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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 edge lower on mixed corporate updates - RSA, G4S lead losses after updates
- Shire, M&S provide some support to markets
- Economic data in focus
techMARK 2,650.20 -0.04%
FTSE 100 6,755.11 -0.13%
FTSE 250 15,451.03 -0.11%
UK markets opened slightly lower on Tuesday as investors digested a raft of mixed corporate updates from some heavyweight stocks in London.
RSA Insurance was a heavy faller early on after saying it was hit by losses related to "severe weather" so far this year, while G4S fell after unveiling plans to restructure; Associated British Foods, Legal & General and Imperial Tobacco also failed to impress with their results.
On the upside, Shire rose after positive drug tests and Marks & Spencer's first-half figures came in better than expected; mining stocks were also registering decent gains early on.
The focus now turns to economic data due for release later on, including the UK services purchasing managers' index for October which is expected to fall slightly from 60.3 to 60. Eurozone producer price inflation figures are also on the agenda today, along with the ISM non-manufacturing index in the States this afternoon.
Increased speculation over an imminent European Central Bank (ECB) rate cut boosted markets on Monday. However, Chief Market Analyst Michael Hewson from CMC Markets said that such a move is unlikely given that the ECB has "always been a conservative central bank".
He said: "Any reaction this week to last week's data would be highly unusual, and could well be interpreted as a knee-jerk reaction to one or two pieces of data. It seems more likely that we may get some action in December, which may be flagged up at the press conference on Thursday."
Meanwhile, chatter surrounding an impending scaling back of stimulus by the Federal Reserve continues to be closely watched ahead of Friday's all-important jobs report. Analysts are estimating a meagre 125,000 increase in non-farm payrolls in October, well below the 148,000 gain the month before.
RSA drops as weather dents results
RSA fell sharply this morning after saying that recent storms and heavy winds now mean that weather-related losses will be "materially above planning assumptions" in 2013. The company has now said that its full-year return on equity will be below 10%.
Security group G4S, which is being investigated by the Serious Fraud Office over a government contract, declined after saying that has identified 35 businesses to grow or restructure.
AB Foods was also lower despite delivering a better-than-expected set of annual results following a strong performance from Primark and an improvement in Grocery. Insurance firm Legal & General also underwhelmed with its third-quarter results even though worldwide sales came in ahead of forecasts. Imperial Tobacco Group saw its annual tobacco revenue fall 1% to £20.8bn as volumes declined 7%.
On a brighter note, drug developer Shire reported positive results for its Binge Eating Disorder (BED) treatment, Vyvanse, causing shares to rise this morning. M&S meanwhile saw underlying pre-tax profit fall 8.9% to £261.6m in the first half of the year, though this was not as bad as many analysts were expecting.
Mining stocks were also doing their best to support markets this morning with Anglo American, Rio Tinto, BHP Billiton, Fresnillo, Glencore Xstrata and Antofagasta all registering decent gains. |
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| FTSE 100 - Risers
Anglo American (AAL) 1,537.00p +2.84%
Marks & Spencer Group (MKS) 497.40p +2.11%
Glencore Xstrata (GLEN) 342.15p +2.01%
BHP Billiton (BLT) 1,986.50p +1.90%
Imperial Tobacco Group (IMT) 2,349.00p +1.69%
Fresnillo (FRES) 1,017.00p +1.60%
Shire Plc (SHP) 2,858.00p +1.35%
Rio Tinto (RIO) 3,332.50p +1.31%
Vedanta Resources (VED) 1,099.00p +1.10%
Antofagasta (ANTO) 872.00p +0.98%
FTSE 100 - Fallers
RSA Insurance Group (RSA) 122.40p -5.19%
G4S (GFS) 245.40p -3.39%
Royal Bank of Scotland Group (RBS) 320.60p -3.35%
Associated British Foods (ABF) 2,184.00p -3.15%
