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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: Sentiment hit by concerns about China - FTSE falls more than expected
- China woes knock sentiment
- German Q4 GDP as forecast
techMARK 2,903.17 -0.49%
FTSE 100 6,832.37 -0.49%
FTSE 250 16,471.23 -0.41%
The FTSE suffered a bigger-than-predicted decline in opening trade this morning, dragged by a poor performance on the Chinese stock market overnight.
The index declined 35 points early on.
The CSI300 registered its biggest one-day drop in seven months, hit by a heavy fall in the yuan and fears about lending in the property sector. For the first time since September 2012, the yuan dropped below the official midpoint rate.
German exports drive Q4 GDP growth
Over in Germany, the second release of fourth quarter gross domestic product (GDP) confirmed the first growth estimate and showed that the Eurozone's largest economy economy grew 1.3% on the year, marking an increase from the prior quarter's 1.1% rise. Quarter-on-quarter, GDP increased 0.4%, in line with the consensus estimate for no change in the preliminary estimate.
Exports pushed growth figures as they registered their largest expansion in almost three years, rising 2.6% from the previous quarter.
Meanwhile, the European Commission is due to release its economic growth forecasts for the Eurozone this morning, giving its predictions for the economy in the coming two years. This will prove interesting given indications from the European Central Bank's President, Mario Draghi, at the weekend that the bank may choose to ease monetary policy at its next meeting.
"The forecasts released today could give us some insight into what the ECBs own forecasts will be, which will only assist us in predicting exactly what the ECB will do," Erlam continued. "At this stage, I don't see the ECB doing anything rash and I can't imagine these forecasts changing that, but as with all central banks in recent years, the ECB can be unpredictable so it shouldn't be written off."
Persimmon's annual profits and revenue rise on improved market
Housebuilder Persimmon rose strongly after it reported a 21% rise in 2013 revenue to £2.1bn against the previous year as prices accelerated amid an improving UK market. Underlying pre-tax profit for the year through December 2013 jumped 49% to £330m. Operating margins increased to 16% from 12.9% the prior year, as the average selling price of homes climbed 4% to £181,861.
RSA Insurance recovered somewhat from yesterday's declines, which came after it issued a statement acknowledging recent press speculation regarding a potential rights issue and stated it was "considering" several options.
CRH climbed despite poor results for 2013 after Chief Executive of the construction materials group, Albert Manifold, said he expected 2014 to be a year of profit growth, with current trading ahead of last year. The group blamed severe winter conditions and weaker trading in Europe for the results, which reported a six per cent decline in earnings before interest, tax, depreciation and amortisation (EBITDA) of 1.47bn euros.
GKN shares fell sharply after the group reported a flat full-year performance in Europe, while both Japanese and Indian production fell 4%. Broker Jefferies was upbeat about the stock, however, giving it a 'buy' rating, saying the result was ahead of its forecasts. |
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| | FTSE 100 - Risers
CRH (CRH) 1,732.00p +2.85%
Persimmon (PSN) 1,487.00p +1.09%
Associated British Foods (ABF) 2,947.00p +0.92%
RSA Insurance Group (RSA) 98.40p +0.92%
Admiral Group (ADM) 1,481.00p +0.75%
Melrose Industries (MRO) 328.10p +0.71%
Reckitt Benckiser Group (RB.) 5,060.00p +0.70%
BAE Systems (BA.) 420.30p +0.67%
G4S (GFS) 237.10p +0.38%
Resolution Ltd. (RSL) 373.90p +0.30%
FTSE 100 - Fallers
GKN (GKN) 400.10p -3.57%
Anglo American (AAL) 1,486.50p -3.06%
Rio Tinto (RIO) 3,438.00p -2.79%
Aberdeen Asset Management (ADN) 380.70p -2.38%
Vodafone Group (VOD) 246.90p -2.14%
Antofagasta (ANTO) 915.00p -1.93%
Fresnillo (FRES) 978.50p -1.90%
BHP Billiton (BLT) 1,926.50p -1.71%
Glencore Xstrata (GLEN) 331.10p -1.60%
William Hill (WMH) 367.20p -1.13%
FTSE 250 - Risers
St James's Place (STJ) 823.50p +3.65%
NMC Health (NMC) 458.80p +2.57%
St. Modwen Properties (SMP) 414.10p +1.82%
PayPoint (PAY) 1,199.00p +1.70%
Perform Group (PER) 223.50p +1.59%
African Barrick Gold (ABG) 283.90p +1.43%
Paragon Group Of Companies (PAG) 401.40p +1.13%
RPS Group (RPS) 327.00p +1.02%
Bank of Georgia Holdings (BGEO) 2,366.00p +0.98%
Provident Financial (PFG) 1,879.00p +0.86%
