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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 close: Stocks finish on upbeat note - FTSE closes up 42.56 points at 6,584.17
- UK unemployment data drops to 6.9 per cent
- US industrial production rises more than expected
techMARK 2,651.59 +0.79%
FTSE 100 6,584.17 +0.65%
FTSE 250 15,745.98 +1.00%
A strong finish to today's session put an end to the recent pattern of losses amongst UK companies, with so-called 'momentum' stocks providing a lift alongside several strong earnings reports.
The FTSE 100 closed up 42.56 points at 6,584.17.
Also aiding the upwards trend was the release of UK unemployment data, which dropped unexpectedly to 6.9% for the three months to February, down from 7.2% in the previous three months and below the consensus forecast of 7.1%.
Also in the UK, the financial morale of UK households reached its highest level in over five years this month as consumers worried less about rising inflation, according to data released by Markit.
The closely-watched Household Finance Index (HFI) rose from 41.9 in March to 43.1 in April, signalling the least marked squeeze on finances since the survey began in February 2009.
The HFI surveys the financial wellbeing of 1,500 people across Britain and is designed to anticipate changing consumer behaviour.
Both of these helped offset mixed data out from China overnight, which showed annualised economic growth slowing from 7.7% to 7.4% in the first quarter. This was ahead of analysts' estimates, but below the government's 7.5% growth target for the full year.
Meanwhile, Chinese industrial production and fixed asset investment growth for March missed consensus forecasts, while retail sales came in slightly ahead.
US industrial and manufacturing output rises following bleak winter
Over in the States, industrial production rose more than expected in March as the weather improved following a rough winter.
Output increased by 0.7% last month, following a 1.2% increase in February. Analysts had expected a 0.5% gain.
In other economic data from the US, home construction market disappointed, with housing starts rising less than expected and building permits falling sharply in March.
Privately-owned housing starts rose 2.8% to a seasonally-adjusted annual rate of 946,000 last month. This was higher than the upwardly revised 920,000 rate in February but well under the 970,000 consensus forecast.
As for the situation in Eastern Europe, the Ukrainian Defence Ministry has claimed that 'Russian saboteurs' captured six of its armed vehicles in the eastern city of Kramatorsk.
A statement from the Ministry, reported in the Kyiv Post, said local residents blocked a column of armoured vehicles this morning.
Sports Direct regains recent lost ground
Sports Direct, IAG and Ashtead have all been under heavy selling pressure over the past week as investors took profits following some impressive gains over the last year.
These stocks, however, were performing well today with Sports Direct the stand-out performer, rising more than 6% after Bank of America Merrill Lynch raised its target and said that the market is underestimating the company's international and online growth prospects.
Tesco profits fell for the first time in 20 years, but shares gained as the decline was not as bad as analysts predicted. A 6.7% fall in group trading profit to £3.32bn was still marginally ahead of consensus analyst forecasts of £3.24bn.
Both BAE Systems and Melrose were notable fallers after going ex-dividend today.
Fresnillo also fell sharply after revealing that its first-quarter attributable gold production totalled 82,653 ounces, down 29.7% year-on-year after the stoppage of operations at Soledad-Dipolos and the temporary suspension of explosives permits affected the Herradura mine in January and February. |
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FTSE 100 - Risers
Sports Direct International (SPD) 787.50p +5.63%
International Consolidated Airlines Group SA (CDI) (IAG) 395.20p +5.05%
Ashtead Group (AHT) 888.00p +5.03%
Travis Perkins (TPK) 1,775.00p +3.74%
ITV (ITV) 180.00p +3.69%
GKN (GKN) 386.20p +3.23%
Burberry Group (BRBY) 1,466.00p +3.09%
easyJet (EZJ) 1,653.00p +2.80%
Lloyds Banking Group (LLOY) 72.86p +2.71%
Marks & Spencer Group (MKS) 427.70p +2.66%
FTSE 100 - Fallers
BAE Systems (BA.) 376.00p -4.06%
Barratt Developments (BDEV) 365.00p -2.17%
Fresnillo (FRES) 884.00p -1.94%
Aggreko (AGK) 1,502.00p -1.70%
Smith & Nephew (SN.) 860.50p -1.26%
Hargreaves Lansdown (HL.) 1,199.00p -0.99%
