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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: Ukraine, China fears weigh on stocks - Reports of increased Russian presence near Ukraine border
- Chinese manufacturing PMI falls
- Standard Life in talks with Phoenix over Ignis
- Kentz, Centamin rise after results
techMARK 2,779.91 -0.39%
FTSE 100 6,549.85 -0.11%
FTSE 250 16,173.87 +0.09%
UK stocks opened in the red on Monday as rising geopolitical tensions in Ukraine and yet more disappointing economic data from China dampened sentiment.
The FTSE 100 was trading 0.1% lower at 6,550 in early trading.
Nato has warned that Russian army units have built up their presence near Ukraine's border, and is reportedly concerned about the threat this poses to Moldova's Trans-Dniester region. Russia has insisted it is operating in compliance with the agreements made at the international level.
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.
Output in China's manufacturing sector continued to contract in March, according to published by HSBC/Markit on Monday. The flash China manufacturing purchasing managers' index hit an eight-month low at 48.1. Analysts had expected the reading to rise from February's 48.5 to settle at 48.7. Readings below 50 indicate a contraction in the sector.
"Weakness is broadly-based with domestic demand softening further," HSBC Chief Economist Honbin Qu said in the report. "We expect Beijing to launch a series of policy measures to stabilise growth. Likely options include lowering entry barriers for private investment, targeted spending on subways, air-cleaning and public housing, and guiding lending rates lower," he added.
Phoenix Group jumps on Standard Life talks
Financial services group Phoenix Group Holdings advanced after insurance giant Standard Life confirmed weekend media speculation that it is in talks to buy its Ignis Asset Management division. Reports suggest that Standard Life is considering offering £400m for Ignis.
Utility groups Centrica and SSE were lower this morning ahead of the results of an Ofgem investigation which could see the regulator recommend for a competition inquiry into the energy industry.
British American Tobacco was lower after Credit Suisse downgraded its rating on the stock from to 'neutral', while Lloyds was upgraded to 'buy' by Investec.
Engineering and construction group Kentz Corporation was a high riser after boosting its full-year dividend by 21% after double-digit growth in profits in 2013. The company also said that 2014 trading is "expected to exceed management's previous expectations".
Egypt-focused gold miner Centamin rose after delivering record operating profits in 2013 as an increase in production and falling costs managed to offset a steep drop in commodity prices.
Technical products and services provider Diploma fell after warning that full-year earnings will be affected by the stronger pound. |
| FTSE 100 - Risers
Lloyds Banking Group (LLOY) 78.55p +1.53%
Tesco (TSCO) 294.85p +1.36%
Sainsbury (J) (SBRY) 312.90p +1.10%
Royal Mail (RMG) 587.50p +1.03%
Sage Group (SGE) 428.10p +0.87%
Legal & General Group (LGEN) 207.40p +0.68%
Morrison (Wm) Supermarkets (MRW) 212.60p +0.66%
Standard Life (SL.) 368.30p +0.63%
Glencore Xstrata (GLEN) 305.50p +0.63%
Experian (EXPN) 1,069.00p +0.56%
FTSE 100 - Fallers
William Hill (WMH) 332.60p -1.92%
Mondi (MNDI) 1,018.00p -1.64%
ARM Holdings (ARM) 978.50p -1.61%
Smiths Group (SMIN) 1,304.00p -1.44%
Wolseley (WOS) 3,347.00p -1.33%
Barratt Developments (BDEV) 398.60p -1.19%
SSE (SSE) 1,493.00p -1.13%
Centrica (CNA) 334.30p -1.07%
Coca-Cola HBC AG (CDI) (CCH) 1,461.00p -1.02%
Severn Trent (SVT) 1,869.00p -1.01%
FTSE 250 - Risers
Computacenter (CCC) 686.50p +7.18%
Kentz Ltd. (KENZ) 778.00p +6.14%
Phoenix Group Holdings (DI) (PHNX) 718.50p +4.43%
Perform Group (PER) 248.00p +4.25%
Cranswick (CWK) 1,236.00p +3.69%
IP Group (IPO) 217.90p +3.27%
Centamin (DI) (CEY) 54.20p +3.24%
JD Sports Fashion (JD.) 1,629.00p +2.84%
Partnership Assurance Group (PA.) 125.50p +2.70%
Playtech (PTEC) 689.50p +2.53%
FTSE 250 - Fallers
Diploma (DPLM) 690.00p -9.21%
African Barrick Gold (ABG) 247.40p -2.10%
Essar Energy (ESSR) 68.70p -2.07%
Fenner (FENR) 387.40p -1.92%
Investec (INVP) 464.00p -1.49%
BTG (BTG) 566.50p -1.48%
