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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: Impact of Budget felt on FTSE - FTSE closes down 32 points at 6,573
- Focus on Budget, unemployment remains unchanged
- Jan Eurozone construction output up by 1.5 per cent
techMARK 2,818.76 +0.56%
FTSE 100 6,573.13 -0.49%
FTSE 250 16,338.84 -0.09%
UK stocks finished today's busy session in the red as investors digested the Chancellor's Budget statement, UK unemployment figures, and a number of announcements from Europe.
The FTSE closed down 32.15 points at 6,573.13, down 45.24 points on the week so far.
Budget 2014: Tax cuts announced ahead of 2015 election
UK Chancellor George Osborne today delivered his fifth budget, which revealed a number of tax and spending cuts to boost the economy.
He warned that while Britain was growing at a faster rate than any another advanced economy in the world the recovery was far from assured.
"This country still borrows too much, we still don't invest enough, export enough or save enough," he said.
Osborne also revealed the Office for Budget Responsibility had lifted its forecasts for economic growth. The OBR predicted the UK will expand by 2.7% this year compared to its earlier estimate of 2.4%. The UK will grow by 2.3% next year, it said.
The 2015 estimate is one tenth of a percentage point less than had been expected by the consensus.
Osborne added that the OBR sees the Budget deficit falling more than expected this year at 6.6%. He said by 2018-19 annual Budget deficit will disappear, with a move into a small surplus.
Meanwhile, in an effort to support "hard working people", Osborne said the UK tax-free personal income threshold will be raised to in April 2014 from £9,440 to £10,000 and by a further £500 in 2015.
Additional measures announced in the Budget included a scheme to boost exports by doubling the amount of finance available to £3bn, a five-year cap on structural welfare spending from 2015, starting at £119bn and rising in line with inflation, and freezing duty on cider, lowering the duty on beer by 1p per pint.
UK unemployment rate unchanged at 7.2% in January
The UK unemployment rate remained unchanged in the three months to January at 7.2%, according to the Office for National Statistics (ONS). The consensus estimate had been for a reading of 7.1%. The claimant count fell by 34,600 in February (consensus: -25,000).
Average weekly earnings rose by 1.4% for the three months to January (consensus: 1.2%).
Eurozone construction output rose by 1.5% in January
Construction output in the Eurozone expanded by 1.5% month-on-month during January, according to Eurostat.
That came on the back of a revised gain of 1.3% for December, in comparison with the 0.9% initially estimated.
Meanwhile, France's current account deficit came in at -3.9bn euros in January, according to the French central bank, following a reading of -1.2bn euros in December.
Budget statement effect felt on FTSE
Legal and General fell sharply after Osborne announced in today's Budget that there will be a "radical change" to the pension system, as a result of which half a million people will no longer have to buy an annuity, Elissa Bayer, Senior Investment Director at Investec Wealth & Investment, explained.
Resolution shares declined after Canaccord Genuity downgraded the company from 'buy' to 'hold' with a target of 375p.
Bookmaker William Hill slumped after the government's new Budget included a 25p increase in duty on fixed-odds betting terminals.
Meanwhile, shares of Hargreaves Lansdown were at the top of the leaderboard, which appears to be linked to the Budget statement which announced savers will be allowed to transfer funds back and forth between their cash and stock ISAs.
