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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: Sports Direct leads markets lower, Ukraine tensions weigh - Ukraine tensions running high
- Wall Street sell-off continues ahead of Q1 earnings
- BoJ holds steady despite tax hike
- Sports Direct slumps, miners gain
techMARK 2,725.79 -0.16%
FTSE 100 6,609.27 -0.20%
FTSE 250 16,217.75 -0.28%
Growing tensions in Ukraine pushed UK stocks lower on Tuesday morning, with sentiment still fragile after yet another sell-off on Wall Street the previous session.
The FTSE 100 was trading 0.2% lower at 6,609, extending losses after hitting a one-week low of 6,622.84 on Monday afternoon.
Ukraine has launched a military operation in the eastern city of Kharkiv and arrested approximately 70 separatists that had seized a regional administration building. Ukrainian Interior Minister Arsen Avakov called the response an "anti-terrorist operation", according to a report by Reuters.
Meanwhile, the Russian Ministry of Foreign Affairs called on Ukraine to stop amassing forces in the south-eastern part of the country in order to counteract anti-government protests. "We call for an immediate halt to military preparations which could lead to an outbreak of civil war," the Ministry said in a statement.
US markets fell sharply again on Monday evening with the Nasdaq registering its worst three-day skid since late 2011 as investors continue to question steep valuations of high-growth tech stocks ahead of the start of the first-quarter earnings season.
Chief Market Analyst Michael Hewson from CMC Markets said: "European markets [are] well above their recent range lows of the past few weeks ago, which suggests the selling might well be contained in the short - term, given that European stocks haven't pushed to the elevated levels of their counterparts in the US."
Markets in Asia were mixed overnight after the Bank of Japan decided to hold on current monetary policy despite worries of the effects of a new sales tax increase on the Asian economy. The Japanese central bank chose to keep interest rates unchanged and maintained its pledge to increase the monetary base at an annual pace of 60tn to 70tn yen (£351bn-£409bn).
Sports Direct drops on Ashley share sale
Sporting goods retailer Sports Direct sunk sharply this morning after it was reported that Founder Mike Ashley is selling £200m-worth of shares, taking his stake from 62% to 58%. Goldman Sachs said it will place up to 24m shares acquired from MASH Holdings, Ashley's investment vehicle, with institutional investors. The stock is being placed at 850-870p a share, compared with last night's closing price of 893.5p.
Mining stocks were dominating the upside in London today with Fresnillo, Rio Tinto, Antofagasta, Anglo American and Randgold Resources rising strongly as metal prices improved.
Iron ore producer Ferrexpo edged higher after first-quarter iron ore pellet production rose 9.2% to 2,714,000 tonnes compared to a year ago. The miner also increased the proportion of higher grade pellets at 65% iron, up by 320,000 tonnes or 31%.
Barclays was lower after reaching a settlement with a UK care operator over claims the bank mis-sold products linked to benchmark interest rates.
Polymer group Victrex was higher as investors shrugged off comments about rising currency headwinds and focused on the company's better-than-expected second quarter, which was helped by softer volume comparatives the previous year.
Chemicals business Synthomer was trading firmly lower after JPMorgan Cazenove downgraded its rating on the stock from 'neutral' to 'underweight' after an "impressive" 40% run over the last 12 months. The bank said it sees this "as an opportunity to take profits" with the valuation now looking "stretched". |
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| FTSE 100 - Risers
Rio Tinto (RIO) 3,397.00p +1.60%
ARM Holdings (ARM) 988.00p +1.59%
Fresnillo (FRES) 905.00p +1.57%
Antofagasta (ANTO) 861.00p +1.12%
Anglo American (AAL) 1,568.50p +0.93%
Randgold Resources Ltd. (RRS) 4,709.00p +0.73%
Standard Chartered (STAN) 1,264.00p +0.72%
Unilever (ULVR) 2,549.00p +0.47%
Bunzl (BNZL) 1,630.00p +0.43%
Glencore Xstrata (GLEN) 317.70p +0.33%
FTSE 100 - Fallers
