service CLICK HERE
To advertise in the Euro Markets Bulletin please contact patrick@advfn.co.uk |
| | | | | | | To unsubscribe from this news bulletin or edit your mailing list settings click here. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +44 (0) 207 0700 961. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49 | |
No comments:
Post a Comment