Keller Group (KLR) 1,023.00p -1.45%
Pace (PIC) 451.60p -1.40%
Cairn Energy (CNE) 156.40p -1.39% |
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| | UK Event Calendar | | Monday March 24
INTERIMS
Allergy Therapeutics, Finsbury Food Group
INTERIM DIVIDEND PAYMENT DATE
Heath (Samuel) & Sons
QUARTERLY EX-DIVIDEND DATE
Total SA
FINALS
Centamin (DI), Frenkel Topping Group, Greencoat UK Wind, John Laing Infrastructure Fund Ltd, Kentz Ltd., Miton Group, OJSC Magnit GDR (Reg S), Plant Health Care, SpaceandPeople
ANNUAL REPORT
Afarak Group (DI), British American Tobacco, Fidessa Group, Nichols
EGMS
JSC Uralkali GDR (Reg S)
AGMS
Hume Capital Securities, Temple Bar Inv Trust
|
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Capital at risk. Tax benefits of ISAs may change. |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Weak factory PMIs drag stocks lower - Eurozone manufacturing and services PMI drop
- China manufacturing activity falls
- Crimea turmoil escalates
FTSE 100: -0.30%
DAX: -0.38%
CAC 40: -0.53%
FTSE MIB: -0.21%
IBEX 35: -0.48%
Stoxx 600: -0.47%
European stocks dipped after preliminary reports for Eurozone manufacturing and services activity in March registered declines.
The Eurozone's purchasing managers' index (PMI) for manufacturing this month came in at 52.4, a two-month low. It compared to February's reading of 53.2 and market expectations of 53. A level above 50 signals expansion.
Services PMI in the Eurozone fell to a three-month low of 53 in March from 53.3 a month earlier, in line with expectations.
In China, a preliminary report on PMI manufacturing in March dropped 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.
"Today's weak PMI reading is the latest sign that slowing credit and investment growth are weighing on domestic demand," said Capital Economics.
"That said, with no sign of stress in the labour market, the slowdown does not yet appear to warrant a significant stimulus response."
Crimea
Tensions in Crimea have threatened to hurt German trade in Russia as the European Union (EU) accelerated sanctions.
Volkswagen AG, Siemens AG, and HeidelbergCement AG are among the foreign investors in Russia, which has signed a treaty annexing Crimea from Ukraine.
Last Friday the EU increased the number of visa bans and asset freezes to 51 individuals in response to Crimea re-joining Russia.
This morning the crisis escalated as Russian troops used stun grenades to force their way into a Ukrainian marine base in Crimea, Ukrainian officials said.
German Chancellor Angela Merkel's coordinator for relations with Russia told Bloomberg News last week that harsh sanctions would be counterproductive and unlikely to persuade Russian President Vladimir Putin to change his mind.
Utilities slide
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'.
Czech utility CEZ AS advanced after the nation's finance minister said the government is seeking a 100% dividend payout.
Nokia Oyj dropped after saying the sale of its mobile phone division to Microsoft Corp. will be delayed by a month until April as Asian regulators review the deal.
The euro rose 0.04% to $1.3799.
Brent crude futures fell $0.310 to $106.590 per barrel, according to the ICE. |
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| | US Market Report | | US close: Stocks erase early gains after S&P 500 intraday record - S&P 500 erases gains after intraday record
- 'Quadruple witching day' sparks volatility
- Fitch ups outlook on US debt
- Bullard defends Yellen comments
Dow Jones: -0.17%
Nasdaq: -0.98%
S&P 500: -0.29%
Despite a strong start, US stocks finished in the red on Friday with the S&P 500 quickly erasing losses after hitting a new intraday record.
On a day absent of any major economic data, investors continued to pore over hawkish comments this week from Federal Reserve Chair Janet Yellen as well as ongoing developments in the Ukraine crisis. Vladimir Putin officially signed legislation to annex the Black Sea peninsula of Crimea on Friday.
Sentiment was initially boosted after the opening bell by Fitch Ratings which raised its outlook on the US credit rating to 'stable' from 'negative'. The move followed the suspension by Congress of the nation's debt limit for more than a year, which reduces the risk of a default.
