| | | | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: FTSE falls on Fed minutes and Chinese data - Fed to wind down QE in 'coming months'
- Chinese PMI slows
- UK car manufacturing up
- Nikkei at six-month high
techMARK 2,629.93 +0.14%
FTSE 100 6,652.29 -0.43%
FTSE 250 15,181.11 +0.02%
The FTSE fell early on, as investors digested the minutes from the latest Federal Reserve meeting, which revealed members had continued to support the idea of winding down bond purchases in the 'coming months'.
The minutes showed that members of the committee believe the US economy has shown signs of improvement, but assured short-term interest rates would remain low for quite some time to come.
Most significantly, comments from the meeting revealed members "generally expected that the data would prove consistent with the committee's outlook for ongoing improvement in labour market conditions and would thus warrant trimming the pace of purchases in coming months".
Alpari Market Analyst, Craig Erlam, said: "Many members of the Fed now appear eager to start winding down its asset purchases and are looking for ways to do it that will create the least disruption in the financial markets, such as setting simple thresholds for reductions, or even more simply, providing a timetable for tapering that is not data dependent."
Adding to the cautious mood amongst investors this morning was China's flash Markit/HSBC manufacturing PMI, which showed a slowdown to 50.4 in November from 50.9 in October, giving rise to fears that economic growth was stalling.
In the UK, car production climbed 17% year-on-year last month, with a total of 160,854 cars built during the four-week period, driven largely by British demand, according to the Society of Motor Manufacturers and Traders (SMMT).
Worth noting, the Nikkei, Japan's main share index, has risen to a six-month high overnight, buoyed by a weaker yen and comments from the Bank of Japan which revealed the economy was "recovering moderately".
Later in the 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.
The jobs data will be used by investors to weigh whether the labour market has improved enough for a possible tapering of the Federal Reserve's stimulus programme next month.
Busy day on the earnings front
National Grid defended its dividend policy as it reported a solid first half, although profits fell 7% due to financing costs, pushing shares lower in early trade. Chief Executive Steve Holliday said the company needed to pay a half year dividend per share of 14.49p per share, matching last year's, to reward investors for underpinning plans to invest £26bn in its UK and US energy networks in the next eight years.
SABMiller's investors appeared unconcerned that revenues in the first half were hurt by the depreciation of key currencies against the US dollar, with the share price moving higher early on. The drinks giant's revenue in the six months through September were flat against the prior year at $17.5bn.
Rolls-Royce moved lower despite unveiling yet another contract win, this time with Petrobras. The $138M, five-year services contract will see it support Petrorbras's oil production activities offshore Brazil by supplying advanced maintenance and repair services to support fifteen Rolls-Royce RB211-G62 industrial gas turbine power generation units.
Speciality chemicals firm Johnson Matthey charged higher 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. Underlying pre-tax profit rose 13% to £212.9m for the six months ended September 30th on revenue that surged 31% to £6.4bn. |
| | The Share Centre: | | Trade online - Just £7.50 per deal.
Sign up in minutes.
