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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: Miners lift FTSE 100 higher early on - Trading volumes to pick up later on, says analyst
- UK consumer confidence falls again
- Miners gain; housebuilders extend losses
techMARK 2,674.86 +0.26%
FTSE 100 6,666.33 +0.18%
FTSE 250 15,468.87 +0.24%
UK markets edged higher in early trading on Friday following a quiet session the day before, with volumes expected to recover as US markets re-open later on.
"Volumes have been light as the trading week draws to a close owing to the shutdown of US markets as Americans around the world celebrate Thanksgiving," said Max Cohen, Financial Sales Trader at Spreadex.
Wall Street will re-open today at the usual time, but will close after a half day's trade at around 18:00 London time. "We can expect this afternoon's session to be a rather more lively affair when the US markets re-open as investors seek to squeeze all their trading into a small window before heading into the weekend," Cohen said.
Nevertheless, in spite of the lull experienced on Thursday, the FTSE 100 still managed to register small gains, tracking another record performance from US benchmarks as the Dow Jones Industrial Average and S&P 500 set fresh all-time highs on Wednesday. Meanwhile, the FTSE All-World equity index was trading close to a six-year high yesterday.
Markets will this morning be digesting the news UK consumer confidence registered a surprise decline in October. The Gfk index showed a fall to a seasonally adjusted -12, compared to -11 the previous month, which also revealed a fall. The figure had been expected to rise to -10. This was the first consecutive monthly decline in the index since mid-2011.
In other UK news, house prices rose at the fastest pace in more than three years in November, data from Nationwide revealed on Friday. Prices jumped 6.5% year-on-year, compared to the previous month's rise of 5.8% and the consensus forecast for a 6.2% increase.
Other data elsewhere this morning is expected to show that Eurozone inflation increased to 0.8% in November from 0.7% in October. Consumer prices in the bloc dropped sharply last month, prompting the European Central Bank to cut interest rates to 0.25% from 0.5%.
Miners track metal prices higher
Precious metals group Fresnillo was a high riser this morning as metal prices gained across the board with increases seen in gold, silver, copper and platinum early on.
Antofagasta, African Barrick Gold and Kazakhmys were all trading higher, as comments on top metals consumer China from Standard & Poor's also lifted sentiment. The agency reiterated its 'AA-' long-term and 'A-1+' short-term sovereign credit ratings on China with a 'stable' outlook, citing robust growth prospects.
Even Rio Tinto was up despite the news that it plans to temporarily suspend alumina production at its Gove refinery in Australia as it is "no longer viable" in the current economic environment. The stock performed well on Thursday after the miner announced that it would ramp-up production at a lower cost at its iron ore business in Western Australia.
Housebuilders were in the red again for the second day after the government announced yesterday that it would be changing it Funding for Lending scheme to focus on small businesses, rather than mortgage lending. Persimmon, Taylor Wimpey, Barratt Developments and Travis Perkins were all extending losses this morning.
Credit checking group Experian was also trading lower this morning after analysts at Goldman Sachs downgraded their rating on the stock to 'sell' and cut their target from 1,220p to 985p. |
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| FTSE 100 - Risers
Antofagasta (ANTO) 800.00p +1.46%
Aggreko (AGK) 1,593.00p +1.21%
Fresnillo (FRES) 845.50p +1.20%
Whitbread (WTB) 3,559.00p +1.14%
Vedanta Resources (VED) 905.00p +1.06%
Rio Tinto (RIO) 3,294.00p +1.01%
Petrofac Ltd. (PFC) 1,269.00p +0.87%
Compass Group (CPG) 929.50p +0.81%
William Hill (WMH) 384.00p +0.76%
IMI (IMI) 1,478.00p +0.75%
FTSE 100 - Fallers
Experian (EXPN) 1,122.00p -3.19%
Mondi (MNDI) 1,007.00p -0.79%
Sports Direct International (SPD) 738.00p -0.67%
BHP Billiton (BLT) 1,867.00p -0.45%
Centrica (CNA) 340.00p -0.44%
Royal Bank of Scotland Group (RBS) 331.60p -0.39%
Shire Plc (SHP) 2,755.00p -0.33%
Melrose Industries (MRO) 292.90p -0.24%
Smiths Group (SMIN) 1,368.00p -0.22%
Bunzl (BNZL) 1,390.00p -0.22%
FTSE 250 - Risers
Rentokil Initial (RTO) 105.90p +3.02%
Carpetright (CPR) 598.50p +2.66%
Workspace Group (WKP) 506.00p +2.51%
Dunelm Group (DNLM) 908.00p +2.43%
Serco Group (SRP) 457.00p +2.35%
Euromoney Institutional Investor (ERM) 1,223.00p +2.34%
Synthomer (SYNT) 236.90p +2.24%
Diploma (DPLM) 710.50p +2.23%
Berkeley Group Holdings (The) (BKG) 2,407.00p +2.16%
Oxford Instruments (OXIG) 1,517.00p +1.88%
FTSE 250 - Fallers
IP Group (IPO) 174.70p -4.01%
Thomas Cook Group (TCG) 171.00p -2.67%
PayPoint (PAY) 1,042.00p -1.61%
Imagination Technologies Group (IMG) 247.20p -1.12%
Rank Group (RNK) 142.50p -1.04%
Ocado Group (OCDO) 406.00p -0.88%
Centamin (DI) (CEY) 42.27p -0.80%
Alent (ALNT) 339.10p -0.76%
Hochschild Mining (HOC) 144.40p -0.76% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise as S&P raises Spain's debt outlook - S&P upgrades Spain's debt outlook
- Eurozone CPI to be released
- German retail sales fall
- UK house prices rise
- UK consumer confidence declines
FTSE 100: 0.17%
DAX: -0.01%
CAC 40: 0.07%
FTSE MIB: 0.19%
IBEX 35: 0.51%
Stoxx 600: 0.03%
Europe stocks were mostly higher after Spain's debt outlook was raised by credit rating agency Standard & Poor's (S&P) and before the release of Eurozone inflation figures.
