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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: FTSE inches higher despite ECB concerns - Modest rise on FTSE
- Lloyds dives on PPI bill update
- Chinese and Aussie data disappoints
- Focus to be on Eurozone manufacturing
techMARK 2,783.19 +0.30%
FTSE 100 6,514.32 +0.06%
FTSE 250 15,690.31 +0.10%
The FTSE surprised with a positive start to today's session, inching marginally into positive territory early on, despite weak data out from China, a poor finish in both Asia and the US, on-going fears over emerging markets, as well as concerns over this week's interest rates decision by the European Central Bank (ECB).
Friday's weaker-than-expected reading on Eurozone consumer price inflation prompted a number of the largest research outfits in Europe to change their predictions for the upcoming policy meeting, and as a consensus now see another cut in the ECB's main policy rate on the cards.
Asia stock markets tracked a decline in the US, and were also hit by data from China, which revealed non-manufacturing PMI dropped to 53.4 in January.
Turning to today's session, markets will see the release of the UK´s manufacturing PMI, with the same also due to be released from Spain, Italy and the US. Also in the States, data will be published on Construction Spending and ISM Manufacturing Prices.
According to Craig Erlam, a Market Analst at Alpari UK, investors "could be in for another bad week" after Australian data also disappointed with a 2.9% decline in December building permit numbers.
"With the central bank meeting tomorrow, this could further encourage policy makers to cut rates again in order to provide a further boost to the economy and devalue the currency to a level its more comfortable with," he said.
"I don't think this panic will last, although I do expect repeats of this throughout the year as the Fed brings it asset purchase programme to a close. Given the size of the rally in stocks last year, I think part of this sell-off is being driven by investors using the emerging markets story as an excuse to allow for a correction in the markets."
On the company front, Randgold Resources was a strong riser after it said it hit targets for 2013, boosted gold production to a new record level and expects output to rise over the next five years. Production for the quarter and year to December rose 20% and 15% respectively, in line with guidance.
Shares in Lloyds were at the bottom of the pile after the group revealed its payment protection insurance (PPI) bill had soared by a further £1.8bn to nearly £10bn, and despite predicting its full-year underlying profits would be almost double that predicted by analysts. Sector peer Barclays was also a heavy faller.
Rexam was higher after proposing the sale of the Pharmaceutical Devices and Prescription Retail Packaging divisions of its Healthcare business for $805m. The consumer packaging company said Montagu Private Equity has made a binding offer for the divisions. The transaction is subject to regulatory approval and is expected to be completed around mid-2104.
BBA Aviation climbed after saying it sold APPH, a full-service landing gear and hydraulic sub-systems supplier, and announced it was considering a cash return to shareholders. The business, which had formed part of BBA's Aftermarket Services division, was sold for $128m, the $120.6m proceeds of which would be use to reduce the group's debt level.
Medical technology company Smith & Nephew rose after it agreed to buy medical device company ArthroCare Corp. The group will pay $1.7bn, or $48.25 per ArthroCare share in cash, representing an enterprise value of $1.5bn. |
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| FTSE 100 - Risers
Weir Group (WEIR) 2,149.00p +2.63%
Reckitt Benckiser Group (RB.) 4,657.00p +2.06%
Randgold Resources Ltd. (RRS) 4,272.00p +1.88%
SSE (SSE) 1,328.00p +1.61%
GlaxoSmithKline (GSK) 1,587.50p +1.50%
Rexam (REX) 499.90p +1.40%
Fresnillo (FRES) 780.00p +1.36%
Smith & Nephew (SN.) 887.50p +1.31%
Intertek Group (ITRK) 2,865.00p +1.17%
Diageo (DGE) 1,821.50p +1.17%
FTSE 100 - Fallers
Lloyds Banking Group (LLOY) 81.16p -2.57%
Barclays (BARC) 269.10p -1.25%
Vodafone Group (VOD) 224.25p -1.02%
