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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: BAE, Rexam lead markets lower early on - BAE and Rexam disappoint with guidance
- Mining stocks fall after Chinese manufacturing data
- FOMC minutes in focus
techMARK 2,849.73 -0.90%
FTSE 100 6,750.47 -0.68%
FTSE 250 16,220.96 -0.77%
UK stocks fell on Thursday morning, tracking losses on US and Asian markets, with heavy losses from blue chips BAE Systems and Rexam and the heavyweight mining sector weighed on the FTSE 100.
Sentiment was dampened by yet more disappointing economic data from China overnight, where activity in the manufacturing sector weakened. The HSBC/Markit 'flash' manufacturing purchasing managers' index for February fell further into contraction, slipping to 48.3 from 49.5.
Japan, meanwhile, was making headlines after recording its biggest trade deficit in history in January of 2.79tn yen.
Investors were also focusing on the minutes from the latest Federal Reserve policy meeting released last night which showed that some policymakers had suggested raising interest rates by the second half of this year, sooner than analysts currently expect.
The FTSE 100 was trading 0.7% lower at 6,750 in early trading.
BAE, Rexam, mining stocks fall
Military hardware manufacturer BAE Systems slumped after reporting a 3% increase in operating profits to £1.9bn for 2013, but warned that profits could fall by up to 10% on the back of pressures on US government spending.
Packaging group Rexam also slumped after missing analysts' estimates slightly with its 2013 results. The company underwhelmed after saying it expects to make "further progress" in 2014, but only on a constant currency basis.
Mining stocks were also providing a drag in London after the data from top metals consumer China disappointed. Fresnillo, Anglo American, Randgold and Rio Tinto were all trading in the red.
Supermarket group WM Morrison was pulling back after strong gains yesterday as speculation surrounding a possible private-equity buyout continued to do the rounds.
RBS was lower after Investec downgraded the stock to 'sell', recommending investors to reinstate short positions ahead of the bank's results next week.
Leading the upside was Petrofac after the oilfield services firm won a £1.2bn contract from BP to build a gas processing facility in Oman.
William Hill was higher after both Goldman Sachs and Exane BNP Paribas upgraded their ratings on the stock to 'buy' and 'outperform', respectively. |
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| FTSE 100 - Risers
Petrofac Ltd. (PFC) 1,366.00p +2.71%
William Hill (WMH) 350.70p +1.42%
Vodafone Group (VOD) 225.90p +1.14%
Severn Trent (SVT) 1,807.00p +0.67%
BP (BP.) 496.85p +0.37%
SSE (SSE) 1,402.00p +0.21%
Associated British Foods (ABF) 2,920.00p +0.17%
Sainsbury (J) (SBRY) 348.60p +0.14%
InterContinental Hotels Group (IHG) 1,967.00p +0.05%
FTSE 100 - Fallers
BAE Systems (BA.) 396.10p -9.32%
Rexam (REX) 486.00p -7.34%
Fresnillo (FRES) 962.50p -2.97%
Anglo American (AAL) 1,545.00p -2.77%
Aberdeen Asset Management (ADN) 385.30p -2.46%
Randgold Resources Ltd. (RRS) 4,720.00p -2.44%
Morrison (Wm) Supermarkets (MRW) 239.10p -2.01%
Mondi (MNDI) 1,031.00p -2.00%
Rio Tinto (RIO) 3,556.00p -1.97%
GKN (GKN) 405.80p -1.91%
FTSE 250 - Risers
Playtech (PTEC) 782.00p +5.53%
Afren (AFR) 152.30p +1.47%
Perform Group (PER) 220.00p +1.38%
De La Rue (DLAR) 803.50p +1.32%
Riverstone Energy Limited (RSE) 912.00p +0.89%
Drax Group (DRX) 816.50p +0.86%
Wood Group (John) (WG.) 731.50p +0.83%
Partnership Assurance Group (PA.) 324.70p +0.81%
Telecity Group (TCY) 672.00p +0.75%
AL Noor Hospitals Group (ANH) 901.50p +0.73%
FTSE 250 - Fallers
Vedanta Resources (VED) 845.50p -7.09%
Smith (DS) (SMDS) 336.70p -3.99%
Evraz (EVR) 79.65p -3.34%
Alent (ALNT) 316.60p -2.58%
Polymetal International (POLY) 643.00p -2.58%
Ferrexpo (FXPO) 159.90p -2.50%
Centamin (DI) (CEY) 50.40p -2.42%
Cobham (COB) 287.90p -2.41%
Thomas Cook Group (TCG) 175.70p -2.17% |
| | UK Event Calendar | | INTERIMS
Centaur Media, Go-Ahead Group, Petra Diamonds Ltd.(DI)
QUARTERLY PAYMENT DATE
Caterpillar Inc.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
‘Flash’ HSBC Manufacturing Index (China) (09:45)
‘Flash’ Markit Manufacturing PMI (EZ) (08:58)
Consumer Price Index (FR) (07:45)
Producer Price Index (GE) (07:00)
Bloomberg Consumer Confidence (US) (14:45)
Consumer Confidence Indicator (EU) (10:00)
Consumer Price Index (US) (13:30)
Continuing Claims (US) (13:30)
Crude Oil Inventories (US) (15:30)
Initial Jobless Claims (US) (13:30)
Leading Indicators (US) (15:00)
Philadelphia Fed Index (US) (15:00)
Producer Price Index (GER) (07:00)
Trade Balance (JP) (08:50)
Q4
First Quantum Minerals Ltd.
