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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 at three-week low as Ukraine tensions rise - Ukraine tensions rise as deadline passes
- Ukraine calls on pro-Russian radicals to lay down arms
- Glencore Xstrata sells Las Bambas for 5.85bn dollars
techMARK 2,649.91 -0.75%
FTSE 100 6,546.34 -0.23%
FTSE 250 15,806.60 -0.58%
UK markets got off to a subdued start on Monday morning as stocks paused at a three-week low, with sentiment still fragile after the sell-off last week.
Meanwhile, heightened tensions in Ukraine were causing investors to scale back their appetite for risk as the deadline for pro-Russian separatists to disarm passes.
The FTSE 100 was trading 0.2% lower at 6,546 in early trading. The index finished last week with a 2% decline to 6,561.70, its worst closing level since March 24th when it ended the session at 6,520.39.
Global equity markets sank sharply last week with New York's tech-heavy Nasdaq in particular falling 3.1% as investors continued to dump so-called 'momentum' stocks which have performed well over recent months. Concerns about steep valuations going into the new earnings season also prompted traders to offload shares.
Over the weekend, Ukrainian President Alexndr Turchnov gave pro-Russian radicals in the east of the country until today to lay down their arms. The deadline follows the wounding of a Ukrainian special forces officer and five other soldiers in a gun battle on Sunday, during operations carried out in the city of Slaviansk.
In response to these events, Ukraine is to launch a large-scale anti-terrorist campaign against those groups of protestors who have barricaded themselves in various government buildings in the eastern region of the country. Turchnov said that Kiev will not allow a repeat of recent events in Crimea.
Russia responded by urging Ukrainian authorities not to use force against pro-Russian radicals and called on Kiev to cease a "war with its own people".
The economic data calendar for Monday looks a little light, with Eurozone industrial production and US retail sales being the only major releases during the session.
Glencore Xstrata gains after Las Bambas sale
After months of negotiations, commodities trader and mining giant Glencore Xstrata has finally reached an agreement to sell its Las Bambas copper project in Peru. Las Bambas is being sold for $5.85bn to a consortium of investors, including a subsidiary of Chinese state-owned China Minmetals Corp.
The company said that proceeds would go towards de-gearing its balance sheet and any surplus capital would be returned to shareholders "within an appropriate time frame and structure".
Precious metal miners Randgold Resources and Fresnillo were also in demand this morning as gold and silver prices gained.
Leading the downside were building and construction stocks with Ashtead, Barratt Developments and Persimmon among the worst performers.
Airlines easyJet and IAG were extending losses made Friday when Heathrow's monthly traffic statistics revealed that 5.8m passengers passed through the London airport in March, down 2.8% on the year before. |
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| FTSE 100 - Risers
Imperial Tobacco Group (IMT) 2,486.00p +1.59%
Antofagasta (ANTO) 838.00p +1.58%
Reckitt Benckiser Group (RB.) 4,804.00p +1.48%
Diageo (DGE) 1,894.50p +1.17%
Glencore Xstrata (GLEN) 315.15p +1.14%
Sainsbury (J) (SBRY) 313.10p +1.13%
British American Tobacco (BATS) 3,429.50p +1.09%
SABMiller (SAB) 3,140.00p +0.95%
Randgold Resources Ltd. (RRS) 4,714.00p +0.83%
Unilever (ULVR) 2,656.00p +0.80%
FTSE 100 - Fallers
Ashtead Group (AHT) 850.00p -3.41%
Barratt Developments (BDEV) 378.20p -2.10%
Whitbread (WTB) 3,954.00p -1.89%
Rexam (REX) 491.30p -1.74%
easyJet (EZJ) 1,671.00p -1.71%
ARM Holdings (ARM) 943.50p -1.56%
Persimmon (PSN) 1,295.00p -1.52%
Rolls-Royce Holdings (RR.) 1,019.00p -1.36%
Hargreaves Lansdown (HL.) 1,240.00p -1.35%
Mondi (MNDI) 985.00p -1.35%
FTSE 250 - Risers
Phoenix Group Holdings (DI) (PHNX) 659.00p +2.33%
UDG Healthcare Public Limited Company (UDG) 361.20p +2.27%
Jardine Lloyd Thompson Group (JLT) 1,090.00p +2.06%
Fidessa Group (FDSA) 2,574.00p +1.42%
Perform Group (PER) 241.90p +1.38%
AL Noor Hospitals Group (ANH) 1,060.00p +1.05%
African Barrick Gold (ABG) 263.60p +1.03%
Oxford Instruments (OXIG) 1,386.00p +1.02%
Savills (SVS) 640.00p +0.95%
Dairy Crest Group (DCG) 482.40p +0.94%
FTSE 250 - Fallers
Evraz (EVR) 78.60p -3.38%
Thomas Cook Group (TCG) 166.40p -3.26%
Imagination Technologies Group (IMG) 193.90p -2.90%
888 Holdings (888) 143.30p -2.72%
