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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: Fed taper sparks 'Santa Rally' as stocks jump - Fed cuts monthly bond buying to 75bn dollars
- Commits to near-zero rates, depending on inflation
- Pharma peers AstraZeneca, GSK making gains
techMARK 2,727.60 +1.12%
FTSE 100 6,553.38 +0.94%
FTSE 250 15,550.52 +1.20%
UK markets opened around one per cent higher on Thursday morning in the aftermath of the Federal Reserve's decision to taper its quantitative easing programme, as investors welcomed the end to months of uncertainty.
"This should in turn remove much of the volatility that we have seen in the final quarter of 2013, gearing us up for a delayed but eagerly anticipated 'Santa Rally' to finish this year in a bang and kick off the next year in an upbeat fashion," said Market Strategist Ishaq Siddiqi from ETX Capital.
The Federal Reserve announced on Wednesday night 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. The news sent both the Dow Jones Industrial Average and S&P 500 to new record highs on Wall Street.
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 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."
AstraZeneca jumps on BMS deal
AstraZeneca was a high riser this morning after spending up to $4.1bn in 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.
Fellow pharma group GlaxoSmithKline (GSK) also advanced after announcing yesterday evening that US regulators have 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 copy of GSK's biggest product, Advair.
There were just a handful of fallers on the FTSE 100 early on, with mining peers Fresnillo and Randgold Resources among them as precious metals prices declined.
Support services group Serco fell after warning that recent contract problems may hit its cash flow this year. However, it still said 2013 results were likely to meet market hopes.
Financial stocks were mixed with RSA Insurance, Standard Chartered and HSBC trading lower, and Barclays, Resolution and Prudential among the best performers. |
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| FTSE 100 - Risers
Petrofac Ltd. (PFC) 1,122.00p +3.03%
BAE Systems (BA.) 446.20p +2.79%
Resolution Ltd. (RSL) 335.90p +2.50%
Hammerson (HMSO) 502.50p +2.49%
Standard Life (SL.) 348.60p +2.44%
Persimmon (PSN) 1,196.00p +2.40%
Land Securities Group (LAND) 949.50p +2.32%
WPP (WPP) 1,328.00p +2.31%
ITV (ITV) 185.40p +2.26%
Prudential (PRU) 1,299.00p +2.20%
FTSE 100 - Fallers
Randgold Resources Ltd. (RRS) 3,820.00p -2.45%
Fresnillo (FRES) 717.00p -1.38%
Standard Chartered (STAN) 1,309.00p -0.76%
HSBC Holdings (HSBA) 643.40p -0.76%
RSA Insurance Group (RSA) 89.90p -0.72%
United Utilities Group (UU.) 647.50p -0.46%
Severn Trent (SVT) 1,674.00p -0.24%
Sainsbury (J) (SBRY) 364.80p -0.08%
Glencore Xstrata (GLEN) 306.50p -0.08%
FTSE 250 - Risers
Redrow (RDW) 308.00p +3.39%
Close Brothers Group (CBG) 1,374.00p +3.31%
Bovis Homes Group (BVS) 783.00p +2.96%
Jupiter Fund Management (JUP) 377.30p +2.95%
Supergroup (SGP) 1,401.00p +2.86%
Henderson Group (HGG) 208.40p +2.86%
Keller Group (KLR) 1,135.00p +2.81%
Halfords Group (HFD) 451.60p +2.80%
Shaftesbury (SHB) 613.50p +2.76%
SEGRO (SGRO) 333.60p +2.71%
FTSE 250 - Fallers
African Barrick Gold (ABG) 155.00p -3.73%
Serco Group (SRP) 437.50p -2.52%
Polymetal International (POLY) 511.00p -1.26%
Hochschild Mining (HOC) 125.10p -1.11%
888 Holdings (888) 159.50p -0.93%
BH Macro Ltd. EUR Shares (BHME) € 19.81 -0.90%
Diploma (DPLM) 704.50p -0.77%
Barr (A.G.) (BAG) 568.00p -0.61%
Cable & Wireless Communications (CWC) 52.30p -0.57% |
| | UK Event Calendar | | Thursday December 19
INTERIMS
Goodwin Plc
INTERIM DIVIDEND PAYMENT DATE
PayPoint, Vedanta Resources
QUARTERLY PAYMENT DATE
Total SA
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (EU) (09:00)
Bloomberg Consumer Confidence (US) (14:45)
Continuing Claims (US) (13:30)
Current Account (EU) (09:00)
Existing Home Sales (US) (15:00)
Initial Jobless Claims (US) (13:30)
Philadelphia Fed Index (US) (15:00)
ANNUAL REPORT
Finsbury Growth & Income Trust, JPMorgan Asian Inv Trust
SPECIAL EX-DIVIDEND PAYMENT DATE
Canadian General Investments Ltd.
EGMS
Hayward Tyler Group, Plaza Centers NV
AGMS
British Empire Securities & General Trust, Chelverton Growth Trust, JPMorgan Elect Managed Cash Shares, JPMorgan Elect Managed Growth Shares, JPMorgan Elect Managed Income Shares, Power Capital Global Ltd., Rangers International Football Club, Schroder Income Growth Fund, Sylvania Platinum Ltd (DI), Westmount Energy Ltd.
