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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: Positive finish to week as miners charge higher - FTSE closes up 15 points at 6,557
- Feb UK public sector borrowing slightly ahead of forecasts
- Eurozone consumer confidence higher than expected
techMARK 2,790.85 -0.34%
FTSE 100 6,557.17 +0.23%
FTSE 250 16,160.11 -0.35%
The City ended the week on a positive note, with mining stocks providing a lift and confidence in the Eurozone coming in ahead of predictions.
The FTSE 100 closed up 14.73 points at 6,557.17, a gain of 29.28, or 0.45%, on the week.
Sentiment was also helped after Fitch Ratings raised its outlook on the US credit rating to 'stable' from 'negative' after Congress suspended the nation's debt limit for more than a year, which reduces the risk of a default.
Despite the gains, developments in Ukraine were being closely watched today as Vladimir Putin signed a bill to incorporate Crimea into Russia. The move comes after European Union (EU) and US leaders imposed more sanctions on Russian officials yesterday.
President Barack Obama announced yesterday that he would extend financial sanctions to more of Vladimir Putin's 'inner circle', including wealthy supporters and a bank close to the Kremlin.
The new sanctions prompted ratings agency Standard & Poor's to revise its outlook on Russian debt from 'stable' to 'negative' due to "rising geopolitical and economic risks".
UK public sector borrowing slightly ahead of forecasts in February
The UK public sector's net borrowing requirement excluding the temporary effects of financial interventions (PSNB ex) for February came in at £9.3bn, according to the Office for National Statistics (ONS).
That was the result of a current budget deficit of £6.5bn together with £2.8bn in net investment. The consensus estimate was for PSNB ex to come in at £8.9bn.
Eurozone consumer confidence rises more than forecast
Across the Channel, Eurozone consumer confidence rose more than expected in March, the European Commission reported.
The flash estimate for Eurozone sentiment climbed to -9.3 from -12.7 in February, surprising analyst who had forecast an increase to -12.4 in March.
Miners jump following recent declines
Mining stocks were performing well throughout today's session as bargain hunters stepped in following recent weakness in the sector. At Thursday's close, the FTSE 350 mining sector had lost more than 11 per cent over the last four weeks. Anglo American, Antofagasta, and precious metals producer Fresnillo were among the best performers today, along with Rio Tinto and Glencore Xstrata.
Intertek was also a strong performer. Citigroup yesterday reiterated its 'buy' rating on the stock following reports the group had increased its exploration and production services in Abu Dhabi after investing in a new facility.
Meanwhile, Hargreaves Lansdown and Legal & General Group were both registering losses as the impact of Wednesday's Budget continued to be felt across the annuity market. Some analysts have predicted that the market could fall by as much as £8bn to £4bn by September 2015 after Chancellor George Osborne unveiled plans to do away with annuity pensions income. The statement had resulted in a number of broker downgrades to affected companies.
William Hill moved into the red after Credit Suisse lowered its target from 400p to 395p and UBS reduced its own from 450p to 420p. |
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FTSE 100 - Risers
InterContinental Hotels Group (IHG) 1,937.00p +3.80%
Fresnillo (FRES) 885.00p +2.13%
Intertek Group (ITRK) 3,000.00p +2.08%
Centrica (CNA) 337.90p +2.05%
Anglo American (AAL) 1,439.50p +1.98%
Severn Trent (SVT) 1,888.00p +1.94%
HSBC Holdings (HSBA) 605.70p +1.94%
United Utilities Group (UU.) 804.50p +1.84%
Unilever (ULVR) 2,420.00p +1.81%
Amec (AMEC) 1,104.00p +1.66%
FTSE 100 - Fallers
Legal & General Group (LGEN) 206.00p -3.33%
Aberdeen Asset Management (ADN) 363.30p -2.86%
Hargreaves Lansdown (HL.) 1,414.00p -2.82%
Aviva (AV.) 480.30p -2.71%
Marks & Spencer Group (MKS) 459.70p -2.44%
William Hill (WMH) 339.10p -2.16%
Burberry Group (BRBY) 1,390.00p -2.11%
Royal Bank of Scotland Group (RBS) 299.10p -2.03%
Ashtead Group (AHT) 924.00p -1.81%
Lloyds Banking Group (LLOY) 77.37p -1.75%
FTSE 250 - Risers
Xaar (XAR) 896.00p +8.61%
AL Noor Hospitals Group (ANH) 985.00p +6.95%
Essar Energy (ESSR) 70.15p +6.29%
Investec (INVP) 471.00p +5.23%
Evraz (EVR) 65.15p +3.33%
Northgate (NTG) 560.00p +3.04%
Interserve (IRV) 685.00p +2.93%
Carphone Warehouse Group (CPW) 339.30p +2.54%
Petra Diamonds Ltd.(DI) (PDL) 155.50p +2.37%
Fidelity China Special Situations (FCSS) 104.50p +2.25%
FTSE 250 - Fallers
Ocado Group (OCDO) 443.70p -6.82%
Devro (DVO) 234.90p -5.96%
Fidessa Group (FDSA) 2,504.00p -4.24%
Kenmare Resources (KMR) 14.07p -4.22%
Perform Group (PER) 237.90p -4.07%
Berkeley Group Holdings (The) (BKG) 2,536.00p -3.94%
Computacenter (CCC) 640.50p -3.47%
Kier Group (KIE) 1,637.00p -3.42%
Atkins (WS) (ATK) 1,345.00p -3.38%
Cairn Energy (CNE) 158.60p -3.29% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks mixed after Eurozone consumer confidence data - Eurozone consumer confidence rises
- Russia finalises treaty on Crimea
- Fed officials speak
- Fitch upgrades outlook on US economy
- UK public sector debt grows
FTSE 100: 0.23%
DAX: 0.50%
CAC 40: 0.17%
FTSE MIB: -0.58%
IBEX 35: -0.22%
Stoxx 600: 0.08%
European stocks ended the week mixed as a report showed Eurozone consumer confidence rose more than expected and Russia finalised a treaty on annexing Crimea from Ukraine.
