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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: Stocks register small decline ahead of inflation data - FTSE down 12 points
- All eye on CPI inflation figure
- InterCo Hotels falls despite posting profit
techMARK 2,855.49 -0.06%
FTSE 100 6,726.16 -0.15%
FTSE 250 16,217.82 -0.17%
Stocks surprised with a modest decline this morning as investors geared up for a data-heavy session both at home and across the Channel.
The FTSE declined 12 points early on, dragged by InterContinental Hotels Group, which failed to impress despite delivering a rise in 2013 profits and expressing confidence for the year ahead.
On the macro front, inflation figures for January are expected to show that the consumer price index (CPI) held at 2% last month, driven by slower increases in the prices of food.
In December, prices fell to the government's target of 2% for the first time, which eased pressure on the Bank of England (BoE) to raise interest rates following the recent recovery in the economy.
"Ever since Bank of England Governor Mark Carney announced the changes to forward guidance to remove the focus from just the unemployment rate, the other pieces of tier one economic data have become even more important," Market Analyst Craig Erlam pointed out.
If CPI has indeed remained at 2%, then this will mean there is no pressure for the BoE to up interest rates, and it would show a reduction in the wage growth and inflation gap.
"This allows the consumer driven recovery to continue as people can buy more with their money," Erlam explained.
"Of course, this is still not sustainable in the long term if spending is being funded by debt, but it should aid the transition to the next stage of the recovery which involves businesses investing more in an improving economy."
Fall expected in German economic confidence
German economic confidence figures will be released. The ZEW institute's economic sentiment index is tipped to fall to 61.5 in February from 61.7 in January.
The same gauge, but for the Eurozone, is forecast to rise to 73.9 from 73.3 last month.
Over in Asia, the Bank of Japan announced its plan to extend two programmes offering low cost loans to banks by another 12 months.
Meanwhile, trading will resume in the US today after closing Monday to mark Presidents' Day. The Federal Reserve will hold its board meeting on banking supervision tonight, while the Empire State manufacturing index is forecast to show a decline to 10 from 12.51 in January.
InterContinental Hotels Group falls despite profit rise
InterContinental Hotels Group registered a decline this morning, despite the fact it posted a 3.7% rise in 2013 revenue to $1.9bn as the company opened 237 hotels and signed a further 444 into the pipeline. Revenue per available room climbed 3.8%, driven by a strong performance in the US. However, looking ahead to 2014 the group did not that economic conditions in some markets remained uncertain.
Centrica shares also declined heavily after Deutsche Bank reduced its target on the stock from 315p to 300p, with a 'hold' rating.
Meanwhile, BHP Billiton rose after it reported a 15% increase in interim underlying operating profits, in terms of earnings before interest and taxes (EBIT), to reach $12.4bn. Underlying attributable profit rose by 31% to reach $7.8bn.
IMI shares were once again higher after the group returned cash to shareholders via a payment of a C share dividend.
Oil giant Petrofac rose on reports the group has secured £65m-worth of contract extensions in the North Sea.