Click here to find out more
Capital at Risk Click Here |
| FTSE 100 - Risers
Johnson Matthey (JMAT) 3,176.00p +2.65%
Shire Plc (SHP) 2,832.00p +1.47%
William Hill (WMH) 363.60p +1.11%
AstraZeneca (AZN) 3,329.50p +0.63%
International Consolidated Airlines Group SA (CDI) (IAG) 355.10p +0.59%
GlaxoSmithKline (GSK) 1,640.50p +0.55%
G4S (GFS) 261.60p +0.54%
WPP (WPP) 1,336.00p +0.53%
SABMiller (SAB) 3,246.50p +0.36%
SSE (SSE) 1,367.00p +0.29%
FTSE 100 - Fallers
Aberdeen Asset Management (ADN) 480.90p -2.26%
Antofagasta (ANTO) 790.00p -2.11%
Imperial Tobacco Group (IMT) 2,381.00p -2.02%
Melrose Industries (MRO) 292.00p -1.85%
Vedanta Resources (VED) 933.50p -1.84%
Fresnillo (FRES) 888.50p -1.77%
British American Tobacco (BATS) 3,301.50p -1.74%
Resolution Ltd. (RSL) 340.60p -1.56%
CRH (CRH) 1,557.00p -1.46%
Rexam (REX) 488.00p -1.45%
FTSE 250 - Risers
QinetiQ Group (QQ.) 210.50p +7.02%
Carpetright (CPR) 626.00p +5.21%
NMC Health (NMC) 389.50p +2.50%
Serco Group (SRP) 441.30p +2.46%
Kenmare Resources (KMR) 20.47p +2.35%
Domino's Pizza Group (DOM) 580.50p +1.84%
Pace (PIC) 318.60p +1.66%
Euromoney Institutional Investor (ERM) 1,147.00p +1.50%
Shaftesbury (SHB) 611.50p +1.49%
Fidessa Group (FDSA) 2,080.00p +1.27%
FTSE 250 - Fallers
Intermediate Capital Group (ICP) 442.60p -3.91%
Polymetal International (POLY) 531.50p -1.76%
Playtech (PTEC) 667.00p -1.62%
Hochschild Mining (HOC) 132.50p -1.34%
Essar Energy (ESSR) 97.85p -1.31%
esure Group (ESUR) 234.80p -1.30%
Diploma (DPLM) 691.00p -1.29%
Ocado Group (OCDO) 426.00p -1.21%
Senior (SNR) 279.70p -1.20% |
| | Download your free Santa Rally report. | | Have you heard of the stock market phenomenon called the Santa Rally? The FTSE 100 has risen in 18 of the last 20 Decembers*. Download your free report showing a breaking down of what the average rise has been for the stocks within the FTSE over the month of December. Losses can exceed deposits. * Past performance is no guarantee of the future |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks fall as FOMC minutes point to tapering - FOMC minutes suggest tapering is near
- Eurozone PMI composite declines
- Euro-area confidence figures to be released
- Chinese manufacturing falls unexpectedly
FTSE 100: -0.47%
DAX: -0.72%
CAC 40: -0.93%
FTSE MIB: -0.61%
IBEX 35: -0.60%
Stoxx 600: -0.64%
European stocks declined after the Federal Open Market Committee's meeting minutes suggested a tapering of monetary stimulus could come at "one of its next few meetings".
The minutes revealed the details behind the Federal Reserve'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.
"Many members of the Fed now appear eager to start winding down its asset purchases and are looking for ways to do it that will create the least disruption in the financial markets, such as setting simple thresholds for reductions, or even more simply, providing a timetable for tapering that is not data dependent," he said.
"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."
On today's agenda, economic data will include the release of Eurozone manufacturing and consumer confidence, UK public finances and US initial jobless claims.
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 both 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.
Eurozone consumer confidence for November will increase to -14 from -14.5, separate data is anticipated to show.
City economists predict UK public finances to have improved markedly in October with the cash requirement, the key measure for debt issuance, falling more rapidly than the headline borrowing numbers. Public sector finances came in at £0.6bn in September.
Later in the 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.
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.
Atos, Zurich Insurance
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.
Euro/dollar and Brent crude slide
The euro fell 0.09% to $1.3427.
Brent crude dropped $0.028 to $108.030 per barrel, according to data from the ICE. |
| | Advfn exclusive complimentary seminar | | – Tuesday 3rd December 6 – 8pm - Whether you are looking to make a direct investment or to invest your pension fund, this free seminar will explain how you can enjoy double digit returns from property investment in London and the South. Click here to register |
| | US Market Report | | US close: Stocks fall on taper uncertainty ahead of FOMC minutes - Comments from Fed speakers in focus ahead of FOMC minutes
- OECD cuts global growth forecasts
- Best Buy, Campbell Soup fail to impress with earnings
Dow Jones: -0.06%
Nasdaq: -0.43%
S&P 500: -0.20%
Increased speculation over the scaling back of quantitative easing pushed US markets into the red on Tuesday while quarterly results from Best Buy and Campbell Soup disappointed.
Eyes were beginning to turn to Wednesday release of the minutes of October's Federal Open Market Committee (FOMC) meeting as investors await hints of a potential timeframe for the impending 'taper'.
Fed Bank of New York President William Dudley spread concerns that the central bank's staged withdrawal of stimulus could be just around the corner after saying that he was "getting more hopeful" on the outlook for the US economy.
