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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: Markets higher after Putin signs Russia-Crimea treaty - Putin says not interested in break-up of Ukraine
- Russia to incorporate Crimea
- Antofagasta down despite tripling expectations for dividend
- Resolution sinks sharply as founders step down
- ASOS, Speedy Hire plummet after updates
techMARK 2,801.57 +0.19%
FTSE 100 6,601.92 +0.51%
FTSE 250 16,357.11 +0.37%
UK stocks had erased their losses managing to end the session in the blue as traders breathed a sigh of relief that Russia does not intend a further break-up of Ukraine, possibly the worst scenario market watchers were entertaining.
It remains to be seen, however, if new sanctions will be forthcoming from the European Union and the US which might lead to renewed tensions in financial markets.
The FTSE 100, which had dropped to an intraday low of 6,535 early on, traded up 0.19% to 6,590 by the close of trading on Tuesday.
Following Sunday's referendum in Crimea, which saw locals vote overwhelmingly to join the Russian Federation, Putin called for a treaty to accept the accession, defying sanctions imposed by European Union (EU)and US leaders yesterday who labelled the vote as illegal.
Putin said that Moscow felt "robbed" when Crimea, historically a Russian region, was "handed over like a sack of potatoes" to Ukraine in 1954.
He praised the Crimean voters, saying that the "referendum is of a vital and historical importance", and stressed that the vote was fully in line with international law, but added that his intention is not to further encroach on Ukrainian territory.
Antofagasta and Sainsbury erase early gains, Resolution sinks
Defence contractor BAE Systems led gains after RBC Capital Markets lifted its rating on the stock to 'outperform' and raised its target from 450p to 490p.
Heading the other way was insurance group Resolution, after announcing that two of its founders, Clive Cowdery and John Tiner, are stepping down from the board given that the company has completed its restructuring programme. Resolution, which now intends to change its name to Friends Life Group, reported a big jump in profits for 2013 but left its dividend unchanged.
After an earlier rise, copper miner Antofagasta finished in the red after missing estimates with its 2013 earnings as results were hampered by depressed metal prices and by the impact from larger than forecast withholding taxes as a result of a dividend pay-out which was triple analysts estimates.
Supermarket chain J Sainsbury was higher but had also came off its highs after a tougher-than-expected fourth quarter which saw like-for-like sales fall 3.8%.
Cairn Energy fell sharply after widening its annual loss, reflecting unsuccessful exploration costs and the disposal of assets. It also said it is suspending its share buy-back programme.
Outside the FTSE 350, online fashion retailer ASOS was a big mover, sinking sharply after saying that sales growth in the first two months of the year slowed more than expected and margins would be dented by increased spend on warehousing and its new Chinese operations.
Shares of Speedy Hire also tumbled after the equipment and tool rental firm said adjusted pre-tax profit for the year ending March 31st is now expected to be "in the region of £14.5m". This is down from £16.8m the previous year and well under current consensus estimates for a figure of around £17.8m. |
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FTSE 100 - Risers
BAE Systems (BA.) 407.00p +2.65%
ITV (ITV) 203.00p +2.63%
Barclays (BARC) 236.05p +2.16%
Carnival (CCL) 2,429.00p +2.02%
Schroders (SDR) 2,650.00p +1.96%
ARM Holdings (ARM) 982.50p +1.92%
G4S (GFS) 240.60p +1.86%
Coca-Cola HBC AG (CDI) (CCH) 1,512.00p +1.82%
Ashtead Group (AHT) 939.00p +1.79%
British American Tobacco (BATS) 3,256.50p +1.75%
FTSE 100 - Fallers
Resolution Ltd. (RSL) 351.00p -5.92%
Fresnillo (FRES) 881.50p -4.65%
Next (NXT) 6,570.00p -2.16%
Antofagasta (ANTO) 829.50p -2.12%
Randgold Resources Ltd. (RRS) 4,884.00p -1.71%
Associated British Foods (ABF) 2,801.00p -1.37%
Sports Direct International (SPD) 850.00p -0.99%
