| | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: Chinese data gives UK mining stocks a boost - Miners lead gains early on
- China manufacturing PMI rises, but house prices weaken
- Busy week ahead with ECB and US jobs in focus
techMARK 2,819.95 +0.27%
FTSE 100 6,856.96 +0.18%
FTSE 250 16,086.39 +0.48%
Rising mining stocks helped UK equity markets to gain on Monday morning, as risk appetite was given a boost by improved manufacturing figures from China.
London's FTSE 100 index was trading 0.2% higher at 6,857 early on.
China's 'official' manufacturing sector purchasing managers' index (PMI) rose to 50.8 in May, up from 50.4 the month before, according to the National Bureau of Statistics and China Federation of Logistics and Purchasing.
Growth in the manufacturing sector came in at a five-month high and was slightly better than the 50.7 consensus forecast.
David White, a trader at Spreadex, said that the decent performance on Asian markets overnight reflected "renewed strength for equities, buoyed by official PMI figures that showed a greater expansion for China than expected".
Nevertheless, enthusiasm was tempered slightly by the news that Chinese house prices fell for the first time in nearly two years in May. Average prices for new homes across 100 major Chinese cities decreased by 0.32% over the month to 10,978 yuan (£1,050) per square metre, the China Index Academy said. China's property sector accounts for 16% of gross domestic product.
Monday is set to be a busy day for economic data with the manufacturing PMI, mortgage approvals and lending figures due out in the UK. German inflation numbers and manufacturing data from the States are also due out later on.
Looking further out, investors are awaiting a pivotal policy decision from the European Central Bank on Thursday - with a number of stimulus measures on the cards - and the all-important change in US non-farm payrolls on Friday.
Mining stocks rise
Mining stocks such a Anglo American, Rio Tinto and Antofagasta were among the best performers this morning on renewed hopes for the Chinese economy. Rio announced this morning that it has completed the $1.02bn sale of its majority interest in the Clermont Mine in Australia, leaving buyer Glencore in charge.
Housebuilder Barratt Developments was on the rise after analysts at Goldman Sachs upgraded the stock from 'neutral' to 'buy'.
Property regeneration specialist St. Modwen Properties rose after saying strong momentum has continued with a growing pipeline of development opportunities. The outlook for the full year is unchanged, though profits in the first half were said to be significantly ahead of last year.
Fund manager Man Group gained after Berenberg raised its rating on the shares from 'sell' to 'hold', saying that the"enormous" restructuring efforts of the last three years are set to pay off.
Financial stocks were weak early on with insurers Standard Life, Friends Life, RSA and Aviva out of favour. Supermarket chains Tesco, J Sainsbury and WM Morrison also fell. |
| | Unmissable opportunity with the world's largest resort hotelier.. | | Get 7% returns guaranteed for 4 years with one of the world's most exclusive destinations. Our unique opportunity in Cape Verde is one not to be missed!
Register your details here to receive the FREE brochure
|
| FTSE 100 - Risers
Anglo American (AAL) 1,486.50p +1.99%
Glencore (GLEN) 328.65p +1.64%
Rio Tinto (RIO) 3,106.50p +1.62%
Royal Mail (RMG) 520.00p +1.56%
Barratt Developments (BDEV) 362.60p +1.51%
Travis Perkins (TPK) 1,702.00p +1.13%
BAE Systems (BA.) 427.90p +1.13%
Johnson Matthey (JMAT) 3,248.00p +1.12%
easyJet (EZJ) 1,547.00p +1.11%
BHP Billiton (BLT) 1,888.50p +1.10%
FTSE 100 - Fallers
Standard Life (SL.) 391.00p -2.25%
Sainsbury (J) (SBRY) 341.20p -1.42%
Aviva (AV.) 519.50p -0.86%
Friends Life Group Limited (FLG) 310.60p -0.86%
Rexam (REX) 529.50p -0.81%
Smith & Nephew (SN.) 1,038.00p -0.76%
Tesco (TSCO) 301.35p -0.72%
Royal Bank of Scotland Group (RBS) 344.50p -0.61%
Morrison (Wm) Supermarkets (MRW) 200.50p -0.59%
RSA Insurance Group (RSA) 477.40p -0.50%
FTSE 250 - Risers
African Barrick Gold (ABG) 223.90p +3.18%
Serco Group (SRP) 383.00p +3.07%
St. Modwen Properties (SMP) 378.50p +2.60%
JD Sports Fashion (JD.) 1,649.00p +2.23%
Ocado Group (OCDO) 395.20p +2.20%
Restaurant Group (RTN) 610.00p +2.01%
Man Group (EMG) 102.30p +1.99%
Greencore Group (GNC) 297.00p +1.92%
Fidelity European Values (FEV) 160.00p +1.91%
Afren (AFR) 155.40p +1.83%
FTSE 250 - Fallers
Evraz (EVR) 102.70p -2.00%
Redefine International (RDI) 58.05p -1.94%
Perform Group (PER) 272.00p -1.81%
Synthomer (SYNT) 258.80p -1.26%
Hellermanntyton Group (HTY) 306.29p -1.20%
Rathbone Brothers (RAT) 2,037.00p -1.16%
Fenner (FENR) 346.90p -0.89%
Supergroup (SGP) 1,158.00p -0.69%
Euromoney Institutional Investor (ERM) 1,181.00p -0.67% |
| | UK Event Calendar | | Monday June 02
INTERIM DIVIDEND PAYMENT DATE
Northern Venture Trust, Smart (J) & Co.
