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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 rise ahead of central bank decisions - BoE, ECB meetings in focus
- EU leaders hold emerging talks over Russia
- Aggreko, Aviva and Schroders impress with results
- IMI sinks sharply
techMARK 2,902.57 +0.12%
FTSE 100 6,801.49 +0.38%
FTSE 250 16,692.40 +0.47%
UK markets opened with decent gains on Thursday as investors assessed the latest developments in Ukraine and awaited a busy day on the macroeconomic front.
Along with a flurry of economic data from across the globe, markets will be focusing central bank decisions in the UK and Europe.
The FTSE 100 was trading 0.4% higher at 6,801 in early trading.
The Bank of England is expected to hold fire on monetary policy when it announces its decision at midday, keeping the Bank Rate at 0.5% and the size of its asset purchase programme at £375bn.
The European Central Bank (ECB) decision after lunch is likely to grab more attention given the rising deflationary risks in the Eurozone. Nevertheless, the majority of analysts seem to expect the ECB will keep the benchmark interest rate at the record low level of 0.25% after the slight improvement in recent economic data and the small tick-up in consumer price inflation in February.
"If the ECB were to cut today when inflation is edging higher it rather begs the question why they didn't act last month when inflation was falling. For this reason no action seems the most likely course of action given that there has been no material deterioration in any of the data since the last meeting," said Chief Market Analyst Michael Hewson from CMC Markets.
However, comments from ECB President Mario Draghi earlier this week have ramped up speculation about some sort of action from policymakers today, after he said that inflation is "way below" the 2% target and risks becoming entrenched at low levels.
The ongoing crisis in Ukraine will continue to act as a backdrop for markets today as European Union leaders meet for emergency talks to decide on their response to Russia's increased military presence in the Crimea region.
Aggreko, Aviva and Schroders surge
Temporary power group Aggreko jumped strongly this morning after confirming that it would return £200m in capital to shareholders, as it reported an 8% fall in 2013 earnings, in line with company expectations.
Also higher was insurer Aviva as its turnaround under Chief Executive Mark Wilson saw encouraging progress. 2013 results exceeded most analysts expectations with operating profits rising 6%.
Schroders also surged after hiking its full-year dividend by 35% following a record year for the asset management group in 2013 as the company saw profits increase 41%.
Results from engineering group IMI, however, failed to impress as the company reported a 3% increase in revenues from continuing operations. The company said it expects "modest" growth in 2014, but only when excluding the adverse impact of exchange rates. |
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| FTSE 100 - Risers
Aggreko (AGK) 1,714.00p +8.96%
Aviva (AV.) 503.00p +7.92%
Schroders (SDR) 2,744.00p +5.95%
Anglo American (AAL) 1,557.00p +2.43%
Fresnillo (FRES) 934.50p +2.35%
Glencore Xstrata (GLEN) 338.45p +1.88%
Aberdeen Asset Management (ADN) 388.10p +1.60%
Coca-Cola HBC AG (CDI) (CCH) 1,533.00p +1.52%
Old Mutual (OML) 199.40p +1.42%
Lloyds Banking Group (LLOY) 81.81p +1.34%
FTSE 100 - Fallers
IMI (IMI) 1,464.00p -5.43%
Legal & General Group (LGEN) 232.80p -1.36%
Rolls-Royce Holdings (RR.) 1,012.00p -1.27%
Meggitt (MGGT) 480.60p -1.23%
British Sky Broadcasting Group (BSY) 931.50p -1.01%
