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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: Barclays leads FTSE 100 higher ahead of central bank decisions - Barclays gains on job-cut announcement
- Busy day for corporate earnings/updates
- Yellen, Putin comments in focus
- Focus turns to BoE and ECB ahead of policy decisions
techMARK 2,799.70 +0.31%
FTSE 100 6,827.33 +0.45%
FTSE 250 15,963.95 +0.52%
UK stocks rose on Thursday morning amid a flurry or corporate earnings and updates, as investors focused on central banks and an easing of tensions in Eastern Europe.
Barclays was among the best performers early on after unveiling a major restructuring programme which includes thousands of jobs cuts. BT and Barratt Developments were also in demand after their updates, while Standard Chartered, Sage, WM Morrison and Centrica fell.
The FTSE 100 was trading 0.5% higher at 6,827 in early trading; it has not closed above this level since late February.
Markets were tracking gains made on Wall Street on Wednesday evening after Federal Reserve Chair Janet Yellen said that the central bank will continue to stimulate the US economy with inflation and the labour market still far away from targets. Meanwhile, she said there were signs that a slowdown in the housing market is posing a fresh risk to the recovery.
Comments made yesterday by Russian President Vladimir Putin also helped sentiment after he signalled that he is open to discussing measures to resolve the crisis in Ukraine. He also said he has pulled Russian troops from the borders as he called on pro-Russian activists in Eastern Ukraine to postpone a planned referendum this weekend.
As for today's session, attention will be on policy decisions from the Bank of England and European Central Bank (ECB) later this afternoon, though the latter will be more closely watched.
Chief Market Analyst Michael Hewson from CMC Markets UK said: "Expectations are pretty low for any sort of action [from the ECB] today despite continued calls for further easing from bodies such as the OECD, and while inflation pressures are on the low side it still isn't immediately apparent what a rate cut would achieve, given that the only form of easing that might have an effect […] still remains a long way away at the moment, if it happens at all."
Barclays impresses with new strategy
Barclays gained after unveiling plans to cut 14,000 jobs across the group as part of a strategy update aimed at creating a "leaner, stronger" bank. In what it described as a "bold simplification" of the group, Barclays said it would become a focused international bank, costing it a further £800m, in addition to the original £2.7bn announced in February 2013.
Domestic banking peers Lloyds and RBS were also higher.
However, emerging markets-focused bank Standard Chartered fell after saying that profits declined by a "high single-digit percentage" in the first quarter amid continuing weakness in local currencies.
Software firm Sage underwhelmed despite saying it remains confident of achieving targets for the full-year following a 5% increase in half-year revenue.
UK supermarket chain WM Morrison has held on to its full-year targets but blamed heightened competition across the industry for a slump in sales in its first quarter, causing shares to fall this morning.
Energy company Centrica, owner of British Gas in the UK and Direct Energy in the US, was also lower after cautioning of a reduced full-year outlook for earnings in 2014 due to challenging conditions on both sides of the Atlantic.
BT rose strongly after its new TV sport channels underpinned record fourth-quarter consumer revenues, helping the UK telecoms group to ring up higher annual profits.
House-builder Barratt Developments gained on the back of comments that it was already on the way to hitting targets next year and beyond as it reported strong second-half trading.
