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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: FTSE ends day in red as Sports Direct drags - FTSE closes 32.15 points lower at 6,590.69
- Feb UK industrial production trounces forecasts
- Tensions rise in Ukraine
- Big Four see market share slip as discount stores increase sales
techMARK 2,697.56 -1.19%
FTSE 100 6,590.69 -0.49%
FTSE 250 16,014.46 -1.53%
UK stocks once again finished in the red, dragged by insurers and financials, while Sports Direct also weighed particularly heavily.
The FTSE 100 ended the session 32.15 points lower at 6,590.69, easing off earlier declines which saw the index drop below 6,560.
Increased tensions in Ukraine also weighed on sentiment, after the country launched military operation in into its eastern regions and arrested approximately 70 separatists who had seized government buildings in Donetsk, Luhansk and Kharkiv this week.
Russia today warned Ukraine that any use of force in the eastern regions could lead to a civil war.
The US has accused Russia of initiating the raids and said there is evidence that some protesters may be paid provocateurs.
Tensions remain high after Russia annexed Crimea from Ukraine last month.
Elsewhere around the globe, Japan and Australia are set to sign an historic trade deal to reduce the tariffs imposed on a number of products, following seven years of negotiations. The pair are due to sign the pact when Japanese Prime Minister Shinzo Abe visits Australia later in the year.
UK industrial production trounces forecasts in February
Back in the UK, industrial production grew by 0.9% in February according to the Office for National Statistics (ONS) and by another 2.7% year-on-year.
The consensus estimate had been for a rise of 0.3% month-on-month (2.2% year-on-year).
Meanwhile, Britain's biggest banks have so far paid around £600m for mis-selling interest rate hedging products, according to the UK's Financial Conduct Authority (FCA).
In other UK news, full-time wages are rising at their fastest for seven years but a skills shortage and immigration restrictions could hold back an economic revival, a report out today said.
Starting salaries for people in permanent jobs increased at their sharpest rate since July 2007, according to a survey from accountancy firm KPMG and the Recruitment & Employment Confederation (REC).
Big Four see market share slip as discount stores increase sales
The so-called 'Big Four' supermarkets have suffered a further reduction in their market share as the likes of Aldi and Lidl continue to deliver strong growth, data revealed Tuesday.
According to research carried out by Kantar Worldpanel, in the 12 weeks ended March 30th, German discount store Aldi grew its market share to 4.6%, its highest level to-date after it saw growth of 35.3%. Its peer Lidl was close behind with 3.4% of the market.
In other company news out today, sporting goods retailer Sports Direct sunk sharply after it was reported that Founder Mike Ashley is selling £200m-worth of shares, taking his stake from 62% to 58%.
Goldman Sachs said it will place up to 24m shares acquired from MASH Holdings, Ashley's investment vehicle, with institutional investors. The stock is being placed at 850-870p a share, compared with last night's closing price of 893.5p.
Both Insurance and Financial stocks moved lower, with the former growing cautious ahead of the earnings season and also after the industry called on its regulator, the Financial Conduct Authority, to conduct an inquiry into the recent publication of its plans to review part of the industry in a newspaper.
Barclays was lower after reaching a settlement with a UK care operator over claims the bank mis-sold products linked to benchmark interest rates. Sector peer Lloyds Banking Group was also a notable faller. |
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FTSE 100 - Risers
Standard Chartered (STAN) 1,290.50p +2.83%
Unilever (ULVR) 2,606.00p +2.72%
Rio Tinto (RIO) 3,426.50p +2.48%
Tullow Oil (TLW) 819.50p +2.44%
Antofagasta (ANTO) 870.50p +2.23%
British American Tobacco (BATS) 3,390.00p +1.85%
Randgold Resources Ltd. (RRS) 4,757.00p +1.75%
Tesco (TSCO) 287.85p +1.61%
Fresnillo (FRES) 905.00p +1.57%
Anglo American (AAL) 1,577.00p +1.48%
FTSE 100 - Fallers
Sports Direct International (SPD) 811.00p -9.23%
Ashtead Group (AHT) 901.00p -5.41%
