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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: Tech stocks drag UK markets lower after Nasdaq sell-off - US, Asian weakness flows into UK stocks
- Tech stocks hit hard in early trading
- Supermarkets edge higher early on
techMARK 2,679.00 -1.49%
FTSE 100 6,594.42 -0.72%
FTSE 250 15,946.60 -1.25%
There were just a handful of risers on the FTSE 100 on Friday morning as stocks dropped sharply, tracking a dramatic sell-off on US and Asian equity indices overnight.
The FTSE 100 was 0.7% lower at 6,594 in early trading.
Following the trend seen on Wall Street last night where the Nasdaq dropped 3.1%, technology, software and internet stocks were among the worst performers in London this morning, along with investment trusts focused on those sectors.
The Nasdaq actually suffered its worst single-day percentage loss since late 2011 and fell to its lowest level since early February as investors continued to dump stocks that have performed well in recent months, raising concerns with steep valuations.
"It would appear the sell-off in high-growth stocks is far from over," said Market Analyst Craig Erlam from Alpari, commenting on the falls on US markets on Thursday.
"To be honest, it's probably about time that investors got realistic about the valuations of certain stocks. To some extent, current valuations had priced in either looser monetary policy from some major central banks than is being seen or a superior economic performance," he said.
There are few high-impact data releases scheduled for Friday's session, though the producer price index readings and University of Michigan confidence figures will be in focus for US markets later on.
The latest quarterly results from JP Morgan and Wells Fargo, due out this afternoon, are also keenly awaited by investors.
There are also worries that the US corporate results season will be rather poor. In that same vein, UBS said today that there is a 'dark side' to the anticipated 'boom' in capital expenditures in the US. "It impacts the cost structure of companies, hence margins, as well as cash flow."
Tech stocks provide a drag
Chip groups ARM Holdings and Imagination Technologies were among the worst performing stocks on the FTSE 350 early on, with sentiment dampened by the Nasdaq sell-off in the US on Thursday evening. Software firm Sage Group was also under the weather, along with online fashion retailer N Brown.
Global technology investment trust Polar Capital Technology Trust was also a heavy faller today, along with biotech-focused Worldwide Healthcare Trust and tech-focused Herald Investment Trust.
Supermarket stocks were leading the upside on the FTSE 100 as cyclicals hold up well amid the wider market weakness. Tesco inched higher on reports that it is planning on launching a High Street takeaway chain to be focused on the London market. WM Morrison and Sainsbury were also higher.
The retail sector was also focusing on results out from sector stalwart John Lewis Partnership which reported 15.7% sales growth in the week ended April 5th, with its upmarket grocery division Waitrose delivering growth of nearly 20%.
Mobile telecoms group Vodafone fell after saying it has taken full ownership of its Indian arm Vodafone India in two deals costing a total of £1bn. Vodafone said it had bought the remaining 10.97% of Vodafone India Limited (VIL) from Piramal Enterprises.
