| | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London close: FTSE ends week in negative territory - FTSE closes down 24.68 points at 6,814.57
- Petrofac slumps
- NIESR ups UK growth forecasts
techMARK 2,782.32 -0.89%
FTSE 100 6,814.57 -0.36%
FTSE 250 15,885.21 -0.52%
UK stocks ended the final session of the week in the red, weighed by Petrofac and a negative start to the day's trading over in the US.
The FTSE 100 ended 24.68 points lower at 6,814.57.
Brenda Kelly, Chief Market Strategist at IG, described today's performance on the Footsie as "stalled", saying "each time we go towards 6,850 the buyers dry up and the index finds itself unable to get any further".
"Perhaps it's because it's a Friday, or due to Ukraine worries, or some poor earnings, but the result is that this is an index without a clear direction," she added.
Petrofac was certainly providing a significant drag, losing 15.2% after after the company warned on profits, saying its bottom line in 2014 is likely to weaken due to lower-than-expected earnings from its IES division. The company, which had previous guided to 'flat to modest growth' in net profit this year, now expects a decline of as much as 10.7%.
The losses amongst the wider market came despite some fairly upbeat macro news, which included predicted figures from the National Institute of Economic and Social Research (NIESR) that the economy will grow by 2.9% this year and 2.4% in 2015.
The figures, put forward in the organisation's latest quarterly economic review, mark a higher pace of growth than those given in January and, if correct, will mean that gross domestic product (GDP) will surpass its 2008 peak within the next few months. Previous predictions were for 2.5% growth in 2014 and 2.1% in 2015.
Meanwhile, UK industrial production slipped by 0.1% month-over-month in March, according to the Office for National Statistics (ONS). Manufacturing output, on the other hand, rose by 0.5% over the month (consensus: 0.3%).
To take note of, in its latest survey the Recruitment and Employment Confederation found that growth of permanent salaries accelerated further in April, at its most marked pace since July 2007. That shows that nominal pay is on the cusp of a strong recovery, Charles Stanley said.
MPC member Ian McCafferty called attention to the importance of such surveys in a recent speech.
Benchmark Irish 10-year yields dropped two basis points to 2.66% this afternoon having hit a record low of 2.64% earlier on. That put them below those on similarly dated Gilts for the first time in five years.
US stocks extend yesterday's losses
Looking abroad, stocks in the US were broadly lower, extending yesterday's losses, with Apple heading south on reports it is planning to acquire Beats Electronic for around $3.2bn.
Investors were also digesting the latest geopolitical developments as Russian President Vladimir Putin visited the Crimea region for the first time since its annexation in March, while heavy fighting continues in the eastern regions of Ukraine.
IAG flies lower despite narrowing losses
Following Petrofac lower, British Airways- and Iberia-owner IAG, which had flown higher early on, dropped lower this afternoon despite saying it had narrowed operating losses in the first quarter, helped by higher revenue and reduced fuel costs. Sector peer easyJet was also in the red.
AstraZeneca was also a notable faller as investors try to predict the outcome of Pfizer's takeover plans. Deputy Prime Minister Nick Clegg today said the British government must be sure that any commitments put forward by Pfizer are binding.
Meanwhile, department stores Marks & Spencer and Debenhams were trading higher this afternoon as high street peer John Lewis reported 14.5% annual sales growth in the week to May 3rd.
Credit Suisse drove Intertek Group higher after upping its broker rating to 'outperform' from 'neutral' and raised its target from 3,200p to 3,500p.
