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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | FTSE lifted by Eurozone GDP and miners - Eurozone GDP beats expectations
- Fresnillo in top spot
- UK construction output rises 0.2 per cent in Q4
techMARK 2,831.77 +0.28%
FTSE 100 6,663.62 +0.06%
FTSE 250 16,110.62 +0.51%
The FTSE closed marginally higher today, lifted by figures which revealed better-than-expected growth across the Eurozone and a decent performance from the mining sector.
The index closed up 4.20 points at 6,663.62, marking a gain of 91.94 points on the week.
Fresnillo was the top performer as the precious metals miners edged closer to lifting an explosives ban currently in place in Mexico, while a strong performance by the gold price also helped push the sector as a whole higher.
Over in the Eurozone, Eurostat this morning reported that gross domestic product (GDP) for the region expanded by 0.3% over the fourth quarter, accelerating from the 0.1% growth registered in the third quarter. Figures beat the consensus forecast for a GDP expansion of 0.2%.
“Activity continues to recover in the Eurozone,” said Chief Market Strategist Brenda Kelly from IG. “While the political shenanigans in Italy are providing a Groundhog Day backdrop to proceedings, investors are choosing to focus on the better-than-expected GDP numbers from France, Holland and Germany.”
Which? declares UK energy market "broken"
Back in the UK, consumer group Which? has called for radical reforms to the "broken" UK energy market after it was found that nearly 5.6m customers complained about the so-called ‘Big Six’ energy providers last year.
Meanwhile, construction output rose 0.2% in the fourth quarter, driven by new house builds, the Office for National Statistics (ONS) said.
In other news, data from LSL Property Services/Acadata revealed the average house price in the UK rose to £241,101 last month, up 5.2% year-on-year, and 0.6% month-on-month.
Elsewhere, the new Jaguar Land Rover engine factory will employ 1,400 workers, it was revealed today.
Mondi lifted by broker comments
Mondi rose strongly following Credit Suisse's decision to reiterate its 'outperform' rating on the stock.
Shares in Petrofac received a boost today after Berenberg analysts upgraded their rating from ‘hold’ to ‘buy’ and hiked their target from 1,370p to 1,740p.
Water group Severn Trent climbed after saying its trading performance overall remained in line with its expectations and prior guidance.
Meanwhile, bottling firm Coca-Cola HBC declined after it predicted a “challenging" macroeconomic and trading environment across most of its regions in 2014.
Vodafone was also in the red after revealing it paid out £1.9bn on licences in India. The telecoms giant acquired spectrum licences in 11 telecom circles in the government's 900 megahertz (MHz) and 1800 MHz spectrum auctions.
On the second tier index, copper miner Kazakhmys surged today, extending gains made earlier this week after the Kazakh government devalued its local currency which investors hope will lead to lower costs for the firm.
