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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: FTSE 100 treads water at eight-month high - FTSE 100 fails to break 2013 intraday high
- Credit squeeze eases in China
- IMF lifts global growth forecasts
techMARK 2,846.40 -0.25%
FTSE 100 6,834.26 -0.04%
FTSE 250 16,144.20 -0.51%
After a choppy session, UK markets finished broadly flat on Tuesday as the FTSE 100 teetered at levels not reached in eight months.
An easing of credit conditions in China and upwards revisions to growth estimates by the International Monetary Fund (IMF) failed to keep the Footsie in positive territory today, as cautiousness set in after a 3.5% rise over the past month.
Despite US markets reopening after a three-day weekend - Wall Street was closed for Martin Luther King Jr. Day yesterday – it was another lacklustre session in London with trading rangebound for most of the day.
The benchmark FTSE 100 finished at 6,834.26, down just 2.47 points, erasing gains late on after coming close to last year's intraday high of 6,875 in afternoon trade. Yesterday, the index hit 6,836.72, its best closing level since reaching 6,840.27 in May 2013.
Toby Morris, Senior Sales Trader at CMC Markets, said that the 6,875 intraday high reached last year is "the only historical resistance to break before taking on all-time high recorded back in 1999".
Stocks rose initially this morning, tracking gains for Asian markets overnight on the back of an easing of credit conditions in China as the central bank injected fresh liquidity into the country's large banks to meet demand for cash ahead of Chinese New Year later this month.
Meanwhile, the IMF lifted its growth forecast for the global economy to 3.7% for 2014, up from its previous estimate of 3.6%, owing to upwards revisions to forecasts in the UK, US, Europe and Japan.
On a negative note, there was a surprise fall in the German ZEW index on economic sentiment which fell from 62 to 61.7 in January, worse than rise to 64 expected by analysts. The current situation index, however, jumped from 32.4 to 41.2.
Intertek jumps on SGS readacross, Unilever gains
Intertek, a provider of testing and safety solutions, jumped as a result of readacross from its sector peer, Swiss firm SGS, which posted upbeat full-year results.
Consumer products group Unilever was also high riser today after reporting underlying sales growth of 4.3% for 2013, helped by strong growth in the emerging markets.
Drugs maker GlaxoSmithKline rose after reporting that its new HIV treatment, Tivicay, has received approval in Europe.
Mining stocks sank on weak metal prices, pushing Randgold Resources, Anglo American, Rio Tinto, Fresnillo, BHP Billiton, and Glencore Xstrata all firmly lower. Investors were also focusing on comments from Goldman Sachs, which adjusted its commodity price forecasts for 2014 and beyond.
William Hill and Ladbrokes slumped after JPMorgan Cazenove expressed concerns about potential regulatory restrictions on machine gaming, which could result in "material downgrades and significant shop closures" at the bookmakers.
Weir Group slumped after fellow oil services provider Baker Hughes highlighted higher costs for the sector in its fourth-quarter results. Baker said a surplus of natural-gas supply led to lower prices and pushed energy companies to shift operations to oil-rich shale, which is more difficult to tap.
