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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: Upside limited as markets await risk events - Investors cautious ahead of busy end to the week
- Barrage of economic data on tap for Wednesday
- Experian drops after acquisition, H1 report
techMARK 2,655.82 +0.32%
FTSE 100 6,749.23 +0.04%
FTSE 250 15,427.39 +0.39%
UK markets edged higher on Wednesday morning though the upside was limited as investors adopted a cautious approach ahead of a number of key 'risk events' scheduled for later in the week.
The focus is now turning to the European Central Bank policy meeting on Thursday with many expecting a reduction in its benchmark interest rate.
Market Analyst Craig Erlam from Alpari said that "it's not unusual for investors to play it safe … when expectations of a rate cut from the central bank are high".
Also on Thursday will be the initial estimate of third-quarter US economic growth, while investors will keep their eyes peeled for the all-important jobs report in the States on Friday.
As for Wednesday, there will still be plenty of economic data for investors to digest, including industrial and manufacturing production figures in the UK, Eurozone retail sales and services data, German factory orders and US mortgage applications.
Experian drops sharply after acquisition, H1 report
Credit-checking and information services firm Experian was a heavy faller this morning as investors gave a cool reaction to the acquisition of Passport Health Communications for $850m and its first-half results. The company experienced "subdued trading conditions" in some emerging markets but still managed to produce double-digit growth in earnings, it said.
easyJet gained after reporting a 5.4% rise in October passenger numbers, along with a 0.7 percentage point increase in its load factor. Rival airline IAG also gained as the sector rebounded following a profit warning from Ryanair earlier in the week.
Whitbread and BP were trading lower after going ex-dividend today, meaning that from today new investors won't be able to get hold of the companies' latest payouts.
Engineering and aerospace group Meggitt was in demand after Cantor Fitzgerald raised its rating on the stock to buy and lifted its target from 520p to 590p.
Insurance company Lancashire was lower after seeing profits fall by 67% in the third quarter as a quiet wind season in the US was outweighed by losses from hail storms and floods in Europe.
Sector peer RSA Insurance was still in the red following its gloomy third-quarter trading update yesterday which sent the stock tumbling. Even an upgrade by Nomura to 'neutral' didn't give the stock a lift today.
Meanwhile, earnings guidance for the full year was lifted by a bullish Moneysupermarket.com Group after a “very strong” start to the fourth quarter boosted by energy-switching customers irked by utility price hikes. The stock jumped by 14% in morning trade. |
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| | FTSE 100 - Risers
Associated British Foods (ABF) 2,291.00p +3.76%
easyJet (EZJ) 1,232.00p +2.41%
International Consolidated Airlines Group SA (CDI) (IAG) 353.10p +2.32%
Meggitt (MGGT) 503.00p +1.93%
ITV (ITV) 194.40p +1.78%
Schroders (SDR) 2,620.00p +1.75%
CRH (CRH) 1,565.00p +1.56%
Barclays (BARC) 252.80p +1.53%
London Stock Exchange Group (LSE) 1,630.00p +1.18%
TUI Travel (TT.) 379.50p +1.17%
FTSE 100 - Fallers
Experian (EXPN) 1,182.00p -6.41%
Mondi (MNDI) 1,089.00p -2.42%
Unilever (ULVR) 2,488.00p -1.85%
Travis Perkins (TPK) 1,794.00p -1.54%
National Grid (NG.) 778.00p -1.27%
Amec (AMEC) 1,192.00p -1.24%
Centrica (CNA) 353.90p -1.15%
Antofagasta (ANTO) 879.00p -1.12%
Weir Group (WEIR) 2,165.00p -1.05%
Marks & Spencer Group (MKS) 504.00p -0.98%
FTSE 250 - Risers
Moneysupermarket.com Group (MONY) 176.30p +13.74%
Michael Page International (MPI) 484.40p +2.39%
3i Group (III) 379.00p +2.10%
Millennium & Copthorne Hotels (MLC) 593.00p +2.07%
WH Smith (SMWH) 946.00p +1.94%
DCC (DCC) 2,853.00p +1.93%
Rank Group (RNK) 150.00p +1.90%
Man Group (EMG) 87.95p +1.79%
Bwin party Digital Entertainment (BPTY) 120.00p +1.69%
Ferrexpo (FXPO) 194.30p +1.67%
FTSE 250 - Fallers
Dialight (DIA) 1,048.00p -1.96%
Cranswick (CWK) 1,091.00p -1.62%
Rathbone Brothers (RAT) 1,574.00p -1.62%
CSR (CSR) 510.00p -1.54%
Evraz (EVR) 119.80p -1.48%
KCOM Group (KCOM) 100.60p -1.47%
Taylor Wimpey (TW.) 105.00p -1.41%
Lancashire Holdings Limited (LRE) 807.50p -1.40%