GMS
Safeland
FINALS
Anglo Pacific Group, BAE Systems, Centrica, Essentra, First Quantum Minerals Ltd., Primary Health Properties, Rathbone Brothers, Rexam, Playtech
IMSS
Sports Direct International
EGMS
Auhua Clean Energy
AGMS
Optos, Thomas Cook Group
TRADING ANNOUNCEMENTS
Mail.ru Group Ltd GDR (Reg S)
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Surveys (11:00)
Speech Andrew Haldane (18:00)
FINAL DIVIDEND PAYMENT DATE
Dewhurst, Dewhurst (Non-Voting) |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Fall in German and French manufacturing activity drags stocks lower - Manufacturing PMIs fall in Germany, France and China
- Fed minutes indicate further stimulus cuts
- Eurozone consumer confidence report to be released
- US inflation data out later
FTSE 100: -0.56%
DAX: -1.28%
CAC 40: -0.80%
FTSE MIB: -1.10%
IBEX 35: -0.78%
Stoxx 600: -0.78%
European stocks declined as reports showed manufacturing activity in Germany, France and China fell unexpectedly in February.
The German manufacturing purchasing managers' index (PMI) dropped to 54.7 this month from 56.5 the previous month. It fell short of the 56.3 forecast but was above the 50 level that signals expansion.
French manufacturing PMI fell to 48.5 in February from 49.3 in January, compared to analysts' estimates of 49.5.
Chinese manufacturing PMI declined to 48.3 in February, from the prior month's 49.5. Economists had pencilled in a reading of 49.5.
The weak reports are likely to fuel concerns over the recovery of the Eurozone's two biggest economies and fears of a slowdown in the world's second largest economy.
In today's news, a report on Eurozone consumer confidence will be unveiled at 15:00. The sentiment index is tipped to rise to -11 in February from -11.7 in January.
Fed minutes signal further tapering
The Federal Open Market Committee's (FOMC) minutes of its January 28-29th meeting showed that policymakers chose to shrug off recent weak weather-affected economic data to continue scaling back stimulus last month.
"Only if the weaker data continued into the spring, when it would be harder to blame the weather, would we expect the FOMC to consider putting the taper on hold," said Paul Ashworth, Chief US Economist at Capital Economics.
The Fed last month reduced its monthly asset purchases by $10bn to $65bn.
The minutes also showed that some on the committee suggested that the Fed could raise interest rates by the second half of this year, sooner than analysts currently expect.
Sentiment was also dampened by the International Monetary Fund which warned of financial problems arising in emerging markets. The organisation said economies where inflation is still high, or where policy credibility has come into question, "need to continue tightening monetary policy in the context of strengthened policy frameworks".
Turning to today's agenda, US inflation data will be the prime focus ahead of the Fed's March policy meeting.
US consumer prices are expected to have risen by 1.6% year-on-year in January, up from 1.5% a month earlier. On the month, they are tipped to fall to 0.1% growth from 0.3%.
Other notable releases in the US will be confidence data, continuing claims, initial jobless claims and Markit's preliminary reading for manufacturing PMI.
BAE Systems falls on profit warning
BAE Systems tumbled after warning that profits in 2014 could fall by up to 10% on the back of pressures on US government spending.
Air France-KLM declined despite posting earnings that beat analysts' estimates.
Swiss Re AG gained after the world's second biggest reinsurer raised its proposed payout to shareholders for 2013 as fourth-quarter profit exceeded forecasts.
The euro fell 0.20% to $1.3705.
