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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 close: Markets edge higher despite falls from Tullow, miners - Markets edge higher after positive start on Wall Street
- Tullow Oil, mining stocks limit gains in London
- Chinese exports slow; Japan GDP revised lower
techMARK 2,679.67 +0.34%
FTSE 100 6,559.48 +0.11%
FTSE 250 15,391.79 +0.49%
Markets finished with small gains on Friday after a decent start on Wall Street, though upside was limited by steep losses from Tullow Oil and a host of mining stocks.
After erasing losses made earlier in the session, the FTSE 100 finished at 6,559.48, up just 7.49 points from Friday when a much better-than-expected increase in US non-farm payrolls for November sparked a rally across global equity markets.
"In London equities are standing still, as traders try to figure out their next move in the wake of the strong US jobs report last week," said David Madden, a Market Analyst from IG. "We are currently in no-man's lands, and traders are neither fearing nor depending on the US Federal Reserve for guidance."
Nevertheless, Wall Street benchmarks opened in positive territory after the opening bell today on reports that Democrats and Republicans are making progress in budget talks to trim further automatic spending cuts. Market chatter suggests that an agreement could come before this Friday's deadline.
On this side of the Pond, the heavyweight mining sector was in the red after data from China showed that import growth had slowed drastically in November from 7.6% to 5.3%, much worse than the slowdown to 7% expected by analysts.
Export growth however accelerated from 5.6% to 12.7%, pushing the country's trade surplus to $33.8bn, its highest level in five years.
Data from Japan was also a cause for concern with estimates for third-quarter gross domestic product (GDP) growth being revised sharply lower to an annualised rate of 1.1%.
This compares with the initial estimate of 1.9% in November and came in well below the 3.6% pace of growth registered in the second quarter. The revision was mainly due to lower estimates for investment and higher inventories by companies.
Tullow Oil and miners provide a drag
Oil group Tullow was a heavy faller on Monday after saying it has plugged and abandoned its Tultule-1 wildcat well onshore Ethiopia as it failed to encounter oil.
Mining stocks were also among the worst performers with India-focused natural resources group Vedanta leading the decline ahead of its potential departure from the FTSE 100 next week. The quarterly reshuffle of the index is expected to see the stock replaced by newly-listed Royal Mail.
Other miners, including Fresnillo, Antofagasta, Randgold Resources and Rio Tinto, were also registering losses despite the widespread strength of metals prices today.
Airline group IAG was flying higher on reports that subsidiary British Airways is looking to block changes to its APS pension scheme that could lead to increased payments to its retired employees. Market chatter suggests that increased pension payouts could affect when IAG begins to pay dividends.
Insurance group Aviva was on the up after analysts at Bank of America Merrill Lynch raised their target for the stock and added the name to their top European picks list.
Sector peer Admiral was also in demand after the announcement that it has extended its underwriting agreement with Munich Re. Analyst Nick Johnson from Numis Securities said the extension should also ease fears that Admiral might need to reduce its dividend to increase regulatory capital "if the company encountered reduced reinsurer support".
Engineering and construction group Kentz was a high riser after offering to buy the oilfield solutions business of US-based Valerus for $435m as it looks to expand its offering and increase its footprint in the Americas regions.
