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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 trading lower ahead of busy day - Ukraine-Russia tensions running high
- UK Budget in focus
- FOMC meeting concludes later on
- Antofagasta, HSBC hit by downgrades
- Smiths Group warns of currency headwinds
techMARK 2,810.68 +0.27%
FTSE 100 6,591.09 -0.21%
FTSE 250 16,348.73 -0.03%
UK stock opened with small losses on Wednesday as investors reacted to escalating tensions in Crimea overnight and awaited the all-important Budget statement from Chancellor George Osborne.
The FTSE 100 was trading down 0.2% at 6,591 in early trading.
Mining stocks were among the worst performers with Antofagasta suffering from a broker downgrade, while Smiths Group fell after giving cautious guidance for the full year.
The index gained 0.5% on Tuesday after Vladimir Putin said he did not plan to send more troops further into Ukraine. The Russian President signed a treaty yesterday to incorporate Crimea into the Russian Federation following this weekend's landslide referendum for the region to leave Ukraine.
However, developments overnight are likely to keep investors' nerves on edge after a Ukrainian officer was killed by Russian forces near the Crimean capital of Simferopol.
Ukrainian Prime Minister Arseniy Yatsenyuk called the shooting a "war crime" and said that the conflict between the neighbouring nations is "moving from a political one to a military one".
Closer to home, Osborne will deliver his 2014 Budget at 12:30. However, given that there is just 14 months to go before the General Election, analysts at FxPro said they are expecting this Budget to be "more of a political an than economic one".
"The affect this has on sterling or the FTSE 100 is often overplayed but this won't stop investors from keeping a close eye, in particular when the Office of Budget Responsibilities growth forecasts are announced," they said.
Meanwhile, the two-day meeting of the Federal Open Market Committee concludes this evening and will be in focus for US markets later on with policymakers widely expected to continue tapering their asset purchase programme by $10bn a month.
Antofagasta leads miners lower, Smiths Group drops
Copper producer Antofagasta was among the worst performers this morning after Credit Suisse downgraded its rating 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.
Other miners, including heavyweights Anglo American, Glencore Xstrata and Rio Tinto, were also down this morning, tracking weakness in metal prices.
UK manufacturing firm Smiths Group fell sharply despite reporting a smaller-than-expected decline in adjusted profits in its first half, as the company warned that foreign exchange headwinds will increase towards the end of the year. Judging by current exchange rates, currency movements will have a 4-5% impact on earnings for the full year, compared with only a marginal impact in the first half.
Global banking group HSBC was also under the weather after Credit Suisse lowered the stock by two notches from 'outperform' to 'underperform' and slashed its target. The bank said that despite strong capital generation, it "no longer expect[s] a significant additional capital return in the next 24-36 months".
Leading the upside was housebuilder Persimmon and engineering group Rolls-Royce after UBS raised both names to 'buy'.
On the FTSE 250, the share price of Ophir Energy sunk after the company said it has failed to encounter significant hydrocarbons at the Padouck Deep-1 well in the Ntsina Block offshore Gabon. Chief Executive Nick Cooper said: "The Padouck Deep-1 result is disappointing but its failure appears to be prospect-specific and does not dampen our enthusiasm for the broader pre-salt play offshore Gabon." |
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| | FTSE 100 - Risers
BAE Systems (BA.) 415.00p +1.77%
Persimmon (PSN) 1,385.00p +1.32%
Reckitt Benckiser Group (RB.) 4,876.00p +1.31%
Rolls-Royce Holdings (RR.) 1,073.00p +1.23%
Barclays (BARC) 238.90p +1.21%
Vodafone Group (VOD) 228.30p +0.75%
Aberdeen Asset Management (ADN) 379.00p +0.69%
