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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | UK stocks retreat from three-week high as earnings disappoint - Stocks snap six-day winning streak
- Tate & Lyle, Rolls-Royce, Lloyds and Rio fall after updates
- AMEC, Imperial rise
techMARK 2,817.35 -0.49%
FTSE 100 6,649.80 -0.38%
FTSE 250 15,999.35 -0.50%
UK stocks opened with moderate losses on Thursday after poorly-received results and updates from a number of blue chips, including Tate & Lyle, Rolls-Royce, Lloyds Banking Group and Rio Tinto.
The FTSE 100 snapped a six-day winning streak, falling 0.4% to 6,650 early on, as it pulled back from 6,675.03 on Wednesday - its best closing level since January 23rd.
Market Analyst Craig Erlam from Alpari said that this comes after a "very good February so far" across European equity markets. This morning's falls are "just a small correction on the path back to highs we were trading around in the middle of January".
The lower start followed weakness on Asian and US markets overnight as investors continued to react to comments from Federal Reserve policymakers. One day after Janet Yellen's first testimony as Fed Chair on monetary policy, St Louis Fed President James Bullard said he was "optimistic" about US growth this year and that the Fed could return to more “traditional” monetary policy given the recent drop in the unemployment rate.
Closer to home, the Bank of England's Chief Economist Spencer Dale said that expectations for a rate hike in 2015 are "reasonable". This follows the central bank's Inflation Report yesterday, in which Governor Mark Carney completely revamped his forward guidance plan.
Tate & Lyle, Rolls-Royce, Lloyds and Rio provide a drag
Food and sweetener company Tate & Lyle sank sharply despite a third-quarter update that said it expects full-year profits to be broadly in line with the previous year, as Sucralose pricing pressures intensified. The company said that Sucralose prices in the next financial year will be down 15%.
Aerospace and defence group Rolls-Royce also dropped after revealing that 2014 revenue and profit is expected to be flat due to cuts in government defence spending, implying a reduction to current consensus forecasts.
Defence groups Meggit and BAE Systems were also lower after the statement.
Banking group Lloyds fell despite swinging to a statutory profit before tax of £415m during 2013, from a loss of £606m the year before. Chief Executive António Horta-Osório said that the results "confirmed that the group is returning to robust health", however analysts said that tangible net asset value for the year was below expectations.
Mining stocks were largely out of favour as metals prices declined. Rio Tinto was among the worst performers after underwhelming with a 10% increase in underlying earnings in 2013 and a 15% rise in the dividend.
Aberdeen was in the red after the asset manager was downgraded form 'hold' to 'underperform' by Jefferies.
UK oil and gas engineer AMEC was among the few risers this morning after an in-line 2013 report, in which adjusted earnings per share rose 11% despite a 3% dip in revenues. The company also announced a firm offer for Swiss rival Foster Wheeler.
Imperial Tobacco edged higher after first-quarter underlying tobacco net revenue rose 1% to £1.56bn, helped by its key Growth Brands. |
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| | FTSE 100 - Risers
Imperial Tobacco Group (IMT) 2,282.00p +2.56%
Amec (AMEC) 1,111.00p +1.74%
Kingfisher (KGF) 383.70p +1.11%
British American Tobacco (BATS) 3,024.50p +0.98%
SSE (SSE) 1,370.00p +0.74%
Centrica (CNA) 316.60p +0.70%
Royal Mail (RMG) 600.00p +0.67%
Rexam (REX) 511.00p +0.59%
Coca-Cola HBC AG (CDI) (CCH) 1,601.00p +0.57%
Shire Plc (SHP) 3,155.00p +0.45%
FTSE 100 - Fallers
Tate & Lyle (TATE) 665.00p -15.45%