Centamin (DI) (CEY) 50.20p -1.18%
Berkeley Group Holdings (The) (BKG) 2,241.00p -1.15% |
| | UK Event Calendar | | INTERIMS
DCC, Experian, FirstGroup, Heath (Samuel) & Sons
INTERIM DIVIDEND PAYMENT DATE
Carillion, Dillistone Group, StatPro Group, Telefonica SA
INTERIM EX-DIVIDEND DATE
Amati VCT , Brightside Group, Bunzl, C&C Group, Downing Planned Exit VCT 2 'C' Shares, Downing Planned Exit VCT 2 'D' Shares , Downing Planned Exit VCT 2 'F' Shares, Downing Planned Exit VCT 2 'G' Shares, Downing Planned Exit VCT 3 'C' Shares, Downing Planned Exit VCT 3 'D' Shares , Downing Planned Exit VCT 3 F Shares, Elderstreet VCT, Hunting, Laird, Maven Income & Growth VCT, Mission Marketing Group, Pace, Proven Planned Exit VCT, SThree, Stobart Group Ltd., Whitbread
QUARTERLY EX-DIVIDEND DATE
Barclays, BP, IBM Corp., Real Estate Credit Investments PCC Ltd, Utilico Investments Ltd (DI)
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
Factory Orders (GER) (11:00)
MBA Mortgage Applications (US) (12:00)
PMI Composite (EU) (09:00)
PMI Composite (GER) (08:55)
PMI Construction (GER) (08:55)
PMI Services (EU) (09:00)
PMI Services (GER) (08:55)
Productivity (US) (13:30)
Retail Sales (EU) (10:00)
Speech Cleveland Fed President
Q3
Lancashire Holdings Limited, Millennium & Copthorne Hotels, Smurfit Kappa Group
FINALS
Egdon Resources, Goldplat
IMSS
Mondi, Old Mutual, Persimmon
EGMS
Resource Holding Management Limited (DI)
AGMS
Avingtrans, Hargreaves Services, Macau Property Opportunities Fund Ltd., Mobile Streams, Resource Holding Management Limited (DI), Sinclair Is Pharma
UK ECONOMIC ANNOUNCEMENTS
BRC Shop Price Index (00:01)
Industrial Production (09:30)
Manufacturing Production (09:30)
New Car Registrations (09:30)
FINAL EX-DIVIDEND DATE
Abcam, Allocate Software, Ashmore Group, Centaur Media, Dechra Pharmaceuticals, Hargreaves Services, James Halstead, JPMorgan Overseas Inv Trust, Jupiter Primadona Growth Trust, Matchtech Group, Regenersis |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise before economic data, ECB meeting - ECB meeting in focus
- Eurozone data released
- UK house prices rise
FTSE 100: 0.20%
DAX: 0.38%
CAC 40: 0.71%
FTSE MIB: 0.93%
IBEX 35: 0.70%
Stoxx 600: 0.50%
European stocks rose ahead of the release of economic data and the European Central Bank’s policy meeting.
The Eurozone composite purchasing managers’ index for October will be released today and is expected to come in at 51.5, in line with the previous month.
Another report is forecast to show retail sales in the bloc rose 0.6% in September, compared to a 0.3% fall in August.
German factory orders will increase 5.6% in September from a jump of 3.1% a month earlier, according to consensus.
The data comes a day before the ECB’s policy meeting when investors will be watching to see whether the central bank will cut its benchmark interest rate.
Bank of America Corp., UBS and Royal Bank of Scotland have forecast the ECB will cut the rate.
However, Alpari Market Analyst Craig Erlam does not think it is likely: “In the past, the board has been very careful when it comes to cutting rates and have not reacted to an individual release,” he said.
“This could easily be a one-off figure and I'm sure that's what they'll say on Thursday. I also think they will wait until after they have completed the asset quality review to make a decision on the right course of action, which may suggest they favour some form of long-term refinancing operation over an interest rate cut.”
UK house prices rise less than expected
UK house prices rose 6.9% year-on-year in the three months to October compared to the prior quarter when it climbed 6.2%, Halifax revealed.
Economists had pencilled in an increase of 7%.
A separate report on UK industrial production will later today show an increase of 1.8% in September from a decline of 1.5% a month earlier, economists predict.
Gross domestic product estimates for October from National Institute of Economic and Social Research will also be unveiled and is expected to come in at 0.5%, down from 0.8% the prior month.
Adecco, Toyota
Adecco’s shares jumped after the provider of temporary workers reported third-quarter profit that exceeded analysts’ expectations.
Toyota advanced after raising its full-year outlook as a weak yen and cost-cutting measures helped boost earnings.
Alstom gained after the French power and engineering firm posted first-half operating profit that beat estimates.