Shares of Essar Energy rocketed after the company announced that all main units have resumed operation at its UK refinery. |
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| | FTSE 100 - Risers
Fresnillo (FRES) 971.50p +5.31%
Mondi (MNDI) 1,028.00p +4.95%
Petrofac Ltd. (PFC) 1,317.00p +4.11%
Antofagasta (ANTO) 938.50p +3.64%
Shire Plc (SHP) 3,219.00p +2.45%
Melrose Industries (MRO) 311.50p +2.00%
Randgold Resources Ltd. (RRS) 4,774.00p +1.86%
Glencore Xstrata (GLEN) 338.10p +1.82%
Capita (CPI) 1,050.00p +1.65%
Bunzl (BNZL) 1,453.00p +1.54%
FTSE 100 - Fallers
Coca-Cola HBC AG (CDI) (CCH) 1,553.00p -2.27%
Imperial Tobacco Group (IMT) 2,300.00p -2.17%
Sainsbury (J) (SBRY) 345.20p -1.93%
Rolls-Royce Holdings (RR.) 1,025.00p -1.91%
RSA Insurance Group (RSA) 95.85p -1.74%
Aberdeen Asset Management (ADN) 401.40p -1.67%
Vodafone Group (VOD) 218.40p -1.38%
ITV (ITV) 206.20p -1.34%
Barclays (BARC) 253.00p -1.33%
Lloyds Banking Group (LLOY) 80.45p -1.07%
FTSE 250 - Risers
Kazakhmys (KAZ) 233.90p +13.38%
Essar Energy (ESSR) 66.00p +10.00%
Diploma (DPLM) 747.00p +6.71%
Kenmare Resources (KMR) 16.90p +5.96%
Hikma Pharmaceuticals (HIK) 1,303.00p +4.74%
Rotork (ROR) 2,674.00p +4.21%
Euromoney Institutional Investor (ERM) 1,337.00p +3.88%
Polymetal International (POLY) 657.50p +3.30%
Centamin (DI) (CEY) 51.65p +2.79%
Ladbrokes (LAD) 149.70p +2.75%
FTSE 250 - Fallers
Home Retail Group (HOME) 182.00p -2.67%
Rightmove (RMV) 2,717.00p -2.16%
Riverstone Energy Limited (RSE) 910.00p -2.15%
Catlin Group Ltd. (CGL) 550.50p -2.13%
Debenhams (DEB) 74.40p -2.04%
JD Sports Fashion (JD.) 1,407.00p -1.95%
Enterprise Inns (ETI) 151.00p -1.82%
Bwin.party Digital Entertainment (BPTY) 110.30p -1.61%
Homeserve (HSV) 329.40p -1.47%
Britvic (BVIC) 723.50p -1.36% |
| | The Fundamentals of Stock Market Highs | | How to Know when the Bull Market Ends - Given that the stock market rally has now lasted nearly five years and in view of new all-time highs, many market participants are faced with the question when will there be a top at the major share indexes. After all, everybody wants to exit the market near a high and lock in their profits before the market turns downwards again. Read more. |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | European stocks rally as Eurozone GDP rises ahead of forecasts - Eurozone GDP rises more than expected
- Italy's Letta resigns
- US consumer confidence unchanged
- US industrial output falls
FTSE 100: 0.06%
DAX: 0.68%
CAC 40: 0.63%
FTSE MIB: 1.62%
IBEX 35: 0.32%
Stoxx 600: 0.56%
European stocks gained as the Eurozone’s economy grew more than expected and Italy’s Prime Minister resigned to make way for a new government.
Eurozone gross domestic product grew 0.3% from the third quarter when it rose 0.1%, surprising analysts who had predicted a 0.2% increase.
The increase was driven by a better-than-expected growth in Germany and France.
German GDP rose 0.4% from the third quarter when it increased by 0.3%, compared to estimates of 0.3%.
French GDP increased 0.3% after stagnating in the third quarter, exceeding the 0.2% consensus forecast.
“We expect Eurozone GDP to grow by 1.1% in 2014, which would be the best performance since 2011,” said Howard Archer, Chief European and UK Economist at IHS Global Insight.
The modest improvement eases pressure on the European Central Bank to introduce further stimulus measures to address falling inflation.
Consumer price inflation fell to 0.7% in January, well below the ECB’s 2% target.
Yet the ECB held back on making policy changes at last week’s meeting with President Mario Draghi saying the environment remains uncertain so he would wait for economic data in March before assessing his next move.
On another positive note for the Eurozone, exports increased 4% to €148.8bn in December, while imports climbed 1% to €134.9bn.
Letta resigns
Italian Prime Minister Enrico Letta has handed in his resignation after caving in to calls for new leadership.
President Giorgio Napolitano accepted the tender and will immediately begin formal consultations to form a new government and complete them by Saturday, according to a statement from his office.
Napolitano is expected to ask centre-left Democratic Party leader Matteo Renzi to form a government without an election.
Miners edge higher
Fresnillo led a gauge of miners higher as the price of gold and silver increased.
ThyssenKrupp advanced after the German steelmaker posted third quarter profit that exceeded analysts’ expectations.
