| | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London close: UK markets hit two-month high as banks gain - FTSE 100 at highest level since November 4th
- Eurozone inflation ramps up interest-rate speculation
- Banks helped by funding data
- IAG reports strong December traffic figures
techMARK 2,789.43 -0.10%
FTSE 100 6,755.45 +0.37%
FTSE 250 16,069.19 +0.12%
UK markets finished with decent gains on Tuesday as a decent performance by IAG and a host of banking stocks lifted the FTSE 100 to its highest level in over two months.
A strong start on Wall Street also boosted stocks after the US trade deficit unexpectedly narrowed to a four-year low, while investors this side of the Atlantic welcomed an improvements in the Eurozone.
A return to the debt markets for Ireland and lower unemployment figures for Germany were taken as signs that a recovery in the Eurozone is beginning to take hold. This gave a boost to sentiment that was felt in both bond and equity markets today.
The FTSE 100 finished 24.72 points higher at 6,755.45, its highest closing level since November 4th.
After a slow start this morning, the index pushed into positive territory as an unexpected dip in Eurozone inflation from 0.9% to 0.8% ramped up speculation ahead of a policy meeting in the region later this week.
The fall, to further below the European Central Bank's (ECB) target of 2%, "will add to concerns that the region could suffer from a bout of deflation and increase the pressure on the ECB to take more action to support the economy", said Ben May, European Economist at Capital Economics.
"While the ECB may refrain from providing additional policy support on Thursday, we expect further action in the months ahead," May added.
It's set to be a busy end of the week for financial markets with minutes of the latest Federal Reserve meeting due out on Wednesday, policy meetings in Europe and the UK on Thursday, and the all-important US jobs report due Friday.
Banks gain, IAG jumps after traffic figures
Banking stocks were the best performers on Tuesday after Bank of England data showed that funding conditions for had improved in the fourth quarter of 2013. Lloyds has outperformed in recent sessions on increasing speculation that the company may restart dividend payments when it announces its 2013 results in March. HSBC, Royal Bank of Scotland and Barclays were also in demand.
Airline group IAG raced ahead in afternoon trade after saying that group traffic increased by an impressive 10.6% year-on-year in December, helped by a first-time contribution from Vueling and strong growth at British Airways. Sector peer easyJet also finished higher after saying it carried 3.5% more passengers than a year ago in December.
Construction equipment rental firm Ashtead was on the up after broker Jefferies hailed its growth potential in the US. Media groups ITV and BSkyB were also advancing after Jefferies upgraded the stocks to 'buy' and 'hold', respectively.
Severn Trent, meanwhile, was hit by a downgrade by JPMorgan Cazenove to 'underweight' ahead of the upcoming regulatory review period.
Precious metal miners Fresnillo and Randgold Resources were trading in the red as the price of gold and silver declined.
Retailer Dunelm was a heavy faller today despite reporting that it returned to like-for-like growth in the second quarter following a tough start to the year. Analysts at broker Prime Markets warned that it sees a "period of consolidation for the shares" after a decent run over the last year. |
| | The Share Centre: | | Cheaper fund investing has arrived at The Share Centre.
We don't believe it's fair to charge you extra just for holding funds.
So we don't. Find out more.
Capital at risk. Click Here |
|
FTSE 100 - Risers
International Consolidated Airlines Group SA (CDI) (IAG) 428.20p +3.43%
Lloyds Banking Group (LLOY) 82.51p +3.00%
Coca-Cola HBC AG (CDI) (CCH) 1,800.00p +2.62%
Aviva (AV.) 454.20p +2.53%
HSBC Holdings (HSBA) 675.80p +2.39%
Old Mutual (OML) 193.30p +1.84%
Ashtead Group (AHT) 804.00p +1.77%
Royal Bank of Scotland Group (RBS) 350.40p +1.77%
Standard Life (SL.) 365.80p +1.58%
Land Securities Group (LAND) 976.50p +1.56%
FTSE 100 - Fallers
Fresnillo (FRES) 705.50p -4.08%
Severn Trent (SVT) 1,667.00p -2.17%
ARM Holdings (ARM) 1,055.00p -2.13%
Rexam (REX) 505.50p -1.94%
Royal Mail (RMG) 561.00p -1.92%
Burberry Group (BRBY) 1,480.00p -1.66%
Experian (EXPN) 1,102.00p -1.61%
Rio Tinto (RIO) 3,215.00p -1.56%
Centrica (CNA) 337.40p -1.49%
Hargreaves Lansdown (HL.) 1,470.00p -1.41%
FTSE 250 - Risers
Bank of Georgia Holdings (BGEO) 2,590.00p +5.71%
Enterprise Inns (ETI) 157.20p +4.38%
Pace (PIC) 332.70p +3.87%
