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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 as Russia tensions ease, but Serco drops - FTSE 100 at highest since March 6th
- Russia-West tensions ease slightly
- UK GDP data expected to show stronger growth
- Serco drops after profit warning
techMARK 2,801.27 +1.10%
FTSE 100 6,729.00 +0.43%
FTSE 250 15,909.99 +0.53%
UK stock markets opened strongly on Tuesday, tracking a late rebound on Wall Street the previous session, on the back of an easing of geopolitical tensions between Russia and the West.
The US and EU yesterday unveiled new sanctions against certain Russian officials in President Vladimir Putin's 'inner circle' and corporations linked to them.
Nevertheless, sentiment was lifted this morning after Moscow assured Washington that it will not invade Ukraine amid reports of Russian troops leaving the border and returning to their bases.
The FTSE 100 was trading 0.4% higher at 6,729 in early trading; it has not closed above this level since March 6th.
"However, the 'sell in May' cycle is almost upon us. And with some recent turbulent moves, US technology companies in particular, a sell-off is surely on the horizon. Add to this more tension in the Ukraine and we could see this sooner than we expect," said dealer Jonathan Sudaria from Capital Spreads.
"That being said, expect more volatility today as both Bulls and Bears jostle for position ahead of a two-day Federal Open Market Committee meeting, culminating in a policy announcement on Wednesday."
Investors were also looking ahead to today's estimate for first-quarter gross domestic product (GDP) growth in the UK. The economy is expected to have grown by 0.9%, which would mark the highest rate in nearly four years. GDP in the fourth quarter of 2013 expanded by 0.7%.
Serco plummets after warning
FTSE-250 support services firm Serco dropped sharply this morning after issuing a fresh profit warning and indicating it may have to raise capital through a share placing just days before new Chief Executive Rupert Soames takes up his role.
The embattled outsourcing firm, which operates prisons and welfare to work programmes for the UK government, issued a statement after the close yesterday that said trading has been more challenging than expected and it "may need to reassess the levee of risk implicit in the assumptions underlying our forecasts".
Premier Inn and Costa owner Whitbread rose as it beat forecasts with strong annual growth across the board and hiked its dividend, adding that it has made a good start to the new year.
Data centre group Telecity jumped after hailing a "good a start to 2014" and keeping its full-year guidance.
UK housebuilder Redrow gained after saying it expects "further good progress" this year, helped by an improved economic outlook and measures by the government to stimulate the housing market.
Wolfson Microelectronics soared after agreeing to a £291m cash takeover offer from Texas-based semiconductor group Cirrus Logic.
Mining stocks were trading slightly lower this morning after analysts at HSBC downgraded their ratings for BHP Billiton, Antofagasta and Anglo American to 'neutral'. |
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| FTSE 100 - Risers
Shire Plc (SHP) 3,393.00p +3.26%
Whitbread (WTB) 4,153.00p +2.27%
Hargreaves Lansdown (HL.) 1,176.00p +2.17%
St James's Place (STJ) 779.00p +2.03%
Sage Group (SGE) 425.40p +1.70%
TUI Travel (TT.) 428.50p +1.59%
Carnival (CCL) 2,332.00p +1.52%
Prudential (PRU) 1,348.50p +1.39%
BG Group (BG.) 1,161.50p +1.35%
HSBC Holdings (HSBA) 608.90p +1.33%
FTSE 100 - Fallers
Fresnillo (FRES) 841.50p -2.66%
AstraZeneca (AZN) 4,604.50p -1.33%
Randgold Resources Ltd. (RRS) 4,663.00p -1.25%
Barclays (BARC) 246.00p -1.20%
BHP Billiton (BLT) 1,885.00p -0.92%
Rio Tinto (RIO) 3,157.50p -0.88%
Antofagasta (ANTO) 782.00p -0.70%
Anglo American (AAL) 1,511.00p -0.53%
Diageo (DGE) 1,813.50p -0.44%
RSA Insurance Group (RSA) 96.50p -0.36%
FTSE 250 - Risers
Telecity Group (TCY) 710.00p +11.99%
Cable & Wireless Communications (CWC) 53.25p +3.40%
Redrow (RDW) 287.00p +3.05%
UBM (UBM) 672.50p +2.99%
NMC Health (NMC) 465.30p +2.94%
Rightmove (RMV) 2,455.00p +2.81%
Diploma (DPLM) 681.00p +2.71%
