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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: UK stocks retreat from 14-year high, BoE in focus - FTSE 100 pulls back after nearing record
- BoE in focus ahead of inflation report
- UK employment data due out
- Compass unveils 1bn-pound cash return
techMARK 2,798.34 -0.21%
FTSE 100 6,857.97 -0.22%
FTSE 250 16,046.94 +0.05%
UK stocks declined on Wednesday morning as investors took profits after markets closed at a 14-year high the previous session.
The FTSE 100 was down 0.2% at 6,858 in early trading after hitting 6,873.08 on Tuesday, its best finish since reaching a record closing high of 6,930 at the end of December 1999.
"Whilst the markets have demonstrated a remarkable ability to shrug off the crisis in the Ukraine and interpret weak China data as a positive, there is a sense of foreboding about this upward move," said Jonathan Sudaria, a dealer at Capital Spreads.
The Bank of England (BoE) is due to release new inflation and growth forecasts later today as the central bank comes under pressure to raise interest rates amid soaring house prices.
The BoE has vowed to keep interest rates at a record low of 0.5% for an extended period but fears of a housing bubble have raised questions on whether the bank will move sooner to lift rates.
Ahead of the interest rate report at 10:30, data is expected to show the unemployment rate fell again to 6.8% in the three months to March from 6.9% in the preceding three months.
Employers during the period are projected to have added 248,000 new jobs, compared to 239,000 the previous quarter.
Compass jumps after special dividend
Catering giant Compass rose strongly this morning as the company hiked its interim dividend after a solid first half and unveiled a £1bn capital return to investors. "Strong cash generation has underpinned our investment in the business and our commitment to reward shareholders," said Chief Executive Richard Cousins.
Paper and packaging group Mondi was also higher after delivering a 13% increase in underlying operating profits in the first quarter despite a "mixed" trading environment and flat sales volumes.
Mining stocks were trading slightly lower this morning as sentiment in the industry was dampened by the news that over 200 people have been killed after an electrical fault at a mine triggered an explosion in western Turkey. Randgold Resources was a notable faller this morning.
UK car insurer Admiral declined after reporting a 7% drop in first-quarter revenue as premiums continued to fall.
Television network ITV underwhelmed with in-line ad revenues in the first quarter. However, the second quarter looks to beat expectations thanks to a spike in World Cup-related ads.
Healthcare services provider UDG Healthcare impressed as it raised its full-year profit guidance, helped by a decent first half and the recent acquisition of the KnowledgePoint360 business.
A number of heavyweight stocks were trading lower this morning after going ex-dividend, including Aberdeen Asset Management, Sage, GlaxoSmithKline, Shell, Glencore Xstrata, Kingfisher and J Sainsbury. |
| FTSE 100 - Risers
Compass Group (CPG) 1,029.00p +4.95%
Mondi (MNDI) 1,054.00p +2.23%
Aggreko (AGK) 1,710.00p +1.73%
Petrofac Ltd. (PFC) 1,235.00p +1.48%
RSA Insurance Group (RSA) 486.60p +0.72%
easyJet (EZJ) 1,670.00p +0.72%
Experian (EXPN) 1,072.00p +0.66%
United Utilities Group (UU.) 840.00p +0.66%
Babcock International Group (BAB) 1,248.00p +0.65%
Vodafone Group (VOD) 221.25p +0.64%
FTSE 100 - Fallers
ITV (ITV) 181.90p -4.76%
Sainsbury (J) (SBRY) 325.80p -3.89%
Glencore Xstrata (GLEN) 324.20p -1.95%
Randgold Resources Ltd. (RRS) 4,508.00p -1.81%
Aberdeen Asset Management (ADN) 428.00p -1.72%
Kingfisher (KGF) 410.90p -1.58%