Fashion retailer SuperGroup saw shares plummet after reporting a steep slowdown in sales growth in the fourth quarter and saying that full-year profits would be at the lower end of expectations. |
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| FTSE 100 - Risers
Barclays (BARC) 254.50p +4.60%
BT Group (BT.A) 386.90p +2.68%
Barratt Developments (BDEV) 384.00p +2.05%
AstraZeneca (AZN) 4,720.50p +1.93%
Royal Bank of Scotland Group (RBS) 331.60p +1.87%
International Consolidated Airlines Group SA (CDI) (IAG) 401.40p +1.83%
Mondi (MNDI) 1,010.00p +1.81%
Prudential (PRU) 1,400.00p +1.63%
Imperial Tobacco Group (IMT) 2,585.00p +1.41%
Old Mutual (OML) 205.90p +1.38%
FTSE 100 - Fallers
Sage Group (SGE) 407.80p -3.36%
Morrison (Wm) Supermarkets (MRW) 185.70p -2.67%
Centrica (CNA) 319.80p -2.14%
Ashtead Group (AHT) 847.50p -1.40%
Vodafone Group (VOD) 224.85p -0.84%
G4S (GFS) 248.10p -0.84%
Randgold Resources Ltd. (RRS) 4,667.00p -0.77%
Capita (CPI) 1,093.00p -0.55%
Rio Tinto (RIO) 3,230.50p -0.51%
Fresnillo (FRES) 816.00p -0.49%
FTSE 250 - Risers
Perform Group (PER) 257.90p +10.21%
NMC Health (NMC) 469.90p +3.59%
Diploma (DPLM) 692.00p +2.59%
Fisher (James) & Sons (FSJ) 1,427.00p +2.44%
Evraz (EVR) 106.60p +2.30%
Entertainment One Limited (ETO) 299.10p +2.26%
Kazakhmys (KAZ) 250.50p +2.12%
AL Noor Hospitals Group (ANH) 1,044.00p +2.05%
Grainger (GRI) 225.90p +2.03%
Derwent London (DLN) 2,812.00p +1.88%
FTSE 250 - Fallers
Supergroup (SGP) 1,140.00p -15.43%
TalkTalk Telecom Group (TALK) 290.70p -1.79%
Just Retirement Group (JRG) 160.50p -1.65%
Infinis Energy (INFI) 211.50p -1.63%
African Barrick Gold (ABG) 232.60p -1.52%
Ocado Group (OCDO) 307.10p -1.35%
Keller Group (KLR) 999.50p -1.24%
Afren (AFR) 163.20p -1.15%
RPS Group (RPS) 293.50p -1.15% |
| | UK Event Calendar | | INTERIMS
Sage Group
INTERIM DIVIDEND PAYMENT DATE
Animalcare Group, Symphony International Holdings Ltd.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Bloomberg Consumer Confidence (US) (14:45)
Continuing Claims (US) (13:30)
ECB Interest Rate (EU) (12:45)
Industrial Production (GER) (11:00)
Initial Jobless Claims (US) (13:30)
FINALS
Flowgroup
IMSS
Barratt Developments, Beazley, IMI, Intu Properties, Intu Properties, Morrison (Wm) Supermarkets, Perform Group, Promethean World, Provident Financial, RSA Insurance Group, Serco Group
SPECIAL DIVIDEND PAYMENT DATE
Symphony International Holdings Ltd.
AGMS
Aberdeen Asian Income Fund Ltd., Afarak Group (DI), Arbuthnot Banking Group, Ashley (Laura) Holding, Avocet Mining, BlackRock World Mining Trust, British Polythene Industries, Cambridge Cognition Holdings, Charles Taylor, Cineworld Group, Golden Prospect Precious Metals Ltd., Howden Joinery Group, Hutchison China Meditech Ltd, IMI, Jardine Matheson Holdings Ltd (Singapore Reg), Jardine Strategic Holdingd Ltd. (Singapore), Kazakhmys, Minera IRL Ltd., Morgan Sindall Group, Petards Group, Plant Health Care, Plus500 Ltd (DI), Premier Energy & Water Trust, Promethean World, Provident Financial, Resolution Ltd., Serco Group, Standard Chartered, Talvivaara Mining Company (CDI), Vitec Group, William Hill
TRADING ANNOUNCEMENTS
Supergroup
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Decision (12:00)
FINAL DIVIDEND PAYMENT DATE
British American Tobacco, Core VCT IV, Core VCT V, Downing Planned Exit VCT 8, Downing Planned Exit VCT 9, Pendragon
Q1
Afarak Group (DI), Avocet Mining, Bankers Petroleum Ltd.(CDI), Mood Media Corp. (DI), Randgold Resources Ltd |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Traders expectant ahead of ECB and BoE meetings - European stocks start the day higher
- No action expected from ECB
- HSBC watching Bank of England
- Euro nearly unchanged at 1.3925
FTSE 100: 0.33%
Dax 30: 0.52%
Cac 50: 0.42%
FTSE Mibtel 30: 0.84%
Ibex 35: 0.75%
Stoxx 600: 0.43%
All eyes will be on the European Central Bank and Bank of England policy meetings this morning.