Old Mutual (OML) 193.00p +0.63%
Centrica (CNA) 336.10p +0.60%
Shire Plc (SHP) 3,140.00p +0.51%
FTSE 100 - Fallers
Smiths Group (SMIN) 1,274.00p -5.70%
Antofagasta (ANTO) 798.50p -3.62%
Anglo American (AAL) 1,429.00p -2.62%
InterContinental Hotels Group (IHG) 1,885.00p -1.72%
Glencore Xstrata (GLEN) 306.25p -1.67%
Travis Perkins (TPK) 1,869.00p -1.48%
easyJet (EZJ) 1,605.00p -1.23%
ITV (ITV) 200.90p -1.03%
Kingfisher (KGF) 406.70p -1.00%
RSA Insurance Group (RSA) 95.35p -0.99%
FTSE 250 - Risers
Imagination Technologies Group (IMG) 178.00p +8.40%
Evraz (EVR) 65.15p +7.51%
Victrex plc (VCT) 1,885.00p +2.22%
Kenmare Resources (KMR) 14.80p +1.72%
Unite Group (UTG) 436.60p +1.70%
Cranswick (CWK) 1,220.00p +1.67%
Tullett Prebon (TLPR) 304.00p +1.54%
Crest Nicholson Holdings (CRST) 394.50p +1.54%
Big Yellow Group (BYG) 547.00p +1.48%
Ashmore Group (ASHM) 310.40p +1.34%
FTSE 250 - Fallers
Ophir Energy (OPHR) 236.40p -19.97%
Partnership Assurance Group (PA.) 292.00p -8.52%
Millennium & Copthorne Hotels (MLC) 578.00p -3.67%
Ferrexpo (FXPO) 144.00p -2.37%
Moneysupermarket.com Group (MONY) 182.90p -2.19%
Dixons Retail (DXNS) 49.79p -2.18%
Cairn Energy (CNE) 165.00p -1.90%
Fidelity European Values (FEV) 1,500.00p -1.77%
Premier Oil (PMO) 302.30p -1.53%
Galliford Try (GFRD) 1,305.00p -1.51%
FTSE TechMARK - Risers
Ricardo (RCDO) 700.50p +1.82%
Torotrak (TRK) 21.25p +1.19%
Innovation Group (TIG) 33.75p +0.75%
Wolfson Microelectronics (WLF) 129.75p +0.58%
Dialight (DIA) 881.00p +0.51%
Sepura (SEPU) 139.00p +0.36%
Vectura Group (VEC) 147.00p +0.34%
FTSE TechMARK - Fallers
NCC Group (NCC) 189.75p -6.53%
BATM Advanced Communications Ltd. (BVC) 16.75p -1.47%
SDL (SDL) 339.75p -0.95%
Oxford Biomedica (OXB) 2.62p -0.94% |
| | UK Event Calendar | | Wednesday March 19
INTERIMS
Digital Globe Services Ltd (DI), Purecircle Limited (DI), Smiths Group
INTERIM EX-DIVIDEND DATE
Abcam, AdEPT Telecom, Brooks Macdonald Group, Close Brothers Group, Dunelm Group, Foresight Solar VCT, Galliford Try, Go-Ahead Group, Haynes Publishing Group, London Finance & Investment Group, NWF Group, Renewable Energy Generation Ltd., Waterman Group
QUARTERLY PAYMENT DATE
M Winkworth
QUARTERLY EX-DIVIDEND DATE
British Land Co
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (US) (12:30)
Crude Oil Inventories (US) (14:30)
Current Account (US) (12:30)
FOMC Interest Rate (US) (18:00)
MBA Mortgage Applications (US) (11:00)
FINALS
Cape, Charles Taylor, EG Solutions, Frutarom Industries Ltd GDR (Reg S), NetScientific , Outsourcery, Partnership Assurance Group , PPHE Hotel Group Ltd, RTC Group
ANNUAL REPORT
Countrywide, International Personal Finance
SPECIAL EX-DIVIDEND PAYMENT DATE
Ferrexpo, Lancashire Holdings Limited, Millennium & Copthorne Hotels
EGMS
NB Global Floating Rate Income Fund Ltd GBP
IMSS
Domino Printing Sciences
AGMS
RM, Safestore Holdings
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Minutes (09:30)
Chancellor Budget Statement (12:30)
Claimant Count Rate (09:30)
Unemployment Rate (09:30)
FINAL EX-DIVIDEND DATE
Anglo American, Athelney Trust, Baronsmead VCT 5, Dairy Farm International Holdings Ltd. (Singapore), Fidelity European Values, Hongkong Land Holding Ltd. (Sing.Reg), InterContinental Hotels Group, Jardine Matheson Holdings Ltd (Singapore Reg), Jardine Strategic Holdingd Ltd. (Singapore), Lancashire Holdings Limited, Law Debenture Corp., Low & Bonar, Maintel Holdings, Mandarin Oriental International (Singapore), Millennium & Copthorne Hotels, Moneysupermarket.com Group
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks slump ahead of UK Budget, Fed policy decision - UK Budget released
- BoE unveils meeting minutes
- UK jobs data out
- Fed makes policy decision
FTSE 100: -0.34%
DAX: -0.12%
CAC 40: -0.35%
FTSE MIB: -0.52%
IBEX 35: -0.13%
Stoxx 600: -0.18%
European stocks slid ahead of the release of the UK Budget; the Bank of England's meeting minutes, UK jobs data and the Federal Reserve's policy decision.
UK Chancellor George Osborne will at 12:30 GMT present the Budget 2014-15 which will outline the government's revised spending and taxes.