GlaxoSmithKline (GSK) 1,617.00p -1.22%
Royal Dutch Shell 'B' (RDSB) 2,556.50p -1.16%
Admiral Group (ADM) 1,433.00p -1.04%
Royal Dutch Shell 'A' (RDSA) 2,346.50p -0.99%
FTSE 250 - Risers
3i Group (III) 393.60p +4.04%
Partnership Assurance Group (PA.) 128.00p +3.06%
Wood Group (John) (WG.) 792.50p +2.99%
Galliford Try (GFRD) 1,215.00p +2.71%
Booker Group (BOK) 154.10p +2.46%
UDG Healthcare Public Limited Company (UDG) 368.00p +2.22%
Senior (SNR) 293.70p +1.98%
JD Sports Fashion (JD.) 1,735.00p +1.88%
Euromoney Institutional Investor (ERM) 1,143.00p +1.60%
Kentz Corporation Ltd. (KENZ) 720.50p +1.55%
FTSE 250 - Fallers
Renishaw (RSW) 1,760.00p -4.30%
Carillion (CLLN) 355.00p -3.32%
Barr (A.G.) (BAG) 603.50p -2.35%
Fidessa Group (FDSA) 2,294.00p -2.17%
Perform Group (PER) 260.00p -1.89%
Supergroup (SGP) 1,089.00p -1.89%
PayPoint (PAY) 1,130.00p -1.74%
Pace (PIC) 378.90p -1.71%
Rank Group (RNK) 161.80p -1.64% |
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| | UK Event Calendar | | Wednesday May 14
INTERIMS
Compass Group, UDG Healthcare Public Limited Company
INTERIM DIVIDEND PAYMENT DATE
St Ives
INTERIM EX-DIVIDEND DATE
Aberdeen Asset Management, Character Group, Northern Venture Trust, Numis Corporation, Regenersis, Sage Group
QUARTERLY EX-DIVIDEND DATE
GlaxoSmithKline, MedicX Fund Ltd., Picton Property Income Ltd, Royal Dutch Shell 'A', Royal Dutch Shell 'B'
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Price Index (GER) (07:00)
Crude Oil Inventories (US) (15:30)
Industrial Production (EU) (10:00)
MBA Mortgage Applications (US) (12:00)
Producer Price Index (US) (13:30)
Corporate Goods Price Index (Japan)
FINALS
British Land Co, Datatec Ltd. (DI), ICAP, Stobart
IMSS
Admiral Group, Alpha UK Multi Property Trust, Catlin Group Ltd., Galliford Try, Mondi, Partnership Assurance Group , Premier Oil, Rathbone Brothers, Renishaw, Hilton Food, Informa, ITV, London Mining, Marshalls, Mondi, Novae, Premier Oil, Renishaw, Rathbones, Tarsus, Wood (John) Group
SPECIAL DIVIDEND PAYMENT DATE
BrainJuicer Group
SPECIAL EX-DIVIDEND PAYMENT DATE
Fidessa Group, Mallett
AGMS
888 Holdings, Anglogold Ashanti Ltd., Blue Capital Global Reinsurance Fund Ltd (DI), Cape, Corac Group, Dunedin Enterprise Investment Trust, Fidelity Japanese Values, Frenkel Topping Group, Fyffes, GVC Holdings, Hill & Smith Holdings, Hilton Food Group, ITV, Marshalls, Maven Income & Growth 4 VCT, Maven Income & Growth 4 VCT C Shares, Miton Group, Mondi, National Express Group, Novae Group, Premier Oil, Rathbone Brothers, Rentokil Initial, Riverstone Energy Limited , St James's Place, StatPro Group, Unilever, Wood Group (John), Xaar
UK ECONOMIC ANNOUNCEMENTS
BoE Inflation Report (09:30)
Claimant Count Rate (09:30)
Unemployment Rate (09:30)
FINAL DIVIDEND PAYMENT DATE
BrainJuicer Group, British Polythene Industries, Dairy Farm International Holdings Ltd. (Singapore), Hongkong Land Holding Ltd. (Bermuda), Hongkong Land Holding Ltd. (Jersey), Hongkong Land Holding Ltd. (Sing.Reg), Jardine Matheson Holdings Ltd (Singapore Reg), Jardine Matheson Holdings Ltd. (Bermuda), Jardine Matheson Holdings Ltd. (Jersey), Jardine Strategic Holdingd Ltd. (Singapore), Mandarin Oriental International (Singapore), Mobeus Income & Growth Vct, Serco Group, Standard Chartered
FINAL EX-DIVIDEND DATE
Air Partner, Alent, Anglo-Eastern Plantations, Auhua Clean Energy, BlackRock Smaller Companies Trust, British American Inv Trust, Carillion, Dillistone Group, Downing Three VCT C Shares, Downing Three VCT D Share , Downing Three VCT F Shs, Downing Two VCT 'C' Shs, Downing Two VCT D Share , Downing Two VCT F Shs , Fidessa Group, Glencore Xstrata, Hydro International, Inmarsat, JZ Capital Partners Ltd, Kingfisher, Management Consulting Group, Morgan Advanced Materials , Northbridge Industrial Services, Robinson, Sainsbury (J), Tandem Group