Satellite operator Inmarsat jumped after the successful launch of its first Global Xpress (GX) satellite, part of a $1.6bn investment by the company into the next generation of global mobile broadband communications. |
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| FTSE 100 - Risers
International Consolidated Airlines Group SA (CDI) (IAG) 366.10p +2.38%
Aviva (AV.) 428.90p +2.27%
Hargreaves Lansdown (HL.) 1,228.00p +1.57%
TUI Travel (TT.) 384.00p +1.56%
Capita (CPI) 1,005.00p +1.52%
Vodafone Group (VOD) 233.45p +1.13%
Wolseley (WOS) 3,158.00p +1.06%
BG Group (BG.) 1,237.50p +1.02%
Weir Group (WEIR) 2,072.00p +0.97%
InterContinental Hotels Group (IHG) 1,900.00p +0.96%
FTSE 100 - Fallers
Tullow Oil (TLW) 869.50p -3.34%
Vedanta Resources (VED) 821.50p -2.72%
Marks & Spencer Group (MKS) 461.00p -2.06%
Fresnillo (FRES) 742.00p -1.98%
Petrofac Ltd. (PFC) 1,174.00p -1.68%
Randgold Resources Ltd. (RRS) 3,977.00p -1.54%
Aggreko (AGK) 1,600.00p -1.42%
RSA Insurance Group (RSA) 100.50p -1.28%
Standard Chartered (STAN) 1,314.00p -1.28%
Antofagasta (ANTO) 761.50p -0.98%
FTSE 250 - Risers
Kentz Corporation Ltd. (KENZ) 657.50p +12.97%
Inmarsat (ISAT) 730.50p +5.79%
Xaar (XAR) 1,111.00p +4.32%
ICAP (IAP) 431.70p +4.02%
Oxford Instruments (OXIG) 1,558.00p +3.87%
Tullett Prebon (TLPR) 335.10p +3.78%
Ashtead Group (AHT) 713.50p +3.33%
Phoenix Group Holdings (DI) (PHNX) 683.00p +3.25%
Wetherspoon (J.D.) (JDW) 702.00p +3.24%
Crest Nicholson Holdings (CRST) 360.00p +3.03%
FTSE 250 - Fallers
Centamin (DI) (CEY) 44.31p -3.59%
Petra Diamonds Ltd.(DI) (PDL) 110.00p -3.42%
BlackRock World Mining Trust (BRWM) 430.10p -2.36%
Domino's Pizza Group (DOM) 469.00p -2.29%
Hochschild Mining (HOC) 121.90p -2.25%
Ophir Energy (OPHR) 320.70p -2.14%
Kazakhmys (KAZ) 213.30p -2.07%
Telecom Plus (TEP) 1,749.00p -1.85%
Micro Focus International (MCRO) 800.00p -1.72%
Brown (N.) Group (BWNG) 511.50p -1.54% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks edge higher ahead of barrage of Chinese data - French manufacturing sentiment moves up a notch in November
- French central bank sees GDP at 0.5 per cent in quarter four
- Markets waiting on slate of Chinese data tomorrow
- Single currency edges higher
FTSE 100: 0.11%
DAX: 0.25%
CAC 40: 0.11%
FTSE MIB: 0.89%
IBEX 35: 0.92%
Stoxx 600: 0.21%
European stocks ended the Monday session slightly in the blue despite the release of figures which showed that Chinese imports grew by slightly less than was expected in November.
Chinese exports increased at a 12.5% year-on-year clip last month, sending the country´s trade surplus to $33.8bn, its largest since January 2009. Import gains of 5.3% compared with a forecast rise of 7% however. The surplus of $33.8bn was the biggest since January 2009.
Also overnight, Japan´s gross domestic product for the third quarter was revealed to have grown at a 1.1% rate, well below the 1.6% which had been estimated.
Investors will now be waiting on remarks due out from three Fed speakers and a speech from Governor Carney himself, in New York, at about 17:20.
A slew of Chinese data is scheduled for release this evening.
Acting as a backdrop, some reports indicated that an agreement on Capitol Hill to avoid automatic spending cuts coming into effect was unlikely before Friday´s deadline.
Shares in Monte dei Paschi di Siena rose on after its top investor said he would only back a capital increase if it was carried out after May of 2014.
The Chief of Swiss drugmaker Novartis said in an inteview that the company can spend $4-6bn per year on acquisitions to strengthen its core pharma, eyecare and generics businesses or its three smaller units, Reuters reported.
EADS announced 5,800 job cuts as the company moves to combine its space and defense units in a bid to offset curtailed spending by governments.