esure Group (ESUR) 259.40p +3.26%
Diploma (DPLM) 744.50p +2.97%
IP Group (IPO) 174.00p +2.96%
Bodycote (BOY) 708.00p +2.83%
Atkins (WS) (ATK) 1,465.00p +2.81%
Keller Group (KLR) 1,222.00p +2.43%
Greencore Group (GNC) 229.80p +2.36%
FTSE 250 - Fallers
Dunelm Group (DNLM) 942.50p -3.73%
BBA Aviation (BBA) 311.70p -3.44%
Bwin.party Digital Entertainment (BPTY) 120.70p -3.44%
Renishaw (RSW) 2,045.00p -3.31%
Centamin (DI) (CEY) 45.09p -3.14%
Kenmare Resources (KMR) 19.16p -2.99%
Imagination Technologies Group (IMG) 175.00p -2.56%
Domino's Pizza Group (DOM) 503.00p -2.42%
Elementis (ELM) 263.00p -2.30%
Ferrexpo (FXPO) 179.90p -2.12% |
| | Learn to trade the most liquid financial market in the world | | At our free workshop we will give you a proven strategy for you to apply straight away. Also for simply signing up you will receive a free 50 page e-book from a publish FX trader. Book your place now |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks rise as German unemployment falls - German unemployment drops
- Eurozone inflation falls
- BoE reveals easing funding conditions for UK banks
- High demand for Irish post-bailout bond sale
FTSE 100: 0.37%
DAX: 0.83%
CAC 40: 0.83%
FTSE MIB: 1.22%
IBEX 35: 2.93%
Stoxx 600: 0.74%
European stocks finished higher after German unemployment fell the most in two years.
German unemployment dropped by a seasonally-adjusted 15,000 last month, ahead of the consensus forecast for a drop of 2,000. It compares to November's 9,000 increase.
The adjusted jobless rate remained unchanged at 6.9%, as predicted by analysts.
Another report showed the Eurozone consumer price index (CPI) dipped to 0.8% in December from 0.9% in November, in line with forecasts.
Falling inflation prompted the European Central Bank (ECB) to cut interest rates to a record low of 0.25% late last year. The ECB is targeting inflation of close to but below 2%.
"December's fall in Eurozone CPI inflation will add to concerns that the region could suffer from a bout of deflation and increase the pressure on the ECB to take more action to support the economy," according to Capital Economics.
The ECB will on Thursday reveal its latest interest rate decision and is expected to keep its policy on hold.
Funding conditions ease in Q4 for UK banks
UK banks and building societies saw total funding volumes fall significantly in the three months to early December, according to the Bank of England´s (BoE) latest Bank Liabilities Survey.
The central bank said funding volumes are important as any changes to the price, quantity and composition of banks' liabilities may affect their willingness or ability to lend, and the price of lending.
The report showed lenders´ retail funding costs fell in the fourth quarter and were expected to fall again noticeably in the first quarter.
Banks' issuance of long-term wholesale debt was positively impacted by a number of factors during the period, including improved market liquidity and non-price terms, the BoE explained.
For Investec analyst Ian Gordon, the survey results were part of the explanation behind Tuesday´s strong gains in the shares of UK banks such as
Lloyds and RBS, particularly the former.
Ireland has experienced strong demand for the country's first debt sale since exiting its bailout from the European Union and International Monetary Fund last month.
The nation had intended to cap the size of the deal at about €3.5bn but an overflowing order book of more than €13bn for its 10-year-bond sale has allowed bankers to tighten the pricing of the deal.
The news provided a boost to banks, which stormed to the top of Stoxx 600 index today. Lloyds Banking Group and Royal Bank of Scotland were among the big risers.
Demand for Irish bond sale
Ireland has experienced strong demand for the country's first debt sale since exiting its bailout from the European Union and International Monetary Fund last month.
The nation had intended to cap the size of the deal at about €3.5bn but an overflowing order book of more than €13bn for its 10-year-bond sale has allowed bankers to tighten the pricing of the deal.
"Strong demand for the Irish bond sale suggests confidence returns to Ireland and perhaps other peripheral countries as well," said Michael Leister, a senior fixed-income strategist at Commerzbank AG in London.
"Strong secondary market performance also points to a similar picture. This will bode well for Portugal, which is likely to follow with a new bond this month."
Vestas Wind, Hugo Boss
A.P. Moeller-Maersk gained as the owner of the world's largest container shipping line said it will sell stakes in its supermarket and department-store units.