The European Commission said its preliminary sentiment index for the Eurozone jumped to -9.3 in March from -12.7 in February, surprising analysts who had forecast an increase to -12.4.
The European Union as a whole also improved to -6.7 this month from -9.3 points in February.
In another lift to markets, Standard & Poor's (S&P) affirmed Greece's sovereign credit rating as 'B-/B' rating and gave it a 'stable' outlook, citing an improving economy.
The ratings agency said that the European nation has started to rebalance thanks to the government's commitment to fiscal and structural reforms.
On a downbeat note, tensions in Crimea remained high as the European Union (EU) and the US warned Russia of the consequences of further steps to destabilise Ukraine.
Russian President Vladimir Putin today signed laws completing his nation's annexation of Crimea today, shrugging off further sanctions on Russian officials by the US and EU.
Nominal GDP targeting has challenges, says Fed's Bullard
Federal Reserve official James Bullard said today that using monetary policy to target a specific rate of economic growth posed challenges.
Such hurdles include the difficulty of knowing how fast the economy really should be growing, Bullard said on the debate over so-called nominal gross domestic product (GDP)-targeting at the Brookings Institution in Washington.
However, he offered no insight into his view of the Fed's decision on Wednesday to reduce its monthly asset purchases for a third time by $10bn to $55bn, nor the possibility of an interest rate rise.
Fed Chair Janet Yellen said the central bank may raise interest rates in the next six months after ending quantitative easing.
Fed policymakers Richard Fisher, Narayana Kocherlakota and Jeremy Stein were also due to speak this evening, potentially shedding further light on the situation.
Meanwhile, Fitch Ratings raised its outlook on the US economic outlook to 'stable' from 'negative' after Congress suspended the nation's debt limit for more than a year, which reduces the risk of a default.
UK public sector debt
The UK public sector's net borrowing requirement for February came in at £9.3bn after a revised reading of £5bn the month before. Analyst had expected £8.6bn.
It came as a result of a current budget deficit of £6.5bn together with £2.8bn in net investment.
"Looking ahead, the Office for Budget Responsibility forecast of a further drop in the underlying deficit to £95.5bn in 2014-15 could prove to be a bit pessimistic if the economy expands by around 3% as we expect," Capital Economics said.
"But the big picture is still that there is a very long way to go before the public finances are restored to full health."
Delivering the Budget 2014-15 on Wednesday, Chancellor George Osborne said while the country was moving towards a small surplus in 2018-19, he believed the country still spends and borrows too much.
Miners gain on copper price rise
A gauge of miners rallied, including Rio Tinto, Fresnillo and Anglo American, as the price of copper edged higher.
Commerzbank was up after Morgan Stanley raised its rating on the German lender to 'overweight' from 'equal weight'.
Havas SA retreated after the French advertising agency posted 2013 profit that fell short of analysts' estimates.
Remy Cointreau dropped as UBS said the French alcoholic beverage company will find it harder to recover from a slump in Chinese sales because it lacks the global distribution channels of its rivals.
Burberry slipped after Bank of America cut its rating of the luxury fashion retailer to 'neutral' from 'buy', citing currency headwinds.
Crest Nicolson tumbled following news Deutsche Bank, its largest publicly disclosed shareholder, is selling as many as 16.5m shares in the housebuilder.
The euro rose 0.07% to $1.3789.