FTSE 250 - Fallers
Ashmore Group (ASHM) 316.00p -7.06%
Genus (GNS) 1,114.00p -7.01%
Fidessa Group (FDSA) 2,360.00p -3.67%
Essar Energy (ESSR) 65.55p -2.46%
Evraz (EVR) 78.25p -2.37%
Riverstone Energy Limited (RSE) 902.50p -2.17%
Ferrexpo (FXPO) 167.60p -1.99%
Ladbrokes (LAD) 148.00p -1.99%
Vedanta Resources (VED) 851.50p -1.96%
COLT Group SA (COLT) 137.40p -1.86% |
| | UK Event Calendar | | Tuesday February 25
INTERIMS
Ashmore Group, Dechra Pharmaceuticals, Netcall, Wilmington Group
INTERIM DIVIDEND PAYMENT DATE
GCP Infrastructure Investments Ltd, IG Group Holdings
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Confidence (US) (15:00)
House Price Index (US) (15:00)
FINALS
Aeci 5 1/2% Prf, BATM Advanced Communications Ltd., Capital & Counties Properties , CRH, Croda International, GKN, Ladbrokes, NMC Health, Persimmon, Provident Financial, St James's Place
EGMS
JSC KazMunaiGaz Exploration Production GDR (Reg S)
AGMS
2 ergo Group, Servoca, Sorbic International
UK ECONOMIC ANNOUNCEMENTS
BBA Mortgage Lending Figures (09:30)
CBI Distributive Trades Surveys (11:00)
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks fall after German economic growth data - German Q4 GDP confirmed
- European Commission to release economic forecasts
- Italy's Renzi wins confidence vote
- China central bank drains more funds
- US consumer confidence report out later
FTSE 100: -0.51%
DAX: -0.44%
CAC 40: -0.47%
FTSE MIB: -0.33%
IBEX 35: -0.21%
Stoxx 600: -0.33%
European stocks dropped following the release of German economic growth data and ahead of a US consumer confidence report.
The Federal Statistics Office today confirmed an earlier flash estimate which revealed German gross domestic product (GDP) increased by a modest 0.4% on the quarter between October and December compared with 0.3% during the previous three months.
Foreign trade drove growth in Europe's largest economy in the fourth quarter while domestic demand dragged.
At 10:00 GMT the European Commission will release its winter economic forecast for the euro-area. In the autumn it expected GDP growth to be 1.1% in 2014 and 1.7% in 2015, while inflation was projected to 1.5% in 2014 before falling to 1.4% in 2015.
The report comes after European Central Bank (ECB) President Mario Draghi hinted that he may ease monetary policy at the March meeting next week following the release of more comprehensive data, including the Bank's own economic forecasts.
"The forecasts released today could give us some insight into what the ECBs own forecasts will be, which will only assist us in predicting exactly what the ECB will do," according to Craig Erlam, Market Analyst at Alpari.
"At this stage, I don't see the ECB doing anything rash and I can't imagine these forecasts changing that, but as with all central banks in recent years, the ECB can be unpredictable so it shouldn't be written off."
China slump, US consumer confidence
Chinese stocks declined as the People's Bank of China sold 100bn yuan of 14-day repurchase agreements at 3.8% today, according to a statement posted on its website. The monetary authority withdrew a net 108bn yuan last week via two separate repo auctions, the first time it has used such agreements since June.
The central bank is draining funds from the financial system as lower money market rates signal abundant supplies of yuan amid government efforts to clean up risky lending practices.
Later on, the US consumer confidence reading for February will be unveiled and is expected to fall slightly to 80 from 80.7 the prior month.
Italy, Ukraine
Italy's youngest ever Prime Minister, Matteo Renzi, won a vote of confidence in the upper house of parliament yesterday, paving the way for much needed economic reforms. Another confidence vote will be held in the lower house, or chamber of deputies, today. However, unlike in the senate, the Renzi's centre-left Democratic party (PD) enjoys a clear majority.
In Ukraine, lawmakers today will vote on a national unity government so the troubled nation can receive economic aid to prevent a default. The temporary government in Kiev said it needs $35bn financial assistance. The vote comes amid violence and instability in Ukraine.
Vivendi, Fresenius
Vivendi declined after the French media and telecoms business reported 2013 results that fell short of analysts' expectations.
Aixtron edged lower as the German maker of equipment for semiconductors reported fourth-quarter sales below forecasts.
Fresenius Medical Care slid as the world's biggest provider of kidney dialysis posted full-year earnings that missed market forecasts.
