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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: Russia, China concerns keep FTSE firmly in red - Ukraine, China weigh heavily on market
- Eurozone PMI falls unexpectedly
- US manufacturing comes in below expectations
techMARK 2,753.98 -1.32%
FTSE 100 6,520.39 -0.56%
FTSE 250 16,019.41 -0.87%
Stocks finished firmly lower today as concerns over mounting geopolitical tensions in western Europe and fears of slowing growth in China ensured a lack of confidence amongst investors.
The FTSE 100 closed down 36.78 points at 6,520.39.
The HSBC/Markit PMI for Chinese manufacturing dropped to 48.1 this month from 48.5 in February, marking the fifth consecutive fall for the index and missing the market's estimate for 49.7.
Analysts at Capital Economics said that this is the "latest sign that slowing credit and investment growth are weighing on domestic demand".
However, they said that with no sign of stress in the labour market, "the slowdown does not yet appear to warrant a significant stimulus response".
The Eurozone composite PMI, which measures both the services and manufacturing sectors, fell from 53.3 to 53.2, as expected.
Crimea crisis
Meanwhile, the ongoing Ukraine crisis stepped up a gear over the weekend on reports of Russian troops storming more bases in Crimea following a referendum and subsequent annexation of the region last week.
Ukraine's interim President Olexander Turchynov has now ordered the withdrawal of Ukrainian armed forces from Crimea.
G7 leaders are expected to discuss their response to the annexation as they meet for a nuclear summit in The Hague today. EU and US leaders have already imposed and extended sanctions on a number of high-ranking officials and institutions close to the Kremlin.
Speaking to the BBC, Ukrainian Foreign Minister Andriy Deshchytsia said the risk of war with Russia was increasing. He explained that Russian President Vladimir Putin is opposed to talking to both Ukrainian and Western powers, which poses "quite a danger for the decision-making process".
"We could only expect that he might invade," he added.
US manufacturing comes in below expectations
Markit's preliminary purchasing managers' index (PMI) for US manufacturing in March dropped to 55.5 in March from 57.1 a month earlier. While the sector was still found to be expanding – indicated by a reading above 50 – the consensus forecast was for 56.5.
Lloyds climbs on rating upgrade
Investec has upgraded its rating for Lloyds Banking Group from 'hold' to 'buy', telling investors that "it is safe to go back in the water", prompting a strong rise in the share price. "After a 10% 10-week pull-back, we again see reasonable value for a low-risk stock. Upgrade to 'buy'," the broker said.
BG Group was another strong riser as sentiment recovered somewhat after last week's announcement that 300 jobs at its Head Office were at risk following the group's decision to initiate a redundancy programme. The group was today given a lift by BNP Paribas, which upped its rating on the stock to 'outperform'.
Meanwhile, Randgold Resources and Fresnillo slumped on the renewed concerns about the situation in Russia and Ukraine, as well as the fears of an economic slowdown in China.
Hargreaves Lansdown extended last week's losses after its Chief Executive revealed that the group is considering lowering its charges later in 2014. The potential plans come after the group experienced a strong increase in the level of activity seen across its platform sector.
"We will look at all charges as we want to be competitive," he said in an interview with Investment Week. "There are one or two areas in particular we are interested in, and our charges are not locked in."
Energy giant SSE fell in line with the wider sector which declined on rumours the UK government is considering forcing companies to split up in order to improve competition.
On the second tier, technical product firm Diploma was a big faller after it told investors its final results would be adversely affected by the appreciation of sterling.