On the second tier, Ophir Energy moved lower despite reporting it had started drilling the Padouck Deep-1 well on the Ntsina block, offshore Gabon on the west coast of Central Africa. |
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| FTSE 100 - Risers
TUI Travel (TT.) 449.40p +1.38%
Associated British Foods (ABF) 2,881.00p +1.02%
Royal Bank of Scotland Group (RBS) 355.40p +1.02%
IMI (IMI) 1,544.00p +0.92%
Aberdeen Asset Management (ADN) 397.30p +0.84%
BHP Billiton (BLT) 1,928.00p +0.84%
Petrofac Ltd. (PFC) 1,327.00p +0.68%
BP (BP.) 490.95p +0.67%
Severn Trent (SVT) 1,805.00p +0.67%
Travis Perkins (TPK) 1,915.00p +0.63%
FTSE 100 - Fallers
Centrica (CNA) 307.10p -3.55%
InterContinental Hotels Group (IHG) 1,988.00p -2.88%
Rolls-Royce Holdings (RR.) 991.00p -1.49%
Morrison (Wm) Supermarkets (MRW) 233.10p -1.40%
Fresnillo (FRES) 961.00p -1.33%
RSA Insurance Group (RSA) 96.90p -1.32%
Sports Direct International (SPD) 713.50p -1.04%
Glencore Xstrata (GLEN) 340.50p -1.03%
SABMiller (SAB) 2,783.50p -0.96%
Barclays (BARC) 253.65p -0.94%
FTSE 250 - Risers
Bwin.party Digital Entertainment (BPTY) 119.10p +5.40%
Wood Group (John) (WG.) 703.00p +3.92%
Bank of Georgia Holdings (BGEO) 2,347.00p +3.48%
Paragon Group Of Companies (PAG) 375.80p +2.29%
Daejan Holdings (DJAN) 4,946.00p +1.44%
Xaar (XAR) 1,070.00p +1.42%
Grafton Group Units (GFTU) 629.00p +0.96%
UK Commercial Property Trust (UKCM) 78.85p +0.90%
Brewin Dolphin Holdings (BRW) 323.00p +0.78%
AL Noor Hospitals Group (ANH) 873.50p +0.75%
FTSE 250 - Fallers
African Barrick Gold (ABG) 268.50p -2.89%
COLT Group SA (COLT) 125.20p -1.88%
Rank Group (RNK) 148.20p -1.85%
Unite Group (UTG) 432.10p -1.82%
Centamin (DI) (CEY) 51.65p -1.81%
Ferrexpo (FXPO) 168.60p -1.75%
Riverstone Energy Limited (RSE) 895.00p -1.65%
Spirent Communications (SPT) 103.00p -1.53%
Halma (HLMA) 576.00p -1.45% |
| | UK Event Calendar | | INTERIMS
BHP Billiton
INTERIM DIVIDEND PAYMENT DATE
red24
QUARTERLY PAYMENT DATE
Marsh & Mclennan Cos Inc.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Monetary Policy Meeting (Turkey) (08:00)
Balance of Payments (EU) (09:00)
Current Account (EU) (09:00)
New Car Registrations (EU) (10:00)
ZEW Survey (EU) (10:00)
ZEW Survey (GER) (10:00)
Empire State Manufacturing Index (US) (13:30)
Net Long-Term TIC Flows (US) (14:00)
NAHB Housing Index (US) (15:00)
Monetary Policy Meeting (JP)
FINALS
AZ Electronic Materials SA (DI), Brammer, Dragon Oil, Drax Group, Hutchison China Meditech Ltd, InterContinental Hotels Group, Wood Group (John), Morgan Sindall
IMSS
Essar Energy
EGMS
NewRiver Retail Ltd. (Reg S)
AGMS
MedicX Fund Ltd., Radiant Growth Investments Ltd
UK ECONOMIC ANNOUNCEMENTS
Consumer Price Index (09:30)
Producer Price Index (09:30)
Retail Price Index (09:30) |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks mixed before German confidence, UK inflation data - German economic confidence report out
- UK inflation in focus
- US returns to trading
- Italy's Renzi in coalition talks
FTSE 100: -0.14%
DAX: -0.12%
CAC 40: -0.31%
FTSE MIB: 0.13%
IBEX 35: -0.82%
Stoxx 600: -0.29%
European stocks were mixed ahead of German investor confidence data and UK inflation figures.
The ZEW institute will release its economic sentiment survey for Germany and the Eurozone. The economic sentiment index for Germany is tipped to fall to 61.5 in February from 61.7 in January while the index for the Eurozone is expected to rise to 73.9 from 73.3.
Traders and policymakers are closely monitoring economic data to gauge the health of the bloc as speculation mounts on whether the European Central Bank (ECB) will undertake measures to tackle falling inflation.
ECB President Mario Draghi has indicated that the ECB will consider changing its current policy at its March meeting after the release of more comprehensive data.
Earlier this month he said the environment remained too uncertain to act as economic reports have yet to paint a clear picture.
In the UK the focus today will be on the release of the latest UK inflation numbers. Consumer prices are expected to have held at the Bank of England's (BoE) 2% target last month.
The return to the BoE's target for the first time since November 2009 in December was seen as supportive for the UK's recovery.
"Firstly, and most importantly, it means the BoE is under no pressure to hike interest rates and risk choking off what little recovery we're seeing," said Alpari analyst Craig Erlam.
"Secondly, it means that the gap between wage growth and inflation is narrowing, which is good because it eases the pressure on families who are struggling due to the rising cost of living."
