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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 strongly after Fed minutes - FOMC minutes reveal dovish stance
- BoE, economic data in focus today
- M&S, Hays and 888 gain after trading updates
- RBS pays to cancel dividend access share
techMARK 2,751.14 +0.77%
FTSE 100 6,683.98 +0.73%
FTSE 250 16,298.45 +0.83%
UK stocks advanced on Thursday, following a strong performance from US and Asian markets overnight, after minutes from the latest Federal Reserve meeting showed a more dovish stance than expected.
Markets in London were helped by decent gains from the likes of Marks & Spencer, Hays and 888 Holdings after their respective trading updates, and RBS on hopes that the bank can soon resume dividend payments.
The FTSE 100 rose for a second straight day, up 0.8% at 6,684 in early trading.
According to the minutes of the March 18-19th Federal Open Market Committee meeting, policymakers said that the initial rise in interest rates is likely to come later than current forecasts predict. The Fed said several FOMC members thought that the median projection for the federal funds rate in was "overstated".
"The key piece of information that was taken from the minutes was that interest rates are set to stay low for considerable time, put clearly in the minutes in a move to counteract the mistake Janet Yellen made when she put a six-month time frame on the matter at a conference last month," said Sam Fox, Financial Sales Trader at Spreadex.
Markets were largely shrugging off yet more disappointing economic data from China this morning, which showed that both exports and imports unexpectedly slumped last month.
Today will be a busy day in terms of macro events, with a host of industrial production data out in the Eurozone, jobless claims figures from the States and the Bank of England's monetary policy decision.
The UK's Monetary Policy Committee, scheduled to make its announcement at midday, will be closely watched as always though markets do not expect any change in policy, with the Bank Rate likely to remain at 0.5% and the asset purchase programme unchanged at £375bn.
M&S, RBS, Hays and 888 gain
High Street department store Marks & Spencer was higher this morning after stitching together a more encouraging fourth-quarter result, with its troublesome General Merchandise arm reversing its sales decline seen in the preceding quarter. Group sales were up 1.9%, with growth picking up from 1.8% in the third quarter.
Part-nationalised RBS climbed after taking a major step toward its eventual re-privatisation, agreeing to pay £1.5bn to cancel the dividend access share, an agreement that effectively stopped dividend payments to private shareholders. "Today's agreement is a vote of confidence in the progress we have made in rebuilding RBS and in our plan for the bank's future," said Chief Executive Officer (CEO) Ross McEwan in a late statement last night.
Recruitment firm Hays reported a solid increase in quarterly net fee growth, helped by improved conditions across many of its key markets, leading to increased expectations for full-year profits. Sector peer Michael Page International was also in demand following the statement.
Online gaming company 888 Holdings was on the rise after reporting record quarterly revenue with growth across casino, poker and bingo businesses. First-quarter revenue came to $114m, up 11% year-on-year and 7% on the previous three months.
Utilities group Centrica was among the worst performers after Ofgem fined its business arm £5.6m for errors in its switching and renewal processes.
Cairn Energy fell after saying its Deputy CEO Mike Watts, Managing Director and Chief Financial Officer (CFO) Jann Brown are stepping down as executive directors of the company.
Meanwhile, pubs group Greene King edged lower after announcing that CFO Matthew Fearn has taken a temporary leave of absence to undergo urgent medical treatment. |
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| FTSE 100 - Risers
Associated British Foods (ABF) 2,675.00p +2.77%
Shire Plc (SHP) 2,984.00p +2.68%
Fresnillo (FRES) 903.50p +2.21%
Marks & Spencer Group (MKS) 465.70p +2.13%
Royal Bank of Scotland Group (RBS) 316.00p +2.00%
Randgold Resources Ltd. (RRS) 4,715.00p +1.90%
Imperial Tobacco Group (IMT) 2,460.00p +1.82%