Schindler Holding declined after the maker of elevators said annual profit fell 37% to 463m francs.
Hikma Pharmaceuticals gained after the drugmaker raised its full-year revenue growth forecast.
Investment AB Kinnevik dropped after the Swedish publicly traded investment firm said future dividend growth won’t match that of previous years.
The euro rose 0.05% to $1.3688.
Brent crude futures fell $0.185 to $108.320 per barrel, according to the ICE. |
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| | US Market Report | | US stocks mixed as industrial production falls, consumer confidence holds - Industrial productions falls 0.3 per cent
- Consumer confidence stable
- Ford gains on European sales improvement
Dow Jones: 0.07%
Nasdaq: -0.18%
S&P 500: -0.01%
US markets opened mixed on Friday as data showing a surprise contraction in domestic industrial production in January was offset by a slightly better-than-expected reading of consumer sentiment.
US industrial production declined at a 0.3% month-on-month clip last month, according to the latest numbers from the Federal Reserve. This was worse than the consensus forecast for an increase of 0.2%, as the ongoing harsh weather continues to dampen incoming economic data.
Paul Dales, Senior US Economist at Capital Economics, said that industrial production normally bounces back after a period of bad weather, as postponed orders are completed.
“With the weather having been just as severe in February, however, this may not happen until March. But it will happen eventually. After all, the fundamentals have not changed,” he said.
Other economic data out on Friday, the University of Michigan consumer confidence index for February was stable at 81.2, surprising analysts who had expected a fall to 80.2.
Meanwhile, US import prices rose by 0.1% month-on-month in January, according to the US Bureau of Labor Statistics. Versus a year ago prices were 1.5% lower however. The consensus estimate had been for a flat reading when compared to December but an annual drop of 0.7%.
Ford gains as Europe sales rise
Auto major Ford was making small gains in morning trade after European sales rose by 4% in January.
Men’s Warehouse tumbled after its acquisition target Jos.A.Bank Clothiers proposed buying the Eddie Bauer brand.
Weight Watchers International declined after fourth-quarter earnings missed estimates.
GNC Holdings slumped after issuing a 2014 earnings forecast that fell short of market expectations.
Cliff Natural Resources advanced as fourth quarter earnings beat analysts’ projections.
Stratasys gained as William Blair & Co. upgraded the shares to ‘outperform’ from ‘neutral’. |
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| | Brokers Tips | | Lloyds, Rolls-Royce, Petrofac, Ladbrokes JPMorgan Cazenove has lifted its recommendation for Lloyds Banking Group from ‘neutral’ to ‘overweight’ saying that there is upside risk to new lowered forecasts following the bank’s 2013 results.
JPMorgan said the market’s negative reaction to the results on Thursday “reflects a rebasing of expectations around legacy costs, net asset value growth and capital return”. However, these expectations “have now adjusted low enough to offer scope for positive surprise over the medium term, in our view”, the broker said.
Societe Generale has raised its view on Rolls-Royce from ‘sell’ to ‘hold’ despite the aerospace and defence group’s gloomy guidance for 2014, saying that the stock is now trading at a substantial discount to peers after its recent sell-off.
“The Rolls-Royce model is not broken by any means, and the stock looks attractive at current levels, having dropped c20% since January, but lacks a short-term catalyst for a re-rating.”
Shares in Petrofac received a boost on Friday after Berenberg analysts highlighted the stock’s “attractive" risk-reward profile, as they upgraded their rating from ‘hold’ to ‘buy’ and hiked their target from 1,370p to 1,740p.
They said that the stock is “cheap” on valuation terms, trading at just nine times earnings on consensus estimates for 2015 – “this implies an 11% discount to closest peer Saipem which we think is excessive”.
UBS has upgraded High Street bookmaker Ladbrokes from ‘neutral’ to ‘buy’, taking a positive stance following the pull-back in the stock seen over recent months.
“While we acknowledge concerns surrounding Digital execution and fixed-odds betting terminals regulation, given the recent share price pressure we upgrade the shares to ‘buy’.” | | |
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