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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: BHP, Aberdeen lead markets higher ahead of data - BHP Billiton, Aberdeen, Babcock, GKN provide a lift
- Weir falls on Metso merger speculation
- Markets await global manufacturing PMIs
techMARK 2,779.21 +0.53%
FTSE 100 6,621.97 +0.36%
FTSE 250 16,339.39 +0.40%
UK stocks opened with small gains on Tuesday ahead of a data-heavy session with manufacturing indicators due out from across the globe.
Mining giant BHP Billiton, asset manager Aberdeen and engineering groups Babcock and GKN were among the best performers in early trading. Weir, however, was lower on speculation that it could be eyeing up Finnish counterpart Metso.
The FTSE 100 was up 0.4% at 6,622 in the opening hour in London.
Sentiment was helped by a strong performance by US markets on Monday evening after Federal Reserve Chair Janet Yellen pledged continued "extraordinary support" for the US economy. She said there is "considerable slack" in the labour market and that the Fed would continue to support the recovery "for some time to come".
Investors were digesting factory data from China overnight. The government's official manufacturing purchasing managers' index (PMI) increased from 50.2 to 50.3 in March; while HSBC's own manufacturing PMI slipped from 48.1 to 48, more or less in line with market forecasts.
Manufacturing PMIs from the UK, Europe and US will also be released during today's session, along with the unemployment rate in the Eurozone.
BHP gains on de-merger speculation
BHP Billiton, the world's largest mining group, responded to market speculation about a potential de-merger of non-core operations, saying that a "simplification of our portfolio is a priority". Shares rose after the company did not dismiss recent reports that it is considering a $20bn spin-off of its less-profitable assets of aluminium, manganese, thermal coal and nickel.
Aberdeen Asset Management rose despite saying that assets under management declined over the first two months of the year due to weakness in emerging markets.
Babcock rose after it was named preferred bidder on a 21-year contract with the London Fire Brigade. GKN was also higher after buying Williams Hybrid Power which makes flywheel-based energy storage systems for the bus, truck and tram markets.
Scottish engineer Weir, which works in the mining, oil and gas industries, was lower on reports that it could be on the verge of a blockbuster £8.5bn merger with Finnish rival Metso. It is thought that Weir could be prepared to pay as much as €30 per share for the company, giving it a market value of over €4bn (£3.3bn).
Interdealer broker ICAP gained after saying overall results for the year are expected to be in line with current market consensus forecasts, despite the weak global economy, regulatory reforms and low interest rates.
Jupiter Fund Management was in demand after agreeing to dispose of its Private Client & Charities operations, which represent 7% of its £31.7bn assets under management, to Rathbone Brothers.
Consumer staples stocks were among the worst performers this morning with beverage groups Diageo and SABMiller registering losses, along with Coca-Cola bottling firm Coca-Cola HBC and householder products businesses Unilever and Reckitt Benckiser. |
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| FTSE 100 - Risers
Aberdeen Asset Management (ADN) 411.70p +5.48%
Babcock International Group (BAB) 1,388.00p +3.04%
BHP Billiton (BLT) 1,894.50p +2.74%
ARM Holdings (ARM) 1,021.00p +2.30%
Aviva (AV.) 484.10p +1.49%
Rolls-Royce Holdings (RR.) 1,089.00p +1.40%
GKN (GKN) 395.40p +1.31%
CRH (CRH) 1,696.00p +1.25%
Legal & General Group (LGEN) 207.20p +1.22%
easyJet (EZJ) 1,735.00p +1.17%
FTSE 100 - Fallers
Pearson (PSON) 1,036.00p -2.54%
Weir Group (WEIR) 2,496.00p -1.58%
Sainsbury (J) (SBRY) 312.10p -1.27%
Unilever (ULVR) 2,540.00p -0.82%
Tesco (TSCO) 293.05p -0.80%
Diageo (DGE) 1,847.00p -0.75%
Coca-Cola HBC AG (CDI) (CCH) 1,484.00p -0.67%
Reckitt Benckiser Group (RB.) 4,858.00p -0.59%
British American Tobacco (BATS) 3,317.00p -0.55%
Burberry Group (BRBY) 1,391.00p -0.29%
FTSE 250 - Risers
PayPoint (PAY) 1,199.00p +4.72%
