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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: Stocks inch towards two-week high ahead of US data - Smith & Nephew up as M&A speculation continues
- Kingfisher disappoints with Q1 results
- FTSE 100 on track to hit two-week high
- Chinese stimulus, US GDP in focus
- Rates to rise "sooner rather than later", says MPC's Weale
techMARK 2,803.00 +0.11%
FTSE 100 6,866.03 +0.22%
FTSE 250 15,947.93 +0.08%
UK markets opened with small gains on Thursday despite weakness across European indices, with London stocks on course to close at their highest level in two weeks.
The FTSE 100 was trading 0.2% higher at 6,866 in early trading. The benchmark index has not finished above this level since May 14th when it settled at a new 14-year high of 6,878.49.
"When a lurch to the upside loses momentum, it is fairly normal to see a retracement of sorts as profits are booked and bears catch a whiff of the honey," said Jonathan Sudaria, a dealer at Capital Spreads.
"In this instance however, the sell-off is showing little sign of materialising. Investors have reached the summit of the mountain and who can blame them for taking a session or two to admire the view."
Markets were awaiting key macro data from the States with revised US economic growth estimates for the first quarter due out at 13:30. The market widely expects annualised growth to be revised down to -0.5%, from the initial reading of +0.1%. "Weaker private inventories and business structures are likely to drive the revision," according to analysts at UniCredit.
Speculation surrounding a new round of Chinese stimulus could be a factor behind the positive moves seen this morning. Analysts at Barclays said they see an "increasing probability that more significant monetary easing […] will be announced in the coming weeks".
Comments from Monetary Policy Committee member Martin Weale were in focus today after he said policymakers will need to lift interest rates from record-low levels "sooner rather than later".
In an interview with the Financial Times that will likely bring forward expectations of a rate raise, Weale said the central bank must act soon to avoid a sharper and more painful tightening in policy in the future. "If you want to have baby steps you do have to start sooner," he told the UK paper.
Smith & Nephew gains, Kingfisher slumps
Medical device maker Smith & Nephew was a high riser again after reports yesterday suggested that US peer Stryker was working on a bid of the firm. While the rumours were denied by Stryker, Smith & Nephew's share price was continuing to extend gains this morning.
DIY retailer Kingfisher dropped despite hailing a "strong start to the year" with retail profits up 20% in the first quarter. However, strong growth in the UK and Poland overshadowed continued weakness in its second-largest market, France.
Aggreko the temporary power and temperature control services group, was a heavy faller after saying that interim Chief Executive Officer Angus Cockburn will be replaced on a permanent basis by Centrica board member Chris Weston. Cockburn, who stepped in after previous boss Rupert Soames quit earlier this year, is "keen to seek fresh challenges", the company said.
UK water company Severn Trent reported annual earnings in line with consensus, although revenues were slightly short of expectations, causing shares to slip this morning.
Supermarket giant Tesco gained after completing the deal to create a joint venture with China Resources Enterprise, merging its Chinese operations with the largest food retailer in the country. |
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| | FTSE 100 - Risers
Smith & Nephew (SN.) 1,021.00p +2.77%
Weir Group (WEIR) 2,625.00p +1.59%
IMI (IMI) 1,580.00p +1.22%
Diageo (DGE) 1,903.00p +1.20%
Royal Mail (RMG) 521.50p +1.07%
Rolls-Royce Holdings (RR.) 1,026.00p +0.98%
ITV (ITV) 186.40p +0.98%
Admiral Group (ADM) 1,421.00p +0.92%
Centrica (CNA) 333.80p +0.91%
British American Tobacco (BATS) 3,565.50p +0.81%
FTSE 100 - Fallers
Kingfisher (KGF) 393.00p -5.82%
Aggreko (AGK) 1,698.00p -2.92%
Johnson Matthey (JMAT) 3,269.00p -2.24%
Travis Perkins (TPK) 1,686.00p -1.86%
ARM Holdings (ARM) 914.50p -1.19%
Randgold Resources Ltd. (RRS) 4,395.00p -0.95%
Shire Plc (SHP) 3,429.00p -0.78%
Next (NXT) 6,625.00p -0.75%
Sage Group (SGE) 411.10p -0.72%
CRH (CRH) 1,661.00p -0.72%
FTSE 250 - Risers
Man Group (EMG) 98.60p +4.01%
Partnership Assurance Group (PA.) 130.90p +3.07%
TalkTalk Telecom Group (TALK) 323.10p +2.38%
Imagination Technologies Group (IMG) 228.40p +2.01%
Electra Private Equity (ELTA) 2,763.00p +1.66%
Alent (ALNT) 323.30p +1.48%
Direct Line Insurance Group (DLG) 250.20p +1.42%
Thomas Cook Group (TCG) 164.60p +1.42%
Drax Group (DRX) 635.50p +1.36%
Tate & Lyle (TATE) 683.50p +1.33%
FTSE 250 - Fallers
Home Retail Group (HOME) 192.50p -2.19%
JD Sports Fashion (JD.) 1,635.00p -2.04%
African Barrick Gold (ABG) 217.90p -1.94%
Ocado Group (OCDO) 359.90p -1.77%
International Personal Finance (IPF) 586.00p -1.60%
ICAP (IAP) 394.40p -1.47%
Synthomer (SYNT) 262.70p -1.31%
Rank Group (RNK) 158.00p -1.25%
Aveva Group (AVV) 2,285.00p -1.21% |
| | UK Event Calendar | | Thursday May 29
INTERIMS
Future
INTERIM DIVIDEND PAYMENT DATE
Wetherspoon (J.D.)