Legal & General Group (LGEN) 214.10p -1.74%
Lloyds Banking Group (LLOY) 75.94p -1.43%
Persimmon (PSN) 1,252.00p -1.18%
Aviva (AV.) 441.70p -1.16%
Old Mutual (OML) 200.40p -1.13%
Admiral Group (ADM) 1,262.00p -1.10%
FTSE 250 - Risers
Kazakhmys (KAZ) 269.90p +4.05%
Lonmin (LMI) 333.60p +2.49%
IP Group (IPO) 150.00p +2.04%
Ferrexpo (FXPO) 193.00p +1.95%
Polymetal International (POLY) 582.00p +1.84%
Kenmare Resources (KMR) 22.26p +1.83%
PayPoint (PAY) 1,020.00p +1.69%
RPC Group (RPC) 516.00p +1.67%
Synthomer (SYNT) 237.00p +1.54%
BlackRock World Mining Trust (BRWM) 491.60p +1.47%
FTSE 250 - Fallers
CSR (CSR) 516.00p -5.49%
Rank Group (RNK) 143.30p -2.72%
Telecity Group (TCY) 725.00p -2.03%
Diploma (DPLM) 672.50p -1.97%
Centamin (DI) (CEY) 50.40p -1.95%
Barratt Developments (BDEV) 329.40p -1.88%
Drax Group (DRX) 637.50p -1.70%
Taylor Wimpey (TW.) 109.10p -1.53%
Berkeley Group Holdings (The) (BKG) 2,297.00p -1.46% |
| | UK Event Calendar | | Tuesday November 05
INTERIMS
Blinkx, First Derivatives, Marks & Spencer Group
INTERIM DIVIDEND PAYMENT DATE
Nationwide Accident Repair Services
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (US) (13:30)
ISM Non-Manufacturing (US) (15:00)
ISM Services (US) (15:00)
Producer Price Index (EU) (10:00)
HSBC services PMI (China)
RBA olicy announcement
European Comission Autumn forecasts
Q3
CSR
FINALS
Associated British Foods, Next Fifteen Communications
IMSS
4Imprint Group, Aer Lingus Group, HSBC Holdings, Intu Properties, Legal & General Group, PPHE Hotel Group Ltd
AGMS
Animalcare Group, Kofax, Strategic Equity Capital
UK ECONOMIC ANNOUNCEMENTS
BRC Sales Monitor (00:01)
Official Reserves (09:30)
PMI Composite (09:30)
PMI Services (09:30)
FINAL DIVIDEND PAYMENT DATE
IPPlus
Q1
Kofax
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks fall ahead of EU economic forecast - EU delivers economic forecasts
- UK data on house prices, retail sales and services
- US ISM non-manufacturing composite
FTSE 100: -0.17%
DAX: -0.18%
CAC 40: -0.26%
FTSE MIB: -0.20%
IBEX 35: -0.38%
Stoxx 600: -0.09%
European equities moved into the red before economic forecasts from the European Union (EU) and the release of UK and US data.
EU Economic and Monetary Affairs Commissioner Olli Rehn will speak at 10:30 in Brussels on the release of autumn economic outlook.
The European Central Bank (ECB) has forecast a "gradual" recovery for the region even though the euro-area left a recession in the second quarter of this year and survey data is improving.
The central bank will meet on Thursday and some economists are expecting to see a cut to interest rates after inflation fell to 0.7%, well below the 2% target.
"Sentiment in Europe continues to be driven by increased speculation that the ECB will soon be forced into taking steps to re inflate the Eurozone region following the shock fall in inflation last week," said Craig Erlam, Market Analyst at Alpari UK.
This morning a barrage of UK economic data will be released including house prices, retail sales and services activity.
Halifax will say house prices rose by 0.9% in October compared to an increase of 0.3% the month before, according to consensus.
The British Retail Consortium's sales figures are expected to show a like-for-like jump of 1.1% last month ahead of a 0.7% rise in September.
UK services purchasing managers' index (PMI) is tipped to fall to 60 in October from 60.4 in September. A reading above 50 signals expansion.
Later on in the US, the Institute for Supply Management's non-manufacturing composite index for October is anticipated to ease back to 54 from the prior month's 54.4.
M&S, Beiersdorf
Marks & Spencer Group gained as the company reported first half earnings that beat expectations.
Beiersdorf advanced as the maker of Nivea hand cream raised its full-year sales forecast.
Novartis rallied following news the drugmaker has identified its animal-health business as a top candidate for a sale.
RSA Insurance declined after saying that recent storms and heavy winds now mean that weather-related losses will be "materially above planning assumptions" in 2013.
Euro/dollar falls
The euro slipped 0.20% to $1.3487.