Sports Direct International (SPD) 677.00p -1.02%
ARM Holdings (ARM) 926.50p -0.91%
TUI Travel (TT.) 422.10p -0.78%
BP (BP.) 474.30p -0.77%
Royal Mail (RMG) 594.00p -0.67%
Kingfisher (KGF) 367.30p -0.62%
Burberry Group (BRBY) 1,439.00p -0.62%
FTSE 250 - Risers
Kenmare Resources (KMR) 18.59p +6.23%
Grafton Group Units (GFTU) 611.00p +2.78%
EnQuest (ENQ) 133.00p +2.70%
Centamin (DI) (CEY) 45.20p +2.49%
Ferrexpo (FXPO) 154.70p +1.78%
SIG (SHI) 199.30p +1.58%
RPC Group (RPC) 602.50p +1.26%
Cobham (COB) 297.30p +1.23%
Croda International (CRDA) 2,441.00p +1.20%
BH Global Ltd. GBP Shares (BHGG) 1,200.00p +1.18%
FTSE 250 - Fallers
Perform Group (PER) 234.70p -5.17%
Rank Group (RNK) 135.50p -2.38%
Essar Energy (ESSR) 56.50p -2.08%
Serco Group (SRP) 430.60p -1.49%
Petra Diamonds Ltd.(DI) (PDL) 136.00p -1.38%
PayPoint (PAY) 1,086.00p -1.18%
Telecom Plus (TEP) 1,881.00p -1.16%
Cranswick (CWK) 1,307.00p -1.06%
UDG Healthcare Public Limited Company (UDG) 352.10p -1.04% |
| | UK Event Calendar | | Monday February 03
INTERIM DIVIDEND PAYMENT DATE
Aveva Group, BT Group, Dart Group, DP Aircraft I Limited Pref , KCOM Group, Mitie Group, United Utilities Group
QUARTERLY PAYMENT DATE
Verizon Communications
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Auto Sales (US) (15:00)
Construction Spending (US) (15:00)
ISM Manufacturing (US) (15:00)
ISM Prices Paid (US) (15:00)
PMI Manufacturing (EU) (09:00)
PMI Manufacturing (GER) (08:55)
China NBS non-manufacturing PMI
Q4
Randgold Resources Ltd., Torchmark Corp.
FINALS
Goldenport Holdings Inc., Randgold Resources Ltd., RM, SThree, Torchmark Corp.
IMSS
Mitie Group
SPECIAL DIVIDEND PAYMENT DATE
Next
AGMS
Blackrock Frontiers Investment Trust, Future
UK ECONOMIC ANNOUNCEMENTS
PMI Manufacturing (09:30)
FINAL DIVIDEND PAYMENT DATE
Artemis VCT, Baring Emerging Europe, JPMorgan Chinese Inv Trust, Marston's, Schroder UK Mid Cap Fund
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks little changed ahead of manufacturing reports - Factory data out in Eurozone, UK and US
- Chinese manufacturing growth eases
- Greece may need another bailout
FTSE 100: 0.09%
DAX: -0.28%
CAC 40: -0.13%
FTSE MIB: -0.18%
IBEX 35: -0.17%
Stoxx 600: -0.08%
European stocks were little changed as investors awaited manufacturing data in the Eurozone, UK and US.
The purchasing managers' index (PMI) for gauging manufacturing activity is expected to come in at 53.9 for the Eurozone in January, in line with the previous month and above the 50 level that signals expansion.
In the UK, the PMI is tipped to remain at 57.4 in January.
In the US, on the other hand, analysts predict PMI fell to 56 last month from 57 in December.
This morning a report showed Chinese manufacturing PMI dipped to 50.5 from 51, fuelling concerns of slowdown in the world's second largest economy.
"On the bright side, the figure remained comfortably above 50, the level that separates growth from contraction, while continuing to show growth, albeit slightly slower, in both the services and construction sectors," said Craig Erlam, Market Analyst at Alpari.
Greece reportedly headed for third bailout
Greece may be on its way towards a third bailout, according to a report in Der Spiegel.
The German newspaper referenced a five-page plan written by Germany's Finance Minister, Wolfgang Schäuble, which sets out plans to inject another €10bn to €20bn in the Greek economy.
However, Greek newspaper Kathimerini on Saturday ran a story stating that the country continued to work on demands from its international lenders. It noted that the Greek government is continuing discussions over some of the measures with the Troika (representatives from the International Monetary Fund, the European Commission and the European Central Bank).
Ryanair soars on quarterly results
Ryanair advanced after the airline reported a third-quarter loss, but said the weakness has eased with bookings for the first quarter of 2015 already significantly higher than a year ago.
Lloyds Banking Group declined after saying it set aside £1.8bn in the fourth quarter to cover the cost of compensating customers for mis-sold payment protection insurance.
Travel retailer Dufry AG slipped as Citigroup recommended selling the shares.
