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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | LSE leads stocks higher as FTSE 100 extends gains - LSE leads financial stocks higher
- Dixons and Carphone announce 3.8bn-pound merger
- Data-heavy session ahead
- Japanese GDP surges in first quarter
techMARK 2,794.14 +0.04%
FTSE 100 6,886.04 +0.11%
FTSE 250 15,984.75 +0.06%
Strong gains from London Stock Exchange (LSE) and a merger between Dixons Retail and Carphone Warehouse gave UK stocks an initial lift on Thursday morning.
The FTSE 100, which closed at a fresh 14-year high of 6,878.49 on Wednesday, was trading 0.1% higher at 6,886 in early trading.
The index has not closed above this level since the last trading day of 1999 when it hit a record 6,930.20.
Investors were taking a positive approach ahead of what is set to be a data-heavy session for global financial markets, with consumer price inflation figures in the Eurozone and US likely to gain the most interest.
Also in the States, markets will be on the look-out for jobless claims data, a reading of regional manufacturing in New York and nationwide industrial production data.
Economic growth was also in focus today after it was revealed that annualised gross domestic product (GDP) growth in Japan surged to 5.9% in the first quarter, up from just 0.3% growth in the fourth quarter of 2013 and well ahead of forecasts.
The pick-up in growth was most likely due to a consumer buying spree ahead of a sales-tax hike which began in April, thus "it is likely that we will see subsequent weakness in the second quarter", according to Joshua Mahony, Research Analyst at Alpari.
LSE leads financials higher; Dixons Carphone merger
LSE rose strongly after it reported a 10% rise in annual revenue to £1.1bn helped by the acquisition of LCH.Clearnet business. While profits fell on the back of higher expenses due to the purchase, the company said it has identified significant cost savings as part of the integration.
Insurer Aviva was broadly flat after a "reassuring calm and stable" first quarter, with the value of new business growing solidly despite weather and regulatory developments.
Others in the financial sector such as Schroders and Hargreaves Lansdown were also making gains this morning.
However, Old Mutual was bucking the trend after first-quarter gross sales growth was limited to just 12% due to adverse currency movements. Growth would have been 24% at constant currencies.
The retail sector was broadly higher this morning after Dixons and Carphone Warehouse finally announced a £3.8bn 'merger of equals' after months of talks. The new company, to be named Dixons Carphone plc, is hoped to create a "world-class British retailer for the new digital age".
Oil explorer Tullow Oil underwhelmed with a positive update on drilling at its joint-owned Blocks 10BB and 13T in northern Kenya with Africa Oil.
Meanwhile, real estate investment trust Land Securities fell despite saying it is well positioned in a strong property market, amid robust valuation gains and an almost fully-let retail portfolio.
Telecoms giant Vodafone was hit by a downgrade from Goldman Sachs to 'neutral', while the US bank cut its target for the stock from 270p to 240p. |
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| | FTSE 100 - Risers
London Stock Exchange Group (LSE) 1,867.00p +3.66%
Schroders (SDR) 2,708.00p +3.48%
Fresnillo (FRES) 853.50p +2.03%
Sports Direct International (SPD) 777.00p +1.90%
Hargreaves Lansdown (HL.) 1,255.00p +1.78%
IMI (IMI) 1,596.00p +1.20%
Royal Bank of Scotland Group (RBS) 335.40p +1.08%
Associated British Foods (ABF) 2,994.00p +0.98%
Morrison (Wm) Supermarkets (MRW) 198.10p +0.92%
GlaxoSmithKline (GSK) 1,638.50p +0.92%
FTSE 100 - Fallers
Tullow Oil (TLW) 865.50p -2.04%
Land Securities Group (LAND) 1,086.00p -1.72%
Old Mutual (OML) 206.70p -1.29%
Anglo American (AAL) 1,621.00p -1.25%
Vodafone Group (VOD) 219.55p -1.15%
Pearson (PSON) 1,146.00p -1.12%
Ashtead Group (AHT) 827.50p -0.90%
ITV (ITV) 177.60p -0.84%
Rolls-Royce Holdings (RR.) 1,022.00p -0.78%
Aggreko (AGK) 1,689.00p -0.76%
FTSE 250 - Risers
Infinis Energy (INFI) 209.50p +3.66%
NMC Health (NMC) 486.20p +2.92%
Kier Group (KIE) 1,688.00p +2.55%
Xaar (XAR) 785.50p +2.41%
Evraz (EVR) 107.50p +2.38%
Foxtons Group (FOXT) 319.90p +2.37%
Renishaw (RSW) 1,740.00p +2.29%
Marston's (MARS) 153.30p +2.20%
Just Retirement Group (JRG) 162.00p +2.08%
IP Group (IPO) 181.80p +2.02%
FTSE 250 - Fallers
Thomas Cook Group (TCG) 170.00p -4.82%
Genus (GNS) 1,055.00p -3.65%
