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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 close: FTSE falls as Morrison, China, and Ukraine weigh sentiment - FTSE closes down 67.12 at 6,553.78
- UK house prices ease in February
- Supermarkets drag
- BoE announced banking bonus reforms
techMARK 2,786.87 -1.08%
FTSE 100 6,553.78 -1.01%
FTSE 250 16,186.23 -0.86%
UK stocks finished sharply lower, dragged by supermarkets, woes about Chinese growth, and reports Russia was moving its troops closer to Ukraine.
The FTSE 100 closed down 67.12 points at 6,553.78.
The New York Times said today that "in Moscow, the military acknowledged significant operations involving armoured and airborne troops in the Belgorod, Kursk and Rostov regions abutting eastern Ukraine".
Meanwhile, the US Secretary of State has said it is unclear whether or not Russia will annex Crimea, commenting that, "if Russia continues on its course of the past weeks, it will not only be a catastrophe for Ukraine".
"We, also as neighbours of Russia, would not only see it as a threat. And it would not only change the European Union's relationship with Russia. No, this would also cause massive damage to Russia, economically and politically."
Crimea is due to hold a referendum in three days but the Group of Seven leaders has issued a statement saying it is illegal and would not be recognised by the international community.
US President Barack Obama met Ukraine's interim Prime Minister Arseniy Yatsenyuk at the White House yesterday. Obama said "the international community - the European Union and others- will be forced to apply a cost to Russia's violations of international law and its encroachments on Ukraine".
Sentiment hit as Chinese figures point to slowdown
Nerves about a sharper than expected slowdown in China exports in February intensified after data published overnight showed further weakness in the world's second-largest economy.
January industrial production growth eased to 8.6% year-on-year from the previous month's 9.7% growth rate.
A separate report showed China's retail sales improved less than expected, logging an annual rise of just 11.8% versus the previous increase of 13.6%. Analysts expected a growth rate of 13.5%.
Nikolaus Keis, an Economist at UniCredit Research, said the figures came as a "huge disappointment".
OECD unemployment rate stable at 7.6% in January
The jobless rate in the developed world held at bay in January, with the 20 largest economies remaining at 7.6%, according to the Organisation for Economic Co-operation and Development (OECD).
A total of 46.2m people were unemployed, 3.8m less than at the peak reached in April 2010, although 11.5m more than in July 2008. In the Eurozone alone, the rate was unchanged at 12%.
In other news, the Bank of England has announced that bankers may be liable to repay bonuses as many as six years after receiving them, in the event of "misbehaviour", big losses, or poor management.
UK house prices ease in February, RICS reveals
UK house prices rose in February at the slowest pace in six months due to bad weather, a survey revealed on Thursday.
The Royal Institution of Chartered Surveyors (RICS) said its main house price balance measure last month came to +45, compared to +52 in January, downwardly revised from +53 reported earlier.
It missed forecasts for the reading to remain unchanged. However, RICS said the easing could be down to the exceptionally wet weather in the UK, which could have deterred people from going out to view houses.
In lighter news, video streaming services will be added to the basket of goods and services used to measure consumer price inflation (CPI) each month, but DVD recorders will be left out, the Office for National Statistics (ONS) revealed today.
The move was part of the annual review of the list of items included in the basket to ensure CPI reflects current consumer spending as closely as possible.
Morrison leads supermarkets lower after 'disappointing' results
WM Morrison's share price dropped today after it issued a disappointing set of full-year results, with like-for-like sales falling 2.8 per cent. Chairman Sir Ian Gibson admitted that the company had been slow to adapt to the changing UK grocery market.
The supermarket chain guided to an underlying pre-tax profit of £325-375m this year, some 30-40% below what the market was expecting, as it unveiled a £1bn investment programme.
Larger supermarket groups J Sainsbury and Tesco also declined sharply after the statement, along with Morrison's online joint venture Ocado, which extended losses after disappointing the market with its own results yesterday. Sainsbury was also hit by a target reduction by Jefferies, from 410p to 350p.
Department store Marks & Spencer, which has a large food offering, also fell.
G4S was also in the red after Panmure Gordon trimmed its target from 200p to 185p after lowering its forecasts following an analyst meeting with the firm.
Antofagasta was also lower after Investec cut its target from 764p to 753p and retained a 'sell' recommendation.
Meanwhile, B&Q-owner Kingfisher rose on positive readacross from Homebase and Argos-owner Home Retail Group, which said that annual profits would come in ahead of the top end of market expectations.
