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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: Stocks at one-week high, Lloyds gains - UK market at highest since December 2nd
- S&P 500 hits 39th record close this year
- Taper speculation picks up ahead of Fed meeting
- Carney calls for sustained low rates
techMARK 2,684.69 +0.19%
FTSE 100 6,567.32 +0.12%
FTSE 250 15,424.59 +0.21%
UK markets opened with small gains on Tuesday morning, rising to levels not seen in over a week, despite increased speculation surrounding a withdrawal of US monetary stimulus.
This follows another all-time high for the S&P 500 on Wall Street on Monday night as hawkish comments from a number of Federal Reserve members failed to prevent the benchmark index hitting its 39th record close this year.
St Louis Fed President James Bullard said yesterday that recent improvements in the labour market could warrant a small taper of asset purchases at the central bank's policy meeting on December 17-18th. Meanwhile, Jeffrey Lacker from the Richmond Fed said a taper will be on the table at this month's meeting, and Dallas Fed's Richard Fisher called for a taper at the "earliest opportunity".
Nevertheless, the FTSE 100 edged higher in early trading, up 0.12% at 6,567.32; it has not closed above this level since December 2nd.
"Equities are enjoying strength once again, recovering nearly all of the losses seen since selling off on November 29th when investors panicked that the global economy would not be able to cope with US tapering," said Max Cohen, Financial Sales Trader at Spreadex.
"For bullish market participants who have managed to stay calm and ride out this recent bumps, the likely hood of further gains now seems more realistic. We keep being reminded that traditionally, December is an exceptionally strong month for equities and many opportunistic investors will still be banking on a Santa rally."
However, capping gains this morning was mixed data from China as a pick-up in retail sales growth in November came alongside a slowdown in industrial output and fixed-asset investments.
Nearer to home, UK industrial and manufacturing production data will be released today, along with the trade balance and the NIESR economic growth forecast for the three months to November.
Comments from Bank of England Governor Mark Carney were in focus today after he said that the UK economy needs sustained low interest rates to boost growth. He said it would be a mistake "to rush to a more extreme response".
Lloyds sells St James's Place stake
Lloyds was higher on the news that it has offloaded its remaining stake in wealth management group St James's Place, as it continues its reduction of 'non-core' assets. The bank raised gross proceeds of £680m from placing its remaining 21% interest in SJP, realising a gain on sale of around £105m.
Other financial stocks such as Prudential, Hargreaves Lansdown and RBS were also in demand this morning.
TUI Travel was in the red despite reporting record annual profits as margins sizzled during the peak summer period, particularly in the UK. Profit before tax soared 21% to £473m on revenue up 4% to £15.05bn in the year to September 30th.
Precious metals miner Fresnillo fell after it lowered its annual gold production forecast by 8.4% to 425,900 ounces.
Sector peer Antofagasta gained after a Credit Suisse upgrade to 'neutral', while Kazakhmys was lower after the same bank reduced its rating to 'underperform'.
Whitbread, the owner of the Premier Inn, Beefeater and Costa chains, fell despite saying it is on track to deliver full-year results in line with expectations following a strong third quarter.
Investors at wireless technology firm CSR celebrated the company's decision to discontinue investment in its camera-on-a-chip (COACH) platform due to "weakness in the digital still camera market". The firm said it would be taking an impairment charge of $90m. |
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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% |
| | UK Event Calendar | | INTERIMS
Ashtead Group, Carpetright, Iomart Group, Photo-Me International, Polar Capital Technology Trust
INTERIM DIVIDEND PAYMENT DATE
Walker Crips Group
QUARTERLY PAYMENT DATE
Canaccord Genuity Group Inc., IBM Corp.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Treasury Budget Statement (US) (19:00)
Wholesales Inventories (US) (15:00)
Industial production (CH)
Fixed asset investment (CH)
M2 (CH)
New loans (CH)
Retail sales (CH)
Q2
Ashtead Group
FINALS
Litebulb Group Ltd, TUI Travel, Victrex, Zytronic
AGMS
All Asia Asset Capital Limited (DI), Debenhams, GETECH Group, Tristel, Utilitywise, Weatherly International
TRADING ANNOUNCEMENTS
Whitbread
UK ECONOMIC ANNOUNCEMENTS
Balance of Trade (09:30)
Industrial Production (09:30)
Manufacturing Production (09:30)
RICS Housing Market Survey (09:30)
FINAL DIVIDEND PAYMENT DATE
ISG |
| | 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 open: Stocks climb as Chinese industrial output rises - Chinese industrial output slows
- French factory production falls
- Fed officials hint at stimulus cut
FTSE 100: 0.12%
DAX: 0.18%
CAC 40: 0.065
FTSE MIB: 0.03%
IBEX 35: 0.31%
Stoxx 600: 0.06%
European stocks advanced as a report showed Chinese industrial production rose albeit at a slower pace.
Chinese factory production climbed 10% in November from a year ago, compared to a 10.3% jump in October. Analysts had predicted a 10.1% rise.
In France another report showed the nation's industrial production fell 0.3% in October from a revised 0.3% decrease a month earlier. Economists had pencilled in a 0.1% increase.