Go-Ahead Group (GOG) 1,931.00p +3.65%
Jupiter Fund Management (JUP) 412.80p +2.99%
Essentra (ESNT) 897.00p +2.81%
ICAP (IAP) 388.10p +2.78%
JD Sports Fashion (JD.) 1,639.00p +2.44%
Kentz Corporation Ltd. (KENZ) 770.50p +2.26%
Greencore Group (GNC) 281.40p +2.07%
Entertainment One Limited (ETO) 336.70p +2.03%
Dechra Pharmaceuticals (DPH) 681.50p +2.02%
FTSE 250 - Fallers
Dunelm Group (DNLM) 920.50p -2.64%
FirstGroup (FGP) 143.00p -1.99%
NMC Health (NMC) 496.70p -1.55%
Catlin Group Ltd. (CGL) 530.50p -1.39%
EnQuest (ENQ) 122.50p -1.21%
CSR (CSR) 717.00p -1.17%
St. Modwen Properties (SMP) 395.40p -1.15%
Ocado Group (OCDO) 455.70p -1.06%
Fidessa Group (FDSA) 2,512.00p -0.99% |
| | UK Event Calendar | | Tuesday April 01
INTERIMS
Applied Graphene Materials
QUARTERLY EX-DIVIDEND DATE
Torchmark Corp.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
NBS Manufacturing PMI (China) (08:00)
HSBC Final Manufacturing PMI (China) (09:45)
RBA cash rate (Australia) (11:30)
Auto Sales (US) (15:00)
Construction Spending (US) (15:00)
ISM Manufacturing (US) (15:00)
ISM Prices Paid (US) (15:00)
PMI Manufacturing (EU) (09:00)
PMI Manufacturing (GER) (08:55)
Unemployment Rate (EU) (10:00)
Unemployment Rate (EZ) (09:00)
Unemployment Rate (GER) (08:55)
Bank of Japan Tankan survey (08:50)
Q4
Minera IRL Ltd.
FINALS
Corac Group, London Capital Group Holdings, Vernalis
AGMS
AL Noor Hospitals Group
TRADING ANNOUNCEMENTS
ICAP, Aberdeen Asset Management
UK ECONOMIC ANNOUNCEMENTS
PMI Manufacturing (09:30)
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise after China PMIs, Yellen speech - Chinese manufacturing PMIs released
- Factory data out in UK, Eurozone and US
- Euro-area unemployment figures unveiled
- Yellen delivers dovish speech
FTSE 100: 0.22%
DAX: 0.28%
CAC 40: 0.33%
FTSE MIB: 1.19%
IBEX 35: 0.37%
Stoxx 600: 0.28%
European stocks gained after China's official manufacturing data showed expansion in the sector in March and after dovish remarks from Federal Reserve Chair Janet Yellen.
China's purchasing managers index (PMI) gauge for manufacturing activity rose to 53 last month from 50.2 in February, in line with analysts' expectations. A level above 50 signals expansion.
However, HSBC's private report on Chinese manufacturing PMI fell to 48 from 48.1. Economists had predicted the reading to remain unchanged.
"Taken at face value, today's PMIs appear to offer conflicting messages. In practice however, their divergence provides useful clues into the state of the manufacturing sector, suggesting that large firms have held up better than many feared but that overall activity remains subdued," Capital Economics said.
Mining stocks, which rely on demand from Chinese manufacturers, rallied following the release of the reports.
Another batch of manufacturing data will be released in the UK, Eurozone and the US today.
Other economic data out includes February unemployment rates for the Eurozone, Germany and Italy which are forecast to hold steady.
Yellen
Fed Chair Yellen pledged continued "extraordinary support" for the US economy during a speech at a conference in Chicago yesterday.
Yellen emphasised that there is still significant room for improvement and "considerable slack" in the labour market. She said that the Fed would continue to aid the recovery "for some time to come".
"This commitment is strong, and I believe the Fed's policies will continue to help sustain progress in the job market," she said.
Last month Yellen surprised markets by saying that the Fed will consider raising interest rates about six months after end of quantitative easing but she made no mention of matter yesterday.
Alstom, BHP
Alstom climbed after the French maker of trains and power-generation equipment agreed to sell an auxiliary components unit to Triton for about €730m.
BHP Billiton jumped after saying that it is planning to simplify its operations to focus on iron ore, copper, coal and petroleum.
ICAP advanced as the interbroker dealer forecast full-year profit in line with analysts' estimates, despite a decline in sales at the broking unit.
Metso edged higher after The Times reported Weir Group may be willing to pay as much as €30 a share for the Finnish company.