Petrofac Ltd. (PFC) 1,395.00p -0.85%
British American Tobacco (BATS) 3,415.50p -0.58%
Randgold Resources Ltd. (RRS) 4,701.00p -0.55%
Melrose Industries (MRO) 281.00p -0.53%
FTSE 250 - Risers
JD Sports Fashion (JD.) 1,708.00p +6.75%
Greencore Group (GNC) 259.40p +5.62%
Smith (DS) (SMDS) 318.00p +5.23%
Mitchells & Butlers (MAB) 445.90p +4.77%
Britvic (BVIC) 708.00p +4.42%
Elementis (ELM) 286.00p +4.04%
Homeserve (HSV) 329.40p +4.01%
Renishaw (RSW) 1,945.00p +3.90%
Rentokil Initial (RTO) 120.10p +3.89%
Xaar (XAR) 861.50p +3.86%
FTSE 250 - Fallers
Lancashire Holdings Limited (LRE) 664.50p -5.34%
Amlin (AML) 442.90p -4.92%
COLT Group SA (COLT) 144.90p -2.42%
Betfair Group (BET) 993.00p -1.97%
Alent (ALNT) 306.30p -1.48%
Heritage Oil (HOIL) 252.80p -1.44%
Serco Group (SRP) 407.20p -1.33%
NB Global Floating Rate Income Fund Ltd GBP (NBLS) 98.00p -1.31%
Evraz (EVR) 83.45p -1.24%
BH Macro Ltd. USD Shares (BHMU) 18.75 -1.16% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks rise as investors weigh UK and US data - UK unemployment rate falls
- US industrial production rises
- Eurozone inflation drops
- Ukraine turmoil continues
FTSE 100: 0.65%
DAX: 1.57%
CAC 40: 1.39%
FTSE MIB: 3.44%
IBEX 35: 1.63%
Stoxx 600: 1.30%
European stocks rose as the UK unemployment rate fell and reports showed an increase in US housing and industrial activity.
The UK jobless rate dropped to 6.9% in the three months to February from 7.2% the previous quarter, ahead of analysts' predictions for a slight dip to 7.1%.
Jobless claims declined 30,400 in March following a 37,000 decrease in February, beating forecasts for a 30,000 slide.
British employers also added more jobs and weekly earnings rose in the quarter to February, the Office for National Statistics (ONS) revealed.
US data
In the US, industrial production rose by 0.7% last month, following a 1.2% increase in February. Analysts had expected a 0.5% gain.
"With industrial production rising at a decent pace in March, the economy is now starting to show its true colours after the weakness triggered by the bleakest of winters," according to Capital Economics. "There is scope for production to rise rapidly in the coming months too."
Another report showed privately-owned housing starts in the US increased 2.8% to a seasonally-adjusted annual rate of 946,000 last month.
While it came in higher than the upwardly revised 920,000 rate in February, it was well under the 970,000 consensus forecast.
Eurozone inflation
Eurozone inflation declined to 0.5% in March from 0.7% in February, Eurostat confirmed today, adding pressure on the European Central Bank (ECB) to do more to tackle falling prices.
ECB President Mario Draghi over the weekend said a "further strengthening of the exchange rate would require further stimulus".
Ukraine crisis
The Ukrainian Defense Ministry has claimed that 'Russian saboteurs' captured six of its armed vehicles in the eastern city of Kramatorsk.
A statement from the Ministry, reported in the Kyiv Post, said local residents blocked a column of armoured vehicles on Wednesday morning.
Tens of thousands of Russian soldiers are said to have surrounded Ukraine's borders since Russia took control of the Ukrainian region of Crimea last month.
GEA, Tesco
GEA edged higher as the German maker of food-processing equipment agreed to sell its heat-exchangers unit to private-equity firm Triton at an enterprise value of €1.3bn.
Tesco advanced as the UK supermarket chain reported annual trading profit that beat analysts' estimates.
Burberry Group was up after the UK luxury-goods maker revealed an increase in second-half sales that exceeded forecasts.
International Consolidated Airlines gained as HSBC Holdings upgraded the parent of British Airways to 'overweight' from 'neutral', saying it sees strong earnings momentum in 2014 and 2015.
Suez Environnement advanced as Exane BNP Paribas raised its recommendation for Europe's second-biggest water company to 'outperform' from 'neutral'.
BHP Billiton climbed as the mining company raised its full-year iron-ore production guidance after a jump in third-quarter output.
Syngenta rallied as the world's largest maker of crop chemicals posted a rise in quarterly sales that was in line with market consensus.
ASML slumped after the European semiconductor-equipment supplier estimated quarterly revenue that fell short of analysts' predictions.
Credit Suisse declined as the second-biggest Swiss bank said lower investment-bank profit led to a drop in first-quarter net income.
The euro fell 0.04% to $1.3809.