Brent crude futures dipped $0.455 to $109.970 per barrel, according to data from the ICE. |
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| | US Market Report | | US close: Stocks drop after weak housing data, Fed minutes - Housing starts, permits disappoint
- Fed minutes raise rate hike fears
- Signet to buy Zale, shares surge
Dow Jones: -0.56%
Nasdaq: -0.82%
S&P 500: -0.65%
US markets finished firmly lower on Wednesday after a choppy session as investors reacted to disappointing data from the housing market and the minutes of the latest Federal Reserve meeting.
The Dow Jones Industrial Average finished 0.6% lower at 16,040.56; the S&P 500 fell 0.7% to 1,828.75; the Nasdaq snapped an eight-day winning streak to close 0.8% down at 4,237.95.
Details from the Federal Open Market Committee (FOMC) meeting on January 28-29th showed that policymakers chose to shrug off recent weak weather-affected economic data to continue scaling back stimulus last month.
"Only if the weaker data continued into the spring, when it would be harder to blame the weather, would we expect the FOMC to consider putting the taper on hold," said Paul Ashworth, Chief US Economist at Capital Economics.
However, the minutes also showed that some on the committee suggested that the Fed could raise interest rates by the second half of this year, sooner than analysts currently expect. The FOMC did indicate that it could soon make changes to its forward guidance given the recent sharp fall in the unemployment rate.
Sentiment was also dampened by the International Monetary Fund which warned of financial problems arising in emerging markets. The organisation said economies where inflation is still high, or where policy credibility has come into question, "need to continue tightening monetary policy in the context of strengthened policy frameworks".
Housing data disappoints
The Commerce Department revealed that housing starts fell by 16% in January to a seasonally adjusted annual rate of 880,000 units, compared with a revised 1.05m-unit rate in December when they fell 4.8%. This was the worst percentage drop since February 2011 and well below the 4.9% fall expected by analysts.
Separately, building permits fell 5.4% in January to a 937,000-unit pace, down from the revised 991,000 in December when they declined 2.6%. Analysts had predicted a smaller fall to 975,000.
Meanwhile, mortgage applications retreated 4.1% in the week ended February 14th against a 2% slump the previous week.
Signet, Zale surge after deal
Signet Jewelers rose strongly after agreeing to buy Zale Corp. for $21 a share, representing a 41% premium over Zale's previous closing price. The deal would value both companies at around $1.4bn.
US Steel was a heavy faller after the Department of Commerce rejected its claim that South Korea was 'dumping' – selling steel tubing in the US at less than fair value.
Electric car maker Tesla Motors surged after narrowing losses in the fourth quarter as revenues doubled to $615.2m. The company also said it expects a 55% increase in production this year.
Zebra Technologies jumped higher after the maker of barcode-label printers reported fourth-quarter revenue that exceeded analysts' estimates.
Chelsea Therapeutics International surged after winning approval in the US for its drug to prevent sudden drops in blood pressure.
S&P 500 - Risers
Nabors Industries Ltd. (NBR) $21.15 +13.34%
Garmin Ltd. (GRMN) $51.68 +9.56%
Mylan Inc. (MYL) $51.15 +5.90%
Flowserve Corp. (FLS) $80.60 +5.66%
Eli Lilly and Company (LLY) $58.09 +5.14%
CF Industries Holdings Inc. (CF) $237.62 +5.05%
Actavis plc (ACT) $210.56 +4.51%
Forest Laboratories Inc. (FRX) $93.98 +3.23%
Alcoa Inc. (AA) $11.76 +3.16%
Kroger Co. (KR) $38.77 +3.11%
S&P 500 - Fallers
United States Steel Corp. (X) $24.86 -7.03%
Cliffs Natural Resources Inc. (CLF) $21.96 -4.02%
Comcast Corp. (CMCSA) $51.57 -3.66%
L Brands Inc (LB) $53.66 -3.12%
Genworth Financial Inc. (GNW) $15.21 -3.00%
Time Warner Cable Inc. (TWC) $141.00 -2.75%
Regions Financial Corp. (RF) $10.10 -2.60%
Zions Bancorporation (ZION) $30.12 -2.59%
Regeneron Pharmaceuticals Inc. (REGN) $324.36 -2.53%
Citigroup Inc. (C) $48.19 -2.41%
Dow Jones I.A - Risers
Verizon Communications Inc. (VZ) $46.53 +1.20%
Chevron Corp. (CVX) $113.60 +0.79%