From a sector stand point the best performance on the Stoxx 600 was to be seen in the following industrial groups: Travel (0.65%), Telecommunications (0.59%) and Real estate (0.47%).
French manufacturing sector sentiment improves
Germany´s trade surplus decreased in October to stand at €17.9bn, down from €20.3bn in the month before (consensus: €18.5bn).
The French central bank´s business sentiment indicator for the country´s manufacturing industry during the month of November came in at 101, after a reading of 100 in October (consensus: 99.4).
Crude futures move lower
The euro was 0.10% higher and was changing hands at 1.3726, ahead by 0.10%.
Brent crude futures fell by 1.584 dollars to the $109.87 per barrel level on the ICE. |
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| | US Market Report | | Stocks edge higher ahead of Fed speakers - Sysco to acquire US Foods for 3.5bn dollars
- Alpha Natural Resources to sell 50 per cent stake in joint venture
- McDonalds reports lower-than-forecast November same-store sales
Dow Jones Industrials: 0.18%
Nasdaq Composite: 0.31%
S&P 500: 0.27%
The main US stock market gauges were registering small gains at the open in New York trading, adding to last Friday´s gains in the aftermath of the latest monthly employment report.
That came on a slow news day in terms of new economic data, although three Fed speakers were expected to take to the podium later this evening.
Acting as a backdrop, aides to leading Democrats and Republicans have reportedly stated that an agreement to forestall further automatic spending cuts coming into effect in the US is possible before this Friday´s deadline. As part of the accord to end the last government shutdown, a 29-member budget conference panel was charged with drawing up a blue-print for Congress on a budget plan by December 13th.
Shares in Sysco were higher by around 16%. The food distributor will buy closely held US Foods for about $3.5bn.
McDonald´s reported an 0.5% increase in global same-store sales for the month of November, just below the 0.6% expected by analysts.
Coal producer Alpha Natural Resources gained after saying it is to sell its 50% interest in its joint-venture Alpha Shale Resources to Rice Energy for $300m in a cash and stock deal.
Shares of Gilead Sciences were also on the move after the company received regulatory approval for a hepatitis C pill which it has developed.
Yields on 10-year US Treasuries were off by two basis point to 2.84%.
Front month West Texas crude futures were 0.33% lower at $97.35/barrel on the ICE.
S&P 500 - Risers
Sysco Corp. (SYY) $40.60 +18.33%
Micron Technology Inc. (MU) $23.34 +4.62%
J.C. Penney Co. Inc. (JCP) $8.45 +4.55%
Celgene Corp. (CELG) $173.06 +3.98%
International Game Technology (IGT) $18.53 +3.72%
Cabot Oil & Gas Corp. (COG) $36.44 +3.52%
Allegheny Technologies Inc. (ATI) $33.86 +3.33%
Tesoro Corp. (TSO) $59.29 +2.76%
Lennar Corp. Class A (LEN) $35.40 +2.49%
Cliffs Natural Resources Inc. (CLF) $25.17 +2.46%
S&P 500 - Fallers
Edwards Lifesciences Corp. (EW) $63.67 -3.95%
Abercrombie & Fitch Co. (ANF) $34.03 -2.41%
Akamai Technologies Inc. (AKAM) $44.09 -1.91%
Newfield Exploration Co (NFX) $25.97 -1.74%
Noble Energy Inc. (NBL) $68.32 -1.70%
Frontier Communications Co. (FTR) $4.49 -1.64%
Ameren Corp. (AEE) $35.86 -1.59%
QEP Resources Inc (QEP) $30.93 -1.59%
Consolidated Edison Inc. (ED) $55.13 -1.29%
McDonald's Corp. (MCD) $95.56 -1.28%
Dow Jones I.A - Risers
Goldman Sachs Group Inc. (GS) $168.61 +0.84%