Q1
Anglogold Ashanti Ltd., New World Resources A Shares |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks little changed after German, French data - German and French inflation rises
- BoE to release inflation report
- UK jobs data out
FTSE 100: -0.21%
DAX: 0.01%
CAC 40: -0.06%
FTSE MIB: 0.02%
IBEX 35: -0.19%
Stoxx 600: -0.07%
European stocks were little changed after the release of German and French inflation data and before the Bank of England's (BoE) inflation report and UK jobs data.
German consumer prices on an annual European harmonised basis rose by 1.1% in April following a 0.9% increase a month earlier, in line with expectations.
French inflation increased by 0.8% last month, compared to a 0.7% climb in March, missing estimates of 0.9%.
The data comes amid speculation the European Central Bank might shake-up policy next month to address concerns over weak inflation.
In the UK, the BoE is due to release new inflation and growth forecasts as the central bank comes under pressure to raise interest rates amid soaring house prices.
The BoE has vowed to keep interest rates at a record low of 0.5% for an extended period, but fears of a housing bubble have raised questions on whether the bank will move sooner to lift rates.
Ahead of the interest rate report, which will be delivered by BoE Governor Mark Carney at a news conference today, data is expected to show the unemployment rate fell again to 6.8% in the three months to March from 6.9% in the preceding three months.
Employers during the period are projected to have added 248,000 new jobs, compared to 239,000 the previous quarter.
RWE, ICAP
RWE declined after the German power produce reported a drop in first-quarter earnings.
ICAP slipped after the broker posted full-year operating profit that missed analysts' estimates.
German wind-turbine maker Nordex advanced after raising its full-year forecasts.
The euro rose 0.10% to $1.3718.
Brent crude futures increased $0.328 to $109.600 per barrel, according to the ICE. |
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| | US Market Report | | US close: New record highs for Dow Jones, S&P 500 - Dow Jones, S&P 500 hit new record highs
- Retail sales miss expectations
- Elizabeth Arden plumments after poor Q3
Both the Dow Jones and S&P 500 set new record highs for a second straight session on Tuesday, albeit it with modest gains.
Notably, the S&P 500 temporarily surpassed the 1,900 mark for the first time, following March retail sales data.
The Nasdaq headed in the opposite direction following a strong rise in Monday's session.
David Madden, a Market Analyst at IG, said: "Equity markets are continuing to register higher highs despite weaker-than-expected retail sales. I suspect traders are in the bad habit of viewing bad news as good news. As the US corporate reporting season is winding down investors are focusing on the Federal Reserves soft policy."
That came as Ukraine's Defence Minister said it was in an "undeclared war" with Russia following the killing of seven of its soldiers by insurgents. The ministry reported that a convoy was attacked by more than 30 people, according to Interfax.
Retail sales mix expectations
On the data front, retail sales grew 0.1% in April following a revised 1.5% increase a month earlier, missing analysts' forecasts for a 0.4% gain.
However, the previous month was revised higher from the initial reading of 1.1% and marked the highest rise in four years.
"The 0.1% month-on-month increase in US retail sales in April gets the second quarter off to a soft start and suggests that real consumption growth in the quarter as a whole may be a bit weaker than we previously expected," Capital Economics said.