Sports Direct International (SPD) 845.00p -5.43%
Associated British Foods (ABF) 2,643.00p -4.00%
Ashtead Group (AHT) 918.50p -3.57%
Resolution Ltd. (RSL) 278.20p -3.34%
Burberry Group (BRBY) 1,383.00p -1.64%
Prudential (PRU) 1,298.00p -1.55%
BT Group (BT.A) 369.20p -1.55%
St James's Place (STJ) 803.00p -1.53%
Experian (EXPN) 1,048.00p -1.50%
Pearson (PSON) 1,011.00p -1.37%
FTSE 250 - Risers
Computacenter (CCC) 652.00p +3.08%
Evraz (EVR) 77.25p +2.05%
Diploma (DPLM) 733.50p +1.59%
Fidessa Group (FDSA) 2,642.00p +1.58%
EnQuest (ENQ) 124.80p +1.38%
Vesuvius (VSVS) 450.70p +1.35%
Caledonia Investments (CLDN) 2,035.00p +1.34%
Thomas Cook Group (TCG) 181.10p +1.34%
Northgate (NTG) 537.00p +1.32%
Rank Group (RNK) 159.30p +1.21%
FTSE 250 - Fallers
Synthomer (SYNT) 277.00p -5.01%
Henderson Group (HGG) 258.40p -3.62%
Mitchells & Butlers (MAB) 443.00p -2.32%
Domino Printing Sciences (DNO) 764.00p -2.18%
Hikma Pharmaceuticals (HIK) 1,629.00p -2.10%
Carphone Warehouse Group (CPW) 319.10p -1.54%
Pace (PIC) 437.90p -1.51%
Home Retail Group (HOME) 214.60p -1.47%
International Personal Finance (IPF) 532.50p -1.39% |
| | UK Event Calendar | | Tuesday April 08
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Industrial business sentiment (FR) (07:30)
Speech President Minneapolis Fed (13:30)
Speech President Philadelphia Fed (14:45)
Monetary Policy Meeting (JP)
INTERIMS
Matchtech Group
INTERIM DIVIDEND PAYMENT DATE
Alumasc Group, Carclo, Dechra Pharmaceuticals
QUARTERLY EX-DIVIDEND DATE
Marsh & Mclennan Cos Inc., Verizon Communications
FINALS
GVC Holdings, InternetQ, Netplay TV, ReThink Group, Somero Enterprises Inc.(Reg S),Keywords
ANNUAL REPORT
Miton Group
SPECIAL DIVIDEND PAYMENT DATE
Independent Inv Trust
AGMS
Porvair, Telecity Group, XP Power Ltd. (DI)
TRADING ANNOUNCEMENTS
GVC Holdings, Victrex plc, UK Mail
PRODUCTION RESULTS
Ferrexpo
UK ECONOMIC ANNOUNCEMENTS
Industrial Production (09:30)
Manufacturing Production (09:30)
FINAL DIVIDEND PAYMENT DATE
Driver Group, Independent Inv Trust
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks little changed after BOJ policy decision - BOJ keeps policy unchanged
- Tensions in Ukraine escalate
- IMF to publish World Economic Outlook
- UK industrial data due
FTSE 100: -0.26%
DAX: -0.22%
CAC 40: -0.13%
FTSE MIB: -0.33%
IBEX 35: -0.44%
Stoxx 600: -0.15%
European stocks were little changed as the Bank of Japan (BOJ) kept its policy unchanged and as tensions in Ukraine escalated.
The Japanese central bank decided to maintain interest rates and its pledge to increase the monetary base at an annual pace of 60tn to 70tn yen, as expected by analysts.
The BOJ said the economy has continued to recover moderately despite "some fluctuations due to the consumption tax hike".
Meanwhile, the Ukraine has launched a military operation in the eastern city of Kharkiv and arrested about 70 separatists that had seized a regional administration building.
Ukrainian Interior Minister Arsen Avakov called the response an "anti-terrorist operation", according to Reuters, and said that those arrested were suspected of "illegal activity related to separatism, the organisation of mass disorder and damage to human health".
Russian Ministry of Foreign Affairs called on Ukraine to stop amassing forces in the southeastern part of the country in order to counteract anti-government protests
The heightened turmoil follows Russia's annexation of Crimea from Ukraine last month.
IMF publishes World Economic Outlook
The International Monetary Fund publishes new forecasts later today, outlining the state of the global economy.
Analysts predict it will reveal an increase in global growth estimates on the back of expansion in advanced economies including the UK and the US.
In the UK, a report on industrial production is expected to show a 2.2% year-on-year rise in February, compared to a 2.9% increase a month earlier.
Nordea Bank, Sports Direct
Nordea Bank jumped after Chairman Bjoern Wahlroos signalled that it will increase dividends.
Sports Direct International declined after the Financial Times reported that founder Mike Ashley was selling a 4% stake.
Mining companies, including Fresnillo and Rio Tinto, gained as metal prices edged higher.
The euro rose 0.11% to $1.3757.