Back in Europe, new car sales increased for a fifth consecutive month in January by 5.2% from a year earlier to 967,800 vehicles, the Brussels-based European Automobile Manufacturers Association, said today. It compared to a 13% jump in December sales.
Meanwhile, the US returns to trading after taking a break on Monday for Presidents' Day which should boost trading volumes. However, the session will be rather thin on economic data so attention will turn to the Federal Reserve's board meeting on banking supervision tonight.
In China, the government sold repurchase contracts for the first time since June after money-market rates declined and the country reported record lending figures in January. The People's Bank of China conducted 48bn yuan of 14-day repurchase contracts at a yield of 3.8%, according to a statement on the bank's website.
Italy's Renzi in coalition negotiations
Italian centre-left leader Matteo Renzi will be in coalition talks today after receiving a mandate to form a new government following the resignation of Prime Minister Enrico Letta.
Renzi, who plans a radical programme to lift Italy out of its most serious economic slump since World War Two, will need to seal a formal coalition deal with the small centre-right NCD party to secure a majority and name his cabinet.
President Giorgio Napolitano asked Renzi to form the next government after Letta caved into calls to step down following a meeting of their Democratic Party last week.
Italian 10-year yields have dropped to their lowest level since 2006 this week following the news.
EU finance ministers make progress on bank talks
European Union finance ministers met yesterday in Brussels to discuss creating a system for handling failing euro-area banks.
Minsters hailed the progress of talks as the ECB prepares to take over supervision of banks in November.
During the meeting, ministers also discussed Greece's debt. Dutch Finance Minister Jeroen Dijsselbloem said there was no need to discuss fresh aid for twice-bailed out Greece before August, with a current package enough if Athens meets conditions.
The European Union, the European Central Bank and the International Monetary Fund first bailed out Greece in 2010 with a programme worth €110bn.
BHP Billiton rallies after first half results
BHP Billiton gained after the world's biggest mining company posted first-half profit that beat analysts' forecasts.
Casino Guichard-Perrachon advanced after reporting an 18% jump in 2013 earnings.
Pandora climbed as the Danish jeweller reported fourth-quarter income that surpasses market expectations.
MTU Aero Engines was higher as the German aircraft-engine manufacturer unveiled 2013 sales ahead of analysts' estimates.
The euro rose 0.06% to $1.3715.
Brent crude futures fell $0.083 to $109.090 per barrel, according to ICE data. |
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| | US Market Report | | - 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.
S&P 500 - Risers
Cliffs Natural Resources Inc. (CLF) $23.16 +5.75%
Aetna Inc. (AET) $69.19 +5.23%
Campbell Soup Co. (CPB) $43.01 +4.98%
Murphy Oil Corp. (MUR) $60.06 +4.96%
Starwood Hotels & Resorts Worldwide Inc. (HOT) $78.62 +4.33%
Occidental Petroleum Corp. (OXY) $95.76 +3.78%
Humana Inc. (HUM) $100.23 +3.31%
Pioneer Natural Resources Co. (PXD) $185.30 +3.23%
Nvidia Corp. (NVDA) $17.91 +3.17%
DTE Energy Co. (DTE) $71.73 +3.10%
S&P 500 - Fallers
Agilent Technologies Inc. (A) $55.25 -8.04%
VF Corp. (VFC) $56.85 -5.08%
Sears Holdings Corp. (SHLD) $41.44 -4.56%
Vertex Pharmaceuticals Inc. (VRTX) $81.61 -3.99%
Interpublic Group of Companies Inc. (IPG) $16.48 -3.79%
J. M. Smucker Co. (SJM) $91.81 -3.50%
Equifax Inc. (EFX) $69.80 -2.83%
Kansas City Southern (KSU) $95.96 -2.60%
Walgreen Co. (WAG) $64.78 -2.43%
PepsiCo Inc (PEP) $78.09 -2.01%
Dow Jones I.A - Risers
Unitedhealth Group Inc. (UNH) $73.52 +3.24%
Exxon Mobil Corp. (XOM) $94.11 +2.93%
Procter & Gamble Co. (PG) $79.40 +2.06%
Walt Disney Co. (DIS) $79.23 +1.71%
3M Co. (MMM) $132.12 +1.52%