However, analysts pointed out that the market volatility seen towards the end of day could have been partly due to the so-called 'quadruple witching day' when future and options contracts on indices and individual stocks expire.
The S&P 500 rose to an all-time high of 1,883.97 in early trading but ended the session down 0.3% at 1,866.52. The Dow Jones Industrial Average, meanwhile, finished 0.2% lower at 16,302.77. Still, the indices gained 1.4% and 1.5% over the whole week, respectively.
The Nasdaq's weekly gain was limited to just 0.7% after a 1% fall on Friday to 4,276.79, as falling biotech stocks dampened the index.
Speeches from Fed members James Bullard, Richard Fisher, Narayana Kocherlakota and Jeremy Stein were in focus in afternoon trade, after Yellen said Wednesday that the central bank could raise interest rates "around six months" after it ends quantitative easing (QE).
With QE set to end this autumn – provided the Fed continues to taper at the same pace – the first rate hike could come as early as the second quarter of next year; analysts had expected rates to rise towards the end of 2015.
Bullard defended Yellen's statement, saying that her outlook is in line with surveys on when tightening will begin. He said: "The surveys that I had seen from the private sector had that kind of number penciled in as far as I knew."
Nike, Unwired Planet
Nike dropped after the sporting goods firm projected sales in the quarter through May that fell short of market expectations.
Unwired Planet saw its shares rocket after Chinese PC manufacturer Lenovo said it would buy a patent portfolio and license certain patents for $100m.
Genco Shipping & Trading Ltd gained after saying it is still in talks about a potential debt restructuring.
Customer review site Yelp advanced after partnering with advertising platform YP to improve business listings.
Jewellery retailer Tiffany & Co edged lower after reporting quarterly earnings that missed analysts' estimates.
Symantec Corp declined after the maker of security software fired its Chief Executive Officer Steve Bennett.
S&P 500 - Risers
Newfield Exploration Co (NFX) $30.08 +5.99%
Cliffs Natural Resources Inc. (CLF) $19.69 +5.69%
Freeport-McMoRan Copper & Gold Inc. (FCX) $32.31 +4.56%
Best Buy Co. Inc. (BBY) $26.96 +4.33%
First Solar Inc. (FSLR) $73.37 +4.10%
Exelon Corp. (EXC) $32.54 +3.73%
Diamond Offshore Drilling Inc. (DO) $47.24 +3.57%
Edison International (EIX) $53.87 +3.56%
United States Steel Corp. (X) $27.08 +3.52%
FirstEnergy Corp. (FE) $32.85 +3.17%
S&P 500 - Fallers
Symantec Corp. (SYMC) $18.20 -12.94%
Biogen Idec Inc. (BIIB) $316.96 -8.69%
Alexion Pharmaceuticals Inc. (ALXN) $158.94 -8.48%
Regeneron Pharmaceuticals Inc. (REGN) $310.79 -5.45%
Zions Bancorporation (ZION) $31.24 -5.30%
Nike Inc. (NKE) $75.21 -5.12%
Vertex Pharmaceuticals Inc. (VRTX) $73.85 -5.04%
Gilead Sciences Inc. (GILD) $72.07 -4.57%
Netflix Inc. (NFLX) $405.99 -4.31%
Allergan Inc. (AGN) $125.05 -3.81%
Dow Jones I.A - Risers
Johnson & Johnson (JNJ) $95.93 +1.92%
Wal-Mart Stores Inc. (WMT) $76.48 +1.46%
Caterpillar Inc. (CAT) $97.39 +1.23%
Pfizer Inc. (PFE) $32.18 +0.85%
United Technologies Corp. (UTX) $114.57 +0.70%
Visa Inc. (V) $223.37 +0.70%
Travelers Company Inc. (TRV) $83.78 +0.66%
AT&T Inc. (T) $34.30 +0.62%
E.I. du Pont de Nemours and Co. (DD) $66.98 +0.60%
3M Co. (MMM) $133.12 +0.52%
Dow Jones I.A - Fallers
Nike Inc. (NKE) $75.21 -5.12%
Merck & Co. Inc. (MRK) $54.66 -1.67%
Goldman Sachs Group Inc. (GS) $166.95 -1.34%
McDonald's Corp. (MCD) $95.47 -1.17%
Intel Corp. (INTC) $25.17 -1.00%
Boeing Co. (BA) $122.58 -0.93%
Cisco Systems Inc. (CSCO) $21.64 -0.87%
International Machines Corp. (IBM) $186.67 -0.65%
Verizon Communications Inc. (VZ) $46.91 -0.64%
Walt Disney Co. (DIS) $80.35 -0.57%
Nasdaq 100 - Risers
NetApp Inc. (NTAP) $37.80 +1.90%
O'Reilly Automotive Inc. (ORLY) $148.90 +1.49%
