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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | Chinese lending boosts FTSE as RSA Insurance leads risers - FTSE rises 33 points early on
- Chinese lending, new Italian PM lift sentiment
- RSA up on capital raising talk
techMARK 2,838.60 +0.24%
FTSE 100 6,695.20 +0.47%
FTSE 250 16,141.35 +0.19%
The FTSE put in a better than first anticipated performance in early trade, lifted by a strong performance in Asia overnight and ahead of a data-heavy week.
Stocks finished higher across the board in Asia this morning, lifted by Chinese lending data from the People's Bank of China which revealed borrowing for January was above expectations. Loans for the four-week period leapt to 1.32trn yuan from 482.5bn yuan in December and 1.07bn in the same period a year earlier, indicating that borrowing hasn't been affected by fears over credit expansion.
However, the performance on the Nikkei-225 was rather more volatile after data showed Japan’s economy grew less than expected in the final three months of 2013, with gross domestic product up an annualised 1%, below expectations of 2.8%.
Over in the US, stocks registered their best weekly performance in the year-to-date, boosted by a better-than-expected reading of consumer sentiment which offset a fall in industrial production.
In celebration of Presidents' Day, both US stock and bond markets will be closed today.
Investors have also welcomed the departure of Italian Prime Minister Enrico Letta last week. Letta fell on his sword after his party backed calls for a new administration, with Matteo Renzi, who is widely expected to replace Letta, saying a change was needed to end the "uncertainty" and lack of action over the country's economic situation.
RSA Insurance jumps on plans for £350m equity placing
RSA Insurance topped the leaderboard this morning after the Financial Times reported the company is set to raise up to £350m in an emergency share sale that would mean it avoids a rights issue. Recently appointed Chief, Stephen Hester, has reportedly been approached by several major investors who have indicated their support for such a move. The group's shares have suffered since it was revealed accounting problems in Ireland had resulted in a huge hole in its balance sheet.
IMI shares climbed following the company's confirmation of a share capital consolidation taking place today.
Outsourcing giant Capita rose on the news it has signed a framework contract to deliver the Scottish Wide Area Network (SWAN), a single network that has been set up to connect all public service organisations within Scotland. The agreement is worth up to £325m over a nine-year period.
Property group Hammerson impressed with a rise in annual profits, driven by strong demand for retail property. Pre-tax profit for the year ended December 31st 2013 came to £341.2m, up from £142.2m the previous year, as like-for-like net rental income climbed 2.1% to £282.8m.
On the second tier, Fidessa Group, which provides software and trading systems to the financial services sector, disappointed after saying revenue was flat at £279m due to a reduction in consultancy earnings.
Elsewhere, scandal-hit Co-operative Group has announced plans to conduct a national survey on its future to seek public opinion on the 150-year-old company. |
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FTSE 100 - Risers
RSA Insurance Group (RSA) 98.60p +2.87%
Weir Group (WEIR) 2,281.00p +2.15%
IMI (IMI) 1,517.00p +1.56%
Randgold Resources Ltd. (RRS) 4,846.00p +1.51%
Reckitt Benckiser Group (RB.) 4,993.00p +1.44%
BAE Systems (BA.) 437.40p +1.27%
Tullow Oil (TLW) 777.50p +1.17%
British American Tobacco (BATS) 3,082.00p +1.15%
British Land Co (BLND) 672.00p +1.13%
Melrose Industries (MRO) 315.00p +1.12%
FTSE 100 - Fallers
SSE (SSE) 1,381.00p -0.58%