Kingfisher (KGF) 410.60p -0.85%
easyJet (EZJ) 1,625.00p -0.67%
Mondi (MNDI) 1,080.00p -0.37%
FTSE 250 - Risers
Evraz (EVR) 60.45p +9.41%
Henderson Group (HGG) 250.20p +4.82%
Essar Energy (ESSR) 66.80p +3.81%
Ferrexpo (FXPO) 147.40p +3.58%
Ted Baker (TED) 2,184.00p +3.26%
Domino's Pizza Group (DOM) 541.50p +3.14%
Bellway (BWY) 1,629.00p +3.10%
Imagination Technologies Group (IMG) 164.20p +2.82%
Interserve (IRV) 660.00p +2.80%
Ashmore Group (ASHM) 307.00p +2.78%
FTSE 250 - Fallers
Cairn Energy (CNE) 167.80p -14.61%
Xaar (XAR) 905.00p -9.27%
Kenmare Resources (KMR) 14.10p -6.00%
Moneysupermarket.com Group (MONY) 186.70p -4.74%
Tullett Prebon (TLPR) 299.40p -3.33%
Dairy Crest Group (DCG) 495.00p -3.32%
Keller Group (KLR) 1,026.00p -2.19%
Ophir Energy (OPHR) 295.10p -1.99%
888 Holdings (888) 143.60p -1.91%
Hunting (HTG) 828.50p -1.54% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks rise after Putin signs treaty to annex Crimea - Putin signs treaty to annex Crimea
- German investor confidence falls
- US inflation rises in line
- US housing starts drop
FTSE 100: 0.56%
DAX: 0.67%
CAC 40: 0.97%
FTSE MIB: 0.86%
IBEX 35: 0.70%
Stoxx 600: 0.64%
European stocks rallied as Russian President Vladimir Putin signed a treaty to annex Crimea from Ukraine but said Moscow will work to rebuild ties with its neighbour.
The treaty paves the way for Crimea to re-join Russia, after Nikita Kruschev handed the nation over to Ukraine in 1954.
"It was such an historical unfairness, at that moment Crimea was handed over to Ukraine but now all of this is in the past," Putin said in a speech today.
Putin dismissed sanctions by the US and Europe, saying the West had "crossed the line".
He said he hopes to mend the relationship with Ukraine as it was "vitally important" for both sides.
"Traders had previously been concerned that any sanctions made against Russia could provoke a retaliation from the Kremlin, but this does not look likely," said Craig Erlam, Analyst at Alpari UK.
"Not only were the sanctions by the US and the European Union on 11 and 21 Russian and Crimean officials, respectively, viewed as weak by the markets, Putin did not appear concerned about them in the slightest. In fact, he didn't even mention them in his address before Parliament."
German investor confidence
German investor confidence fell to the lowest since August as political turmoil between Ukraine and Russia threatened to weigh on Europe's biggest economy.
The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to forecast economic developments six months in advance, slid to 46.6 from 55.7 in February. Economists had predicted a reading of 52.
ZEW said the Crimea crisis had weighed on the outlook for the economy.
The research institute's economic sentiment index for the Eurozone fell to 61.5 in March from 68.5 a month earlier.
US inflation
US consumer prices rose by 0.1% in February, in line with January's reading and the consensus estimate. However, the annual rate of inflation fell to 1.1% from 1.6% in the month before, below the 1.2% forecast.
US building permits surged by 7.7% to 1.02m, up from a revised 945,000 in the month before and ahead of the 960,000 forecast.
US housing starts fell by just 0.2% last month to reach an annualised rate of 907,000, close to analysts' expectations of 910,000, while January's reading was upwardly revised to 909,000.
The Federal Reserve today kicked off its two-day policy meeting after which the central bank is expected to announce a $10bn cut to its monthly bond purchases.
Kuoni Reisen climbs
Kuoni Reisen advanced as the Swiss travel company posted 2013 profits that beat analysts' forecasts.
Cairn Energy dropped after saying it is suspending a share buyback programme as it resolves its tax dispute over its Indian arm.
Scania slumped as a board committee reviewing Volkswagen's takeover offer said the bid was too low.
SBM Offshore gained as the The Wall Street Journal reported that the Dutch supplier of floating oil and gas rigs doesn't see any indications of improper sales practices in Brazil.
Resolution edged lower as the British life insurer announed plans to change its name to Friends Life.
The euro fell 0.09% to $1.3910.
