| | | | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: FTSE sinks ahead of US jobs report - FTSE moves 30 points lower ahead of US data
- France rating downgraded by S&P
- Ofwat blocks Thames Water price hike plans
techMARK 2,627.93 -0.57%
FTSE 100 6,665.29 -0.48%
FTSE 250 15,288.05 -0.66%
As predicted, the FTSE 100 opened notably lower than yesterday's close of 6,697.22, tracking some sharp falls on US markets overnight as economic data prompted concerns about a scaling back of monetary stimulus.
Investors were choosing to take profits after the recent strong run in markets as caution set in ahead of today's all-important jobs report, which will be a major factor in the Federal Reserve's decision over tapering quantitative easing.
Elsewhere, Standard & Poor's has cut France's credit rating from AA+ to AA, around two years after its was stripped of its AAA status.
Back in the UK, water regulator Ofwat has blocked a proposed 8% price hike by Thames Water, saying it was unjustified.
Merlin Entertainments has valued the company at £3.2bn after pricing the shares at 315p each ahead of its floatation, which will see the sale of 30% of the theme park and attraction owner.
Meanwhile, Chief Exectuvie of carmaker Nissan, Carlos Ghosn, has warned that if the UK were to exit the European Union, the company would re-evaluation its investment here.
All eyes on the US
The US non-farm payrolls for October is expected to rise by 125,000, compared to an increase of 148,000 in September.
The unemployment rate is expected to rise to 7.3% in October from 7.2% after a partial government shutdown hurt the jobs market and economic growth.
The central bank has vowed to keep interest rates near zero until after the jobless rate drops below 6.5%, as long as inflation doesn't exceed 2.5%.
Investors are closely watching economic data to weigh whether the Fed might announce a tapering of its monthly $85bn bond buying programme this year.
Also acting as a backdrop to today will be the release of the University of Michigan’s sentiment index for November which is expected to rise to 74.5 from 73.2 the prior month.
Rolls-Royce rockets in early trade
Rolls-Royce shares jumped after it said it expects the full year to achieve modest growth in underlying revenue and underlying profit with cash flow around breakeven, according to a trading update out this morning. However, the engine manufacturer has changed its underlying profit guidance in its Defence Aerospace business from broadly flat to modest growth and in Marine from modest growth to broadly flat.
International Consolidated Airlines Group also charged higher after it delivered a “strong” set of third quarter results which showed British Airways performance had taken off aided by the bounce back from the Olympics effect last year. The airlines group reported three month pre-tax profit had soared to €609m from €237m last time after revenues rose 6.9% to €5.4bn and costs fell 1.5%. Third quarter passenger unit revenue was up 6.7%.
Balfour Beatty, the FTSE 250 infrastructure group, has announced that its 50%-owned joint venture, Gammon Construction, has won two significant rail contracts in Singapore. The Land Transport Authority has awarded an £87m contract for the design and construction of the Mayflower Station on the underground Thomson Line, while SMRT Trains has awarded a £61m contract for track system replacement on the North-South Line. |
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| | FTSE 100 - Fallers
Aberdeen Asset Management (ADN) 428.20p -3.21%
Sports Direct International (SPD) 669.00p -2.69%
Schroders (SDR) 2,426.00p -2.61%
William Hill (WMH) 385.00p -2.38%
Randgold Resources Ltd. (RRS) 4,792.00p -1.90%
Marks & Spencer Group (MKS) 500.50p -1.57%
ARM Holdings (ARM) 949.50p -1.50%
BAE Systems (BA.) 453.60p -1.43%
CRH (CRH) 1,524.00p -1.36%
WPP (WPP) 1,350.00p -1.32%
FTSE 250 - Risers
Entertainment One Limited (ETO) 246.00p +2.07%
Partnership Assurance Group (PA.) 409.10p +2.02%
BH Macro Ltd. EUR Shares (BHME) € 20.00 +1.47%
