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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 close: Financials bolster markets on quiet day - Banks gains on quiet day for financial markets
- Media stocks in focus after BT-UEFA dea
- 'Lack of overall volatility', says analyst
techMARK 2,640.62 +0.01%
FTSE 100 6,728.37 +0.30%
FTSE 250 15,420.36 +0.51%
Strong gains in the heavyweight financial sector pushed the FTSE 100 into positive territory on Monday despite some heavy falls from the likes of BSkyB and RSA.
David Jones, Chief Market Strategist at IG, said there was a "lack of overall volatility" across markets today with the US bond market closed in light of Veterans Day.
The FTSE 100 closed 19.95 points higher at 6,728.37 after having been "stuck in a 20-point range for much of the afternoon, making for a fairly boring 'big picture' view", Jones said.
Traders are continuing to digest an eventful end to last week, which included a European Central Bank rate cut and strong economic figures from the US. While the news has increased speculation of a sooner-than-anticipated taper of quantitative easing by the Federal Reserve, markets across Europe were heading higher today as investors expressed their confidence in the US recovery.
"European stocks continue to advance into the afternoon, extending five weeks of gains as investors bet that the growing pace of the US economic recovery will offset any negative impact of the Federal Reserve’s likely move to cut stimulus," said Financial Sales Trader Lee Mumford from Spreadex.
BSkyB and ITV hit by BT's big win
In a major blow to BSkyB and ITV, telecoms group BT confirmed that it has won the exclusive rights to broadcast live the UEFA Champions League and UEFA Europa League for three seasons. This is the first time a single UK broadcaster has won the rights to all matches from both tournaments; Sky and ITV share the rights currently.
BSkyB was the worst hit after Nomura downgraded its rating for the stock from 'buy' to 'reduce', saying that BT's willingness to overpay for the UEFA deal is "worrying for Sky and a bad sign for the next Premier League auction".
RSA Insurance was also a heavy faller after saying that "issues in the Irish claims and finance functions" were found during a routine internal audit, leading to the suspension of its Ireland Chief Executive Officer (CEO) and two of his senior executives. Credit Suisse downgraded the stock to 'underperform' following the news.
Financials were performing well today, with fund manager Aberdeen and financial services firm Schroders making impressive gains.
Banking peers Lloyds, Standard Chartered and RBS were also heading higher, with the latter helped by a target upgrade from Jefferies. The broker downplayed recent fears after the creation of the internal 'bad bank'.
Shire was a high riser after agreeing to pay $4.2bn for US biopharmaceutical firm ViroPharma, which it described as a "strategic move" to strengthen its rare disease portfolio. |
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| | FTSE 100 - Risers
Royal Bank of Scotland Group (RBS) 339.80p +5.36%
Schroders (SDR) 2,542.00p +4.27%
Aberdeen Asset Management (ADN) 436.60p +3.41%
Mondi (MNDI) 1,049.00p +2.94%
CRH (CRH) 1,559.00p +2.23%
Lloyds Banking Group (LLOY) 76.77p +2.14%
Experian (EXPN) 1,205.00p +1.86%
Standard Chartered (STAN) 1,508.50p +1.69%
Kingfisher (KGF) 386.10p +1.61%
Tullow Oil (TLW) 915.50p +1.61%
FTSE 100 - Fallers
British Sky Broadcasting Group (BSY) 829.00p -10.86%
RSA Insurance Group (RSA) 108.10p -10.51%
Antofagasta (ANTO) 818.50p -2.15%
ITV (ITV) 187.40p -1.63%
Coca-Cola HBC AG (CDI) (CCH) 1,767.00p -1.40%
Rio Tinto (RIO) 3,274.00p -1.36%
Meggitt (MGGT) 509.50p -1.26%
Anglo American (AAL) 1,474.00p -1.24%
BAE Systems (BA.) 451.70p -1.16%
Randgold Resources Ltd. (RRS) 4,688.00p -0.99%
FTSE 250 - Risers
Xaar (XAR) 925.00p +7.93%
Fidessa Group (FDSA) 2,155.00p +5.95%
888 Holdings (888) 161.20p +4.81%
Rathbone Brothers (RAT) 1,620.00p +4.11%
Lonmin (LMI) 340.90p +3.90%
Brewin Dolphin Holdings (BRW) 276.30p +3.72%
Bwin . party Digital Entertainment (BPTY) 125.90p +3.62%
Partnership Assurance Group (PA.) 422.00p +3.18%
WH Smith (SMWH) 992.00p +3.01%
Intermediate Capital Group (ICP) 484.10p +2.96%
FTSE 250 - Fallers
Dialight (DIA) 897.00p -5.58%
Serco Group (SRP) 509.00p -5.39%
Cobham (COB) 270.10p -5.03%
Oxford Instruments (OXIG) 1,227.00p -4.29%
CSR (CSR) 483.90p -3.20%
esure Group (ESUR) 221.50p -2.85%
Wetherspoon (J.D.) (JDW) 722.50p -2.36%
Renishaw (RSW) 1,699.00p -1.91%
Supergroup (SGP) 1,176.00p -1.84%
Hellermanntyton Group (HTY) 303.00p -1.78% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Positive China and US data boost market - China industrial output rises
- US payrolls increase
- Iran nuclear talks
FTSE 100: 0.34%
DAX: 0.41%
CAC 40: 0.70%
FTSE MIB: 0.77%
IBEX 35: 0.44%
Stoxx 600: 0.29%
European stocks rallied after the release of better-than-forecast Chinese industrial output and US jobs data.
