| | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: Stocks drop after hawkish comments from Yellen - Yellen says rate hike could come six months after QE ends
- Fed continues to taper by 10bn dollars a month
- Next impresses with full-year results
techMARK 2,804.74 -0.50%
FTSE 100 6,546.18 -0.41%
FTSE 250 16,267.89 -0.43%
UK stocks fell on Thursday morning, following a sell-off on US and Asian markets overnight, as investors digested a surprisingly hawkish statement from newly appointed Fed Chairwoman Janet Yellen.
The FTSE 100 was trading 0.4% lower at 6,546 in early trading.
Yellen, speaking last night after the Federal Open Market Committee voted to taper its asset purchase programme by another $10bn a month to $55bn, signalled that the first rate hike could come six months after quantitative easing (QE) ends.
Stocks on Wall Street quickly dropped in the aftermath with the Dow Jones Industrial Average, Nasdaq and S&P 500 all finishing around 0.6-0.7% lower. Meanwhile, US bond yields surged, while the dollar strengthened against its major counterparts.
If the central bank continues to taper at the same rate over the next month months, QE should come to an end in October or November, which means that interest rates could rise as soon as April or May. Ahead of this week's meeting, analysts had widely expected a rate hike to come towards the end of 2015.
While Yellen's comments came as a surprise to many, the message delivered about the economy was upbeat, as policymakers lowered their forecasts for unemployment which is set to fall to 6.1-6.3% by the year-end.
The Fed also adjusted its forward guidance to put less emphasis on joblessness as a goalpost for when tightening will begin. Instead - similar to Governor Mark Carney's revamped forward guidance at the Bank of England - the Fed will look at a broad range of economic indicators in their decision.
"We are unquestionably going to have to get used to a world of higher interest rates next year as the Bank of England and the Federal Reserve normalise monetary policy," said Senior Analyst Angus Campbell from FxPro.
"Even the ECB has become less dovish after avoiding a widely expected rate cut at their last meeting," he said.
Next rises, financials gain
Next rose after the High Street retailer reported annual profit that met the top end of its guidance, driven by growth in online sales. The company achieved an 11.8% rise in pre-tax profit to £695m in the year through January 2014, reaching the upper range of the company's forecast of £684m-700m.
Financial stocks were performing well this morning, including RBS, Standard Chartered and HSBC. RBS was helped by an upgrade to 'hold' by Investec.
Insurers Legal & General and Aviva were also making small gains, recovering after a sell-off yesterday on the back of a shake-up to the annuities market announced by George Osborne in his 2014 Budget.
Bookmakers William Hill and Ladbrokes, however, continued to fall after the Chancellor revealed an increase to the duty on fixed-odds betting terminals.
Manufacturing outfit Smiths Group, which yesterday disappointed with its interim results, was extending losses after HSBC lowered its rating on the stock to 'underweight'.
Engineering firm Babcock was also suffering from a downgrade by Citigroup to 'neutral'.
