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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: Lack of catalysts sends UK stocks lower early on - Markets fall as traders await catalysts
- Sainsbury's gains despite drop in Q1 LFL sales
- Rolls-Royce hit by Emirates order cancellation
techMARK 2,846.37 -0.45%
FTSE 100 6,855.44 -0.26%
FTSE 250 16,103.59 -0.66%
UK stocks edged lower on Wednesday as markets continue to struggle for direction with global equity indices trading near record highs.
"The bulls and bears have struck up an easy truce at the moment, squaring off whilst waiting for a catalyst to jolt the markets either way," said Jonathan Sudaria, a dealer at Capital Spreads.
London's FTSE 100 was down around 0.3% at 6,855 shortly after the open this morning.
The FTSE 100 finished broadly flat on Tuesday, erasing losses made earlier in the day, but failing to regain the four-week high set on Monday.
"This could be a sign of flagging momentum and traders taking a breather after recent gains, supported by US markets finishing pretty much unchanged even if the Dow Jones Industrial Average did manage another record close," said Mike van Dulken, Head of Research at Accendo Markets.
On a relatively quiet day for economic data, UK unemployment figures will likely garner the most attention with the jobless rate expected to decline to 6.7% in the three months to April, from 6.8% the month before.
Sainsbury's fares better than rivals
J Sainsbury gave a cautious outlook for consumer trends on Wednesday as the supermarket chain reported a 1.1% fall in like-for-like (LFL) retail sales excluding fuel in its first quarter.
However, shares gained early on as the decline was not as bad as some analysts had feared, showing the company was more resilient than its rivals Tesco and Wm Morrison, who both reported a steeper slump in LFL sales in their first quarters.
The cancellation of a major order from Emirates Airlines has cut Rolls-Royce's order book by 3.5% or £2.6bn, causing the engineer's stock to fall early on.
Brewer SABMiller was lower this morning as the stock pulled back after an M&A-inspired boost on Tuesday after it was reported that a merger with European peer Anheuser-Busch InBev could be on the cards.
A number of stocks were trading lower this morning after going ex-dividend, including heavyweights Vodafone and Johnson Matthey. Booker, Intermediate Capital and LondonMetric Property also went ex-dividend today. |
| FTSE 100 - Risers
Sainsbury (J) (SBRY) 338.80p +2.73%
Fresnillo (FRES) 796.50p +1.14%
Anglo American (AAL) 1,463.00p +0.76%
Antofagasta (ANTO) 778.00p +0.65%
GlaxoSmithKline (GSK) 1,615.00p +0.59%
National Grid (NG.) 835.50p +0.54%
Admiral Group (ADM) 1,508.00p +0.53%
Unilever (ULVR) 2,699.00p +0.52%
BT Group (BT.A) 398.40p +0.48%
Randgold Resources Ltd. (RRS) 4,428.00p +0.48%
FTSE 100 - Fallers
International Consolidated Airlines Group SA (CDI) (IAG) 397.00p -3.78%
Vodafone Group (VOD) 202.40p -3.09%
easyJet (EZJ) 1,557.00p -2.26%
SABMiller (SAB) 3,387.00p -2.11%
Johnson Matthey (JMAT) 3,224.00p -2.01%
Rolls-Royce Holdings (RR.) 1,055.00p -1.95%
Travis Perkins (TPK) 1,685.00p -1.75%
Weir Group (WEIR) 2,634.00p -1.61%
Ashtead Group (AHT) 908.00p -1.52%
Wolseley (WOS) 3,357.00p -1.50%