United Utilities Group (UU.) 786.50p -0.82%
Standard Chartered (STAN) 1,241.00p -0.56%
Severn Trent (SVT) 1,852.00p -0.54%
Melrose Industries (MRO) 300.80p -0.53%
Carnival (CCL) 2,380.00p -0.50%
FTSE 250 - Risers
Alent (ALNT) 322.60p +4.91%
Vedanta Resources (VED) 894.00p +4.26%
Inmarsat (ISAT) 700.00p +3.86%
Man Group (EMG) 104.90p +3.76%
Synthomer (SYNT) 278.50p +3.72%
Essar Energy (ESSR) 69.50p +3.50%
Kazakhmys (KAZ) 306.10p +3.41%
Evraz (EVR) 65.45p +3.40%
COLT Group SA (COLT) 145.00p +2.91%
Carillion (CLLN) 387.00p +2.79%
FTSE 250 - Fallers
Imagination Technologies Group (IMG) 172.00p -8.80%
Balfour Beatty (BBY) 302.70p -5.82%
Perform Group (PER) 283.00p -4.07%
Soco International (SIA) 412.10p -2.37%
Unite Group (UTG) 441.70p -2.28%
Pace (PIC) 465.50p -1.90%
Daejan Holdings (DJAN) 4,875.00p -1.69%
CSR (CSR) 776.50p -1.46%
Computacenter (CCC) 680.50p -1.38% |
| | UK Event Calendar | | Thursday March 06
INTERIMS
IndigoVision Group
INTERIM DIVIDEND PAYMENT DATE
Ideagen
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Bloomberg Consumer Confidence (US) (14:45)
Continuing Claims (US) (13:30)
ECB Interest Rate (EU) (12:45)
Factory Orders (GER) (11:00)
Factory Orders (US) (15:00)
Goods Orders (US) (15:00)
Initial Jobless Claims (US) (13:30)
PMI Construction (GER) (08:30)
PMI Retail (GER) (09:10)
Productivity (US) (13:30)
Q4
Hellenic Telecom Industries SA ADS, X5 Retail Group NV GDR (Reg S)
GMS
F&C Global Smaller Companies
FINALS
32Red, Advanced Medical Solutions Group, Aggreko, Aviva, Avocet Mining, Balfour Beatty, Cineworld Group, Cobham, Communisis, Dairy Farm International Holdings Ltd. (Singapore), Fisher (James) & Sons, Hellenic Telecom Industries SA ADS, Hongkong Land Holding Ltd. (Sing.Reg), Hunting, IMI, Inmarsat, Irish Continental Group Units, Jardine Matheson Holdings Ltd (Singapore Reg), London Mining, LSL Property Services, Management Consulting Group, Mandarin Oriental International (Singapore), OJSC Cherkizovo Group GDR (Reg S), Planet Payment Inc., Schroders, Schroders (Non-Voting), Spirax-Sarco Engineering, Unite Group, X5 Retail Group NV GDR (Reg S)
IMSS
Betfair Group, Smith (DS)
AGMS
Avesco Group, Geiger Counter Ltd., Jersey Electricity 'A' Shares, Local Shopping REIT, LPA Group, New City Energy Ltd NPV, Sage Group
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Decision (12:00)
New Car Registrations (09:30)
PMI Retail (EU) (09:00)
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise ahead of BoE and ECB meetings - ECB and BoE announce policies
- IMF wants greater say in Greek banks
- EU considers sanctions against Russia
FTSE 100: 0.37%
DAX: 0.39%
CAC 40: 0.65%
FTSE MIB: 0.77%
IBEX 35: 0.91%
Stoxx 600: 0.51%
Stocks in the euro-area gained as investors awaited policy decisions from the European Central Bank (ECB) and the Bank of England (BoE).
Economists are mixed on whether the ECB was change its policy today to address to low inflation and high unemployment in the Eurozone.
"We expect the ECB to ease monetary policy further today and to cut its policy interest rates again, but it is a very close call given the mixed signals from recent data flow," according to Barclays.
However, analysts at Bank of America Merrill Lynch believe that the ECB is likely to hold fire until later meetings: "In our view, the ECB is not ready to fire a 'bazooka' in this week's meeting, despite very low inflation and rising deflation risks.
"[…] Looking ahead, we believe that the ECB is not worried about deflationary risks yet. However, the ECB might be pushed into action at the April meeting, or this summer, if inflation falls further," they said.