Brent crude futures rose $0.423 to $106.270 per barrel, according to the ICE. |
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| | US Market Report | | US close: Stocks slide as profit taking continues - Lack of catalysts as investors scale back risk
- Nasdaq records worst three-day fall since late 2011
- High-growth stocks in focus
- World Bank cuts forecasts
Dow Jones: -1.02%
Nasdaq: -1.16%
S&P 500: -1.08%
US stocks declined for a third straight day on Monday with high-growth, 'momentum' shares continuing to bear the brunt of the selling pressure.
The Dow Jones Industrial Average fell 1%, while the S&P 500 dropped 1.1%, erasing its gains made in the year-to-date.
However, the Nasdaq again experienced the heaviest falls, dropping 1.2% to below its 100-day moving average as technology shares extended last week's losses. Over the past three days, the index has lost 4.6% of its value, the worst three-day skid since November 2011.
Analysts have attributed the recent declines to a reduction in risk appetite as investors rotate out of stocks that have performed the best in the bull market on concerns that valuations are too expensive.
According to Bloomberg, the average price-to-earnings ratio of stocks on the Nasdaq is 31.5, nearly double the average valuation on the S&P 500.
With an absence of any major economic data out during the session, Market Analyst Craig Erlam from Alpari UK said that there is a "lack of any positive catalysts" after the slightly worse-than-expected non-farm payrolls figure of 191,000.
"Had we seen a jobs report more in line with market expectations on Friday, with closer to 250,000 jobs added, then I don't think we'd now be seeing markets behaving as they are. Instead traders would probably be more focused on the growth prospects of the US this year, rather than the overvaluation of high growth stocks," he said.
The World Bank was dampening sentiment on global equity markets after cutting its estimates for economic growth in Asia. In particular, China growth was revised to 7.6% from a previous projection of 7.7 %, with the World Bank citing a "bumpy start to the year" for the world's second largest economy.
Meanwhile, heightened tensions in Ukraine was also in investors' minds after a Ukraine naval officer was reportedly shot dead by a Russian solider in eastern Crimea. The news came as Ukraine Prime Minister Arseniy Yatsenyuk accused Russia of provoking unrest in his country's eastern region as an excuse to send troops across the border.
Momentum shares, Alcoa kicks off earnings season
Facebook, the social media giant, swung between gains and losses for most of the session after experiencing a bout of selling pressure last week after a near-140% rise over the past year. The stock managed to finished 0.4% higher. Apple, which also fell sharply in recent days, finished with small gains.
Other high-growth stocks such as Tesla Motors, TripAdvisor and Baidu continued to fall.
Aluminium producer Alcoa edged lower ahead of its results tomorrow as it unofficially starts the US quarterly earnings season after the close of trade.
Heavyweight banking giant JPMorgan Chase and Wells Fargo, which also report this week, were trading lower.
Sprouts Farmers Market slumped as the organic grocery chain recalled its black peppercorns after routine testing by US food regulator showed that some of it contained salmonella.
S&P 500 - Risers
Alexion Pharmaceuticals Inc. (ALXN) $145.66 +2.22%
Biogen Idec Inc. (BIIB) $294.19 +2.05%
Kellogg Co. (K) $65.06 +2.02%
HCP Inc. (HCP) $40.21 +1.87%
Ventas Inc. (VTR) $63.00 +1.63%
PepsiCo Inc (PEP) $83.91 +1.60%
GameStop Corp. (GME) $43.52 +1.59%
International Business Machines Corp. (IBM) $194.52 +1.43%
Kraft Foods Group, Inc. (KRFT) $57.59 +1.39%
Newmont Mining Corp. (NEM) $24.44 +1.37%
S&P 500 - Fallers
Sears Holdings Corp. (SHLD) $38.10 -24.12%
Valero Energy Corp. (VLO) $51.91 -4.54%
Fossil Group Inc (FOSL) $109.28 -4.43%
Mylan Inc. (MYL) $48.40 -4.40%
Teradata Corp. (TDC) $45.72 -4.33%
CME Group Inc. (CME) $67.59 -4.26%
Sandisk Corp. (SNDK) $77.54 -4.21%
Genworth Financial Inc. (GNW) $17.07 -4.21%
Constellation Brands Inc. Class A (STZ) $80.80 -4.19%
Tenet Healthcare Corp. (THC) $40.15 -4.13%
Dow Jones I.A - Risers
International Business Machines Corp. (IBM) $194.52 +1.43%
Intel Corp. (INTC) $26.49 +1.24%
Coca-Cola Co. (KO) $38.62 +1.05%