In other company news, Co-op Bank is planning to raise a further £400m through the issue of new shares after it was discovered there would be additional costs as a result of its past failings, such as PPI mis-selling, and substandard documentation. |
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FTSE 100 - Risers
BG Group (BG.) 1,082.50p +1.93%
Royal Bank of Scotland Group (RBS) 303.60p +1.50%
Lloyds Banking Group (LLOY) 78.50p +1.46%
Diageo (DGE) 1,819.50p +1.08%
Mondi (MNDI) 1,045.00p +0.97%
Tesco (TSCO) 293.35p +0.84%
Legal & General Group (LGEN) 207.70p +0.83%
Aberdeen Asset Management (ADN) 366.00p +0.74%
Glencore Xstrata (GLEN) 305.75p +0.71%
easyJet (EZJ) 1,632.00p +0.62%
FTSE 100 - Fallers
Randgold Resources Ltd. (RRS) 4,627.00p -4.22%
Fresnillo (FRES) 852.00p -3.73%
Smiths Group (SMIN) 1,280.00p -3.25%
Hargreaves Lansdown (HL.) 1,374.00p -2.83%
Wolseley (WOS) 3,304.00p -2.59%
G4S (GFS) 233.00p -2.55%
Barratt Developments (BDEV) 393.70p -2.40%
SSE (SSE) 1,475.00p -2.32%
International Consolidated Airlines Group SA (CDI) (IAG) 410.90p -2.31%
Group (VOD) 222.15p -2.22%
FTSE 250 - Risers
Centamin (DI) (CEY) 57.70p +9.90%
AL Noor Hospitals Group (ANH) 1,069.00p +8.53%
Infinis Energy (INFI) 244.70p +5.47%
JD Sports Fashion (JD.) 1,649.00p +4.10%
Computacenter (CCC) 666.00p +3.98%
Cranswick (CWK) 1,239.00p +3.94%
Daejan Holdings (DJAN) 4,884.00p +3.91%
Kentz Corporation Ltd. (KENZ) 754.50p +2.93%
Perform Group (PER) 242.00p +1.72%
Dairy Crest Group (DCG) 467.80p +1.70%
FTSE 250 - Fallers
Diploma (DPLM) 701.50p -7.70%
Northgate (NTG) 531.50p -5.09%
Carphone Warehouse Group (CPW) 322.90p -4.83%
Cairn Energy (CNE) 151.30p -4.60%
UDG Healthcare Public Limited Company (UDG) 351.80p -4.45%
Essar Energy (ESSR) 67.10p -4.35%
BTG (BTG) 551.50p -4.09%
Just Retirement Group (JRG) 134.50p -3.93%
Renishaw (RSW) 1,889.00p -3.77%
Redrow (RDW) 309.50p -3.58% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks slide on Crimea turmoil and weak PMIs - Obama suggests Russian isolation
- Manufacturing PMIs fall in Eurozone, China and US
FTSE 100: -0.56%
DAX: -1.65%
CAC 40: -1.36%
FTSE MIB: -1.65%
IBEX 35: -1.47%
Stoxx 600: -1.08%
European stocks declined as world leaders met to discuss the crisis in Crimea and as manufacturing activity fell in the Eurozone, China and the US.
Leaders from the US, European Union (EU), Japan, China and others convened in Europe today as Russian soldiers stormed Ukraine's border.
US President Barack Obama sort support to isolate Russia over its seizure of Crimea. Ukraine told its remaining troopers to leave the region after Russian forces threatened their lives.
The US and EU have imposed sanctions over Moscow's decision to sign a treaty annexing Crimea from Ukraine, which analysts believe could push Russia towards a recession.
Banks, including state-run VTB Capital, think Russia's economy will shrink for at least two quarters as penalties for accepting Crimea back as a sovereign state dampens investor sentiment and raises the cost of borrowing.
Weak manufacturing data
Markit's purchasing managers' index (PMI) for Eurozone manufacturing in March dropped to 53 from 53.2 in February, in line with analysts' expectations. A reading above 50 signals expansion.
The services PMI came in at 52.6 in March, in line with both the previous month and with forecasts.
The Composite PMI, which combines services and manufacturing, dipped to 53.2 this month from 53.3 previously, meeting the consensus estimate.
In China, a preliminary report on PMI manufacturing in March decreased to 48.1 from 48.5 in February. Economists had pencilled in a figure of 49.7. It marked the fifth consecutive fall, fuelling concerns over a slowdown in the world's second largest economy.
The PMI for manufacturing in March declined to 55.5 in March from 57.1 a month earlier. The consensus forecast was for 56.5.
Stada Arzneimittel hit by Crimea crisis
Stada Arzneimittel edged lower as the maker of generic drugs said it no longer expects to achieve its forecast for 2014, citing the strong devaluation of currencies in Russia and Ukraine amid the Crimea crisis.
Credit Suisse Group tumbled as Switzerland's second-largest lender agreed to pay $885m to settle lawsuits by the Federal Housing Finance Agency over mortgages sold to Fannie Mae and Freddie Mac.
International Consolidated Airlines Group was down after Morgan Stanley removed the parent company of British Airways from its Europe Best Ideas list.
Deutsche Post gained following a report that the European postal service will increase its mail profit target by 60%.
Czech utility CEZ AS advanced after the nation's Finance Minister said the government is seeking a 100% dividend payout.
Centrica and SSE slumped following reports the UK's six biggest utilities may be split this week when energy regulator Ofgem calls in the competition watchdog.
Royal KPN declined after Citigroup lowered the Dutch telecommunications operator to 'neutral' from 'buy'.
