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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 lower for fourth day straight, Aberdeen drops - Markets flat after heavy falls on Thursday
- Carney signals end to forward guidance
- Aberdeen suffers from Morgan Stanley downgrade
techMARK 2,828.92 +0.04%
FTSE 100 6,760.54 -0.19%
FTSE 250 15,950.23 -0.19%
UK markets opened lower on Friday morning as traders headed into the weekend in a cautious fashion with sentiment still fragile after some heavy falls the previous session.
Broker downgrades were putting pressure on a number of heavyweight stocks in London today, with Aberdeen, easyJet and Whitbread trading in the red.
The FTSE 100 was trading 0.2% lower at 6,761 in early trading, as it looks set to extend its losing streak to four days.
Stocks across the globe sunk sharply on Thursday after data showed that the manufacturing sector in China had slipped into contraction in January and a barrage of economic indicators from the States came in mixed.
The figures sent the Dow Jones Industrial Average in New York to its lowest level in five weeks yesterday evening, while markets in Asia fell sharply overnight with the Nikkei 225 dropping as much as 2%.
Closer to home, investors were digesting comments made by Bank of England (BoE) Governor Mark Carney who signalled at the World Economic Forum in Davos that his forward guidance plan - which links monetary policy to the unemployment rate - could be scrapped.
Following the sharp drop in the jobless rate registered earlier this week which fell from 7.4% to 7.1% in the three months to November, Carney said that the UK economy was "in a different place" from where it was last summer. However, he stressed that the BoE still does not intend to tighten policy "immediately".
Markets are now awaiting a speech from the central banker later today to outline his plans fully.
Aberdeen, easyJet, Whitbread hit by downgrades
Fund manager Aberdeen fell sharply this morning after receiving a ratings downgrade by Morgan Stanley to 'underweight'. The bank said that a deteriorating fund performance compounds challenging emerging-market fundamentals, "increasing the risk of negative revisions and further multiple de-rating at Aberdeen".
Budget airline easyJet continued to fall after its first-quarter update yesterday in which it said that losses in the first half would be worse than last year. HSBC lowered its rating on the company today to 'underweight'.
Cafe, restaurant and hotel owner Whitbread was also down after Citigroup cut the stock to 'neutral'.
Packaging firm Rexam was a high riser this morning as investors topped up ahead of its fourth-quarter statement due out next week.
Financial services company Close Brothers Group gained after saying it expects a "strong performance" in the first half of the financial year on the back of growth in its Banking business. |
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| FTSE 100 - Risers
BAE Systems (BA.) 446.00p +2.01%
Rexam (REX) 509.50p +1.70%
TUI Travel (TT.) 424.40p +1.05%
Randgold Resources Ltd. (RRS) 4,228.00p +0.96%
Sports Direct International (SPD) 712.50p +0.92%
ARM Holdings (ARM) 981.50p +0.87%
Rolls-Royce Holdings (RR.) 1,214.00p +0.83%
Royal Bank of Scotland Group (RBS) 347.20p +0.70%
BP (BP.) 491.35p +0.66%
British Sky Broadcasting Group (BSY) 859.50p +0.59%
FTSE 100 - Fallers
Aberdeen Asset Management (ADN) 401.50p -4.72%
Compass Group (CPG) 940.50p -1.93%
Pearson (PSON) 1,169.00p -1.85%
Marks & Spencer Group (MKS) 484.20p -1.82%
SABMiller (SAB) 2,924.50p -1.80%
International Consolidated Airlines Group SA (CDI) (IAG) 420.60p -1.59%
BHP Billiton (BLT) 1,802.00p -1.23%
Aggreko (AGK) 1,654.00p -1.19%
Glencore Xstrata (GLEN) 328.75p -1.01%
Experian (EXPN) 1,113.00p -0.98%
FTSE 250 - Risers
Close Brothers Group (CBG) 1,369.00p +2.47%
Atkins (WS) (ATK) 1,392.00p +1.46%
Galliford Try (GFRD) 1,187.00p +1.37%
BTG (BTG) 612.00p +1.32%
Ted Baker (TED) 2,130.00p +1.24%
Restaurant Group (RTN) 632.50p +1.12%
Alent (ALNT) 325.00p +1.06%
Crest Nicholson Holdings (CRST) 368.50p +1.01%
BH Macro Ltd. EUR Shares (BHME) € 19.49 +0.93%
KCOM Group (KCOM) 98.40p +0.92%
FTSE 250 - Fallers
Ophir Energy (OPHR) 284.80p -3.13%
Ashmore Group (ASHM) 333.40p -3.08%
Dairy Crest Group (DCG) 526.00p -2.95%
Imagination Technologies Group (IMG) 187.50p -2.85%
Cairn Energy (CNE) 255.30p -2.59%
Synthomer (SYNT) 264.60p -2.11%
Bank of Georgia Holdings (BGEO) 2,311.00p -1.91%
Perform Group (PER) 237.00p -1.86%
Fidessa Group (FDSA) 2,403.00p -1.72% |
| | UK Event Calendar | | Q4
Samsung Electronics Co. Ltd (ATT) GDR (Reg S)
TRADING ANNOUNCEMENTS
Henry Boot
IMSs
Workspace Group
AGMs
Artilium, Avacta Group, Henderson European Focus Trust, Topps Tiles
EGMs
Dating International Power Generation Co Ltd.
