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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 bounce but Ukraine crisis still in focus - Markets recover after sell-off
- Putin orders troops back to bases
- Ashtead, Glencore Xstrata impress with results
- Fresnillo disappoints as profits slump
techMARK 2,891.69 +1.38%
FTSE 100 6,775.50 +1.00%
FTSE 250 16,559.83 +1.13%
UK stocks bounced strongly on Tuesday morning as sentiment recovered after tensions between Ukraine and Russia dragged markets to a two-week low.
"With no new headlines breaking on the geopolitical situation, it looks like investors are taking this opportunity to claw back the sleep losses of yesterday's session," said Financial Sales Trader Sam Fox from Spreadex.
London's FTSE 100 benchmark index was trading 1% higher at 6,775.5 in morning trade. The Footsie fell 1.5% to 6,708.35 on Monday, finishing at its lowest closing price since February 14th.
Russian President Vladimir Putin this morning ordered forces "involved in military exercises" to return to their bases, following the backlash from international leaders after Russia's increased military presence near the border of Ukraine.
However, Russia continues to have around 16,000 troops still deployed in the Crimea region in the aftermath of deadly protests last month and the ousting of pro-Russian Ukrainian President Viktor Yanukovych, who has since fled to Russia.
The intervention had been condemned by the G7 who labelled it as a "violation of Ukraine's sovereignty", prompting calls for potential trade sanctions and visa restrictions against Russia in retaliation.
Ashtead, Glencore Xstrata provide a lift
Equipment rental business Ashtead surged after reporting a bumper set of third-quarter earnings, driven by a strong performance from its two main divisions. The group now expects full-year results to come in ahead of previous expectations.
Mining group and trading house Glencore Xstrata also rose after beating forecasts comfortably with its 2013 results. Adjusted operating profits were more or less flat at $13.1bn but well ahead of the $12.3bn expected by analysts.
Leading the downside was precious metal producer Fresnillo which slumped after it reported a 64% drop in 2013 profits, reflecting a decline in gold production and a fall in precious metal prices.
The stock, along with sector peer Randgold, was also pulling back after a strong performance on Monday as a reduction in risk appetite pushed investors towards safe-haven assets such as gold and silver.
Markets were largely shrugging off a statement from Randgold chief Mark Bristow who said the opportunities for gold mining in Africa more than outweigh the challenges currently facing the industry.
Oil major BP was subdued after a US court rejected calls to prevent certain compensation payments related the Deepwater Horizon oil spill. BP released a statement yesterday saying it disagrees with the decision.
Postal group Royal Mail was lower after Credit Suisse initiated coverage of the stock with an 'underperform' rating, saying that the valuation is "stretched" after recent share-price strength. |
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| FTSE 100 - Risers
Ashtead Group (AHT) 910.00p +7.56%
Rexam (REX) 500.50p +2.69%
Meggitt (MGGT) 508.00p +2.65%
Shire Plc (SHP) 3,380.00p +2.52%
Coca-Cola HBC AG (CDI) (CCH) 1,476.00p +2.36%
Glencore Xstrata (GLEN) 333.85p +2.33%
Schroders (SDR) 2,645.00p +2.16%
Intertek Group (ITRK) 3,031.00p +2.05%
Smiths Group (SMIN) 1,370.00p +2.01%
Prudential (PRU) 1,367.00p +2.01%
FTSE 100 - Fallers
Fresnillo (FRES) 892.50p -7.99%
Randgold Resources Ltd. (RRS) 4,902.00p -1.03%
Royal Mail (RMG) 591.00p -0.51%
BP (BP.) 491.00p -0.39%
Mondi (MNDI) 1,073.00p -0.09%
FTSE 250 - Risers
Perform Group (PER) 250.00p +7.53%
IP Group (IPO) 220.00p +6.74%
CSR (CSR) 799.50p +6.67%
Bank of Georgia Holdings (BGEO) 2,180.00p +6.34%
Pace (PIC) 427.30p +5.87%
Evraz (EVR) 64.70p +5.81%
Moneysupermarket.com Group (MONY) 189.10p +5.06%
Alent (ALNT) 320.90p +5.01%
Redrow (RDW) 332.20p +3.52%