Rolls-Royce Holdings (RR.) 1,072.00p -11.40%
Aberdeen Asset Management (ADN) 406.10p -5.03%
Lloyds Banking Group (LLOY) 80.18p -4.01%
BAE Systems (BA.) 425.60p -3.16%
Meggitt (MGGT) 523.00p -1.78%
William Hill (WMH) 348.00p -1.50%
Tullow Oil (TLW) 781.00p -1.45%
Antofagasta (ANTO) 916.00p -1.24%
Barclays (BARC) 257.25p -1.23%
FTSE 250 - Risers
Entertainment One Limited (ETO) 340.20p +4.20%
IP Group (IPO) 192.80p +3.10%
Morgan Advanced Materials (MGAM) 317.50p +1.63%
Rank Group (RNK) 142.50p +1.50%
Rotork (ROR) 2,548.00p +1.11%
BH Macro Ltd. EUR Shares (BHME) € 19.20 +1.05%
RPC Group (RPC) 600.50p +1.01%
Foxtons Group (FOXT) 368.30p +0.96%
Perform Group (PER) 217.00p +0.93%
BH Global Ltd. USD Shares (BHGU) 11.69 +0.86%
FTSE 250 - Fallers
Lancashire Holdings Limited (LRE) 717.50p -4.97%
Telecity Group (TCY) 637.00p -3.48%
Drax Group (DRX) 774.00p -2.70%
Imagination Technologies Group (IMG) 174.50p -2.68%
Ladbrokes (LAD) 147.30p -2.58%
Cranswick (CWK) 1,270.00p -2.46%
Lonmin (LMI) 321.00p -2.46%
Polymetal International (POLY) 627.00p -2.34%
Oxford Instruments (OXIG) 1,477.00p -2.19%
Fidessa Group (FDSA) 2,328.00p -2.18% |
| | UK Event Calendar | | INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Bloomberg Consumer Confidence (US) (14:45)
Business Inventories (US) (13:30)
Consumer Price Index (GER) (07:00)
Continuing Claims (US) (13:30)
ECB Report (EU) (09:00)
Initial Jobless Claims (US) (13:30)
Manufacturing Inventories (US) (15:00)
Retail Sales (US) (13:45)
Retail Sales Inventories (US) (15:15)
Q4
Lancashire Holdings Limited, Shire Plc
FINALS
Amec, Lancashire Holdings Limited, Lloyds Banking Group, Morgan Advanced Materials , New World Resources A Shares, Rio Tinto, Rolls-Royce Holdings, Shire Plc, SVG Capital
IMSS
Imperial Tobacco Group, Norcros
AGMS
Blackrock North American Income Trust , easyJet, LXB Retail Properties, Pressure Technologies
UK ECONOMIC ANNOUNCEMENTS
RICS Housing Market Survey (09:30)
FINAL DIVIDEND PAYMENT DATE
Cardiff Property, Conygar Investment Company, Euromoney Institutional Investor |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | European stocks fall ahead of ECB Monthly Bulletin - German inflation rises in line
- ECB releases Monthly Bulletin
- US retail sales out later
FTSE 100: -0.47%
DAX: -0.21%
CAC 40: -0.25%
FTSE MIB: -0.795
IBEX 35: -0.55%
Stoxx 600: -0.37%
European stocks fell as investors weighed German inflation data and awaited the European Central Bank’s (ECB) Monthly Bulletin and a report on US retail sales.
German consumer prices, calculated using a harmonised European Union method, rose 1.2% in January, matching the previous month’s increase and the consensus forecast.
The ECB releases its Monthly Bulletin this morning, which could shed further light behind the monetary authority’s policy decision last week.
BNP Paribus, Pernod
BNP Paribas declined after France’s largest bank unexpectedly reported a drop in fourth-quarter profit.
Pernod Ricard was down after the French spirits group cut its annual profit growth goal, due to weak demand in China.
Zurich Insurance dropped after the insurer posted fourth-quarter net income that missed analysts’ estimates.
Rio Tinto gained after reporting a rise in annual underlying profit that exceeded market forecasts.
The euro rose 0.25% to $1.3627.
Brent crude futures fell $0.499 to $108.250 per barrel, according to the ICE. |
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| | US Market Report | | US stocks finish lower, snap four-day winning streak - P&G, Amazon.com weigh on markets
- House increases debt ceiling
- Bullard 'optimistic' about growth
- China trade surplus widens
Dow Jones: -0.19%
Nasdaq: 0.24%
S&P 500: -0.03%
US stocks finished with small losses on Wednesday with the Dow Jones Industrial Average and S&P 500 snapping a four-day winning streak as investors continued to digest comments from Federal Reserve officials.
