| | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London close: Stocks surge to two-and-a-half-week high after Fed taper - FTSE 100 at highest since December 2nd after Fed taper
- Fed scales back stimulus, gives guidance on rates
- Carnival jumps late on after FY results
- Pharmaceutical and life insurance stocks rise
techMARK 2,735.02 +1.40%
FTSE 100 6,584.70 +1.43%
FTSE 250 15,589.95 +1.45%
UK stocks surged to a two-and-a-half-week high on Thursday as investors reacted to the Federal Reserve's move to scale back monetary stimulus, ending months of uncertainty that has plagued financial markets worldwide.
Strong gains from Carnival after its full-year results also helped lift the FTSE 100 in afternoon trade, along with a decent performance by pharmaceutical and life insurance stocks.
Tracking a rally on Wall Street last night, London's benchmark index ended 92.62 points higher at 6,584.7 this afternoon - its best closing level since December 2nd when it finished at 6,595.33.
The Fed announced that it would scale back its monthly bond-buying programme from $85bn to $75bn and said it would make similar moderate reductions in the future subject to incoming economic data.
Policymakers predicted that the jobless rate - currently at 7% - would drop to around 6.5% by the end of 2014. However, they stressed that they would hold interest rates close to zero "well past the time that the unemployment rate declines below 6.5%, especially if projected inflation continues to run below the [FOMC's] 2% longer-run goal".
"The removal of this festering sore of uncertainty, along with a more nuanced and tweaked tone of forward guidance has helped keep equity markets well underpinned," said Chief Market Analyst Michael Hewson from CMC Markets.
US markets, however, opened lower today as the initial euphoria surrounding the Fed decision quickly faded in the face of disappointing economic data, which saw jobless claims rise to a nine-month high and existing-home sales drop sharply.
Carnival buoyed by FY results, drugmakers higher
Cruise operator Carnival surged into the top spot on the FTSE 100 risers list this afternoon after it impressed with its final results, as revenues and earnings declines were not as bad as feared thanks to a successful marketing push in the fourth quarter. The firm also made encouraging noises about "momentum" as it enters 2014.
AstraZeneca was higher after spending up to $4.1bn to buy out Bristol-Myers Squibb's stake in their diabetes joint venture, giving the Anglo-Swedish company full ownership of intellectual property and global rights for a large portfolio of products.
Fellow pharma group GlaxoSmithKline also advanced after US regulators approved Anoro Ellipta, its treatment for chronic obstructive pulmonary disease. Upside however was limited on the news that Denmark has approved the sale of a generic rival to GSK's biggest product, Advair.
Life insurers were almost universally higher after rating agency Fitch gave an encouraging bill of health on US counterparts for 2014. Aviva, Legal & General, Old Mutual, Prudential and Standard Life were all up before the close.
Precious metal miners Fresnillo and Randgold Resources were among the few fallers on the FTSE 100, with the stocks tracking heavy falls in gold and silver prices in afternoon trade.
G4S was in the red after the government referred the security group to the Serious Fraud Office following a review of outsourcing contracts due to suspected over-charging.
Sector peer Serco surged after saying it will pay back £68.5m to the Ministry of Justice for overcharging on its Electronic Monitoring contract, putting an end to months of uncertainty for the company amid an investigation by the government. |
| | Learn to trade the most liquid financial market in the world | | At our free workshop we will give you a proven strategy for you to apply straight away. Also for simply signing up you will receive a free 50 page e-book from a publish FX trader. Book your place now |
| | FTSE 100 - Risers
Carnival (CCL) 2,312.00p +5.47%
Petrofac Ltd. (PFC) 1,140.00p +4.68%
William Hill (WMH) 391.20p +4.15%
WPP (WPP) 1,346.00p +3.70%
Standard Life (SL.) 352.70p +3.64%
Hargreaves Lansdown (HL.) 1,316.00p +3.54%
Associated British Foods (ABF) 2,400.00p +3.05%
Aviva (AV.) 435.90p +2.83%
ARM Holdings (ARM) 1,056.00p +2.82%
Prudential (PRU) 1,306.00p +2.75%
FTSE 100 - Fallers
