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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: Mining stocks provide a lift early on - Miners recover after recent slump
- Obama imposes more sanctions on Russia
- Markets await speeches from Fed officials
techMARK 2,803.23 +0.11%
FTSE 100 6,565.89 +0.36%
FTSE 250 16,219.13 +0.01%
UK equities opened slightly higher on Friday as decent gains in the mining sector lifted the resource-heavy FTSE 100.
London's benchmark index was trading 0.4% higher at 6,566 in early trading.
Nevertheless, the mood was cautious amid developments in the Ukraine crisis as EU and US leaders impose more sanctions on Russian officials after this week's annexation of Crimea.
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".
Markets were also awaiting speeches from four members of the US Federal Reserve following Janet Yellen's revelation on Wednesday that interest rates may rise sooner than expected.
Alongside the Fed's decision this week to taper asset purchases by $10bn a month again, Yellen signalled that the first rate hike could come "around six months" after quantitative easing ends.
Fed officials James Bullard, Richard Fisher, Narayana Kocherlakota and Jeremy Stein are all due to talk later on this evening.
Miners rise, financials mixed
Mining stocks were performing well this morning as bargain hunters stepped in following a recent slump in the sector. At Thursday's close, the FTSE 350 mining sector had lost over 11% over the last four weeks.
Anglo American, Fresnillo, Glencore Xstrata, Rio Tinto, Antofagasta and BHP Billiton were among the best performers early on.
Financial stocks were putting in a mixed performance with insurers still in focus following this week's shake-up of the UK annuities market announced as part of the 2014 Budget. Legal & General and Prudential were both trading lower early on.
Global banking groups HSBC and Standard Chartered were higher, while domestic lenders RBS, Lloyds and Barclays were lower. RBS was hit with a downgrade by Barclays Capital to 'equal weight' this morning.
Pharmaceuticals firm Hikma was also trading in the red this morning after Jefferies lowered the stock to 'hold'. |
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| FTSE 100 - Risers
Resolution Ltd. (RSL) 325.90p +2.45%
Anglo American (AAL) 1,444.00p +2.30%
Meggitt (MGGT) 477.60p +1.73%
Rio Tinto (RIO) 3,210.00p +1.68%
HSBC Holdings (HSBA) 603.40p +1.55%
Intertek Group (ITRK) 2,980.00p +1.40%
Standard Chartered (STAN) 1,201.00p +1.39%
Glencore Xstrata (GLEN) 305.35p +1.33%
easyJet (EZJ) 1,628.00p +1.24%
Tate & Lyle (TATE) 651.50p +1.24%
FTSE 100 - Fallers
Aberdeen Asset Management (ADN) 367.40p -1.76%
Burberry Group (BRBY) 1,396.00p -1.69%
Whitbread (WTB) 4,172.00p -1.14%
William Hill (WMH) 343.00p -1.04%
Sainsbury (J) (SBRY) 304.00p -0.94%
Royal Bank of Scotland Group (RBS) 302.80p -0.82%
Sports Direct International (SPD) 839.50p -0.77%
Persimmon (PSN) 1,342.00p -0.74%
Barclays (BARC) 237.10p -0.65%
Lloyds Banking Group (LLOY) 78.26p -0.62%
FTSE 250 - Risers
Partnership Assurance Group (PA.) 128.50p +3.63%
Interserve (IRV) 685.50p +3.01%
RPS Group (RPS) 332.90p +2.75%
Essar Energy (ESSR) 67.35p +2.05%
Spectris (SXS) 2,296.00p +2.00%
Investec (INVP) 456.10p +1.90%
Imagination Technologies Group (IMG) 190.10p +1.66%
Vedanta Resources (VED) 845.00p +1.62%
Polymetal International (POLY) 623.00p +1.47%
Hays (HAS) 141.80p +1.43%
FTSE 250 - Fallers
Crest Nicholson Holdings (CRST) 384.00p -4.00%
Hikma Pharmaceuticals (HIK) 1,618.00p -3.17%
Ladbrokes (LAD) 131.00p -2.31%
PZ Cussons (PZC) 339.40p -2.30%
Kazakhmys (KAZ) 244.70p -2.24%
Kenmare Resources (KMR) 14.39p -2.04%
Home Retail Group (HOME) 212.00p -1.99%
Diploma (DPLM) 762.00p -1.68%
Dunelm Group (DNLM) 935.50p -1.53% |
| | UK Event Calendar | | Friday March 21
INTERIMS
CVS Group
INTERIM DIVIDEND PAYMENT DATE
British Smaller Companies VCT, Harbourvest Senior Loans Europe Ltd., Hargreaves Services, Mobeus Income & Growth 2 Vct, Rank Group, SSE
QUARTERLY PAYMENT DATE
Real Estate Credit Investments PCC Ltd, Utilico Investments Ltd (DI)
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (EU) (09:00)
Consumer Confidence Indicator (EU) (10:00)
Current Account (EU) (09:00)
Speech President St.Louis Fed (15:45)
Speech President Dallas Fed (17:45)