The National Federation of Independent Business (NFIB) index of US small business optimism climbed to 95.2 in April from 93.4 in March.
Import prices fell by 0.4% month-on-month in April, below the consensus forecast for a 0.3% gain.
The latest monthly Bank of America-Merrill Lynch fund manager survey highlighted the fact that average cash levels have jumped to 5% from 4.6%, well above the 4.5% level which fund managers often consider to be a 'contrarian' signal to 'buy'.
The broker further noted how over the past 11 months cash levels have been above 4.4% while the S&P 500 has moved towards 1,875 points from 1,650 points. A measure of investors' level of fear – the number taking "below average" portfolio risk - is now the highest since October 2012, it added.
AT&T off on reported interest in Direct TV
On the company front, DirecTV rallied following reports AT&T has held advanced talks to buy the company for about $50bn. AT&T, on the other hand, moved lower.
McKesson Corp. rose after posting an increase in fourth quarter profit to $1.58 a share, compared to $1.10 a year earlier.
Pfizer advanced following news the company may increase its bid for AstraZeneca.
Keurig Green Mountain Inc. gained after Coca-Cola Co. boosted its stake in the firm.
Beauty company Elizabeth Arden was a big loser after posting a bigger-than-anticipated third-quarter loss. The loss for the period totalled $26.4m, compared to a loss of $1.3m in the same period in 2013, hit by a 20% reduction in sales to $210.8m.
The group, which saw its shares fall more than 20%, revealed it had called on Goldman Sachs & Co. to help it seek out strategic alternatives to boost value for shareholders.
Treasuries back off
The 10-year US Treasury yield fell one basis point to 2.61%.
West Texas Intermediate crude futures rose to their highest level in almost three weeks, up 1.1% to $101.70 per barrel, according to NYMEX data. The price was buoyed by predictions of a weekly decline in supplies, as well as a technical bounce.
S&P 500 - Risers
L-3 Communications Holdings Inc. (LLL) $121.06 +4.50%
NetApp Inc. (NTAP) $34.80 +3.60%
McKesson Corp. (MCK) $180.02 +3.32%
Tenet Healthcare Corp. (THC) $46.04 +3.28%
CF Industries Holdings Inc. (CF) $248.93 +3.00%
GameStop Corp. (GME) $37.85 +2.80%
D. R. Horton Inc. (DHI) $23.07 +1.99%
Seagate Technology Plc (STX) $50.76 +1.97%
Devon Energy Corp. (DVN) $72.43 +1.96%
Freeport-McMoRan Copper & Gold Inc. (FCX) $35.56 +1.92%
S&P 500 - Fallers
TripAdvisor Inc. (TRIP) $86.09 -3.82%
Whirlpool Corp. (WHR) $151.54 -2.78%
Regeneron Pharmaceuticals Inc. (REGN) $283.45 -2.72%
Fastenal Co. (FAST) $48.06 -2.30%
Xilinx Inc. (XLNX) $46.18 -2.24%
Salesforce.Com Inc. (CRM) $52.26 -2.19%
Dollar Tree Inc (DLTR) $52.19 -2.10%
Charles Schwab Corp. (SCHW) $26.50 -2.03%
AutoZone Inc. (AZO) $533.06 -1.90%
Applied Materials Inc. (AMAT) $19.11 -1.85%
Dow Jones I.A - Risers
Microsoft Corp. (MSFT) $40.42 +1.13%
Travelers Company Inc. (TRV) $92.90 +0.93%
Caterpillar Inc. (CAT) $107.15 +0.89%
Merck & Co. Inc. (MRK) $55.75 +0.83%
Coca-Cola Co. (KO) $41.11 +0.71%
McDonald's Corp. (MCD) $103.53 +0.65%
Boeing Co. (BA) $133.45 +0.64%
Johnson & Johnson (JNJ) $101.01 +0.49%
Chevron Corp. (CVX) $125.85 +0.49%
Goldman Sachs Group Inc. (GS) $160.28 +0.46%
Dow Jones I.A - Fallers
Cisco Systems Inc. (CSCO) $22.86 -1.42%
Home Depot Inc. (HD) $77.27 -1.28%
AT&T Inc. (T) $36.20 -1.01%
E.I. du Pont de Nemours and Co. (DD) $67.69 -0.73%
Verizon Communications Inc. (VZ) $47.85 -0.64%
American Express Co. (AXP) $89.09 -0.64%