Fresnillo (FRES) 698.00p -3.99%
Randgold Resources Ltd. (RRS) 3,811.00p -2.68%
G4S (GFS) 248.90p -1.89%
Johnson Matthey (JMAT) 3,206.00p -0.19%
Amec (AMEC) 1,040.00p -0.19%
HSBC Holdings (HSBA) 647.70p -0.09%
FTSE 250 - Risers
Serco Group (SRP) 476.60p +6.19%
Millennium & Copthorne Hotels (MLC) 596.50p +5.02%
Synergy Health (SYR) 1,197.00p +5.00%
Homeserve (HSV) 271.70p +4.90%
Henderson Group (HGG) 212.00p +4.64%
National Express Group (NEX) 275.80p +4.51%
Synthomer (SYNT) 251.00p +4.37%
Beazley (BEZ) 260.00p +4.33%
Enterprise Inns (ETI) 148.60p +4.06%
Close Brothers Group (CBG) 1,379.00p +3.68%
FTSE 250 - Fallers
Centamin (DI) (CEY) 40.06p -3.98%
African Barrick Gold (ABG) 157.40p -2.24%
Kazakhmys (KAZ) 190.60p -2.21%
Britvic (BVIC) 674.00p -2.11%
Perform Group (PER) 225.40p -2.00%
Rank Group (RNK) 129.60p -1.89%
Imagination Technologies Group (IMG) 162.30p -1.76%
RPS Group (RPS) 331.10p -1.58%
Electra Private Equity (ELTA) 2,330.00p -1.10%
Fidessa Group (FDSA) 2,250.00p -1.10% |
| | 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 close: Stocks rise as Fed tapering lifts economic confidence - Fed begins reducing stimulus
- US initial jobless claims increase
- UK retail sales rise
- EU reaches banking deal
FTSE 100: 1.27%
DAX: 1.56%
CAC 40: 1.46%
FTSE MIB: 1.61%
IBEX 35: 2.10%
Stoxx 600: 1.61%
European stocks advanced as the Federal Reserve’s decision to reduce monetary stimulus ended months of uncertainty and lifted confidence in the recovery of the US economy.
The US central bank last night announced it would reduce its monthly bond-buying programme from $85bn to $75bn and make further cuts gradually, depending on economic data.
“Markets dislike uncertainty so, while the notion of more shallow liquidity might have had the consequence of a protracted sell-off, market participants can now focus on the underlying issues without the constant ‘will they, won’t they’ taper concerns,” IG noted.
Policymakers predicted that the jobless rate - currently at 7% - would drop to around 6.5% by the end of 2014. However, they stressed that interest rates would be held close to zero "well past the time that the unemployment rate declines below 6.5%, especially if projected inflation continues to run below the FOMC's 2% longer-run goal".
“The action today is intended to keep the level of accommodation the same overall and to push the economy forward,” said Chairman Ben Bernanke. “We are committed to doing what is necessary to getting inflation back to target.”
Today in the US, jobless claims climbed by 10,000 to 379,000 in the week ended December 14th, the most since the end of March, Labor Department data showed. Economists had called for a decrease to 336,000.
The Philadelphia Fed manufacturing index rose from 6.5 to 7.0 in December, compared with the consensus estimate of a jump to 10.
Existing-home sales fell for the third month in a row in November, dropping by 4.3% to a seasonally-adjusted annual rate of 4.9m, according to the National Association of Realtors. Analysts had expected a figure closer to 5m.
On a more positive note, an index of leading economic indicators increased 0.8% in November after gaining a revised 0.1% the prior month. The forecast was for a 0.7% rise.
UK retail sales rise modestly
UK retail sales rose by a modest 0.3% last month in line with consensus estimates, compared to October’s 0.9% drop.
Clothing shoppers drove the increase as people sought warmer outfits in the colder weather, but it was offset by lower spending in department stores, according to the Office for National Statistics.
Meanwhile, Eurozone finance minsters this morning agreed a blueprint to close failing banks. However, they held back on a plan for the Eurozone to unit in tackling its struggling lenders.
The deal aims to prevent a repeat of the turmoil when failing banks in countries from Ireland to Cyprus brought their states to the brink of bankruptcy.
Saab, AstraZeneca
Saab gained after the Swedish maker of Gripen jets beat Boeing Co. and Dassault Aviation SA to win the contract to supply 36 jet fighters to Brazil.
AstraZeneca edged higher after spending up to $4.1bn to buy Bristol-Myers Squibb's stake in their diabetes joint venture, giving the British company full ownership of intellectual property and global rights for a large portfolio of products.
A gauge of miners declined, including Randgold Resources and Centamin, as the price of commodities fell.
