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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 head lower ahead of German ZEW data - ZEW survey tipped to rise in November
- FOMC minutes in focus
- easyJet reports strong annual profit growth
techMARK 2,640.79 -0.47%
FTSE 100 6,684.07 -0.59%
FTSE 250 15,241.76 -0.32%
UK markets opened firmly lower on Tuesday morning as investors refrained from building positions ahead of a key reading of German investor confidence.
The German ZEW economic sentiment survey, which attempts to predict economic conditions in six months' time, is expected to rise to 54 in November, from 52.8 the month before. The report comes a day after Bundesbank said Europe's biggest economy is growing solidly and its upturn will likely be consolidated in the coming months.
However, with the economic data schedule on the whole again pretty light, the focus will remain on tomorrow's release of the minutes of October's Federal Open Market Committee (FOMC). Although few are still expecting the Fed to begin scaling back its asset purchase programme this year - especially after Fed Chair nominee Janet Yellen's dovish comments last week - investors will be watching closely for hints of a potential time frame for the 'taper'.
"With Fed head [Ben] Bernanke on his way out in a matter of months, the market will be closely scrutinising the minutes to gauge a better understanding of his last possible moves as the Chairman," said Head of Trading Joe Rundle from ETX Capital.
US markets finished mixed last night after the Dow Jones Industrial Average and S&P 500 briefly topped record intraday levels of 16,000 and 1,800, respectively.
Concerns over the recent run on equity markets dampened sentiment on Monday after US activist investor Carl Icahn was reported as saying that a "big drop" could be around the corner. According to Reuters, Icahn said he was "very cautious on equities today" given that valuations are rich and earnings are bolstered by low borrowing costs rather than management's efforts to lift results.
easyJet flying high as profits surge
Budget airline easyJet gained early on after boosting annual profits by more than half and saying it is returning £308m to shareholders. easyJet said its allocated seating strategy, website improvements and its Europe by easyJet advertising campaign helped it to boost pre-tax profit in the year to September 30th rose 51% to £478m.
Investment in its television productions paid off for ITV in the third quarter, with revenues rising ahead of guidance and audience share swelling to boost future advertising potential. The stock advanced strongly in morning trade.
Heading the other way was Intertek as the product testing firm said that the industry-wide headwinds experienced in the first half have persisted for longer than expected.
Mining stocks were largely out of favour this morning with Fresnillo, Vedanta, Anglo American, Antofagasta and Rio Tinto tracking metals prices lower.
Fund manager Aberdeen was in the red, pulling back after a 15% surge on Monday following the announced acquisition of the Scottish Widows Investment Partnership Group from Lloyds, as well a strong increase in annual profits. Numis downgraded the stock to 'hold' this morning but lifted its target from 465p to 495p. |
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| FTSE 100 - Risers
easyJet (EZJ) 1,330.00p +5.89%
Amec (AMEC) 1,184.00p +1.46%
GlaxoSmithKline (GSK) 1,625.50p +0.74%
Capita (CPI) 983.50p +0.67%
National Grid (NG.) 779.00p +0.58%
SSE (SSE) 1,393.00p +0.29%
TUI Travel (TT.) 388.30p +0.28%
British Sky Broadcasting Group (BSY) 823.50p +0.18%
Imperial Tobacco Group (IMT) 2,429.00p +0.12%
British American Tobacco (BATS) 3,381.00p +0.06%
FTSE 100 - Fallers
Intertek Group (ITRK) 3,035.00p -4.59%
Aberdeen Asset Management (ADN) 477.00p -2.59%
William Hill (WMH) 359.80p -2.44%
Vedanta Resources (VED) 966.00p -2.28%
Anglo American (AAL) 1,410.00p -1.98%
Smiths Group (SMIN) 1,406.00p -1.88%
Fresnillo (FRES) 898.50p -1.86%
Antofagasta (ANTO) 797.50p -1.85%
Petrofac Ltd. (PFC) 1,179.00p -1.75%
Rio Tinto (RIO) 3,211.50p -1.62%
FTSE 250 - Risers
Afren (AFR) 159.80p +7.32%
Enterprise Inns (ETI) 148.00p +7.25%
Keller Group (KLR) 1,053.00p +4.78%
Thomas Cook Group (TCG) 144.40p +2.78%
Redrow (RDW) 265.00p +1.81%
AL Noor Hospitals Group (ANH) 860.00p +1.78%