QUARTERLY PAYMENT DATE
JPMorgan Claverhouse Inv Trust
QUARTERLY EX-DIVIDEND DATE
Schlumberger Ltd., Total SA
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Construction Spending (US) (15:00)
ISM Manufacturing (US) (15:00)
ISM Prices Paid (US) (15:00)
PMI Manufacturing (EU) (09:00)
PMI Manufacturing (GER) (08:55)
FINALS
Atlantis Resources Limited (DI)
AGMS
Aeci 5 1/2% Prf, Anglo-Eastern Plantations, Billington Holdings, Global Brands S.A, Nighthawk Energy, Ruspetro
UK ECONOMIC ANNOUNCEMENTS
Consumer Credit (09:30)
M4 Money Supply (09:30)
M4 Sterling Lending (09:30)
Mortgage Approvals (09:30)
PMI Manufacturing (09:30)
FINAL DIVIDEND PAYMENT DATE
BAE Systems, Robinson
Q1
OSJC Center for Cargo Container Traffic Transcontainer GDR (Reg S)
|
| | 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 open: Stocks mixed after global manufacturing data - Chinese manufacturing grows
- Eurozone manufacturing
- German inflation data due
FTSE 100: 0.21%
DAX: 0.25%
CAC 40: -0.17%
FTSE MIB: -0.03%
IBEX 35: 0.37%
Stoxx 600: 0.19%
European stocks were little changed as investors weighed manufacturing data in China and the Eurozone.
China's 'official' manufacturing purchasing managers' index (PMI) rose to 50.8 last month from 50.4 in April, slightly higher than the 50.7 that was predicted by analysts. It grew at the fastest pace since December and was above the 50 level that indicates expansion.
The report signals that government stimulus to boost the slowing economy is working, lifting investor sentiment, according to Mike van Dulken, Head of Research at Accendo Markets.
However, another release in China revealed house prices fell for the first time in nearly two years in May. Average prices for new homes across 100 major Chinese cities decreased by 0.32% over the month to 10,978 yuan (£1,050) per square metre, the China Index Academy (CIA) said.
Separately, Markit's final reading for manufacturing PMI for the Eurozone in May was revised down to 52.2 in May from the flash estimate of 52.5, surprising analysts who expected the reading to remain unchanged. It compared to April's 53.4.
Elsewhere in the euro-area, German inflation data will be released today. Economists expect consumer prices to rise by 1.1% year-on-year in May, down from 1.3% inflation the previous month.
European Central Bank policymakers Yves Mersch, Daniele Nouy and Luis Linde will speak ahead of the monetary authority's meeting this Thursday. Many economists predict new policy measures will be introduced this week to address weak inflation and a stagnant recovery.
In the US this afternoon, two separate reports on manufacturing will be released from Markit and ISM.
Miners advance
A gauge of miners rallied, including Anglo American, after data showed Chinese manufacturing activity expanded.
Det Norske Oljeselskap ASA gained after agreeing to buy Marathon Oil Corp.'s Norwegian business for $2.7bn.
Air France-KLM Group jumped after a report that the airline will start a €1bn cost-cutting programme in 2015.
The euro fell 0.16% to $1.3613.
Brent crude futures rose $0.137 to $109.560 per barrel, according to the ICE. |
| | Film Investment opportunity from the Executive Producer of The King's Speech | | An EIS opportunity from Mark Foligno, executive producer of ‘The King's Speech’ which grossed over £250m worldwide. The opportunity allows UK investors to offset considerable tax liabilities. Click Here |
| | US Market Report | | US close: Dow, S&P at record highs despite weak data - Markets post meagre gains but finish at record highs
- Consumer spending and confidence data miss forecasts
- Google and GM in focus
Dow Jones: 0.11%
Nasdaq: -0.13%
S&P 500: 0.18%
US stocks finished broadly higher on Friday as traders shrugged off weak consumer spending and confidence figures to push indices to record highs.
"The 'Sell in May' fans will have been disappointed with the month so far, and with the European Central Bank and non-farms next week most traders will head into the weekend confident that renewed volatility lies ahead," said Brenda Kelly, Chief Market Strategist at IG.
The Dow Jones Industrial Average ended a rather subdued session just 0.1% higher, but finished at 16,717.17, ahead of the previous record set earlier in the month.