Centrica also climbed strongly after HSBC upgraded the stock to 'overweight' on the back of the outlook for its upstream prospects.
Barclays was higher after Numis upped its target from 274p to 280p and upgraded the stock from 'hold' to 'add'. |
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FTSE 100 - Risers
Centrica (CNA) 334.80p +2.10%
Kingfisher (KGF) 407.40p +1.12%
Barclays (BARC) 235.65p +0.81%
Smith & Nephew (SN.) 923.50p +0.71%
Randgold Resources Ltd. (RRS) 4,957.00p +0.61%
Hammerson (HMSO) 552.00p +0.46%
Johnson Matthey (JMAT) 3,057.00p +0.43%
British Land Co (BLND) 673.00p +0.30%
BG Group (BG.) 1,070.50p +0.09%
Petrofac Ltd. (PFC) 1,353.00p +0.07%
FTSE 100 - Fallers
Morrison (Wm) Supermarkets (MRW) 205.20p -11.93%
Sainsbury (J) (SBRY) 304.90p -8.49%
Tesco (TSCO) 298.75p -4.98%
Ashtead Group (AHT) 903.50p -4.44%
Marks & Spencer Group (MKS) 458.80p -3.12%
Mondi (MNDI) 1,068.00p -3.09%
Royal Mail (RMG) 570.50p -3.06%
International Consolidated Airlines Group SA (CDI) (IAG) 432.90p -2.68%
SABMiller (SAB) 2,779.00p -2.64%
Tullow Oil (TLW) 779.50p -2.56%
FTSE 250 - Risers
Home Retail Group (HOME) 215.40p +5.02%
Bwin.party Digital Entertainment (BPTY) 126.60p +3.69%
Man Group (EMG) 106.00p +3.52%
Pace (PIC) 483.50p +2.87%
Millennium & Copthorne Hotels (MLC) 595.00p +1.97%
Hikma Pharmaceuticals (HIK) 1,557.00p +1.96%
Euromoney Institutional Investor (ERM) 1,264.00p +1.94%
Hiscox Ltd (HSX) 683.50p +1.41%
PayPoint (PAY) 1,165.00p +1.30%
Synthomer (SYNT) 260.50p +1.28%
FTSE 250 - Fallers
Northgate (NTG) 543.00p -6.86%
Ocado Group (OCDO) 502.50p -6.77%
Genus (GNS) 1,074.00p -5.95%
Fenner (FENR) 393.40p -4.84%
Vedanta Resources (VED) 794.50p -4.68%
RPS Group (RPS) 314.50p -4.44%
Oxford Instruments (OXIG) 1,275.00p -4.14%
Ferrexpo (FXPO) 138.40p -4.02%
Hunting (HTG) 826.50p -3.62%
Kazakhmys (KAZ) 270.00p -3.54%
FTSE TechMARK - Risers
Filtronic (FTC) 52.75p +8.21%
Ark Therapeutics Group (AKT) 0.51p +3.06%
Skyepharma (SKP) 199.75p +2.44%
Phoenix IT Group (PNX) 121.00p +2.11%
Sarossa Capital (SRC) 1.77p +1.43%
Optos (OPTS) 201.00p +0.63%
Vectura Group (VEC) 157.25p +0.32%
IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 185.46 +0.26%
NCC Group (NCC) 222.00p +0.23%
SDL (SDL) 381.75p +0.20%
FTSE TechMARK - Fallers
Gresham Computing (GHT) 134.00p -2.90%
Innovation Group (TIG) 33.75p -2.88%
Promethean World (PRW) 34.50p -2.82%
Wolfson Microelectronics (WLF) 119.25p -2.25%
Dialight (DIA) 870.50p -1.58%
Anite (AIE) 82.75p -1.49%
BATM Advanced Communications Ltd. (BVC) 16.75p -1.47%
Kofax Limited (DI) (KFX) 524.50p -1.13%
Torotrak (TRK) 22.88p -1.08%
Consort Medical (CSRT) 969.50p -1.07% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks fall as Russia shows no sign of backing down - US and German step up pressure on Russia
- Bundesbank lifts German growth forecast
- French inflation rebounds
- US retail sales rise, jobless claims fall
FTSE 100: -1.01%
DAX: -1.86%
CAC 40: -1.29%
FTSE MIB: -0.91%
IBEX 35: -1.19%
Stoxx 600: -1.05%
European stocks slumped as the US and Germany stepped up pressure on Russia to withdraw plans to annex Crimea from Ukraine.