ECB President Mario Draghi has hinted at the possibility of enacting greater measures, saying he was awaiting more comprehensive data in March before making a decision.
He has noted the current rate of inflation, at 0.8% , was well below the 2% target and will remain low for a "protracted period of time". Unemployment also remains at a 12% high.
The International Monetary Fund (IMF) has urged the ECB to cut interest rates and either inject more liquidity into the banking system via its Long-Term Refinancing Operations (LTRO) or start public and private asset purchases.
The IMF also wants a greater say in the fate of Greek banks as it fears the ECB is being too lenient on them, sources told Bloomberg.
Meanwhile, the BoE holds its meeting today, and analyst expect the central bank will maintain its policy by keeping interest rates at 0.5% and asset purchases at £375bn.
Governor Mark Carney last month switched the Bank's forward guidance on interest rates to reflect an unexpectedly fast pick-up in UK employment.
Last year the BoE vowed to keep interest rates low until unemployment falls to 7% but a sooner-than-anticipated drop towards the threshold prompted Carney to change the guidance to include a wider range of indicators including spare capacity in the economy.
In the US later on will be the release of reports on weekly jobless claims and factory orders.
EU assess Ukraine sanctions
European Union (EU) leaders will weigh sanctions to address the Ukraine crisis at an emergency meeting today.
Officials in the EU will consider the repercussions for Russia after the country's Foreign Minister Sergei Lavrov refused to attend a meeting with his Ukranian counterpart in Paris that was recommended by US Secretary of State John Kerry.
The US and the EU are among Western nations pursuing diplomacy efforts in an effort to curb the turmoil in the Ukraine. They are also threatening Russia with sanctions over its military intervention in Crimea.
Russian President Vladimir Putin said this week that while he sees no immediate need to use force in southeastern Ukraine, he stands ready to protect ethnic Russians. He said former Ukraine President Viktor Yanukovych, who was ousted after violent protests, had requested troops in Crimea.
Vivendi, Orange
Vivendi gained after saying it received two bids for the French phone unit SFR it was planning to spin off.
Orange edged higher after the French phone forecast 2014 earnings that exceeded market expectations.
Deutshe Telekom declined after Chief Executive Timotheus Hoettges said a sale of the T-Mobile US unit is less likely in the near term.
Gemalto advanced as the maker of security chips and software predicted "double-digit expansion" of profit from operations and revenue at constant exchange rates in 2014.
The euro fell 0.04% to $1.3727.
Brent crude futures rose $0.130 to $107.900 per barrel, according to the ICE. |
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| | US Market Report | | US close: Stocks flat, S&P 500 pauses at record after weak data - ADP, ISM reports miss estimates
- Fed's Beige Book sees 'modest to moderate' growth
- S&P 500 pauses at record high
Dow Jones: -0.22%
Nasdaq: 0.14%
S&P 500: 0.00%
US stocks ended more or less flat on Wednesday after some weak economic data as markets paused for breath following a strong performance the day before.
The S&P 500 finished unchanged after surging 1.5% on Monday to finish at an all-time high of 1,874, its 49th record close over the past year, after comments from Russian President Vladimir Putin.
Geopolitical tensions in eastern Europe eased after Putin said he saw no need yet to send troops into Ukraine after the situation had "dissipated", adding that soldiers would only be deployed in an extreme case.
The focus was back on economic data as ADP revealed that US private sector payrolls expanded by just 139,000 last month, missing the consensus estimate for a rise of 158,000. What's more, January's 175,000 increase was revised sharply lower to 127,000.
The report is often seen as a rough indicator for the more closely-watched official employment report due out on Friday. Non-farm payrolls are expected to have risen by 150,000, up from the 113,000 total observed in January, while the unemployment rate is predicted to remain stable at 6.6%.
Wednesday's session also saw the release of the US ISM non-manufacturing index which fell to 51.6 in February, well below the January reading of 54 and consensus estimates for a dip to 53.5.