QUARTERLY EX-DIVIDEND DATE
Torchmark Corp.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Continuing Claims (US) (13:30)
Crude Oil Inventories (US) (15:30)
GDP (Preliminary) (US) (13:30)
Initial Jobless Claims (US) (13:30)
Pending Homes Sales (US) (15:00)
FINALS
Helical Bar, RapidCloud International , Severn Trent, Tate & Lyle, Paypoint
ANNUAL REPORT
Cyprotex, Steppe Cement Ltd
AGMS
Action Hotels, Action Hotels, All Asia Asset Capital Limited (DI), Arian Silver Corporation (DI), Belgravium Technologies, F&C Private Equity Trust, Inch Kenneth Kajang Rubber, JSC Acron GDR (Reg S), Metminco Ltd., Middlefield Canadian Income PCC, Netplay TV, North American Income Trust (The), Northbridge Industrial Services, office2office, Parity Group, Prosperity Voskhod Fund Limited, R.G.I. International Limited , Rotala, Smart Metering Systems, Tamar European Industrial Fund Ltd., Trap Oil Group
TRADING ANNOUNCEMENTS
Kingfisher
FINAL DIVIDEND PAYMENT DATE
Amlin, Reckitt Benckiser Group
Q1
Alpha Bank GDR (Reg S) USD, OJSC Megafon GDR (Reg S), Public Power GDR SA (Reg S)
UK ECONOMIC ANNOUNCEMENTS
Help to Buy II: mortgage guarantee data
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks little changed ahead of US reports - US GDP report due
- US initial jobless claims out
- China to accelerate spending
FTSE 100: 0.24%
DAX: -0.11%
CAC 40: -0.26%
FTSE MIB: -0.28%
IBEX 35: -0.65%
Stoxx 600: -0.04%
European stocks were little changed before a report that may show the US economy contracted in the first quarter.
The Commerce Department's gross domestic product (GDP) data is expected to reveal the world's biggest economy shrank 0.5% in the first quarter following a preliminary estimate of 0.1% annualised growth. GDP rose at a 2.6% annualised pace in the previous period.
Another US report is projected to show initial jobless claims for the week ended May 24th came in at 317,000, compared to 326,000 a week earlier.
Pending home sales may have fallen 8.9% year-on-year in April following a 7.4% drop in March, according to the consensus forecast.
In Europe, the Stoxx 600 index jumped 8.5% from a February 4th low through May 27th, rising to its highest level since January 2008. The equity benchmark has gained 1.9% in May after European Central Bank President Mario Draghi said policymakers are ready to ease monetary policy in June if necessary to combat low inflation and a stagnant recovery.
In China, the Ministry of Finance said it will accelerate this year's government budget spending and warned that the difficulties facing the economy must not be underestimated.
UbiSoft, Kingfisher
UbiSoft Entertainment advanced after saying its Watch Dogs game broke the company's record for first-day sales.
Kingfisher slumped after reporting first quarter profit that fell short of analysts' expectations. Tate & Lyle retreated after posting full-year profit that missed the consensus estimate.
The euro rose 0.01% to $1.3593. Brent crude futures increased $0.209 to $110.040 per barrel, according to the ICE. |
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| | US Market Report | | US close: Investors take a step back after recent gains - Slightly negative finish
- Investors take a breather after recent gains
- Eurozone money supply falls
Dow -0.25%
Nasdaq -0.28%
S&P 500 -11%
It was a slightly negative finish across the board for US stocks on Wednesday, with sentiment weakened slightly by worse than expected figures on Eurozone money supply and German unemployment.