Countrywide (CWD) 548.50p -3.18%
Alent (ALNT) 311.00p -2.78%
Vedanta Resources (VED) 962.50p -2.28%
Imagination Technologies Group (IMG) 211.90p -1.67%
Dixons Retail (DXNS) 50.10p -1.57%
Keller Group (KLR) 960.00p -1.34%
Informa (INF) 487.40p -1.28%
Cineworld Group (CINE) 341.30p -1.19%
FTSE TechMARK - Risers
Optos (OPTS) 200.00p +18.87%
Kofax Limited (DI) (KFX) 401.00p +1.26%
Innovation Group (TIG) 31.00p +0.81%
Vectura Group (VEC) 139.75p +0.72%
BATM Advanced Communications Ltd. (BVC) 17.75p +0.71%
Consort Medical (CSRT) 915.50p +0.60%
Puricore (PURI) 33.12p +0.38%
IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 188.19 +0.01%
FTSE TechMARK - Fallers
Anite (AIE) 93.00p -1.59%
Skyepharma (SKP) 242.50p -1.02%
Wolfson Microelectronics (WLF) 233.25p -0.74%
SDL (SDL) 314.75p -0.24%
Dialight (DIA) 885.00p -0.11%
Ricardo (RCDO) 692.50p -0.07% |
| | UK Event Diary | | INTERIMS
Euromoney Institutional Investor, Impax Asset Management Group, Marston's, Optos, Thomas Cook Group
QUARTERLY PAYMENT DATE
Abbott Laboratories, Marsh & Mclennan Cos Inc.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Bloomberg Consumer Confidence (US) (14:45)
Capacity Utilisation (US) (16:15)
Consumer Price Index (EU) (10:00)
Consumer Price Index (US) (13:30)
Continuing Claims (US) (13:30)
ECB Report (EU) (09:00)
GDP (Flash Estimate) (EU) (10:00)
Gross Domestic Product (GER) (07:00)
Harmonised Index of Consumer Prices (EU) (10:00)
Industrial Production (US) (16:15)
Initial Jobless Claims (US) (13:30)
Philadelphia Fed Index (US) (15:00)
Speech US Federal Reserve Chair Janet Yellen
GMS
Wessex Exploration
FINALS
Land Securities Group, London Stock Exchange Group, National Grid, Shanks Group, Syqic, Vedanta Resources
IMSS
Aviva, Kier Group, Merlin Entertainments , Old Mutual, Premier Farnell, Rank Group, Tarsus Group, UTV Media, Chime Communications, IP Group, Kier, Marston's, Merlin Entertainments, New World Resources, Rank, The Restaurant Group, Trinity Mirror, Vesuvius
SPECIAL DIVIDEND PAYMENT DATE
Photo-Me International
EGMS
Caracal Energy Inc.(DI)
AGMS
Balfour Beatty, BG Group, Cairn Energy, Caracal Energy Inc.(DI), Chime Communications, Churchill China, Computacenter, Direct Line Insurance Group, Fidelity European Values, French Connection Group, Hikma Pharmaceuticals, Hiscox Ltd (CDI), Lloyds Banking Group, LMS Capital, London Mining, Merlin Entertainments , Next, Octopus AIM VCT 2, Old Mutual, Petrofac Ltd., Pittards, Portmeirion Group, Prudential, Restaurant Group, Staffline Group, Stilo International, Target Healthcare Reit Ltd, Tri-Star Resources , Trinity Mirror, Ubisense Group, Unite Group, UTV Media, Vesuvius, Xcite Energy Ltd. (CDI)
TRADING ANNOUNCEMENTS
Dixons Retail
FINAL DIVIDEND PAYMENT DATE
BlackRock World Mining Trust, Kingspan Group, Ladbrokes, Melrose Industries, Sagicor Financial Corp., Tullett Prebon
Q1
Centamin (DI), New Europe Property Investments, Nord Gold NV GDR (Reg S), Societatea Nationala De Gaze Naturale Romgaz S.A. GDR (Reg S) |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise ahead of Eurozone inflation - Eurozone inflation data due
- US inflation figures to be released
- Yellen to speak in Washington
FTSE 100: 0.095
DAX: 0.25%
CAC 40: 0.07%
FTSE MIB: 0.34%
IBEX 35: 0.30%
Stoxx 600: 0.14%
European stocks gained ahead of a final report on Eurozone inflation which is expected to confirm consumer prices rose in April.
Inflation in the euro-area climbed 0.7% year-on-year rate in April, compared to 0.5% in the prior month, analysts predict ahead of revised data from Eurostat. However, it would still remain well below the European Central Bank’s (ECB) 2% target, adding pressure on the monetary authority to change its policy.
The ECB is next month expected to introduce rate cuts and other new measures to address low inflation.
ECB board member Peter Praet told German newspaper Die Zeit that the central bank was preparing a range of measures but failed to specify what action it would take in June.
“We could offer more long-term loans to banks, possibly against conditions," he said. "We could cut interest rates once again. A combination of measures is also thinkable."
He continued: "Negative interest rates are a possible part of such a combination of measures. In the context of the very low inflation rate in the euro area an appreciation is a problem, because a stronger euro cheapens imports and further depresses the inflation rate."
Later on in the session, the US will release its inflation data along with a report on initial jobless claims.