United Technologies Corp. (UTX) $114.04 +0.26%
Microsoft Corp. (MSFT) $37.51 +0.24%
Procter & Gamble Co. (PG) $78.14 +0.22%
AT&T Inc. (T) $32.85 +0.09%
Dow Jones I.A - Fallers
JP Morgan Chase & Co. (JPM) $57.26 -2.10%
Boeing Co. (BA) $128.39 -1.71%
Home Depot Inc. (HD) $76.45 -1.44%
Pfizer Inc. (PFE) $31.48 -1.25%
Merck & Co. Inc. (MRK) $55.04 -1.17%
Intel Corp. (INTC) $24.50 -1.05%
Coca-Cola Co. (KO) $37.10 -0.99%
General Electric Co. (GE) $25.40 -0.97%
Visa Inc. (V) $223.88 -0.96%
3M Co. (MMM) $130.56 -0.94%
Nasdaq 100 - Risers
Garmin Ltd. (GRMN) $51.68 +9.56%
Mylan Inc. (MYL) $51.15 +5.90%
Altera Corp. (ALTR) $35.75 +2.46%
Expedia Inc. (EXPE) $79.62 +2.05%
Monster Beverage Corp (MNST) $73.15 +1.58%
Nvidia Corp. (NVDA) $18.14 +1.34%
Whole Foods Market Inc. (WFM) $52.31 +1.18%
Facebook Inc. (FB) $68.06 +1.13%
Sba Communications Corp. (SBAC) $97.69 +1.13%
Xilinx Inc. (XLNX) $50.87 +1.10%
Nasdaq 100 - Fallers
Tesla Motors Inc (TSLA) $193.64 -4.94%
Comcast Corp. (CMCSA) $51.57 -3.66%
Regeneron Pharmaceuticals Inc. (REGN) $324.36 -2.53%
F5 Networks Inc. (FFIV) $109.65 -2.20%
Dentsply International Inc. (XRAY) $44.69 -2.19%
Priceline.Com Inc. (PCLN) $1,273.76 -2.14%
Green Mountain Coffee Roasters Inc. (GMCR) $117.94 -2.01%
Netflix Inc. (NFLX) $428.23 -1.97%
Biogen Idec Inc. (BIIB) $328.45 -1.95%
Sigma-Aldrich Corp. (SIAL) $93.77 -1.93% |
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| | Newspaper Round Up | | Thursday newspaper round-up: RBS, tapering, Facebook Royal Bank of Scotland has continued the cutback of its investment banking arm with the sale of the business's equity derivatives operations to a French rival. RBS said it had reached a deal with BNP Paribas to sell its structured retail products and equity derivatives to France's largest banking group.- The Daily Telegraph
Tightening monetary policy too quickly risks derailing the global recovery and the US Federal Reserve should be prepared to adjust the tapering of its asset purchases if economic conditions worsen, the International Monetary Fund (IMF) has said. Amid renewed turmoil in emerging markets, the IMF urged central banks in advanced economies, including the Fed - which began scaling back its multi-billion dollar bond buying programme this year - the Bank of Japan and the European Central Bank (ECB) to work together on a smooth "exit plan" while keeping monetary policy accommodative. – The Daily Telegraph
Facebook went big-game hunting again last night, snapping up the free messaging service WhatsApp for $19bn in its biggest acquisition yet. The deal will help the social networking service to keep up with the rapidly expanding demand for instant messaging and follows its acquisition of the photo-sharing service Instagram for $1bn in 2012. – The Times
ScottishPower owner Iberdrola yesterday unveiled plans to invest almost €4bn (£3.3bn) in the UK over the next three years as it posted annual profits that were hit by a doubling of regulatory levies in its Spanish home market. The UK wins the lion's share of €9.6bn of global investment between 2014 and 2016, as revealed in The Scotsman's sister publication Scotland on Sunday, despite ScottishPower's underlying earnings in generation and supply falling to €320.5m (£265m) in 2013. - The Scotsman
Staff at Sports Direct are on track to share another multimillion-pound pay-out after the retailer said it was "very confident" of hitting profit targets in the penultimate year of its bonus scheme. The sportswear and clothing chain reported gross profit up by nearly 15% at £281m over the Christmas quarter, compared with the same period a year earlier, and said it was confident of "at least" achieving its full-year operating profit goal of £310m. – The Times
A multi-billion pound windfall from the biggest corporate deal in UK history is set to be reinvested in the shares of Britain's top companies, which could propel the FTSE 100 towards a record high. Mobile phone giant Vodafone yesterday announced the detailed terms of the £50bn cash and shares return to shareholders following the £78bn sale of its 45% stake in US joint venture Verizon Wireless, a deal engineered by Vodafone Chief Executive Vittorio Colao. – The Daily Express | | |
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