"While several respondents reported negative effects from adverse weather conditions on the month, the uneven moves in the sub-indices suggest that weather was not the only cause of the headline decline," said analysts at Barclays.
Meanwhile, the Federal Reserve's Beige Book said that the US economy grew at a "modest to moderate" pace overall in the period from January through early February, slightly worse than the "moderate" pace mentioned previously.
Honeywell edges higher, Target drops
US industrial conglomerate Honeywell advanced after targeting sales of over $50bn by 2018, compared with $39.1bn generated in 2013. The company also said that earnings should grow at a double-digit percentage rate over the next five years.
Retailer group Target Corp fell after its head of technology Beth Jacob resigned amid an investigation into a security breach of customer information.
Oil major Exxon was a heavy faller along with other energy producers due to ongoing concerns about its exposure to Russia.
Gun maker Smith & Wesson surged after raising its earnings per share guidance for the full year to $1.39-1.42, up from $1.35 previously.
S&P 500 - Risers
Facebook Inc. (FB) $71.57 +4.03%
Genworth Financial Inc. (GNW) $16.39 +3.93%
Allegheny Technologies Inc. (ATI) $33.86 +3.90%
Fastenal Co. (FAST) $48.61 +3.76%
GameStop Corp. (GME) $38.75 +3.75%
Brown Forman Corp. Class B (BF.B) $87.11 +3.33%
Bank of America Corp. (BAC) $17.25 +3.11%
Edwards Lifesciences Corp. (EW) $72.51 +3.07%
Kroger Co. (KR) $43.68 +3.04%
Citrix Inc. (CTXS) $62.56 +2.93%
S&P 500 - Fallers
Reynolds American Inc. (RAI) $54.30 -3.57%
Sears Holdings Corp. (SHLD) $44.28 -3.40%
Lorillard Inc. (LO) $53.48 -3.22%
Exxon Mobil Corp. (XOM) $93.80 -2.82%
Pioneer Natural Resources Co. (PXD) $198.87 -2.77%
Range Resources Corp. (RRC) $83.41 -2.40%
Mylan Inc. (MYL) $55.84 -2.38%
Peabody Energy Corp. (BTU) $17.21 -2.16%
Denbury Resources Inc. (DNR) $16.20 -2.06%
Kimberly-Clark Corp. (KMB) $108.64 -2.00%
Dow Jones I.A - Risers
Goldman Sachs Group Inc. (GS) $171.90 +1.88%
JP Morgan Chase & Co. (JPM) $58.16 +1.57%
Walt Disney Co. (DIS) $82.68 +1.19%
General Electric Co. (GE) $25.93 +1.09%
3M Co. (MMM) $133.85 +0.88%
International Machines Corp. (IBM) $187.14 +0.38%
Travelers Company Inc. (TRV) $84.37 +0.31%
Cisco Systems Inc. (CSCO) $21.87 +0.23%
Pfizer Inc. (PFE) $32.75 +0.18%
Coca-Cola Co. (KO) $38.35 +0.10%
Dow Jones I.A - Fallers
Exxon Mobil Corp. (XOM) $93.80 -2.82%
Nike Inc. (NKE) $77.42 -1.53%
Visa Inc. (V) $222.81 -1.19%
Boeing Co. (BA) $128.79 -1.11%
Verizon Communications Inc. (VZ) $47.38 -1.09%
Johnson & Johnson (JNJ) $92.59 -0.80%
Procter & Gamble Co. (PG) $77.82 -0.80%
Microsoft Corp. (MSFT) $38.11 -0.78%
Chevron Corp. (CVX) $114.43 -0.77%
Caterpillar Inc. (CAT) $96.37 -0.67%
Nasdaq 100 - Risers
Facebook Inc. (FB) $71.57 +4.03%
Fastenal Co. (FAST) $48.61 +3.76%
Citrix Systems Inc. (CTXS) $62.56 +2.93%
Amazon.Com Inc. (AMZN) $372.37 +2.33%
Express Scripts Holding Co (ESRX) $77.15 +1.97%
Green Mountain Coffee Roasters Inc. (GMCR) $110.54 +1.77%
Applied Materials Inc. (AMAT) $19.17 +1.75%
Activision Blizzard Inc. (ATVI) $20.04 +1.67%
Dish Corp. (DISH) $60.48 +1.54%
F5 Networks Inc. (FFIV) $114.66 +1.36%
Nasdaq 100 - Fallers
Mylan Inc. (MYL) $55.84 -2.38%
Verisk Analytics Inc. (VRSK) $62.10 -2.16%
Akamai Technologies Inc. (AKAM) $61.51 -1.80%
Expedia Inc. (EXPE) $75.73 -1.70%
Whole Foods Market Inc. (WFM) $54.16 -1.65%
Fiserv Inc. (FISV) $58.28 -1.52%
Alexion Pharmaceuticals Inc. (ALXN) $171.00 -1.41%