Heading the other way was electricity provider SSE after receiving a ratings upgrade from Morgan Stanley. Sector peer United Utilities, however, fell after underwhelming with a trading update this morning, which said it expects higher profits and revenues in the year to March 31st. |
| | INVEST IN BRAZIL - 15.5% fixed returns in just one year | | A proven investment in Brazil's 4th biggest metropolis. Only limited availability. For your FREE Brochure, Click Here. |
| FTSE 100 - Risers
SSE (SSE) 1,477.00p +2.71%
Royal Bank of Scotland Group (RBS) 306.70p +1.72%
Next (NXT) 6,690.00p +1.67%
Aviva (AV.) 496.40p +1.22%
London Stock Exchange Group (LSE) 2,026.00p +0.95%
HSBC Holdings (HSBA) 597.00p +0.88%
Glencore Xstrata (GLEN) 302.70p +0.46%
Petrofac Ltd. (PFC) 1,382.00p +0.44%
Prudential (PRU) 1,345.00p +0.41%
Sports Direct International (SPD) 853.50p +0.41%
FTSE 100 - Fallers
Admiral Group (ADM) 1,451.00p -2.36%
Resolution Ltd. (RSL) 327.90p -2.12%
Centrica (CNA) 324.50p -2.11%
Hargreaves Lansdown (HL.) 1,480.00p -1.60%
Mondi (MNDI) 1,055.00p -1.49%
National Grid (NG.) 818.50p -1.39%
CRH (CRH) 1,628.00p -1.39%
United Utilities Group (UU.) 784.00p -1.38%
WPP (WPP) 1,221.00p -1.37%
InterContinental Hotels Group (IHG) 1,866.00p -1.37%
FTSE 250 - Risers
St James's Place (STJ) 903.00p +4.33%
Evraz (EVR) 64.10p +2.31%
Kenmare Resources (KMR) 14.55p +2.18%
AL Noor Hospitals Group (ANH) 926.00p +2.09%
Savills (SVS) 627.50p +1.87%
Alent (ALNT) 332.60p +1.40%
JD Sports Fashion (JD.) 1,570.68p +1.27%
Wetherspoon (J.D.) (JDW) 852.00p +1.19%
Premier Farnell (PFL) 222.50p +1.14%
Rathbone Brothers (RAT) 1,779.00p +1.08%
FTSE 250 - Fallers
Partnership Assurance Group (PA.) 129.00p -9.79%
Perform Group (PER) 248.90p -4.27%
Intu Properties (INTU) 309.50p -4.24%
Hellermanntyton Group (HTY) 310.00p -4.02%
Ladbrokes (LAD) 135.10p -3.77%
888 Holdings (888) 139.00p -2.66%
Kazakhmys (KAZ) 247.90p -2.36%
Workspace Group (WKP) 552.50p -2.21%
Essar Energy (ESSR) 63.10p -2.17% |
| | UK Event Calendar | | Thursday March 20
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Bloomberg Consumer Confidence (US) (13:45)
Continuing Claims (US) (12:30)
Existing Home Sales (US) (14:00)
Initial Jobless Claims (US) (12:30)
Leading Indicators (US) (14:00)
Philadelphia Fed Index (US) (14:00)
Producer Price Index (GER) (07:00)
Q4
OJSC Novolipetsk Steel GDS (Reg S)
GMS
Premier Foods
FINALS
Arbuthnot Banking Group, Cello Group, DP World Limited, EMIS Group, MyCelx Technologies (DI), Next, OJSC Novolipetsk Steel GDS (Reg S), Portmeirion Group, Premier Farnell, Robinson, Savills, Secure Trust Bank, Sopheon , Synairgen, Ted Baker, UK Commercial Property Trust, WANdisco, Ophir Energy, M&C Saatchi, United Utilities
ANNUAL REPORT
Elementis, Laird, New World Resources A Shares
IMSS
Crest Nicholson Holdings
SPECIAL EX-DIVIDEND PAYMENT DATE
RM
AGMS
Arden , Chemring Group, Crest Nicholson Holdings, CVC Credit Partners European Opportunities Ltd EURO, Gaming Realms, Ixico
TRADING ANNOUNCEMENTS
Investec
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Surveys (11:00)
FINAL DIVIDEND PAYMENT DATE
Catlin Group Ltd.
|
| | PROVEN Trading Strategy - Currently running at 70% success rate | | Earn a tax free income trading, from just 20 minutes a day – no experience needed. Our powerful trading software will help you decide when to enter trades and how to maximise profits.
Register for a FREE brochure and trading guide, Click Here. |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks fall as Yellen signals interest rate rise - Yellen signals interest rate hike
- EU meets to tackle Crimea turmoil
- France and Spain sell bonds
FTSE 100: -0.64%
DAX: -0.55%
CAC 40: -0.56%
FTSE MIB: -0.18%
IBEX 35: -0.52%
Stoxx 600: -0.44%
European stocks declined after Federal Reserve Chair Janet Yellen indicated that the central bank could raise interest rates in about six months after it ends quantitative easing.
Yellen's remarks came after the Federal Open Market Committee (FOMC) voted to scale back asset purchase programme by another $10bn a month to $55bn, its third staged reduction of stimulus, as expected by analysts.