Shares in Barclays were given a lift by stories that the bank is weighing up the possible disposal of its Index, Portfolio and Risk Solutions (IPRS) unit, with two rival buyers mooted. |
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FTSE 100 - Risers
Hargreaves Lansdown (HL.) 1,504.00p +14.46%
Hammerson (HMSO) 565.50p +2.54%
Barclays (BARC) 241.50p +2.31%
Sage Group (SGE) 424.40p +2.04%
Reckitt Benckiser Group (RB.) 4,895.00p +1.70%
Schroders (SDR) 2,692.00p +1.58%
London Stock Exchange Group (LSE) 2,007.00p +1.52%
Meggitt (MGGT) 471.80p +1.40%
BAE Systems (BA.) 413.50p +1.40%
Rolls-Royce Holdings (RR.) 1,073.00p +1.23%
FTSE 100 - Fallers
Legal & General Group (LGEN) 211.20p -8.37%
William Hill (WMH) 351.50p -6.81%
Anglo American (AAL) 1,388.50p -5.38%
Antofagasta (ANTO) 785.00p -5.25%
Aviva (AV.) 490.40p -5.15%
Resolution Ltd. (RSL) 335.00p -4.56%
Smiths Group (SMIN) 1,301.00p -3.70%
Glencore Xstrata (GLEN) 301.30p -3.26%
Standard Life (SL.) 354.00p -3.12%
Prudential (PRU) 1,339.50p -2.12%
FTSE 250 - Risers
Imagination Technologies Group (IMG) 180.70p +10.05%
Rank Group (RNK) 154.00p +6.80%
Victrex plc (VCT) 1,968.00p +6.72%
St James's Place (STJ) 865.50p +4.28%
Fidessa Group (FDSA) 2,596.00p +4.22%
Domino Printing Sciences (DNO) 821.50p +3.79%
Evraz (EVR) 62.65p +3.38%
Man Group (EMG) 106.00p +3.21%
Big Yellow Group (BYG) 556.00p +3.15%
Grainger (GRI) 248.00p +2.90%
FTSE 250 - Fallers
Partnership Assurance Group (PA.) 143.00p -55.20%
Ophir Energy (OPHR) 251.70p -14.79%
Ladbrokes (LAD) 140.40p -11.70%
Phoenix Group Holdings (DI) (PHNX) 702.00p -5.20%
Dairy Crest Group (DCG) 469.90p -5.07%
Xaar (XAR) 864.00p -4.53%
Moneysupermarket.com Group (MONY) 178.70p -4.44%
Carphone Warehouse Group (CPW) 323.60p -3.89%
Essar Energy (ESSR) 64.50p -3.87%
Polymetal International (POLY) 612.00p -3.77% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks mixed after UK Budget, before Fed meeting - UK Budget reveals tax cuts
- BoE unanimous on policy, minutes show
- UK unemployment rate unchanged
- EU summit tomorrow to address Crimea
- Fed to announce policy decision
FTSE 100: -0.49%
DAX: 0.37%
CAC 40: -0.12%
FTSE MIB: -0.29%
IBEX 35: 0.42%
Stoxx 600: -0.09%
European stocks were mixed after the UK Budget was released and before the Federal Reserve released its policy decision.
Chancellor George Osborne delivered his fifth budget, which revealed a number of tax and spending cuts to boost the economy.
He warned that while Britain was growing at a faster rate than any another advanced economy in the world the recovery was far from assured.
Osborne revealed the Office for Budget Responsibility (OBR) had lifted its forecasts for economic growth to 2.7% this year compared to its earlier estimate of 2.4%. The UK will grow by 2.3% next year, it said.
Osborne added that the OBR sees the Budget deficit falling more than expected this year at 6.6%. He said by 2018-19 annual Budget deficit will disappear, with a move into a small surplus.
However, he noted that the deficit in Britain was "still one of the highest in Europe today so we will take further action to bring it down".
Such actions include boosting job creation, investing in exporters, slashing government spending and cutting taxes to lift consumer expenditure.
BoE meeting minutes, UK jobs
The Bank of England's Monetary Policy Committee (MPC) released its meeting minutes which showed policymakers were unanimous in keeping the Bank rate and leaving the stock of asset purchases unchanged earlier this month.
Unemployment was thought "quite likely" to fall to 7% during the following few months, minutes of the March 5-6th meeting revealed.
Separately, the Office for National Statistics (ONS) said the UK unemployment rate remained unchanged in the three months to January at 7.2%. The consensus estimate had been for a reading of 7.1%.
Jobless claims count fell by 34,600 in February, beating forecasts for a 25,000 decrease. They fell 33,900 in January.
In the US, the Federal Reserve concludes its two-day policy meeting after the close of the European session.
Analysts expect the central bank will slash monthly bond purchases by a further $10bn to $55bn and keep its benchmark rate at 0.25%. The meeting will be followed up with a press conference with Fed Chair Janet Yellen.
EU summit address Crimea
The European Union (EU) is preparing for a two-day summit in Brussels tomorrow to discuss how to tackle the turmoil in Ukraine.
A leaked draft document of the summit read: "In the light of events, the European Council will assess the situation in Europe's Eastern neighbourhood, in particular in Ukraine, and may also address other specific foreign policy issues."
European leaders are said to be divided on how to punish Moscow after Russian President Vladimir Putin signed a treaty to annex Crimea from Ukraine.
Following Sunday's referendum, which saw Crimean locals vote overwhelmingly to join Russia, Putin and other officials signed a treaty accepting the accession, defying sanctions imposed by EU and US leaders yesterday who labelled the vote as illegal.