PayPoint (PAY) 1,154.00p +3.50%
FTSE 250 - Fallers
Devro (DVO) 282.00p -7.54%
African Barrick Gold (ABG) 288.20p -2.40%
Regus (RGU) 225.30p -2.09%
Tullett Prebon (TLPR) 325.00p -0.76%
F&C Commercial Property Trust Ltd. (FCPT) 118.80p -0.75%
Daejan Holdings (DJAN) 4,980.00p -0.70%
ITE Group (ITE) 243.20p -0.65%
Grafton Group Units (GFTU) 661.50p -0.53%
NMC Health (NMC) 476.00p -0.52% |
| | UK Event Calendar | | Tuesday March 04
INTERIMS
Abcam, ISG
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Producer Price Index (EU) (10:00)
ZEW Survey (GER) (10:00)
Q3
Ashtead Group
FINALS
Alent, Arrow Global Group, Breedon Aggregates Ltd., CLS Holdings, Damac Real Estate Development Limited GDR (Each Repr 3 Ord) (Reg S) , Devro, Fresnillo, Glencore Xstrata, Hydro International, Jardine Lloyd Thompson Group, Meggitt, Moneysupermarket.com Group, Ooredoo Q.S.C. GDR (Reg S), Pace, Paddy Power, Perform Group, Regus, Rotork, Serco Group, Tarsus Group, Total Produce, Tullett Prebon, Vesuvius
IMSS
City of London Investment Group
AGMS
CareTech Holding, Commercial International Bank (Egypt) SAE GDR (Reg S), CQS Diversified Fund Ltd Ord NPV £, Octopus Eclipse VCT 1
UK ECONOMIC ANNOUNCEMENTS
PMI Construction (09:30)
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise as Russian troops return to base - Putin orders Russian troops back to base
- UK construction PMI to be released
FTSE 100: 1.00%
DAX: 0.77%
CAC 40: 1.20%
FTSE MIB: 1.31%
IBEX 35: 1.01%
Stoxx 600: 1.01%
European stocks gained as Russian President Vladimir Putin ordered troops involved in a military exercise back to base today.
Global stocks tumbled yesterday on news Putin had received parliamentary approval to send military forces in to invade Ukraine.
Moscow's United Nations envoy, Vitaly Churkin, has claimed ousted Ukrainian President Viktor Yanukovych asked Russia to send military forces across the border to protect civilians.
Russian-backed Yanukovych was overthrown last month following violent protests that left dozens dead.
Putin is dismayed that the new government in Ukraine has moved its course towards the European Union and away from its alliance with Russia.
The focus today is likely to remain squarely on movements in the Ukraine as it will be an otherwise quiet day of economic releases.
A UK construction purchasing managers' index report will be released at 09:30 GMT and is expected to show a fall to 63.2 in February from 64.6 the previous month. A reading above 50 signals expansion.
GAM, Ashtead
GAM Holding gained as the Swiss money manager lifted its dividend after annual profit rose.
Ashtead Group advanced after saying full-year profit will exceed the company's previous projections.
RWE AG edged higher after the German utility reaffirmed its forecast for net income in 2014.
Fresnillo declined after the miner reported a drop in annual profit due to weaker precious metal prices and lower gold production.
The euro rose 0.15% to $1.3756.
Brent crude futures fell $1.247 to $109.830 per barrel, according to data from the ICE. |
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| | US Market Report | | US close: Ukraine tensions hit stocks as markets shrug off upbeat data - S&P 500 pulls back from record high
- Tensions between Russia and Ukraine escalate
- West condemns Russian intervention
- US economic data comes in ahead of forecasts
Dow Jones: -0.94%
Nasdaq: -0.72%
S&P 500: -0.72%
US markets registered their sharpest falls in a month on Monday after Russia increased its military presence in Ukraine, prompting equity investors worldwide to shy away from risk.
Traders were largely shrugging off US economic data that came in better than expected, with stocks in the industrial and financial sectors among the worst performers, along with other companies who have exposure to the fraught geopolitical situation overseas.
"Although markets had been monitoring the escalating tensions in Ukraine, the swift action taken by Vladimir Putin this weekend have caught many people by surprise," said Alastair McCaig, Market Analysts at IG.