Brent crude futures declined $0.038 to $106.190 per barrel on the ICE. |
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| | US Market Report | | US close: Stocks edge higher as taper talk ramps up - Markets gearing up for Friday's employment report
- Fisher, Bullard spread concerns over taper
- Factory orders rise 1.7 per cent, miss forecasts
Dow Jones: 0.15%
Nasdaq: 0.37%
S&P 500: 0.36%
US markets edged higher on Monday as investors shrugged off concerns about a scaling back of stimulus and a slight miss in factory orders data.
As speculation continues to increase over the impending start to the tapering of asset purchases by the Fed, investors are beginning to prepare for Friday's all-important jobs report with analysts estimating a meagre 125,000 increase in non-farm payrolls in October, well below the 148,000 gain the month before.
"The impact of the shutdown will almost certainly affect Friday's non-farm payroll figure in a negative way, which in turn would make a December taper even more unlikely," said Market Analyst Craig Erlam from Alpari.
However, President of the Dallas Fed Richard Fisher has said that the central bank could begin to taper sooner than expected.
Meanwhile, St Louis Fed President and well-known dove James Bullard said that the Fed shouldn't wait for a permanent budget deal before making its move. "I think we can't really wait for the political situation in Washington to be just right because, evidently, they could be bickering forever," he said in an interview with CNBC.
However, he did say that the central bank should not hurry to scale back stimulus because of low inflation.
Stocks briefly dipped into the red in morning trade after some lacklustre factory orders data from the Commerce Department. US factory orders gained 1.7% in September, rebounding strongly after two straight months of declines. However, the reading came in just shy of the consensus forecast for a 1.8% increase.
Data elsewhere also showed improvements on Monday with China's services purchasing managers' index (PMI) rising to a one-year high of 56.3 in October and the UK construction PMI jumping to a six-year high of 59.4.
Blackberry sinks as takeover plan falls through
Shares in Blackberry plummeted on Monday morning after the company ditched a plan to be sold to its biggest shareholder Fairfax Financial Holdings. The smartphone maker will instead replace its Chief Executive Officer and raise $1bn in financing. Fairfax will contribute $250m to the fund-raising.
Cereal maker Kellogg was in demand after unveiling a four-year cost-cutting programme which includes a 7% reduction to its workforce by the end of 2017. This comes as the firm delivered a 2.5% rise in third-quarter earnings on flat sales.
Consumer goods group Johnson & Johnson edged lower after saying it would pay $2.2bn to settle a Justice Department investigation into its marketing techniques.
US Steel Corp was higher after Goldman Sachs raised its rating of the steel producer to 'buy' from 'sell'.
Time Warner Cable gained as the US cable company was raised to 'buy' from 'hold' at Deutsche Bank AG.
S&P 500 - Risers
J.C. Penney Co. Inc. (JCP) $8.14 +8.53%
Cliffs Natural Resources Inc. (CLF) $27.34 +6.46%
Hewlett-Packard Co. (HPQ) $25.92 +6.36%
TripAdvisor Inc. (TRIP) $88.22 +5.80%
Fastenal Co. (FAST) $51.89 +5.06%
Sears Holdings Corp. (SHLD) $60.86 +4.62%
First Solar Inc. (FSLR) $61.83 +4.55%
Avon Products Inc. (AVP) $18.27 +4.40%
NextEra Energy Inc. (NEE) $88.14 +4.00%
Mylan Inc. (MYL) $39.38 +3.60%
S&P 500 - Fallers
American International Group Inc. (AIG) $48.28 -6.52%
Newmont Mining Corp. (NEM) $25.98 -4.70%
Nvidia Corp. (NVDA) $14.82 -2.85%
D. R. Horton Inc. (DHI) $18.51 -2.32%
Gilead Sciences Inc. (GILD) $69.34 -2.30%
Tesoro Corp. (TSO) $47.82 -2.19%
Sherwin-Williams Co. (SHW) $184.67 -1.77%
EMC Corp. (EMC) $23.65 -1.75%
Vertex Pharmaceuticals Inc. (VRTX) $66.21 -1.71%
Chevron Corp. (CVX) $118.01 -1.63%
Dow Jones I.A - Risers
Boeing Co. (BA) $133.03 +1.94%
JP Morgan Chase & Co. (JPM) $52.51 +1.88%
Pfizer Inc. (PFE) $31.17 +1.58%
General Electric Co. (GE) $26.54 +1.53%
Visa Inc. (V) $199.16 +1.27%
United Technologies Corp. (UTX) $107.51 +1.19%