Microsoft Corp. (MSFT) $38.65 +0.76%
Home Depot Inc. (HD) $80.41 +0.71%
Caterpillar Inc. (CAT) $86.02 +0.61%
JP Morgan Chase & Co. (JPM) $56.36 +0.54%
Exxon Mobil Corp. (XOM) $96.14 +0.51%
Wal-Mart Stores Inc. (WMT) $80.18 +0.30%
Boeing Co. (BA) $135.58 +0.30%
Chevron Corp. (CVX) $122.61 +0.26%
Nike Inc. (NKE) $80.01 +0.19%
Dow Jones I.A - Fallers
McDonald's Corp. (MCD) $95.56 -1.28%
Verizon Communications Inc. (VZ) $49.01 -0.95%
Johnson & Johnson (JNJ) $93.83 -0.65%
AT&T Inc. (T) $34.31 -0.64%
Coca-Cola Co. (KO) $40.22 -0.59%
Walt Disney Co. (DIS) $71.17 -0.41%
American Express Co. (AXP) $85.68 -0.29%
Travelers Company Inc. (TRV) $88.84 -0.19%
Pfizer Inc. (PFE) $31.48 -0.19%
Intel Corp. (INTC) $24.78 -0.16%
Nasdaq 100 - Risers
Micron Technology Inc. (MU) $23.34 +4.62%
Celgene Corp. (CELG) $173.06 +3.98%
Wynn Resorts Ltd. (WYNN) $176.82 +2.11%
DIRECTV (DTV) $67.81 +2.06%
Baidu Inc. (BIDU) $171.89 +1.88%
Gilead Sciences Inc. (GILD) $75.15 +1.57%
Kraft Foods Group, Inc. (KRFT) $54.38 +1.55%
Liberty Global plc Series A (LBTYA) $86.42 +1.46%
Regeneron Pharmaceuticals Inc. (REGN) $286.56 +1.35%
Vodafone Group Plc ADS (VOD) $38.19 +1.25%
Nasdaq 100 - Fallers
Akamai Technologies Inc. (AKAM) $44.09 -1.91%
Nvidia Corp. (NVDA) $15.30 -1.13%
Cognizant Technology Solutions Corp. (CTSH) $95.17 -1.07%
Intuitive Surgical Inc. (ISRG) $373.44 -1.04%
Biogen Idec Inc. (BIIB) $288.36 -0.87%
Whole Foods Market Inc. (WFM) $55.79 -0.84%
Applied Materials Inc. (AMAT) $16.70 -0.77%
Amazon.Com Inc. (AMZN) $384.14 -0.73%
Liberty Interactive Corp (LINTA) $27.48 -0.72%
Cerner Corp. (CERN) $57.06 -0.63% |
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| | Broker Tips | | Broker tips: Tullow, Admiral, Jupiter Fund Management Canaccord Genuity has kept its 'hold' rating and 1,050p target for Tullow Oil after the firm plugged and abandoned the Tultule-1 well onshore Ethiopia after it failed to find oil.
The broker explained that it had only attributed a value of 1p per share to Tultule on a risked basis (5p/share unranked) "so the target was relatively small". "The importance of the well was not so much in the value of the standalone target but was more about opening the next basin in the East African drilling campaign. Tullow has had a bounce over the last week and we expect a bit of weakness today."
Numis Securities has reiterated its 'add' rating and 1,425p target for Admiral following the insurance group's announcement that it has extended its underwriting agreement with Munich Re.
Analyst Nick Johnson said: "We are bullish on the shares given our view that excess reserves will provide strong earnings and dividend support during the cyclical downturn, with attractive longer-term International and UK growth prospects under-valued in the current rating."
Jupiter Fund Management shares look attractive after their recent underperformance, according to Panmure Gordon, which reiterated its positive stance on the stockfollowing the appointment of Maarten Slenderbroek as its new Chief Executive Officer.
"This move signals the importance of their international strategy in realising the goal of doubling assets under management (AuM) from £29bn in the next five years while maintaining operating margins which at 50%+ remain best in class," said Panmure analyst Keith Baird. "The business that has grown up over the last decade is very UK-centric so that diversification is welcome," he said. | | |
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