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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: FTSE ends flat after data-heavy session - Flat finish after mixed session
- US jobless claims fall
- UK car manufacturing grows
- Johnson Matthey charges higher
techMARK 2,636.63 +0.40%
FTSE 100 6,681.33 0.00%
FTSE 250 15,148.50 -0.20%
UK stocks ended the day broadly flat after a mixed bag of data left investors lacking in any firm direction.
The gains were led by Johnson Matthey, while mining stocks weighed heavily, giving an overall finish of just 0.25 points higher.
Over in the US, stocks were in positive territory after jobless claims fell to their lowest level since September, down by 21,000 to a seasonally adjusted 323,000 for the week ended November 16th. Investors also cheered news that the US Senate's Banking Committee had chosen to back Yellen's candidacy to Fed Chairwoman.
Also very much worth pointing out, market experts seem to continue to be quite sceptical that the Fed could move to start tapering come next December or even January.
UK tax figures signal housing boom, UK car manufacturing grows
The latest UK tax figures have signalled a housing boom with stamp duty revenues at the same level they were just before the economic crisis in 2008.
Homebuyers in October paid £852m in stamp duty to the Exchequer, up from the £830m-a-month at the peak of the housing boom in 2007/08, according to figures from HM Revenue & Customs.
Property market activity in central London was largely responsible for increase in stamp duty revenues.
The Confederation of British Industry reported a surprise jump in factory orders for November to their highest level since March 1995. The balance climbed to +11 compared to -4 in October, compared to expectations of 0.
"Encouragingly, the purchasing managers reported higher demand in October from Asia, the USA, mainland Europe, Ireland, the Middle-East and Russia. Admittedly, sterling hit a nine-month high on a trade-weighted basis in October, but it is not at a damaging level for exporters," said Dr. Howard Archer, Chief UK+Europe Economist at IHS Global Insight.
Johnson Matthey tops leaders after results impress
Shares in speciality chemicals company Johnson Matthey leapt to the top of the leaderboard after it reported a robust set of half-year results, powered by a strong performance in Emission Control Technologies ahead of new European legislation and good demand for Process Technologies' products.
Housebuilder Persimmon gained on the back of the latest UK tax figures which have signalled a housing boom with stamp duty revenues at the same level they were just before the economic crisis in 2008.
Meanwhile, the downside was being led by miners, as investors digested the minutes from the latest Federal Reserve meeting, and a slowdown in Chinese PMI. Antofagasta fell after a downgrade to 'neutral' from 'buy' by UBS. Adding to woes, metal prices were broadly lower.
Cigarette companies BATS and Imperial Tobacco were lower after US sector peer Philip Morris International warned the industry could suffer an overall 2-3% decline in 2014. |
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| | FTSE 100 - Risers
Johnson Matthey (JMAT) 3,210.00p +3.75%
Persimmon (PSN) 1,197.00p +2.92%
AstraZeneca (AZN) 3,400.50p +2.78%
easyJet (EZJ) 1,413.00p +2.61%
RSA Insurance Group (RSA) 104.50p +2.25%
Legal & General Group (LGEN) 214.20p +2.00%
International Consolidated Airlines Group SA (CDI) (IAG) 360.00p +1.98%
Barclays (BARC) 257.10p +1.78%
Centrica (CNA) 343.00p +1.66%
G4S (GFS) 264.50p +1.65%
FTSE 100 - Fallers
Fresnillo (FRES) 863.50p -4.53%
Vedanta Resources (VED) 923.00p -2.94%
Randgold Resources Ltd. (RRS) 4,365.00p -2.89%
Imperial Tobacco Group (IMT) 2,367.00p -2.59%
British American Tobacco (BATS) 3,281.00p -2.35%
Associated British Foods (ABF) 2,286.00p -2.22%
Rexam (REX) 486.90p -1.68%
Rio Tinto (RIO) 3,246.50p -1.62%
Experian (EXPN) 1,162.00p -1.53%
Anglo American (AAL) 1,384.50p -1.42%
FTSE 250 - Risers
QinetiQ Group (QQ.) 211.00p +7.27%
Telecom Plus (TEP) 1,915.00p +6.09%
Partnership Assurance Group (PA.) 317.00p +3.59%
Bellway (BWY) 1,453.00p +3.12%
Bodycote (BOY) 620.00p +2.99%
Barratt Developments (BDEV) 335.10p +2.95%
National Express Group (NEX) 257.00p +2.92%
Ashmore Group (ASHM) 384.20p +2.45%
Paragon Group Of Companies (PAG) 333.30p +2.40%
Thomas Cook Group (TCG) 154.30p +2.12%
FTSE 250 - Fallers
African Barrick Gold (ABG) 167.90p -7.24%
Imagination Technologies Group (IMG) 244.20p -6.79%
Centamin (DI) (CEY) 44.32p -5.16%
Hochschild Mining (HOC) 127.80p -4.84%
Evraz (EVR) 108.40p -4.41%
Devro (DVO) 294.40p -4.14%
Lonmin (LMI) 311.00p -4.10%
Bwin.party Digital Entertainment (BPTY) 124.70p -4.08%
Polymetal International (POLY) 520.00p -3.88%
Ferrexpo (FXPO) 172.40p -3.53%
FTSE TechMARK - Risers
DRS Data & Research Services (DRS) 24.00p +3.23%
