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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 open: Stocks drop sharply as Ukraine tensions rise - Ukrainian concerns escalate
- US condemns Russian military move
- Financials fall sharply
- Precious metal miners track gold and silver prices higher
techMARK 2,867.09 -1.30%
FTSE 100 6,744.93 -0.95%
FTSE 250 16,488.43 -1.42%
UK stocks were sold off sharply on Monday morning on the back of the escalating situation in Ukraine, with investors taking profits after a strong performance over the past month.
The FTSE 100 dropped 1% to 6,745 in early trading, following a 4.6% gain for the month of February.
The crisis in Ukraine stepped up a gear over the weekend as Moscow stepped up its military presence in the Crimea region of the Black Sea. The move has been condemned by Russia's G8 partners who labelled it as a "violation of Ukraine's sovereignty".
Russian President Vladimir Putin has insisted that he is protecting his country's interests after the ousting of pro-Russian President Viktor Yanukovych last month.
US Secretary of State, John Kerry, who is travelling to Ukraine today, released a statement on Saturday, saying: "Unless immediate and concrete steps are taken by Russia to de-escalate tensions, the effect on US-Russian relations and on Russia's international standing will be profound."
In other news this morning, the HSBC/Markit purchasing managers' index (PMI) for China's manufacturing sector fell from 49.5 to 48.5 in February. While this was in line with expectations, it showed that the contraction in activity accelerated last month. In contrast, the official China non-manufacturing PMI improved from 53.4 to 55 in February.
Manufacturing PMIs from the UK, Eurozone and US are due out later in the session.
Financials fall, precious metal miners gain
Financial stocks were bearing the brunt of the sell-off this morning with Hargreaves Lansdown, Aberdeen Asset Management, London Stock Exchange, Schroders and Legal & General all suffering losses.
This reduction of risk appetite saw investors flee towards safe-haven assets such as gold and silver this morning, with prices of both metals up over 2% early on. As such, precious metal producers Randgold, Fresnillo, African Barrick Gold and Centamin were among the few risers in London.
The wider mining sector was putting in a mixed performance, however, with heavyweights BHP Billiton, Anglo American and Antofagasta trading lower.
Ukraine-focused iron ore producer Ferrexpo was among the worst performers as investors kept a close eye on geopolitical developments in the region. Similarly, Russia- and emerging markets-focused events group ITE was also registering heavy falls this morning, along with cigarette firm British American Tobacco, which has 10% exposure to Russia.
AstraZeneca was down despite the news that the US Food and Drug Administration has approved the pharmaceutical company's injectable Bydureon Pen treatment for type 2 diabetes. |
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| FTSE 100 - Risers
Randgold Resources Ltd. (RRS) 4,995.00p +5.22%
Fresnillo (FRES) 978.50p +2.84%
BG Group (BG.) 1,100.50p +1.10%
BT Group (BT.A) 410.80p +0.24%
Intertek Group (ITRK) 2,944.00p +0.10%
FTSE 100 - Fallers
Hargreaves Lansdown (HL.) 1,360.00p -2.65%
Aberdeen Asset Management (ADN) 380.70p -2.53%
London Stock Exchange Group (LSE) 1,976.00p -2.52%
GKN (GKN) 395.70p -2.46%
Rio Tinto (RIO) 3,350.50p -2.39%
AstraZeneca (AZN) 3,994.00p -2.20%
Schroders (SDR) 2,656.00p -2.10%
TUI Travel (TT.) 438.20p -2.03%
Standard Life (SL.) 382.10p -2.03%
ARM Holdings (ARM) 990.00p -1.98%
FTSE 250 - Risers
African Barrick Gold (ABG) 299.90p +6.65%
Hellermanntyton Group (HTY) 329.90p +4.86%
Amlin (AML) 467.30p +3.87%
Centamin (DI) (CEY) 56.70p +3.09%
Essar Energy (ESSR) 69.00p +1.47%
UDG Healthcare Public Limited Company (UDG) 372.70p +0.87%
Berendsen (BRSN) 1,055.00p +0.76%
NMC Health (NMC) 467.50p +0.54%
Kazakhmys (KAZ) 306.80p +0.46%
AL Noor Hospitals Group (ANH) 891.50p +0.17%
FTSE 250 - Fallers
ITE Group (ITE) 254.10p -9.83%
Ferrexpo (FXPO) 139.00p -9.15%