Bond purchases should come to an end in October or November if the Fed continues to taper at the same rate over coming months.
Speaking after the FOMC announced its latest policy decision, Yellen said interest rates would increase "in the order of around six months". Analysts had widely expected a rate hike to come towards the end of 2015.
"Taking into consideration Yellen's comments, I still don't think the first rate hike will come until later in 2015, although a lot can change between now and then," said Craig Erlam, analyst at Alpari.
"Now that traders have had time to digest Yellen's comments and look beyond her words to what she actually meant, I think we could see a small correction this morning."
Turning to today's agenda in the US will be the release of data on weekly jobless claims and existing home sales. The Fed will also release if Dodd-Frank Act Supervisory stress test results for medium-sized firms, to ensure institutions have sufficient capital to absorb losses and support operations during adverse economic conditions.
EU leaders to consider sanctions over Crimea crisis
European Union leaders are due to meet in Brussels today to discuss how to handle Russia's annexation of Crimea from Ukraine.
Russian President Vladimir Putin signed a treaty on Tuesday accepting Crimea as a sovereign state following a referendum on Sunday which showed an overwhelming support for the region to leave Ukraine.
The US and EU have said they would not recognise the referendum.
European leaders are said to be divided on what steps to take next but are said to be considering further sanctions as tensions between Russia and Ukraine remain high.
On Wednesday pro-Russia forces seized two bases on Wednesday, including Ukraine's navy headquarters in Sevastopol.
United Nations Chief Ban Ki-moon will visit Russian leaders in Moscow today to urge a diplomatic solution to the crisis.
French and Spanish auctions
Spain is due to sell €4-5bn of 2017, 2019 and 2028 bonds, with results due around 09:30 GMT.
France will then publish the results of a sale of €7-8bn of 2016, 2017 and 2019 fixed-rate bonds and €1.0-1.5bn of bonds linked to French and Eurozone inflation.
GSK, Munich Re
GlaxoSmithKline declined after saying its experimental lung-cancer drug failed to meet its objectives in a clinical study.
Munich Re gained after the reinsurer announced it will buy back shares worth €1bn before its 2015 shareholder meeting.
Credit Agricole rallied after France's third largest bank said it is targeting at least €4bn of annual net income by 2016, above analysts' forecasts.
The euro fell 0.06% to $1.3825.
Brent crude futures dropped $0.132 to $105.70 per barrel, according to the ICE. |
| | UKs booming asset class... | | Get 10% fixed returns for 10 years and see why the care home investment market is about to boom. Our unique opportunity in The Calder Valley is one not to be missed Register your details here to receive your FREE brochure |
| | US Market Report | | US close: Stocks drop after Yellen signals first rate hike - Hawkish Yellen takes markets by surprise
- Rate hike could come six months after QE ends
- Forward guidance adjusted
- Developments in Crimea still in focus
Dow Jones: -0.70%
Nasdaq: -0.59%
S&P 500: -0.61%
After a subdued start, US stocks quickly swung into the red on Wednesday after Federal Reserve Chairwoman Janet Yellen caught markets off guard by saying that the first rate hike could come six months after quantitative easing (QE) ends.
The Dow Jones Industrial Average ended 0.7% lower, while the Nasdaq and S&P 500 both fell around 0.6%.
Yellen's comments came after the Federal Open Market Committee voted to taper its asset purchase programme by another $10bn a month to $55bn, its third staged reduction of stimulus.
If the central bank continues to taper at the same rate over the next month months, QE should come to an end in October or November, which means that interest rates could rise as soon as April of May. Ahead of this week's meeting, analysts had widely expected a rate hike to come towards the end of 2015.
While the unexpected hawkishness from the new Fed chair came as a surprise to many, the message delivered about the economy was upbeat, as policymakers lowered their forecasts for unemployment which is set to fall to 6.1-6.3% by the year-end.
