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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 fall ahead of data-heavy week - Markets drop ahead of key week for data
- Chinese manufacturing beat forecasts in November
- Utility companies pledge to pass on savings to customers
techMARK 2,662.77 -0.42%
FTSE 100 6,618.77 -0.48%
FTSE 250 15,414.98 -0.33%
UK stocks started December on a rather sour note, with markets sinking into the red on Monday morning as investors awaited some key economic data out later this week.
It's a busy week on the macro agenda with several important indicators out from the States, including reports from the manufacturing, construction and housing sectors, as well as reading of consumer confidence and employment.
"With Thanksgiving out of the way and 16.5 trading days to Christmas, it is decision time for investors: take profits; look for new opportunities; or stick it out until the New Year," said Alastair Winter, Chief Economist at Daniel Stewart & Co.
With all the US economic data due in the coming days, Winter said that the November non-farm payrolls figures on Friday will be the "big number of the week".
Anything close to October's surprise 204,000 jump likely to "get pulses racing and equity prices falling" given that it will increase speculation surrounding an impending taper of stimulus by the Federal Reserve.
"Needless to say, the FOMC will be taking a rather broader approach and there is a bundle of other economic data in the pipeline before its meeting on December 17-18th," Winter said. "For the record, I doubt any of this data will be conclusive but on the other hand it does appear that a consensus is forming within the FOMC to that monthly purchases of $85bn are simply unsustainable, whatever the data may say."
Stocks across Europe were trading lower on Monday morning despite better-than-expected economic figures from China, where the manufacturing sector continued its steady expansion in November.
The official government purchasing managers' index (PMI) published by the National Bureau of Statistics (NBS) on Sunday managed to maintain a level of 51.4, despite expectations for a drop to 51.1. Readings over 50 imply an expansion in the sector. Meanwhile, the November PMI compiled by HSBC and Markit Economics dropped only slightly to 50.8 from October's reading of 50.9. Analysts had forecast a larger drop to 50.5.
Energy companies in focus
Both Centrica and SSE rose this morning after the government announced changes over the weekend to obligations that are paid through energy bills to offset the rising cost of living across the UK. Both utility providers said that they would pass on savings to customers, with bills set to rise by a smaller rate than initially estimated.
SSE's share price was over 1% higher early on, while Centrica was being held by back a downgrade by Deutsche Bank to 'hold'.
High Street retailer Debenhams was firmly lower this morning after Barclays Capital cut its rating on the stock to 'underweight', while AZ Electronic Materials was lifted by Deutsche Bank to 'buy'.
Mining stocks were under pressure as commodity prices declined with precious metals peers Fresnillo and Randgold tracking gold and silver lower early on.
Investment and wealth management firm Rathbone Brothers edged higher despite the news that its long-running Chief Executive Andy Pomfret is to retire next year. |
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| FTSE 100 - Risers
SSE (SSE) 1,339.00p +0.90%
Lloyds Banking Group (LLOY) 78.04p +0.83%
Experian (EXPN) 1,136.00p +0.80%
Associated British Foods (ABF) 2,306.00p +0.57%
Centrica (CNA) 339.80p +0.44%
Wolseley (WOS) 3,304.00p +0.33%
Barclays (BARC) 272.60p +0.33%
Unilever (ULVR) 2,476.00p +0.28%
Tate & Lyle (TATE) 787.00p +0.25%
Compass Group (CPG) 922.50p +0.16%
FTSE 100 - Fallers
Fresnillo (FRES) 811.50p -2.58%
Sainsbury (J) (SBRY) 397.70p -2.38%
Randgold Resources Ltd. (RRS) 4,260.00p -1.98%
CRH (CRH) 1,523.00p -1.93%
Vedanta Resources (VED) 868.00p -1.92%
Anglo American (AAL) 1,323.50p -1.89%
Aberdeen Asset Management (ADN) 483.00p -1.89%
Mondi (MNDI) 987.00p -1.79%
Tesco (TSCO) 341.75p -1.78%
Aggreko (AGK) 1,581.00p -1.50%
FTSE 250 - Risers
Synthomer (SYNT) 243.20p +5.10%
NMC Health (NMC) 416.20p +2.19%
Cranswick (CWK) 1,166.00p +2.19%
Daejan Holdings (DJAN) 4,381.00p +1.84%
Diploma (DPLM) 710.50p +1.50%
Euromoney Institutional Investor (ERM) 1,261.00p +1.45%
Genesis Emerging Markets Fund Ltd. (GSS) 528.00p +1.34%
IP Group (IPO) 194.30p +1.20%
esure Group (ESUR) 256.90p +1.14%
BH Global Ltd. USD Shares (BHGU) 11.95 +1.10%
FTSE 250 - Fallers
Debenhams (DEB) 92.80p -4.08%
African Barrick Gold (ABG) 166.10p -2.92%
Computacenter (CCC) 655.50p -2.16%
Henderson Group (HGG) 209.70p -2.15%
COLT Group SA (COLT) 124.40p -2.05%
Halfords Group (HFD) 479.10p -1.90%
Evraz (EVR) 104.90p -1.87%
Kazakhmys (KAZ) 233.00p -1.81%
Man Group (EMG) 87.10p -1.80% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks decline before batch of economic data - US data released before Fed meeting
- EU and UK manufacturing out
- China's manufacturing activity expands
- Cameron pushes China-EU trade deal
FTSE 100: -0.48%
DAX: -0.03%
CAC 40: -0.46%
FTSE MIB: -1.22%
IBEX 35: -0.91%
Stoxx 600: -0.20%
European stocks slipped into the red as investors waited on a slate of US data to gauge the health of world's biggest economy ahead of the Federal Reserve's policy meeting this month.