The S&P lifted its rating of Spain to stable from negative, citing a recovery in the European nation.
"We see improvement in Spain's external position as economic growth gradually resumes," S&P said in a statement as it affirmed the country at BBB, the lowest investment grade, and removed the negative outlook on the debt that was introduced in October 2012.
Spain first lost its top credit rating at S&P in 2009 and has since yet to receive an upgrade from any of the three main rating companies.
On today's agenda, Eurozone consumer prices are expected to rise 0.8% in November from 0.7% in October, according to consensus.
Another report showed Germany retail sales in October fell 0.8% on the month, compared to September's revised 0.2% decline and a forecast for an increase of 0.5%. The news saw Germany's DAX index drop slightly by 0.01% in opening trading.
In the UK, house prices climbed 6.5% year-on-year, up from the previous month's 5.8% jump, Nationwide figures showed. Economists had pencilled in a 6.2% rise.
It was the biggest jump since July 2010 and vindicated Bank of England Governor Mark Carney's view that house prices are continuing to accelerate as he announced a scaling back of the Funding for Lending Scheme yesterday.
The central bank is going refocus the scheme, which helps increase mortgage lending to home-buyers and businesses, to focus solely on helping small firms that find it hard to borrow in an effort to curb rising prices and the risk of a housing bubble.
Chief UK and European Economist at IHS Global Insight, Howard Archer, said house prices look set to see further strong increases over the coming months despite BoE's end to its Funding for Lending Scheme.
He expects to see another marked rise in December and an increase of about 8% in 2014, driven mostly by London and parts of the South East.
Archer added that "the decision of the Bank of England and the Treasury to end Funding for Lending support for lending to households from January looks a highly sensible decision, although in itself it is unlikely to act as a major brake on housing market activity".
"We believe that it is very important that the Bank of England has indicated that it is prepared to take further action to rein in the housing market if prices rise markedly amid ongoing strengthening activity."
Also in the UK was the release of GfK's consumer confidence report which registered a surprise decline in October.
The sentiment index fell to a seasonally adjusted -12, compared to -11 the month previous. The figure had been expected to rise to -10. There has not been a month-on-month decline since mid-2011.
British consumers were concerned about their personal financial situations and felt less confident about making large purchases despite signs of an improving economy, the data showed.
Mining stocks gain
A gauge of mining stocks rallied including Antofagasta, Fresnillo and Rio Tinto rallied as the price of gold, copper and silver gained.
Credit checking firm Experian slumped after receiving a downgrade from Goldman Sachs
BNP Paribas gained after France's biggest bank said it became the first foreign lender to sell bonds denominated in forint on expectations that Hungary's economy and its currency will rebound from a slump.
The euro fell 0.2% to $1.3603
Brent crude futures rose $0.009 to $110. 870 per barrel on the ICE. |
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| | US Market Report | | US close: Dow, S&P hit new highs after economic data - Jobless claims, consumer confidence brighten outlook
- Durable goods fall due to pull back in defence, aircraft
- H-P jumps after Q4 results exceed forecasts
- Markets prepare for Thanksgiving
Dow Jones: 0.15%
Nasdaq: 0.68%
S&P 500: 0.24%
Economic data came in mostly better than expected on Wednesday, lifting US markets to new highs ahead of the Thanksgiving holidays, with solid gains from tech giant Hewlett-Packard providing a lift.