Brent crude futures rose $0.394 to $106.660 per barrel, according to the ICE. |
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| | US Market Report | | US open: Stocks rise as Putin moves to annex Crimea - Putin has no intention to expand presence in Ukraine
- Housing starts flat, building permits jump
- CPI unchanged at 0.1 per cent in February
Dow Jones: 0.64%
Nasdaq: 0.77%
S&P 500: 0.60%
US markets followed their European counterparts higher on Tuesday after Russian President Vladimir Putin said that Moscow has no plans to send its troops further into Ukraine after annexing Crimea.
Broadly flat housing starts and a jump in forward-looking housing permits were also lifting sentiment in New York as data showed that the adverse impact from the severe winter weather could be starting to fade.
The Dow Jones Industrial Average rose 0.6% to 16,352, the Nasdaq gained 0.8% to 4,313, while the S&P 500 was trading 0.6% higher at 1,781.
"Equities are making a tentative move higher on news that Mr Putin, for now, does not intend to carve up any more of Ukraine, putting both ease and money back into risk assets," said Trader David White from Spreadex.
Following Sunday's referendum, which saw Crimean locals vote overwhelmingly to join Russia, Putin and other officials signed a treaty to accept the accession, defying sanctions imposed by European Union (EU) and US leaders yesterday who labelled the vote as illegal.
"Crimea is our common property and a very important factor in the stability of the region," he said. "This strategic territory should be under a strong, sovereign state and that in fact can only be Russia."
Building permits jump, housing starts flat
US building permits surged by 7.7% to 1.02m, up from a revised 945,000 the month before and ahead of the 960,000 forecast.
US housing starts fell by just 0.2% last month to reach an annualised rate of 907,000, close to analysts' expectations of 910,000, while January's reading was upwardly revised to 909,000.
Analyst Cooper Howes from Barclays Research said that he still views housing as being in a "recovery phase", though the market has been negatively affected by higher mortgage rates since last year and adverse weather at the start of 2014.
"To the extent that the softness in January and February was driven by these weather effects, we would expect to see a reversal [in housing starts] in the coming months, most likely in the second quarter," he said.
US consumer prices rose by 0.1% in February, in line with January's ready and the consensus estimate. However, the annual rate of inflation fell to 1.1% from 1.6% the month before, below the 1.2% forecast.
GameStop falls on Wal-Mart move
Retail titan Wal-Mart edged higher today after saying that it will allow customers to trade in used videogames for gift cards to spend in store or online.
The move prompted a big fall in GameStop's share price on concerns that it could erode its dominance in the $2bn used videogame market. Best Buy which also buys used videogames, was also trading lower.
Qiagen, the maker of diagnostic equipment, gained after Berenberg Bank lifted its rating on the stock today to 'buy'. Fashion group Michael Kors Holdings declined as Barclays started coverage of the shares with an 'underweight' recommendation.
Software giants Oracle and Adobe Systems are likely to be in focus ahead of their earnings due out after the close. |
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| | Broker Tips | | Broker tips: Schroders, Sainsbury, Antofagasta, RSA Credit Suisse has lifted its target for Schroders from 2,810p to 2,900p after the asset manager beat consensus forecasts with its 2013 results earlier this month.
However, the bank maintained its 'neutral' recommendation on the shares, saying that while it sees improving flow momentum in 2014 it is already reflected in forecasts and the stock's valuation.
Jefferies has retained its 'hold' rating and 350p target for J Sainsbury, saying that the supermarket chain's fourth-quarter trading update shows "weakening trends".
"Ultimately it looks like the combination of discounter growth and lack of volume response to lower inflationary pressures may be catching up with Sainsbury, as it has already with the other UK majors."
Canaccord Genuity has reiterated its 'buy' recommendation and 1,030p target for Antofagasta, highlighting the large positive dividend surprise announced alongside the copper miner's 2013 results.
Analyst Peter Mallin-Jones said: "The very high dividend payout meant much higher-than-expected withholding tax charges in the year pushing down the reported net income well below our and consensus estimates. Of earnings misses to have, we think one caused by paying out extra tax triggered by a dividend 3.6 times larger than expected is likely to be a palatable one."
Berenberg has trimmed its target for RSA Insurance from 112p to 92.6p and kept a 'hold' rating, saying there is plenty more to do in the company's turnaround.
Berenberg said that while the "relatively weak" UK business is set to be restructured "it may not be straightforward to improve profitability". Meanwhile, even though the company has improved its balance sheet, its strength still trails that of its peers. | | |
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