TRADING ANNOUNCEMENTS
Keller Group, Serco Group
UK ECONOMIC ANNOUNCEMENTS
Internet Retail Sales (09:30)
Retail Sales (09:30)
FINAL DIVIDEND PAYMENT DATE
GETECH Group, Goldplat
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise after Fed announces tapering - Fed announces stimulus reduction
- EU agrees banking deal
FTSE 100: 1.01%
DAX: 1.68%
CAC 40: 1.67%
FTSE MIB: 1.29%
IBEX 35: 1.96%
Stoxx 600: 1.53%
European stocks rose after the Federal Reserve announced a scaling back of its monetary stimulus.
The US central bank said it would reduce its monthly bond-buying programme from $85bn to $75bn last night after wrapping up its two-day policy meeting.
The Fed also said it would make similar moderate reductions in the future, subject to incoming economic data.
Policymakers predicted the jobless rate - currently at 7% - will 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 decision to taper went against our expectation of no change in the policy stance, but we had been highlighting that the incoming data since the September meeting raised the risk of a tapering in December and we felt the decision was close to a coin toss entering the meeting," said Analyst Michael Gapen from Barclays.
EU agrees blueprint for failing banks
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.
European leaders will sign off on the deal and the final details will be made in negotiations with the European Parliament next year.
Amadeus climbs
Amadeus advanced after the Spanish travel-reservations company forecast 2013 revenues and earnings that beat analysts' estimates.
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.
Algeta surged after Bayer AG said it will buy the drugmaker for about 17.6bn kroner, a price that topped a preliminary offer. |
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| | US Market Report | | US close: Markets hit new records as Fed scales back QE - Fed cuts monthly asset purchases to 75bn dollars
- Commits to near-zero rates, dependent on inflation
- Housing starts beat expectations for November
Dow Jones: 1.84%
Nasdaq: 1.15%
S&P 500: 1.67%
US stocks rocketed on Wednesday after the Federal Reserve moved to scale back quantitative easing, ending months of uncertainty for financial markets worldwide.
The news sent the Dow Jones Industrial Average up 1.84% to a record 16,167.97 and the S&P 500 up 1.68% to an all-time high of 1,810.65. The Nasdaq, meanwhile, jumped 1.15% to 4,070.06.
The Federal Reserve 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.
"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."
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".
In other news, a report on housing starts rose more than expected to a seasonally adjusted annual rate of 1.09m in November from 889,000 the previous month. This 22.7% gain was the fastest pace recorded since early 2008, beating the 950,000 housing starts expected by analysts.
US mortgage applications fell by 5.5% in the week to December 13th, compared to an increase of 1% the prior week, according to data from the Mortgage Bankers' Association.
Ford drops on US outlook
Auto major Ford was a heavy faller in morning trade after saying that profits will fall in 2014 due to the cost of bringing 23 new vehicle models to market – it's busiest year for new vehicle launches in history. The company said it would earn $7-8bn next year, down from an expected $8.5bn in 2013.
Banking stocks performed well on Wednesday with JPMorgan Chase & Co, Goldman Sachs, Bank of America and Citigroup registering decent gains by the close.
Tech group Apple was trading lower after reported supplier Jabil disappointed investors with its first-quarter earnings and second-quarter guidance. Citigroup said that Jabil's guidance for a drop in sales from its diversified manufacturing services division could suggest a fall in iPhone production.
Lennar advanced as the US homebuilder reported a rise in net income in the three months through November that beat analysts' expectations. Sector peers DR Horton and PulteGroup were also higher.
Halozyme gained as the biopharmaceutical company named Helen Torley as its Chief Executive and President to replace Gregory I. Frost.
VeriFone Systems declined as the maker of credit-card terminals said it expected adjusted per-share earnings of $1.35-$1.40 this year, compared with a forecast of $1.56.