The S&P 500 finished 0.7% by the closing bell, pulling back from the record high of 1,859.53 reached on Friday; this was its worst one-day decline since February 3rd. The Dow Jones Industrial Average ended with triple-digit losses to fall 0.9%, while the Nasdaq dropped 0.7%.
Losses were more pronounced in Europe with the Europe Stoxx 600 slumping 2.3%, while Russian markets saw their largest falls in five years.
The crisis in Ukraine stepped up a gear over the weekend as Moscow increased its military presence in the Crimea region of the Black Sea. The move has been condemned by the G7 who labelled it as a "violation of Ukraine's sovereignty", prompting calls for potential trade sanctions and visa restrictions against Russia in retaliation.
US Secretary of State John Kerry, who is travelling to Ukraine today, released a statement on Saturday saying that unless Russia takes immediate and concrete steps to "de-escalate" tensions, "the effect on US-Russian relations and on Russia's international standing will be profound".
Disappointing data from China also weighed on market sentiment today after figures showed that manufacturing activity contracted for the second straight month. The HSBC/Markit manufacturing purchasing managers' index fell from 49.5 to 48.5 in February, although this was in line with expectations.
US data beats expectations
Markit's purchasing managers' index (PMI) for the US manufacturing sector rose to 57.1 in February from 53.7 in the month before. That was clearly above the preliminary or 'flash' estimate of 56.7.
According to Chris Williamson, Chief Economist at Markit, the final PMI reading signalled one of the largest monthly improvements in manufacturing for almost four years, reflecting a temporary rebound after supply chains and production had been disrupted by severe weather.
The ISM's more closely-watched manufacturing PMI rose from 51.3 to 53.2, ahead of the 52 forecast.
Personal income and spending rose by 0.3% and 0.4% month-on-month in January, according to the latest figures from the US Department of Commerce.
Construction spending rose by 0.1% in January to a seasonally adjusted annual rate of $943.1bn, following a 0.1% increase the month before. This was much better than the 0.5% decline expected by analysts.
Blue chips fall, precious metal miners rise
Heavyweight industrial stocks and financials were among the worst performers in New York with General Electric, Boeing, Goldman Sachs and Bank of America all trading in the red.
Companies exposed to Russia were out of favour, including Yandex, a US-listed online search engine operating in the country.
Gold mining stocks were faring a little better as the investors fled to safe-haven assets such as the precious metal amid the wider market sell-off. Newmont Mining, Freeport-McMoRan, Yamana Gold and Barrick Gold were also making decent gains.
Tyco International gained after it agreed to sell its fire and security unit in South Korea to Carlyle Group for about $1.93bn.
S&P 500 - Risers
Lorillard Inc. (LO) $53.61 +9.27%
Reynolds American Inc. (RAI) $53.29 +4.84%
Sears Holdings Corp. (SHLD) $46.24 +3.33%
Regeneron Pharmaceuticals Inc. (REGN) $339.51 +2.11%
Intuitive Surgical Inc. (ISRG) $453.84 +2.01%
Tyco International Ltd (TYC) $43.02 +1.99%
CF Industries Holdings Inc. (CF) $255.87 +1.98%
Apartment Investment & Management Co. (AIV) $30.40 +1.71%
Newmont Mining Corp. (NEM) $23.63 +1.59%
AES Corp. (AES) $13.86 +1.54%
S&P 500 - Fallers
Dover Corp. (DOV) $79.10 -16.12%
Darden Restaurants Inc. (DRI) $48.33 -5.35%
Janus Capital Group Inc. (JNS) $10.86 -2.95%
Carnival Corp. (CCL) $38.52 -2.87%
Interpublic Group of Companies Inc. (IPG) $17.22 -2.82%
Avon Products Inc. (AVP) $15.04 -2.78%
Invesco Ltd. (IVZ) $33.35 -2.77%
International Game Technology (IGT) $14.71 -2.52%
Alexion Pharmaceuticals Inc. (ALXN) $172.43 -2.47%
Charles Schwab Corp. (SCHW) $25.86 -2.45%
Dow Jones I.A - Fallers
Visa Inc. (V) $221.44 -1.99%
3M Co. (MMM) $132.21 -1.87%
Walt Disney Co. (DIS) $79.46 -1.67%
Procter & Gamble Co. (PG) $77.48 -1.50%
American Express Co. (AXP) $89.97 -1.44%