British Land was named as HSBC's key 'overweight'-rated company, giving the stock a lift today, as the bank gave an upbeat outlook for UK property sector. |
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FTSE 100 - Risers
Associated British Foods (ABF) 2,806.00p +4.23%
Intertek Group (ITRK) 3,000.00p +3.16%
Hargreaves Lansdown (HL.) 1,549.00p +2.65%
Imperial Tobacco Group (IMT) 2,284.00p +2.51%
Standard Chartered (STAN) 1,358.00p +2.26%
easyJet (EZJ) 1,710.00p +2.21%
Coca-Cola HBC AG (CDI) (CCH) 1,768.00p +2.20%
Diageo (DGE) 1,985.00p +1.95%
Unilever (ULVR) 2,480.00p +1.76%
Babcock International Group (BAB) 1,426.00p +1.71%
FTSE 100 - Fallers
Rio Tinto (RIO) 3,231.50p -3.13%
Antofagasta (ANTO) 819.50p -3.02%
Anglo American (AAL) 1,356.00p -2.66%
Weir Group (WEIR) 2,174.00p -2.38%
Aberdeen Asset Management (ADN) 426.00p -2.16%
Morrison (Wm) Supermarkets (MRW) 250.10p -1.88%
William Hill (WMH) 355.40p -1.82%
Randgold Resources Ltd. (RRS) 4,112.00p -1.74%
BHP Billiton (BLT) 1,854.50p -1.70%
BAE Systems (BA.) 437.50p -1.49%
FTSE 250 - Risers
Rank Group (RNK) 150.00p +3.88%
African Barrick Gold (ABG) 206.50p +2.94%
Homeserve (HSV) 304.30p +2.15%
Petra Diamonds Ltd.(DI) (PDL) 125.00p +2.04%
Ocado Group (OCDO) 527.00p +2.03%
Xaar (XAR) 1,031.00p +1.98%
Greencore Group (GNC) 242.70p +1.85%
Grainger (GRI) 221.70p +1.70%
JD Sports Fashion (JD.) 1,651.00p +1.60%
Daejan Holdings (DJAN) 4,845.00p +1.57%
FTSE 250 - Fallers
Kazakhmys (KAZ) 185.50p -4.87%
Ladbrokes (LAD) 158.60p -4.86%
Ferrexpo (FXPO) 171.40p -4.78%
Imagination Technologies Group (IMG) 199.80p -4.36%
Kenmare Resources (KMR) 18.21p -3.65%
Bodycote (BOY) 685.00p -3.52%
Thomas Cook Group (TCG) 180.10p -3.28%
Vedanta Resources (VED) 908.50p -3.04%
Laird (LRD) 306.60p -2.97%
Ophir Energy (OPHR) 299.40p -2.95% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks mixed after IMF global growth upgrade - IMF upgrades world economic forecast
- German investor confidence falls
- China injects liquidity into banks
- ECB may revise Eurozone outlook
FTSE 100: -0.04%
DAX: 0.15%
CAC 40: 0.02%
FTSE MIB: 0.11%
IBEX 35: -0.92%
Stoxx 600: 0.08%
European stocks were mixed after the International Monetary Fund (IMF) upgraded its world economic forecast and German data showed a fall in investor confidence.
IMF raised its forecast of global growth this year, driven by expansion in the US and the UK. The group said the economy will grow 3.7%, compared to an October estimate of 3.6%.
In Germany, the ZEW Centre for European Economic Research in Mannheim's index of investor and analyst expectations, which predicts economic developments six months in advance, declined to 61.7 in January from a seven-year high of 62 in December. Economists had pencilled in a reading of 64.
The fall was "a bit of a surprise given the upward momentum of recent months", according to Jonathan Loynes, Chief European Economist at Capital Economics.
"But it reverses only a fraction of December's gain and leaves the index still within a whisker of its highest level since April 2006," he added.
ECB may raise Eurozone outlook, says Nowotny
The European Central Bank (ECB) could increase its forecasts for Eurozone economic growth, according to Ewald Nowotny today.
The ECB policymaker said growth has been supported by economies of Germany and Austria and a quicker than expected pick up in Spain and Ireland.
He also said that inflation or deflation was unlikely any time soon as the ECB keeps monetary policy loose.
In another lift to markets today, the People's Bank of China injected more than 255bn yuan into the country's large commercial banks. The central bank said the move is aimed at ensuring the stability of the monetary market ahead of the Lunar New Year holiday later this month.
Unilever, Alstom
Unilever advanced after the consumer goods giant reported a rise in fourth-quarter underlying sales that exceeded estimates.
Alstom was down after the French maker of trains and power equipment lowered its operating-margins forecast.
SABMiller declined after the brewer's third quarter organic beer volume rose less than analyst had expected.
Shares in mining stocks, including Fresnillo and Randgold, made strong gains as metal prices rose.
Wirecard rallied after the provider of software for electronic payments reported a 22% jump in sales in 2013 and predicted strong growth in markets this year.
The euro rose 0.08% to $1.3564.
Brent crude futures increased $0.802 to $107.210 per barrel, according to the ICE. |
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| | US Market Report | | US open: Stocks edge higher as IMF ups growth forecasts - Wall Street re-opens after three-day weekend
- Earnings from Verizon, J&J, Delta in focus
- IMF raises 2014 US GDP forecasts, lowers 2015
Dow Jones: -0.22%
Nasdaq: 0.37%
S&P 500: 0.18%
US stocks opened broadly higher on Tuesday morning as traders returned to their desks in a positive mood after a three-day weekend.