esure Group (ESUR) 226.20p +1.44%
Bank of Georgia Holdings (BGEO) 2,065.00p +1.28%
Bovis Homes Group (BVS) 771.50p +1.25%
AL Noor Hospitals Group (ANH) 845.00p +1.20%
Moneysupermarket.com Group (MONY) 177.00p +0.91%
Pennon Group (PNN) 650.00p +0.78%
Worldwide Healthcare Trust (WWH) 1,195.00p +0.76%
FTSE 250 - Fallers
Tullett Prebon (TLPR) 297.20p -6.54%
Inmarsat (ISAT) 673.50p -3.09%
Pace (PIC) 295.50p -2.51%
Dialight (DIA) 992.50p -2.50%
Ocado Group (OCDO) 417.40p -2.39%
Brown (N.) Group (BWNG) 515.00p -2.28%
KCOM Group (KCOM) 100.20p -1.86%
Dixons Retail (DXNS) 46.13p -1.81%
Rathbone Brothers (RAT) 1,560.00p -1.70%
Thomas Cook Group (TCG) 140.00p -1.69%
FTSE TechMARK - Risers
NCC Group (NCC) 168.25p +1.97%
Gresham Computing (GHT) 134.00p +0.37%
Anite (AIE) 90.25p +0.28%
SDL (SDL) 258.00p +0.10%
FTSE TechMARK - Fallers
Kofax (KFX) 369.00p -1.60%
XP Power Ltd. (DI) (XPP) 1,556.00p -0.89%
Ricardo (RCDO) 613.50p -0.24%
IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 179.75 -0.04% |
| | UK Event Calendar | | INTERIM DIVIDEND PAYMENT DATE
Cobham, Hargreave Hale AIM VCT 2, Huntsworth, Johnson Service Group, Judges Scientific, Rightmove, Spectris, Spirax-Sarco Engineering, Unite Group
QUARTERLY PAYMENT DATE
British Land Co
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (GER) (07:00)
Current Account (GER) (07:00)
Non-Farm Payrolls (US) (13:30)
Retail Price Index (GER) (07:00)
U. of Michigan Confidence (Prelim) (US) (15:00)
Unemployment Rate (US) (13:30)
Wholesales Inventories (US) (15:00)
Speech Atlanta Fed President
Speech Fed Chairman Bernanke (20:30)
Speech San Francisco Fed President
Q3
Afarak Group, International Consolidated Airlines Group SA, OJSC Novolipetsk Steel GDS
ANNUAL REPORT
Frontier IP Group
IMSS
Rolls-Royce Holdings, Tullow Oil
AGMS
Ludgate Environmental Fund Ltd., Wolf Minerals Limited
TRADING ANNOUNCEMENTS
Rentokil Initial
UK ECONOMIC ANNOUNCEMENTS
Balance of Trade (09:30)
FINAL DIVIDEND PAYMENT DATE
Daejan Holdings |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: France S&P downgrade drags stocks lower - S&P downgrades France
- China exports rise
FTSE 100: -0.45%
DAX: -0.68%
CAC 40: -0.80%
FTSE MIB: -0.39%
IBEX 35: -0.51%
Stoxx 600: -0.62%
European stocks opened in the red after Standard and Poor’s (S&P) cut France’s credit rating and before the US non-farm payrolls report and unemployment rate.
S&P downgraded France to AA from AA+ due to high unemployment hampering the country’s economic growth.
The country's Finance Minister, Pierre Moscovici, said S&P had made "critical and inexact judgements".
"During the last 18 months the government has implemented major reforms aimed at improving the French economic situation, restoring its public finances, and its competitiveness."
France’s 10-yield rose 23 basis points 2.39% following the announcement.
Telefonica, Richemont, IAG
Telefonica declined as Spain’s largest phone company reported an unexpected fall in third-quarter income.
Richemont retreated after the owner of the Cartier brand said operating profit dropped to in the six months through September, falling short of forecasts.
IAG gained after the parent of British Airways said third-quarter earnings more than doubled and raised its full-year outlook.
Other asset classes slide
The euro fell 0.04% to $1.3414.
Brent crude futures dropped $0.039 to $103.420 per barrel on the ICE |
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| | US Market Report | | US close: Markets drop sharply despite strong start for Twitter - US GDP picks up in third quarter
- Twitter dazzles in stock-market debut
- ECB cuts main policy rate
Dow Jones: -0.97%
Nasdaq: -1.91%
S&P 500: -1.33%
A strong debut for Wall Street newbie Twitter wasn't enough to prevent some sharp falls on US markets on Thursday as economic data prompted concerns about a scaling back of monetary stimulus.
The Dow Jones Industrial Average pulled back by 1% after hitting a fresh all-time high on Wednesday, suffering its worst point drop since October 8th.