Figures showing an unexpected fall in jobless claims, a jump in consumer confidence along with improvements in Chicago manufacturing activity and the leading indicators index gave stocks a boost today, with the Dow Jones Industrial Average and S&P 500 finishing at fresh records of 16,097.33 and 1,807.23, respectively. Meanwhile, the Nasdaq Composite set a new 13-year high of 4,044.75.
Markets are continuing to look at incoming data as they await the Federal Reserve's impending decision to scale back stimulus. According to analysts at Capital Economics, non-farm payrolls – due to be released next week – will likely show a solid 180,000 increase in November, "which may be enough to prompt the Fed to taper its asset purchases at the policy meeting in December".
Deluge of economic data
Initial claims for unemployment benefits fell to 316,000 in the week ended November 23rd, down from a revised 326,000 the week before. Analysts were expecting a number closer to 330,000. However, the combination of the later-than-usual timing of Thanksgiving and the Veterans Day holiday makes it more difficult to properly seasonally adjust the data, analysts said.
The final reading of the University of Michigan consumer confidence index increased 75.1 in November from an initial reading of 72 and October's level of 73.2.
The Chicago purchasing managers' index, which measures activity in the manufacturing sector, fell from 65.9 to 63 in November, but this still came in ahead of the prediction of 60 by analysts. Stock building made a large contribution to activity in the sector, MNI said.
The leading indicators composite index increased by 0.2% in October after a revised 0.9% gain the month before. Consensus forecasts were for no change.
Durable goods orders fell by 2% month-on-month in October, in line with estimates, due to the volatile sectors of defence and aircraft which pulled back following strong growth in September. The previous month's growth, however, was revised higher to 4.1%. 'Core' durable goods orders which exclude defence and aircraft declined by 1.2% in October.
A report from the Mortgage Bankers' Assocation (MBA) showed mortgage applications dropped 0.3% in the week to November 22nd, from a 2.3% fall previously.
H-P jumps after Q4 beat
Hewlett-Packard snapped higher after the maker of personal computers posted revenue and profit that beat analysts' estimates. Fourth-quarter revenue fell by 3% to $29.1bn, but that was well ahead of the $27.9bn consensus forecast, helped by better-than-expected growth in its enterprise division.
The share price of Apple was extending gains after hitting its highest close in almost a year on Tuesday.
Analog Devices Inc slumped after forecasting first-quarter profit that missed consensus.
Schlumberger and Noble Energy dropped as crude prices dropped near to a six-month low.
S&P 500 - Risers
Hewlett-Packard Co. (HPQ) $27.36 +9.05%
J.C. Penney Co. Inc. (JCP) $10.08 +7.69%
Cablevision Systems Corp. (CVC) $16.56 +5.08%
Micron Technology Inc. (MU) $21.17 +4.23%
Tesoro Corp. (TSO) $59.08 +3.72%
Valero Energy Corp. (VLO) $45.97 +3.65%
Marathon Petroleum Corporation (MPC) $84.34 +3.42%
Weyerhaeuser Co. (WY) $30.59 +3.38%
Plum Creek Timber Co. (PCL) $44.36 +3.14%
Apple Inc. (AAPL) $545.96 +2.35%
S&P 500 - Fallers
Noble Energy Inc. (NBL) $69.87 -4.52%
Newfield Exploration Co (NFX) $28.26 -4.14%
Analog Devices Inc. (ADI) $48.54 -2.76%
Laboratory Corporation of America Holdings (LH) $102.28 -2.64%
Hess Corp. (HES) $81.48 -2.55%
Pioneer Natural Resources Co. (PXD) $178.91 -2.52%
Occidental Petroleum Corp. (OXY) $95.20 -2.49%
Dollar General Corp (DG) $57.35 -2.45%
Anadarko Petroleum Corp. (APC) $88.60 -2.18%
QEP Resources Inc (QEP) $32.10 -1.89%
Dow Jones I.A - Risers
Intel Corp. (INTC) $23.90 +1.06%
3M Co. (MMM) $133.50 +1.02%
International Business Machines Corp. (IBM) $178.97 +0.94%
Microsoft Corp. (MSFT) $37.60 +0.67%
American Express Co. (AXP) $85.59 +0.59%
JP Morgan Chase & Co. (JPM) $57.48 +0.54%
United Technologies Corp. (UTX) $111.51 +0.51%
Merck & Co. Inc. (MRK) $49.83 +0.50%
Home Depot Inc. (HD) $80.66 +0.39%
AT&T Inc. (T) $35.41 +0.37%
Dow Jones I.A - Fallers
McDonald's Corp. (MCD) $97.06 -1.16%
Walt Disney Co. (DIS) $70.77 -0.58%
Exxon Mobil Corp. (XOM) $93.80 -0.50%
Procter & Gamble Co. (PG) $84.28 -0.43%
Nike Inc. (NKE) $79.33 -0.34%
Chevron Corp. (CVX) $122.42 -0.29%