Microsoft Corp. (MSFT) $37.78 -1.38%
General Electric Co. (GE) $25.12 -1.37%
Nike Inc. (NKE) $77.39 -1.16%
E.I. du Pont de Nemours and Co. (DD) $65.89 -1.10%
JP Morgan Chase & Co. (JPM) $56.21 -1.07%
Nasdaq 100 - Risers
Tesla Motors Inc (TSLA) $250.56 +2.35%
Regeneron Pharmaceuticals Inc. (REGN) $339.51 +2.11%
Intuitive Surgical Inc. (ISRG) $453.84 +2.01%
Micron Technology Inc. (MU) $24.48 +1.20%
Sandisk Corp. (SNDK) $75.12 +1.10%
Western Digital Corp. (WDC) $87.90 +1.05%
Vertex Pharmaceuticals Inc. (VRTX) $81.56 +0.89%
Illumina Inc. (ILMN) $172.98 +0.88%
Activision Blizzard Inc. (ATVI) $19.52 +0.88%
DIRECTV (DTV) $77.96 +0.46%
Nasdaq 100 - Fallers
Vimpelcom Ltd Ads (VIP) $9.65 -5.02%
Alexion Pharmaceuticals Inc. (ALXN) $172.43 -2.47%
Expedia Inc. (EXPE) $76.70 -2.33%
QUALCOMM Inc. (QCOM) $73.63 -2.20%
Viacom Inc. Class B (VIAB) $85.90 -2.09%
Monster Beverage Corp (MNST) $72.59 -1.91%
Maxim Integrated Products Inc. (MXIM) $32.09 -1.90%
Liberty Global plc Series A (LBTYA) $84.92 -1.88%
Group Plc ADS (VOD) $40.88 -1.68%
Gilead Sciences Inc. (GILD) $81.45 -1.61% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: BP, RBS, ECB The fifth appeals court of New Orleans ruled on Monday that BP will have to restart what the company terms "absurd" payouts to people and firms who were not even negatively impacted by the 2010 Gulf of Mexico oil spill. BP had argued that a compensation-committee had misinterpreted the original agreement reached two years ago with the oil giant. Hence, the company may have to again upwardly revise its estimate of potential legal liabilities, although it still has the option to appeal before the US Supreme Court, the Daily Telegraph writes.
RBS came under fire yesterday after official figures showed that the taxpayer-backed lender had withdrawn £2.2bn of credit from small companies over the last three quarters of 2013. That was the largest reduction, followed by Nationwide Building Society, which cut its provision of credit by £1.14bn. For Cathy Jamieson, the Shadow Financial Secretary to the Treasury "These figures show that the FLS has badly failed Britain's small and medium-sized businesses. Net lending to SMEs is down once again while bonuses at many of the big banks are up this year," writes The Times.
Rates of consumer price inflation "way below" the ECB target of 2% are a threat to the Eurozone and could disanchor inflation expectations and "we do not want that", Mario Draghi said on Monday. He further expects the Ukrainian crisis to have a limited impact on the Eurozone due to the small financial and trade linkages between the two regions. The "geopolitical dimensions" of the situation, however, are completely different to what has been seen recently in emerging markets, the Daily Telegraph says.
Coffee shop Harris + Hoole, which is half-owned by Tesco is looking to double the number of its establishments and employ twice the amount of staff. The growth drive is to be centred on the south-East of England and will be divided between shops on the high street and concessions within Tesco´s own stores. The need for new personnel will be greater than that implied by the number of new stores as it will also be taking on new hires for "kitchen hubs" which will serve various shops each, The Guardian writes.
Former Balfour Beatty Chief Executive Ian Tyler will be appointed today by the Cabinet Office as a Crown Representative for troubled outsourcing firm G4S. The outfit is keen to ensure that it is fit to take new contracts with the government following inquiries into alleged overcharging. That comes as rival Serco has appointed Rachel Lomax, a former deputy Governor at the Bank of England, as a non-executive Director, The Times says.
Camra is asking the government to support pubs as the rate of net closures rises again. Over the last nine months of 2013 the number of pubs going under rose to 28 a week from 26 a week, due to tough trading condtions. In particular, Camra is asking for duty in next month´s Budget to be frozen and for curbs on big pub companies, The Times reports. | | |
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