Meanwhile, markets were also reacting to the news that the US House of Representatives has passed an increase in the government’s borrowing limit. The House voted 221-201 to waive the $17.2trn debt limit for just over a year, after Republicans gave up on their attempt to win concessions from the Democrats in return.
Stocks rose strongly on Tuesday after new Fed Chair Janet Yellen expressed her commitment to continue tapering stimulus in the face of an improving labour market.
During the six-hour Q&A session on Capitol Hill she indicated that only a "notable" change in the economic outlook would lead the US central bank to consider a pause in 'tapering'.
On Wednesday, remarks made by St Louis Fed President James Bullard were in focus after he said he was “optimistic about the prospects for this year” and that growth could come in at 3% “or better”.
Speaking on a panel at the New York Stock Exchange, he also said that the Fed will likely return to more “traditional” monetary policy given the recent drop in the unemployment rate.
Markets had got off to a decent start Stateside after data showed a higher-than-expected trade surplus in China as exports rose by more than expected in January. Export growth accelerated to 10.6% from 4.3% previously, while import growth rose to 10% from 8.3%. This resulted in a trade balance of $31.86bn, surprising analysts who had expected a slight decline from the $25.64bn surplus registered in December.
P&G, Amazon.com provide a drag
Consumer products giant Procter & Gamble finished in the red after lowering its earnings guidance for 2014, saying that adjusted profits per share growth will be between 3-5%, compared with the previous target of 5-7%.
Amazon.com Inc. also declined after UBS lowered its rating of the online retailer to ‘neutral’ from ‘buy’.
Twitter advanced strongly after saying it is testing a redesign of its profile pages that mimics the look of Facebook’s timelines.
Tractors and agriculture machinery giant Deere & Co. fell after saying that demand for farm equipment is “moderating” as it predicted a slowdown in sales.
FireEye dropped as the technology company estimated a first-quarter loss that trailed market expectations.
S&P 500 - Risers
TripAdvisor Inc. (TRIP) $90.27 +7.21%
Windstream Holdings Inc (WIN) $7.90 +6.04%
Sears Holdings Corp. (SHLD) $40.39 +4.31%
Legg Mason Inc. (LM) $44.06 +3.84%
Nvidia Corp. (NVDA) $16.83 +3.57%
Fossil Group Inc (FOSL) $121.06 +3.51%
DaVita HealthCare Partners Inc (DVA) $66.35 +3.14%
Zoetis Inc (ZTS) $30.00 +2.99%
Fluor Corp. (FLR) $79.90 +2.90%
Western Union Co. (WU) $16.34 +2.90%
S&P 500 - Fallers
Lorillard Inc. (LO) $47.47 -4.96%
Intuit Inc. (INTU) $69.72 -4.10%
Amazon.Com Inc. (AMZN) $349.25 -3.47%
SunTrust Banks Inc. (STI) $37.13 -3.05%
Williams Companies Inc. (WMB) $40.69 -2.56%
NetApp Inc. (NTAP) $42.59 -2.52%
Sealed Air Corp. (SEE) $31.98 -2.32%
PVH Corp. (PVH) $117.54 -2.31%
Spectra Energy Corp. (SE) $36.88 -2.25%
L Brands Inc (LB) $54.47 -2.23%
Dow Jones I.A - Risers
Caterpillar Inc. (CAT) $96.17 +1.27%
Visa Inc. (V) $224.17 +0.83%
Microsoft Corp. (MSFT) $37.47 +0.79%
Home Depot Inc. (HD) $77.28 +0.76%
Cisco Systems Inc. (CSCO) $22.85 +0.62%
American Express Co. (AXP) $89.02 +0.50%
Verizon Communications Inc. (VZ) $47.37 +0.34%
Intel Corp. (INTC) $24.55 +0.33%
International Business Machines Corp. (IBM) $180.24 +0.30%
Exxon Mobil Corp. (XOM) $91.08 +0.26%
Dow Jones I.A - Fallers
Procter & Gamble Co. (PG) $77.49 -1.71%
Boeing Co. (BA) $128.13 -1.56%
Chevron Corp. (CVX) $112.03 -1.36%
Merck & Co. Inc. (MRK) $55.00 -1.26%
E.I. du Pont de Nemours and Co. (DD) $63.51 -1.21%
Travelers Company Inc. (TRV) $82.26 -1.14%
Pfizer Inc. (PFE) $31.61 -0.85%
Johnson & Johnson (JNJ) $92.42 -0.59%