FINAL DIVIDEND PAYMENT DATE
Aberdeen Asset Management, Cambria Asset Management, Hargreave Hale AIM VCT 1, Proactis Holdings
INTERIM DIVIDEND PAYMENT DATE
Burberry Group, Cranswick, Ensor Holdings, Greene King, Halfords Group, Micro Focus International, RPC Group, Vertu Motors
UK ECONOMIC ANNOUNCEMENTS
BBA Mortgage lending figures (09:30)
Speech Governor Carney at Davos (12:05)
Moody's review of UK rating
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Speech ECB President Mario Draghi (17:00) |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks fall as Draghi and Carney attend Davos - ECB and BoE heads at Davos
- Carney sees no need to raise interest rates
- Moody's reviews UK rating
FTSE 100: -0.03%
DAX: -0.03%
CAC 40: -0.14%
FTSE MIB: -0.19%
IBEX 35: -1.56%
Stoxx 600: -0.14%
European stocks slipped ahead of words from the heads of the European Central Bank (ECB) and Bank of England (BoE) at the World Economic Forum.
ECB President Mario Draghi will participate in panel debate Global Economic Outlook 2014 at the forum in Davos, Switzerland, today.
Earlier this month Draghi warned that risks still remain to the Eurozone recovery, including political, economic and financial. He said that the recovery was taking place but is "weak and modest", meaning that the ECB will need to maintain an accommodative stance "as long as needed".
He will attend Davos along with BoE Governor Mark Carney, who told the BBC yesterday that he saw "no immediate need to increase interest rates" despite a faster-than-expected fall in unemployment.
The Bank has vowed to keep interest rates at the record low of 0.5% at least until the jobless rate drops to 7% under its so-called forward guidance.
Unemployment declined unexpectedly to 7.1% in the three months to November, down from 7.4% in the previous three months, adding pressure on the BoE to change its guidance.
Ahead of his speech at Davos, Carney told the BBC: "It's really about overall conditions in the labour market, and that's what affects it."
"We wouldn't want to detract from that focus […] by unnecessarily focussing too much on one indicator."
In other UK news, Moody's will release a review of its UK rating. Analysts at Investec said: "At this stage we see no change from the current Aa1, stable outlook."
Celesio, Ziggo
Celesio advanced as McKesson Corp. agreed to buy majority owner Franz Hanile Cie.'s entire stake in the German healthcare and pharmaceutical company.
Ziggo declined after reporting fourth-quarter revenue that missed analysts' estimates and saying that it will refrain from declaring a final dividend for now as acquisition talks with Liberty Global continue.
Renault rallied following reports that the car-maker will merge its global production with Nissan Motor Co, saving more than 400bn yen in annual costs.
Novartis slumped as the drugmaker said it will seek another review of Serelaxin after the European Medicines Agency's Committee for Medicinal Products for Human Use recommended against its approval for the treatment of acute heart failure.
The euro fell 0.09% to $1.3683.
Brent crude futures rose $0.074 to $107.660 per barrel, according to data from the ICE. |
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| | US Market Report | | US close: Weak China data, mixed US figures sink markets - China data sparks slowdown concerns
- US data comes in mixed, manufacturing PMI eases
- eBay gains, Netflix surge to ease slide on Nasdaq
Dow Jones: -1.08%
Nasdaq: -0.57%
S&P 500: -0.91%
US stocks sunk sharply on Thursday with the Dow Jones Industrial Average finishing at its lowest level in five weeks as markets reacted to weak data from China and mixed economic indicators from closer to home.