Looking ahead, investors are bracing themselves for a potential stimulus cut by the US Federal Reserve when the central bank meets next week.
Three members of the Fed yesterday strongly hinted at a reduction in the monthly $85bn bond buying programme.
"Comments from two of these, Richard Fisher and Jeffrey Lacker, would not have ordinarily had much of an impact on the markets as these are known hawks and therefore regularly call for reductions, while warning against the risks and costs of the programme," Alpari analyst Craig Erlam noted.
"However, it was the comments from James Bullard, a known dove and FOMC voting member, that gave the clearest message yet that a taper next week is well and truly on the cards."
Bullard claimed that a small taper would allow the Fed to monitor inflation next year and would reflect the improvement in the labour market.
Last week's better than expected jobs report fuelled speculation of a stimulus reduction but concerns that the positive figures would prompt a reduction to stimulus were outweighed by an improved outlook for the economy.
Ashtead, Fresnillo
Ashtead advanced after the equipment rental company raised its interim dividend by 50% to 2.25p a share and reported a 23%increase in first-half revenue to £849.7m.
Fresnillo dropped after the miner lowered its annual gold production forecast by 8.4% to 425,900 ounces.
Vopak declined after the Dutch oil and gas tank storage provider said it was unlikely reach its goal of €1bn in earnings before interest, taxes, depreciation and amortisation in 2016. |
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| | US Market Report | | US close: S&P 500 hits new high despite increased taper bets - S&P 500 hits new high of 1,808.37
- Bullard, Lacker, Fisher comments point to December taper
- Sysco to buy US Foods for 3.5bn dollars
Dow Jones: 0.03%
Nasdaq: 0.15%
S&P 500: 0.18%
US stocks finished slightly higher on Monday with the S&P 500 hitting yet another record close as markets shrugged off heightened speculation surrounding Federal Reserve monetary policy.
Equities were extending gains made Friday when the November jobs report came in much better than expected, with 203,000 non-farm payrolls being added and the jobless rate falling to 7%.
Despite increased bets that this could prompt the Fed to begin scaling back stimulus as soon as this month, the S&P 500 managed to rise 3.28 (+0.18%) to 1,808.37, surpassing its previous all-time high reached on November 27th.
Michael Hewson, Chief Market Analyst at CMC Markets, said that the strength in US stocks was "even more surprising" given comments from St Louis Fed President James Bullard who said that recent improvements in the labour market could warrant a small taper of asset purchases at the central bank's policy meeting next week.
Hewson said: "Apart from the brief dip the comments failed to halt a slow return towards last week's highs. Maybe good news is good news after all, at long last, or maybe other factors could be at play?"
Comments from Jeffrey Lacker from the Richmond Fed were also in focus after he said that a taper will be on the table at this month's meeting. Meanwhile, Dallas Fed's Richard Fisher called for a taper at the "earliest opportunity".
Helping sentiment on Wall Street were 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.
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.
Sysco jumps after US Foods acquisition
Shares in Sysco surged on Monday after the food distributor agreed to buy rival firm US Foods for around $3.5bn in a stock and cash deal. The new entity will keep the name Sysco and be based in Houston.
McDonald´s fell after reporting an 0.5% increase in global same-store sales for the month of November, just below the 0.6% expected by analysts.
Auto giant GM rose after an executive gave an upbeat outlook for the business once the government sells its final stake, something which the US Treasury announced after the market close.
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 higher after the company received regulatory approval for a hepatitis C pill which it has developed.
S&P 500 - Risers
Sysco Corp. (SYY) $37.62 +9.65%
DaVita HealthCare Partners Inc (DVA) $62.17 +6.71%
Cabot Oil & Gas Corp. (COG) $36.82 +4.60%
J.C. Penney Co. Inc. (JCP) $8.43 +4.33%
Dow Chemical Co. (DOW) $40.80 +3.90%
Range Resources Corp. (RRC) $82.08 +3.82%
Micron Technology Inc. (MU) $23.12 +3.63%
Allegheny Technologies Inc. (ATI) $33.82 +3.20%
Wynn Resorts Ltd. (WYNN) $178.53 +3.10%
Newmont Mining Corp. (NEM) $23.60 +2.52%
S&P 500 - Fallers
Newfield Exploration Co (NFX) $24.33 -7.95%
Edwards Lifesciences Corp. (EW) $62.73 -5.37%
First Solar Inc. (FSLR) $56.07 -3.34%
Graham Holdings Co. (GHC) $607.48 -2.95%
Abercrombie & Fitch Co. (ANF) $34.10 -2.21%
AES Corp. (AES) $14.71 -2.06%
PVH Corp. (PVH) $127.43 -2.06%
Adt Corp (ADT) $39.69 -2.05%
Ameren Corp. (AEE) $35.72 -1.98%
L Brands Inc (LB) $62.09 -1.97%