Monster Beverage Corp (MNST) $73.44 -1.38%
Biogen Idec Inc. (BIIB) $338.94 -1.23%
Seagate Technology Plc (STX) $52.56 -1.17% |
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| | Newspaper Round Up | | Thursday newspaper round-up: Ukraine, Co-op, Rolls Royce Attempts to broker direct negotiations between Russia and Ukraine´s foreign ministers made little headway in Paris on Wednesday, although the US Secretary of State and Russia´s Minister of Foreign Affairs are due to meet again on Thursday, in Rome. In parallel, the European Union announced that it would provide a 15bn dollar aid package for Kiev, while NATO stepped up air patrols over the Baltic region and decided on an increase in joint training exorcises between its 28 members, according to The Wall Street Journal Europe.
The Co-Operative Group´s latest strategy update revealed it has decided that the best way to compete with Tesco and Sainsbury´s wider range is in the convenience store space. The country´s fifth largest grocer will now aim to double the number of its convenience stores from the current 2,000. That segment is currently worth £36bn a year and is forecast to grow by £10bn a year by 2019, The Daily Express reports.
Rolls Royce´s power turbines unit has come under increased scrutiny after reports that its commercial ally in India, Hindustan Aeronautics, has 'blown the whistle' on correspondence allegedly showing that the firm made unauthorised payments to the Gas Authority of India between 2007 and 2011. In parallel, the company´s annual report revealed that its Chief received £1.2m in bonuses and perks last year while over 100 people in the senior leadership team will not get a rise in basic pay this year, The Times says.
Royal Dutch Shell, Lloyds Banking Group and Barclays all warned on Wednesday on how the heightened uncertainty would negatively affect their businesses through different channels should Scotland opt to break away. A spokesman for the Scottish government agreed with some of the arguments put forward by the companies, indicating how what really mattered was indeed economic competitiveness. Hence, the real risk for the oil and gas sector would come should the UK leave the European Union. On top of that, he pointed out how a recent Oil and Gas UK poll had shown that 70% of oil workers planned to vote for independence, The Daily Telegraph reports.
Output of oil and gas from the North Sea has fallen by 38% over the last three years, just as 3.7 gigawatts of UK coal-fired generating capacity are set to shut down by 2015 due to new regulations on emissions. Hence, by 2020 Britain will rely on imports for 70% of its gas needs. "That is why it is vitally important we continue with an approach of developing a balanced energy mix including new nuclear, renewables and carbon capture and storage," the boss of Centrica, Sam Laidlaw, told the CERAweek energy conference yesterday, The Scotsman says.
The Treasury Committee will question the Governor of the Bank of England and other senior officials regarding the recent suspension of an employee. Some observers have apparently insinuated that the central bank turned a blind eye to the fact that some traders were rigging the multi-trillion-dollar foreign exchange markets. While that individual´s name has not been revealed and Bank has said no evidence has been found that its staff were involved although a law firm will be brought in to investigate the matter further, according to The Times. | | |
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