Worldwide Healthcare Trust (WWH) 1,185.00p -2.63%
Henderson Group (HGG) 242.00p -2.46%
RPS Group (RPS) 304.40p -2.44%
Ocado Group (OCDO) 367.90p -2.41%
Telecity Group (TCY) 648.00p -2.19% |
| | UK Event Calendar | | Monday April 14th
INTERIMS
Carr's Milling Industries
INTERIM DIVIDEND PAYMENT DATE
Tristel
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
M2 (China) (10th to 15th)
New loans (China) (10th to 15th)
Inventories (US) (13:30)
Industrial Production (EU) (10:00)
Manufacturing Inventories (US) (15:00)
Retail Sales (US) (13:45)
Retail Sales Inventories (US) (15:15)
Final Consumer Price Index (IT) (08:00)
GMS
Proactis Holdings
FINALS
DDD Group, M. P. Evans Group, Networkers International
ANNUAL REPORT
Cambridge Cognition Holdings, G4S
EGMS
JSC KazMunaiGaz Exploration Production GDR (Reg S)
AGMS
Bank Audi S.A.L. GDR (Repr 1'Com'Shr Lbp1299)(Reg S), Baronsmead VCT 3, Baronsmead VCT 4, Baronsmead VCT 5, Guaranty Trust Bank GDR (Reg S)
FINAL DIVIDEND PAYMENT DATE
Athelney Trust, New Europe Property Investments |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Russia braces for Ukraine military action - Ukrainian army to remove pro-Russian protesters
- ECB's Draghi says stimulus needed if euro strengthens
- Eurozone industrial output figures due out
FTSE 100: -0.14%
DAX: -0.39%
CAC 40: -0.09%
FTSE MIB: -0.16%
IBEX 35: -0.88%
Stoxx 600: -0.18%
Stocks in the euro-area were mostly lower as tensions between Ukraine and Russia escalated.
Russia's ambassador to the United Nations (UN), Vitaliy Churkin, has advised authorities in Kiev against using force on pro-Russian protesters in eastern Ukraine.
However, Ukraine's UN ambassador Yuriy Sergeyev said Moscow had artificially created the crisis in eastern Ukraine.
Their remarks come as a deadline set by Ukraine for pro-Russian activists to leave the government buildings they are occupying expired at 06:00 GMT on Monday.
Ukraine had warned of military action to take back control of the buildings if they failed to retreat.
ECB stimulus
European Central Bank (ECB) President Mario Draghi has said a strengthening of the exchange rate requires further stimulus.
Speaking at a news conference during meetings of the International Monetary Fund, Draghi said stimulus would be needed to keep inflation from falling too low should the exchange rate rise.
While the ECB does not target exchange rates, Draghi has highlighted the effect the strong euro has had on inflation, which fell to 0.5% in March from 0.7% in February well below the monetary authority's 2% target.
Turning to today's agenda, investors will be looking out for Eurozone industrial production figures and a report on US retail sales, amongst other American data.
Kuehne & Nagel, Peugeot Citroen
Kuehne & Nagel International AG declined after the world's biggest sea-freight forwarder reported first-quarter sales that missed estimates.
PSA Peugeot Citroen edged lower after the carmaker outlined plans to cut its model line-up by almost half and turn the Citroen unit's DS badge into a separate brand.
Symrise AG slumped after offering to buy Diana Group, a French flavours and pet-food additive maker.
STMicroelectronics NV dropped as UBS recommended selling stocks in the chipmaker.
Glencore Xstrata advanced after selling its stake in the Las Bambas copper mine in Peru.
The euro fell 0.24% to $1.3851.
Brent crude futures rose $0.620 to $108.000 per barrel, according to the ICE. |
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| | US Market Report | | US close: JPMorgan leads banks lower as sell-off continues - JPMorgan disappoints as profits sink
- High-growth stocks continue to fall
- S&P 500 caps worst week since January
- Consumer confidence, PPI come ahead of forecasts
Dow Jones: -0.89%
Nasdaq: -1.34%
S&P 500: -0.95%
US stocks slumped again on Friday as a pick-up in consumer confidence was overshadowed by ongoing concerns about steep valuations as first-quarter earnings season got into full swing.
Sentiment was further dampened by heavyweight JPMorgan Chase & Co, which disappointed with its quarterly results ahead of the opening bell. The bank, typically seen as a bellwether for the financial industry, missed both revenue and profit forecasts by a wide margin, sending peers across the sector lower during the session.
The Dow Jones Industrial Average fell 0.9% to 16,026.75, finishing the week with a 2.4% loss, its first weekly decline in four weeks.
The S&P 500 dropped 1% to 1,815.69 as it continues to retreat from its record high registered on April 2nd. The benchmark index finished 4% lower on the week, its worst weekly performance since January.