Investors were choosing to take profits after the recent strong run in markets as caution set in ahead of Friday's all-important jobs report, which will be a major factor in the Federal Reserve's decision over tapering quantitative easing.
Benchmarks in New York opened strongly after the the European Central Bank cut its main policy rate by 25 basis points to 0.25% in a move which some analysts said was priced in following the steep drop in Eurozone inflation revealed last week.
However, gains were quickly reversed after the annual rate of US gross domestic product growth picked up from 2.5% to 2.8% in the third quarter, according to the initial estimate by the Congress Department. While this smashed forecasts for 2% growth, the beat was entirely due to inventory accumulation, which contributed 80 basis points to growth.
Chief US Economist Paul Ashworth from Capital Economics said that the pick-up in growth will “increase speculation that the Fed will begin tapering its asset purchases in December”. However he said that Friday’s release of the October employment report will “probably more important for the policy outlook”.
Initial jobless claims fell to 336,000 in the week ended November 2nd from 345,000 the previous week. The figure was broadly in line with the consensus estimate of 335,000.
Analyst Cooper Howes from Barclays said that claims returned to their gradual downward trend: “Claims have been volatile over the past two months due to the effects of computer system upgrades in California and the government shutdown, but both of these appear to have faded by this point.”
US personal consumption was up 1.5% in the third quarter, compared to 1.8% previously, missing estimates for a 1.6% increase.
Twitter rockets after debut
The share price of Twitter rocketed by 73% on the social-media company's first day on the stock market even after the social media company priced its initial public offering above the expected range. The flotation was reportedly over thirty times oversubscribed.
"Considering that this is a company that has yet to make a profit, it will be interesting to see how far investor enthusiasm can drive it," said Market Analyst Alastair McCaig from IG.
Electric car maker Tesla Motors was a heavy faller after there was a fire reported with one its vehicles.
Renewable energy firm SolarCity also provided a drag, dropping 17% after guiding to a fourth-quarter loss of 55-65 cents per share, below the current consensus forecast.
J.C. Penney advanced after the retailer’s comparable-store sales rose 0.9% in October, the first monthly increase since December 2011.
American Eagle Outfitters gained after saying it expects third-quarter earnings to fall to 19 cents a share, above its August forecast for as much as 16 cents a share.
Whole Foods declined as the natural foods grocer said earnings per share excluding certain items will be as much as $1.69 in the year ending in September 2014, compared with a previous estimate of as much as $1.72 and the average analyst estimate of $1.73.
S&P 500 - Risers
Ralph Lauren Corp (RL) $180.52 +5.45%
International Game Technology (IGT) $19.61 +4.42%
Ensco Plc. (ESV) $59.55 +4.35%
Centerpoint Energy Inc. (CNP) $25.05 +3.26%
ONEOK Inc. (OKE) $57.82 +3.14%
International Flavors & Fragrances Inc. (IFF) $86.70 +2.94%
Exelon Corp. (EXC) $29.01 +2.69%
Red Hat Inc. (RHT) $44.07 +2.66%
Carnival Corp. (CCL) $36.32 +2.63%
FirstEnergy Corp. (FE) $38.11 +2.61%
S&P 500 - Fallers
Abercrombie & Fitch Co. (ANF) $33.13 -13.52%
Whole Foods Market Inc. (WFM) $57.26 -11.18%
J.C. Penney Co. Inc. (JCP) $7.70 -7.34%
Chesapeake Energy Corp. (CHK) $26.23 -6.79%
Windstream Holdings Inc (WIN) $8.16 -5.66%
Pioneer Natural Resources Co. (PXD) $198.55 -5.61%
Best Buy Co. Inc. (BBY) $41.71 -5.33%
First Solar Inc. (FSLR) $58.13 -4.94%
Mondelez International Inc. (MDLZ) $32.09 -4.04%
Regeneron Pharmaceuticals Inc. (REGN) $276.99 -3.91%
Dow Jones I.A - Risers
Chevron Corp. (CVX) $121.14 +2.27%
General Electric Co. (GE) $26.90 +1.82%
Procter & Gamble Co. (PG) $82.81 +1.69%
Coca-Cola Co. (KO) $40.05 +1.39%
Merck & Co. Inc. (MRK) $45.96 +1.32%