Microsoft Corp. (MSFT) $35.94 +1.17%
Johnson & Johnson (JNJ) $93.37 +0.82%
McDonald's Corp. (MCD) $97.24 +0.75%
Goldman Sachs Group Inc. (GS) $162.05 +0.74%
Dow Jones I.A - Fallers
Chevron Corp. (CVX) $118.01 -1.63%
Home Depot Inc. (HD) $76.99 -1.16%
Intel Corp. (INTC) $24.25 -0.29%
E.I. du Pont de Nemours and Co. (DD) $61.09 -0.18%
Verizon Communications Inc. (VZ) $50.49 -0.04%
Nasdaq 100 - Risers
Tesla Motors Inc (TSLA) $175.20 +8.03%
Fastenal Co. (FAST) $51.89 +5.06%
Sears Holdings Corp. (SHLD) $60.86 +4.62%
Mylan Inc. (MYL) $39.38 +3.60%
Western Digital Corp. (WDC) $72.07 +3.18%
Randgold Resources Ltd. Ads (GOLD) $73.65 +3.04%
CH Robinson Worldwide Inc (CHRW) $61.73 +2.99%
Catamaran Corp (CTRX) $48.00 +2.87%
Green Mountain Coffee Roasters Inc. (GMCR) $64.44 +2.81%
Garmin Ltd. (GRMN) $47.91 +2.79%
Nasdaq 100 - Fallers
Facebook Inc. (FB) $48.22 -3.08%
Nvidia Corp. (NVDA) $14.82 -2.85%
Baidu Inc. (BIDU) $156.02 -2.52%
Gilead Sciences Inc. (GILD) $69.34 -2.30%
Vertex Pharmaceuticals Inc. (VRTX) $66.21 -1.71%
Charter Communications Inc. (CHTR) $135.77 -1.67%
Liberty Media Corporation - Class A (LMCA) $154.03 -1.62%
Regeneron Pharmaceuticals Inc. (REGN) $281.70 -1.43%
Liberty Global plc Series A (LBTYA) $77.41 -1.34%
Equinix Inc. (EQIX) $164.01 -1.30% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: Banks, BoE, Immigration Shares in UBS and Credit Suisse, Switzerland's two largest banks, fell sharply on Monday after the Swiss Finance Minister said that the country's leverage rules, already among the toughest in the world, should be tightened further. Under Switzerland's existing regulations, both banks need to push their leverage ratios – a measure of a bank's capital in relation to total assets – above four per cent by 2019. However, in an interview with Schweiz am Sonntag, the Swiss newspaper, Eveline Widmer-Schlumpf said that this level might be insufficient, the Financial Times reports.
The cost of borrowing will have to rise a year earlier than planned, a think-tank has forecast, dealing a blow to the Bank of England's (BoE) key economic policy. In its latest health check of the UK economy, the National Institute of Economic and Social Research (NIESR) said that interest rates would rise from their historic low of 0.5% in the second half of 2015, The Times reports.
Greece is not at "war" with the European Union and International Monetary Fund, Prime Minister Antonis Samaras said on the eve of the latest review by the lenders to decide whether to pay the next tranche of bailout loans. Inspectors from the EU, IMF and the European Central Bank, known collectively as the "Troika", resume a visit to Athens on Tuesday to check how far the country has come in meeting its bailout commitments, including privatisations, The Daily Telegraph explains.
Millions of people must "drastically" cut the amount of water they use or their prices will rise, a water supplier has warned. MPs have condemned a plan by Thames Water to force Londoners to install smart meters in their homes to limit the amount of water they use and prevent the city running out of water. Thames Water said getting people to use smart meters would encourage them to cut down their use and limit their bills, The Daily Telegraph says.
The president of the UK's leading business group has attacked "factually incorrect, emotive debates around immigration", saying that the opposition to migrants entering the UK is affecting the economic recovery. Speaking at the CBI's annual conference on Monday morning, Sir Michael Rake said Britain must show it is open to immigration, and demanded the UK remain in the European Union, The Daily Telegraph.
Poundland's owner Warburg Pincus, the private equity firm that bought it for £200m three years ago, is understood to be considering an IPO of the business in the first half of 2014. Poundland declined to comment on speculation that Rothschild had been lined up to lead the retailer's growth plans, which include doubling the number of stores to 1,000. Other advisers are likely to be brought in to handle a share sale as the public listings market takes off, the Daily Express writes. | | |
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