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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 close: Miners drive FTSE higher - FTSE closes up 37.18 points
- Miners rise on JPMorgan Chase
- CBI ups outlook for GDP
techMARK 2,794.57 +0.44%
FTSE 100 6,851.75 +0.55%
FTSE 250 15,981.35 +0.61%
Miners lifted the FTSE firmly higher today, getting the week off to a positive start despite the latest developments in Eastern Europe.
The FTSE 100 closed up 37.18 points at 6,851.75.
The mining sector was driven upwards by comments from JPMorgan Chase & Co which upgraded its rating for the European mining sector from 'underweight' to 'overweight' on the back of falling costs and improving demand from China. A good performance on Chinese markets overnight also provided a lift.
However, upside was limited by developments over the weekend in Ukraine where regional referendums were held to vote on a declaration of 'self-rule'. Donetsk voters have backed a plan to break away from Ukraine but governments in Kiev, the US and the European Union (EU) have said the referendum was illegal.
Ukraine will hold presidential elections on May 25th.
"Weekend developments in Ukraine remain a concern for market participants who are currently managing risk appetite appropriately by not putting all their chips on the table," said analysts at ETX Capital earlier today.
Hiring intentions in UK near seven-year high, pay expectations steady
Back in the UK, the Chartered Institute for Personnel and Development's (CIPD) Spring 2014 Labour Market Outlook net employment balance increased to +26 from the reading of +16 in the Winter 2013/14 report. That was the highest score since autumn 2007.
Median pay expectations, excluding bonuses, however, were unchanged at 2%.
That came as the Confederation of British Industry (CBI) warned that despite its expectations the economy should expand by more than previously forecast this year, it believes lawmakers risk derailing the recovery with political wrangling and short-termism.
UK gross domestic product (GDP) should grow by 3% in 2014, up from a previous prediction of 2.6%, according to forecasts by the CBI. However, it said political uncertainty and whims pose a major risk to the revival.
Rio Tinto on JPMorgan comments
Rio Tinto was in the lead after JPMorgan named it a top pick, alongside BHP Billiton, while others such as Antofagasta, Fresnillo and Anglo American were also making strong gains.
easyJet was also flying higher following a downbeat performance at the end of last week and ahead of its half-year results tomorrow.
Meanwhile, BSkyB fell after saying that it is in talks with 21st Century Fox regarding the potential acquisition of the latter's pay-TV assets in Germany and Italy, Sky Deutschland and Sky Italia. Analysts said that shareholders may be disappointed that a bid from Fox for BSkyB itself did not materialise.
Meanwhile, an announcement made today that Virgin Media has extended its relationship with Sky for a further five years pushed BT shares firmly into the red.
A statement released by Virgin Media read: "With Sky customers needing to have a separate contract with BT to watch BT Sport, and BT customers unable to watch the majority of the Sky Sports channels, Virgin Media is THE place for what promises to be a major summer of sport."
Also in the red Barclays, which was today hit with the news several of its former bank executives are reportedly set to be questioned by the Serious Fraud Office over dealings with Qatar.
Ex-chief executives Bob Diamond and John Varley, along with other former senior members of management, will be grilled by the regulator, according to the Financial Times. |
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FTSE 100 - Risers
Rio Tinto (RIO) 3,340.00p +4.75%
Antofagasta (ANTO) 796.00p +3.51%
Petrofac Ltd. (PFC) 1,218.00p +3.48%
BHP Billiton (BLT) 1,948.00p +2.72%
easyJet (EZJ) 1,730.00p +2.67%
ARM Holdings (ARM) 909.50p +2.65%
Mondi (MNDI) 1,040.00p +2.36%
Anglo American (AAL) 1,641.50p +2.34%
International Consolidated Airlines Group SA (CDI) (IAG) 393.80p +2.29%
Legal & General Group (LGEN) 227.20p +2.16%
FTSE 100 - Fallers
British Sky Broadcasting Group (BSY) 868.50p -2.42%
BT Group (BT.A) 374.30p -2.14%
Barclays (BARC) 256.65p -1.35%
Sports Direct International (SPD) 759.50p -1.17%
ITV (ITV) 186.80p -1.16%
Coca-Cola HBC AG (CDI) (CCH) 1,434.00p -1.10%
Kingfisher (KGF) 415.60p -1.09%
Vodafone Group (VOD) 224.45p -1.01%
Tesco (TSCO) 293.95p -0.98%
Melrose Industries (MRO) 287.20p -0.86%
FTSE 250 - Risers
Perform Group (PER) 273.10p +7.82%
Vedanta Resources (VED) 968.00p +6.73%
Atkins (WS) (ATK) 1,347.00p +6.31%
Enterprise Inns (ETI) 145.00p +3.94%
Imagination Technologies Group (IMG) 198.40p +3.71%
Partnership Assurance Group (PA.) 127.50p +3.66%
Aveva Group (AVV) 2,272.00p +3.56%
Interserve (IRV) 690.00p +3.53%
LondonMetric Property (LMP) 146.50p +3.46%
Synthomer (SYNT) 267.00p +3.09%
FTSE 250 - Fallers
Supergroup (SGP) 1,065.00p -5.33%
Fisher (James) & Sons (FSJ) 1,320.00p -5.17%
Lonmin (LMI) 271.20p -4.07%
Debenhams (DEB) 79.00p -3.19%
Moneysupermarket.com Group (MONY) 182.90p -2.24%
Foxtons Group (FOXT) 305.00p -2.21%
Infinis Energy (INFI) 204.70p -1.87%
Dairy Crest Group (DCG) 460.50p -1.79%
Diploma (DPLM) 678.00p -1.74%
National Express Group (NEX) 274.30p -1.72% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks higher on hopes of ECB policy action - Inflation to remain below one per cent, says ECB's Constancio
- Donetsk and Luhansk back plans to leave Ukraine
- Mining rally boosts stocks
FTSE 100: 0.61%
DAX: 1.47%
CAC 40: 0.78%
FTSE MIB: 0.93%
IBEX 35: 2.12%
Stoxx 600: 0.75%
European stocks rose after European Central Bank (ECB) Vice President Vitor Constancio said inflation will probably stay below one per cent for an extended period, raising hopes of policy action next month.