St James's Place (STJ) 773.00p -5.21%
Associated British Foods (ABF) 2,645.00p -3.92%
Mondi (MNDI) 1,007.00p -3.82%
Resolution Ltd. (RSL) 277.00p -3.75%
Hargreaves Lansdown (HL.) 1,315.00p -3.66%
BT Group (BT.A) 361.90p -3.49%
International Consolidated Airlines Group SA (CDI) (IAG) 416.00p -3.28%
Next (NXT) 6,410.00p -3.10%
FTSE 250 - Risers
Evraz (EVR) 78.95p +4.29%
Computacenter (CCC) 649.50p +2.69%
Tullett Prebon (TLPR) 302.50p +2.58%
Betfair Group (BET) 1,051.00p +2.34%
Ashmore Group (ASHM) 348.00p +1.84%
Rotork (ROR) 2,680.00p +1.82%
NMC Health (NMC) 519.00p +1.57%
Polymetal International (POLY) 634.00p +1.52%
Lancashire Holdings Limited (LRE) 687.50p +1.40%
Templeton Emerging Markets Inv Trust (TEM) 549.00p +1.29%
FTSE 250 - Fallers
Hikma Pharmaceuticals (HIK) 1,512.00p -9.13%
Entertainment One Limited (ETO) 306.20p -7.21%
Synthomer (SYNT) 271.60p -6.86%
Henderson Group (HGG) 251.40p -6.23%
Ocado Group (OCDO) 396.20p -6.11%
WH Smith (SMWH) 1,139.00p -5.79%
Worldwide Healthcare Trust (WWH) 1,229.00p -5.10%
Crest Nicholson Holdings (CRST) 380.00p -5.00%
SIG (SHI) 201.60p -4.91%
Keller Group (KLR) 1,042.00p -4.84% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks fall on Ukraine concerns - Ukraine tensions increase
- IMF raises global growth forecast
- UK industrial output rises
- Goldman lowers euro/dollar estimates
FTSE 100: -0.49%
DAX: -0.21%
CAC 40: -0.25%
FTSE MIB: -1.46%
IBEX 35: -1.19%
Stoxx 600: -0.33%
European stocks dropped as the fears over the Ukraine crisis grew after the nation sent forces into its eastern regions.
Ukraine launched a military operation against separatists that had seized government buildings in Donetsk, Luhansk and Kharkiv earlier this week.
The move prompted a warning from Russia that the use of force by Ukraine in the eastern regions could lead to a civil war.
The US has accused Russia of instigating the raids and said there is evidence that some protesters may be paid provocateurs.
IMF raises global growth forecast
The International Monetary Fund (IMF) said the expects global growth of 3.6% this year and 3.9% in 2015, driven by advanced economies such as the US.
In the World Economic Outlook, the IMF also painted a bright picture for Europe.
The IMF said it now expects growth in the euro area of 1.2% in 2014 and 1.5% in 2015, up from a January estimate of 1% and 1.4%, respectively.
Goldman lowers euro/dollar forecast
Goldman Sachs has lowered its forecast for the euro/dollar to $1.38, $1.34, $1.30 for three, six and 12 months' time, respectively, from a previous estimate of $1.38, $1.40, $1.40.
The bank based its estimate on the fact that it sees no urgency from the European Central Bank (ECB) to ease monetary policy in the near term. Goldman also noted that US data is yet to "rebound convincingly".
The euro rose 0.41% to $1.3799.
In other economic news, UK industrial production grew by 0.9% on the month in February and by 2.7% year-on-year, according to the Office for National Statistics.
The consensus estimate had been for a rise of 0.3% month-on-month and 2.2% year-on-year.
Cie. de Saint-Gobain, Suedzucker
Cie. de Saint-Gobain dropped after Groupama sold its entire 1.8% stake in Europe's biggest supplier of building materials for €450m.
Suedzucker declined as the maker of sugar, starch and bakery additives projected full-year revenue of about €7bn, below analysts' estimates of €7.5bn.
Nokia Oyj gained after receiving China's approval for the sale of its handsets business to Microsoft Corp.
Sports Direct International slid after the Financial Times reported that founder Mike Ashley was selling a 4% stake.
Resolution slipped as Bank of America Corp.'s Merrill Lynch unit downgraded the insurance-buyout company to 'underperform' from 'neutral'.
Brent crude futures advanced $0.395 to $106.240 per barrel, according to the ICE. |
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| | US Market Report | | US open: Stocks mixed after recent sell-off, earnings season in focus - Dow falls, S&P 500 and Nasdaq rise
- Alcoa in focus ahead of Q1 earnings later on
- Ukraine concerns dampen sentiment
- IMF cuts global growth forecast
Dow Jones: -0.04%
Nasdaq: 0.36%
S&P 500: 0.11%
US stocks were trading in a mixed fashion on Tuesday morning after a three-day losing streak, fluctuating between gains and losses ahead of the start of the first-quarter earnings season.