The government has already announced some of its plans including that corporation tax rate will be cut from 23% to 21% and will go down again to 20% in April next year for companies that generate more than £1.5m profit.
A number of tax reductions will be introduced as the government tries to win favour ahead of the 2015 general election.
On Sunday, Osborne also announced the government would extend by four years the Help to Buy scheme to boost mortgage lending. The programme has helped improve the housing market but it has been criticised for unsustainable growth as demand outstrips supplies.
Alongside the Budget, the Office Budget of Responsibility is anticipated to announce the largest annual upgrade to economic growth since the millennium.
Elsewhere in the UK, the BoE will release the minutes of its last policy meeting. Reports on UK jobless claims, claimant count, employment change and the unemployment rate are also due out.
In the US, the Federal Reserve will wrap up its two-day policy meeting.
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 divided on sanctions against Russia
European leaders are 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 moved to formally accept the accession, defying sanctions imposed by European Union (EU) and US leaders yesterday who labelled the vote as illegal.
US President Barack Obama has called for a meeting with G7 today in Netherlands to discuss further action.
EU's Van Rompuy will travel to Moscow to meet Putin on Wednesday before European leaders meet in Brussels the following day to discuss sanctions against Russia. They will mull over sanctions, ranging from possible arms embargo to restrictions on natural-gas deliveries.
Inditex, Brenntag
Inditex gained after posting 2013 profit in line with analysts' estimates.
Ophir Energy slumped after saying it failed to encounter significant hydrocarbons at the Padouck Deep-1 well in Gabon.
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.
The euro dropped 0.16% to $1.3912.
Brent crude futures fell $0.338 to $106.430 per barrel, according to the ICE. |
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| | US Market Report | | US close: S&P 500 nears record high after housing data, Putin comments - S&P 500 within 0.3 per cent of record high
- Housing starts flat, permits jump
- Russia moves to annex Crimea
- Tensions high after shooting overnight
Dow Jones: 0.55%
Nasdaq: 1.25%
S&P 500: 0.72%
US stock markets posted decent gains on Tuesday, helped by upbeat housing data and easing fears that Russia could ramp up its military presence in Ukraine.
The Dow Jones Industrial Average rose 0.6% to 16,336, the Nasdaq jumped 1.3% to close at 4,333, while the S&P 500 ended 0.7% higher at 1,872.25, within just 0.3% of its all-time closing high of 1,878.04.
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.
Meanwhile, Russian President Vladimir Putin said on Tuesday that Moscow has no plans to send its troops further into Ukraine after annexing Crimea.
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."
While the market breathed a sigh of relief on Tuesday that Putin's speech did not lead to an escalation of conflict between the neighbouring countries, developments overnight are likely to keep tensions high after a Ukrainian officer was killed by Russian forces near the Crimean capital of Simferopol.
"The conflict is moving from a political one to a military one because of Russian soldiers," said Ukrainian Prime Minister Arseniy Yatsenyuk. He called the shooting a "war crime".
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.
Microsoft, Wal-Mart, GameStop
Tech group Microsoft closed 4% higher on speculation that its Office software will soon be available to use on Apple's mobile devices. The stock finished at its highest level since 2000.
Retail titan Wal-Mart edged higher 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, finished flat.
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.
S&P 500 - Risers
United States Steel Corp. (X) $25.50 +5.42%
Fossil Group Inc (FOSL) $118.04 +4.61%
Sandisk Corp. (SNDK) $77.82 +4.12%
CBRE Group Inc (CBG) $28.29 +4.05%
Microsoft Corp. (MSFT) $39.55 +3.94%
Hewlett-Packard Co. (HPQ) $30.56 +3.66%
Southwestern Energy Co. (SWN) $45.31 +3.64%
Gilead Sciences Inc. (GILD) $77.77 +3.07%
Lam Research Corp. (LRCX) $54.83 +2.93%
Cliffs Natural Resources Inc. (CLF) $19.35 +2.93%
S&P 500 - Fallers
GameStop Corp. (GME) $38.39 -3.42%
NASDAQ OMX Group Inc. (NDAQ) $38.50 -3.10%
TJX Companies Inc. (TJX) $60.80 -2.01%
Newmont Mining Corp. (NEM) $25.27 -1.94%
IntercontinentalExchange Group Inc (ICE) $205.94 -1.54%
Baker Hughes Inc. (BHI) $61.84 -1.53%
Duke Energy Corp. (DUK) $70.24 -1.21%