The euro fell 0.03% to $1.3482.
Brent crude futures dropped $0.188 to $106.200 per barrel, according to the ICE. |
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| | US Market Report | | US close: Dow, S&P 500 register worst month since May 2012 - Weak earnings, mixed data weigh on stocks
- Wal-Mart, Amazon.com and Mattel fall after earnings
- Deflationary risks pick up in the Eurozone
Dow Jones: -0.94%
Nasdaq: -0.46%
S&P 500: -0.62%
Despite pulling off their intraday lows, US markets suffered steep falls on Friday on the back of ongoing concerns over emerging markets, weak corporate earnings and a batch of mixed economic data.
Meanwhile, renewed worries about deflation in the Eurozone were also weighing heavily on sentiment during the session after a surprise slowdown in consumer price growth in January.
The news prompted suggestions about a potential interest rate cut or extraordinary measures that could be employed by the European Central Bank at its policy meeting next week.
The downwards pressure saw the Dow Jones Industrial Average drop 0.9% and the S&P 500 fall 0.6%, with both indices finishing January with their worst monthly performance since May 2012.
"There is one thing which investors dislike and that is uncertainty - while stocks crumble, the volatility (fear) index soars," said David Madden, Market Analyst at IG.
Economic data comes in mixed
The Commerce Department said that personal spending increased 0.4% over the month after rising by an upwardly revised 0.6% in November. Economists had predicted it to climb 0.2%.
However, personal income remained unchanged in December after increasing by 0.2% a month earlier, missing estimates for growth of 0.2%.
The Chicago's purchasing managers' index (PMI) for business activity in the region fell to 59.6 in January from 60.8 in December but ahead of the 59 reading expected.
The final reading of the University of Michigan consumer confidence index came in at 81.2 for January, above the initial estimate of 80.4 but down from 82.5 in December.
Wal-Mart, Amazon.com and Mattel disappoint
Wal-mart, the world's largest retailer, fell early on after lowering its earnings guidance for the fourth quarter, blaming winter storms and a reduction in government food stamps.
Amazon.com declined after the online retailer reported fourth-quarter profit and sales that missed analysts' estimates.
Mattel Inc. fell sharply after a surprise drop in sales in the fourth quarter due to sales weakness in major brands such as Barbie and Fisher-Price.
Google gained strongly after the internet giant posted a rise in fourth-quarter revenue that topped estimates.
Zynga Inc. rallied after the company, known for its FarmVille and casino-style games, announced it will cut staff and buy UK mobile-game developer NaturalMotion.
S&P 500 - Risers
Chipotle Mexican Grill Inc. (CMG) $551.96 +11.74%
Computer Sciences Corp. (CSC) $60.41 +9.52%
Tyson Foods Inc. (TSN) $37.40 +8.44%
Wynn Resorts Ltd. (WYNN) $217.42 +7.90%
L-3 Communications Holdings Inc. (LLL) $111.07 +5.37%
Google Inc. (GOOG) $1,180.97 +4.01%
Best Buy Co. Inc. (BBY) $23.54 +3.61%
Raytheon Co. (RTN) $95.07 +3.46%
Lennar Corp. Class A (LEN) $40.16 +3.37%
EQT Corp. (EQT) $92.81 +3.12%
S&P 500 - Fallers
Mattel Inc. (MAT) $37.84 -12.02%
Amazon.Com Inc. (AMZN) $358.69 -11.00%
Newmont Mining Corp. (NEM) $21.60 -10.37%
Mastercard Inc. (MA) $75.68 -5.12%
Juniper Networks Inc. (JNPR) $26.61 -4.52%
Symantec Corp. (SYMC) $21.41 -4.33%
Adt Corp (ADT) $30.04 -4.33%
Chevron Corp. (CVX) $111.63 -4.14%
Hasbro Inc (HAS) $49.12 -4.14%
Vertex Pharmaceuticals Inc. (VRTX) $79.04 -3.79%
Dow Jones I.A - Risers
Microsoft Corp. (MSFT) $37.84 +2.66%
Verizon Communications Inc. (VZ) $48.02 +0.82%
Caterpillar Inc. (CAT) $93.91 +0.76%
McDonald's Corp. (MCD) $94.17 +0.39%
3M Co. (MMM) $128.19 +0.11%
Dow Jones I.A - Fallers
Chevron Corp. (CVX) $111.63 -4.14%
Visa Inc. (V) $215.43 -2.47%
Exxon Mobil Corp. (XOM) $92.16 -1.95%
American Express Co. (AXP) $85.02 -1.85%