The euro rose 0.19% to 1.3795.
Brent crude futures fell $0.242 to $107.500 per barrel. |
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| | US Market Report | | US close: Stocks jump on Fed support after Yellen comments - Fed's 'extraordinary support' to continue
- Yellen still sees slack in labour market
- Chicago PMI falls more than expected
- Disney, Viacom rise after film premiers
Dow Jones: 0.83%
Nasdaq: 1.04%
S&P 500: 0.79%
Wall Street stocks finished with strong gains on Monday after Federal Reserve chair Janet Yellen pledged continued "extraordinary support" for the US economy.
The Dow Jones Industrial Average and S&P 500 both finished 0.8% higher, while the Nasdaq jumped 1%.
The three main benchmarks managed to end a choppy quarter on a high note, though the quarterly performance from each index was mixed; the Dow has fallen 0.7% since the start of the year, while the S&P 500 is up 1.3% and the Nasdaq is 0.5% higher.
Markets got off to a strong start on Monday after Yellen emphasised that there is still significant room for improvement and "considerable slack" in the labour market. She said that the Fed would continue to support the recovery "for some time to come".
Speaking at a conference in Chicago, she said: "This commitment is strong, and I believe the Fed's policies will continue to help sustain progress in the job market."
In economic data, the Chicago purchasing managers' index for manufacturing dropped from 59.8 to 55.9 in March, much worse than the consensus forecast for a small dip to 59.5.
Meanwhile, the Dallas Fed manufacturing activity index jumped from 0.3 to 4.9, ahead of the 3.0 estimate.
Investors were beginning to look ahead to a Labor Department report on Friday which is forecast to show that the jobless rate fell to 6.6% in March from 6.7% in February. Non-farm payrolls are expected to rise by 200,000, up from 175,000 the previous month.
Disney, Viacom gain on film launches
Entertainment giant Walt Disney advanced after releasing the sequel to 'Captain America' on Friday. Meanwhile, Viacom gained after its 'Noah' film performed well at the box office this weekend.
Tesla fell despite auto-dealer lobbying groups signing an agreement allowing the electric-car maker to open more stores in New York.
Biogen jumped after its Alprolix drug to treat haemophilia B won approval from the Food and Drug Administration.
General Motors dropped as Chief Executive Mary Barra prepared to testify to Congress tomorrow about the company's vehicle recalls.
A host of oil stocks fell, including Range Resources, Denbury Resources, Halliburton and QEP Resources.
S&P 500 - Risers
Micron Technology Inc. (MU) $23.66 +7.99%
CIGNA Corp. (CI) $83.73 +5.44%
Vertex Pharmaceuticals Inc. (VRTX) $70.72 +4.31%
Sealed Air Corp. (SEE) $32.87 +4.25%
Edwards Lifesciences Corp. (EW) $74.17 +4.23%
Biogen Idec Inc. (BIIB) $305.87 +3.99%
Gilead Sciences Inc. (GILD) $70.86 +3.37%
Delta Airlines Inc. (DAL) $34.65 +3.34%
PG&E Corp. (PCG) $43.20 +3.13%
Alcoa Inc. (AA) $12.87 +3.13%
S&P 500 - Fallers
Range Resources Corp. (RRC) $82.97 -2.65%
Newmont Mining Corp. (NEM) $23.44 -2.01%
Netflix Inc. (NFLX) $352.03 -1.91%
Denbury Resources Inc. (DNR) $16.40 -1.62%
EQT Corp. (EQT) $96.97 -1.58%
Crown Castle International (CCI) $73.78 -1.11%
Safeway Inc. (SWY) $36.94 -0.97%
Halliburton Co. (HAL) $58.89 -0.96%
QEP Resources Inc (QEP) $29.44 -0.91%
Pioneer Natural Resources Co. (PXD) $187.14 -0.91%
Dow Jones I.A - Risers
Visa Inc. (V) $215.86 +1.78%
United Technologies Corp. (UTX) $116.84 +1.77%
Microsoft Corp. (MSFT) $40.99 +1.71%
Merck & Co. Inc. (MRK) $56.77 +1.41%
Walt Disney Co. (DIS) $80.07 +1.37%
Travelers Company Inc. (TRV) $85.10 +1.32%
JP Morgan Chase & Co. (JPM) $60.71 +1.12%
3M Co. (MMM) $135.66 +1.09%
International Business Machines Corp. (IBM) $192.49 +1.07%
Procter & Gamble Co. (PG) $80.60 +1.05%
Dow Jones I.A - Fallers
Coca-Cola Co. (KO) $38.66 -0.74%
American Express Co. (AXP) $90.03 -0.48%
Exxon Mobil Corp. (XOM) $97.68 -0.02%
Caterpillar Inc. (CAT) $99.37 -0.02%
Nasdaq 100 - Risers