Serco Group (SRP) 430.00p +1.49%
Centamin (DI) (CEY) 51.10p +1.39%
COLT Group SA (COLT) 130.10p +1.25%
Homeserve (HSV) 247.00p +1.19%
FTSE 250 - Fallers
Polymetal International (POLY) 541.50p -2.61%
Ladbrokes (LAD) 173.70p -2.53%
Kazakhmys (KAZ) 243.20p -2.33%
IG Group Holdings (IGG) 600.50p -2.28%
Lonmin (LMI) 324.90p -2.23%
Bwin.party Digital Entertainment (BPTY) 130.60p -2.17%
Ferrexpo (FXPO) 182.60p -1.99%
Hochschild Mining (HOC) 137.40p -1.86%
Investec (INVP) 426.40p -1.64% |
| | UK Event Calendar | | Tuesday November 19
INTERIMS
Big Yellow Group, Carclo, CML Microsystems, Eckoh, Entertainment One Limited, Halma, Homeserve, Intermediate Capital Group, Mckay Securities, Schroder Real Estate Investment Trust Ltd, Sepura, Vectura Group
INTERIM DIVIDEND PAYMENT DATE
Intu Properties
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
New Car Registrations (EU) (10:00)
Wholesale Price Index (GER) (07:00)
ZEW Survey (EU) (10:00)
ZEW Survey (GER) (10:00)
Q3
AFI Development
Q4
GW Pharmaceuticals
FINALS
easyJet, Enterprise Inns, GW Pharmaceuticals
ANNUAL REPORT
World Careers Network
IMSS
FBD Holdings, Galliford Try, IFG Group, Keller Group, Paddy Power, Smiths Group
EGMS
Marwyn Value Investors Ltd., Nokia OYJ
AGMS
Berkeley Resources Ltd. (DI), F&C UK Real Estate Investments Limited, Galliford Try, Marwyn Value Investors Ltd., Red Emperor Resources NL (DI), Smiths Group, Wasabi Energy
FINAL DIVIDEND PAYMENT DATE
Asian Citrus Holding
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks fall before German confidence data, FOMC minutes - German confidence figures out
- Investors wait on FOMC minutes
- European new car sales rise
FTSE 100: -0.57%
DAX: -0.38%
CAC 40: -0.71%
FTSE MIB: -0.72%
IBEX 35: -0.82%
Stoxx 600: -0.54%
European stocks declined before the release of German economic confidence figures and the US Federal Open Market Committee's (FOMC) meeting minutes.
ZEW's German economic sentiment index for November is expected to climb to 54 from 52.8 last month when released today. A reading above 50 signals expansion.
The report comes a day after Bundesbank said Europe's biggest economy is growing solidly and its upturn will likely be consolidated in coming months.
While Germany achieved growth of 0.7% in the second quarter, preliminary data shows it expanded by just 0.3% between July and September as exports weighed.
"There's a good chance that the economic upturn in Germany will be further cemented in the coming months," the central bank said in its November monthly report.
Residential construction and private consumption, boosted by robust labour market and strong wage increase, have helped lift the economy despite weak exports.
In the US, investors are already looking ahead to tomorrow when the minutes of the latest Federal Reserve policy meeting will be released. The minutes are expected to shed further light on the FOMC's reason behind its decision to maintain its monthly $85bn bond buying programme.
"Uncertainty over when the Fed is going to begin tapering its bond buying program is starting to make investors a little nervous at the moment," according to Craig Erlam, Market Analyst at Alpari.
Meanwhile, European new car sales have risen for two consecutive months for the first time since 2011, data revealed today.
The European Automobile Manufacturers Association said registrations in October increased 4.6% from a year earlier to 1.04m autos, driven by demand in Spain.
Paddy Power, easyJet
Paddy Power declined after the Irish betting company cut its forecast for full-year profit growth.
easyJet rallied as the European carrier said it will pay an additional dividend after full-year profit increased 51%.
Swiss Re Ltd advanced as the world's second-largest reinsurer agreed to buy an 11% in Sul America SA from ING Groep NV to expand in Brazil.
Other asset classes mixed
The euro rose 0.05% to $1.3512.
Brent crude futures dropped $0.407 to $108.030 per barrel. |
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| | US Market Report | | US close: Stocks end broadly lower after Icahn warns of 'big drop' - Icahn spooks markets, warns of 'big drop'
- Caution sets in after Dow tops 16,000, S&P 500 hits 1,800
- Boeing rises after record plane orders
Dow Jones: 0.09%
Nasdaq: -0.93%
S&P 500: -0.34%
US stock markets ended mixed on Monday as investors turned cautious after indices reached milestone intraday records.