Speech President Minneapolis Fed (20:30)
Speech Fed Governor Stein (22:30)
FINALS
BrainJuicer Group
ANNUAL REPORT
Cobham, STV Group
SPECIAL DIVIDEND PAYMENT DATE
easyJet
AGMS
KT Corp. ADR, SK Telecom Co Ltd. ADS, St. Modwen Properties
UK ECONOMIC ANNOUNCEMENTS
Public Sector Finances (09:30)
FINAL DIVIDEND PAYMENT DATE
Avon Rubber, easyJet, LPA Group |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise before Eurozone consumer confidence data - Eurozone consumer confidence report out
- EU remains divided on Russia sanctions
- Fitch cuts outlook on Russia
- US Fed policymakers to speak
FTSE 100: 0.19%
DAX: 0.27%
CAC 40: 0.24%
FTSE MIB: 0.22%
IBEX 35: 0.19%
Stoxx 600: 0.17%
European stocks gained ahead of the release of a report which may show Eurozone consumer confidence will have improved this month.
The sentiment index for consumer confidence in March is expected to rise to -12.3 in March from -12.7 previously.
It will be an otherwise quiet day of economic data releases with attention turning to the situation in Crimea.
US President Obama announced the extension of visa bans and asset freezes in Moscow after Russian President Vladimir Putin signed a treaty on Tuesday annexing Crimea from Ukraine to join Russia.
European Union (EU) leaders met in Brussels yesterday to consider further sanctions against Russia. However, they remain divided over the most appropriate action to tackle the crisis.
"One thing that may be a concern to traders is suggestions by Ukraine's ambassador to the United Nations that there are indications that Russia is preparing a military intervention in south and east Ukraine," said Alpari analyst, Craig Erlam.
Fitch Ratings yesterday decided to cut the outlook on Russia's credit rating to 'negative' from 'stable' due to the possible impact of economic sanctions.
For the moment, Fitch maintains the 'BBB' rating but warned that the downgrade in the outlook "reflects the potential impact of sanctions on Russia's economy and business environment". The credit rating agency believes that the incorporation of Crimea into the Russian Federation will likely lead to more sanctions from the US and the EU.
US Fed officials to speak
Four US Federal Reserve officials will speak on Friday, two days after the central bank announced its latest policy decision.
James Bullard, Richard Fisher, Narayana Kocherlakota and Jeremy Stein will talk separately in the afternoon, potentially shedding further light behind the Fed's decision to cut asset purchases by $10bn a month to $55bn.
At her first press conference since taking over as Chair in February, Janet Yellen indicated that the central bank could raise interest rates in about six months after it ends quantitative easing. Ahead of this week's meeting, analysts had widely expected a rate hike to come towards the end of 2015.
Investors will be watching comments from Fed policymakers today to see if they have anything to say about the potential increase in interest rates.
Commerzbank, Meggitt
Commerzbank gained after Morgan Stanley raised its rating on the German lender to 'overweight' from 'equal weight'.
Meggitt edged higher as UBS upgraded its rating on the aerospace and defence engineering company to 'buy' from 'neutral'.
Crest Nicolson slumped following news Deutsche Bank, its largest publicly disclosed shareholder, is selling as many as 16.5m shares in the housebuilder.
Ericsson dropped as UBS offered 20.6m class B shares in the maker of network equipment on behalf of an undisclosed institutional shareholder, according to terms obtained by Bloomberg.
The euro rose 0.4% to $1.3784.
Brent crude futures increased $0.169 to $106.630 per barrel, according to the ICE. |
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| | US Market Report | | US close: Upbeat data helps stocks recover post-Yellen - Jobless claims, Philly Fed, Leading Indicators beat forecasts
- Existing home sales fall 0.4 per cent, as expected
- Obama extends sanctions in Russia
- Microsoft gains on iPad Office hopes
Dow Jones: 0.67%
Nasdaq: 0.27%
S&P 500: 0.60%
US markets finished with moderate gains on Thursday, rebounding after the Janet Yellen-inspired sell-off the previous session, as better-than-expected jobless claims and readings of regional manufacturing gave stocks a boost.