Coca-Cola HBC AG (CDI) (CCH) 1,545.00p -0.52%
AstraZeneca (AZN) 4,040.50p -0.36%
William Hill (WMH) 346.00p -0.32%
Rio Tinto (RIO) 3,508.00p -0.23%
Aberdeen Asset Management (ADN) 401.00p -0.10%
Sainsbury (J) (SBRY) 344.90p -0.09%
Centrica (CNA) 318.00p -0.06%
Standard Chartered (STAN) 1,290.00p -0.04%
FTSE 250 - Risers
Polymetal International (POLY) 675.00p +2.66%
African Barrick Gold (ABG) 280.00p +2.49%
Telecom Plus (TEP) 1,849.00p +2.10%
Telecity Group (TCY) 655.00p +1.55%
AL Noor Hospitals Group (ANH) 853.00p +1.55%
Essar Energy (ESSR) 66.90p +1.36%
Micro Focus International (MCRO) 768.00p +1.32%
Bellway (BWY) 1,626.00p +1.25%
Spirax-Sarco Engineering (SPX) 2,942.00p +1.20%
Ferrexpo (FXPO) 172.00p +1.12%
FTSE 250 - Fallers
JD Sports Fashion (JD.) 1,375.00p -2.27%
Daejan Holdings (DJAN) 4,941.00p -2.16%
Rank Group (RNK) 142.40p -1.66%
CSR (CSR) 673.00p -1.39%
Riverstone Energy Limited (RSE) 897.50p -1.37%
KCOM Group (KCOM) 99.30p -1.19%
Millennium & Copthorne Hotels (MLC) 576.00p -1.12%
Keller Group (KLR) 1,216.00p -0.90%
Ladbrokes (LAD) 148.40p -0.87%
Hellermanntyton Group (HTY) 300.30p -0.86%
|
| | UK Event Calendar | | INTERIMS
Gleeson (M J) Group
QUARTERLY EX-DIVIDEND DATE
Schlumberger Ltd.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Presidents’ Day (Market closed) (US)
Gross Domestic Product (JP) (08:50)
GMS
Martin Currie Global Portfolio Trust, Northern 3 VCT
FINALS
Electric Word, Fidessa Group, Hammerson
IMSS
DCC
EGMS
Dragon-Ukrainian Properties & Development
AGMS
Brewin Dolphin Holdings
FINAL DIVIDEND PAYMENT DATE
Impax Asset Management Group, Imperial Tobacco Group |
| | 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 mixed as Moody's upgrades Italy's debt rating - Moody's raises Italy's debt rating
- Economists mixed on ECB policy forecasts
- Japan GDP rises less than expected
FTSE 100: 0.49%
DAX: 0.10%
CAC 40: 0.06%
FTSE MIB: 0.25%
IBEX 35: -0.17%
Stoxx 600: 0.33%
European stocks were little changed ahead of a quiet day with few data releases and the US closed for the celebration of Presidents' Day.
Italy is in focus in the euro-area after Prime Minter Enrico Letta resigned last Friday.
President Giorgio Napolitano has accepted Letta’s resignation following calls for a new government. He is widely expected to be replaced by Democratic Party leader Matteo Renzi.
Moody's raised its debt rating of the nation to ‘stable’ from ‘negative’ following the announcement.
The ratings agency cited the government’s financial strength and reduction of risks from contingent liabilities.
It also affirmed Italy’s Baa2 and Prime-2 debt ratings, saying in a statement it expects a levelling-off of the nation’s debt-to-gross domestic product ratio this year.
Meanwhile, Japanese gross domestic product rose by 0.3% in the fourth quarter from the previous three months when it climbed 0.2%. Economists had pencilled in an increase of 0.8%.
Economists divided on ECB's next move
European Central Bank President Mario Draghi has signalled that he may act to counter low inflation as soon as next month but economists are split on their forecasts.
Nineteen out of 38 responses in the Bloomberg Monthly Survey of economists showed Draghi will ease monetary policy when officials hold their monthly rate-setting meeting in March.
Draghi earlier this month said the ECB decided to keep policy on hold until March when he gets his hands on the release of more clear economic data.
Miners rally
Polymetal International and Randgold Resources advanced as the price of gold, silver and copper rose.
MorphoSys AG gained as the German biotechnology company said it received a milestone payment from Novartis in connection with a clinical trial application and projected initiation of a Phase 1 clinical trial.
Bouygues slumped after the French construction and telecommunications company said it will take a writedown in the fourth quarter of €1.4bn.