Putting an end to four days of gains, the Dow Jones settled 43 points below the opening bell at 16,633, while the Nasdaq dropped 12 to end at 4,225. The S&P 500 suffered the least decline, falling just two points to 1,910.
That came as investors awaited a report due for release tomorrow which is expected to show the economy shrank in the first quarter, with the data widely anticipated to reveal that exports didn't rise as much as had been first believed and construction spending was less that previously thought.
Notably, benchmark 10-year Treasury yields slumped to their lowest closing level in nearly a year, dropping 7.5 basis points to 2.443%. On a monthly basis, the yield is likely to record its largest drop since January, driven lower by speculation and anticipation of economic growth and what this will mean for central bank monetary policies.
Eurozone money supply falls
The growth rate of so-called 'broad' money supply, or M3, eased to an 0.8% year-on-year pace in April from a revised 1% in March, according to the European Central Bank (ECB).
Analysts had been expecting a reading of 1.1%.
"The present rate of monetary growth reflects ongoing financial fragmentation in the Eurozone," according to Colin Bermingham from BNP Paribas.
Meanwhile, German unemployment rose for the first time in six months by a seasonally adjusted 23,937 to 2.905m in May, the Nuremberg-based Federal Labour Agency revealed. Economists had predicted a fall of 15,000. The adjusted jobless rate was unchanged at 6.7%, in line with forecasts.
"With business and investment sentiment potentially pointing to lower activity in the second quarter, today's unemployment data was another indication that the German economy is about to be dragged down by the poor growth in France and the periphery," said analyst Jasper Lawler at CMC Markets.
McDonald's, ICE
McDonald's declined despite unveiling plans to return $18bn to $20bn to shareholders between 2014 and 2016 through a combination of dividends and share repurchases.
Shares of IntercontinentalExchange Group (ICE) ended lower after it announced its intention to spin-off and float its pan-European exchange platform Euronext.
Toll Brothers gained as the US luxury-home builder raised its prices and delivered more properties during the latest quarter.
Twitter was one of only a small handful of tech stocks to rise after Nomura raised its rating on the shares to 'buy' from 'neutral'. The broker said of the decline in the group's share price this year that "enough is enough" and said the company was "a now-underappreciated digital media asset".
Michael Kors was ultimately higher as it reported better-than-expected fourth quarter profit and revenue, although the share price had a turbulent day.
Treasury yields move sharply lower
Front month West Texas crude futures were down by 1.02% to $103.05 per barrel on the NYMEX. Crude oil futures dropped 1.34% to $102.72 per barrel, while gold declined 0.49% to $1,259.30 per troy ounce.
S&P 500 - Risers
Wynn Resorts Ltd. (WYNN) $217.99 +4.87%
Valero Energy Corp. (VLO) $55.69 +3.63%
Windstream Holdings Inc (WIN) $9.70 +3.41%
Stryker Corp. (SYK) $82.64 +2.84%
Western Digital Corp. (WDC) $87.20 +2.79%
AutoZone Inc. (AZO) $533.34 +2.52%
St Jude Medical Inc. (STJ) $65.76 +2.51%
GameStop Corp. (GME) $38.21 +2.47%
Frontier Communications Co. (FTR) $5.95 +2.41%
Public Service Enterprise Group Inc. (PEG) $38.19 +2.25%
S&P 500 - Fallers
Allergan Inc. (AGN) $156.12 -5.39%
Health Care REIT Inc. (HCN) $62.35 -3.23%
Transocean Ltd. (RIG) $42.02 -3.09%
Dollar General Corp (DG) $54.60 -3.02%
Dun & Bradstreet Corp. (DNB) $103.72 -2.82%
eBay Inc. (EBAY) $50.39 -2.67%
United States Steel Corp. (X) $23.68 -2.47%
Peabody Energy Corp. (BTU) $16.76 -2.39%
Lowe's Companies Inc. (LOW) $46.71 -2.24%
Diamond Offshore Drilling Inc. (DO) $50.15 -2.22%
Dow Jones I.A - Risers
Intel Corp. (INTC) $26.88 +0.64%
JP Morgan Chase & Co. (JPM) $55.45 +0.56%
Cisco Systems Inc. (CSCO) $24.82 +0.45%
AT&T Inc. (T) $35.34 +0.37%
E.I. du Pont de Nemours and Co. (DD) $68.41 +0.37%
General Electric Co. (GE) $26.66 +0.34%
Verizon Communications Inc. (VZ) $49.74 +0.24%
Boeing Co. (BA) $134.33 +0.12%
United Technologies Corp. (UTX) $115.95 +0.09%
Procter & Gamble Co. (PG) $80.10 +0.02%
Dow Jones I.A - Fallers
McDonald's Corp. (MCD) $101.30 -1.04%