Compass Group (CPG) 925.00p +1.70%
Ashtead Group (AHT) 935.50p +1.68%
Hargreaves Lansdown (HL.) 1,362.00p +1.64%
FTSE 100 - Fallers
Royal Mail (RMG) 508.00p -1.36%
G4S (GFS) 246.20p -1.32%
Centrica (CNA) 335.50p -0.62%
SSE (SSE) 1,481.00p -0.34%
Standard Chartered (STAN) 1,323.00p -0.30%
Sports Direct International (SPD) 818.50p -0.30%
Tullow Oil (TLW) 847.50p -0.29%
Sainsbury (J) (SBRY) 311.40p -0.19%
Rolls-Royce Holdings (RR.) 1,068.00p -0.09%
Vodafone Group (VOD) 219.85p -0.07%
FTSE 250 - Risers
Hays (HAS) 154.00p +6.43%
Workspace Group (WKP) 613.00p +3.81%
Evraz (EVR) 85.00p +3.72%
Laird (LRD) 317.50p +3.66%
CSR (CSR) 704.00p +3.53%
African Barrick Gold (ABG) 265.60p +3.47%
RPS Group (RPS) 323.50p +3.45%
WH Smith (SMWH) 1,205.00p +2.99%
Thomas Cook Group (TCG) 182.10p +2.36%
UDG Healthcare Public Limited Company (UDG) 361.20p +2.32%
FTSE 250 - Fallers
Oxford Instruments (OXIG) 1,393.00p -2.66%
Computacenter (CCC) 663.50p -1.63%
Vedanta Resources (VED) 928.50p -0.91%
Daejan Holdings (DJAN) 4,794.00p -0.91%
Telecom Plus (TEP) 1,660.00p -0.90%
Cairn Energy (CNE) 168.60p -0.77%
ITE Group (ITE) 198.30p -0.65%
Just Retirement Group (JRG) 149.20p -0.53%
Bankers Inv Trust (BNKR) 565.00p -0.53% |
| | UK Event Calendar | | Thursday April 10
INTERIMS
WH Smith
INTERIM DIVIDEND PAYMENT DATE
Wilmington Group
QUARTERLY PAYMENT DATE
GlaxoSmithKline, XP Power Ltd. (DI)
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Trade Statistics (China)
New loans (China) (10-15 April)
M2 (China) (10-15 April)
Industrial production (FR) (07:45)
Consumer Price Index (FR) (07:45)
Industrial production (IT) (09:00)
Bloomberg Consumer Confidence (US) (14:45)
Continuing Claims (US) (13:30)
ECB Interest Rate (EU) (12:45)
ECB Monthly Bulletin (EU) (09:00)
Import and Export Price Indexes (US) (13:30)
Initial Jobless Claims (US) (13:30)
Treasury Budget Statement (US) (19:00)
Speech President Chicago Fed (11:30)
FINALS
Air Partner, Oxford Biomedica, Straight, Marks&Spencer
ANNUAL REPORT
Stock Spirits Group
IMSS
Ashmore Group, Hays, PZ Cussons, Mothercare, 888 Holdings
AGMS
Advance Developing Markets Fund Ltd., BP, Orange Polska S.A. GDR (Reg S), Primary Health Properties, Smith & Nephew
PRODUCTION RESULTS
Vedanta Resources
TRADING ANNOUNCEMENTS
Mothercare, Oxford Instruments
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Decision (12:00)
RICS Housing Market Survey (09:30)
Speech BoE's Andy Haldane (21:45 BST)
FINAL DIVIDEND PAYMENT DATE
Rio Tinto, Shore Capital Group Ltd.
FINAL EX-DIVIDEND DATE
First Quantum Minerals Ltd.
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise on dovish Fed minutes - Fed minutes reveal dovish outlook
- BoE to announce interest rate decision
- French industrial and factory data released
- Greece to sell five-year bonds
FTSE 100: 0.70%
DAX: 0.69%
CAC 40: 0.45%
FTSE MIB: 0.47%
IBEX 35: 0.16%
Stoxx 600: 0.48%
European stocks gained after minutes from the Federal Reserve's last policy meeting revealed a positive outlook among policymakers.
The US central bank in March reduced the monthly pace of purchases by $10bn to $55bn, and said it is likely to continue tapering.
"Members agreed that there was sufficient underlying strength in the broader economy to support ongoing improvement in labor-market conditions," minutes of the March 18-19th meeting revealed.
The minutes also showed that the Fed played down the predictions by policymakers that interest rates might rise faster than previously forecast.
Fed Chair Janet Yellen said in a press conference following last month's meeting that interest rates might be raised about six months after the central bank ends quantitative easing.
On today's agenda in the US will be a report on initial jobless claims and the Monthly Budget Statement.
BoE interest rates, French data
The Bank of England (BoE) releases its latest policy decision today and is expected to leave interest rates at 0.5% and asset purchase at £375bn.
In France, industrial output fell 0.8% year-on-year in February following a 0.2% increase a month earlier, missing expectations for a 0.3% drop.
Manufacturing production in France climbed 1.2% in February, compared to a 1.6% gain in January, beating analysts' forecasts for a 1% rise.
Greek bond sale
European government bonds rose as Greece prepares to return to debt markets with a €2.5bn sale of five-year notes via banks today.