Vestas Wind Systems continued to rally after it upgraded its estimate for 2013 free cash flow.
Volvo jumped as DNB ASA upgraded the shares to 'sell' from 'neutral'.
Hugo Boss declined after Societe Generale downgraded the shares to 'hold' from 'buy'.
Swedish Match slumped after Citigroup advised investors to sell the shares.
The euro fell 0.08% to $1.3618.
Brent crude futures rose $0.772 to $107.560 per barrel, according to the ICE. |
| | 40% Returns from unusual but proven industry | | Download your FREE Investment Guide here. |
| | US Market Report | | US open: Stocks advance as trade deficit drops to four-year low - US trade deficit falls to four-year low
- Economic data, Q4 earnings season ahead
- Yellen confirmed as Fed Chief
Dow Jones: 0.71%
Nasdaq: 0.73%
S&P 500: 0.59%
US stocks rose strongly after the opening bell on Wall Street on Tuesday, helped by data which showed that the trade deficit unexpectedly narrowed in November.
The S&P 500 rallied after three straight days of losses – its longest losing streak to start a year for the index since 2005.
Things are starting to ramp up on financial markets after a quiet few weeks over the festive season, with fourth-quarter earnings season kicking off with Alcoa's results on Thursday night.
Meanwhile, minutes of the Federal Reserve's latest policy meeting are due out tomorrow, along with the ADP jobs data, followed by the all-important US employment report for December which will be released on Friday.
As for today, the Commerce Department revealed a 0.9% month-on-month rise in exports to $194.9bn – the highest level in history – and a 1.4% fall in imports to $229.1bn, the latter helped the seasonally-adjusted trade deficit to fall by a whopping 13% $34.3bn in November.
This was down from a revised $39.3bn in October. The consensus estimate had been for a wider trade gap of $40bn.
"The trade deficit unexpectedly shrank to a four-year low […] suggesting that fourth-quarter gross domestic product growth could turn out to be above 3% annualised," said Paul Ashworth, Chief US Economist from Capital Economics.
In other news, it was revealed that Janet Yellen won US Senate confirmation to be approved as the new Federal Reserve Chair, replacing Ben Bernanke who leaves his role at the end of the month.
Palo Alto gains on acquisition of Morta Security
Palo Alto advanced after the computer security company announced the first acquisition since its July 2012 initial public offering. It is buying anti-hacking company Morta Security Inc. for an undisclosed amount.
Convergys Corp. jumped after saying it will buy Stream Global Services for $820m.
Netflix declined after Morgan Stanley cut its rating on the stock to 'underweight' from 'equal weight'.
LinkedIn slumped as Bank of America downgraded the shares to 'neutral' from 'buy'. |
| | 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 |
| | Broker Tips | | Broker tips: Ashtead, Aberdeen, Dunelm Jefferies has raised its target for equipment rental firm Ashtead from 880p to 900p and kept a 'buy' recommendation, citing the company's significant growth potential in the US.
"With just 6% share of fragmented $33bn US equipment rental market, we believe by opening 50 additional branches per annum, Sunbelt [Ashtead's US division] could its double its market share to 12% in four to six years, self-financed by robust cash flows, whilst maintaining a net debt-to-[operating profit ratio] below 2.0, with progressive shareholder dividends," said Equity Analyst Justin Jordan.
Canaccord Genuity has lifted its target for fund manager Aberdeen from 520p to 586p and kept a 'buy' rating, saying that growth is expected to return within Scottish Widows Investment Partnership (SWIP).
While integration costs are likely to impact earnings accretion for Aberdeen in the year ending September 2014, Canaccord said that the shares are trading at just 12 times estimates earnings for the year ending September 2015. The broker said this "looks cheap" compared with the wider sector.
Numis Securities reiterated its 'add' rating and 1,000p target for homeware retailer Dunelm after the company swung back to like-for-like (LFL) sales growth in the second quarter.
The broker said: "We leave our full-year profit before tax estimate [£116.8m] unchanged, and believe that the premium valuation (trading at 20.8 times prospective earnings) is justified by the visibility of the growth story, the quality of the customer proposition, and the strong returns metrics." | | |
New ADVFN Service - FREE Reports Get your free report on Isa's, Investment Trusts, Funds,
Sipps Travel and Cars - FREE and Easy service CLICK HERE
To advertise in the Euro Markets Bulletin please contact patrick@advfn.co.uk |
| | | | | | | To unsubscribe from this news bulletin or edit your mailing list settings click here. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +44 (0) 207 0700 961. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49 | |
No comments:
Post a Comment