Mediaset rallied after Deutsche Bank AG said that the Italian broadcaster’s plan to spin off its pay-TV business could increase the company’s profitability.
Amadeus advanced after the Spanish travel-reservations company forecast 2013 revenues and earnings that beat analysts’ estimates.
Algeta surged after Bayer AG said it will buy the drugmaker for about 17.6bn kroner, a price that topped a preliminary offer.
The euro fell 0.18% to $1.3660.
Brent crude futures rose $0.742 to $110.450 per barrel on the ICE. |
| | 40% Returns from unusual but proven industry | | Download your FREE Investment Guide here. |
| | US Market Report | | US open: Markets pull back from record as data disappoints - Markets still digesting Fed taper
- Jobless claims rise to nine-month high
- Existing-home sales drop
Dow Jones: -0.08%
Nasdaq: -0.30%
S&P 500: -0.23%
US stocks slipped on Thursday morning, retreating after a Federal Reserve-inspired rally the day before sent the Dow Jones Industrial Average and S&P 500 to their highest-ever levels.
The pull-back comes after a wave of disappointing economic data, which revealed that jobless claims rose to a nine-month high, a fall in existing-home sales and a drop in the Philly Fed manufacturing index.
"Interestingly, though US markets closed at record highs the S&P500 was unable to make new intraday highs, stopping short of last month’s high, and that fact could precipitate a pullback, particularly if we drop back below 1,800 again," said Michael Hewson, Chief Market Analyst at CMC Markets. The S&P 500 was trading 0.23% lower at around 1,806 in mid-morning trade.
Markets surged on Wednesday after the Fed announced that it would scale back its monthly bond-buying programme from $85bn to $75bn and said it would make similar moderate reductions in the future subject to incoming economic data.
Policymakers predicted that the jobless rate - currently at 7% - would drop to around 6.5% by the end of 2014. However, they stressed that interest rates would be held close to zero "well past the time that the unemployment rate declines below 6.5%, especially if projected inflation continues to run below the [FOMC's] 2% longer-run goal".
Economic data misses forecasts
Jobless claims unexpectedly climbed by 10,000 to 379,000 in the week ended December 14th, the most since the end of March, Labor Department data showed. Economists had called for a decrease to 336,000.
The Philadelphia Fed manufacturing index rose from 6.5 to 7.0 in December, compared with the consensus estimate of a jump to 10.
Existing-home sales fell for the third month in a row in November, dropping by 4.3% to a seasonally-adjusted annual rate of 4.9m, according to the National Association of Realtors. Analysts had expected a figure closer to 5m.
Not all economic data disappointed though, as an index of leading economic indicators increased 0.8% in November after gaining a revised 0.1% the prior month. The forecast was for a 0.7% rise.
Carnival impresses with results
Ocean cruise operator Carnival impressed with its final results, as revenues and earnings were not as bad as feared thanks to a successful marketing push in the fourth quarter and encouraging noises about "momentum" as it enters 2014.
Facebook declined after saying the company and some shareholders, including Chief Executive Officer Mark Zuckerberg, will sell 70m shares.
Oracle Corp. gained after forecasting third-quarter sales and profit in line with analysts’ estimates. |
| | 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 | | GlaxoSmithKline, Serco, Britvic Jefferies has maintained its 'hold' rating for GlaxoSmithKline after Denmark approved the sale of a generic copy of its top-selling inhaled lung drug, Advair.
"Sandoz/Vectura's EU branded generic of Advair/Seretide was anticipated, though the timing was uncertain. Confirmation of its approval in Denmark underpins our expectation that an increasingly competitive EU respiratory market may see further reference pricing, which could negatively impact Advair, Symbicort AstraZeneca and Breo."
Panmure Gordon has kept a 'buy' rating for troubled outsourcing outfit Serco despite a disappointing trading update on Thursday, saying consensus estimates for this year are unlikely to change.
Panmure Analyst Mike Allen said: "The pre-close statement from Serco shows little change from the profit warning in November. The outturn for 2013E is not expected to materially alter current consensus." He kept his positive stance on the stock, saying that the "current valuation may have captured most of the downside potential for 2014E and beyond".
Britvic shares are "up with events" after a strong run, according to Investec which reiterated a 'hold' recommendation on the soft drinks group.
After a 65% jump so far this year, Analyst Nicola Mallard said that the "real test of success" is if the company can consistently deliver profitable revenue growth - "something it has yet to prove". | | |
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