Travelers Company Inc. (TRV) $84.02 +1.38%
Cisco Systems Inc. (CSCO) $22.56 +1.30%
General Electric Co. (GE) $25.74 +1.18%
International Business Machines Corp. (IBM) $183.69 +1.02%
Visa Inc. (V) $226.00 +0.87%
Dow Jones I.A - Fallers
Verizon Communications Inc. (VZ) $46.51 -1.69%
AT&T Inc. (T) $33.15 -1.02%
Goldman Sachs Group Inc. (GS) $163.72 -0.21%
Nasdaq 100 - Risers
Nxp Semiconductors Nv (NXPI) $55.60 +3.69%
Nvidia Corp. (NVDA) $17.91 +3.17%
PACCAR Inc. (PCAR) $61.54 +2.82%
Adobe Systems Inc. (ADBE) $68.34 +1.94%
Discovery Communications Inc. Class A (DISCA) $80.83 +1.93%
Check Point Software Technologies Ltd. (CHKP) $66.95 +1.89%
Vimpelcom Ltd Ads (VIP) $10.20 +1.59%
Bed Bath & Beyond Inc. (BBBY) $65.96 +1.59%
Whole Foods Market Inc. (WFM) $52.25 +1.54%
Cerner Corp. (CERN) $60.18 +1.52%
Nasdaq 100 - Fallers
Vertex Pharmaceuticals Inc. (VRTX) $81.61 -3.99%
Green Mountain Coffee Roasters Inc. (GMCR) $116.03 -3.92%
Dish Network Corp. (DISH) $56.90 -2.43%
Avago Technologies Ltd. (AVGO) $58.08 -1.69%
Gilead Sciences Inc. (GILD) $81.21 -1.62%
Baidu Inc. (BIDU) $167.48 -1.51%
TripAdvisor Inc. (TRIP) $91.25 -1.14%
Mattel Inc. (MAT) $36.65 -1.11%
NetApp Inc. (NTAP) $40.72 -0.92%
Regeneron Pharmaceuticals Inc. (REGN) $323.99 -0.91% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: Bank of England, PBoC, Bank of Japan A Bank of England rate-setter has warned borrowers to start anticipating the impact of a rise in interest rates. David Miles, an external member of the Bank's Monetary Policy Committee, said that homeowners "need to think very carefully what's going to happen" when their mortgage costs go up. Mr Miles conceded, though, that any decision to cool soaring house prices with higher interest rates would be a "big stick" used only in an emergency. – The Times
China's central bank has drained Rmb48bn ($7.9bn) from money markets, a surprising move that signals its concern with the boom in lending at the start of the year. The People's Bank of China withdrew the cash by issuing 14-day bond repurchase agreements. It was its first time using repos to drain liquidity from the money market in eight months. – Financial Times
The Bank of Japan has stepped up its efforts to boost the flow of cash around the world's third-largest economy, voting to double the size of its loan support programme and to extend its term by one year. – Financial Times
Dixons has launched a counter-attack against ao.com after the "noise" generated by the online retailer's impending flotation knocked its share price.
In a note to investors, Dixons hit back at claims from ao.com, formerly known as Appliances Online, that it was the market leader in on-line white goods. – The Times
The lead banker on Essar Energy's stock market flotation nearly four years ago has emerged as a key figure in a plan by its largest shareholder to take the company private for a fraction of the price. Joe Seifert was a senior member of the team at JP Morgan Cazenove that was the sole adviser and a co-ordinator of Essar Energy's listing in 2010 for 420p a share. – The Times
The West End of London has topped the league of the world's most expensive offices for the second year in a row, extending its lead over Hong Kong. In further evidence of London's leading position as a world business hub, Cushman & Wakefield said that demand for office space in the West End had pushed up average prime rents by 5% to £110 a sq ft last year. – The Times
European plans to introduce a Financial Transactions Tax (FTT) could deal a €4.4bn (£3.6bn) blow to the value of British pension savings, a report by the City of London Corporation has calculated. The report, released as European finance ministers are due to discuss the levy at today's Ecofin summit, warned that the FTT is likely to wipe the equivalent of 0.2% of GDP off the value of UK equity and bond holdings, even though the Government has ruled out adopting it. – The Daily Telegraph | | |
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