JP Morgan has raised its price target on Fresnillo to 1,030p from 965p, though the stock was slightly lower this morning. |
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| FTSE 100 - Risers
Morrison (Wm) Supermarkets (MRW) 200.20p +1.47%
Sainsbury (J) (SBRY) 311.30p +0.55%
Centrica (CNA) 335.10p +0.42%
HSBC Holdings (HSBA) 621.30p +0.42%
Resolution Ltd. (RSL) 278.40p +0.40%
BT Group (BT.A) 361.30p +0.39%
Tesco (TSCO) 284.20p +0.05%
FTSE 100 - Fallers
Ashtead Group (AHT) 895.00p -3.09%
ARM Holdings (ARM) 973.50p -3.04%
Barratt Developments (BDEV) 384.20p -2.78%
Sage Group (SGE) 388.80p -2.56%
Persimmon (PSN) 1,308.00p -2.53%
Weir Group (WEIR) 2,504.00p -2.45%
Hargreaves Lansdown (HL.) 1,293.00p -2.34%
Rolls-Royce Holdings (RR.) 1,037.00p -2.17%
Aggreko (AGK) 1,500.00p -2.15%
Johnson Matthey (JMAT) 3,167.00p -2.07%
FTSE 250 - Risers
esure Group (ESUR) 247.80p +1.18%
Euromoney Institutional Investor (ERM) 1,209.00p +0.92%
KCOM Group (KCOM) 100.10p +0.60%
Hansteen Holdings (HSTN) 109.70p +0.46%
Genus (GNS) 943.50p +0.37%
BH Macro Ltd. EUR Shares (BHME) € 19.10 +0.32%
Phoenix Group Holdings (DI) (PHNX) 639.00p +0.31%
PayPoint (PAY) 1,154.00p +0.17%
F&C Asset (FCAM) 119.60p +0.17%
Barr (A.G.) (BAG) 626.00p +0.16%
FTSE 250 - Fallers
Imagination Technologies Group (IMG) 202.60p -4.48%
Polar Capital Technology Trust (PCT) 434.20p -4.15%
Worldwide Healthcare Trust (WWH) 1,220.00p -4.09%
Pace (PIC) 418.20p -3.99%
Carphone Warehouse Group (CPW) 316.30p -3.66%
Laird (LRD) 294.10p -3.57%
Supergroup (SGP) 1,478.00p -3.34%
Countrywide (CWD) 619.50p -3.20%
Petra Diamonds Ltd.(DI) (PDL) 146.60p -3.11% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks fall after German inflation data - German inflation in line with forecasts
- Spanish consumer prices fall
- US consumer confidence data due
FTSE 100: -0.72%
DAX: 0.87%
CAC 40: -0.79%
FTSE MIB: -0.50%
IBEX 35: -0.42%
Stoxx 600: -0.81%
European stocks declined as German inflation in March reached the lowest point in almost four years.
In European harmonised terms, German prices rose by 0.9% year-on-year last month, the first time it has dropped under 1% in June 2010. On the month, prices increased 0.3%.
Although the figures were in line with forecasts, the report adds pressure on the European Central Bank (ECB) to tackle falling inflation.
The ECB, which is targeting inflation of just below 2%, is expected to ease policy in June, according to a Bloomberg survey of economists yesterday.
Spain's consumer prices decreased for the first time in five months in March but came in better than previously expected, according to final data.
Consumer prices fell 0.1% year-on-year, compared to the initial estimate of a 0.2% decline. Prices rose by 0.2% month-on-month during after staying flat a month earlier.
In the US later in the session, the University of Michigan will release its preliminary reading of the consumer sentiment index which is expected to rise to 81 in April from 80 in March.
The data comes after the Federal Reserve released minutes from its March 18-19th policy meeting, which revealed a positive outlook on the economy.
Bauer, Salzgitter
Bauer AG slumped after the construction group posted a 2013 net loss of €19.4m, compared with a profit of €25.8m year earlier.
German steelmaker Salzgitter AG rallied after Citigroup upgraded the shares to 'buy' from 'neutral', citing construction-related demand in Europe.
Thales retreated after JPMorgan Chase downgraded the French defence-electronics maker to 'neutral' from 'overweight' following weaker-than-expected forecasts for sales and cost reduction through 2017-18.
Givaudan edged lower as comparable sales at its flavour division rose 5.8% in the first quarter, missing the 6.5% increase estimated by analysts.
Mediaset Espana was suspended for the first hour of trading as Credit Suisse Group AG said it is selling a 3.7% stake in the Spanish media company on behalf of Promotora de Informaciones SA.
The euro rose 0.07% to $1.3896.
Brent crude futures fell $0.158 to $107.290 per barrel, according to the ICE. |
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| | US Market Report | | US close: Sell-off resumes as Nasdaq drops 3.1 per cent - Nasdaq falls to lowest since early February
- Tech stocks sold off
- Volatility index up 15 per cent
- Jobless claims fall to seven-year low
Dow Jones: -1.62%
Nasdaq: -3.10%
S&P 500: -2.09%
Selling pressure intensified on Thursday afternoon on Wall Street, leading to the worst one-day percentage loss for the Nasdaq Composite index since late 2011 as investors continued to dump stocks that have performed well in recent months.