Time Warner Cable Inc. (TWC) $136.59 -1.21%
Tyco International Ltd (TYC) $42.90 -1.17%
Consolidated Edison Inc. (ED) $54.41 -1.16%
Dow Jones I.A - Risers
Microsoft Corp. (MSFT) $39.55 +3.94%
Pfizer Inc. (PFE) $31.93 +1.62%
Unitedhealth Group Inc. (UNH) $78.00 +1.62%
Visa Inc. (V) $226.41 +1.18%
Chevron Corp. (CVX) $116.24 +1.02%
General Electric Co. (GE) $25.65 +0.87%
Verizon Communications Inc. (VZ) $46.70 +0.84%
Nike Inc. (NKE) $79.64 +0.84%
JP Morgan Chase & Co. (JPM) $58.06 +0.83%
Caterpillar Inc. (CAT) $96.41 +0.77%
Dow Jones I.A - Fallers
Boeing Co. (BA) $124.04 -1.10%
McDonald's Corp. (MCD) $97.31 -0.30%
Procter & Gamble Co. (PG) $79.77 -0.09%
Nasdaq 100 - Risers
Sandisk Corp. (SNDK) $77.82 +4.12%
Microsoft Corp. (MSFT) $39.55 +3.94%
Gilead Sciences Inc. (GILD) $77.77 +3.07%
Amgen Inc. (AMGN) $127.47 +2.91%
Tesla Motors Inc (TSLA) $240.04 +2.59%
Seagate Technology Plc (STX) $51.93 +2.39%
Nvidia Corp. (NVDA) $18.24 +2.36%
Micron Technology Inc. (MU) $24.49 +2.34%
Tractor Supply Company (TSCO) $74.01 +2.34%
Celgene Corp. (CELG) $153.69 +2.30%
Nasdaq 100 - Fallers
Ross Stores Inc. (ROST) $73.25 -1.13%
Comcast Corp. (CMCSA) $50.22 -1.10%
Sirius XM Holdings Inc (SIRI) $3.39 -0.88%
DIRECTV (DTV) $76.17 -0.86%
Liberty Global plc Series A (LBTYA) $42.42 -0.80%
Activision Blizzard Inc. (ATVI) $21.10 -0.61%
Netflix Inc. (NFLX) $420.25 -0.58%
Charter Communications Inc. (CHTR) $125.99 -0.40%
Expeditors International Of Washington Inc. (EXPD) $38.80 -0.23%
CH Robinson Worldwide Inc (CHRW) $50.96 -0.22% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: Bank of England, Protectionism, Listings The central bank must focus on both financial stability and inflation. To concentrate just on the latter could turn into a dangerous distraction. In particular, officials must watch against excessive risk-taking amidst an environment of predictably low interest rates, as occurred before the last financial crisis, Bank of England Governor Mark Carney said in a speech on Tuesday night. For that reason, in parallel Carney announced changes to the composition of the Monetary Policy Committee, including the naming of an outsider to the post of Deputy Governor and changes in various posts meant to shake-up the decision making process at the monetary authority, The Scotsman writes.
A significant part of the UK financial services industry's total tax contribution to Britain, about £25bn out of a total of £65bn, may be at risk as a result of increasingly protectionist financial regulations both in Europe and the UK, according to a report from TheCityUK. More and more, the new rules are asking that trading should be conducted within national borders instead of via international hubs, such as the City. Worse even, Britain stands to lose up to 200,000 jobs as a result of those same new rules, The Times reports.
AS Watson, the Hong Kong firm behind Superdrug and The Perfume Shop, is planning a London listing in the latest wave of floats, according to reports. The firm is owned by tycoon Li Ka-Shing, the richest man in Asia and the owner, amongst other assets, of London's electricity grid and Northumbrian Water. The flotation could reportedly raise £3.6bn in funds, The Daily Mail writes.
Broadband provider TalkTalk has unveiled a raft of price increases across its product range, alongside the addition of new Sky channels to its Plus TV package. In fact, as of May its customers may now have to fork out up to £42 more per year for its broadband and TV packages. This is the second price rise announced in six months. Its popular Essentials TV package and its low-cost SimplyBroadband deal will now be £1 a month dearer for users of those services. All line rental customers will see their charges increase by 55p a month to £15.95, The Guardian says.
Legal and General has decided to move into the affordable housing sector as part of its wider strategy in infrastructure. It is to purchase 4,000 units from Places for People for approximately £252m. In turn, that company will deploy those funds towards the construction of 7,000 new housing units over the next seven years. For its part, the insurance giant obtains long-term returns which match up well with the long-term liabilities in its pensions business, The Daily Express says.
Do-it-yourself investors stand to gain hundreds of pounds a year from reduced charges as fund managers and fund supermarkets are forced to provide greater transparency on what they charge. Now, instead of charging the customer together, without revealing what each part makes, they must each do so separately, The Daily Mail writes. | | |
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