Michael Hewson, Chief Market Analyst at CMC Markets, said that the upbeat economic data raised expectations that "with the onset of spring the US economy will slip out of low gear and shift up a notch".
The Dow Jones Industrial Average finished 0.7% higher at 16,331, the Nasdaq rose 0.4% to 4,319, while the S&P 500 gained 0.6% to 1,872.
Markets had dropped sharply the previous session after Yellen signalled at a press conference that interest rates could rise sooner than expected following the Fed's decision to taper asset purchases by $10bn a month. She said that the first rate hike could come "around six months" after quantitative easing (QE) ends.
If the central bank continues to taper at the same rate, 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.
Despite the small bounce on Wall Street on Thursday, investors were still focusing on the Ukraine crisis as President Barack Obama extended financial sanctions in Russia to deter its military from moving into the neighbouring country following the annexation of Crimea.
Sanctions have been imposed on more officials, including wealthy supporters of Vladimir Putin and a bank close to the Kremlin.
Economic data beats forecasts
Jobless claims rose by 5,000 to 320,000 in the week ended March 15th but came in below the consensus forecast of 322,000.
The Philadelphia Fed regional manufacturing index surged from -6.3 in February to 9.0 this month, well ahead of the 3.2 consensus forecast.
The Leading Indicators Index, a composite index of 10 economic indicators, increased by 0.5% in February, up from 0.3% previously and above the 0.2% rise expected.
Meanwhile, existing-home sales fell by 0.4% to 4.6m in February, as expected by analysts, easing from the 5.1% drop the previous month.
Microsoft jumps on Morgan Stanley comments
Software group Microsoft rose around 3% after to reach $40.33, its highest level since 2000, after Morgan Stanley analysts speculated that its Office suite of software for Apple's iPad devices could generated $1.2bn per annum in billings.
Homebuilder Lennar fell despite beating expectations with its first-quarter results. Chief Executive Stuart Miller said he is "optimistic that the housing market is continuing to recover, and that the fundamental drivers of that recovery remain intact".
Coal producer Walter Energy fell sharply after announcing a refinancing. Standard & Poor's kept a 'negative outlook' on the company's credit rating, reflecting its prediction that "operating results and credit measures will be weak for at least the next 12 months because of continued difficult coal market conditions that have pressured metallurgical (met) coal prices".
Fashion retailer Guess was also a heavy faller after its guidance for the first quarter and full year failed to meet analysts' forecasts.
S&P 500 - Risers
Teradata Corp. (TDC) $48.20 +4.58%
Invesco Ltd. (IVZ) $36.25 +3.81%
Noble Corporation plc (NE) $31.07 +3.77%
Applied Materials Inc. (AMAT) $20.19 +3.70%
Lam Research Corp. (LRCX) $56.43 +3.56%
Alliance Systems Corp. (ADS) $294.27 +3.47%
AT&T Inc. (T) $34.09 +3.43%
Zions Bancorporation (ZION) $32.99 +3.19%
Analog Devices Inc. (ADI) $53.22 +3.15%
Texas Instruments Inc (TXN) $46.95 +3.14%
S&P 500 - Fallers
Masco Corp. (MAS) $22.25 -3.60%
Jabil Circuit Inc. (JBL) $17.74 -2.85%
D. R. Horton Inc. (DHI) $21.87 -2.76%
Lennar Corp. Class A (LEN) $40.32 -2.47%
Occidental Petroleum Corp. (OXY) $92.93 -2.32%
International Game Technology (IGT) $14.81 -2.18%
Yahoo! Inc. (YHOO) $37.77 -2.18%
Cliffs Natural Resources Inc. (CLF) $18.63 -2.00%
Williams Companies Inc. (WMB) $40.86 -1.87%
Facebook Inc. (FB) $66.97 -1.86%
Dow Jones I.A - Risers
AT&T Inc. (T) $34.09 +3.43%
JP Morgan Chase & Co. (JPM) $60.11 +3.10%
Microsoft Corp. (MSFT) $40.33 +2.70%
Unitedhealth Group Inc. (UNH) $81.53 +1.96%
Verizon Communications Inc. (VZ) $47.21 +1.83%
International Machines Corp. (IBM) $187.90 +1.73%
Intel Corp. (INTC) $25.42 +1.62%
Wal-Mart Stores Inc. (WMT) $75.38 +1.34%
Boeing Co. (BA) $123.73 +1.22%