US Construction Spending, ISM Manufacturing, and ISM Prices Paid will be released after US markets open later today.
It comes as Fed policymakers weigh whether the economy has picked up enough to begin scaling back its $85bn per month in asset purchases.
The central bank has hinted that tapering could come as soon at its next meeting mid-December but most economists expect a March 2014 start.
"As it stands, I think it's very unlikely that the Fed will scale back its asset purchases in a couple of weeks time," said Alpari analyst Craig Erlam.
"While some areas of the economy have improved and the impact of the October government shutdown has been non-existent, the majority of the data has been fairly mixed."
On the agenda for the UK today is the UK Manufacturing PMI. The index is expected to rise slightly to 56.1 from 56. A reading above 50 signals expansion.
A report in Europe is expected to show manufacturing expanded in November. The final reading of Markit Economics's factory index rose to 51.5 in November from 51.3 in October, economists have forecast.
Over the weekend was the release of HSBC's Chinese PMI for manufacturing, which beat expectations with a reading of 50.8 (October: 50.9), the second highest level recorded in the past eight months. A reading of 50.5 had been predicted.
Hongbin Qu, Chief Economist of HSBC's Chinese division, said: "China's manufacturing sector kept relatively steady growth momentum in November, as the final manufacturing PMI was revised up from the flash reading on the back of faster new business gains."
Elsewhere in the Asian nation today, UK Prime Minister David Cameron has called for a multi-billion-dollar free trade deal between Beijing and the European Union (EU).
Cameron, who arrived in China on Monday for a three-day visit with about 100 business people, said he wanted to lay the ground for a deal between the block and the world's second largest economy despite tension surrounding his own country's membership in the EU.
L'Oreal, Deutsche Boerse
L'Oreal's shares advanced after the world's largest cosmetics maker said it will repurchase as much as €500m of shares.
Deutsche Boerse AG gained after the exchange signed a deal with the Bank of China to promote Frankfurt as a centre for yuan trading in Europe.
ThyssenKrupp declined after the German steelmaker agreed to sell its US plant to ArcelorMittal and Nippon Steel & Sumitomo Metal Corp. for $1.55bn.
Actelion slumped after the biopharmaceutical company said Data Monitoring Committee has recommended terminating a study on an ulcer treatment.
Other asset classes climb
The euro rose 0.01% to $1.3591.
Brent crude gained $0.643 to $110.400 per barrel on the ICE. |
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| | Newspaper Round Up | | Monday newspaper round-up: China, Protectionism, RBS China's Premier, Li Keqiang today raised the prospect of China playing a major role in the construction of the HS2 high speed rail project in Britain. At a post-summit briefing in Beijing's Great Hall of the People, Mr Li was at pains to highlight the project as he spoke about Britain's expanding strategic relationship with the world's second biggest economy. - The Times
Globalisation is in retreat. Countries are becoming less reliant on each other. They show a willingness to use currency manipulation as an economic tool. Surreptitious protectionism is being deployed. For the most part these developments are happening below the radar, which is why it has been possible to ignore them. That will not be the case this week when trade ministers from 159 countries meet in Bali in the hopes of salvaging something from 12 years of so far fruitless talks. - The Guardian
The Royal Bank of Scotland is pressing ahead with plans to pay multi-million pound bonuses, despite the launch of a regulatory probe into its lending practices. Sources at RBS said the size of the bonus pool would not be affected by the decision of the Financial Conduct Authority (FCA) to investigate allegations that the bank had deliberately pushed companies into default. - The Daily Telegraph
Britain is still the favourite tax regime of business but its lead over low-tax rivals such as Ireland, Luxembourg and Switzerland has narrowed amid tense debate over tax avoidance, according to a survey. Two-thirds of the UK's largest quoted companies said the media and political storm over avoidance was likely to deter investment in Britain, in a sign of nervousness about the risk of reputational damage and a change in government policy. - Financial Times
New job vacancies in the City have jumped to their highest level for more than seven months in a sign that the recent increase in financial activity may be feeding through into job creation, a recruiter has reported. Astbury Marsden, a financial services specialist, said there were 2,500 new City vacancies in November, up 6% on the previous month and 38% on the same period last year. - Financial Times
They may be soft, warm, extremely expensive and the winterwear of choice for Europe's sporty elite, but Moncler's shiny goosedown coats have never quite caught on in the UK. The entrepreneur behind the distinctive Italian puffa jackets is hoping to change all that, at least as far as the City is concerned. Remo Ruffini is seeking investors in Britain for an upcoming flotation on the Milan stock exchange that is likely to value Moncler at €2.4bn. - The Times | | |
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