RM (RM.) 111.12p +2.89%
Torotrak (TRK) 24.62p +2.60%
Kofax (KFX) 375.50p +2.04%
Wolfson Microelectronics (WLF) 142.50p +1.06%
Microgen (MCGN) 125.00p +0.40%
Anite (AIE) 87.25p +0.29%
Vectura Group (VEC) 102.25p +0.25%
Optos (OPTS) 157.25p +0.16%
FTSE TechMARK - Fallers
Oxford Biomedica (OXB) 2.38p -8.65%
Gresham Computing (GHT) 124.00p -5.52%
Promethean World (PRW) 19.00p -3.80%
Filtronic (FTC) 61.25p -2.20%
Phoenix IT Group (PNX) 141.00p -2.08%
Puricore (PURI) 49.00p -2.00%
NCC Group (NCC) 175.00p -1.96%
Vislink (VLK) 47.00p -1.57%
Ricardo (RCDO) 590.50p -1.50%
BATM Advanced Communications Ltd. (BVC) 17.50p -1.41% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe midday: Stocks mixed on FOMC minutes and Eurozone data - FOMC minutes point to tapering in coming months
- Draghi plays down deposit rate cut reports
- Eurozone composite PMI falls unexpectedly
- China manufacturing declines
FTSE 100: -0.03%
DAX: -0.42%
CAC 40: -0.52%
FTSE MIB: 0.17%
IBEX 35: -0.16%
Stoxx 600: -0.32%
European stocks were mixed as investors weighed the release of yesterday’s Federal Open Market Committee (FOMC) meeting minutes and Eurozone economic news today.
The FOMC’s minutes suggested a tapering of the Federal Reserve’s monetary stimulus could come at “one of its next few meetings”.
The minutes revealed the details behind the central bank’s decision to maintain its $85bn per month in bond purchases and keep interest rates near zero until it sees a greater pick up in the economy.
With recent data releases pointing to recovery in the world’s largest economy, it may finally be time for investors to wean themselves off the drug that is quantitative easing, according to Alpari Market Analyst, Craig Erlam.
“The language in the minutes suggests this could even come as early as the December meeting, hence the panic selling of equities and US Treasuries yesterday evening. Prior to this investors were looking more towards a March taper.”
ECB’s Draghi addresses deposit rate cut reports
European Central Bank chief Mario Draghi has played down the chances of a deposit rate cut into negative territory in a speech today.
Draghi said negative deposit rates were discussed at the central bank’s policy meeting this month but there had been no developments since.
His remarks followed reports on Wednesday that the ECB may consider reducing the rate for lenders who deposit excess cash at the bank to -0.1% from zero.
In other European news, the Eurozone purchasing manager’s index (PMI) for manufacturing rose in line with expectations to 51.5 in November from 51.3 a month earlier.
However, there was an unexpected drop in PMI services to 50.9 from 51.6, compared to the 51.9 consensus.
The PMI composite, which includes manufacturing and services, dropped to 51.5 this month from from 51.9 in October, missing economists' estimates for a reading of 52. A reading above 50 signals expansion.
Meanwhile in China, manufacturing PMI for November fell to 50.4 from 50.9 in October, compared with a 50.8 median estimate from analysts.
Later on will be the release of Eurozone consumer confidence for November which is expected to increase to -14 from -14.5.
US initial jobless claims are forecast to fall to 335,000 for the week to November 15th from the prior week’s 339,000 claims when released in today’s US session.
Intermediate Capital, Atos
Intermediate Capital retreated after the London-based money manager was cut to ‘hold’ from ‘add' at Numis, citing weaker than expected half-year results.
Atos slumped after the French computer services company said it was selling 8.9m shares.
Zurich Insurance Group declined after selling its entire stake in New China Life Insurance Co. for $943m.
SABMiller advanced after the drinks brewer reported first-half earnings that beat analysts’ estimates.
Johnson Matthey rallied as the British multinational chemicals and precious metals company said first-half underlying pre-tax profit rose to £202.1m from £180.1m a year earlier.
Daily Mail & General Trust was higher after the company reported in-line full-year results as its consumer and business-to-business trade divisions boosted profits.
Other asset classes rise
The euro climbed 0.22% to $1.3469.
Brent crude was up $0.222 to $108.300 per barrel, according to data from the ICE. |
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| | US Market Report | | US open: Senate panel backs Yellen to head Fed - Senate banking committee backs Yellen to head Fed
- Johnson Controls increases share repurchase programme by 3bn dollars
- Treasury to sell down remaining stake in GM
Dow Jones Industrials: 0.46%
Nasdaq Composite: 0.89%
S&P 500: 0.60%
The main US equity gauges were climbing higher in early trading following the release of better than expected unemployment claims data and after the US Senate’s banking committee backed Janet Yellen to the post of Fed Chairwoman.