Whole Foods Market Inc. (WFM) $55.04 +1.40%
Staples Inc. (SPLS) $11.45 +1.24%
Discovery Communications Inc. Class A (DISCA) $84.52 +0.99%
Garmin Ltd. (GRMN) $55.10 +0.84%
Catamaran Corp (CTRX) $46.29 +0.83%
CH Robinson Worldwide Inc (CHRW) $51.03 +0.79%
Apple Inc. (AAPL) $532.87 +0.79%
Seagate Technology Plc (STX) $53.49 +0.73%
Nasdaq 100 - Fallers
Symantec Corp. (SYMC) $18.20 -12.94%
Biogen Idec Inc. (BIIB) $316.96 -8.69%
Alexion Pharmaceuticals Inc. (ALXN) $158.94 -8.48%
Regeneron Pharmaceuticals Inc. (REGN) $310.79 -5.45%
Illumina Inc. (ILMN) $152.60 -5.42%
Vertex Pharmaceuticals Inc. (VRTX) $73.85 -5.04%
Gilead Sciences Inc. (GILD) $72.07 -4.57%
Netflix Inc. (NFLX) $405.99 -4.31%
Celgene Corp. (CELG) $144.40 -3.74%
CA Inc. (CA) $31.11 -3.53% |
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| | Newspaper Round Up | | Monday newspaper round-up: Asda, Ukraine, Bank levy Asda will today brief senior management on the results of the review carried out on behalf of the company by consultants McKinsey to equip it for the changing retail landscape. The details of the recommendations, which some have described as a new five-year plan, have not been made public yet. However, they are thought to include "scores" of redundancies amongst its top ranks at its central and head office functions. As well, a step-up in the grocer´s multichannel offering and wider product ranges are thought to be in the pipeline, according to The Times.
Nato and the White House fear that Moscow might be planning a wider invasion of Ukraine. That comes as overnight Russian forces stormed a base in Feodosia, the third such attack over the last 48 hours. A Ukrainian military spokesman in Crimea said that the Russian units involved had used a mix of helicopters, armoured personnel carriers and stun grenades, with shots having been fired, The Times reports.
Britain´s largest lenders are set to obtain hundreds of millions of pounds worth in reductions in their tax bill after complaining that the bank levy had a disproportionate effect on domestic lenders. The Treasury is planning to change towards a band-based system whereby caps are placed on the taxes faced by individual banks. Barclays and HSBC alone may see their levy charges cut by a total of over £300m, The Daily Telegraph writes.
RSA, the UK´s largest commercial insurer, will this week publish the prospectus for its much awaited rights issue, in effect pulling the trigger on the operation. The fund raising excercise is expected to yield £775m in fresh capital. The exact terms of the offer were still up in the air as bankers at Bank of America Merrill Lynch and JP Morgan Cazenove met over the weekend to finalise them. In a bid to ensure firm support from investors the offering is expected to be deeply discounted, perhaps by as much as 40% to 50%, The Times says.
The reverberations from last week´s Budget continue to filter through even a week after the event. In a move that mirrors current arrangements by Google, Yahoo has shifted its tax base to Ireland. That may cost governments across Europe millions in lost taxes. The Chancellor unveiled a clamp down on corporate tax avoidance, amongst which are measures including forcing online music retailers to pay full VAT in the UK. The threat of a 'sales tax' on internet firms such as Google and Yahoo was also to be found in the Budget, The Daily Mail says.
Troubled Co-op Bank needs a further injection of £400m after unearthing additional costs related to previous episodes of financial misconduct. Last year the lender already raised £1.1bn in fresh equity to butress its balance sheet. The full negative impact on its 2013 numbers is expected to amount to between £1.2bn and £1.3bn. As a result its capital position is expected to fall towards only 7.2% from about 9% at present, The Daily Telegraph says. | | |
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