Italian and Spanish bonds increased, while Greek 10-year yields were below 6% for a second day.
It marks Greece's first long-term debt sale since its international bailout four years ago. In April 2010, Greece received two bailouts, including loans of €240bn.
The country's economic output has shrunk by a quarter and unemployment remains close to 28%.
RBS, M&S, Louis Vuitton
Royal Bank of Scotland Group advanced after reaching an agreement to end the UK Treasury's dividend access share.
Marks and Spencer Group was higher after reporting that fourth-quarter non-food sales fell less than estimated.
LVMH Moet Hennessy Louis Vuitton climbed after posting the fastest growth in fashion and leather-goods sales in two years.
The euro rose 0.02% to $1.3858.
Brent crude futures fell $0.269 to $107.690 per barrel, according to the ICE. |
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| | US Market Report | | US close: Stocks surge after Fed minutes, Alcoa kicks off earnings season - Fed minutes reveal dovish stance
- Indices bounce back after recent falls
- Alcoa kicks off earnings season positively
- Internet, biotech stocks rebound
Dow Jones: 1.11%
Nasdaq: 1.72%
S&P 500: 1.09%
US stocks jumped on Wednesday, extending gains towards the end of trade, after minutes from the latest Federal Reserve meeting revealed a more dovish stance among policymakers than expected.
"The minutes were enough to see US equities continue their rebound from this week's earlier sell-off, with the rationale for the rebound being that they make any rise in rates further away than had been feared," said Michael Hewson, Chief Market Analyst at CMC Markets.
Sentiment was also helped by aluminium producer Alcoa, which unofficially kicked off first-quarter US earnings season by impressing investors.
The Dow Jones Industrial Average and S&P 500 both finished 1.1% higher while the tech-heavy Nasdaq, which has bore the brunt of the selling pressure over the last week or so, surged 1.7%, helped by decent gains from Facebook
Nomura strategist Bobo Janjuah said he sees the S&P 500 rising to as high as 1,950 "so risk-on I guess for another month or so". In an interview with CNBC, Janjuah said he expects the benchmark index to jump 5% over the next month but warned that a sharp drop is still looming after that.
According to the minutes of the March 18-19th Federal Open Market Committee meeting, policymakers said that the initial rise in interest rates is likely to come after current forecasts predict.
The minutes said: "A number of participants noted the overall upward shift since December in participants' projections of the federal funds rate included in the March [Summary of Economic Projections], with some expressing concern that this component of the SEP could be misconstrued as indicating a move by the Committee to a less accommodative reaction function.
"However, several participants noted that the increase in the median projection overstated the shift in the projections."
Alcoa
Alcoa's shares jumped after the company posted quarterly profits that beat expectations, though revenues came in a little light. The company maintained its prediction that global demand for aluminium will recover in sectors such as automotive, building and construction, while the commercial transportation market will be steady.
In particular, Alcoa has raised its forecast for growth this year in the global aerospace market to between 8% and 9%, from between 7% to 8% previously.
Banking heavyweights JPMorgan and Wells Fargo ended with small gains ahead of their quarterly results on Friday.
The share price of social media giant Facebook rose over 7% to $62.41, registering its largest one-day gain since the end of January. The stock has now gained 10% over the past three days, after having fallen sharply from its record high of $72.03 a month ago.
Other internet stocks such as Twitter, LinkedIn and Yahoo! also climbed.
Meanwhile, biotech names were in demand today, recovering after their recent sell-off with Regeneron and Merck leading the risers.