The Fed also adjusted its forward guidance to put less emphasis on joblessness as a goalpost for when tightening will begin. Instead - similar to Governor Mark Carney's revamped forward guidance at the Bank of England - the Fed will look at a broad range of economic indicators in their decision.
Heightened geopolitical tensions between Russia and the West were acting as a backdrop for markets on Wednesday after US President Barack Obama called for a meeting with G7 to discuss further possible sanctions on officials following the annexation of Crimea.
UK Prime Minister David Cameron has reportedly called for economic sanctions to be agreed upon at Thursday'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 who said there was a rising possibility that Washington will target the assets of several state-owned enterprises as early as this week.
KB Homes and Fed Ex rise
Builder KB Homes was higher after reporting first-quarter revenue of $450.7m, comfortably above analysts' estimates.
Delivery giant FedEx was subdued after the release of weaker-than-expected quarterly earnings as a result of poor winter weather.
JPMorgan Chase & Co. edged higher amid reports that it is selling its physical commodities business to Swiss trade house Mercuria.
Google fell after revealing plans to help develop smart watches and other wearable computers based on its Android mobile operating system.
S&P 500 - Risers
First Solar Inc. (FSLR) $69.40 +20.57%
Sears Holdings Corp. (SHLD) $48.30 +5.27%
Hewlett-Packard Co. (HPQ) $31.62 +3.47%
CIGNA Corp. (CI) $80.28 +3.33%
Charles Schwab Corp. (SCHW) $27.58 +3.22%
Humana Inc. (HUM) $116.96 +3.09%
Genworth Financial Inc. (GNW) $17.56 +2.63%
Regions Financial Corp. (RF) $11.09 +2.59%
F5 Networks Inc. (FFIV) $113.46 +2.42%
Zoetis Inc (ZTS) $29.91 +2.15%
S&P 500 - Fallers
Ventas Inc. (VTR) $58.92 -3.24%
Consolidated Edison Inc. (ED) $52.68 -3.18%
Newmont Mining Corp. (NEM) $24.50 -3.05%
Cognizant Technology Solutions Corp. (CTSH) $49.61 -2.90%
Alexion Pharmaceuticals Inc. (ALXN) $175.92 -2.77%
TECO Energy Inc. (TE) $16.58 -2.76%
Marathon Petroleum Corporation (MPC) $91.65 -2.64%
Autodesk Inc. (ADSK) $51.05 -2.63%
NASDAQ OMX Group Inc. (NDAQ) $37.50 -2.60%
CBRE Group Inc (CBG) $27.58 -2.51%
Dow Jones I.A - Risers
Unitedhealth Group Inc. (UNH) $79.96 +2.51%
Intel Corp. (INTC) $25.02 +0.81%
JP Morgan Chase & Co. (JPM) $58.30 +0.41%
Goldman Sachs Group Inc. (GS) $168.18 +0.05%
Cisco Systems Inc. (CSCO) $21.63 +0.00%
Dow Jones I.A - Fallers
Walt Disney Co. (DIS) $80.52 -1.79%
Boeing Co. (BA) $122.24 -1.45%
General Electric Co. (GE) $25.28 -1.44%
McDonald's Corp. (MCD) $96.10 -1.24%
Procter & Gamble Co. (PG) $78.78 -1.24%
Visa Inc. (V) $223.82 -1.14%
3M Co. (MMM) $131.23 -1.14%
International Business Machines Corp. (IBM) $184.71 -1.12%
E.I. du Pont de Nemours and Co. (DD) $66.07 -1.09%
Exxon Mobil Corp. (XOM) $93.73 -1.03%
Nasdaq 100 - Risers
F5 Networks Inc. (FFIV) $113.46 +2.42%
Starbucks Corp. (SBUX) $75.91 +1.76%
Nvidia Corp. (NVDA) $18.56 +1.73%
Liberty Media Corporation - Class A (LMCA) $138.01 +1.68%
Intuitive Surgical Inc. (ISRG) $434.54 +1.29%
Sandisk Corp. (SNDK) $78.79 +1.25%
Vimpelcom Ltd Ads (VIP) $9.06 +1.12%
Avago Technologies Ltd. (AVGO) $64.41 +0.92%
Systems Inc. (CTXS) $61.85 +0.90%
Intel Corp. (INTC) $25.02 +0.81%
Nasdaq 100 - Fallers
Cognizant Technology Solutions Corp. (CTSH) $49.61 -2.90%
Alexion Pharmaceuticals Inc. (ALXN) $175.92 -2.77%
Autodesk Inc. (ADSK) $51.05 -2.63%
Wynn Resorts Ltd. (WYNN) $229.01 -2.27%
Baidu Inc. (BIDU) $160.58 -2.14%
Expedia Inc. (EXPE) $75.29 -2.13%
Yahoo! Inc. (YHOO) $38.61 -2.13%
Micron Technology Inc. (MU) $23.98 -2.08%
Monster Beverage Corp (MNST) $69.62 -1.93%
Celgene Corp. (CELG) $150.84 -1.85% |
| | TF Financial - Advisory CFD broking with a difference! | | NO upfront fee for our signals and NO extra charges for our research.