Brent crude futures rose $0.464 to $109.870 per barrel, according the ICE. |
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| | US Market Report | | US open: Yahoo and Intel lead markets higher, but BofA falls - Yahoo!, Intel impress with quarterly earnings
- Bank of America posts surprise loss
- Housing starts, building permits miss forecasts
- Industrial production exceeds estimates
Dow Jones: 0.52%
Nasdaq: 0.39%
S&P 500: 0.38%
US stocks rose for the third straight day on Wednesday after well-received earnings from Yahoo! and Intel outweighed a surprise first-quarter loss reported by Bank of America.
The Dow Jones Industrial Average was trading 0.5% higher after the opening bell on Wall Street, the S&P 500 and Nasdaq rose 0.4%
Markets were largely shrugging off disappointing data from the US home construction market today, with housing starts rising less than expected and building permits falling sharply in March. Industrial production, however, expanded by more than predicted last month.
Analysts at Capital Economics said that the US economy is "now showing its true colours after the weakness triggered by the bleakest of winters. There is scope for production to rise rapidly in the coming months too".
Markets were looking ahead to a speech later this afternoon by Federal Reserve Chair Janet Yellen who will address the Economic Club of New York. The central bank will also unveil its Beige Book, a survey of economic conditions across the States.
On Tuesday Yellen said the Fed was considering further steps to force big banks to hold more capital. She cited a 2010 study by the Basel Committee, an international standard-setting body, that suggested tighter standards would provide economic benefits.
"There might be room for stronger capital and liquidity standards for large banks than have been adopted so far," Yellen said in a pre-recorded video for a financial markets conference hosted by the Atlanta Federal Reserve Bank.
Economic data
Privately-owned housing starts rose 2.8% to a seasonally-adjusted annual rate of 946,000 last month. This was higher than the upwardly revised 920,000 rate in February but well under the 970,000 consensus forecast.
Meanwhile, forward-looking building permits fell 2.4% to 990,000 in March, compared with a downwardly revised 1.014m in February. Analysts had expected little change over the month.
US mortgage applications, however, rose by 4.3% in the week ended April 11th, rebounding strongly after a 1.6% fall a week earlier, according to the Mortgage Bankers' Association.
Industrial production in the States increased by 0.7% in March, down from an upwardly revised 1.2% gain the month before but ahead of the 0.5% forecast.
Yahoo!, Intel, Bank of America
Internet portal Yahoo! surged as much as 8% after the opening bell after first-quarter results were buoyed by strongly sales at Chinese e-commerce group Alibaba in which it holds a 24% stake. Non-GAAP earnings per share (EPS) were flat year-on-year at 38 cents over the three months to March 31st, but ahead of the 37 cents estimate. Adjusted revenue rose by a better-than-expected 1% to $1.09bn.
Chipmaker Intel was also higher after EPS of 38 cents exceeded expectations despite falling from 40 cents the year before.
Bank of America, however, fell after reporting a five cents-a-share loss for the first quarter, compared with a EPS of 10 cents per share the year before, after it recorded a $6bn litigation expense relating to a settlement with the Federal Housing Finance Agency and other mortgage issues. The consensus estimate was for a EPS of five cents a share.
West Texas Intermediate futures were up 0.82% at $104.60 a barrel on the NYMEX.
The yield on a 10-year US Treasury was up two basis points at 2.65%. |
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| | Broker Tips | | Broker tips: Sports Direct, Tesco, DS Smith Sports Direct shares were rising strongly on Wednesday morning as the stock bounced strongly after its recent weakness, with comments from Bank of America Merrill Lynch providing a boost.
The US bank raised its near-term forecasts for the sporting goods retailer and lifted its target for the shares from 1,000p to 1,070p, saying that the market is underestimating the company's international and online growth prospects.
Tesco's annual results may have received a warm reaction from the markets on Wednesday, but analysts at Shore Capital said the figures make for "very disappointing reading" as they reiterated a 'sell' rating on the supermarket giant.
However, Shore analysts Clive Black and Darren Shirley said that despite a 25% cut to their 2014/15 profit forecasts over the last year, "we cannot yet call the end of the downgrade cycle". They said that recent market share data in the UK and Ireland suggested "especially weak trading".
Comments from JPMorgan Cazenove gave consumer packaging group DS Smith a boost on Wednesday, saying that the recent de-rating of the stock has created an opportunity for investors ahead of a trading update later this month. JPMorgan reiterated its 'overweight' recommendation and 355p target for the stock.
Since the start of February, DS Smith's share price has fallen by 6.7%, underperforming its peers, and it now trades at similar valuation multiples to others in the sector. "Yet, in our opinion, deserves a premium on account of its lower cyclicality and lower capital intensity," the bank said. | | |
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