S&P 500 - Risers
D. R. Horton Inc. (DHI) $20.11 +6.35%
Lennar Corp. Class A (LEN) $37.43 +6.34%
Quanta Services Inc. (PWR) $30.64 +5.04%
Gilead Sciences Inc. (GILD) $73.59 +5.01%
Vertex Pharmaceuticals Inc. (VRTX) $68.63 +4.65%
Alexion Pharmaceuticals Inc. (ALXN) $128.65 +4.54%
Janus Capital Group Inc. (JNS) $11.57 +4.42%
CVS Caremark Corp. (CVS) $69.69 +4.31%
Weyerhaeuser Co. (WY) $31.39 +4.29%
Abbott Laboratories (ABT) $38.12 +4.12%
S&P 500 - Fallers
Jabil Circuit Inc. (JBL) $15.67 -20.54%
Ford Motor Co. (F) $15.65 -6.29%
Micron Technology Inc. (MU) $21.81 -4.84%
Ensco Plc. (ESV) $56.07 -3.36%
Frontier Communications Co. (FTR) $4.69 -1.88%
Garmin Ltd. (GRMN) $45.79 -1.67%
Western Digital Corp. (WDC) $82.10 -1.56%
EQT Corp. (EQT) $84.64 -1.40%
Sears Holdings Corp. (SHLD) $43.95 -1.12%
Cameron International Corp. (CAM) $58.02 -1.12%
Dow Jones I.A - Risers
3M Co. (MMM) $135.80 +3.36%
Exxon Mobil Corp. (XOM) $99.54 +2.88%
JP Morgan Chase & Co. (JPM) $57.24 +2.73%
Goldman Sachs Group Inc. (GS) $174.84 +2.55%
Chevron Corp. (CVX) $121.60 +2.41%
Coca-Cola Co. (KO) $40.02 +2.35%
Nike Inc. (NKE) $78.55 +2.33%
American Express Co. (AXP) $85.99 +2.24%
Johnson & Johnson (JNJ) $92.64 +2.18%
Walt Disney Co. (DIS) $72.20 +2.18%
Dow Jones I.A - Fallers
Boeing Co. (BA) $135.49 -0.29%
Nasdaq 100 - Risers
Gilead Sciences Inc. (GILD) $73.59 +5.01%
Vertex Pharmaceuticals Inc. (VRTX) $68.63 +4.65%
Alexion Pharmaceuticals Inc. (ALXN) $128.65 +4.54%
Regeneron Pharmaceuticals Inc. (REGN) $271.72 +3.76%
Biogen Idec Inc. (BIIB) $280.64 +3.41%
Discovery Communications Inc. Class A (DISCA) $86.29 +3.08%
Monster Beverage Corp (MNST) $65.16 +2.79%
Staples Inc. (SPLS) $15.62 +2.63%
Cognizant Technology Solutions Corp. (CTSH) $96.58 +2.52%
Comcast Corp. (CMCSA) $50.27 +2.49%
Nasdaq 100 - Fallers
Micron Technology Inc. (MU) $21.81 -4.84%
Tesla Motors Inc (TSLA) $147.98 -2.94%
Garmin Ltd. (GRMN) $45.79 -1.67%
Western Digital Corp. (WDC) $82.10 -1.56%
Sears Holdings Corp. (SHLD) $43.95 -1.12%
Randgold Resources Ltd. Ads (GOLD) $63.35 -0.83%
Avago Technologies Ltd. (AVGO) $53.15 -0.80%
Apple Inc. (AAPL) $550.77 -0.76%
Seagate Technology Plc (STX) $52.65 -0.57%
PACCAR Inc. (PCAR) $57.73 -0.21% |
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| | Newspaper Round Up | | Thursday newspaper round-up: Fed taper, EU banking union, Retailers... Emerging and Asian exchanges took the taper in their stride as global markets continued to react on Thursday to the US Federal Reserve's decision to begin shrinking its monthly asset buying programme from 85bn dollars to 75bn dollars. Previous hints that the Fed was set to reduce, or taper, its purchase programme had caused turbulence in emerging markets. But Thursday's relative calm suggested that half a year of teasers from the US central bank had prepared the ground well. - Financial Times
The Chancellor last night hailed an agreement to form a European banking union that will protect the interests of Britain's taxpayers. George Osborne spent long into the evening in Brussels negotiating with fellow European Union finance ministers over a deal that gives the European Union new powers to prevent banking failures. The so-called banking union is also designed to put an end to the need for taxpayer-funded bailouts such as those that became prevalent during the financial crisis in Britain, the United States and Europe. - The Times
Ailing retailers hoping for a late surge in Christmas shopping could be left disappointed, according to new data from Visa Europe. December 23rd is expected to be the biggest shopping day of the year in the UK but Visa has warned that retail sales could be flat on the same day in 2012. Visa has estimated that £1.2bn will be spent on its cards on Monday December 23 using historical spend data, the same amount as last year. The Telegraph
Mark Carney, the governor of the Bank of England, has formally announced that Britain will switch to using plastic banknotes in 2016, ending 320 years of paper money. After a public consultation in which 87% of the 13,000 respondents backed the new-style currency, the Bank said it would introduce "polymer" notes, as it prefers to call them, in two years' time, starting with the new £5 note featuring Winston Churchill in 2016 and the Jane Austen £10 a year later. - The Guardian
General Electric expects its revenue growth to accelerate next year as the US economy continues to strengthen, the US manufacturing and financial group told investors on Wednesday. It also forecast double-digit growth in earnings from its industrial operations, offsetting a decline in profits at GE Capital, its finance arm. In an annual presentation to analysts and investors, Jeff Immelt, GE's chief executive, said the company would have a "ton of cash", with about $90bn available over the next three years, much of which could be used for share buybacks and raising the dividend. - Financial Times
HM Revenue and Customs has been accused of failing to collect enough tax from big business and not using the powers at its disposal to do so by an influential committee of MPs. The Public Accounts Committee (PAC), chaired by Margaret Hodge, accused the tax man of "not clearly demonstrating that it [HMRC] is on the side of the majority of taxpayers who pay their taxes in full." - The Telegraph | | |
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