The Dow and S&P 500 benchmarks both finished around 1% lower, though decent gains from eBay and a surge by Netflix helped to ease the slide on the tech-heavy Nasdaq.
Nevertheless, the three US indices followed their European counterparts lower from the off on Thursday after the HSBC/Markit purchasing managers' index (PMI) for China's manufacturing sector slipped to 49.6 in January from 50.5 the month before.
While the month-on-month fall was only modest, it did mark the first contraction in the sector - reflected by any figure below 50 - for the first time in six months, reinforcing recent data which has pointed to a slowdown for the Asian powerhouse.
"A deterioration in PMIs was expected but markets were caught by surprised by the drop into contraction zone," said Market Strategist Ishaq Siddiqi from ETX Capital.
"Some are now fearing that 10-year economic revamp to gear the country to one based on domestic consumption rather than one reliant on debt and infrastructure spending, may take longer to bear fruit," he said.
US data comes in mixed
Markit's preliminary US manufacturing PMI fell to a three-month low of 53.7 in January, down from 55 in December. Analysts had expected it to hold steady.
Existing-home sales rose by a lower-than-expected 1% in December, rebounding after a 5.9% decline the month before.
Jobless claims beat forecasts, rising just 1,000 to 326,000 last week but below the 330,000 expected by the market.
The Federal Reserve bank of Chicago's National Activity Index unexpectedly dropped to 0.16 in January from 0.69 in December.
The House Price Index rose by just 0.1% in November, compared with a 0.5% rise the month before and the 0.4% gain expected.
The mixed data added to more uncertainty surrounding monetary policy ahead of the Federal Open Market Committee's meeting next week, with markets waiting to see whether policymakers will continue to scale back their asset purchase programme.
Resource stocks, Noble and Lockheed Martin fall
Commodity producers such as Alcoa and Cliffs Natural Resources declined following a fall in prices for industrial metals after manufacturing data from China disappointed.
The share price of Noble Corp fell sharply despite the offshore drilling contractor reporting a 36% jump in fourth-quarter profits to $174.1m, in line with analysts' estimates. Sentiment may have been dampened by comments from the Chief Executive of UK-listed peer Petrofac warned that the oil industry is "facing a huge amount of cost pressure".
Lockheed Martin Corp. slumped as the government's biggest contractor posted a 14% dip in fourth-quarter profit, reflecting cuts to federal government spending.
eBay gained as activist investor Carl Icahn proposed spinning-off the company's PayPal unit. The suggestion came as the online marketplace reported a rise in fourth-quarter earnings that beat expectations.
Netflix surged by over 16% as the subscription movie and TV series provider forecast customer growth ahead of analysts' estimates.
Following a heavy fall the day before after its quarterly earnings disappointed, IBM edged higher after signing a deal with Lenovo to sell its low-end server division for $2.3bn.
S&P 500 - Risers
Netflix Inc. (NFLX) $388.72 +16.48%
F5 Networks Inc. (FFIV) $102.49 +5.14%
Union Pacific Corp. (UNP) $174.12 +3.34%
Newmont Mining Corp. (NEM) $25.17 +3.20%
Allegheny Technologies Inc. (ATI) $33.02 +3.16%
Vulcan Materials Co. (VMC) $61.31 +2.87%
Gen Dynamics Corp. (GD) $101.55 +1.91%
McKesson Corp. (MCK) $172.37 +1.59%
Whirlpool Corp. (WHR) $153.33 +1.56%
Biogen Idec Inc. (BIIB) $314.96 +1.42%
S&P 500 - Fallers
Noble Corporation plc (NE) $33.13 -8.61%
Janus Capital Group Inc. (JNS) $12.13 -6.62%
Diamond Offshore Drilling Inc. (DO) $51.88 -5.24%
SLM Corp. (SLM) $23.33 -4.46%
Johnson Controls Inc. (JCI) $49.30 -4.38%
Ensco Plc. (ESV) $52.61 -4.36%
Cliffs Natural Resources Inc. (CLF) $20.29 -4.25%
Lockheed Martin Corp. (LMT) $150.49 -3.93%
Pitney Bowes Inc. (PBI) $22.38 -3.66%
Precision Castparts Corp. (PCP) $261.10 -3.54%
Dow Jones I.A - Risers
AT&T Inc. (T) $33.80 +1.38%
Verizon Communications Inc. (VZ) $47.86 +1.12%
Merck & Co. Inc. (MRK) $51.60 +0.49%
McDonald's Corp. (MCD) $95.32 +0.46%