Federal Reserve Chair Janet Yellen will also speak to the US Chamber of Commerce in Washington.
Dixons merges with Carphone Warehouse
Dixons rallied as the UK consumer electronics retailer agreed to merge with Carphone Warehouse.
Cie. Financiere Richemont advanced after the maker of Cartier jewellery said it will raise its dividend by 40% to 1.40 francs a share as it reported is full-year results.
Hennes & Mauritz gained after the European fashion retailer reported higher sales than analysts had forecast for April.
Deutsche Post slumped as Europe’s largest mail service reported first-quarter earnings that missed analysts’ estimates.
The euro fell 0.21% to $1.3686.
Brent crude futures dropped $0.191 to $109.980. |
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| | US Market Report | | US open: Stocks pull back from records on earnings, wholesale prices
- Fossil, Deere, Plug Power fall after earnings
- Wholesale prices rose by most in a year
- Ukraine concerns weigh on sentiment
Dow Jones: -0.32%
Nasdaq: -0.24%
S&P 500: -0.22%
US stock markets declined on Wednesday with indices pulling back from record highs registered the previous session.
Investors were digesting a host of weak corporate earnings from Fossil, Deere and Plug Power and data showing the biggest rise in US wholesale prices in a year.
The Dow Jones Industrial Average, which closed at an all-time high of 16,715.44 on Tuesday, was trading 0.3% lower in early trading, while the S&P 500 fell 0.2% from a record of 1,897.45. The Nasdaq, meanwhile, slipped 0.2%.
The producer price index jumped a seasonally adjusted 0.6% last month following a revised 0.5% increase in March, the Labor Department said, compared to expectations for a 0.2% increase.
Another report showed mortgage applications climbed 3.6% in the week ended May 9th, following a 5.3% gain the prior week.
Meanwhile, markets continue to watch developments in Ukraine amid concerns over unrest after Russian Foreign Minister Sergei Lavrov said in an interview with Bloomberg that the country is as “close to civil war as you can get”.
He added that Russia has “no intention” of sending its troops anywhere but that the country is locked in the worst stand-off since the end of the Cold War against the US and Europe over Ukraine.
His remarks come ahead of the Ukraine presidential elections on May 25th.
Fossil, Deere, Plug Power decline early on
Fossil Group Inc. dropped sharply after the maker of watches and accessories guided to earnings in the second quarter that were short of analysts’ estimates. Investors were shrugging off a better-than-expected first quarter from the firm with profits falling less than expected.
Deere slipped as the agricultural-equipment maker said equipment sales will drop by about 4% for 2014, compared with a previous projection for a decline of about 3%.
Fuel cell manufacturer Plug Power sank after losses in the first quarter widened significantly on the back of stock warrant charges.
Macy’s advanced after the department store chain lifted its dividend after achieving an increase in first-quarter profits.
The 10-year Treasury yield fell five basis points to 2.56%.
West Texas Intermediate crude futures increased 0.56% to $102.27 per barrel, according to the ICE. |
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| | Newspaper round-up | | Thursday newspaper round-up: Exporters, Pfizer, Saudi Arabia Growing confidence among Britain’s army of exporters has fuelled hopes that the government can meet its ambitious target of doubling overseas sales to 1trn pounds by 2020. In their latest health check of the sector, the British Chambers of Commerce and DHL Express found that 71 per cent expected turnover to improve in the second quarter, while 40 per cent hoped to increase staff, the highest on record. – The Times
Pfizer's top scientist Mikael Dolsten on Wednesday embarked on a whistlestop tour of Britain’s leading scientific figures to garner support for an AstraZeneca deal. Mr Dolsten is understood to have met with Sir William Castell, chairman of the Wellcome Trust. He also plans to meet with Sir Paul Nurse, President of the Royal Society. Both have sounded public warnings about a potential deal. – The Daily Telegraph
Saudi Arabia and a clutch of Arab Gulf states responsible for a quarter of the world’s oil supplies have been told to provide their own security as the US and the UK slash defence spending. For the last 30 years the six members of the Gulf Co-operation Council (GCC) have drawn heavily on US and British military support to safeguard their security but these unwritten guarantees are now unravelling amid cuts to defence spending and a reduced dependence on Middle East oil. – The Daily Telegraph
Burberry has handed its new Chief Executive a “golden hello” in shares worth up to £7.5m and an annual pay package of up to £8.1m, according to reports. Christopher Bailey’s salary includes a £440,000 allowance for clothing and other items, £53,000 more than former boss Angela Ahrendts, who is leaving the British fashion house to join US technology giant Apple as its head of retail. The difference is believed to be because Ms Ahrendts has a car and driver that Mr Bailey will not use. – The Daily Telegraph
AstraZeneca’s Chief Executive insisted that a buyout by Pfizer was “not inevitable” as details emerged of shares and options worth £60m that could mature for the British company’s senior executives if a takeover is sealed. Pascal Soriot told MPs on the science and technology select committee yesterday that he did not intend to surrender to the US company without a fight. “We have complete confidence in our independent strategy and we are focused on delivering new drugs for patients,” he said. – The Times | | |
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