Speaking at a conference in Vienna on the banking union, Constancio said the medium-term inflation outlook will be a key factor when the ECB considers changing policy amid low consumer prices.
"The burden of servicing the debt and reducing the debt ratio, when nominal (economic) growth is so low, it's a possible cause of drag," he said, according to Reuters.
"We just have to look that since mid-2012 - when inflation was well above 2% in Europe - until now when it is indeed below 1 and very likely will stay below 1% for quite some time, the effect of the appreciation of the euro during this period explains the reduction in a inflation rate by 0.5 percentage points," he added.
ECB policymaker Ewald Nowotny today said an interest rate cut alone would be enough to curb low inflation in the Eurozone. Inflation has held below 1% for seven months in a row.
Ukraine
Ukraine's Donetsk and Luhansk regions have backed plans to separate from the rest of the country, according to RIA Novosti. Governments in Kiev, the US and the European Union (EU) said the referendums were illegal.
The EU has expanded its sanctions in connection to the unrest in Ukraine today to include two companies and 13 people, Bloomberg said, citing an official. Ukraine plans to hold presidential elections on May 25th.
Miners rally
A gauge of miners jumped the most in almost four months after JPMorgan Chase & Co. recommended buying shares in the sector on signs of a recovery in Chinese demand. The broker said Rio Tinto Group and BHP Billiton were the most attractive stocks in mining.
Sky Deutschland advanced after British Sky Broadcasting said it is working on a deal to acquire control of the company.
Alstom gained on news Siemens may offer to transfer its rail-signaling unit to Alstom Transport as part of an improved bid to take over the firm.
Air France-KLM Group climbed after saying the number of passengers carried increased 1.8% in April to 6.7m.
The euro fell 0.01% to $1.3756.
Brent crude futures increased $0.369 to $108.290 per barrel, according to the ICE. |
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| | US Market Report | | US open: Stocks rise on M&A activity US stocks rallied as a surge in merger and acquisition deals lifted confidence in the recovery of the economy.
Hillshire Brands Co. advanced after agreeing to buy Pinnacle Foods Inc. for about $6.6bn including debt.
RadioShack Corp. edged higher after Standard General LP disclosed a higher stake in the retailer.
Sector peer Pfizer was also in focus after defending its proposed takeover of AstraZeneca as its Chief Executive prepared for questions from British lawmakers this week.
A pick up in deals activity offset fears surrounding the unrest in Ukraine.
Donetsk voters have backed a plan to break away from Ukraine but governments in Kiev, the US and the European Union (EU) have said the referendum was illegal.
Ukraine will hold presidential elections on May 25th.
Meanwhile, the yield on a 10-year US Treasury was two basis points higher at 2.64%. |
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| | Broker Tips | | Broker tips: Barclays, Capita, BSkyB, Lonmin Credit Suisse lifted its price target on Barclays to 275p from 260p as a result of its revised forecasts following its group strategy update last week.
The bank maintained its 'neutral' recommendation on the shares, saying that the stock "is fairly valued".
Panmure Gordon has hiked its target for Capita after a "solid" first quarter from the business process outsourcing firm, but has kept its 'hold' recommendation on the stock.
The broker has raised its target for the shares from 950p to 1,200p, saying there is good potential for earnings upgrades later on in the year. "However, with limited upside potential we maintain a neutral stance for now."
Credit Suisse has maintained an 'underperform' rating for BSkyB, highlighting the pros and cons with the company's potential acquisition of Sky Deutschland and Sky Italia from 21st Century Fox.
"We believe there would be some industrial logic for such a transaction, but highlight that, even assuming BSkyB increases leverage from 0.8x to 3x, equity financing of £3.2bn would be required and that some investors may be disappointed that Fox is perhaps not considering a bid for BSkyB, at least in the short - term," the bank said.
Investec has placed its forecasts for Lonmin under review after strike disruptions weighed on the platinum miner's first-half results. The broker has kept its 'sell' rating for the stock.
"The poor results are not a surprise in light of the strike. Management is experienced at recovering from such disruption so we hope for a smooth ramp up. However, until workers return, estimating the operational performance in the year ahead is exceptionally challenging for all parties." | | |
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