Bank of Georgia Holdings (BGEO) 2,169.00p -6.51%
Evraz (EVR) 66.00p -5.78%
Computacenter (CCC) 657.50p -4.01%
Homeserve (HSV) 317.60p -3.73%
Thomas Cook Group (TCG) 178.60p -3.62%
Henderson Group (HGG) 245.70p -3.61%
Betfair Group (BET) 1,110.00p -3.39% |
| | UK Event Calendar | | Monday March 03
INTERIMS
Earthport, Tristel
INTERIM DIVIDEND PAYMENT DATE
Murgitroyd Group
QUARTERLY PAYMENT DATE
JPMorgan Claverhouse Inv Trust
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Auto Sales (US) (15:00)
Construction Spending (US) (15:00)
Personal Consumption Expenditures (US) (13:30)
Personal Income (US) (13:30)
Personal Spending (US) (13:30)
PMI Manufacturing (EU) (09:00)
PMI Manufacturing (GER) (08:55)
GMS
Serabi Gold
FINALS
AL Noor Hospitals Group, Amlin, British Polythene Industries, FBD Holdings, Hellermanntyton Group, Intertek Group, Johnson Service Group, Keller Group, Robert Walters, Senior, TCS Group Holding GDR (Each Repr 1 A Shr) (Reg S), Ultra Electronics Holdings
AGMS
Image Scan Holdings
UK ECONOMIC ANNOUNCEMENTS
Consumer Credit (09:30)
M4 Money Supply (09:30)
M4 Sterling Lending (09:30)
Mortgage Approvals (09:30)
PMI Manufacturing (09:30)
FINAL DIVIDEND PAYMENT DATE
Renew Holdings
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks slide ahead of manufacturing data releases - Manufacturing data out in Eurozone, UK and US
- Chinese manufacturing activity contracts
- Ukraine crisis intensifies
FTSE 100: -1.23%
DAX: -2.31%
CAC 40: -1.71%
FTSE MIB: -1.66%
IBEX 35: -1.86%
Stoxx 600: -1.62%
European stocks declined before the release of a slate of manufacturing data in the Eurozone, the UK and the US.
The purchasing managers' index (PMI) for Eurozone manufacturing is expected to come in at 53 in February, in line with the previous month and above the 50 level that signals expansion.
UK manufacturing PMI is predicted to rise slightly to 56.8 in February from 56.7 in January.
Later on US manufacturing PMI may show the reading increased to 52 last month from 51.3 in January.
Ahead of the release, HSBC's China manufacturing PMI fell to 48.5 in February from 49.5 in January, fuelling fears of a slowdown in the world's second largest economy.
"We think the outlook for the sector remains downbeat," said Capital Economics.
"Despite the recent surge in liquidity we suspect that policymakers will make further efforts to slow credit growth which should continue to weigh on domestic demand and manufacturing activity."
Ukraine tensions
US Secretary of State John Kerry is travelling to the Ukraine today to offer the nation support as Russian troops occupy Crimea.
Ukraine has readied its forces after Russian President Vladimir Putin received parliamentary approval over the weekend to send troops into the neighbouring country.
US President Barack Obama and UK Prime Minster David Cameron have agreed Russia must face "significant costs" if it does not change its course.
Roche, Kuehne & Nagel
Cancer drug maker Roche declined after a study showed no clinical benefits of its METLung lung cancer treatment.
Kuehne & Nagel dropped as the world's biggest sea-freight forwarder reported 2013 earnings that missed analysts' estimates.
Bouygues slumped as Chief Executive Officer Martin Bouygues met with French President Francois Hollande to seek government support for a purchase of SFR, according to Le Journal du Dimanche.
The euro fell 0.19% to $1.3776.
Brent crude futures jumped $1.606 to $110.850 per barrel, according to the ICE. |
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| | US Market Report | | US close: S&P 500 closes at all-time high despite mixed data - S&P 500 hits record high
- US GDP revised lower for fourth quarter
- Chicago PMI, consumer confidence beats forecasts
Dow Jones: 0.30%
Nasdaq: -0.25%
S&P 500: 0.25%
Rising concerns over Ukraine failed to deter investors from pushing the benchmark S&P 500 to a record high on Friday, ending a strong February for the US stock market.
Traders were also shrugging off a worse-than-expected downwards revision to US economic growth, after Chicago manufacturing data and consumer confidence figures came in ahead of predictions.