FTSE 250 - Risers
African Barrick Gold (ABG) 222.30p +2.44%
Polymetal International (POLY) 545.00p +1.58%
Partnership Assurance Group (PA.) 131.60p +1.08%
esure Group (ESUR) 265.00p +1.03%
Kazakhmys (KAZ) 278.70p +0.98%
Betfair Group (BET) 1,032.00p +0.98%
Genus (GNS) 1,054.00p +0.86%
RPC Group (RPC) 646.00p +0.70%
NMC Health (NMC) 478.00p +0.63%
Centamin (DI) (CEY) 63.80p +0.63%
FTSE 250 - Fallers
Intermediate Capital Group (ICP) 397.40p -5.27%
Supergroup (SGP) 1,110.00p -3.48%
LondonMetric Property (LMP) 140.20p -2.64%
Booker Group (BOK) 139.20p -2.45%
Tullett Prebon (TLPR) 279.30p -2.21%
Unite Group (UTG) 422.80p -2.08%
Victrex plc (VCT) 1,763.00p -2.06%
BH Global Ltd. USD Shares (BHGU) 11.61 -1.94%
Premier Oil (PMO) 337.40p -1.92% |
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| | UK Event Calendar | | Wednesday June 11
INTERIM EX-DIVIDEND DATE
British Empire Securities & General Trust, Connect Group, Income & Growth VCT , Majedie Investments, Octopus Eclipse VCT 1, Shaftesbury, Topps Tiles, Victrex plc
QUARTERLY PAYMENT DATE
Unilever
QUARTERLY EX-DIVIDEND DATE
British Assets Trust, XP Power Ltd. (DI)
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
MBA Mortgage Applications (US) (12:00)
Treasury Budget Statement (US) (19:00)
Corporate Goods Price Index (JP)
FINALS
Betfair Group, Flybe Group, Greka Drilling Ltd (DI), Hyder Consulting, Castings, Creston,
SPECIAL EX-DIVIDEND PAYMENT DATE
Octopus Eclipse VCT 1
AGMS
Alexander Mining, Anglo Pacific Group, Auhua Clean Energy, Bisichi Mining, Centralnic Group , Densitron Technologies, Dillistone Group, EMED Mining Public Ltd., EU Supply, Flying Brands Ltd Units, Graphite Enterprise Trust, LiDCO Group, O'Key Group GDR (Reg S) (WI), OAO Severstal GDR (Reg S), PPHE Hotel Group Ltd, Proven Planned Exit VCT, Renovo Group, Serviced Office Group, Shaft Sinkers Holdings, Sunplus Technology Co Ltd.GDR (Reg S), Waterlogic
TRADING ANNOUNCEMENTS
Dolphin Capital Investors Ltd, Sainsbury (J)
UK ECONOMIC ANNOUNCEMENTS
Claimant Count Rate (09:30)
Unemployment Rate (09:30)
FINAL DIVIDEND PAYMENT DATE
Centrica, Morrison (Wm) Supermarkets
FINAL EX-DIVIDEND DATE
Acal, Alliance Pharma, Amiad Water Systems Ltd, Aurora Investment Trust, Big Yellow Group, Booker Group, Camellia, Camkids Group, Compagnie de St-Gobain SA, Edinburgh Inv Trust, Games Workshop Group, Intermediate Capital Group, Johnson Matthey, London Security, LondonMetric Property, Mears Group, Nature Group, Prezzo, Prime People, Restore, Scisys, Scottish Mortgage Inv Trust, Speedy Hire, Tribal Group, Vodafone Group, Weiss Korea Opportunity Fund Ltd
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks slide after World Bank downgrades global forecast - World Bank downgrades global economic forecast
- UK jobs data due
FTSE 100: -0.23%
DAX: -0.38%
CAC 40: -0.46%
FTSE MIB: -0.71%
IBEX 35: -0.46%
Stoxx 600: -0.29%
European stocks slumped as the World Bank downgraded its forecast for global economic growth.
The World Bank sees the global economy expanding 2.8% this year, down from a January predication of 3.2%. The lender projected slower growth for the US, Russia, China, Brazil and India. It left forecasts for world growth in 2015 unchanged at 3.4%.
On today's agenda, the focus will be on the release of UK jobs data.