International Business Machines Corp. (IBM) $183.08 -0.92%
Caterpillar Inc. (CAT) $102.91 -0.74%
Unitedhealth Group Inc. (UNH) $78.58 -0.67%
Merck & Co. Inc. (MRK) $56.40 -0.51%
Johnson & Johnson (JNJ) $100.30 -0.51%
Coca-Cola Co. (KO) $40.58 -0.47%
Microsoft Corp. (MSFT) $40.01 -0.45%
Nike Inc. (NKE) $76.27 -0.44%
American Express Co. (AXP) $91.06 -0.36%
Nasdaq 100 - Risers
Wynn Resorts Ltd. (WYNN) $217.99 +4.87%
Western Digital Corp. (WDC) $87.20 +2.79%
Micron Technology Inc. (MU) $28.61 +1.96%
Broadcom Corp. (BRCM) $31.40 +1.45%
Xilinx Inc. (XLNX) $46.65 +1.35%
Twenty-First Century Fox Inc Class A (FOXA) $35.18 +1.15%
Vodafone Group Plc ADS (VOD) $34.96 +1.04%
Vertex Pharmaceuticals Inc. (VRTX) $71.72 +0.96%
Mylan Inc. (MYL) $48.87 +0.93%
Priceline Group Inc (PCLN) $1,270.02 +0.87%
Nasdaq 100 - Fallers
eBay Inc. (EBAY) $50.39 -2.67%
Keurig Green Mountain Inc (GMCR) $114.36 -2.10%
Symantec Corp. (SYMC) $22.06 -1.87%
Baidu Inc. (BIDU) $166.17 -1.86%
Intuitive Surgical Inc. (ISRG) $364.68 -1.80%
Tractor Supply Company (TSCO) $63.74 -1.64%
CA Inc. (CA) $28.90 -1.53%
Bed Bath & Beyond Inc. (BBBY) $60.51 -1.53%
Illumina Inc. (ILMN) $157.34 -1.48%
Autodesk Inc. (ADSK) $51.72 -1.43% |
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| | Newspaper Round Up | | Thursday newspaper round-up: Centrica, Pensions, Mitchells & Butlers British Gas is set to lose its second boss in quick succession with the imminent departure of Chris Weston, who has been poached by Aggreko, the FTSE 100 temporary power provider. Centrica, the owner of Britain's largest energy supplier, is expected to confirm the move in an announcement to the stock market this morning. The British Gas Managing Director has been the subject of tabloid newspaper revelations about his alleged domestic energy consumption, and the recent furore over energy prices was believed to have played a part in his decision, Sky News reported. – The Times
George Osborne may have to water down his flagship pension reforms as experts warn of a multi-billion pound black hole in the public finances caused by the changes. Treasury officials have been warned that the Government could miss out on as much as £24bn because of the pensions freedoms announced by the Chancellor in his Budget, sources have said. – The Daily Telegraph
Mitchells & Butlers is close to buying the Orchid pub company for more than £250m, according to reports. The owner of Harvester and All Bar One is in talks to take over up to 180 of Orchid's food-led venues, with a further 40 traditional pubs expected to enter administration, The Times claimed. M&B is believed to have offered £266m for Orchid, which runs Pizza Kitchen & Bar and The Great British Carvery. This is £10m to £15m more than private equity firms Colony Capital and Starwood. – The Daily Telegraph
The boss of Nationwide has called for the Bank of England to delay any action to cool the booming housing market even as Britain's biggest customer-owned lender unveiled a tripling in annual profits driven by a jump of nearly a third in mortgage lending. Nationwide Chief Executive Graham Beale said 'frenetic' housing market activity in London was starting to ease off while elsewhere in the country prices remained 2% below 2007 levels - or 21% when adjusted for inflation. - The Daily Mail
Only a third of Britain's small businesses have turned to their banks for financing in the past quarter, the lowest level on record, according to the latest data. Despite the Government's repeated efforts to boost bank lending for firms, the latest SME Finance Monitor found that 33% of small firms reported using external finance, which includes bank loans, overdrafts and credit cards in the first quarter. Instead 27% said they regularly use trade credit while 30% said they had used personal funds. BDRC, the consultants that have run the survey since 2010, said it was the lowest level for 12 quarters. – The Daily Telegraph
Apple wants to regain the beat in its music business, which is under assault from a stream of upstarts. The tech giant said on Wednesday it is buying Beats Electronics LLC for $3bn to bolster a music business that has lost some of its mojo, as streaming-music services encroached on the downloads dominated by Apple's iTunes service. – The Wall Street Journal Europe | | |
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