Ophir Energy (OPHR) 247.90p +2.69%
Imagination Technologies Group (IMG) 198.40p +2.64%
Essentra (ESNT) 838.50p +2.51%
FTSE 250 - Fallers
Serco Group (SRP) 330.70p -18.24%
Foxtons Group (FOXT) 311.00p -2.87%
UK Commercial Property Trust (UKCM) 80.85p -2.12%
African Barrick Gold (ABG) 242.80p -2.10%
Kazakhmys (KAZ) 233.80p -1.31%
Lonmin (LMI) 281.90p -1.02%
Kier Group (KIE) 1,679.00p -0.89%
Alent (ALNT) 315.00p -0.85%
F&C Commercial Property Trust Ltd. (FCPT) 120.05p -0.70% |
| | UK Event Calendar | | Tuesday, April 29th
INTERIMS
Infrastrata, Utilitywise
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (GER) (07:00)
Business Climate Indicator (EU) (10:00)
Consumer Confidence (US) (15:00)
Economic Sentiment Indicator (EU) (10:00)
M3 Money Supply (EU) (09:00)
FINALS
Espirito Santo Financial Group SA, Huntsworth, Incadea, JQW, LiDCO Group, Lifeline Scientific Inc. (Reg S), Petropavlovsk, TLA Worldwide , Walker Greenbank, Whitbread
ANNUAL REPORT
Afren, Petropavlovsk, Societatea Nationala De Gaze Naturale Romgaz S.A. GDR (Reg S)
IMSS
FBD Holdings, Jardine Lloyd Thompson Group, National Express Group, Redrow, SEGRO, St James's Place
AGMS
Bodycote, Capital Drilling Ltd. (DI), Essentra, FBD Holdings, Global Ports Investments GDR (REG S), Henderson Opportunities Trust, IBM Corp., Jardine Lloyd Thompson Group, JPMorgan US Smaller Co. Inv Tst, Murray International Trust, Murray International Trust 'B' Shares, Powerflute Oyj (DI), Servelec Group , Shire Plc, Thalassa Holdings Ltd. (DI), The Renewables Infrastructure Group Limited, Wolfson Microelectronics
TRADING ANNOUNCEMENTS
Carphone Warehouse Group, Stagecoach Group
UK ECONOMIC ANNOUNCEMENTS
GDP (Preliminary) (09:30)
Index of Services (09:30)
FINAL DIVIDEND PAYMENT DATE
Anglo American, LSL Property Services
Q1
Banco Santander S.A. (CDI), BP |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Draghi speaks, euro moves higher - No QE for now Draghi says
- Euro at 1.3860
- Technology and bank stocks rise
FTSE-100: 0.53%
Dax-30: 0.87%
Cac-40: 0.20%
FTSE Mibtel 30: 1.07%
Ibex 35: 0.63%
Stoxx 600: 0.61%
The main European equity benchmarks have begun the day moving moderately higher, as traders shift into a holding pattern ahead of the start, later today, of a two-day policy meeting of the US Federal Reserve.
On the macroeconomic front in Europe, albeit with a longer-term horizon, the most pertinent bit of information may be the result of a confidence vote on the recently proposed economic reform measures in France.
Economists will also be watching out for the latest harmonised German consumer price data for the month of April. That will come in the run-up to Wednesday's 'flash' estimate of the Eurozone-wide CPI.
The European Union's statistical office, Eurostat, is expected reveal that CPI rose by between 0.8% and 0.9% year-on-year in the euro area, after inflation slowed to a 0.5% pace in March. The CPI report is expected to reflect higher prices for services, especially travel-related, around the Easter holidays (which were in March last year), Barclays Research explained.
European Central Bank President Mario Draghi told German lawmakers this morning that quantitative easing programme is not imminent and remains relatively unlikely, Bloomberg reports.
Hence, perhaps for that reason, this morning's ascent in the euro/dollar, to 1.3860.
Technology and bank stocks higher
From a sector standpoint, and within the DJ Stoxx 600, the largest gains were seen in the following industry groups: Technology (1.63%), Telecommunications (1.23%) and Banks (1.15%).
German financial giant Deutsche Bank has revealed a 24% drop in first quarter profits. The lender said on Monday that it would issue a multi-currency bond of at least €1.5bn to help it strengthen its capital levels.
French drug-maker Sanofi reported lower-than-expected first-quarter earnings.
Spanish lender Santander announced an 8% rise in net profits for the first three months of the year to €1.3bn, slightly less than expected. It has also launched an offer to buy out the remaining 25% of its Brazilian unit which it does not already own.
Nokia stock is gaining on news that it has named a new Chief Executive Officer.
Euro edges higher
The euro/dollar is now moving higher, towards 1.3860.