A report on jobless claims in May is forecast to show a decline to 25,000 following a 25,100 fall in April.
The unemployment rate is projected to retreat to 6.7% in the three months to April from 6.8% in the previous quarter.
British employers may have added 270,000 jobs in the quarter to April after adding 283,000 over the prior three months, according to analysts' estimates.
Weekly average earnings are expected to edge down 0.9% over the three months due to base effects linked to the timing of companies´ bonus payments last year.
"These developments are consistent with measured wage growth in the economy," Barclays Research said.
Airbus, Rolls Royce slide as Emirates' cancels orders
Airbus dropped after saying that Emirates pulled out of its planned purchase of 50 A350-900 planes and 20 of the larger -1000 variant.
Rolls-Royce Holdings declined after saying Emirates' cancellation reduces its order book by about £2.6bn.
Vallourec retreated as the French producer of steel pipes for the oil and gas industry said 2014 earnings before interest, taxes, depreciation and amortisation will be about 10% lower than the previous year due to a fall in orders from Petroleo Brasileiro.
Inditex gained as the world's largest apparel retailer posted first-quarter net income that beat analysts' estimates.
The euro fell 0.04% to $1.3541.
Brent crude futures rose $0.291 to $109.840 per barrel, according to the ICE. |
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| | US Market Report | | US close: Correction concerns curbed as tech stocks provide boost - Indices tread water until late gain
- Tech stocks provide boost
- Concern of correction only weigh slightly so far...
Dow Jones Industrials: +0.02%
Nasdaq Composite: +0.04%
S&P 500: -0.02%
Having scorched to a succession of highs in recent weeks, US indices cooled their heels until just prior to Tuesday's close, helped by a scarcity of macroeconomic or corporate newsflow.
The Dow Jones squeezed out another record close, however, to finish up 2.82 points or 0.02% at 16,945.92. The tech-heavy Nasdaq fared marginally well, crawling 1.75 points or 0.04% higher to close at exactly 4,338.00. The Standard & Poors 500 dipped by a minimal 0.48 points or 0.02% to 1,950.79, ending its four-day winning run.
Strong performances from tech stocks may have been behind a late surge, helping investors ignore some concerns that a correction lower might be looming.
The Chicago Board of Trade's VIX index for implied volatility for options contracts on the S&P 500, hit seven-year lows just last Friday, indicating a periods of calm that historically had presaged stock market corrections.
Capital Economics wrote to clients on Tuesday explaining that low levels of volatility in financial markets reflect a high degree of confidence in the ability of the authorities to prevent crises and respond to shocks, expectations that any policy changes will be gradual, and a reduction in economic instability.
"Unfortunately, none of these factors can be taken for granted. What's more, extended periods of low volatility can themselves increase the chances of a crash."
However, while they see many possible risk factors, they admitted that "there are no obvious triggers on the horizon for a major correction".
Perhaps as if to underline their words, Uruguay – which has the second lowest investment grade rating from Moody´s - was planning to sell 36-year bonds.
Furthermore, the Financial Times cited hedge fund manager Stephen Jen, one of the co-founders of SLJ Macro Partners, as laying part of the blame for such low volatility at the feet of tougher bank regulations, which have increased the cost of trading.
Light day on the economic front
Job openings jumped by 4,455 in April after 4,166 openings in March. Analysts had predicted a 4,050 gain.
The National Federation of Independent Business' small-business optimism index increased to 96.6 last month from 95.2 in April, beating forecasts for a reading of 96.2.
Facebook gains at eBay's expense
eBay declined slightly after saying David Marcus will step down as the head of its PayPal unit to join Facebook. Facebook advanced on the news, with Marcus taking a newly created role to head up Facebook's Messenger service within its social network as well as the free Messenger mobile app.
Other internet and tech stocks also gained, with LinkedIn up 4.7%, Twitter up 2.6% and Apple 2.2% higher to a new 52-week high, boosted by reinvigorated analyst confidence of late.