The Dow Jones Industrial Average was down 0.04% after the opening bell, the S&P 500 rose 0.11%, but the Nasdaq was 0.4% higher, rebounding after the tech-heavy index's worst three-day skid since November 2011.
High-growth 'momentum' stocks have been under heavy selling pressure over recent days as investors rotated out of names that have performed the best in the bull market on concerns that valuations are too expensive.
Aluminium producer Alcoa is set to unofficially kick off earnings season after the closing bell this evening. Bed, Bath & Beyond will report its results on Wednesday while earnings from banking heavyweights JPMorgan Chase & Co and Wells Fargo & Co are due out on Friday.
According to Thomson Reuters, average earnings on the S&P 500 are expected to have risen by an annual rate of just 1.1% in the first quarter, compared with the average forecast for 6.5% growth at the start of the year. This is thought to be mainly attributable to the severe winter weather across the US at the beginning of the quarter.
Tuesday is set to be a quiet day in New York in terms of economic data, although speeches from a few Federal Reserve officials will be in focus later on.
Heightened tensions in Ukraine were a concern for global financial markets today after pro-Moscow protesters stormed government buildings and called for their own referendum on independence. Ukraine's government has accused Russia of instigating the protests, while a White House spokesman said that "outside forces, not local forces, were participating on the effort to create these provocations".
Investors were also digesting comments today from the International Monetary Fund (IMF) which released its World Economic Outlook, saying the global economic recovery "has broadly strengthened". The IMF trimmed its global growth forecast from 3.7% to 3.6% for 2014, but said that developed economies such as the US and UK were making up for weaker recoveries in emerging markets such as Brazil and Russia.
Eli Lilly, Nordic American Tankers
Eli Lilly & Co slumped as the federal-court jury found that the group, together with Takeda Pharmaceutical hid the cancer risks of their Actos diabetes medicine.
Nordic American Tankers retreated as the ship owner said it is offering 10m shares in a public offering to finance the potential acquisition of as many as four vessels.
Gigamon dropped after the company cut its first-quarter preliminary revenue forecast to below analysts' projections.
West Texas Intermediate crude futures for May delivery were 0.6% higher at $101.07 a barrel.
The yield on a benchmark US 10-year Treasury was up one basis point at 2.71%. |
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| | Broker Tips | | Broker tips: UK grocers, Whitbread, Synthomer... The outlook for profits across the UK grocery sector is 'highly constrained', according to Shore Capital, which has raised concerns about rising pricing contagion. The broker retained its 'sell' ratings for supermarket rivals Tesco and WM Morrison and online grocer Ocado.
"We have harboured growing concerns about the scope for price cutting to gain ground in recent months, so potentially debilitating supermarkets' gross margins in what are demonstrably weak markets in terms of demand in the UK," said analysts Clive Black and Darren Shirley.
Costa, Premier Inn and restaurant owner Whitbread should be a 'buy' ahead of its full-year results, according to Galvan Research and Trading.
"Costa in particular is benefitting from the UK's apparently insatiable appetite for coffee shops, and with a clear strategy for growth providing plenty of visibility, Galvan Research believe that the current dip in the share price warrants an investor-alert call to pick the stock up in the run up to the full-year results at the end of the month."
Chemicals business Synthomer was trading firmly lower on Tuesday morning after JPMorgan Cazenove downgraded its rating on the stock from 'neutral' to 'underweight' after an "impressive" run over the last 12 months.
"We believe a combination of increasing competition, pricing pressure, heavy emerging market exposure and currencies will lead to downgrades in 2014," JPMorgan said.
UBS has lowered its recommendation for pharmaceuticals group Hikma from 'buy' to 'neutral' on valuation grounds, saying that it is "time to take a pause and breathe" after the stock's recent performance.
"As the stock trades near our price target [1,700p] and as we see no reason in the short-term to increase our expectations, we feel the stock could be range bound and therefore downgrade to 'neutral'," the bank said.
Investec has retained its 'sell' rating for South Africa platinum group metals (PGM) producer Lonmin and cut its target from 278p to 258p, saying that ongoing strikes at the company's mines continue to undermine value.
The broker said that it assumes the loss of a whole quarter of output for Lonmin and now expects the company to produce 614,000 ounces, down from a previous forecast of 786,000. It also said that the company could incur a $180m exceptional charge. However, it admitted that quantifying the strike's impact is "challenging with no end in sight". | | |
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