Deutsche Bank upped its target on Anglo American from 1,510p to 1,550p, helping the stock rise into the top five by last in today's session. |
| | iPad mini worth £269 for new trading accounts! | | A minimum volume is required. Terms and conditions apply. Find out more, click here. |
| | FTSE 100 - Risers
Marks & Spencer Group (MKS) 458.40p +2.00%
Pearson (PSON) 1,137.00p +1.70%
TUI Travel (TT.) 444.50p +1.51%
Sainsbury (J) (SBRY) 335.80p +1.39%
Intertek Group (ITRK) 3,027.00p +1.37%
Rexam (REX) 502.50p +1.13%
National Grid (NG.) 855.00p +1.12%
Diageo (DGE) 1,850.50p +1.09%
Unilever (ULVR) 2,639.00p +1.03%
Compass Group (CPG) 971.50p +0.99%
FTSE 100 - Fallers
Petrofac Ltd. (PFC) 1,177.00p -15.20%
International Consolidated Airlines Group SA (CDI) (IAG) 385.00p -4.84%
Shire Plc (SHP) 3,309.00p -2.68%
AstraZeneca (AZN) 4,600.50p -2.39%
Sports Direct International (SPD) 768.50p -1.91%
St James's Place (STJ) 786.50p -1.87%
Prudential (PRU) 1,369.00p -1.76%
easyJet (EZJ) 1,685.00p -1.75%
Royal Bank of Scotland Group (RBS) 325.20p -1.75%
ARM Holdings (ARM) 886.00p -1.72%
FTSE 250 - Risers
Genus (GNS) 1,085.00p +3.33%
Debenhams (DEB) 81.60p +2.00%
esure Group (ESUR) 255.00p +1.80%
COLT Group SA (COLT) 142.50p +1.79%
Greencore Group (GNC) 264.50p +1.73%
Perform Group (PER) 253.30p +1.32%
IP Group (IPO) 179.00p +1.30%
Thomas Cook Group (TCG) 180.40p +1.29%
Keller Group (KLR) 987.00p +1.23%
Dignity (DTY) 1,430.00p +1.13%
FTSE 250 - Fallers
Tullett Prebon (TLPR) 297.20p -5.86%
Supergroup (SGP) 1,125.00p -4.58%
Wood Group (John) (WG.) 770.00p -4.47%
Oxford Instruments (OXIG) 1,261.00p -3.89%
Soco International (SIA) 435.00p -3.55%
Infinis Energy (INFI) 208.60p -3.38%
Grainger (GRI) 216.40p -3.35%
ICAP (IAP) 387.70p -3.20%
Man Group (EMG) 97.60p -3.08%
Bank of Georgia Holdings (BGEO) 2,592.00p -3.03% |
| | PROVEN Trading Strategy - Currently running at 70% success rate | | Earn a tax free income trading, from just 20 minutes a day – no experience needed. Our powerful trading software will help you decide when to enter trades and how to maximise profits.
Register for a FREE brochure and trading guide, Click Here. |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Traders book profits ahead of Donetsk independence vote - Donetsk to vote on independence Sunday
- Irish 10-year bond yields drop below those on Gilts
- Capital flight in Russia may be worse than admitted by Moscow
- Banks and Technology lead retreat
FTSE 100: -0.36%
Dax 30: -0.27%
Cac 50: -0.66%
FTSE Mibtel 30: -1.56%
Ibex 35: -0.92%
Stoxx 600: -0.30%
European equity markets finished the session moderately lower, as investors booked profits following Thursday´s large rise, with traders keeping a close eye on developments in Ukraine ahead of this next Sunday´s independence vote in the Donetsk region.
Late in the afternoon Ukraine's Interior Minister Arsen Avakov said that 20 pro-Russian militants had been killed in fighting in the southeastern city of Mariupol after they stormed a police station.
Worth noting, Irish 10-year bond yields moved below those on Gilts of the same maturity at one point in the session, having reached an intra-day low of 2.65%, although by the end of trading they were at 2.68%.
The Wall Street Journal cited US lawmakers as last night having explained that when they talk of "sectoral sanctions" against Russian industries they are in fact referring to very targeted measures. In parallel, The Daily Telegraph referenced data from the ECB showing that capital flight out of the Russian Federation may be four times more than admitted to by the Kremlin, possibly complicating the ECB´s task.
For its part, Moscow was now asking Ukraine to pre-pay for June natural gas shipments.
Chancellor Angela Merkel and French Prime Minister Francois Hollande were due to meet on the Baltic coast on Friday. That meeting was to take place against the backdrop of the current situation, with some observers describing recent conciliatory comments from Russia´s President as an attempt to "white-wash" its role in the current crisis.
Weak industrial production in the Netherlands
Dutch industrial production contracted at a 3.8% month-on-month pace in March (consensus: -0.8%).
Germany´s trade surplus increased in March to €16.4bn, from €16.2bn in the month before (consensus: €17.4bn).
Banks and Technology lead declines
Telefonica reported a 14% drop in first quarter operating income before depreciation and amortisation to €3.93bn (consensus: €3.97bn).
Omnicom Group and Publicis Groupe dropped plans for their $35bn merger.
Belgacom unveiled first quarter operating profits of €412m, falling slightly shy of analysts´ projections.
Arcelor Mittal shares were slipping 3% after the steelmaker published its latest quarterly results.
Stock in wind turbine maker Vestas Wind Systems rallied after revealing a 17% increase in revenue.
From a sector stand-point, the worst performance was to be seen in the following industrial groups within the DJ Stoxx 600: Banks (-1.2%), Technology (-0.92%) and Oil (-0.67%).
Euro below 1.38
Front month Brent crude futures were off by 0.05% higher at $107.99 per barrel on the ICE.