RadioShack Corp. slumped on Tuesday after reporting a wider quarterly loss. Like many specialist retailers, the electronics specialist is battling structural issues, as shoppers increasingly either buy online or at larger outlets with more pricing power such as Best Buy, said analysts.
Also falling was Tyson Foods, as its takeover offer of $63 per share for rival Hillshire Brands proved to be the winning blow in a frenzied bidding battle. Many believe that Tyson has significantly overpriced its target and could find it difficult to justify the valuation in the long run.
Allergan Inc. edged higher as the Botox maker's board unanimously rejected a $53bn takeover from Valeant.
Molson Coors Brewing Co. gained as the North American beer company reported a jump in first quarter earnings.
Slot machine maker International Game Technology continued its rise - topping the S&P on the day - after news emerged on Monday that it had hired investment banks to explore a potential sale.
Yields climb higher
The 10-year Treasury yield rose four basis points to 2.64% - the highest level in a month as Treasury prices fell Tuesday.
West Texas Intermediate crude futures fell $0.06 to $104.35 per barrel, according to the ICE. The barrel broke $105 in intraday trading for the first time since March on speculation that the government will report on Wednesday that US supplies fell for a second week, according to Bloomberg.
S&P 500 - Risers
International Game Technology (IGT) $14.40 +9.17%
Analog Devices Inc. (ADI) $55.79 +5.88%
Molson Coors Brewing Co. Class B (TAP) $70.71 +5.36%
Facebook Inc. (FB) $65.76 +4.58%
Citrix Systems Inc. (CTXS) $64.15 +3.37%
Salesforce.Com Inc. (CRM) $53.06 +2.61%
Electronic Arts Inc. (EA) $35.70 +2.44%
Vulcan Materials Co. (VMC) $64.91 +2.38%
Monster Beverage Corp (MNST) $69.90 +2.37%
Apple Inc. (AAPL) $94.25 +2.20%
S&P 500 - Fallers
Cognizant Technology Solutions Corp. (CTSH) $47.47 -4.74%
C.R. Bard Inc. (BCR) $141.05 -4.73%
Tyson Foods Inc. (TSN) $36.07 -3.81%
Urban Outfitters Inc. (URBN) $33.39 -3.72%
Gilead Sciences Inc. (GILD) $79.54 -3.46%
Coach Inc. (COH) $39.58 -3.06%
Range Resources Corp. (RRC) $89.50 -2.97%
eBay Inc. (EBAY) $48.25 -2.92%
Valero Energy Corp. (VLO) $53.30 -2.81%
Sears Holdings Corp. (SHLD) $40.02 -2.34%
Dow Jones I.A - Risers
Merck & Co. Inc. (MRK) $58.49 +0.95%
Johnson & Johnson (JNJ) $104.10 +0.85%
JP Morgan Chase & Co. (JPM) $57.90 +0.84%
Visa Inc. (V) $214.25 +0.79%
Chevron Corp. (CVX) $125.34 +0.78%
Cisco Systems Inc. (CSCO) $25.00 +0.68%
Caterpillar Inc. (CAT) $109.31 +0.51%
Pfizer Inc. (PFE) $29.50 +0.51%
Travelers Company Inc. (TRV) $95.10 +0.46%
Coca-Cola Co. (KO) $41.07 +0.39%
Dow Jones I.A - Fallers
International Business Machines Corp. (IBM) $184.29 -1.04%
Walt Disney Co. (DIS) $84.75 -0.85%
United Technologies Corp. (UTX) $119.13 -0.80%
Boeing Co. (BA) $137.25 -0.51%
Wal-Mart Stores Inc. (WMT) $76.62 -0.51%
McDonald's Corp. (MCD) $100.88 -0.49%
Nike Inc. (NKE) $76.31 -0.47%
Microsoft Corp. (MSFT) $41.11 -0.39%
American Express Co. (AXP) $95.28 -0.30%
3M Co. (MMM) $144.97 -0.24%
Nasdaq 100 - Risers
Analog Devices Inc. (ADI) $55.79 +5.88%
Facebook Inc. (FB) $65.76 +4.58%
Illumina Inc. (ILMN) $175.40 +3.82%
Citrix Systems Inc. (CTXS) $64.15 +3.37%
Activision Blizzard Inc. (ATVI) $21.45 +2.53%
Monster Beverage Corp (MNST) $69.90 +2.37%
Baidu Inc. (BIDU) $176.14 +2.20%
Apple Inc. (AAPL) $94.25 +2.20%
Whole Foods Market Inc. (WFM) $41.87 +1.76%
Intuitive Surgical Inc. (ISRG) $377.60 +1.71%