US Vice President Joe Biden warned Moscow today that it was on a "dark path" to isolation following reports of armed attacks against Ukrainian military personnel by Russian troops in Crimea.
Insurers fall
A gauge of insurers, including Legal & General and Aviva, dropped after Osborne scrapped a requirement for British retirees to buy pension annuities.
Airbus jumped following reports it was in talks with China over the purchase of at least 150 of its passenger jets.
Inditex gained after posting 2013 profit in line with analysts' estimates.
BMW edged higher after the carmaker said it predicts pre-tax profit will rise this year.
Ophir Energy slumped after saying it failed to encounter significant hydrocarbons at the Padouck Deep-1 well in Gabon.
Antofagasta was lower after Deutsche Bank downgraded the copper producer to 'sell' from 'hold'.
Brenntag advanced after the largest distributor of chemicals s proposed a three-for-one stock split and announced a dividend payout that exceeded analysts' forecasts.
Barclays rallied following reports the bank plans to sell its index business.
Aurubis climbed as Goldman Sachs added the supplier of precision rolled copper to its conviction list after upgrading it to 'buy' from 'neutral'.
The euro fell 0.14% to $1.3915.
Brent crude futures fell $0.764 to $105.980 per barrel, according to the ICE. |
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| | US Market Report | | US open: Further US sanctions possible this week - Further US sanctions possible this week
- Traders on sidelines ahead of FOMC
- Oracle and Fed move higher despite weak earnings
Dow Jones Industrials: 0.15%
Nasdaq Composite: -0.05%
S&P 500: 0.09%
The main US equity benchmarks were trading in a mixed fashion ahead of the Federal Reserve's policy decision.
The central bank is widely expected to slash monthly bond purchases by a further $10bn to $55bn and keep its benchmark rate at 0.25% when it wraps up its two-day meeting later on.
Fed Chair Janet Yellen will address a press conference following the announcement. It will be her first meeting as Fed Chair after taking over from Ben Bernanke on February 3rd.
Further US sanctions possible this week
Meanwhile, US President Barack Obama has called for a meeting with G7 today in the Netherlands to discuss further action on the situation between Ukraine and Russia.
UK Prime Minister David Cameron has reportedly called for economic sanctions to be agreed upon at tomorrow's meeting of the European Council, according to remarks from some of those expected to attend the meeting, such as Czech Prime Minister Bohuslav Sobotka.
The latest information points to divisions between France and Germany over whether to permanently oust Russia from the G-8.
Bloomberg cited analysts according to whom there was a rising possibility that Washington will target the assets of several state-owned enterprises as early as this week.
Oracle and Fed Ex rise
In company news, technology shares will be in focus a day after results from Oracle Corp. and Adobe Systems. Oracle revealed revenues that were below estimates while Adobe released a second-quarter revenue outlook that was ahead of analysts' forecasts.
Stock in Fed Ex is higher despite the release of weaker than expected quarterly earnings as a result of poor winter weather.
JPMorgan Chase & Co. is reportedly selling its physical commodities business to Swiss trade house Mercuria.
Google has revealed plans to help develop smart watches and other wearable computers based on its Android mobile operating system.
Current account deficit narrowed in fourth quarter
The US current account deficit dropped to the equivalent of 1.9% of gross domestic product during the last three months of 2013 from 2.3% in the third quarter, thanks to a reduction in oil imports and buoyant global equity markets.
Back in the US, the Mortgage Bankers Association (MBA) said mortgage applications fell 1.2% in the week to March 14th, compared to a drop of 2.1% a week earlier.
Crude futures edge higher
Front month West Texas crude futures are higher by 0.61% to $100.30/barrel out on NYMEX.
10-year US treasury yields were up by one basis point to the 2.69% mark.