American Express Co. (AXP) $91.69 +1.06%
Dow Jones I.A - Fallers
Visa Inc. (V) $221.82 -0.89%
Merck & Co. Inc. (MRK) $55.59 -0.71%
Procter & Gamble Co. (PG) $78.32 -0.58%
United Technologies Corp. (UTX) $113.77 -0.21%
General Electric Co. (GE) $25.27 -0.04%
Nasdaq 100 - Risers
Applied Materials Inc. (AMAT) $20.19 +3.70%
Analog Devices Inc. (ADI) $53.22 +3.15%
Texas Instruments Inc (TXN) $46.95 +3.14%
Akamai Technologies Inc. (AKAM) $61.96 +3.03%
Altera Corp. (ALTR) $37.04 +2.92%
Xilinx Inc. (XLNX) $55.06 +2.77%
Seagate Technology Plc (STX) $53.10 +2.77%
Microsoft Corp. (MSFT) $40.33 +2.70%
Western Digital Corp. (WDC) $87.99 +2.47%
Sandisk Corp. (SNDK) $80.72 +2.45%
Nasdaq 100 - Fallers
Yahoo! Inc. (YHOO) $37.77 -2.18%
Baidu Inc. (BIDU) $157.48 -1.93%
Facebook Inc. (FB) $66.97 -1.86%
Gilead Sciences Inc. (GILD) $75.53 -1.33%
Mylan Inc. (MYL) $52.61 -1.29%
Alexion Pharmaceuticals Inc. (ALXN) $173.66 -1.28%
Amazon.Com Inc. (AMZN) $368.97 -1.13%
Sirius XM Holdings Inc (SIRI) $3.36 -1.03%
Vimpelcom Ltd Ads (VIP) $8.97 -0.99%
Liberty Media - Class A (LMCA) $136.73 -0.93% |
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| | Newspaper Round Up | | Friday newspaper round-up: Output gap, Pensions reform, Sanctions The fact that the OBR cut its estimate of the output gap means that more of the growth which was lost during the recession will never be recovered. That was the message delivered by ratings agency Fitch, who said there is little prospect of Britain recovering its coveted top-notch rating before 2018. Meanwhile, insiders at the Treasury believe Fitch is implicitly backing the government so that it gets the debt down and on to a steady footing. Likewise, IHS Global Insight believes the Budget may have forestalled the UK losing its lone remaining triple-AAA rating from Standard and Poor's, The Times reports.
Workers have given their resounding approval to the Chancellor's dramatic pensions reform at the last Budget. The changes have found the backing of 66% of those individuals canvassed by YouGov, according to a poll published in The Sun.
The US has upped the ante in its diplomatic response to Russia's annexation of Crimea via a new round of sanctions aimed at the country's President, Vladimir Putin, and some of his wealthiest and most influential supporters – members of his inner circle. Also targeted is a high-profile lender. This raises the possibility that retaliations could spiral as Moscow has struck back itself, The Wall Street Journal Europe reports.
Airbnb, the website which offers homes for rent, is preparing a stock market flotation that may see it attain a valuation of $10bn, well ahead of some its established traditional hotel peers. Private equity firm TPG will likely head the transaction, which is expected to raise between $400m and $500m, The Times says, citing a report in The Wall Street Journal. By the end of the funding round in 2012 the company had obtained approximately $200m. It was then valued at around $2.5bn.
A 30-year veteran bond trader at Credit Suisse, Mark Stevenson, has received a fine of £662,700 from the Financial Conduct Authority and has been banned from the industry. That comes after an investigation found that he tried to artificially increase the mid-market price for a given series of Gilts ahead of a reverse auction from the Bank of England. His aim was to make his offers to the central bank look superficially attractive when compared to the mid-market price, The Daily Telegraph writes.
After cashing in on bonus share awards the Scots-born Chief Executive at broadcaster ITV, Adam Crozier, is to receive a pay packet which at £8m triples last year's in size. That will come alongside a basic salary of £841,000, which saw an increased on the £818,000 given to him in 2012. The former boss of Royal Mail received over £2m from ITV's performance share plan and an award of approximately another £4m for joining the outfit in 2010, The Scotsman reports. | | |
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