Ahead of the former economists at Unicredit Research wrote to clients explaining that: "We expect no action today, as below-expectation inflation has been largely offset by accelerating economic recovery and the first signs of credit improvement. Some policy change is more likely in June, probably via liquidity/credit easing measures."
The Monetary Policy Committee, on the other hand, while not expected to take any actions at today´s meeting is being very closely followed given the strenth in sterling and worries in some corners as regards house prices in certain areas of the country.
In fact, HSBC said it was on alert for the Bank of England to intervene in the housing sector amid growing concern that a collapse in the booming London market could threaten Britain's economic recovery, The Daily Telegraph reported on Thursday morning.
Several Fed speakers are scheduled to take to the podium later in the day.
Data out overnight showed a surprise 0.9% year-on-year rise in Chinese exports for the month of April, well ahead of the 3% monthly drop which analysts had penciled in.
Repsol beats forecasts
Spanish petrochemical giant Repsol unveiled a 1.5% increase in quarterly adjusted net income to €532m; that came in well ahead of analysts´ forecasts.
Shares in Vallourec, the French manufacturer of steel pipes for the oil and gas industry, advanced 3% after unveiling first-quarter earnings that came in ahead of analysts´ estimates.
Tiremaker Pirelli has unveiled profits which fell short of projections.
From a sector stand-point the best performance was to be seen in the following industrial groups: Real estate (0.90%) and Financial services (0.88%).
Weak industrial production figures in Germany
Industrial production in Germany decreased by 0.5% month-on-month in March, according to the Federal Office of Statistics.
The consensus estimate had been for a gain of 0.2% over the month (4.2% year-on-year).
Euro steady at 1.3925 ahead of ECB
Front month Brent crude futures were down 0.241% at $107.87/barrel on the ICE.
The single currency was 0.09% higher at 1.3925 versus the US dollar. |
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| | US Market Report | | US close: Stocks rise after comments from Yellen and Putin - Yellen signals need for continued stimulus
- Putin pulls troops from border, calls for referendum to be suspended
- Dow and S&P 500 gain
- Internet stocks weigh on Nasdaq
Dow Jones: 0.72%
Nasdaq: -0.31%
S&P 500: 0.55%
US stocks ended Wednesday's session mostly higher as investors weighed comments from Federal Reserve Chair Janet Yellen and Russian President Vladimir Putin.
The Dow Jones Industrial Average gained 0.7% and the S&P 500 rose 0.6%, with both indices ending the day close to their record highs. However, the Nasdaq finished 0.3% lower on the back of a sell-off in the technology sector, particularly internet stocks.
Testifying to the Joint Economic Committee in Washington, Yellen said that the Fed will continue to stimulate the US economy with inflation and the labour market still far away from targets.
"A high degree of monetary accommodation remains warranted," she said.
Meanwhile, tensions in Eastern Europe eased somewhat on Wednesday following days of heavy fighting after Putin signalled that he is open to discussing measures to resolve the crisis.
He also said he has pulled Russian troops from the borders as he called on pro-Russian activists in Eastern Ukraine to postpone a planned referendum this weekend.
"The key question now is whether these separatists, who were emboldened by the annexation of Crimea, after a similar referendum there, will heed this call," said Chief Market Analyst Michael Hewson from CMC Markets UK.