Front-month Brent crude futures were advancing by 0.378% to the $108.53/barrel mark on the ICE. |
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| | US Market Report | | US close: Markets higher after late rebound despite Russia tensions - US and EU add more names to sanctions list
- Russia vows response
- BofA drops as Fed questions capital plans
- Pharma M&A steps up
- Pending home sales, Dallas Fed beat forecasts
Dow Jones: 0.54%
Nasdaq: -0.04%
S&P 500: 0.30%
Rising tensions between Russia and the West resulted in a volatile session for US markets on Monday, though a late rebound managed to push stocks broadly higher by the close.
Pharmaceutical stocks were on the rise on continued M&A activity in the sector. Banking stocks, however, fell after the Federal Reserve asked Bank of America to re-submit its capital plans.
Markets were also lacking direction ahead of the Federal Reserve policy meeting on Wednesday, US ISM manufacturing data on Thursday and the all-important non-farm payrolls figures on Friday.
Despite erasing early gains after lunchtime, both the Dow Jones Industrial Average and S&P 500 clawed their way back into positive territory by the end of the session, rising 0.5% and 0.3%, respectively. The Nasdaq, however, finished more or less flat.
In economic data, US pending home sales rose by 1% month-over-month in March, rebounding after a revised 0.5% decline in February. The consensus estimate had been for an increase of 1%.
Meanwhile, the Dallas Fed manufacturing activity index jumped from 4.9 to 11.7 in April, well ahead of the 6.0 figure expected by analysts.
Russia warns of retaliation from new sanctions
The White House today announced a raft of new sanctions against members of Russian President Vladimir Putin's 'inner circle' and 17 Russian corporations linked to them. President Barack Obama said that he was holding broader measures against the Russian economy "in reserve".
The EU also added a further 15 Russian officials to its sanctions list.
Russian Deputy Foreign Minister Sergei Ryabkov was reported as saying that the sanctions "will not remain unanswered and the response will be painful for Washington".
He said that the new sanctions were like "pouring oil on the flames".
BofA falls, pharma M&A picks up
Shares of Bank of America were hammered by an announcement from the Fed that it has 30 days to re-submit its capital plans after it found that the bank's calculations of regulatory capital ratios. Until the plans are approved, the Fed said it will be forced to suspend any plans to distribute capital.
Shares in Citigroup, Goldman Sachs, Wells Fargo and JPMorgan Chase also finished lower.
Pfizer gained strongly after confirming that it had approached AstraZeneca in January regarding a $100bn approach for the UK-listed pharmaceutical group. After being rejected, Pfizer said it is still "considering a possible transaction" and "confident a combination is capable of being consummated".
Drug development group Furiex Pharmaceuticals surged after a takeover offer from Forest Laboratories for $1.1bn in cash.
Pharma giant Merck&Co's was also in focus after Reckitt Benckiser confirmed that it is in discussions with the US firm regarding an offer for its consumer health business. Bayer is also said to be looking at buying the unit, which could sell for around $13.5bn.
S&P 500 - Risers
Roper Industries Inc. (ROP) $137.72 +6.51%
Pepco Holdings Inc. (POM) $23.10 +5.72%
Best Buy Co. Inc. (BBY) $25.55 +4.80%
Pfizer Inc. (PFE) $32.04 +4.20%
Sears Holdings Corp. (SHLD) $43.50 +4.04%
Apple Inc. (AAPL) $594.09 +3.87%
AbbVie Inc (ABBV) $50.87 +3.52%
Dr Pepper Snapple Group Inc. (DPS) $55.40 +3.40%
Molson Coors Brewing Co. Class B (TAP) $60.15 +2.72%
GameStop Corp. (GME) $40.34 +2.46%
S&P 500 - Fallers
National Oilwell Varco Inc. (NOV) $77.31 -7.38%
Salesforce.Com Inc. (CRM) $49.13 -6.95%
Newmont Mining Corp. (NEM) $24.67 -6.73%
Bank of America Corp. (BAC) $14.95 -6.27%
Chipotle Mexican Grill Inc. (CMG) $476.28 -5.18%
First Solar Inc. (FSLR) $65.90 -3.98%
Wynn Resorts Ltd. (WYNN) $193.64 -3.90%
Cliffs Natural Resources Inc. (CLF) $17.31 -3.83%
Vulcan Materials Co. (VMC) $61.89 -3.40%
FLIR Systems Inc. (FLIR) $33.95 -3.14%
Dow Jones I.A - Risers
Pfizer Inc. (PFE) $32.04 +4.20%
Microsoft Corp. (MSFT) $40.87 +2.41%
Procter & Gamble Co. (PG) $82.94 +1.88%
International Machines Corp. (IBM) $193.14 +1.85%
AT&T Inc. (T) $35.08 +1.71%
Johnson & Johnson (JNJ) $101.34 +1.55%
Travelers Company Inc. (TRV) $89.64 +1.51%
