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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: Barclays rises ahead of strategy update - Ukraine turmoil continues as clashes turn deadly
- Investors cautious ahead of four-day weekend
- US corporate earnings in focus
- Barclays rises as investors look forward to strategic update
Market Movers
techMARK 2,679.96 +1.07%
FTSE 100 6,625.25 +0.62%
FTSE 250 15,907.91 +1.03%
UK stocks finished the day moderately higher on Thursday ahead of the long weekend, as tensions between Russia and Ukraine continued to intensify and with many traders absent from their desks ahead of the bank holiday.
The FTSE 100 ended the day 0.62% higher at 6,625.25.
Even so, a cautious note was clearly evident in different market observers' notes and commentaries ahead of earnings reports from a raft of US blue chips later on, including banking heavyweights Goldman Sachs and Morgan Stanley and bellwethers PepsiCo and General Electric.
Talks in Geneva between the US, Russia and Ukraine and the EU were being closely watched by global financial markets today, as reports of heightened tensions along the eastern border of Ukraine continue to worry world leaders.
Three pro-Russian protesters were reportedly killed in a clash last night with Ukrainian authorities at a military installation in the southeast of the country. Russian President Vladimir Putin accused the Kiev government of committing "a serious crime" by sending in troops to Ukraine's east to remove Russian separatists.
Market Strategist Ishaq Siddiqi from ETX Capital said that the violence is "a worrying prospect for market participants who so far have dealt with the geopolitical tensions in good character on the notion that this crisis is mostly a war of words between the West and Russia".
Barclays rises as traders look forward to strategic update
The share price of Barclays rose strongly on Thursday amid speculation the bank could announce thousands of further job cuts in its investment banking division as part of a corporate shake-up. Barclays released a statement today which announced that it would update shareholders next month on its strategy "to deliver improved and sustainable returns and growth for shareholders". The bank said this would include a "positioning" of the investment bank.
Year-to-date organic revenue growth at Diageo has been held back by a sales decline in the third quarter due to weakness across many emerging markets, causing shares to drop this morning. The company, famous for brands such as Captain Morgan, Smirnoff and Guinness, said that organic net sales fell by 1.3% in the three months to March 31st.
Guidance from French spirits maker Remy Cointreau also hit stocks in the beverages sector, after it said that full-year operating profit would drop by 35-40% due to weakness in China. UK-listed SABMiller traded lower today.
RSA Insurance gained after selling off its Baltics and Polish businesses as newly-appointed Chief Executive Stephen Hester attempts to turn around the embattled insurer.
Royal Dutch Shell edged higher following an exploration discovery offshore Malaysia. The Rosmari-1 well, located 135km offshore in Block SK318, encountered more than 450 metres of gas column after being drilled to a total depth of 2,123 metres.
Fashion group Burberry pulled back after a solid rise the day before after Credit Suisse said it expects profit growth to "take a break" this year. "As much as we like Burberry's superior long-term top-line story, we see group margins under pressure in the next two years, which should put a lid on the shares," the bank said.
Sentiment in the luxury sector was also dampened by a profit warning from handbag and accessories maker Mulberry, its fourth in two years. |
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FTSE 100 - Risers
ARM Holdings (ARM) 976.50p +4.77%
Schroders (SDR) 2,559.00p +4.24%
Whitbread (WTB) 4,055.00p +3.97%
Barclays (BARC) 246.50p +3.77%
BAE Systems (BA.) 389.10p +3.48%
ITV (ITV) 186.20p +3.44%
International Consolidated Airlines Group SA (CDI) (IAG) 407.70p +3.16%
St James's Place (STJ) 781.00p +3.03%
Aberdeen Asset (ADN) 436.80p +2.87%
Barratt Developments (BDEV) 374.80p +2.68%
FTSE 100 - Fallers
Diageo (DGE) 1,829.00p -3.74%
Antofagasta (ANTO) 828.50p -2.07%
Sainsbury (J) (SBRY) 314.00p -2.06%
Fresnillo (FRES) 868.00p -1.81%
Burberry Group (BRBY) 1,440.00p -1.77%
Tesco (TSCO) 289.70p -1.40%