Meanwhile, the tech-heavy Nasdaq, which has borne the brunt of the sell-off this week, dropped 1.3% to 3,999.73, falling below the 4,000 level for the first time since early February. The index fell 3.1% on the week.
The Nasdaq slumped 3.1% on Thursday, its worst single-day percentage loss since late 2011, as investors continued to dump so-called 'momentum' stocks which have performed well over recent months. Concerns about steep valuations going into the new earnings season prompted traders to scale back their appetite for risk.
In economic news today, the University of Michigan consumer confidence index jumped to 82.6 in April from 80 last month, ahead of the 81 consensus forecast.
Meanwhile, the annual rise in US producer prices picked up to 1.4% in March from 0.9% in February, compared with the 1.2% gain expected. Paul Dales, Senior US Economist at Capital Economics, said that this "could mark the start of a gradual upward trend that would eventually filter through into higher consumer price inflation".
JPMorgan disappoints as Q1 earnings drop 19%
JPMorgan Chase & Co kicked off the bank earnings season on Wall Street by missing forecasts with its quarterly report, revealing that profits fell 19% due to lower revenue from its fixed-income trading and mortgage divisions. JPMorgan, the largest bank in the States, said earnings per share totalled $1.28, down from $1.59 previously and well below the consensus forecast for EPS of $1.46. The stock was down around 3.7% by the close.
Sector peer Wells Fargo & Co fared a little better with losses and closed up 0.8% after unveiling a better-than-estimated 14% jump in first-quarter profits. EPS rose to $1.05 cents, up from 92 cents previous and ahead of the 97 cents prediction.
However, other banks such as Citigroup, Goldman Sachs and Bank of America finished with firm losses.
Biotech and other high-growth stocks continued to come under selling pressure with Biogen Idec, Vertex Pharmaceuticals, Alexion Pharmaceuticals and Intuitive Surgical falling sharply.
After an initial stint in positive territory, social media giant Facebook dropped into the red by the close and now trades nearly 17% lower than where it was a month ago as the stock continues to pull back from hitting a record high in early March.
Other internet stocks such as Google, Yahoo!, Twitter, Netflix and LinkedIn also extended losses made earlier in the week. |
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| | Newspaper Round Up | | Monday newspaper round-up: Home prices, Iranian oil, Punch Taverns Asking prices for homes in the UK have risen by 7.3 per cent over the past 12 months, according to Rightmove and can be expected to rise by an additional 7.4 per cent this year, a new report from the E&Y ITEM Club says. However, the pace of increases is expected to taper to 7.2 per cent next year before retreating to a 4.2 per cent clip in 2016. An increase in the supply of new homes, greater caution from mortgage lenders and tougher regulations from the Bank of England will all help to avoid an unsustainable boom, the think tank added, according to The Times.
Iran has unveiled plans to double its oil production by the end of the decade and, ignoring sanctions, pump billions of dollars of its currency reserves into developing its share of the world's largest natural gas reservoir in the Persian Gulf the South Pars field. The total cost of these new projects is expected to reach up to 8.3bn. However, it is thought unlikely that Iran will be able meet its targets without help from international oil companies, The Daily Telegraph reports.
Troubled pub operator Punch Taverns, Britain's second biggest pubs group, has brought in an independent corporate restructuring expert to aid in the long-running negotiations over its 2.3bn pile of debt. It is hoped that a deal between the company and its creditors can be reached by the start of May. A deal, which may include a debt for equity swap, between Punch and its junior creditors could soon be agreed. In parallel, negotiations with senior bondholders are continuing. However, to avoid a default fresh restructuring proposals must be reached by June 30th, The Daily Telegraph says.
Commodities giant GlencoreXstrata has announced its intention to sell its Las Bambas copper mine to a Chinese consortium for more than $6.25bn. The sale was imposed by China's commerce ministry as a condition for approving Xstrata's takeover by Glencore. The transaction also marks China's largest purchase overseas in six years, according to The Times.
Scotland's economic recovery is now on a solid footing, the latest Bank of Scotland purchasing managers index showed. The survey, which canvasses hundreds of businesses, showed that improved conditions had led companies to increase staffing levels, even if the pace moderated from February's' peak. Better conditions were seen in both manufacturing and services, but exports continued to be a weak spot, The Scotsman reports.
The Co-operative Bank is preparing to raise 400m even without any input from the Co-op Group given that there is "more than enough interest" from other investors, sources close to the deal told The Daily Mail. The Co-op Group, which holds a 30% stake in the bank, is set to reveal massive losses when it publishes it full-year figures, on Thursday. In no mean part, that will be due to the 1.3bn in red ink racked up at the Co-op Bank. The company had previously stated that it would honour its obligations to contribute 263m to last year's capital raising effort at the lender. On top of that, nonetheless, it may now be called upon to put up a further 120m. | | |
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