Wal-Mart Stores Inc. (WMT) $79.76 +1.45%
Verizon Communications Inc. (VZ) $46.60 +1.44%
Chevron Corp. (CVX) $125.73 +1.40%
Dow Jones I.A - Fallers
Nike Inc. (NKE) $71.67 -1.42%
Boeing Co. (BA) $127.04 -1.26%
Goldman Sachs Group Inc. (GS) $156.54 -1.07%
Merck & Co. Inc. (MRK) $56.68 -0.98%
Walt Disney Co. (DIS) $77.78 -0.58%
McDonald's Corp. (MCD) $100.31 -0.42%
Caterpillar Inc. (CAT) $104.26 -0.41%
JP Morgan Chase & Co. (JPM) $55.49 -0.38%
Nasdaq 100 - Risers
Charter Communications Inc. (CHTR) $140.05 +7.72%
Apple Inc. (AAPL) $594.09 +3.87%
Microsoft Corp. (MSFT) $40.87 +2.41%
Staples Inc. (SPLS) $12.57 +2.28%
Broadcom Corp. (BRCM) $30.40 +2.15%
Maxim Integrated Products Inc. (MXIM) $32.13 +1.84%
Mondelez International Inc. (MDLZ) $35.94 +1.70%
Fiserv Inc. (FISV) $56.79 +1.61%
Vimpelcom Ltd Ads (VIP) $8.31 +1.47%
Monster Beverage Corp (MNST) $66.74 +1.46%
Nasdaq 100 - Fallers
Baidu Inc. (BIDU) $150.93 -7.35%
Illumina Inc. (ILMN) $133.76 -4.26%
Wynn Resorts Ltd. (WYNN) $193.64 -3.90%
Dish Network Corp. (DISH) $56.23 -3.02%
Mylan Inc. (MYL) $50.67 -2.74%
Facebook Inc. (FB) $56.14 -2.72%
Micron Technology Inc. (MU) $24.58 -2.69%
Twenty-First Century Fox Inc Class A (FOXA) $31.78 -2.63%
Avago Technologies Ltd. (AVGO) $60.78 -2.50%
Netflix Inc. (NFLX) $314.21 -2.44% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: Wolfson Microelectronics, Royal Mail, Sanctions Wolfson Microelectronics, the designer of audio chips for smartphones, tablet computers and video game consoles, is asking shareholders to back a takeover offer by US rival Cirrus Logic. The company recommends that investors accept the 291m pounds – 235p a share – offer, making for a premium of 75.4 per cent over yesterday's closing price, The Scotsman reports.
Speaking before the Public Accounts Committee, Martin Wheatley, the Chief Executive of the Financial Conduct Authority (FCA), repeated on various occasions that he sees no evidence which would justify an investigation by the regulator into the flotation of Royal Mail. Wheatley explained that around the world most initial public offerings are priced in such a manner that they will rise on the first day. "Typically, they are priced to go," he said. His testimony follows the findings by the National Audit Office (NAO) that the government had lost £750m of taxpayers' money on a single day by hiving off the shares too cheaply, The Guardian writes.
Another slate of Russian government officials and corporations has been targeted by a new round of sanctions from the US and Europe in an effort to press Russian President Vladimir Putin and his allies to cease their activities in eastern Ukraine. The measures, however, fell quite short of what many in Congress and Kiev have been asking for and were one week late. Hence the rise seen in the Russian stock market, The Wall Street Journal Europe reports.
The largest banks in the UK and building societies could face demands to raise more capital, as a result of the findings of the regulatory stress tests which are set to be published today. The lenders will have to prove that they can withstand house prices dropping by a third as well as a simultaneous spike in interest rates. Later this year the Bank of England's Prudential Regulation Authority will also test the ability of the country's eight largest lenders to survive another crisis, lest taxpayers be called upon again to pick up the tab, The Times writes.
Liberal Democrat Treasury Secretary Danny Alexander on Tuesday branded politicians calling for Britain to exit the European Union "the worst kind of snake-oil salesmen offering a false cure for an imaginary illness", adding that their plans threaten to "kill the recovery". He was speaking after the City UK published research showing that a "Brexit" would hurt the economy. The report from Clifford Chance found that the UK's financial sector, which now employs two million people, would suffer as a consequence under every exit scenario, The Times reports.
Mobile phone operator EE, the joint venture between Orange and Germany's Deutsche Telekom, is on target to reach six million customers by the end of this year thanks to strong demand for 4G data services. In the three months ended on March 31st, it rang up 889,000 new customers, with its total client base rising to 2.9m. It is clear that 4G is expanding more quickly than expected as more handsets are developed which are enabled to use it, according to The Daily Express. | | |
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