However, head of the Chicago Fed Charles Evans said he is "not in a hurry myself to reduce the flow of purchases […] I'd rather wait just a little bit longer and have more confidence".
This follows comments from Philadephia Fed President Charles Plosser, who called for a fixed dollar amount on the Fed's asset purchase programme, proposing an end to the scheme once that limit is reached.
Meanwhile, investors were restrained today after OECD revised down its global growth forecasts "significantly", blaming a slowdown in emerging markets. It expects the global economy to expand by just 2.7% in 2013 and 3.6% in 2014, compared with previous estimates in May of 3.1% and 4% growth, respectively.
The OECD also said that the tapering of asset purchases and brinkmanship in Washington over the debt ceiling were potential risks that could derail the global recovery. "These episodes could easily be replayed, quite possibly in a more virulent form, in the period ahead," warned Pier Carlo Padoan, Deputy Secretary-General and Chief Economist of the OECD.
Anxiety over the recent run on equity markets continued to dampen sentiment after activist investor Carl Icahn was reported as saying on Monday 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 improve results.
Best Buy, Campbell Soup under selling pressure
Consumer-electronics retailer Best Buy slumped after it warned that margins could come under pressure as it attempts to keep up with promotional activity across the industry on Black Friday and throughout the Christmas shopping season.
Campbell Soup also fell sharply after its fiscal first-quarter net income dropped 30%, coming in well below analysts' estimates.
Tesla Motors gained strongly after Chief Executive Elon Musk outlined a plan on a company blog to ease fears amongst investors regarding recent incidents involving its electric cars.
Horizon Pharma surged after agreeing to buy the US rights for AstraZeneca's Vimovo treatment for osteoarthritis and rheumatoid arthritis.
S&P 500 - Risers
Devon Energy Corp. (DVN) $62.77 +4.98%
Tyson Foods Inc. (TSN) $30.78 +4.62%
Boston Scientific Corp. (BSX) $11.96 +3.37%
Southwestern Energy Co. (SWN) $37.44 +3.14%
Automatic Data Processing Inc. (ADP) $79.71 +3.04%
Range Resources Corp. (RRC) $75.55 +2.37%
Abbott Laboratories (ABT) $38.71 +2.03%
Alcoa Inc. (AA) $9.13 +2.01%
McGraw Hill Financial Inc (MHFI) $73.56 +2.00%
Bank of America Corp. (BAC) $15.20 +1.88%
S&P 500 - Fallers
Best Buy Co. Inc. (BBY) $38.78 -10.97%
Campbell Soup Co. (CPB) $39.20 -6.24%
Jacobs Engineering Group Inc. (JEC) $60.03 -5.84%
Salesforce.Com Inc. (CRM) $52.74 -4.99%
Altera Corp. (ALTR) $31.06 -4.34%
First Solar Inc. (FSLR) $60.42 -3.90%
LSI Corporation (LSI) $7.89 -3.48%
GameStop Corp. (GME) $53.19 -3.36%
Electronic Arts Inc. (EA) $23.32 -3.32%
Tenet Healthcare Corp. (THC) $40.63 -3.19%
Dow Jones I.A - Risers
Chevron Corp. (CVX) $122.06 +1.24%
Home Depot Inc. (HD) $80.38 +0.89%
JP Morgan Chase & Co. (JPM) $56.15 +0.74%
Cisco Systems Inc. (CSCO) $21.42 +0.61%
Johnson & Johnson (JNJ) $94.86 +0.59%
Goldman Sachs Group Inc. (GS) $166.60 +0.56%
International Business Machines Corp. (IBM) $185.25 +0.42%
Intel Corp. (INTC) $24.70 +0.41%
McDonald's Corp. (MCD) $97.98 +0.34%
AT&T Inc. (T) $35.72 +0.34%
Dow Jones I.A - Fallers
Visa Inc. (V) $197.39 -1.26%
Microsoft Corp. (MSFT) $36.74 -1.24%
Pfizer Inc. (PFE) $31.66 -1.09%
Boeing Co. (BA) $136.98 -1.00%
Nike Inc. (NKE) $77.81 -0.98%
General Electric Co. (GE) $27.03 -0.70%
Walt Disney Co. (DIS) $69.12 -0.55%
Caterpillar Inc. (CAT) $83.67 -0.44%
E.I. du Pont de Nemours and Co. (DD) $61.49 -0.34%
Procter & Gamble Co. (PG) $84.34 -0.27%
Nasdaq 100 - Risers
Tesla Motors Inc (TSLA) $126.09 +3.71%
Automatic Data Processing Inc. (ADP) $79.71 +3.04%
Randgold Resources Ltd. Ads (GOLD) $74.23 +1.87%
Biogen Idec Inc. (BIIB) $245.46 +1.74%
Facebook Inc. (FB) $46.36 +1.16%
Vertex Pharmaceuticals Inc. (VRTX) $62.38 +1.12%
Gilead Sciences Inc. (GILD) $69.66 +1.00%