The Dow Jones Industrial Average managed to surpass 16,000 for the first time but finished with gains of just 0.09%, while the S&P 500 briefly touched 1,800 before pulling back into the red, falling 0.34% on the day. The Nasdaq meanwhile finished with heavier losses of 0.93% after some sharp falls by Tesla Motors, Facebook, Microsoft.
Concerns over the recent run on equity markets dampened sentiment on Monday after activist investor Carl Icahn was reported as saying that a "big drop" could be around the corner.
According to Reuters, Icahn said he was "very cautious on equities today" given that valuations are rich and earnings are bolstered by low borrowing costs rather than management's efforts to lift results.
Speaking at the Reuters Global Investment Outlook Summit, he said: "Very simplistically put, a lot of the earnings are a mirage […] They are not coming because the companies are well run but because of low interest rates."
Markets were also starting to look ahead with caution to the minutes of the latest Federal Open Market Committee (FOMC) meeting due to be released on Wednesday.
Although few are still expecting the Fed to begin scaling back its asset purchase programme this year - especially after Fed Chair nominee Janet Yellen's dovish comments last week - investors will be watching closely for hints of a potential time frame for the 'taper'.
Boeing gains on record orders
Boeing gained following news the company secured record plane orders on the first day of the Dubai Air Show. It has signed a new deal with Abu Dhabi's state investment fund Mubadala for $2.5bn in advanced composites and machine metals. The company has also made an agreement with Abu Dhabi manufacturing company Tawazun Precision Industries to set up a facility in the United Arab Emirates for producing aerospace parts.
Tyson Foods was in positive territory after reporting a 41% jump in fourth-quarter earnings as it ramped up production in China. The company also raised its quarterly dividend by 50% and reported better-than-expected revenue guidance for the full year.
Tesla Motors was a heavy faller on Monday, providing a drag on the Nasdaq, with analysts citing a lack of near-term catalysts for the electric car maker as it faces an investigation at its Model S plant in California following an accident. The share price finished at a four-month low of $121.55.
Also on the Nasdaq, heavyweight social media network Facebook finished with heavy losses while tech group Nvidia slipped as Morgan Stanley cut its rating on the shares to 'underweight' from 'equal weight'.
Software giant Microsoft edged lower after analysts at Bank of America downgraded the stock from 'neutral' to 'underperform'.
S&P 500 - Risers
Dun & Bradstreet Corp. (DNB) $113.43 +2.41%
FMC Corp. (FMC) $75.10 +1.71%
NASDAQ OMX Group Inc. (NDAQ) $37.60 +1.40%
Sempra Energy (SRE) $91.16 +1.29%
Omnicom Group Inc. (OMC) $69.95 +1.26%
Celgene Corp. (CELG) $152.98 +1.24%
Moody's Corp. (MCO) $74.80 +1.16%
Pentair Ltd - Reg (PNR) $70.48 +1.06%
Bemis Co. Inc. (BMS) $39.15 +0.95%
Aon plc (AON) $81.58 +0.95%
S&P 500 - Fallers
Applied Materials Inc. (AMAT) $16.94 -3.31%
Whole Foods Market Inc. (WFM) $56.99 -3.14%
Vertex Pharmaceuticals Inc. (VRTX) $61.69 -2.68%
Alexion Pharmaceuticals Inc. (ALXN) $120.97 -2.50%
Nvidia Corp. (NVDA) $15.78 -2.41%
Netflix Inc. (NFLX) $341.77 -2.28%
Sears Holdings Corp. (SHLD) $63.01 -2.14%
Lam Research Corp. (LRCX) $51.52 -2.07%
First Solar Inc. (FSLR) $62.87 -2.06%
NetApp Inc. (NTAP) $40.57 -2.05%
Dow Jones I.A - Risers
Travelers Company Inc. (TRV) $88.67 +0.48%
Intel Corp. (INTC) $24.60 +0.33%
Procter & Gamble Co. (PG) $84.84 +0.00%
Goldman Sachs Group Inc. (GS) $164.40 +0.00%
Exxon Mobil Corp. (XOM) $95.27 +0.00%
United Technologies Corp. (UTX) $108.59 +0.00%
Caterpillar Inc. (CAT) $83.74 +0.00%
Chevron Corp. (CVX) $120.06 +0.00%
JP Morgan Chase & Co. (JPM) $54.87 +0.00%
McDonald's Corp. (MCD) $96.92 +0.00%
Dow Jones I.A - Fallers
Microsoft Corp. (MSFT) $37.20 -1.69%
Cisco Systems Inc. (CSCO) $21.29 -1.14%
3M Co. (MMM) $129.85 -0.00%
American Express Co. (AXP) $82.80 -0.00%
Coca-Cola Co. (KO) $40.22 -0.00%
General Electric Co. (GE) $27.20 -0.00%
Verizon Communications Inc. (VZ) $50.31 -0.00%