Walt Disney Co. (DIS) $82.08 -0.41%
3M Co. (MMM) $142.43 -0.27%
International Business Machines Corp. (IBM) $192.19 -0.20%
Procter & Gamble Co. (PG) $81.61 -0.15%
Nasdaq 100 - Risers
Keurig Green Mountain Inc (GMCR) $119.07 +7.55%
NetApp Inc. (NTAP) $34.80 +3.60%
Tesla Motors Inc (TSLA) $190.16 +2.97%
Sirius XM Holdings Inc (SIRI) $3.28 +2.34%
Seagate Technology Plc (STX) $50.76 +1.97%
Staples Inc. (SPLS) $13.48 +1.85%
Expeditors International Of Washington Inc. (EXPD) $44.60 +1.69%
Liberty Global plc Series A (LBTYA) $43.96 +1.41%
Catamaran Corp (CTRX) $42.92 +1.20%
Wynn Resorts Ltd. (WYNN) $206.00 +1.14%
Nasdaq 100 - Fallers
TripAdvisor Inc. (TRIP) $86.09 -3.82%
Nxp Semiconductors Nv (NXPI) $60.71 -3.05%
Regeneron Pharmaceuticals Inc. (REGN) $283.45 -2.72%
Tractor Supply Company (TSCO) $64.72 -2.68%
Baidu Inc. (BIDU) $156.07 -2.38%
Fastenal Co. (FAST) $48.06 -2.30%
Xilinx Inc. (XLNX) $46.18 -2.24%
Dollar Tree Inc (DLTR) $52.19 -2.10%
Vodafone Group Plc ADS (VOD) $37.06 -1.98%
Applied Materials Inc. (AMAT) $19.11 -1.85% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: Deflation, HSBC, GSK A sustained period of deflation in the Eurozone could derail Britain's recovery, a group of leading economists has warned. Almost half of the economists surveyed by the Centre for Macroeconomics, a joint study between the Bank of England, the National Institute of Economic and Social Research and three of the country's top universities, said that there was a significant risk of a sustained period of deflation across the Eurozone in the next two years. – The Times
HSBC is in last-minute talks with shareholders to reach a deal over its Chairman's pay and head off a damaging revolt at next week's annual general meeting. The bank is poised to stage a partial climb-down over plans to pay Douglas Flint a bonus in shares of up to £2.25m. HSBC has said his extra workload on regulatory reform justifies putting him in line for the pay-out this year. – The Guardian
Chinese police have accused a British executive in drugs maker GlaxoSmithKline's China unit of ordering his sales people to bribe doctors and hospital officials to use the company's products. Wednesday's announcement marks the first time a foreign employee in China of British-based GSK has been accused in connection with the bribery allegations against the company. – The Guardian
A senior trader arrested more than four years ago as Britain's biggest insider dealing investigation burst into the open has been cleared. Clive Roberts, the former head of equities at Exane BNP Paribas, was informed by the Financial Conduct Authority yesterday that the regulator would take no action against him. – The Times
Essar Energy, the FTSE 250 India-focused oil refiner, will be de-listed from the London Stock Exchange after its independent committee "reluctantly" backed a controversial hostile offer from the company's biggest shareholder. The company's fate comes despite widespread anger from heavyweight City institutions including Standard Life who argued the £900m take-private plan smacked of "cynical opportunism." – The Daily Telegraph
The Chief Executive of Paddy Power is to step down after almost a decade in charge, forcing the bookmaker to start searching for a new boss just as regulatory pressure from the Government grows. Patrick Kennedy will leave Paddy Power next April, declaring that "change is good" after 10 years as Chief Executive. – The Daily Telegraph | | |
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