In other news, Chinese online market-place Alibaba has filed for what may well become the largest US initial public offering ever.
Electronic Arts jumps, internet stocks drop
Video game group Electronic Arts jumped after fiscal fourth-quarter profits and sales came in ahead of expectations. The company also announced a $750m share buyback plan.
Daily deals and voucher company Groupon slid sharply after first-quarter losses widened by more than expected due to increased expenses. Other internet stocks such as Yahoo! and AOL also finished lower.
Meanwhile, social media messaging network Twitter was extending losses after an 18% slump on Tuesday after the six-month lock-up period which applied to 82% of its equity expired.
Shares in Whole Foods plummeted after the company cut forecasts amid slowing growth as competition rises in the natural and organic grocery industry. Co-Chief Executive John Mackey was cited as saying on a conference call that "competition is more intense right now than we've possibly ever experienced before".
Pharmaceuticals firm Corcept Therapeutics lost around half of its market value after stopping a late-stage trial of its psychotic depression drug after analysis showed its was unlikely to yield a positive result.
West Texas Intermediate futures were up 1.29% at $100.78 a barrel on the NYMEX.
The yield on a 10-year US Treasury was flat at 2.59%.
S&P 500 - Risers
Electronic Arts Inc. (EA) $33.95 +21.03%
Humana Inc. (HUM) $119.05 +8.43%
Mondelez International Inc. (MDLZ) $38.10 +8.18%
DIRECTV (DTV) $88.25 +7.98%
Pioneer Natural Resources Co. (PXD) $208.20 +5.09%
Chesapeake Energy Corp. (CHK) $29.61 +4.44%
Devon Energy Corp. (DVN) $73.06 +4.09%
FirstEnergy Corp. (FE) $33.89 +3.80%
AbbVie Inc (ABBV) $52.79 +3.69%
Molson Coors Brewing Co. Class B (TAP) $61.95 +3.65%
S&P 500 - Fallers
Whole Foods Market Inc. (WFM) $38.93 -18.81%
Perrigo Company plc (PRGO) $130.55 -8.70%
Yahoo! Inc. (YHOO) $34.07 -6.63%
First Solar Inc. (FSLR) $63.57 -5.75%
GameStop Corp. (GME) $35.84 -4.83%
Cognizant Technology Solutions Corp. (CTSH) $47.02 -4.43%
NetApp Inc. (NTAP) $33.70 -3.66%
FMC Corp. (FMC) $73.29 -3.57%
Garmin Ltd. (GRMN) $56.49 -3.20%
Priceline Group Inc (PCLN) $1,131.74 -3.13%
Dow Jones I.A - Risers
Unitedhealth Group Inc. (UNH) $77.91 +3.52%
American Express Co. (AXP) $87.98 +2.06%
Visa Inc. (V) $208.70 +1.63%
Johnson & Johnson (JNJ) $100.91 +1.41%
JP Morgan Chase & Co. (JPM) $54.05 +1.33%
3M Co. (MMM) $141.14 +1.33%
Verizon Communications Inc. (VZ) $48.10 +1.33%
Travelers Company Inc. (TRV) $91.07 +1.32%
General Electric Co. (GE) $26.53 +1.30%
E.I. du Pont de Nemours and Co. (DD) $68.05 +1.28%
Dow Jones I.A - Fallers
Merck & Co. Inc. (MRK) $55.84 -2.22%
Pfizer Inc. (PFE) $29.02 -1.39%
Walt Disney Co. (DIS) $80.29 -0.91%
Home Depot Inc. (HD) $77.08 -0.44%
International Business Machines Corp. (IBM) $189.30 -0.38%
Boeing Co. (BA) $130.35 -0.37%
Nike Inc. (NKE) $72.18 -0.10%
Wal-Mart Stores Inc. (WMT) $77.96 -0.06%
Nasdaq 100 - Risers
Activision Blizzard Inc. (ATVI) $21.01 +8.80%
Mondelez International Inc. (MDLZ) $38.10 +8.18%
DIRECTV (DTV) $88.25 +7.98%
TripAdvisor Inc. (TRIP) $83.99 +3.22%
Vimpelcom Ltd Ads (VIP) $8.34 +2.58%
Citrix Systems Inc. (CTXS) $60.13 +1.71%
Illumina Inc. (ILMN) $141.63 +1.50%
Kraft Foods Group, Inc. (KRFT) $56.70 +1.15%
KLA-Tencor Corp. (KLAC) $62.90 +0.96%
Staples Inc. (SPLS) $12.74 +0.95%
Nasdaq 100 - Fallers
Whole Foods Market Inc. (WFM) $38.93 -18.81%
Yahoo! Inc. (YHOO) $34.07 -6.63%