Western leaders are working on sanctions to force President Vladimir Putin to put an end to the turmoil in Ukraine.
Crimea is due to hold a referendum in three days but the Group of Seven leaders issued a statement saying it was not legal and would not be recognised by the international community.
US President Barack Obama met Ukraine's interim Prime Minister Arseniy Yatsenyuk at the White House yesterday. Obama said "the international community - the European Union and others- will be forced to apply a cost to Russia's violations of international law and its encroachments on Ukraine".
Also weighing on stocks today was weak Chinese data, including industrial output, retail sales and fixed-asset investment, which fuelled concerns of a slowdown in the world's second largest economy.
"China's central bank seems to be prepared to take its strongest action since 2012 to loosen monetary policy if economic growth slows further towards 7%," said UniCredit.
"Authorities will probably wait another month for sentiment and activity data before reacting. But a RRR cut is clearly in the cards and we also expect some selective fiscal measures to prevent a severe growth slowdown. Whether this will succeed in preventing a severe growth slowdown remains to be seen."
Bundesbank raises German growth forecast
Germany's economic growth is likely to increase in 2014 and 2015, driven by consumer spending, Deutsche Bundesbank said.
Jens Weidmann, President of the Deutsche Bundesbank said Germany's low unemployment and wage growth combined with record low interest rates in the Eurozone are fuelling housing construction in particular.
In other European news, French consumer prices rebounded in February by 0.6% month-on-month after falling 0.6% in January. The monthly increase in February was slightly below the 0.7% market forecast. On a year-on-year basis inflation increased three percentage points (pp) to 1.1% compared to market expectations of 1%.
Italian inflation was revised down 0.1pp to 0.4% year-on-year in February, down 0.2pp from January, its lowest level since September 2009.
Meanwhile, the jobless rate in the developed world held at bay in January, with the 20 largest economies remaining at 7.6%, according to the Organisation for Economic Co-operation and Development (OECD).
A total of 46.2m people were unemployed, 3.8m less than at the peak reached in April 2010, although 11.5m more than in July 2008. In the Eurozone alone, the rate was unchanged at 12%.
US retail sales rise
US retail sales climbed 0.3% on the month in February after a revised 0.6% fall in January, ending two straight months of declines, the Commerce Department revealed. Analysts had been expected an increase of 0.2%.
Separately, the Labor Department said the number of Americans filing for new claims for jobless benefits last week unexpectedly dropped 9,000 to a seasonally adjusted 315,000. The consensus estimate had been for 330,000 claims.
The Federal Reserve has been monitoring economic data ahead of its policy meeting next week. The central bank is widely expected to announce another $10bn reduction to its monthly bond buying programme.
Morrison leads supermarkets lower
Morrison Supermarkets declined after the UK grocer reported a drop in annual profits and said it would sell £1bn in property over the next three years. It dragged other retail stocks lower including Sainsbury and Tesco.
K+S AG slumped as Europe's largest potash supplier forecast a "significant" drop in earnings this year due to lower margins.
Deutsche Lufthansa gained as Europe's second-largest airline said it will pay a dividend of €0.45 a share.
Adecco dropped after its largest investor said it will sell about 16% in the provider of temporary workers.
Delhaize Group slipped after the owner of the Food Lion supermarkets predicting lower profitability in Belgium.
Royal Boskalis Westminster was higher after posting a rise in 2013 revenue that exceeded projections.
The euro rose 0.06% to $1.3912.
Brent crude fell $0.643 to $107.330 per barrel, according to the ICE. |
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| | US Market Report | | US open: Upbeat jobs data boost stocks US stocks gained as reports showed retail sales rose and unemployment claims dropped and in the world's biggest economy.
Retail sales climbed 0.3% on the month in February after a revised 0.6% fall in January, ending two straight months of declines, the Commerce Department revealed. Analysts had been expected an increase of 0.2%.
Capital Economics, however, said the sales should have rebounded much more rapidly if the bad weather that was blamed for hurting results in previous months was no longer an issue.
"Looking ahead, there is clearly scope for more of the demand pent during the bad weather to be released. And in the meantime, at least spending on services is being boosted by more demand for heating and previously uninsured people taking advantage of the health insurance policies they have been enrolling in since October."