The single currency was down by 0.50% at 1.3766 versus the US dollar. |
| | UKs booming asset class... | | Get 10% fixed returns for 10 years and see why the care home investment market is about to boom. Our unique opportunity in The Calder Valley is one not to be missed Register your details here to receive your FREE brochure |
| | US Market Report | | US open: Stocks trim losses, Apple falls on Beats rumours - Stocks pare early losses to trade flat
- Apple falls amid Beats takeover reports
- Omnicom, Publicis call off merger
- CBS, Ralph Lauren, GAP report earnings
Dow Jones: -0.01%
Nasdaq: 0.07%
S&P 500: -0.14%
US equity markets pared early losses to trade broadly flat on Friday morning as investors digested a flurry of corporate earnings and M&A activity amid a lack of economic data.
The S&P 500 was down 0.1% at 1,873 by 10:06 in New York, while the Dow Jones Industrial Average was more or less unchanged at 16,546.
Chris Beauchamp, Market Analyst at IG, said: "The inability of the Dow Jones to hold above 16,600 is a worrying short-term sign for the bulls and may well signal another swift retest of 16,400."
Investors were also digesting the latest geopolitical developments as Russian President Vladimir Putin visited the Crimea region for the first time since its annexation in March, while heavy fighting continues in the eastern regions of Ukraine.
Apple set to use some of its cash pile
Tech giant Apple was trading lower on reports that it is in talks to buy Beats Electronics, the audio products and music streaming group founded by hip-hop star Dr Dre and record producer Jimmy Iovine. Apple could spend up to $3.2bn for the company, famous for its trendy 'Beats by Dr Dre' headphones, according to media reports.
Ishaq Siddiqi from ETX Capital said that this would represent the biggest purchase yet by Apple and makes strategic sense for the company: "Apple are in need for a cool branding and the company's current audio equipment isn't exactly regarded as the best in industry while it's streaming music service is under threat by rivals like Spotify and Google Play."
Omnicom was trading flat after having pulled its proposed $35bn merger with rival Publicis to create the world's biggest advertising company.
TV group CBS dropped after first-quarter sales fell by a worse-than-expected 4.6% to $3.86bn, missing the $3.92bn consensus forecast, as ad revenues dropped 12%.
Shares in Ralph Lauren were moving sharply lower after the fashion retailer warned that next year's operating margins will weaken as a result of continued investment in infrastructure and higher advertising and marketing spending.
Sector peer GAP was headed the other way, having announced that quarterly earnings per share would come in at between 56 and 57 cents in the latest quarter, well ahead of forecasts.
West Texas Intermediate futures were up 0.52% at $100.78 a barrel on the NYMEX.
10-year US Treasury yields were flat at 2.62%. |
| | Losing Interest? | | You could earn more with a Stocks & Shares ISA. Grab a ready-made package or pick your own at The Share Centre.
Capital at risk. Tax benefits of ISAs may change. |
| | Broker Tips | | Broker tips: IAG, Serco, Grafton, Tullett Prebon British Airways and Iberia owner IAG is 'clearly making progress', according to Hargreaves Lansdown Stockbrokers which said that reduced losses in the first quarter were better than forecast.
Hargreaves said that hopes of a return to a payment of a dividend "are moving onto the agenda". It added: "For now, with the group's restructuring ongoing and the recovery in the global economy still broadly intact, analyst consensus opinion remains highly favourable in tone (strong buy)."
UBS has cut its recommendation for Serco from 'neutral' to 'sell', saying that the stock's valuation does not reflect the uncertainty surrounding the outsourcing group's earnings.
"There is a restructuring story waiting to emerge at Serco, and management change can be a positive catalyst as we have seen previously at the likes of Rentokil or Filtrona, but in the short/medium-term we see the risk/reward as skewed to the downside."
Investec has upgraded Grafton Group from 'add' to 'buy' after a "strong start to the year" by the builders merchant and DIY company.
"We continue to believe Grafton's premium rating is justified by its superior growth profile relative to peers," said Analyst Tom Holmes.
Numis Securities said there was "yet more bad news" for Tullett Prebon shareholders on Friday after the interdealer broker announced a weak first quarter and said it would slash jobs.
"With the 7,000 redundancies in BarCap being a sign of the times things are expected to get worse before they get better as interdealer brokers suffer more when investment banks have fewer staff than when investment banks profitability is under pressure," Numis said. | | |
New ADVFN Service - FREE Reports Get your free report on Isa's, Investment Trusts, Funds,
Sipps Travel and Cars - FREE and Easy service CLICK HERE
To advertise in the Euro Markets Bulletin please contact patrick@advfn.co.uk |
| | | | | | | To unsubscribe from this news bulletin or edit your mailing list settings click here. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +44 (0) 207 0700 961. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49 | |
No comments:
Post a Comment