Acting as a backdrop, market participants continue to mull over the contents of the minutes of the FOMC’s last policy meeting.
Experts such as Nick Beecroft, Chairman at Saxo Capital Markets UK, told Sharecast on Thursday that they still attach only a 30% probability to a March start to Fed tapering and 50% to the possibility of a move after then. Beecroft added that, in his opinion, the tone of the minutes was guardedly cautious.
There is also some market commentary to be seen, again, as regards the risk of a bubble forming in US equities. Certainly, stocks are overbought on a very near-term basis.
Nevertheless, by some estimates the forward price-to-earnings multiple on the S&P 500 is still at only 15, somewhat below some measures of its long-term averages. More poignantly perhaps, transport and small-cap benchmarks have risen by over 30% this year, which may reflect confidence in the prospects for accelerating economic growth in 2014.
Feeding those gains, investors have funnelled a net $285bn into US equity mutual funds this year, the most since 1982. Year-to-date gains in the S&P 500 are the largest since 1997.
Treasury to sell State’s stake in GM
Green Mountain Coffee Roasters was a big gainer in early trading after it reported fourth-quarter profit that beat analysts’ estimates.
Stock in Johnson Controls, the auto-parts maker, sprang higher after increasing the size of a stock-repurchase programme by $3bn.
The US Treasury Department announced its intention to sell its remaining stake in General Motors.
The latest quarterly results out retailers such as Target, Dollar Tree and Sears, on the other hand, have come in beneath market forecasts.
US producer prices slipped by 0.2% month-on-month in October, after a 0.1% fall in the month before (Consensus: -0.2 per cent).
Initial weekly US unemployment claims dropped by 21,000, to reach 323,000, versus the previous week's revised reading of 344,000. The consensus estimate had been for a print of 335,000.
The Federal Reserve bank of Philadelphia’s regional manufacturing sector gauge for November fell back to 6.5 points from the prior month’s reading of 19.8, to reach its lowest level since May.
Other asset classes move higher in tandem
Ten-year US treasury yields were higher by two basis points to the 2.82% mark. Three Fed speakers are due to hit the wires later in the day.
Front month West Texas crude futures were rising by 0.77% to the $94.57/barrel mark on NYMEX. |
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| | Broker Tips | | Aggreko: Liberum Capital initiates with a target of 1500p and a hold recommendation.
Antofagasta: UBS reduces target from 965p to 870p and downgrades from buy to neutral.
APR Energy: Liberum Capital starts with a target of 890p and a sell recommendation.
Ashtead Group: Liberum Capital initiates with a target of 765p and a buy recommendation.
Brammer: Jefferies raises target from 340p to 425p and keeps a hold recommendation.
Close Brothers Group: Canaccord Genuity increases target from 1320p to 1430p and stays with its buy recommendation.
Daily Mail & General Trust: Numis takes target from 1007p to 1080p and keeps a buy recommendation. Investec places its target (prev.: 861p) under review, while keeping its buy recommendation.
Devro: Investec cuts target from 370p to 343p, while maintaining a buy recommendation.
Enteq Upstream: FinnCap initiates with a target of 83p and a buy recommendation.
Faroe Petroleum: Panmure Gordon shifts target from 195p to 192p reiterating a buy recommendation.
Halma: JP Morgan moves target from 510p to 540p and leaves its neutral rating unchanged.
Howden Joinery: Citi ups target from 275p to 315p maintaining a neutral rating.
Imagination Technologies: Credit Suisse cuts target from 275p to 235p and stays with its underperform rating.
Intermediate Capital Group: Numis downgrades from add to hold with a target of 500p.
Intertek Group: Cantor Fitzgerald reduces target from 3175p to 3065p leaving its hold recommendation. Deutsche Bank lowers target price from 3243p to 3129p retaining a hold recommendation.
ITV: Panmure Gordon raises target from 180p to 270p and maintains a buy recommendation.
Ladbrokers: JP Morgan lowers target from 150p to 140p and retains an underweight rating.
Legal & General Group: Oriel downgrades from buy to hold with a target of 200p.
Mothercare: Numis ups target from 450p to 475p and retains an add rating.
Optos: Jefferies cuts target from 240p to 220p maintaining a buy recommendation. Panmure Gordon shifts target from 200p to 206p and upgrades from hold to buy. Investec places its target (prev.: 141p), while leaving its reduce rating unaltered.
Plus500: Liberum Capital ups target from 200p to 275p and keeps a buy recommendation.
Speedy Hire: Liberum Capital initiates with a target of 88p and a buy recommendation.
Standard Life: Oriel upgrades from add to buy with a target of 400p.
UDG Healthcare: Jefferies cuts target from 400p to 340p retaining its buy recommendation.
Wenthworth Resources: Investec reduces target from 125p to 65p, while its buy recommendation remains unchanged.
William Hill: JP Morgan moves target from 400p to 360p and stays with its underweight rating.
Youngs: Panmure Gordon ups target from 955p to 983p retaining a hold recommendation. | | |
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