ING rallied as it reported better-than-forecast quarterly results and said it would complete its restructuring by the end of 2016.
Euro/dollar climbs
The euro edged up 0.20% to $1.3501.
Brent crude futures were up $0.632 to $106.000 per barrel on the ICE. |
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| | US Market Report | | US close: Stocks pare losses but finish mixed - Markets await ECB, US GDP and jobs report
- Goldman says start to taper could now come sooner
- ISM non-manufacturing index beats forecasts
Dow Jones: -0.14%
Nasdaq: 0.09%
S&P 500: -0.28%
US benchmarks ended mixed on Tuesday but finished well above their intraday lows after a better-than-expected survey on the services sector.
Nevertheless, investors adopted a cautious approach ahead of a number of key 'risk events' scheduled for later in the week, including the European Central Bank policy meeting, the initial estimate of third-quarter US economic growth and the all-important jobs report.
Speculation about the Federal Reserve continued to be in focus on Tuesday after Goldman Sachs’s Chief Economist Jan Hatzius predicted the central bank will reduce its requirements for a potential interest rate hike and may even bring its tapering of quantitative easing forward.
Based on comments from two key Fed staffers, Hatzius said the bank’s Federal Open Markets Committee will make adjustments that might “increase the probability of an earlier than March 2014 tapering of QE”.
Under its current requirements, the FOMC will not move to raise rates until either unemployment falls to 6.5% or inflation rises to 2.5%. Goldman Sachs’ analysis of research published by two key Fed economists infers that the FOMC will lower the unemployment threshold down to 6%.
ISM services new orders gauge slipped slightly, production jumps
The US ISM non-manufacturing index for the month of October rose to 55.4 points from 54.4 the month before. The consensus estimate had been for a reading of 54.
While the production gauge jumped by 4.6 points to 59.6 the new orders sub-index – which is much more closely watched as a leading indicator - slipped to 56.8 points from 59.6.
Commenting on the figures, analysts Cooper Howes at Barclays Research said: “Along with the above-consensus reading in the manufacturing ISM last week, this report suggests that the US economy held up relatively well throughout the government shutdown in October”.
AOL shares gain after Q3 results
Media company AOL gained after third-quarter revenue rose a better-than-expected 6% to $561.3m. Profits however dropped by 90% due to restructuring costs and write-downs.
Heading in the other direction was Tenet Healthcare after the health-care services provider reported third-quarter earnings per share of 32 cents, instead of the 45 cents which had been pencilled in by the Street’s number crunchers.
LeapFrog Enterprises was a heavy faller ahead of the opening bell after the tablet company cut its profit outlook for the year.
Technology group GT Advanced Technologies soared after announcing an equipment deal with gadget giant Apple.
Housebuilders were under pressure after JPMorgan Chase said that order growth at DR Horton could come in under analysts' forecasts.
S&P 500 - Risers
Vulcan Materials Co. (VMC) $57.78 +7.66%
Regeneron Pharmaceuticals Inc. (REGN) $302.32 +7.32%
Alcoa Inc. (AA) $9.92 +7.01%
Newmont Mining Corp. (NEM) $27.33 +5.20%
Cliffs Natural Resources Inc. (CLF) $28.70 +4.97%
International Game Technology (IGT) $19.53 +4.72%
United States Steel Corp. (X) $26.91 +4.38%
Sysco Corp. (SYY) $33.96 +4.30%
Pioneer Natural Resources Co. (PXD) $213.41 +3.96%
Abercrombie & Fitch Co. (ANF) $38.21 +3.55%
S&P 500 - Fallers
Expeditors International Of Washington Inc. (EXPD) $43.41 -6.22%
Fastenal Co. (FAST) $49.15 -5.28%
Avon Products Inc. (AVP) $17.74 -2.90%
Alexion Pharmaceuticals Inc. (ALXN) $119.54 -2.76%
Teradata Corp. (TDC) $43.01 -2.25%
Intuitive Surgical Inc. (ISRG) $374.88 -1.92%
Amgen Inc. (AMGN) $115.14 -1.82%
Seagate Technology Plc (STX) $48.47 -1.60%
Edwards Lifesciences Corp. (EW) $63.25 -1.59%
Entergy Corp. (ETR) $64.14 -1.54%
Dow Jones I.A - Risers
Exxon Mobil Corp. (XOM) $92.10 +2.54%
Cisco Systems Inc. (CSCO) $23.07 +2.15%
Microsoft Corp. (MSFT) $36.64 +1.95%
Verizon Communications Inc. (VZ) $51.08 +1.17%
Merck & Co. Inc. (MRK) $45.72 +1.08%
Goldman Sachs Group Inc. (GS) $163.16 +0.68%
International Business Machines Corp. (IBM) $180.27 +0.58%
AT&T Inc. (T) $36.45 +0.58%
United Technologies Corp. (UTX) $107.98 +0.44%