The euro fell 0.03% to $1.3790.
Brent crude futures rose $0.009 to $106.930 per barrel, according to the ICE. |
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| | US Market Report | | US open: Stocks slip after US manufacturing miss - US, Chinese manufacturing PMIs weaken
- Ukraine crisis ongoing, interim PM orders withdrawal
- Apple gains on Comcast reports
Dow Jones: -0.02%
Nasdaq: -0.86%
S&P 500: -0.35%
US equity indices were trading lower on Monday after data showed that domestic manufacturing growth eased in March.
Ongoing geopolitical concerns over Ukraine and fears of an economic slowdown in China were also weighing on markets after the opening bell in New York.
The Dow Jones Industrial Average was more or less flat after having erased earlier gains, the Nasdaq was down 0.9%, while the S&P 500 was 0.4% lower in early trading. The S&P 500 had reached a new intraday record of 1,883.97 the previous session before swinging into the red in afternoon trade.
Markit's preliminary purchasing managers' index (PMI) for US manufacturing in March dropped to 55.5 in March from 57.1 a month earlier. While the sector was still found to be expanding – indicated by a reading above 50 – the consensus forecast was for 56.5.
Investors were also reacting to the HSBC/Markit PMI for Chinese manufacturing which dropped to 48.1 this month from 48.5 in February. This marked the fifth consecutive fall for the index and missed the market's estimate for 49.7.
Crimea crisis
The ongoing Ukraine crisis stepped up a gear over the weekend on reports of Russian troops storming more bases in Crimea following a referendum and subsequent annexation of the region last week.
Ukraine's interim President Olexander Turchynov has now ordered the withdrawal of Ukrainian armed forces from Crimea.
G7 leaders are expected to discuss their response to the annexation of Crimea as they meet for a nuclear security summit in The Hague today. EU and US leaders have already imposed and extended sanctions on a number of high-ranking officials and institutions close to the Kremlin.
Speaking to the BBC, Ukrainian Foreign Minister Andriy Deshchytsia said the risk of war with Russia was increasing. He explained that Russian President Vladimir Putin is opposed to talking to both Ukrainian and Western powers, which poses "quite a danger for the decision-making process". "We could only expect that he might invade," he added.
Apple gains on talks with Comcast
Apple Inc. advanced after The Wall Street Journal reported that the company has held talks with Comcast Corp. about streaming live and on-demand television.
Herbalife rallied after agreeing to nominate three people proposed by billionaire Carl Icahn to its board.
Lighting and electronics group O2Micro dropped after lowering its revenue guidance for the first quarter due to weakness in the TV and notebook market and production delays.
Nu Skin Enterprises, the cosmetics and nutritional supplements firm, was fined $0.54m by Chinese regulators after a review of its sales and promotional practices. However, the stock surged as investors showed their relief that the fine was not higher. |
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| | Broker Tips | | Broker tips: Standard Life, Lloyds, Hargreaves Lansdown... Shore Capital has reiterated its 'hold' recommendation on insurer Standard Life after the company confirmed speculation that it is in talks with Phoenix regarding the potential purchase of the latter's Ignis Asset Management division.
Shore Capital Analyst Eamonn Flanagan said that the move compounds his view that Standard Life is "increasingly setting its stall out as an asset accumulator and asset manager as opposed to a life company". He added: "Such a deal is likely to reduce the likelihood of further special dividends in the short - term."
Investec has upgraded its rating for Lloyds Banking Group from 'hold' to 'buy', telling investors that "it is safe to go back in the water".
"After a 10% 10-week pull-back, we again see reasonable value for a low-risk stock. Upgrade to 'buy'," the broker said.
Galvan Research and Trading has labelled financial services group Hargreaves Lansdown as a 'buy', saying that it should get a boost from George Osborne's 2014 Budget.
Galvan believes that Hargreaves should see an "upsurge in business" as a result of customers beginning to take advantage of the new measures surrounding pensions and ISAs.
Credit Suisse has lowered its recommendation for British American Tobacco from 'outperform' to 'neutral' and reduced its forecasts following the company's full-year results last month.
"The lower [earnings] growth we suggest is reflected in our lower rating. With immediate challenges in emerging markets and FX, we believe that BAT is fairly valued at current levels."
Jefferies has retained its 'buy' rating for technical product firm Diploma but warned that currency headwinds will likely result in mid-single digit downgrades to earnings estimates for this year.
"While this is disappointing, underlying growth is strong and underlying margins should experience a tailwind as the investment for growth programme finishes." | | |
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