China’s industrial production rose 10.3% in October from a year earlier, the National Bureau of Statistics said on Saturday. It beat September’s 10.2% increase and exceeded the 10% forecast. Inflation was a less-than-expected 3.2% and producer prices fell 1.5%.
Also in China, President Xi Jinping and top Communist Party leaders have convened in Beijing to outline a plan to sustain growth in the world’s second largest economy. The meeting of about 370 officials wraps up tomorrow.
In the US, investors have been weighing Labor Department’s payrolls report which showed employers added 204,000 workers in October following a revised 163,000 increase in September. Economists had predicted an increase of 120,000.
The report fuelled speculation that the Federal Reserve might start scaling back its monthly $85bn bond buying programme at the next meeting in December.
“That said, I still think we need to see a couple more months of data to be sure that it hasn’t had an impact in the longer term, particularly to consumer confidence, with surveys showing a drop in this in recent months,” said Craig Erlam, Market Analyst at Alpari UK. Therefore, I think January would be a better time to do it, as long as the data remains strong.”
Oil gains on Iran nuclear talks
Oil prices rose after US Secretary of State John Kerry said Iran backed out of a deal on its nuclear programme during talks with world powers in Geneva on Saturday.
He revealed that Iran had been unable to accept the deal "at that particular moment".
Separately, UK Foreign Secretary William Hague said a deal can be reached to curb the programme but warned that there were "still some gaps" between Iran and other leading members of the international community, including the US, UK and Russia.
"This is a very difficult negotiation but it's fundamental to international peace and security over the next few years so we have to persist,” he said.
Brent crude futures jumped $0.793 to $105.960 per barrel on the ICE.
Health-care companies rally
Grifols gained after Novartis said will sell its blood-transfusion diagnostics unit to the Spanish blood-plasma products maker for $1.68bn.
Shire advanced after the Dublin-based drug maker agreed to buy ViroPharma for about $4.2bn.
RSA Insurance Group declined as it launched a review of its financial and regulatory reporting processes and controls at its Irish unit after suspending three of its senior executives.
BSkyB slumped after the group lost its rights to broadcast live Champions League and Europa League football matches to BT Sport.
Bwin . Party Digital Entertainment edged higher after saying the New Jersey Division of Gaming Enforcement will allow the gambling company to participate in its online gaming market.
The euro climbed 0.29% to $1.3406 |
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| | US Market Report | | US open: Markets flat as Dow pauses at record high - Dow and S&P 500 at/close to record highs
- Volumes expected to be low due to public holiday
- Taper speculation continues after strong data
Dow Jones: 0.06%
Nasdaq: -0.24%
S&P 500: 0.02%
US stocks were little changed on Monday morning after a record-breaking day for the Dow Jones Industrial Average the previous session.
Financial markets are expected to be relatively quiet today as the US celebrates Veterans Day so Wall Street is expected to see significantly reduced trading volumes.
"All markets will still be open for trading, although many traders will not be at their desks," according Market Analyst Craig Erlam from Alpari.
The Dow finished at a fresh all-time high of 15,761.78 on Friday while the S&P 500 at 1,770.61 came within two points of its record despite increased speculation of a sooner-than-expected taper of quantitative easing by the Federal Reserve.