Pfizer Inc. (PFE) $32.20 -0.00%
Wal-Mart Stores Inc. (WMT) $79.22 -0.00%
Nike Inc. (NKE) $79.22 -0.00%
Nasdaq 100 - Risers
Celgene Corp. (CELG) $152.98 +1.24%
Amgen Inc. (AMGN) $116.03 +0.91%
Fiserv Inc. (FISV) $109.49 +0.81%
Charter Communications Inc. (CHTR) $129.54 +0.66%
Green Mountain Coffee Roasters Inc. (GMCR) $63.41 +0.63%
Citrix Systems Inc. (CTXS) $57.17 +0.47%
Vodafone Group Plc ADS (VOD) $37.42 +0.46%
Baidu Inc. (BIDU) $162.87 +0.33%
Intel Corp. (INTC) $24.60 +0.33%
Symantec Corp. (SYMC) $23.65 +0.28%
Nasdaq 100 - Fallers
Tesla Motors Inc (TSLA) $121.58 -10.24%
Facebook Inc. (FB) $45.83 -6.49%
Applied Materials Inc. (AMAT) $16.94 -3.31%
Whole Foods Market Inc. (WFM) $56.99 -3.14%
Sirius XM Holdings Inc (SIRI) $3.76 -2.72%
Vertex Pharmaceuticals Inc. (VRTX) $61.69 -2.68%
Alexion Pharmaceuticals Inc. (ALXN) $120.97 -2.50%
Nvidia Corp. (NVDA) $15.78 -2.41%
Netflix Inc. (NFLX) $341.77 -2.28%
Sears Holdings Corp. (SHLD) $63.01 -2.14% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: House prices, Severn Trent, Bitcoins A crash in house prices is one of the fastest-growing risks for Britain's lenders, according to a survey by the Bank of England. Banks, hedge funds and insurers told the central bank that the housing market was becoming a "bubble" that posed dangerous threats to financial stability. They also warned, in the Bank's half-yearly Systemic Risk Survey of finance professionals, that a "snapback" in interest rates from the historic low of 0.5% to more normal levels would hit borrowers and send shares, property and debt markets reeling, The Times reports.
Liv Garfield, responsible for the £2.5bn rollout of super-fast fibre broadband as BT's boss of Openreach, is leaving to become chief executive of FTSE 100 water company Severn Trent. Garfield, 38, will take up the role in spring 2014 following the retirement of Tony Wray. Her annual salary will be £650,000, with a 25% pension contribution taking the package up to £812,500, and will also be eligible for an annual bonus of up to 120% of her £650,000 salary.The surprise move will be considered a blow for BT, according to The Guardian.
A US Senate hearing on the "risks, threats and promises" of virtual currencies sparked a new leg up in the price of Bitcoin, the experimental currency which has risen by more than 5,000% in value this year. An intervention by Ben Bernanke, chairman of the Federal Reserve, enabled Bitcoin's enthusiasts to put the spotlight where they believe its potential value lies, namely as a cheaper alternative to the current system for transferring money around the world, the Financial Times says.
The company behind iconic British treats such as Jammie Dodgers and Wagon Wheels has been snapped up by a Canadian pension fund in a deal thought to be worth almost £350m. Burton's Biscuits, which employs some 800 workers at its Sighthill plant in Edinburgh, has been sold to Ontario Teachers' Pension Plan (OTPP). Jo Taylor, head of the pension fund's London office, said the plan was to support growth plans at the business, with the possibility of using OTPP's formidable firepower to make strategic acquisitions, The Scotsman says.
JPMorgan Chase is expected to pay around $4bn as part of a compensation agreement that could hit $13bn as talks to finalise the deal took place last night between the United States Government and the investment bank. The final settlement with the US Justice Department, which could be announced today, will include the previously reported $4bn that was agreed between JPMorgan and the Federal Housing Finance Agency, writes The Times.
British companies trying to plug the black holes in their final salary pension schemes have spent £182bn since the beginning of quantitative easing in 2009. The introduction of the Bank of England's 'money printing' economic stimulus measure has taken a substantial toll on firms running lucrative defined benefits pension schemes. They pumped £29bn into reducing their deficits in 2012/13. This is actually a fall on the £36bn paid in 2011/12, but employers have made an additional £18bn in 'special' payments to ensure their shortfalls don't widen even further, according to The Daily Mail. | | |
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