Goldman Sachs Group Inc. (GS) $163.50 -0.54%
Unitedhealth Group Inc. (UNH) $70.24 -0.54%
Nasdaq 100 - Risers
TripAdvisor Inc. (TRIP) $90.27 +7.21%
Catamaran Corp (CTRX) $51.03 +3.66%
Nvidia Corp. (NVDA) $16.83 +3.57%
Intuitive Surgical Inc. (ISRG) $438.37 +2.80%
Priceline.Com Inc. (PCLN) $1,246.64 +2.69%
Xilinx Inc. (XLNX) $48.90 +1.96%
Adobe Systems Inc. (ADBE) $65.14 +1.83%
Garmin Ltd. (GRMN) $46.02 +1.68%
Autodesk Inc. (ADSK) $53.77 +1.61%
Avago Technologies Ltd. (AVGO) $58.94 +1.50%
Nasdaq 100 - Fallers
Intuit Inc. (INTU) $69.72 -4.10%
Amazon.Com Inc. (AMZN) $349.25 -3.47%
NetApp Inc. (NTAP) $42.59 -2.52%
Staples Inc. (SPLS) $13.20 -1.93%
Regeneron Pharmaceuticals Inc. (REGN) $320.38 -1.88%
Monster Beverage Corp (MNST) $71.80 -1.62%
Wynn Resorts Ltd. (WYNN) $221.12 -1.41%
Illumina Inc. (ILMN) $158.94 -1.34%
Vertex Pharmaceuticals Inc. (VRTX) $83.90 -1.27%
Netflix Inc. (NFLX) $428.93 -1.17% |
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| | Newspaper Round Up | | Thursday newspaper round-up: RBS, DX Group, Vodafone Shareholders in Royal Bank of Scotland waiting on the sidelines of a looming multibillion-pound court battle against the bank must put up or shut up, the judge overseeing the case warned yesterday. Mr Justice Hildyard said that the time was “fast approaching” when the case should ignore the wishes of “interested spectators”. – The Times
One of a clutch of delivery companies to have made bold claims that it would profit from the decline in Royal Mail is set to be floated on the stock market — for the second time in 10 years. DX Group is expected to say today that it plans to raise £170m on AIM in an initial public offering that would value the company at up to £180m. - The Times
India plans to pull out of talks with Vodafone over a $2bn £1.2bn tax dispute, in a move that will prolong a row that is already more than six years old and increase uncertainty among investors in Asia's third-largest economy. India's finance ministry is preparing to seek the cabinet's approval to withdraw conciliation proceedings after Vodafone wanted a separate tax dispute to be made part of the deal, according to an internal government note. – The Guardian
Comcast is set to acquire Time Warner Cable in a deal that values its smaller rival at $45.2bn after a six-month battle to consolidate America’s fragmented pay-TV market, according to people familiar with the matter. The deal, which will be confirmed on Thursday morning, brings together the country’s largest and second-largest cable companies by subscribers and is likely to face an intense regulatory battle. Comcast is expected to divest 3m subscribers if the deal goes through. – Financial Times
Creditors in Punch Taverns are weeks away from agreeing a major debt-for-equity restructuring designed to relieve the stricken pubs group from its £2.3bn debt overhang. A major bondholder group - which speaks for investors including Standard Life, M&G and Aviva - said that a restructuring plan is “well advanced.” The comments came despite the 11th hour collapse of a rival restructuring plan put forward by Punch Taverns, the London-listed operating company which provides the beer to more than 4,000 leased pubs across the UK. – Daily Telegraph
A shortage of homes for sale is threatening to stifle the recovery in the housing market, but estate agents are hoping that a spring in activity will solve the problem. In its latest health check of the market, the Royal Institution of Chartered Surveyors said that the number of homes for sale had tumbled to its lowest level since July 2012, despite the number of potential buyers continuing to surge ahead in most regions. – The Times | | |
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