The euro increased 0.08% to $1.3704.
Brent crude futures jumped $0.064 to $109.150 per barrel, according to the ICE. |
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| | US Market Report | | US stocks end higher as indices register best week of 2014 - Stocks finish with best weekly gains of 2014
- Nasdaq at highest in 13 and a half years
- Surprise decline in industrial production
- Consumer sentiment stable, better than forecasts
Dow Jones: 0.79%
Nasdaq: 0.08%
S&P 500: 0.48%
US stocks closed higher on Friday with benchmarks registering their best weekly performances of the year so far.
Investors headed into the long weekend - Wall Street is closed on Monday for a public holiday - in a bullish mood as a fall in industrial production was outweighed by a better-than-expected reading of consumer sentiment.
The Dow Jones Industrial Average finished 0.8% higher at 16,154.39 with all but three constituents on the index making gains, while the S&P 500 advanced 0.5% to 1,838.63; both indices finished 2.3% higher on the week.
The Nasdaq, while only ending with a gain of 0.1%, finished higher for the seventh straight day at 4,244.03. The 2.9% weekly increase for the tech-heavy index helped it rise to its highest level since July 2000.
Industrial production falls, consumer confidence stable
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.
In 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%.
Campbells, Cliff and Occidental rise
Campbells Soup surged as results for its second quarter came in ahead of forecasts, helped by the later timing of Thanksgiving. Earnings per share jumped to $1.03 from 60 cents a year before, with the adjusted figure of 76 cents beating the 73 cents expected by analysts.
Cliff Natural Resources also advanced as fourth-quarter earnings beat analysts’ projections.
Oil producer Occidental Petroleum said it intends to split operations in California, causing shares to jump.
Auto major Ford was making small gains 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 plummeted after fourth-quarter earnings missed estimates. |
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| | Monday Newspaper Round-up | | Italy, Essar Energy, Barclays Matteo Renzi will on Monday be formally handed the job of forming Italy’s fourth government in less than two years with the aim of presenting his reform programme to parliament by the end of the week. The 39-year-old leader of the centre-left Democrats, who ousted prime minister Enrico Letta in a party power struggle, has a mid-morning appointment at the presidential palace where he is expected to receive the mandate to govern from Giorgio Napolitano, Italy’s 88-year-old head of state. – Financial Times
William Hill is poised to fire the starting gun in its search for its new Chief Executive as it seeks to replace Ralph Topping a year earlier than expected. Britain’s biggest bookmaker is odds-on to appoint somebody from outside the company amid indications that the leading internal candidates are not yet ready for the role. – The Times
The row at Essar Energy has deepened after one of the struggling oil and gas group’s biggest shareholders publicly condemned an attempt by its majority owner to take it private. Standard Life Investments, a top five institutional shareholder, described the move by Essar Global, the vehicle of the founding Ruia family who own 78% of the company, as “cynical opportunism” taken at the expense of the minority owners. – The Times
A new furore is growing around Barclays and its pay and bonus policy after it emerged that some of its biggest shareholders plan to approach its chairman directly to voice their concern. Several of the bank’s leading institutional investors will seek meetings with Sir David Walker or will write to him over the course of the next two weeks. – The Times
Reader’s Digest has been sold for just £1 by Better Capital to a venture capitalist whose former TV company created Bob the Builder. The sale for a nominal amount marks another chapter in the magazine publishing company’s chequered history and a steep writedown for Jon Moulton’s listed private equity firm. Better Capital bought the business out of administration for £14m in 2010. – The Daily Telegraph
Parts of Britain may be under water after the worst floods in half a century, but a team of top academics from Newcastle and Oxford University is warning that the country is at risk of water shortages that could shut down power stations and paralyse electricity supplies. "It is difficult to fathom we should start to think about water shortages in the middle of these storms but only two years ago areas of Britain were suffering from severe droughts," said Ed Byers, a researcher at Newcastle University's engineering and geosciences department. – The Guardian | | |
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