It was a quiet day for financial markets worldwide on Monday given that Wall Street was closed for the Martin Luther King Jr. Day holiday.
However, while US markets re-opened as usual on Tuesday volumes "may still be lower than normal as there's still a lack of data being released", according to Alpari UK Market Analyst, Craig Erlam. "In fact, we have no significant economic releases from the US until Thursday, leaving traders with only earnings to focus on," he said.
Lifting sentiment this morning was the International Monetary Fund (IMF) which raised its forecasts for US growth in 2014 as it revised its estimates for global economic expansion slightly higher. US gross domestic product (GDP) is now expected to rise by 2.8% in 2014, up from a previous estimate of 2.6% in October.
However, in 2015 it is only expected to expand by 3%, versus a previous forecast for growth of 3.4%.
In another boost to stocks, credit conditions in China eased overnight after the People's Bank of China injected more than 255bn yuan into the country's large commercial banks. The central bank said the move is aimed at ensuring the stability of the monetary market ahead of the Lunar New Year holiday later this month.
Verizon falls despite Q4 beat
Telecoms giant Verizon Communications erased early gains to fall into the red despite posting fourth-quarter profits that beat analysts' estimates. Earnings per share were $1.76 in the fourth quarter, compared with a loss of $1.48 a year ago on revenues that rose 3.4% to $31.1bn.
Investors were also reacting to the company's announcement that it has purchased Intel's cloud TV business, Intel Media.
Healthcare and consumer products titan Johnson & Johnson also underwhelmed with profits that beat expectations, with earnings rising 37% year-on-year. Profit forecasts for 2014, however, came in below estimates.
Delta Air rose to a 52-week high after surpassing analysts' forecasts with fourth-quarter earnings and giving an upbeat outlook for the current quarter.
Plane maker Boeing gained after receiving an order fromGeneral Electric for 40 planes worth $4bn. GE, meanwhile, was in focus on reports that it is among three potential bidders for oil field services firm Expro.
Smartphone maker BlackBerry surged early on after the US Department of Defense revealed that it will use 80,000 of its devices in a new programme.
Alcoa rose after JPMorgan raised its rating on the US aluminium producer to 'overweight' from 'neutral'. Meanwhile, SolarCity declined after the same bank downgraded the stock to 'neutral' from 'overweight'. |
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| | Broker Tips | | Broker tips: BHP Billiton, SABMiller, African Barrick, Bookmakers UBS has maintained its 'buy' rating for BHP Billiton ahead of the mining giant's fourth-quarter production report due out on Wednesday.
"We are attracted to BHP as it is a high-quality, low-risk producer with growth options and it has a good track record of returning cash to shareholders. We believe capital management is possible over the next 12 months," UBS said.
Numis Securities has reiterated its 'add' rating for beverages group SABMiller but has cut its forecasts slightly after currency headwinds weighed on third-quarter results.
The broker said that the consensus forecasts may drift down marginally following Tuesday's statement. Nevertheless, analysts said they remain positive on SABMiller's medium-term growth opportunities in emerging markets, its turnaround potential in Europe and for "further value-creating M&A".
Canaccord Genuity has kept its 'hold' rating for Tanzania-focused gold miner African Barrick Gold (ABG) despite better-than-expected production results for 2013, saying it sees the likelihood of impairment charges for one of its major projects.
While results from North Mara and Buzwagi were better than forecasts, grades and throughput at Bulyanhulu were lower than expected, Canaccord said, adding that a reduction in reserve estimates and impairments are now likely. The broker has kept its 180p target for ABG's shares, based on a price-to-net asset value (NAV) ratio of 0.97. The stock, however, is currently-trading at 1.26 times NAV.
JPMorgan Cazenove has maintained its 'underweight' position on High Street bookies Ladbrokes and William Hill on the back of concerns about gaming machine restrictions.
The bank said that even modest restrictions could drive "material downgrades and significant shop closures", which poses a big risk to Ladbrokes in particular with 39% possible downside seen to earnings forecasts for 2015. 13% downside is possible at William Hill. | | |
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