Economic data last week revealed that US economic growth picked up from an annual rate of 2% to 2.8% in the third quarter, while a total of 204,000 non-farm payrolls were added in October, well ahead of analysts' estimates.
Nevertheless, investors poured into equities on Friday as they showed confidence that the recovery my be resilient enough to withstand a reduction in stimulus, possibly as early as next month.
"Maybe the 'good news is bad news' scenario is finally becoming a thing of the past," said Alpari's Erlam.
Looking ahead, US budget talks will resume on Wednesday when the House-Senate conference committee meets. They must reach a deal before a December 13th deadline as part of a deal reached in October to end a 16-day partial government shut-down.
Retailers in focus ahead of results
There are no economic data releases scheduled in the US on Monday so attention will turn to earnings reports.
With 447 S&P 500 companies having already released their third-quarter results already, eyes are now turning to the ones that are left, including retailers Wal-Mart, Macy's, Nordstorm who are all due to report this week. All three stocks were making gains in morning trade.
Transocean Ltd. advanced after the dual-listed offshore rig contractor agreed with investor Carl Icahn to propose a $3 per share dividend.
ViroPharma Inc. rallied after Shire Plc. agreed to buy the company for about $4.2bn.
ImmunoGen Inc. declined after Morgan Stanley cut its rating on the maker of cancer drugs to 'underweight' from 'equal weight'. |
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| | Broker Tips | | Associated British Foods: Barclays downgrades to equal-weight with a target of 2100p.
Bovis Homes Group: Deutsche Bank moves target from 1001p to 1008p maintaining a buy recommendation.
British Land: Deutsche Bank downgrades to sell with a target of 520p.
British Sky Broadcasting: Nomura reduces target from 1040p to 850p and downgrades from buy to reduce. Goldman Sachs cuts target from 1120p to 1070p, while reiterating its buy recommendation.
BT Group: JP Morgan increases target from 380p to 420p upgrading from neutral to overweight. Citi ups target from 400p to 430p retaining a buy recommendation. UBS cuts targe from 310p to 290p and stays with its sell recommendation.
Cable & Wireless Communications: Jefferies shifts target from 45p to 48p and retains a hold recommendation.
Carr's Milling: Investec places both its target prev.: 1710p and its buy recommendation under review.
Cobham: Investec cuts target from 275p to 230p retaining its sell recommendation.
Dignity: Investec raises target from 1562p to 1583p and upgrades from add to buy.
Faroe Petroleum: Panmure Gordon moves target from 182p to 188p and retains a buy recommendation. Westhouse Securities shifts target from 175p to 185p and maintains a buy recommendation.
FlyBe: Liberum Capital initiates with a target of 90p and a buy recommendation.
Gemfields: Investec moves target from 30p to 37.5p and reiterates a buy recommendation.
International Consolidated Airlines Group: Citi raises target from 380p to 535p and stays with its buy recommendation. HSBC takes target from 405p to 420p maintaining an overweight rating. Credit Suisse increases target from 345p to 443p and reiterates an outperform rating.
International Personal Finance: RBC Capital shifts target from 700p to 695p and maintains an outperform rating.
ITV: Citi ups target from 180p to 191p, while downgrading from buy to neutral. Goldman Sachs lowers target from 240p to 237p and retains a buy recommendation.
Lonmin: Investec places its target prev.: 266p, while leaving its sell recommendation unaltered.
Morgan Advanced Materials: Investec places its target prev.: 410p under review, while keeping its buy recommendation.
Paragon Group: RBC Capital ups target from 350p to 390p upgrading to outperform.
Rentokil Initial: JP Morgan moves target from 75p to 86p, while leaving its underweight rating unchanged.
Royal Bank of Scotland: Jefferies raises target from 390p to 441p and keeps a buy recommendation.
RSA Insurance Group: Citi reduces target from 146p to 126p downgrading from buy to neutral. Panmure Gordon moves target from 98p to 117p, but still recommends selling. Credit Suisse lowers target from 125p to 110p and downgrades to underperform.
Shire: Panmure Gordon raises target from 2850p to 3100p and keeps a buy recommendation.
Tullett Prebon: UBS cuts target from 315p to 290p and maintains its sell recommendation.
Verona Pharma: N+1 Singer initiates with a target of 5.1p and a buy recommendation.
Wincanton: Investec ups target from 75p to 122p, while downgrading from buy to hold. | | |
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