Severn Trent (SVT) 1,782.00p -1.00%
Tullow Oil (TLW) 867.50p -0.91%
United Utilities Group (UU.) 769.50p -0.71%
G4S (GFS) 242.10p -0.70%
FTSE 250 - Risers
Evraz (EVR) 91.10p +9.17%
Britvic (BVIC) 747.00p +5.51%
Countrywide (CWD) 637.00p +5.46%
Ocado Group (OCDO) 350.20p +4.85%
RPC Group (RPC) 631.50p +4.38%
Close Brothers Group (CBG) 1,383.00p +4.30%
Thomas Cook Group (TCG) 171.10p +4.27%
Bank of Georgia Holdings (BGEO) 2,640.00p +4.14%
Entertainment One Limited (ETO) 315.60p +4.06%
Crest Nicholson Holdings (CRST) 372.90p +4.05%
FTSE 250 - Fallers
Diploma (DPLM) 668.50p -2.27%
Debenhams (DEB) 79.40p -1.98%
Ophir Energy (OPHR) 225.00p -1.96%
Kazakhmys (KAZ) 234.00p -1.93%
Greencore Group (GNC) 254.40p -1.93%
Infinis Energy (INFI) 218.00p -1.80%
Rank Group (RNK) 158.40p -1.68%
Domino's Pizza Group (DOM) 523.00p -1.60%
Dechra Pharmaceuticals (DPH) 657.00p -1.57%
KCOM Group (KCOM) 97.50p -1.56%
FTSE TechMARK - Risers
NCC Group (NCC) 186.50p +9.06%
Skyepharma (SKP) 223.00p +6.70%
Filtronic (FTC) 39.75p +1.27%
Dialight (DIA) 949.00p +0.96%
Wolfson Microelectronics (WLF) 134.25p +0.85%
Kofax Limited (DI) (KFX) 456.00p +0.72%
BATM Advanced Communications Ltd. (BVC) 18.00p +0.70%
Consort Medical (CSRT) 900.00p +0.56%
Gresham Computing (GHT) 128.00p +0.39%
Ricardo (RCDO) 671.50p +0.22%
FTSE TechMARK - Fallers
RM (RM.) 143.00p -4.59%
Torotrak (TRK) 19.75p -3.66%
DRS Data & Research Services (DRS) 27.50p -1.79%
SDL (SDL) 314.25p -1.64%
XP Power Ltd. (DI) (XPP) 1,589.00p -0.69%
Optos (OPTS) 173.75p -0.64%
Anite (AIE) 82.25p -0.30%
IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 185.68 -0.20%
Sepura (SEPU) 135.00p -0.18%
Phoenix IT Group (PNX) 117.00p -0.11% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks rise as US initial jobless claims beat estimates - US weekly jobless claims rise less than forecast
- Putin to deploy troops if diplomacy fails
- European carmakers rally on as sales rise
FTSE 100: 0.62%
DAX: 0.99%
CAC 40: 0.59%
FTSE MIB: 0.37%
IBEX 35: 0.24%
Stoxx 600: 0.49%
European stocks climbed after a better-than-expected report on US weekly jobless claims.
Initial weekly unemployment claims increased by 2,000 in the week ending on April 12th, to reach 304,000, according to the Labor Department.
The consensus estimate had been for an increase to 315,000. Claims in the previous week were revised up by 2,000 to 302,000.
Meanwhile, Russian President Vladimir Putin said he was ready to deploy troops in Ukraine if diplomatic efforts fail to resolve the crisis. He accused the authorities in Kiev of plunging the country into an "abyss".
His remarks came as foreign ministers from Russia, Ukraine, the US and the European Union were meeting in Geneva today discuss ways to douse the flames.
Europe car sales, French policy
European car sales rose by 10% to 1.49m vehicles in March, led by a 18% gain in the UK to reach 464,824 vehicles, according to the European Automobile Manufacturer's Association today.
Demand for vehicles has risen as consumer confidence improves in Europe and the sovereign-debt crisis regresses in Greece, Portugal and Spain.
Renault and Daimler gained as the report showed sales at the carmakers jumped 29% and 2.6% last month, respectively.
In France, Prime Minister Manuel Valls yesterday revealed plans to save €50bn between 2015 and 2017 by cutting back on spending, including on welfare benefits - a politically sensitive area.
"Although France's short-term outlook remains weak, the new French Government's recent policy announcements provide hope that France is slowly tackling its significant competitiveness problems," Capital Economics said.
Distilleries slide
A gauge of food and beverage stocks posted the worst performance on the Stoxx 600.
Remy Cointreau slipped after the maker of Remy Martin cognac said that adjusted operating profit probably declined by 35% to 40% in the financial year ended March.
Diageo retreated after the world's biggest distiller said sales, excluding acquisitions and currency swings, fell 1.3% in the third quarter of its financial year, missing analysts' estimates for an increase of 1.8 percent.
Pernod Ricard SA, Europe's second-largest distiller, also fell.
TUI advanced as Equinet Bank AG raised its recommendation on Europe's biggest tour operator to 'buy' from 'accumulate'.
SAP AG declined after Germany's biggest technology company reported quarterly sales and earnings that missed analysts' estimates.
The euro rose 0.10% to $1.3830.