Nike Inc. (NKE) $72.85 -1.47%
General Electric Co. (GE) $25.13 -1.45%
Pfizer Inc. (PFE) $30.40 -1.36%
Travelers Company Inc. (TRV) $81.28 -1.31%
Johnson & Johnson (JNJ) $88.47 -1.15%
JP Morgan Chase & Co. (JPM) $55.36 -1.14%
Nasdaq 100 - Risers
Wynn Resorts Ltd. (WYNN) $217.42 +7.90%
Google Inc. (GOOG) $1,180.97 +4.01%
Microsoft Corp. (MSFT) $37.84 +2.66%
Facebook Inc. (FB) $62.57 +2.44%
Green Mountain Coffee Roasters Inc. (GMCR) $81.00 +2.34%
Yahoo! Inc. (YHOO) $36.01 +1.98%
Broadcom Corp. (BRCM) $29.76 +1.88%
Citrix Systems Inc. (CTXS) $54.07 +1.46%
QUALCOMM Inc. (QCOM) $74.22 +1.31%
Netflix Inc. (NFLX) $409.33 +1.15%
Nasdaq 100 - Fallers
Mattel Inc. (MAT) $37.84 -12.02%
Amazon.Com Inc. (AMZN) $358.69 -11.00%
Symantec Corp. (SYMC) $21.41 -4.33%
Vertex Pharmaceuticals Inc. (VRTX) $79.04 -3.79%
Baidu Inc. (BIDU) $156.50 -2.68%
F5 Networks Inc. (FFIV) $107.02 -2.66%
PACCAR Inc. (PCAR) $56.00 -2.52%
Check Point Software Technologies Ltd. (CHKP) $65.43 -2.45%
Viacom Inc. Class B (VIAB) $82.10 -2.27%
Intuitive Surgical Inc. (ISRG) $407.58 -2.11% |
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| | Newspaper Round Up | | Monday newspaper round-up: Energy companies, retailers, Lloyds Energy companies have hit out at Ofgem after being ordered to hand over information on every single trade they have made for the past 10 years as part of a new annual competition audit. That amounts to millions of pieces of data and executives have questioned the timing of the regulator's 'unusual' request, which was made just before Christmas. Investigators from Ofgem, assisted by the Office of Fair Trading, have only four months to sift through the data before the audit is published in April. - The Times
The wettest January for 100 years in parts of southern England had shoppers scurrying to the coat rails, helping retailers avoid a washout last month. Retailers discounted throughout January, hitting margins but boosting sales by 8% compared with the same time last year, according to the BDO High Street Sales Tracker. The rise was flattered, however, by weak comparative figures in 2013 when snow disrupted trading. - The Times
The growing problems in the Chinese banking system could spill over into a wider financial crisis, one of the most respected analysts of China's lenders has warned. Charlene Chu, a former senior analyst at Fitch in Beijing and now the head of Asian research at Autonomous Research, said the rapid expansion of foreign-currency borrowing meant a crisis in China's financial system was becoming a bigger risk for international banks. - Daily Telegraph
Consumers could be saddled with an extra £1.8bn on their energy bills because of flaws in the government's plan to install 'smart' gas and electricity meters in every home by 2020, suppliers have warned. Three of the Big Six energy suppliers – EDF Energy, ScottishPower and npower - are now calling on ministers to review the £12bn nationwide rollout of the meters, which automatically take gas and electricity usage readings and transmit the information back to suppliers. - Daily Telegraph
Computer giant Hewlett Packard is poised to cut hundreds more jobs in the UK, on top of the 1,000 it axed at the end of last year. The group has plans to cull more than 7,000 roles across Europe during the year – although it has not decided how many of these will land in the UK. Before Christmas it announced that more than 1,000 British roles were due to go. - Daily Mail
Lloyds Banking Group will tomorrow set out plans to boost lending to small companies by more than £1bn this year, as Chief Executive Antonio Horta-Osorio tries to rebuild trust in the state-backed firm. As part of a wide-ranging strategy, he will also pledge that the bank will help more than 80,000 first-time buyers get on the housing ladder – up from last year's target of 60,000 – and increase the number of women holding senior roles at the group. - The Scotsman | | |
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