Garmin Ltd. (GRMN) $47.70 +1.00%
Celgene Corp. (CELG) $154.44 +0.95%
DIRECTV (DTV) $65.47 +0.66%
Nasdaq 100 - Fallers
Altera Corp. (ALTR) $31.06 -4.34%
Activision Blizzard Inc. (ATVI) $16.89 -3.62%
Green Mountain Coffee Roasters Inc. (GMCR) $61.43 -3.12%
Wynn Resorts Ltd. (WYNN) $159.20 -2.68%
Autodesk Inc. (ADSK) $42.28 -2.36%
Avago Technologies Ltd. (AVGO) $42.95 -2.30%
F5 Networks Inc. (FFIV) $82.02 -2.23%
Whole Foods Market Inc. (WFM) $55.72 -2.23%
Sears Holdings Corp. (SHLD) $61.61 -2.22%
Nvidia Corp. (NVDA) $15.44 -2.15% |
| | 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. |
| | Newspaper Round Up | | Thursday newspaper round-up: China, Royal Mail, Lloyds Veteran UK fund manager Anthony Bolton believes that China's 'momentous' package of economic reforms, revealed last week, will be the catalyst that draws foreign investors back to one of the world's worst performing equity markets. China's top leaders last week released a blueprint for change covering various aspects of economic, social, and financial policy. Some economists have described it as the most important political development in China for more than 20 years, the Financial Times reports.
The government would be "mad" to pay more than £4m in deferred fees to the banks that advised on Royal Mail's privatisation because they undervalued the company, the chairman of a parliamentary committee said after grilling the bankers on Wednesday. Adrian Bailey, who chairs the Business, Innovation and Skills (Bis) select committee, said paying the fees, on top of more than £12m already handed over, would reward highly paid bankers who set the float price too low at the expense of the taxpayer, The Guardian reports.
Britain's biggest listed commercial property companies have taken a big bet on soaring London house prices and have significantly stepped up their plans to build high-end housing developments. UK real estate investment trusts plan to devote more than one-quarter of their activity to residential projects over the next five years and have lined up a £3bn pipeline of new housing developments, figures from analysts Green Street Advisors show, according to the Financial Times.
City advisers to the UK government's privatisation of Royal Mail yesterday hit back at critics who had alleged that they sold one of the remaining state-owned crown jewels on the cheap. Shares in Royal Mail have rocketed by up to 80% since the privatisation, sparking claims by trade unions and opposition politicians that the float was under-priced for a politically expedient sale. But directors from investment banking giants Goldman Sachs and UBS, which advised Whitehall, told MPs on the business select committee that market uncertainty and the float's complexity contributed to a conservative £3.3bn valuation, The Scotsman reports.
The Business Secretary said he was concerned that lending to SMEs had not picked up, despite the introduction of the Funding for Lending Scheme, and that credit was finding its way mainly to the housing market, where many experts fear a property bubble could be building. This was further highlighted by figures out yesterday, which showed that mortgage lending soared to a five-year high last month as housing activity picked up on the back of resurgent levels of consumer confidence, writes The Times.
The Chief Executive of Lloyds has secured a £2.3m bonus for keeping the price of the banking group's shares above water for 30 nail-biting days. The award for António Horta-Osório crystallised yesterday after a month in which Lloyds' shares consistently closed above 73.6p, the average in-price for the stake the Government took during the financial crisis. Lloyds' shares were unchanged at 75p last night. Mr Horta-Osório will receive the award in the form of three million shares in 2018, valued at present at £2.3m. It must also pass Lloyds' remuneration committee, The Times reports. | | |
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