Dow Jones I.A - Risers
General Electric Co. (GE) $27.19 +0.93%
Microsoft Corp. (MSFT) $38.71 +0.90%
Chevron Corp. (CVX) $123.34 +0.86%
JP Morgan Chase & Co. (JPM) $56.51 +0.80%
Caterpillar Inc. (CAT) $86.09 +0.69%
AT&T Inc. (T) $34.69 +0.46%
Intel Corp. (INTC) $24.93 +0.44%
Merck & Co. Inc. (MRK) $49.56 +0.34%
Procter & Gamble Co. (PG) $84.78 +0.31%
Goldman Sachs Group Inc. (GS) $167.67 +0.28%
Dow Jones I.A - Fallers
McDonald's Corp. (MCD) $95.72 -1.12%
Travelers Company Inc. (TRV) $88.45 -0.63%
Walt Disney Co. (DIS) $71.11 -0.49%
Boeing Co. (BA) $134.68 -0.37%
Home Depot Inc. (HD) $79.60 -0.30%
Cisco Systems Inc. (CSCO) $21.22 -0.28%
American Express Co. (AXP) $85.75 -0.21%
Coca-Cola Co. (KO) $40.40 -0.15%
Visa Inc. (V) $201.59 -0.14%
International Business Machines Corp. (IBM) $177.46 -0.12%
Nasdaq 100 - Risers
Micron Technology Inc. (MU) $23.12 +3.63%
Wynn Resorts Ltd. (WYNN) $178.53 +3.10%
Tesla Motors Inc (TSLA) $141.60 +3.09%
DIRECTV (DTV) $67.90 +2.20%
Celgene Corp. (CELG) $170.01 +2.15%
F5 Networks Inc. (FFIV) $85.18 +1.90%
Baidu Inc. (BIDU) $171.90 +1.89%
Facebook Inc. (FB) $48.84 +1.88%
Kraft Foods Group, Inc. (KRFT) $54.50 +1.77%
Equinix Inc. (EQIX) $168.36 +1.74%
Nasdaq 100 - Fallers
Nvidia Corp. (NVDA) $15.20 -1.71%
Biogen Idec Inc. (BIIB) $286.18 -1.62%
Cognizant Technology Solutions Corp. (CTSH) $94.80 -1.46%
Seagate Technology Plc (STX) $50.71 -1.38%
Akamai Technologies Inc. (AKAM) $44.35 -1.33%
Cerner Corp. (CERN) $56.71 -1.24%
Verisk Analytics Inc. (VRSK) $66.52 -1.20%
Citrix Systems Inc. (CTXS) $59.33 -1.17%
Regeneron Pharmaceuticals Inc. (REGN) $279.49 -1.15%
Mondelez International Inc. (MDLZ) $34.69 -1.14% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: Carney, Royal Mail, EADS... Mark Carney, the Governor of the Bank of England, has said it will move to stop the housing market growing at "warp speed", and signalled that it is unlikely to raise interest rates any time soon. Mr Carney said that the bank was concerned about the "potential" for a bubble in the UK housing market, and that it would tighten lending requirements if needed. - The Telegraph
Postal workers are to get a 9% pay rise over three years and a £200 Christmas bonus in a ground-breaking pay and conditions deal which indicates that both peace and goodwill has finally broken out at the Royal Mail. In what is believed to a be an industrial relations first, the Royal Mail has also signed up to protect current job conditions for its staff for a period of five years in what is effectively a no-strike agreement with the Communication Workers Union.- The Times
EADS is to cut 5,800 jobs at its defence businesses and close sites in Paris, Munich, Spain and Britain as it tries to lift its lagging profit margins and deal with the steep reduction in European defence spending. The cuts, which represent about 4% of the company's workforce, are less drastic than unions had feared. They will be made over the coming three years and, critically, they will be voluntary, making it more likely Europe's largest defence and aerospace company will gain the approval of unions and politicians, which is particularly important in Germany. - Financial Times
The world's biggest airline was officially created on Monday with the merger of American Airways and US Airways, capping a round of consolidation that has worried the US government, rivals and consumer groups. The merged airline will take the American Airlines name and will have a global network of nearly 6,700 daily flights to more than 330 destinations in more than 50 countries, and more than 100,000 employees worldwide. The company has a firm order for 600 new aircraft. - The Guardian
Foreign banks in China have warned that they will suffer severe "collateral damage" from new rules aimed at limiting off-balance sheet lending by domestic banks. Beijing has drafted regulations to restrict interbank loans after financial institutions used them to circumvent government-imposed credit controls. The restrictions are directed at domestic banks that have aggressively increased their interbank business in recent years, but foreign banks, already struggling in China, fear they will be caught in the crossfire. - Financial Times
Current account customers have been switching to Halifax from troubled rivals such as Co-operative Bank and Royal Bank of Scotland, its boss said on Monday, as the bank returned to Scottish high streets for the first time in a decade. Presenting Halifax – which is owned by the bailed-out Lloyds Banking Group – as the "challenger" bank in Scotland, David Nicholson claimed it was "the most switched-to banking brand". - The Guardian
The US government on Monday drew a line under one of the most complex rescues of the global financial crisis, when it announced it had sold the last of its stake in General Motors, the country's biggest carmaker by sales. - Financial Times | | |
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