S&P 500 - Risers
First Solar Inc. (FSLR) $62.19 +8.04%
Nvidia Corp. (NVDA) $18.78 +2.99%
Lennar Corp. Class A (LEN) $41.80 +2.96%
D. R. Horton Inc. (DHI) $23.11 +2.94%
PulteGroup Inc. (PHM) $19.96 +2.46%
Juniper Networks Inc. (JNPR) $26.51 +2.34%
Fossil Group Inc (FOSL) $120.66 +2.22%
Sears Holdings Corp. (SHLD) $46.78 +1.96%
WellPoint Inc. (WLP) $99.62 +1.95%
CIGNA Corp. (CI) $79.11 +1.83%
S&P 500 - Fallers
Marathon Petroleum Corporation (MPC) $92.13 -2.14%
Tesoro Corp. (TSO) $51.87 -1.41%
Alexion Pharmaceuticals Inc. (ALXN) $178.42 -1.39%
Noble Energy Inc. (NBL) $66.50 -1.34%
Cognizant Technology Solutions Corp. (CTSH) $50.42 -1.31%
Corning Inc. (GLW) $19.06 -1.29%
Consolidated Edison Inc. (ED) $53.72 -1.27%
QEP Resources Inc (QEP) $28.64 -1.26%
Pioneer Natural Resources Co. (PXD) $185.87 -1.19%
Computer Sciences Corp. (CSC) $62.49 -1.15%
Dow Jones I.A - Risers
Unitedhealth Group Inc. (UNH) $78.75 +0.96%
Merck & Co. Inc. (MRK) $56.82 +0.82%
Boeing Co. (BA) $124.69 +0.52%
Pfizer Inc. (PFE) $32.06 +0.41%
Johnson & Johnson (JNJ) $94.25 +0.33%
Home Depot Inc. (HD) $80.02 +0.25%
Caterpillar Inc. (CAT) $96.64 +0.24%
Wal-Mart Stores Inc. (WMT) $74.86 +0.12%
Travelers Company Inc. (TRV) $84.04 +0.11%
AT&T Inc. (T) $33.01 +0.09%
Dow Jones I.A - Fallers
Walt Disney Co. (DIS) $81.44 -0.67%
Microsoft Corp. (MSFT) $39.30 -0.63%
Exxon Mobil Corp. (XOM) $94.23 -0.51%
General Electric Co. (GE) $25.53 -0.45%
American Express Co. (AXP) $91.25 -0.37%
International Business Machines Corp. (IBM) $186.15 -0.35%
Procter & Gamble Co. (PG) $79.54 -0.29%
E.I. du Pont de Nemours and Co. (DD) $66.64 -0.24%
Chevron Corp. (CVX) $116.03 -0.18%
McDonald's Corp. (MCD) $97.15 -0.16%
Nasdaq 100 - Risers
Nvidia Corp. (NVDA) $18.78 +2.99%
F5 Networks Inc. (FFIV) $112.68 +1.72%
Vodafone Group Plc ADS (VOD) $38.00 +1.01%
Starbucks Corp. (SBUX) $75.34 +0.99%
Avago Technologies Ltd. (AVGO) $64.39 +0.89%
Applied Materials Inc. (AMAT) $19.53 +0.83%
Intuitive Surgical Inc. (ISRG) $431.98 +0.69%
Netflix Inc. (NFLX) $423.00 +0.65%
Priceline.Com Inc. (PCLN) $1,312.90 +0.65%
Linear Technology Corp. (LLTC) $47.53 +0.51%
Nasdaq 100 - Fallers
Check Point Software Technologies Ltd. (CHKP) $67.76 -1.73%
Alexion Pharmaceuticals Inc. (ALXN) $178.42 -1.39%
Cognizant Technology Solutions Corp. (CTSH) $50.42 -1.31%
Cerner Corp. (CERN) $59.78 -1.04%
Dish Network Corp. (DISH) $61.49 -0.95%
Comcast Corp. (CMCSA) $49.75 -0.94%
Regeneron Pharmaceuticals Inc. (REGN) $330.18 -0.89%
Adobe Systems Inc. (ADBE) $67.93 -0.86%
Intuit Inc. (INTU) $80.00 -0.82%
TripAdvisor Inc. (TRIP) $104.35 -0.81% |
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| | Broker Tips | | Broker tips: Antofagasta, Persimmon, Smiths Group Copper producer Antofagasta was trading in the red on Wednesday after having its rating downgraded by Credit Suisse from 'neutral' to 'underperform' following the stock's outperformance over recent months.
"With the positive of better-than-expected cost-cutting now played out together with heightened uncertainty around copper prices we downgrade the shares," the bank said.
Persimmon offers the 'best of both worlds' in terms of top-line growth and returns, according to UBS which has lifted its rating on the stock from 'neutral' to 'buy'.
"While our forecasts are 18% ahead of consensus for 2015, we think the risk remains to the upside in light of recent house price inflation," the bank said.
Investec has maintained its 'buy' stance on Smiths Group despite the sharp fall in the manufacturing firm's share price on Wednesday after its first-half results. The broker said that the stock is "probably still under-valued on a sum-of-the-parts basis and we remain positive.".
Numis Securities, however, chose to keep a 'reduce' rating for Smiths Group, saying it sees "better value elsewhere" in the sector. | | |
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