Brent crude futures increased $0.949 to $107.470 per barrel, according to the ICE. |
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| | US Market Report | | US open: Stocks rise, S&P 500 reaches new intraday record - S&P 500, Dow gain, Nasdaq falls
- S&P 500 hits intraday high of 1,884
- Fed officials in focus on Yellen comments
- West sanctions more Russian officials
Dow Jones: 0.40%
Nasdaq: -0.34%
S&P 500: 0.37%
US stocks were mostly higher on Friday morning with the S&P 500 rising to a new intraday high early on as investors awaited speeches from a number of Federal Reserve officials on a quiet day for economic data.
Sentiment was also helped after Fitch Ratings raised its outlook on the US credit rating to 'stable' from 'negative' after Congress suspended the nation's debt limit for more than a year, which reduces the risk of a default.
The S&P 500 was trading 0.4% higher at 1,879 by 10:06 in New York, having jumped to a new high of 1,884 initially after the opening bell. The Dow Jones Industrial Average rose 0.4%, but the Nasdaq fell 0.3%.
Comments from Fed members James Bullard, Richard Fisher, Narayana Kocherlakota and Jeremy Stein will be closely watched later on, following the central bank's decision on Wednesday that it would cut asset purchases by $10bn a month to $55bn.
The policymakers may potentially shed further light on remarks from Fed Chair Janet Yellen who indicated that the central bank could raise interest rates about six months after it ends quantitative easing (QE).
With QE set to end this autumn – provided the Fed continues to taper at the same pace – the first rate hike could come as early as the second quarter of next year; analysts had expected rates to rise towards the end of 2015.
Crimea crisis
Despite the decent start on markets, tensions still remain high in Crimea as the European Union (EU) and US announced more targeted sanctions against Russian and Ukraine officials following the move to annex Crimea earlier this week. Moscow officially finalised a treaty incorporating the region today.
US President Barack Obama said yesterday the government is imposing sanctions on more senior officials of the Russian government.
"In addition, we are today sanctioning a number of other individuals with substantial resources and influence who provide material support to the Russian leadership, as well as a bank that provides material support to these individuals," he said.
The EU said any further steps by Moscow to destabilise Ukraine would have "far-reaching consequences" as it imposed sanctions on 12 more Russian officials.
Nike, Unwired Planet
Nike dropped after the sporting goods firm projected sales in the quarter through May that fell short of market expectations.
Unwired Planet saw its shares rocket after Chinese PC manufacturer Lenovo said it would buy a patent portfolio and license certain patents for $100m.
Genco Shipping & Trading Ltd gained after saying it is still in talks about a potential debt restructuring.
Customer review site Yelp advanced after partnering with advertising platform YP to improve business listings.
Jewellery retailer Tiffany & Co slumped after reporting quarterly earnings that missed analysts' estimates.
Symantec Corp declined after the maker of security software fired its Chief Executive Officer Steve Bennett. |
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| | Broker Tips | | Broker tips: Pearson, Meggitt, Ophir Energy, Investec, FirstGroup Credit Suisse has lowered its target for publishing group Pearson from 1,410p to 1,260p after last month's profit warning, but said that the downgrade cycle is now over as it maintained an 'outperform' rating on the stock.
It said that 2014 will be a "trough year" for Pearson's earnings and expects a compound annual growth rate of at least 16% between 2014 and 2017, excluding restructuring costs. "We are particularly encouraged by the more upbeat outlook for 2015, which suggests the cyclical headwinds are set to abate, and remain confident that Pearson is well positioned for the transition to digital."
UBS has upgraded its rating on aerospace, defence and energy engineer Meggitt from 'neutral' to 'buy', saying that the stock has been disproportionately hit after its recent underperformance.
"The stock is now trading at the bottom of the range of its commercial peers (both OE and aftermarket oriented, but especially versus its aftermarket peers), which we believe is overdone on both relative and absolute basis and the stock offers good value at these levels."
Canaccord Genuity has lowered its target for oil explorer Ophir Energy after the company ended drilling at its Padouk Deep-1 (PD) well in the Ntsina Block offshore Gabon with no significant hydrocarbon shows.
The stock fell over 15% on Wednesday following the news. "The scale of the correction post the PD well result was in part related to the size and importance of the well in the company's overall 2014 drilling campaign, but we also think it marks a moment when the last of Ophir's exploration premium rating dissolved," Canaccord said.
Numis Securities has upgraded its forecasts for Investec after the specialist banking group and asset manager reported an "improved performance" in its pre-close trading update this week.
"The business appears to have some positive momentum now and we believe Investec is one of the few significant recovery plays amongst the specialist UK lenders."
Investec highlighted "speed bumps to look for" in FirstGroup's trading update next month, but has reiterated a 'buy' recommendation for transport firm.
"This is a turnaround story and hiccups, such as earnings volatility and execution risks, should be expected along the way. Yet, if management can get the business sorted out once and for all, this remains a cheap stock." | | |
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