You pay a standard 10bp per trade for our services with no strings and no salesman calling you. Just set up your account, receive our signals and decide for yourself.
To register for a free research report click here |
| | Newspaper Round Up | | Thursday newspaper round-up: Ukraine, Manufacturing, Welfare spending Preparations are underway by Ukraine to pull out its remaining military personnel in Crimea, effectively conceding defeat after Russia's move to annex the region. In parallel, President Barack Obama made clear in an NBC radio broadcast that he does not want to go to war over the region. Rather, he will look to mobilise all diplomatic resources so as to build a strong international coalition to deliver a clear "message". Russia, for its part, warned that the growing East-West divided could jeopardise multi-party talks over Iran, The Wall Street Journal Europe says.
The UK's manufacturing heartland was abuzz on Wednesday following news that Bentley, BMW and Alexander Dennis, all intend to step up output. In fact, Bentley's factory in Crewe will become the global centre for producing Volkswagen's high performance W12 engines, with output of the same due to be transferred from German parent VW's Salzgitter plant. For its part, BMW forecast sales of its vehicles will hit a record two million this year, according to The Times.
Bus builder Alexander Dennis has a five-year contract – understood to be the largest order ever placed by an operator with a single suppler - with National Express to supply 600 buses, some of which will enter service before the Commonwealth games begin on July 23rd. That follows other recent large contracts with its Scottish rivals FirstGroup and Stagecoach, which have a combined value of £170m. The extra work will support 2,000 jobs at the Falkirk-based firm, The Scotsman reports.
The Bank of England's assertion that it did not condone FX traders sharing information about client orders may be challenged by a Reuters report. The Financial Conduct Authority reportedly has the transcripts of a chat-room conversation between traders in which one alleged that Bank officials agreed that sharing such details was favourable in so far as it reduces volatility around the daily fixings, The Times says.
The lack of detail on how the cap on welfare spending announced in yesterday's Budget will actually be implemented renders it meaningless. Thus, Faiza Shaheen, a senior researcher at the New Economics Foundation think-tank, believes the cap is driven by ideology and not by a desire to tackle the underlying causes of welfare dependency. Jonathan Portes, director of the NIESR, was of a similar mind. In his opinion the welfare cap is simply an exercise in kicking the can down the road, or into the next parliament, The Guardian writes.
Japanese engineering giant Hitachi will transfer the headquarters for its lucrative rail business to London from Tokyo. That is seen as a move to help it clinch Westminster's controversial £50bn HS2 line. Its Chief Executive will also be a British national. The government has branded the decision "an incredible vote of confidence" in the UK, The Daily Mail says. | | |
New ADVFN Service - FREE Reports Get your free report on Isa's, Investment Trusts, Funds,
Sipps Travel and Cars - FREE and Easy service CLICK HERE
To advertise in the Euro Markets Bulletin please contact patrick@advfn.co.uk |
| | | | | | | To unsubscribe from this news bulletin or edit your mailing list settings click here. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +44 (0) 207 0700 961. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49 | |
No comments:
Post a Comment