Micron Technology Inc. (MU) $23.66 +7.99%
Illumina Inc. (ILMN) $148.66 +4.68%
Vertex Pharmaceuticals Inc. (VRTX) $70.72 +4.31%
Biogen Idec Inc. (BIIB) $305.87 +3.99%
Vimpelcom Ltd Ads (VIP) $9.03 +3.44%
Gilead Sciences Inc. (GILD) $70.86 +3.37%
CH Robinson Worldwide Inc (CHRW) $52.39 +2.95%
Western Digital Corp. (WDC) $91.82 +2.70%
Maxim Integrated Products Inc. (MXIM) $33.12 +2.57%
Amgen Inc. (AMGN) $123.34 +2.31%
Nasdaq 100 - Fallers
Keurig Green Mountain Inc (GMCR) $105.59 -2.29%
Netflix Inc. (NFLX) $352.03 -1.91%
Tesla Motors Inc (TSLA) $208.45 -1.85%
Sba Communications Corp. (SBAC) $90.96 -1.40%
Whole Foods Market Inc. (WFM) $50.71 -0.86%
Ross Stores Inc. (ROST) $71.57 -0.74%
Express Scripts Holding Co (ESRX) $75.09 -0.58%
Amazon.Com Inc. (AMZN) $336.36 -0.57%
Garmin Ltd. (GRMN) $55.26 -0.56%
QUALCOMM Inc. (QCOM) $78.86 -0.53% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: Weir Group, Marks & Spencer, BT Group Engineering group Weir could be on the verge of a blockbuster 8.5bn pound merger with Finnish rival Metso. Like its Scottish rival it manufactures industrial pumps and valves for the global oil and gas mining markets. It is thought that Weir could be prepared to pay as much as 30 euros per share for the company, giving it a market value of over 4bn euros (3.3bn pounds). Market sources say Metso is the kind of firm which Weir would regularly be keeping an eye on as a matter of course but that they have been talking a merger for some time, The Times reports.
Ahead of its results next week analysts at broker Bernstein have published new analysis showing that Marks&Spencer continues to haemorrhage market share quicker than any of its rivals. The company's slice of the market dropped to 11.18% in the six months ended on February 16th in comparison to year-ago levels. Particularly worrying was the loss of popularity with its core 25-55 age group and over-55s. On a more positive note, it made some gains among 12- to 34-year-olds, The Guardian says.
The Public Accounts Committee has issued a damning report into the government's handling of its £1.2bn rural broadband plan, arguing that it failed to deliver sufficient competition in those parts of the country where subsidies were needed to justify upgrading the copper network to fibre-optic cables. That allowed BT to exploit its monopoly position. To back its case up the regulator references the company's lack of transparency on costs and BT's insistence on non-disclosure agreements, The Times writes.
It is usually poor advice to take decisions in a hurry. Yet that is exactly what the National Audit Office has accused Westminster of doing with the flotation of the 500-year old Royal Mail, in the process costing taxpayers £750m in a single day. In a scathing report the watchdog says the business secretary ploughed ahead with the sale despite reiterated warnings from City experts that the firm was being sold on the cheap, according to The Guardian.
Eight banks, Barclays and Royal Bank of Scotland amongst them, have become embroiled in a formal investigation by the Swiss regulator (Weko) for the alleged rigging of the $5.8trn-a-day currency markets by the Swiss competition authorities. In parallel, Deutsche Bank placed its London-based director of institutional foreign exchange sales – Kai Lew – on leave. The other institutions which have come under the regulator's scrutiny are Credit Suisse, UBS, Zürcher Kantonalbank and Julius Baer, according to The Times.
The International Monetary Fund, the Washington-based multilateral lender, warned that Britain's largest banks are still 'too big to fail' while they continue to receive billions in implicit subsidies from taxpayers. Simply put, the Bank of England is still a long way off from being able to allow a bank to fail and not having to rely on another taxpayer bail-out. Overnight, however, Governor Carney said global regulators are aiming to eliminate one of the two remaining barriers to that, The Daily Mail writes. | | |
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