Verizon Communications Inc. (VZ) $49.93 -0.24%
Coca-Cola Co. (KO) $40.19 -0.15%
Johnson & Johnson (JNJ) $94.98 -0.08%
Boeing Co. (BA) $134.72 -0.04%
Nasdaq 100 - Risers
Tesla Motors Inc (TSLA) $126.94 +5.34%
Green Mountain Coffee Roasters Inc. (GMCR) $67.51 +5.22%
Micron Technology Inc. (MU) $21.17 +4.23%
Apple Inc. (AAPL) $545.96 +2.35%
Nuance Communications Inc. (NUAN) $13.40 +2.29%
Netflix Inc. (NFLX) $362.49 +2.05%
Check Point Software Technologies Ltd. (CHKP) $61.74 +1.97%
Monster Beverage Corp (MNST) $59.85 +1.79%
Western Digital Corp. (WDC) $76.19 +1.78%
Biogen Idec Inc. (BIIB) $293.83 +1.60%
Nasdaq 100 - Fallers
Analog Devices Inc. (ADI) $48.54 -2.76%
Sears Holdings Corp. (SHLD) $63.68 -1.35%
Equinix Inc. (EQIX) $160.62 -1.18%
Celgene Corp. (CELG) $161.52 -1.17%
Applied Materials Inc. (AMAT) $17.35 -0.97%
Charter Communications Inc. (CHTR) $134.98 -0.84%
Mylan Inc. (MYL) $44.14 -0.81%
Regeneron Pharmaceuticals Inc. (REGN) $292.88 -0.76%
KLA-Tencor Corp. (KLAC) $64.03 -0.65%
Dollar Tree Inc (DLTR) $55.83 -0.64% |
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| | Newspaper Round Up | | Friday newspaper round-up: Netherlands, Japan, Royal Mail The Netherlands has become the latest Eurozone member to be stripped of its AAA credit rating by Standard & Poor's, citing weakening growth prospects as it cut the country's rating to AA+. Earlier this month France also suffered a downgrade by S&P, when it was cut from AA+ to AA – two years after losing its AAA rating. Of the 17 members of the single currency bloc, only Germany, Finland and Luxembourg still hold an AAA rating from S&P – Financial Times
Japan is on track to win its war on deflation with the latest consumer price inflation figures showing the highest reading since the country slipped into deflation 15 years ago. Core consumer price index inflation, which excludes fresh food but includes energy, hit 0.9% in October, in line with economists' expectations. Excluding both fresh food and energy, it reached 0.3%, the highest reading since 1998, indicating that rising energy costs alone were not the sole factor in inflationary pressure. – The Financial Times
Goldman Sachs has risked a further escalation of the Royal Mail privatisation row by putting a price target on the shares of 610p despite telling the government that the business should be floated at 330p last month. Analysts at Goldman said the postal group's valuation should benefit from an increase in parcel deliveries, despite falling letter volumes. The investment bank's 12-month price target of 610p represents an 85% premium on the flotation price, and gave further ammunition to those critics of the privatisation who argue the government sold off Royal Mail too cheaply. – The Guardian
Banks and investors have slipped back into their bad old ways, with appetite for junk bonds and high-risk debt at pre-crisis levels once again, according to the Bank of England. Junk bond issuance in the US has soared to a record high this year, double last year's levels and surpassing the previous 2007 peak by nearly 50%, the Bank's Financial Stability Report revealed. Cov-lite junk bond issuance is now three times as high as in 2007. – The Times
Lloyds Banking Group is planning to name Lord Blackwell, a former adviser to Margaret Thatcher and John Major, as its next chairman. The appointment is yet to be formally approved by regulators but may be announced today or early next week. Lord Blackwell, 61, is currently chairman of Lloyds' Scottish Widows subsidiary, having joined the bank in June last year. He will replace Sir Win Bischoff who, as Lloyds' chairman for the past four years, has steered the bank through the aftermath of the financial crisis. – The Times
Shares in Edinburgh-based property developer Sigma Capital surged by more than 40% yesterday as it unveiled a £700m joint venture deal with an investment bank to build thousands of homes for rent. The scale of the deal with Gatehouse, a Kuwaiti-backed investment bank, prompted comments of support from both Prime Minister David Cameron and Business Secretary Vince Cable. The agreement will initially see around 2,000 rental properties built in Liverpool and Greater Manchester. Once full bank finance is in place, construction is expected to take place over 24 months.- The Guardian | | |
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