The S&P 500, meanwhile, extended gains to close up 0.2% at a new all-time high of 1,923.57.
The Nasdaq, however, fell 0.1% to 4,242.62.
In economic data today, the Commerce Department revealed that consumer spending fell by a seasonally-adjusted 0.1% in April, below the 0.2% growth expected by analysts. This followed a upwardly-revised 1% gain the month before, the largest increase since 2009.
Personal incomes increased by 0.3% last month as expected, following a 0.5% increase in March. April's increase was the smallest in 2014 so far.
Meanwhile, the final reading of the University of Michigan consumer confidence index for May disappointed. The figure was revised up from 81.8 to 81.9, but came in short of the 82.5 expected and well below the 84.1 recorded in April.
On a more positive note, regional manufacturing figures from Milwaukee and Chicago came in ahead of forecasts.
The data comes as Federal Reserve President Kansas City Esther George said the central bank should begin raising interest rates soon after it winds down its bond buying programme in response to improving economic conditions.
Google, GM in focus
Google declined as the company moved to comply with the European Union court's ruling this month that backs the right of citizens to have their online information deleted.
General Motors finished flat despite the automaker continuing to dominate headlines on the back of lawsuits associated with vehicle recalls.
Lions Gate Entertainment dropped sharply after the film production company disappointed analysts with weaker-than-expected quarterly results. Profits fell 70% on revenues that were 8% lower.
Retail chain Express was also a heavy faller after lowering its guidance for full-year earnings.
Mining stocks were mostly lower on Friday amid falling metal prices and concerns over a slowdown in China. US Steel and Freeport-McMoRan Copper & Gold finished in the red. |
| | Still in the dark over active tax planning? | | Our planning experts can help you reduce your tax liability! Register here to quality for a FREE financial audit and hear about government approved allowances and existing opportunities available. Its politically correct tax planning for non-celebrities! |
| | Newspaper Round Up | | Monday newspaper round-up: Shire, China housing, IGas Shire has lined up a $5bn credit facility from banks led by Citigroup to finance a takeover offer for NPS Pharmaceuticals, an American developer of a new drug for sufferers of a debilitating bowel condition. An initial approach to NPS by Shire has been rebuffed, according to insiders. However, a former London hospital doctor with ties to both companies is acting as a go-between. NPS won regulatory approval for a drug to treat short bowel syndrome — a condition in which the intestine is too short to absorb nutrients, usually after surgery for digestive illnesses. – The Times
Further fears that the Chinese economy is slowing have been raised by an index of house prices in the country's 100 biggest cities that recorded its first monthly drop for nearly two years. Concerns surrounding the Chinese property market, including speculation that prices in some provinces could collapse, have grown as housing inventories have soared and liquidity among smaller developers has evaporated. Chinese state media have been at pains to describe the property sector, which represents 16% of GDP and a quarter of all fixed-asset investment, as "too big to fail". – The Times
Fracking will take place in the East Midlands next year for the first time, under plans from shale gas explorer IGas. Andrew Austin, IGas chief executive, told the Telegraph it was preparing to submit planning applications to drill and frack to test the flow of gas at two new locations, one either side of the Pennines. "It is our intention to have permits in place such that we can drill and flow test wells at two sites – one in the North West and one in the East Midlands – in 2015," he said. – The Daily Telegraph
Takeover target AstraZeneca has received a much-needed boost from successful trials of new cancer drugs. Results from its treatment dubbed the 'great white hope' in the battle against lung cancer showed tumours shrinking or stabilising in 94% of cases. And a separate study found that a combination of two of Astra's drugs nearly doubled the length of time that certain ovarian cancer patients lived without their disease getting worse. - The Daily Mail
Britain must seize the opportunity to reform the European Union in the wake of elections that exposed deep divisions within the 28-nation bloc, the head of the Confederation of Business Industry will say on Monday. John Cridland, the director-general of Britain's biggest business lobby group, will tell an audience of business leaders that the voter backlash in the European Parliamentary elections over sluggish growth, savage cuts and high unemployment has "focused the mind" of politicians. – The Daily Telegraph
Saudi Arabia and the United Arab Emirates are thought to be readying a financial aid package of $20bn (£12bn) to boost Egypt's economy and support the incoming government of ex-Field Marshal Abdulfattah el-Sisi. The oil-rich Middle East powerhouse Arab nations, which combined account for more than a tenth of the world's supply of crude, have already held preliminary talks with authorities in Cairo to discuss how the line of funding will be structured, according to a report in the Arabic media over the weekend. – The Daily Telegraph
Business leaders are not doing enough to protect their companies from the risks posed by major global events, the Institute of Directors (IoD) has warned. In a report published today, the IoD said the increasingly inter-connected world means that government debt crises, extreme weather events and social instability can have knock-on effects for British firms. – Scotsman | | |
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