International Business Machines Corp. (IBM) $179.19 +1.29%
Travelers Company Inc. (TRV) $87.49 +1.19%
Verizon Communications Inc. (VZ) $50.61 +1.02%
Goldman Sachs Group Inc. (GS) $163.52 +0.97%
Wal-Mart Stores Inc. (WMT) $78.16 +0.96%
Dow Jones I.A - Fallers
Microsoft Corp. (MSFT) $37.52 -1.73%
Intel Corp. (INTC) $24.06 -0.77%
Cisco Systems Inc. (CSCO) $23.11 -0.73%
Nike Inc. (NKE) $76.76 -0.57%
Home Depot Inc. (HD) $76.42 -0.30%
Pfizer Inc. (PFE) $30.97 -0.10%
Nasdaq 100 - Risers
Randgold Resources Ltd. Ads (GOLD) $77.24 +4.01%
Activision Blizzard Inc. (ATVI) $16.83 +1.85%
NetApp Inc. (NTAP) $39.45 +1.75%
Micron Technology Inc. (MU) $17.72 +1.19%
Intuitive Surgical Inc. (ISRG) $379.58 +0.64%
Celgene Corp. (CELG) $144.99 +0.35%
Altera Corp. (ALTR) $33.13 +0.06%
Nasdaq 100 - Fallers
Whole Foods Market Inc. (WFM) $57.26 -11.18%
Tesla Motors Inc (TSLA) $139.77 -7.53%
Mondelez International Inc. (MDLZ) $32.09 -4.04%
Regeneron Pharmaceuticals Inc. (REGN) $276.99 -3.91%
Avago Technologies Ltd. (AVGO) $43.66 -3.77%
QUALCOMM Inc. (QCOM) $67.15 -3.71%
Fastenal Co. (FAST) $46.49 -3.69%
Amazon.Com Inc. (AMZN) $343.56 -3.54%
Viacom Inc. Class B (VIAB) $80.91 -3.44%
Staples Inc. (SPLS) $15.50 -3.43% |
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| | Friday Press Round-up | | Iran, France, Energy industry Iran said on Thursday it was close to reaching an interim nuclear deal with the US and other world powers, but the prospect of such an agreement was immediately criticised by Israel and faced new obstacles in the US Congress. Mohammad Javad Zarif, Iran’s new foreign minister, said the two sides in the nuclear talks in Geneva would begin drafting a joint statement on Friday for a preliminary agreement. This would buy time for a longer, final negotiation about Iran’s nuclear programme, the Financial Times says.
Rating agency Standard & Poor’s has cut France’s sovereign credit rating by one notch to “AA”, citing high unemployment and recent reforms to the tax system. “The downgrade reflects our view that the French government’s current approach to budgetary and structural reforms to taxation, as well as to product, services, and labour markets, is unlikely to substantially raise France’s medium-term growth prospects,” S&P said in a statement on Friday, the Financial Times reports.
George Osborne is receiving an unexpected windfall worth hundreds of millions of pounds thanks to a super-tax on wealthy people who buy property through a foreign company. The windfall suggests that foreign holders of British property have a greater willingness than expected to pay tax, potentially stoking the Chancellor’s appetite to squeeze the group further in his Autumn Statement, The Times writes.
The embattled energy industry was given a lift on Thursday when a 12-month investigation by regulators into alleged rigging of the wholesale gas market ended with a clean bill of health. The dual inquiry by the Financial Conduct Authority (FCA) and Ofgem concentrated on six suspicious trades at the end of the gas market trading year in 2012. It concluded there was no evidence of market manipulation, according to The Guardian.
Shares in Twitter took flight on its stock market debut yesterday, becoming the biggest technology IPO since the Facebook flotation last year. Within seconds the microblogging service’s shares soared from $26 to $44.90, valuing the seven-year-old business that is yet to make a profit at $31bn. Its stock continued to trade strongly through the first day as a publicly listed company on the New York Stock Exchange, The Times reports.
The head of Nissan has warned the car maker would reconsider its future in the UK if a push to leave the European Union succeeds, The Guardian says. Carlos Ghosn, Chief Executive of the Japanese motoring company, told the BBC his company would re-evaluate its position if the UK were to leave the EU. Speaking at the launch of Nissan's new Qashqai model, he said: "If anything has to change we [would] need to reconsider our strategy and our investments for the future." | | |
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