Straumann Holding gained after the world's biggest maker of dental implants reported a increase in 2013 earnings and said it expects revenue will rise in a low-single-digit range in 2014.
The euro rose 0.12% to $1.3752.
Brent crude futures dropped $0.381 to $110.220 per barrel, according to data from the ICE. |
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| | US Market Report | | US close: S&P 500 pulls back from record levels - Yellen receives credit for speech at G20
- Markit services PMI retreats in February, due to weather
- S&P 500 erases losses for the year
Dow Jones Industrials: 0.64%
Nasdaq Composite: 0.69%
S&P 500: 0.64%
The main US equity benchmarks ended the day on the up but off their best levels of the session.
At 1,847.71 points the S&P 500 ended trading just below its previous record close of 1,848.38, after having established a fresh intra-day record.
That came after Federal Reserve Chair Janet Yellen smoothed over concerns about the impact monetary stimulus tapering would have on emerging markets.
Yellen, who took over from Ben Bernanke early this month, indicated that the central bank would continue to scale back asset purchases at each policy meeting until ending the programme all together later this year.
The move raised fears that it would hurt the recovery of emerging markets amid weakening prices.
However, in her first global forum as Chair, Yellen won praise for helping to ease such concerns at the Group of 20 Finance Ministers meeting in Sydney over the weekend.
The S&P 500´s rise on Monday might be linked to the above. The benchmark gauge set a new intraday high and erased all of its losses for the year in afternoon trading.
Sydney, India and South Africa were among the nations urging the Fed to consider the spillover effects of withdrawing stimulus.
Australian Treasurer Joe Hockey said Yellen was "hugely impressive" in dealing with the issue. "There was proper recognition that the movement of monetary policy in major developed countries either way, whether it be tightening or easing, is going to have an impact on emerging economies," he said in a speech.
It was a generally quiet day for macroeconomics with the focus on company news.
From a sector stand-point the best performance was seen in the following industrial groups: Gambling (3.55%), Oil equipment (2.38%) and Healthcare (2.24%).
Comcast Corp. rallied following reports Netflix has agreed to pay for direct access to the cable company's broadband network. Netflix, on the other hand, declined.
Humana Inc. slumped as the US government proposed cutting payments made under the Medicare Advantage programme for 2015.
Chesapeake Energy Corp. advanced after the US natural gas producer announced plans to either sell or spin off its oilfield-services unit.
Services PMI retreats as activity hit by weather
Survey compiler Markit´s preliminary service sector Purchasing Managers´ Index for the month of February slipped to a reading of 52.7 from 56.7 in the month before. Markit attributed the drop-off seen in production to the impact of adverse weather.
Front month West Texas crude futures were lower by 0.41% to the $102.41/barrel mark on the NYMEX.
10-year US Treasury yields retreated by one basis point to 2.74%.
S&P 500 - Risers
Humana Inc. (HUM) $113.69 +10.57%
Dun & Bradstreet Corp. (DNB) $99.72 +4.38%
Pioneer Natural Resources Co. (PXD) $194.74 +4.09%
Regeneron Pharmaceuticals Inc. (REGN) $347.62 +3.77%
Noble Energy Inc. (NBL) $69.33 +3.69%
Netflix Inc. (NFLX) $447.00 +3.42%
Baker Hughes Inc. (BHI) $63.08 +3.38%
First Solar Inc. (FSLR) $57.75 +3.25%
Facebook Inc. (FB) $70.78 +3.19%
Wynn Resorts Ltd. (WYNN) $235.59 +3.17%
S&P 500 - Fallers
Sears Holdings Corp. (SHLD) $38.05 -7.04%
Cintas Corp. (CTAS) $59.52 -3.47%
United States Steel Corp. (X) $24.16 -3.36%
Monsanto Co. (MON) $108.97 -3.09%
Mohawk Inds Inc. (MHK) $139.24 -2.93%
Cliffs Natural Resources Inc. (CLF) $21.35 -2.82%
AES Corp. (AES) $14.27 -2.46%
Pitney Bowes Inc. (PBI) $24.68 -1.71%
Autodesk Inc. (ADSK) $54.47 -1.68%
Mylan Inc. (MYL) $51.05 -1.68%
Dow Jones I.A - Risers
Unitedhealth Group Inc. (UNH) $76.01 +2.98%
Nike Inc. (NKE) $77.84 +1.78%
Pfizer Inc. (PFE) $31.99 +1.68%
Exxon Mobil Corp. (XOM) $96.44 +1.48%
General Electric Co. (GE) $25.29 +1.40%