Nike Inc. (NKE) $76.37 +0.41%
Dow Jones I.A - Fallers
Visa Inc. (V) $196.42 -1.38%
E.I. du Pont de Nemours and Co. (DD) $60.31 -1.28%
Intel Corp. (INTC) $24.03 -0.93%
JP Morgan Chase & Co. (JPM) $52.04 -0.90%
General Electric Co. (GE) $26.43 -0.41%
Johnson & Johnson (JNJ) $93.03 -0.36%
Walt Disney Co. (DIS) $68.81 -0.29%
American Express Co. (AXP) $81.93 -0.28%
Coca-Cola Co. (KO) $39.51 -0.25%
Boeing Co. (BA) $132.79 -0.18%
Nasdaq 100 - Risers
Regeneron Pharmaceuticals Inc. (REGN) $302.32 +7.32%
Facebook Inc. (FB) $50.10 +3.91%
Sba Communications Corp. (SBAC) $90.96 +3.68%
Cognizant Technology Solutions Corp. (CTSH) $89.59 +3.15%
Catamaran Corp (CTRX) $49.51 +3.15%
Fossil Group Inc (FOSL) $134.02 +2.93%
Liberty Interactive Corp (LINTA) $27.75 +2.25%
Cisco Systems Inc. (CSCO) $23.07 +2.15%
Starbucks Corp. (SBUX) $81.99 +2.02%
Microsoft Corp. (MSFT) $36.64 +1.95%
Nasdaq 100 - Fallers
Expeditors International Of Washington Inc. (EXPD) $43.41 -6.22%
Fastenal Co. (FAST) $49.15 -5.28%
Charter Communications Inc. (CHTR) $131.06 -3.47%
Green Mountain Coffee Roasters Inc. (GMCR) $62.49 -3.03%
Alexion Pharmaceuticals Inc. (ALXN) $119.54 -2.76%
Henry Schein Inc. (HSIC) $110.58 -2.22%
Nuance Communications Inc. (NUAN) $15.66 -2.00%
Sirius XM Radio Inc (SIRI) $3.71 -1.98%
Intuitive Surgical Inc. (ISRG) $374.88 -1.92%
Activision Blizzard Inc. (ATVI) $16.53 -1.84% |
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| | Wednesday newspaper round-up | | Minority investors, chemicals, power shortages Half of the UK’s top flight FTSE 100 companies are to be hit by new rules designed to prevent a repeat of the stock market scandals at companies like ENRC and Bumi, where controlling shareholders rode roughshod over ordinary investors. The City regulator, the Financial Conduct Authority, has outlined a series of drastic new measures designed to protect minority investors by giving them a greater voice. The watchdog is aiming to give shareholders in large UK-listed companies additional voting rights and greater influence in key decisions, The Daily Telegraph reported.
The owner of the Scottish petrochemical plant in Grangemouth, which narrowly avoided closure last month, has warned that developing Britain’s shale gas reserves is critical to the chemical industry’s survival. Tom Crotty, director of Ineos, said that chemical plants are being crippled by rising energy costs, which are three times higher than those faced by their rivals in the US and Middle East, The Times wrote.
The risk of power shortages this winter has been underestimated by ministers and the National Grid, with factory shutdowns and “politically unacceptable” price spikes more likely than had been feared, energy giant SSE has warned. National Grid last month said that in a cold winter the UK’s electricity “margin” - the safety buffer between peak demand and supply - would fall to just 5%, the lowest since 2007, as old power stations are switched off. But Keith MacLean, SSE’s director of policy and research, warned: “We think that could easily flip to minus 5%”, according to The Daily Telegraph.
Apple’s two new iPhones have proved popular in China, enabling the US company to shoulder past Xiaomi in the market share rankings for the three months ended in September. But Apple and everyone else are still miles behind the clear market leader — Samsung, which now has a fifth of China’s smartphone market, up from 14% in the third quarter of last year. According to new data from market researcher Canalys, Apple increased its sales 32% year on year and is now fifth by market share, the Financial Times explained.
Board members at the Bank of Japan have expressed fears that wages are not keeping pace with higher consumer prices, as the world’s third-largest economy tries to haul itself out of more than a decade of deflation. Minutes of the October 3rd-4th meeting published on Wednesday showed that members of the policy board agreed it was important that improvements in income keep supporting consumption, which was the main driver of Japan’s strong growth in the first half of 2013, the Financial Times said.
Defence giant BAE Systems is poised to slash more than 1,000 jobs at two shipyards on the River Clyde in Glasgow and another in Portsmouth. According to reports, BAE will announce the cuts as early as tomorrow. The future of the yards has been in question for months amid fears there will be no new work once two aircraft carriers are completed, The Daily Mail posted. | | |
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