Procter & Gamble Co. (PG) $80.49 +0.90%
Cisco Systems Inc. (CSCO) $22.85 +0.61%
Verizon Communications Inc. (VZ) $48.12 +0.17%
Wal-Mart Stores Inc. (WMT) $77.31 +0.00%
Dow Jones I.A - Fallers
Pfizer Inc. (PFE) $31.20 -2.99%
American Express Co. (AXP) $86.60 -2.88%
Goldman Sachs Group Inc. (GS) $158.56 -2.87%
Nike Inc. (NKE) $70.83 -2.76%
Visa Inc. (V) $203.41 -2.07%
Home Depot Inc. (HD) $77.13 -2.02%
United Technologies Corp. (UTX) $116.18 -1.69%
Merck & Co. Inc. (MRK) $55.19 -1.66%
Walt Disney Co. (DIS) $79.13 -1.62%
Boeing Co. (BA) $125.59 -1.41%
Nasdaq 100 - Risers
Alexion Pharmaceuticals Inc. (ALXN) $145.66 +2.22%
Biogen Idec Inc. (BIIB) $294.19 +2.05%
Kraft Foods Group, Inc. (KRFT) $57.59 +1.39%
Illumina Inc. (ILMN) $140.46 +1.36%
Celgene Corp. (CELG) $139.16 +1.29%
Intel Corp. (INTC) $26.49 +1.24%
F5 Networks Inc. (FFIV) $105.35 +0.87%
Vertex Pharmaceuticals Inc. (VRTX) $66.40 +0.85%
Symantec Corp. (SYMC) $20.41 +0.79%
Regeneron Pharmaceuticals Inc. (REGN) $287.19 +0.65%
Nasdaq 100 - Fallers
Liberty Global plc Series A (LBTYA) $38.49 -4.94%
Mylan Inc. (MYL) $48.40 -4.40%
Dish Network Corp. (DISH) $59.52 -4.37%
Sandisk Corp. (SNDK) $77.54 -4.21%
Baidu Inc. (BIDU) $143.51 -3.91%
Micron Technology Inc. (MU) $21.71 -3.85%
Yahoo! Inc. (YHOO) $33.07 -3.47%
Activision Blizzard Inc. (ATVI) $19.43 -3.43%
NetApp Inc. (NTAP) $36.30 -3.28%
Tractor Supply Company (TSCO) $66.98 -3.14% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: Ukraine, Co-op Bank, Tesco There may be a faint glimmer of progress in the Ukraine. Following a telephone conversation between the US Secretary of State John Kerry and his Russian counterpart, a meeting which will include European and Ukrainian officials has been arranged for within the next 10 days. However, that follows the occupation of government buildings in eastern Ukraine by pro-Moscow protesters and a warning by the US to Russia against any further escalation, The Wall Street Journal Europe reports.
The Co-op Bank yesterday announced that it will report its latest figures "no later" than Friday, saying the delay would "enable the bank to finalise its accounts". It had been expected to publish them today. This is the second time that it has postponed the release of those figures in the wake of its admission that it needed an extra £400m of capital on top of a £1.5bn cash injection this year. The lender has already announced that losses could balloon to as much as £1.3bn, The Daily Express writes.
The exit of Tesco's Finance Director has done little to resolve some observers' doubts regarding the company's management. Clive Black, at Shore Capital, has gone on record as saying that the board may need "more fundamental change", while at the same time highlighting the fact that a succession plan is "glaringly absent". In his opinion, part of the solution lies in the firm having executives accountable for key markets again on its board, supported by the new Chief Financial Officer, according to The Daily Telegraph.
Britain's economy needs to rebalance if the recovery is to have a solid foundation. For the moment, however, it is still too reliant on consumer spending. That was the stark warning contained in the results of the British Chambers of Commerce's (BCC's) latest poll of thousands of UK companies. Hence the Chancellor's recent drive to reform the export finance sector in the UK, one of the least competitive in Europe, in his own words, The Scotsman reports.
The latest American unemployment report failed to convince, leading legions of investors that had been buying the shares - simply because they had been going up - to finally question the prices of some 'momentum' stocks. Hence the falls seen in American technology giants such as Twitter or Facebook as investors lost their nerve, The Times says.
A new report on wages published today by consultants KPMG shows that salaries are now growing at their fastest pace in almost seven years for those taking up new jobs. The same set of data also reveals that demand for staff increased at a marked pace last month, as companies looked to step up hiring. The figures are thus suggesting that the squeeze on living standards may be coming to an end. KPMG's gauge of average salaries awarded to new staff hit 62.2 in March, its strongest since the recession hit, The Daily Mail says. | | |
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