Brent crude futures increased $0.346 to $109.990 per barrel, according to the ICE. |
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| | US Market Report | | US open: Stocks edge lower as corporate earnings come in mixed - Google and IBM disappoint with results
- Morgan Stanley and Goldman rise
- Jobless claims, Philly Fed index beat forecasts
- Ukraine tensions rise
Dow Jones: -0.21%
Nasdaq: -0.18%
S&P 500: -0.18%
US stocks snapped a three-day winning streak on Thursday despite upbeat economic data as investors digested mixed corporate earnings and ongoing developments in Ukraine.
Nevertheless, losses were only modest early on with the Dow Jones Industrial Average, Nasdaq and S&P 500 all falling by just 0.2%.
Google and IBM dampened sentiment in the tech sector after missing estimates with their third-quarter results after the closing bell last night; banking heavyweights Morgan Stanley and Goldman Sachs, however, impressed with their quarterly figures.
It was a relatively busy day for corporate earnings with 25 companies on the S&P 500 due to release their results. According to Bloomberg, analysts predict that profits per share across the S&P 500 fell by an average 0.9% in the first quarter.
In economic data, initial weekly unemployment claims increased by just 2,000 in the week ending on April 12th, to reach 304,000, according to the Labor Department. The consensus estimate had been for an increase to 315,000. Claims in the previous week were revised up by 2,000 to 302,000.
The Philadelphia Fed manufacturing index rose to 16.6 in April from 9.0 in March, the highest reading since September 2013.
In other news, Russian President Vladimir Putin said he was ready to deploy troops in Ukraine if diplomatic efforts fail to resolve the crisis.
His remarks came as foreign ministers from Russia, Ukraine, the US and the European Union were meeting in Geneva discuss ways to douse the flames.
Google, IBM, Morgan Stanley, Goldman
Internet giant Google tumbled as first-quarter revenue and earnings fell short of analysts' expectations, with paid clicks also falling from the last quarter of 2013. Google reported adjusted earnings up 1.3% to $6.27, just shy of $6.33 a share broker consensus, as revenues grew 19.1% to $15.42bn, with analysts expecting $15.58bn.
Computer group IBM also slumped after first-quarter sales fell 4% to $22.5bn, worse than analysts' forecast. This, along with costs associated with its restructuring programme, led to a 21% fall in net profits.
Morgan Stanley rose strongly after earnings jump 63% to $1.46bn, or 74 cents a share, coming in ahead of the 68 cents consensus forecast. Revenues were up 10% at $8.93bn, compared with the $8.49bn estimate.
Goldman Sachs was also making gains as a 11% fall in profits was better than analysts expected. Net income fell to $1.95bn, or $4.02 a share, compared with the $3.45 forecast. Revenues fell 8% to $9.33bn but came in well ahead of the $8.70bn prediction.
Netflix gained as Pacific Crest Securities upgraded the largest online video-subscription service to 'outperform' from 'sector perform', projecting international growth in the next 18 months.
West Texas Intermediate crude futures rose 0.18% to $103.95 per barrel on the NYMEX.
Ten-year Treasury yields gained three basis points to 2.66%. |
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| | Broker Tips | | Broker tips: Imperial Tobacco, Legal & General, GlaxoSmithKline... Goldman Sachs has removed Imperial Tobacco from its 'Conviction List', saying it sees less potential upside from current levels. Nevertheless, the bank kept its 'buy' recommendation and 2,780p target.
Since being added to the Conviction List at the end of January, the stock has gained nearly 14%, while the FTSE World Europe has only risen 1.6% (in GBP terms). "Following recent share price performance, we believe the stock's valuation now better reflects our expectation of improving growth trends over the next two years."
Berenberg has said that Legal & General remains its '"preferred play" in the life insurance sector following the recent major shake-up of the annuity and savings markets in the UK.
Legal & General, rated 'buy', provides an "attractive entry point" given its recent sell-off, Berenberg said, adding that the company is "well placed to meet the ever-changing UK life insurance landscape".
UBS has reduced its target for GlaxoSmithKline from 1,650p to 1,500p, saying that forecasts for earnings growth may continue to prove elusive for the pharmaceutical group.
The bank retained its 'neutral' recommendation, saying that guidance for 2014 "looks increasingly challenging".
Credit Suisse has trimmed its estimates for Burberry and kept a 'neutral' recommendation, saying that profit growth at the high-end luxury firm will "take a break" this year.
"As much as we like Burberry's superior long-term top-line story, we see group margins under pressure in the next two years, which should put a lid on the shares," the bank said.
Investec has reiterated its 'buy' rating and 176p target for iron ore producer Ferrexpo, saying that production results on Thursday should reassure investors.
Analyst Louise Collinge said that the bigger-than-expected drop in cash costs "is clearly a good result and relates to operational efficiencies as well as the weakened Ukraine currency". | | |
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