Gains made earlier in the week on US markets were completely erased as the Nasdaq fell 3.1% to 4,054, its lowest close since early February. Meanwhile, the Dow Jones Industrial Average dropped 1.6% and the S&P 500 declined by 2.1%.
The CBOE Volatility Index surged by 15% during the session.
"It would appear the sell-off in high-growth stocks is far from over," said Market Analyst Craig Erlam from Alpari.
"To be honest, it's probably about time that investors got realistic about the valuations of certain stocks. To some extent, current valuations had priced in either looser monetary policy from some major central banks than is being seen or a superior economic performance," he said.
Markets were largely shrugging off an upbeat jobless claims figure, which fell to its lowest level in seven years last week. Initial claims for unemployment benefits dropped to 300,000 in the week ended April 5th, down from the previous week's revised 332,000 and well below the forecast of 320,000.
"Overall, these data point to a labour market that is picking up steam along with activity as the weather normalises in the spring," said Analyst Dean Maki from Barclays.
US markets had surged on Wednesday after the Federal Reserve released minutes of its March 18-19th meeting, in which policymakers played down the predictions 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. However, some policymakers at the meeting said that the initial rise in interest rates is likely to come later than current forecasts predict, given that the median projection for the federal funds rate was "overstated".
Bed, Bath & Beyond, tech stocks
Bed Bath & Beyond was a heavy faller today after broadly in-line fourth-quarter results were overshadowed by disappointing guidance for the current quarter. The homeward retailer said it expects to earn 92-96 cents in its fiscal first quarter, below the consensus forecast of 102 cents.
Internet and software stocks were among the worst performers on Thursday, providing a drag on the tech-heavy Nasdaq with Facebook, Yahoo! and TripAdvisor falling sharply. Just one stock on the Nasdaq, logistics group CH Robinson Worldwide, finished in positive territory.
Meanwhile, Imperva Inc. slumped after the tech company posted a loss that was wider than analysts had projected.
Rite Aid Corp climbed after the drug store retailer forecast full-year sales that exceeded estimates.
Meanwhile, warehouse retailer Costco Wholesale gained after saying that comparable sales in March rose a better-than-expected 5%.
S&P 500 - Risers
Windstream Holdings Inc (WIN) $8.72 +2.11%
CH Robinson Worldwide Inc (CHRW) $53.80 +1.61%
McDonald's Corp. (MCD) $99.43 +1.10%
AES Corp. (AES) $14.43 +0.91%
AT&T Inc. (T) $35.12 +0.57%
Avon Products Inc. (AVP) $14.94 +0.47%
Centerpoint Energy Inc. (CNP) $23.96 +0.42%
Ameren Corp. (AEE) $40.17 +0.35%
Devon Energy Corp. (DVN) $68.61 +0.34%
Colgate-Palmolive Co. (CL) $65.94 +0.32%
S&P 500 - Fallers
Alexion Pharmaceuticals Inc. (ALXN) $144.19 -7.49%
Gilead Sciences Inc. (GILD) $65.48 -7.32%
Monster Beverage Corp (MNST) $64.04 -7.04%
TripAdvisor Inc. (TRIP) $81.91 -7.04%
AbbVie Inc (ABBV) $47.35 -6.48%
Bed Bath & Beyond Inc. (BBBY) $63.72 -6.17%
Vertex Pharmaceuticals Inc. (VRTX) $65.69 -6.11%
Actavis plc (ACT) $191.29 -5.24%
Lam Research Corp. (LRCX) $53.07 -5.23%
Facebook Inc. (FB) $59.16 -5.21%
Dow Jones I.A - Risers
McDonald's Corp. (MCD) $99.43 +1.10%
AT&T Inc. (T) $35.12 +0.57%
Dow Jones I.A - Fallers
American Express Co. (AXP) $85.36 -3.79%
Walt Disney Co. (DIS) $77.51 -3.68%
JP Morgan Chase & Co. (JPM) $57.40 -3.16%
Visa Inc. (V) $201.55 -2.89%
Microsoft Corp. (MSFT) $39.36 -2.74%
Boeing Co. (BA) $123.64 -2.55%
Johnson & Johnson (JNJ) $96.54 -2.44%
Merck & Co. Inc. (MRK) $55.85 -2.19%