S&P 500 - Risers
Facebook Inc. (FB) $62.41 +7.25%
Vertex Pharmaceuticals Inc. (VRTX) $69.96 +7.11%
Regeneron Pharmaceuticals Inc. (REGN) $306.26 +6.92%
Celgene Corp. (CELG) $147.32 +6.58%
E*TRADE Financial Corp. (ETFC) $21.18 +6.01%
Actavis plc (ACT) $201.86 +5.64%
Alexion Pharmaceuticals Inc. (ALXN) $155.86 +5.55%
Biogen Idec Inc. (BIIB) $300.68 +5.16%
Boston Scientific Corp. (BSX) $13.54 +4.88%
Monster Beverage Corp (MNST) $68.89 +4.62%
S&P 500 - Fallers
Intuitive Surgical Inc. (ISRG) $456.64 -6.78%
Diamond Offshore Drilling Inc. (DO) $47.69 -4.16%
Hershey Foods Corp. (HSY) $98.91 -2.76%
Sears Holdings Corp. (SHLD) $35.97 -2.76%
Transocean Ltd. (RIG) $40.89 -2.71%
Lorillard Inc. (LO) $52.28 -2.63%
Noble Corporation plc (NE) $30.55 -2.33%
Kraft Foods Group, Inc. (KRFT) $56.21 -2.14%
Cliffs Natural Resources Inc. (CLF) $20.43 -2.11%
Electronic Arts Inc. (EA) $28.16 -1.98%
Dow Jones I.A - Risers
Merck & Co. Inc. (MRK) $57.10 +3.74%
American Express Co. (AXP) $88.72 +2.58%
Visa Inc. (V) $207.54 +2.44%
Boeing Co. (BA) $126.88 +2.20%
International Business Machines Corp. (IBM) $196.64 +1.73%
Microsoft Corp. (MSFT) $40.47 +1.63%
Travelers Company Inc. (TRV) $85.82 +1.29%
Pfizer Inc. (PFE) $31.23 +1.17%
Walt Disney Co. (DIS) $80.47 +1.13%
Chevron Corp. (CVX) $119.10 +1.10%
Dow Jones I.A - Fallers
AT&T Inc. (T) $34.92 -0.99%
Verizon Communications Inc. (VZ) $47.98 -0.48%
Wal-Mart Stores Inc. (WMT) $77.97 -0.27%
Exxon Mobil Corp. (XOM) $97.33 -0.12%
Nasdaq 100 - Risers
Facebook Inc. (FB) $62.41 +7.25%
Vertex Pharmaceuticals Inc. (VRTX) $69.96 +7.11%
Regeneron Pharmaceuticals Inc. (REGN) $306.26 +6.92%
Celgene Corp. (CELG) $147.32 +6.58%
Alexion Pharmaceuticals Inc. (ALXN) $155.86 +5.55%
Biogen Idec Inc. (BIIB) $300.68 +5.16%
Monster Beverage Corp (MNST) $68.89 +4.62%
Baidu Inc. (BIDU) $157.68 +4.45%
Priceline Group Inc (PCLN) $1,234.63 +3.97%
Avago Technologies Ltd. (AVGO) $62.47 +3.82%
Nasdaq 100 - Fallers
Intuitive Surgical Inc. (ISRG) $456.64 -6.78%
Kraft Foods Group, Inc. (KRFT) $56.21 -2.14%
Vimpelcom Ltd Ads (VIP) $8.42 -0.59%
DIRECTV (DTV) $78.36 -0.52%
Stericycle Inc. (SRCL) $113.31 -0.50%
Equinix Inc. (EQIX) $176.82 -0.37%
Ross Stores Inc. (ROST) $71.44 -0.29%
CA Inc. (CA) $31.27 -0.29%
Mattel Inc. (MAT) $38.47 -0.26%
Paychex Inc. (PAYX) $41.24 -0.15% |
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| | Newspaper Round Up | | Thursday newspaper round-up: RBS, Co-op, Annuities Royal Bank of Scotland secured a landmark deal with the European Union last night which paves the way for it to eventually begin repaying dividends to shareholders. Under the EU ruling, RBS will pay the UK government £320 million in the next 45 days and the remaining £1.18 billion over a period of time, allowing the Treasury's golden share to beretired. - The Scotsman
The future of the Co-operative Group was thrown further into confusion last night after one of its most senior board members resigned. The departure of Lord Myners, the former City minister, from the mutual organisation comes after days of heavy criticism over his plans for reform. Midcounties, Britain's largest independent co-operative society, voted unanimously this week not to support the changes. – The Times
The first hard evidence has emerged that sales of annuities have slumped in the three weeks since George Osborne announced his seismic reform to pensions. Just Retirement, a specialist annuity provider, reported that the shock Budget measure "has had a material effect on individually underwritten annuity volumes" and warned that it would not meet the sales growth target of 7% for its full year that had been flagged in February. – The Times
The Eurozone debt crisis is deepening and threatens to re-erupt on a larger scale when the liquidity cycle turns, a leading panel of economists warned in a clash of views with German officials in Berlin. "Debts above 130% of GDP for Italy and 170% for Greece are a recipe for disaster once we go into the next downturn," said Professor Charles Wyplosz, from Geneva University. - The Daily Telegraph
Britain's property market recorded the highest level of sales in more six years over the first three months of this year – but the surge came with a health warning from the Royal Institution of Chartered Surveyors (Rics). Surveyors sold an average of 22.7 homes each in the three months to March – the highest number since February 2008 – with strength in the market spread throughout the UK, according to the Rics. – The Guardian | | |
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