American Express Co. (AXP) $89.92 +1.32%
Chevron Corp. (CVX) $114.15 +1.30%
Visa Inc. (V) $226.19 +1.27%
Goldman Sachs Group Inc. (GS) $166.54 +1.24%
Boeing Co. (BA) $129.59 +1.02%
Dow Jones I.A - Fallers
Verizon Communications Inc. (VZ) $46.54 -1.54%
AT&T Inc. (T) $32.47 -1.01%
Microsoft Corp. (MSFT) $37.69 -0.76%
Johnson & Johnson (JNJ) $91.11 -0.45%
E.I. du Pont de Nemours and Co. (DD) $64.58 -0.45%
Travelers Company Inc. (TRV) $83.44 -0.42%
Caterpillar Inc. (CAT) $97.32 -0.18%
Procter & Gamble Co. (PG) $77.86 -0.14%
Cisco Systems Inc. (CSCO) $22.12 -0.05%
Nasdaq 100 - Risers
Vodafone Group Plc ADS (VOD) $41.20 +5.64%
Tesla Motors Inc (TSLA) $217.65 +3.84%
Regeneron Pharmaceuticals Inc. (REGN) $347.62 +3.77%
Netflix Inc. (NFLX) $447.00 +3.42%
Facebook Inc. (FB) $70.78 +3.19%
Wynn Resorts Ltd. (WYNN) $235.59 +3.17%
eBay Inc. (EBAY) $56.30 +3.13%
PACCAR Inc. (PCAR) $64.19 +2.92%
Ross Stores Inc. (ROST) $69.27 +2.70%
Illumina Inc. (ILMN) $178.53 +2.57%
Nasdaq 100 - Fallers
Autodesk Inc. (ADSK) $54.47 -1.68%
Mylan Inc. (MYL) $51.05 -1.68%
CH Robinson Worldwide Inc (CHRW) $53.34 -1.44%
Liberty Interactive Corp (LINTA) $29.45 -1.41%
Sba Communications Corp. (SBAC) $95.90 -1.37%
Micron Technology Inc. (MU) $24.75 -1.32%
Green Mountain Coffee Roasters Inc. (GMCR) $121.49 -1.26%
Charter Communications Inc. (CHTR) $123.58 -1.20%
Nxp Semiconductors Nv (NXPI) $55.55 -1.07%
Vertex Pharmaceuticals Inc. (VRTX) $83.95 -1.01% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: HSBC, Fukushima, US defence cuts More than 600 senior bankers and star dealmakers at HSBC will be paid six or seven-figure 'allowances' designed to bypass the European Commission's crackdown on excessive bonuses. In some cases, the new payments will be bigger than base pay, with Stuart Gulliver, the chief executive, due to receive an allowance of pounds 1.7m on top of his 1.25m pound base salary. – The Times
More than a year after taking office with a vague promise to "rethink" Japan's post-Fukushima repudiation of nuclear power, the government of Shinzo Abe is poised to formally reverse course and declare a long-term commitment to atomic energy. The draft of a new Basic Energy Plan, made public on Tuesday, calls nuclear power an "important baseload electricity source" and effectively reverses a decision made by a previous government in 2012 to close all of Japan's atomic power plants over the next several decades. – Financial Times
Chuck Hagel, the US defence secretary, announced steep cuts to the army and to several weapons programmes on Monday in order to meet lower budgets, but his proposed changes are likely to generate strong opposition from Congress in an election year. Outlining what he described as the "difficult choices" now facing the Pentagon, Mr Hagel also called for a new round of base closures and for limits to the benefits being offered to active and retired members of the military. – Financial Times
The boss of Lloyd's of London insurer Hiscox has slammed plans to overhaul the way insurance is provided for flood-prone homes as "unfair and unworkable". The company said the Flood Re proposals, which have been drawn up by the Government and insurance industry, will end up discriminating against homeowners across the country if they are enforced next year, as expected. – The Independent
SSE has withdrawn planning applications for two wind farm projects on land in Scotland due to financial reasons. The firm had submitted planning applications to the Scottish government to build an 81-megawatt (MW) Dalnessie wind farm in Sutherland and for an extension to its 36MW Fairburn wind farm in Ross-shire. The firm said that continued investment in developing the projects was no longer financially viable. – Daily Telegraph
Nokia has risked the fury of soon-to-be owner Microsoft with a controversial deal to run its new phone on Google's software. Microsoft is only days away from taking over Nokia's handset division in a £4.6bn deal. Until now Nokia's smartphones have run on Windows technology, which is made by Microsoft. But in a bombshell announcement yesterday the Finnish group said its latest model, the Nokia X, would run on Android, the operating system made by Microsoft's arch rival Google. – Daily Mail | | |
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