United Technologies Corp. (UTX) $114.56 -2.12%
Intel Corp. (INTC) $26.42 -2.06%
Nasdaq 100 - Risers
CH Robinson Worldwide Inc (CHRW) $53.80 +1.61%
Nasdaq 100 - Fallers
Alexion Pharmaceuticals Inc. (ALXN) $144.19 -7.49%
Gilead Sciences Inc. (GILD) $65.48 -7.32%
Monster Beverage Corp (MNST) $64.04 -7.04%
TripAdvisor Inc. (TRIP) $81.91 -7.04%
Illumina Inc. (ILMN) $135.74 -6.93%
Bed Bath & Beyond Inc. (BBBY) $63.72 -6.17%
Vertex Pharmaceuticals Inc. (VRTX) $65.69 -6.11%
Catamaran Corp (CTRX) $39.40 -5.94%
Tesla Motors Inc (TSLA) $204.19 -5.87%
Facebook Inc. (FB) $59.16 -5.21% |
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| | Newspaper Round Up | | Friday newspaper round-up: RBS, Tesco, BP The Government could start selling down its stake in Royal Bank of Scotland this year, according to City analysts, after the taxpayer-backed lender agreed a deal with the Treasury that could lead to the return of dividend payments. The deal to scrap the Dividend Access Share (DAS), which barred shareholder pay-outs, may accelerate the Government's exit, analysts at Jefferies said. Many investors do not expect the state to begin offloading shares in RBS until after next year's general election. "The path to full privatisation could be set in motion earlier-than-expected," the analysts argued. – The Daily Telegraph
Former Tesco directors are "dismayed and angry" at the cull of senior talent at the retailer and fear that Philip Clarke, the Chief Executive, is driving the business "in the wrong direction". A "whispering campaign" against senior staff including Laurie McIlwee, the outgoing Finance Director, and Matt Atkinson, the Chief Marketing Officer, has generated particular anger. "[Clarke] is just not good enough. He is doing serious harm to the business," said one former director who worked at the supermarket group for two decades. – The Times
Almost a third of BP's shareholders refused to back "complacent" management at a stormy annual meeting during which the leadership was accused of turning the oil giant into a "laughing stock" because of spiralling payouts over the Gulf of Mexico disaster. Investors refused to support a plan to more than treble the pay package for Bob Dudley, the Chief Executive, to $8.7m (£5.2m). Thirteen per cent voted against the remuneration report and 19 per cent abstained. – The Times
The credit industry is facing its third crackdown in a fortnight after regulators announced that bank customers were paying too much for their overdrafts and, in some cases, were left stranded in perpetual debt by their easy availability. The Financial Conduct Authority, which unveiled research showing that customers were not getting good value or clear information, is to investigate the £8bn market further over the summer and could impose new rules to prevent abuses. - The Times
The squeeze on renters could begin to ease later this year with property specialists predicting that wage rises will begin to outstrip rent rises by July. LSL Property Services predicted today that annual rent rises will dip to 1.7% in July, just as wage rises hit 2.2% - the first time earnings have beaten rents since April 2010. It's good news for tenants, who will enjoy the most monthly disposable income after tax and rent since 2009. – The Daily Mail
George Osborne is to tell an audience of free-market campaigners in Washington that the UK's economic turnaround will defy those who say austerity and low wage growth will lead to long-term stagnation. In his first major speech in the US, the Chancellor will attempt to demolish claims that a further five years of austerity will restrict growth and hurt workers' living standards. – The Guardian | | |
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