Meanwhile, the Labor Department said the number of Americans filing for new claims for jobless benefits last week unexpectedly dropped 9,000 to a seasonally adjusted 315,000. The consensus estimate had been for 330,000 claims.
Claims for the previous week were revised to show 1,000 more applications received than previously reported.
"This number hasn't had that much impact on the market in recent months as people are more concerned about job creation now that the recovery has begun, rather than layoff's. That said, big swings in the figure away from the average is generally going to have some impact and right now, the markets need something positive to latch onto," said Market Analyst Craig Erlam from Alpari.
Another report from the Bureau of Labor Statistics revealed US import prices increased by 0.9% on the month in February (1.1% year-on-year). The consensus estimate had been for a gain of 0.6% month-on-month.
The Federal Reserve has been monitoring economic data ahead of its policy meeting next week. The central bank is widely expected to announce another $10bn reduction to its monthly bond buying programme.
Williams-Sonoma, Krispy Kreme
Williams-Sonoma advanced as the seller of cookware and home furnishings predicted sales this year will increase more than expected by analysts.
Krispy Kreme Doughnuts gained after boosting its 2015 fiscal year forecast.
Activision Blizzard jumped after Bank of America Corp. raised its rating on the US video-game publisher to 'buy' from 'neutral'. |
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| | Thursday broker round-up | | Advanced Medical Solutions: FinnCap ups target from 75p to 114p retaining its hold recommendation.
Antofagasta: Investec cuts target from 764p to 753p and retains a sell recommendation.
Barclays: Numis shifts target from 274p to 280p upgrading from hold to add.
BBA Aviation: JP Morgan takes target from 378p to 386p retaining an overweight rating.
Bodycote: N+1 Singer raises target from 700p to 850p and maintains a buy recommendation.
bwin.party: Panmure Gordon reduces target from 202p to 138p and downgrades from buy to hold.
Computacenter: JP Morgan ups target from 660p to 700p and leaves its neutral rating unaltered.
Diageo: Espirito Santo reduces target from 2250p to 2010p, while leaving its buy recommendation unchanged.
Euromoney: Westhouse Securities upgrades to neutral with a target of 1100p.
Ferrexpo: Jefferies cuts target from 200p to 165p and keeps a hold recommendation. Deutsche Bank moves target from 341p to 352p and leaves its buy recommendation unchanged. JP Morgan lowers target from 150p to 135p and stays with its underweight rating. Numis upgrades from hold to buy with a target of 190p. UBS cuts target from 190p to 150p and maintains a neutral rating.
Gem Diamonds: Panmure Gordon moves target from 170p to 186p and retains a hold recommendation.
G4S: Citi cuts target from 270p to 250p and stays with its neutral rating. Goldman Sachs lowers target from 193p to 175p keeping a strong sell recommendation. JP Morgan reduces target from 310p to 288p leaving its overweight rating unchanged. Panmure Gordon cuts target from 200p to 185p and stays with its sell recommendation.
Hochschild Mining: Westhouse Securities lowers target from 185p to 175p and retains a neutral rating. JP Morgan raises target from 155p to 205p and reiterates a neutral rating. Numis ups target to 130p, while downgrading from hold to sell.
London Mining: Investec lowers target from 135p to 129p and keeps a buy recommendation.
Majedie Investments: Westhouse Securities initiates with a buy recommendation.
Moneysupermarket: JP Morgan shifts target from 211p to 217p and keeps an overweight rating.
Morrison (Wm): Bank of America cuts target from 270p to 245p, while its buy recommendation remains unchanged.
Perform Group: JP Morgan moves target from 302p to 311p and keeps its overweight rating.
Reckitt Benckiser: Espirito Santo raises target from 3890p to 4030p, but still recommends selling.
Restaurant Group: Barclays increases target from 675p to 750p and reiterates an overweight rating.
SAB Miller: Espirito Santo lowers target from 2100p to 2090p keeping a sell recommendation.
Sainsbury: Jefferies reduces target from 410p to 350p and stays with its hold recommendation.
Stock Spirits Group: Berenberg moves target from 310p to 325p maintaining a buy recommendation.
Travis Perkins: Cantor Fitzgerald increases target from 1950p to 2100p and reiterates a buy recommendation.
Trinity Mirror: Numis ups target from 265p to 280p and keeps a buy recommendation.
Tyman: Berenberg ups target from 327p to 350p and keeps a buy recommendation. | | |
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