Cognizant Technology Solutions Corp. (CTSH) $47.02 -4.43%
Baidu Inc. (BIDU) $151.27 -4.16%
NetApp Inc. (NTAP) $33.70 -3.66%
Keurig Green Mountain Inc (GMCR) $92.21 -3.26%
Garmin Ltd. (GRMN) $56.49 -3.20%
Priceline Group Inc (PCLN) $1,131.74 -3.13%
Tesla Motors Inc (TSLA) $201.35 -2.86%
Discovery Communications Inc. Class A (DISCA) $72.72 -2.66% |
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| | Newspaper Round Up | | Thursday newspaper round-up: Housing, Barclays, Reckitt Benckiser HSBC said it was on alert for the Bank of England to intervene in the housing sector amid growing concern that a collapse in the booming London market could threaten Britain's economic recovery. The bank's finance director, Iain Mackay, said: "What we are all are all waiting for or perhaps wondering about is, as London or the south-east continues to move ahead, will the financial policy committee or the Bank of England reflect on how they wish to put some controls on lending into that sector? "I don't think anybody has got a line of sight there. It's something the Bank [of England] is going to think through." - The Guardian
Barclays may announce up to 20,000 job cuts as part of its strategy to restore the bank to full profitability. The scale of the losses will be far higher than the figure flagged earlier this year. The controversial investment banking arm is likely to bear the brunt but the retail division will also come under scrutiny and City analysts expect hundreds of the group's 1,500 branches to be closed within the next year. - The Times
A new wave of shareholder activism is building after investors in some the country's best-known companies showed their disapproval over boardroom pay. Consumer goods giant Reckitt Benckiser suffered the biggest revolt of the day on Wednesday with more than one in three investors actively voting against the executives' remuneration report at the Dettol to Nurofen maker. A further one in five voted against the FTSE 100 company's forward-looking remuneration policy. - The Daily Telegraph
Cadbury owner Mondelez International is joining forces with Douwe Egberts maker DE Master Blenders 1753 to brew up the biggest coffee firm in the world. Master Blenders is paying £3bn to snap up Mondelez's coffee business, which includes Kenco, to create Jacobs Douwe Egberts. It will be the world's biggest pure-play coffee firm with annual revenues of over £4bn. Mondelez will have a 49% stake. It hopes to tap in to growing consumer demand for coffee and take on arch-rival Nestlé, maker of Nescafé. - The Daily Express
First-time buyers will need permanent help from the state to get on to the housing ladder once interest rates start to rise, putting pressure on the government to keep subsidy schemes designed to lift Britain out of recession in place. Lombard Street Research, a leading economic consultancy, has warned that the Help to Buy scheme may have to become a permanent feature of the housing market when the interest rate begins to climb from its record low of 0.5%. - The Times
King Digital, the newly floated British games firm behind Candy Crush Saga, has seen its shares plunge 13% after revealing a $63m drop in revenues from the hit smartphone title as players begin to lose interest. Nervous investors disregarded an overall return to revenue growth at King Digital, which has lost nearly a quarter of its stockmarket value since floating on the New York Stock Exchange in March. - The Guardian | | |
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