Despite a pull-back in afternoon trading, the S&P 500 rose 0.25% to a new all-time high of 1,859.53, finishing the month with gains of around 4.3%. The Dow Jones Industrial Average ended 0.30% up, closing February up 3%. The Nasdaq, meanwhile, lost 0.25% but still finished the month up 4.5%.
Markets were extending gains made Thursday when Federal Reserve Chair Janet Yellen delivered a dovish testimony to the Senate. While she noted the recent batch of weak economic releases, Yellen said she believes it could be down to the harsh winter weather.
"What we will be doing in the weeks ahead is to try to get a firmer handle on exactly how much of that set of soft data can be explained by weather and what portion, if any, are due to a softer outlook," the central banker said.
She also said the Fed was likely to continue winding back its monthly asset purchases until the programme ends later this year, but reiterated that tapering is not on a "pre-set course".
Data comes in mixed
US gross domestic product (GDP) rose at a revised annualised pace of 2.4%, compared to 3.2% in the third quarter and the consensus forecast for a revision to 2.5%.
However, Capital Economics pointed out that "the good news is that business investment increased by 7.3%, revised up from the initial estimate of a 3.8% gain. That gain helped to offset an 8.7% decline in residential investment, which was hit by the drop back in existing home sales that has reduced brokers' commissions."
Pending US home sales edged 0.1% up in January, well below what was expected, although the previous month's number was revised higher.
The University of Michigan's consumer confidence index for the month of February increased from 81.2 to 81.6 consensus: 81.2 , although the expectations sub-index was off slightly.
MNI's Chicago manufacturing sector Purchasing Managers' Index for the month of February edged higher by 0.2 points to reach 59.8, well above ahead of the consensus estimates.
Southwestern drops
Southwestern Energy fell sharply despite beating forecasts with fourth-quarter earnings of 41 cents per share, compared with a loss of $1.02 previously.
Customer-management software firm Salesforce also slumped after guidance for its first quarter profits came in slightly below estimates.
KBR Inc. slumped as the military contractor forecast 2014 earnings per share of $1.75 to $2.10, below analysts' estimates of $2.49, and reported fourth-quarter revenue that missed forecasts.
Jos. A. Bank advanced as the menswear chain rejected a $1.78bn bid from Men's Wearhouse late yesterday.
Arena Pharmaceuticals declined as the maker of the weight-loss drug Belviq widened its fourth-quarter loss. |
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| | Newspaper Round Up | | Monday newspaper round-up: Russia, Rolls Royce, Ladbrokes Europe's two biggest states were on the brink of armed conflict last night after Russia tightened its grip by surrounding Ukrainian military bases and President Putin defended the invasion as "an appropriate response". Ukraine warned that it was "on the brink of disaster" as it put its military on high alert on a day of increasing tensions. – The Times
Rolls-Royce is facing a new corruption inquiry over allegations that it paid bribes to win lucrative contracts to supply Hawk trainer jet engines to an aircraft manufacturer owned by the Indian government. According to officials, Indian defence minister A. K. Antony called in detectives from the Central Bureau of Investigation (CBI), which handles high-profile cases, after allegations of bribes were made in an anonymous letter. – The Telegraph
Chris Bell, the former Chief Executive of Ladbrokes, is planning to bring an Israeli gaming marketing company to the London market with a $100m (£60m) capitalisation. Mr Bell, who stood down from the bookmaker in 2010 after a 20-year career, is chairman of XL Media. – The Telegraph
Research to be released today shows that the take-up of industrial space rose by 24% to 94.2m sq ft last year and is expected to grow even further this year. Lambert Smith Hampton said that the "economic recovery, an improving manufacturing sector and the drive by retailers and the e-commerce industry to improve supply chains" was boosting demand. – The Times
The surging housing market has broadened out beyond London and the south-east, with prices up in more than half the country for the first time in 10 years, according to data from property researchers Hometrack. In England and Wales, prices rose for 51% of postcodes in February, the highest proportion since July 2004, researchers said. This pushed average prices up 0.7%– the biggest monthly rise since April 2007. – The Guardian
Business leaders are today calling on the Chancellor to use his upcoming Budget to prioritise measures to boost investment and export trade in order to rebalance the economy. In a wide-ranging submission ahead of George Osborne's March 19th speech, the CBI also proposes bringing in an energy package to encourage investment in generation, amid fears that the lights could go out if new capacity is not created. – The Scotsman | | |
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