Microsoft Corp. (MSFT) $36.06 +0.35%
International Business Machines Corp. (IBM) $182.73 +0.26%
Home Depot Inc. (HD) $80.24 +0.05%
Dow Jones I.A - Fallers
American Express Co. (AXP) $89.17 -2.15%
Boeing Co. (BA) $141.31 -2.12%
Visa Inc. (V) $228.25 -2.03%
E.I. du Pont de Nemours and Co. (DD) $61.75 -2.02%
JP Morgan Chase & Co. (JPM) $56.47 -1.94%
Travelers Company Inc. (TRV) $83.07 -1.76%
Chevron Corp. (CVX) $118.39 -1.69%
Goldman Sachs Group Inc. (GS) $170.75 -1.69%
Johnson & Johnson (JNJ) $92.74 -1.68%
Coca-Cola Co. (KO) $39.24 -1.65%
Nasdaq 100 - Risers
Netflix Inc. (NFLX) $388.72 +16.48%
F5 Networks Inc. (FFIV) $102.49 +5.14%
Equinix Inc. (EQIX) $182.64 +2.05%
Tesla Motors Inc (TSLA) $181.50 +1.65%
Catamaran Corp (CTRX) $50.19 +1.56%
Sba Communications Corp. (SBAC) $92.78 +1.43%
Biogen Idec Inc. (BIIB) $314.96 +1.42%
eBay Inc. (EBAY) $54.94 +0.97%
NetApp Inc. (NTAP) $45.85 +0.88%
Akamai Technologies Inc. (AKAM) $49.61 +0.87%
Nasdaq 100 - Fallers
Baidu Inc. (BIDU) $163.58 -6.22%
Citrix Systems Inc. (CTXS) $59.67 -2.50%
Dish Network Corp. (DISH) $55.31 -2.33%
DIRECTV (DTV) $71.32 -2.25%
Alexion Pharmaceuticals Inc. (ALXN) $137.94 -2.00%
Cognizant Technology Solutions Corp. (CTSH) $98.55 -1.98%
Yahoo! Inc. (YHOO) $39.39 -1.97%
CH Robinson Worldwide Inc (CHRW) $59.05 -1.96%
Avago Technologies Ltd. (AVGO) $56.05 -1.92%
Liberty Global plc Series A (LBTYA) $85.53 -1.92% |
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| | Newspaper Round Up | | Friday newspaper round-up: BoE, SSE, Microsoft... Mark Carney, Bank of England governor, has signalled that his policy of linking interest rates to the unemployment rate will be buried less than six months after its birth. He said the British economy was "in a different place" from last summer. Mr Carney flagged the U-turn at the World Economic Forum in Davos, letting the news emerge in a series of television interviews where he said that unemployment alone would no longer guide policy. - Financial Times
SSE reignited the simmering row over high energy prices when it said yesterday that it was on course for a substantial increase in profits to more than £1.5bn and re-issued a call for more of its social and environmental burdens to be transferred to the taxpayer. The company, fomerly known as Scottish and Southern Energy, said it expected to announce at its financial year end to 31 March that it has increased profits by 8.8% and will reward shareholders with a higher dividend. - The Guardian
Microsoft beat expectations in its second quarter on the back of strong holiday sales of consumer devices like the Xbox and business demand for cloud services that helped it outpace the rest of the enterprise market. The news eased some of Wall Street's fears that last year's move by outgoing chief executive Steve Ballmer to push the company deeper into consumer hardware and online services would dent its profit margins. - Financial Times
The head of JPMorgan was accused of making legally "dangerous" comments after he blasted $13bn of recent settlements with the US government as "unfair". Jamie Dimon made it clear he felt that the bank had been poorly treated over infringements ranging from interest rate rigging to mis-selling mortgage securities and ignoring warnings over Bernard Madoff's Ponzi scheme. - The Times
George Osborne has told big business to "stop apologising" and start demonstrating its value to society to win back the public's trust. Companies should not expect politicians to speak up for UK plc but should get on the front foot themselves, the Chancellor told a private breakfast of business leaders at the World Economic Forum's meeting in Davos. His call to arms follows a series of scandals that have left the reputation of British industry in tatters. - The Times
Poundland has unveiled record Christmas sales to whet investors appetites ahead of a potential £800m float on the London Stock Exchange. The discount retailer, which sells products ranging from biscuits to dog food and washing-up liquid, said total sales increased more than 12% to nearly £350m in the three months to the end of December. - The Guardian. | | |
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