Nasdaq 100 - Fallers
Keurig Green Mountain Inc (GMCR) $115.38 -5.48%
Cognizant Technology Solutions Corp. (CTSH) $47.47 -4.74%
Gilead Sciences Inc. (GILD) $79.54 -3.46%
eBay Inc. (EBAY) $48.25 -2.92%
Alexion Pharmaceuticals Inc. (ALXN) $166.90 -1.94%
CA Inc. (CA) $28.86 -1.67%
Ross Stores Inc. (ROST) $67.70 -1.48%
Tesla Motors Inc (TSLA) $202.30 -1.47%
Autodesk Inc. (ADSK) $54.08 -1.44%
Regeneron Pharmaceuticals Inc. (REGN) $309.47 -1.36% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: Mosul, Pound, FX markets Islamist insurgents seized control of Iraq's second-largest city on Tuesday in a brazen military operation that underscored the weakness of the central government across vast swaths of the country. Prime Minister Nouri al-Maliki declared a nationwide "state of maximum preparedness" after government forces fled Mosul in disarray following four days of fighting. He asked parliament to declare a state of emergency. But he didn't say whether military forces were mobilizing to retake the city, 220 miles north of the capital, Baghdad. - The Wall Street Journal Europe
The pound hit an 18-month high against the euro yesterday as the fastest expansion in industrial output for more than three years showed Britain's economy "firing on all cylinders". Official data showed industrial production, which spans manufacturing, North Sea oil production and power generation, rose 0.4% in April from the previous month, boosting annual growth to 3%, the strongest since January 2011. Manufacturers' organisation EEF forecasts UK manufacturing will outstrip Britain's overall economic output this year by expanding 3.6% on the back of booming domestic demand. - The Daily Express
George Osborne is expected to use his annual Mansion House speech tomorrow night to lay out plans to rein in the Wild West foreign currency market. The Chancellor will make clear the crackdown is crucial to cleaning up the City and winning back the public's trust. Osborne is expected to ask regulators to lead a review, including crucial benchmarks used to set everything from currency rates to the price of oil. The aim is to then introduce statutory regulation to keep traders and brokers in check. - The Daily Mail
The energy regulator has fired an extraordinary broadside at the Big Six power companies after warning them that their failure to cut household bills, despite a slump in wholesale costs, was proof that the market is uncompetitive. [...] "In a competitive market, I would expect the threat of losing market share to encourage suppliers to pass on sustained reductions in wholesale costs as savings to consumers as soon as possible," Dermot Nolan, Ofgem's chief executive, wrote in a letter to the suppliers. - The Times
Tesco is "urgently investigating" its property division – and faces potential fines – after a Guardian analysis revealed the supermarket chain has been failing to comply with a Competition Commission order for the past four years. The 2010 directive relates to Tesco's use of restrictive covenants, which allow former land and property owners to control how plots are developed after they have been sold. It had been suggested that Britain's leading supermarket chains were using these to prevent rivals from setting up stores on those plots considered prime competitive sites. - The Guardian
Apple faces a formal European Commission investigation of its tax arrangements in Ireland, it is claimed. Jaoquin Almunia, the Competition Commissioner, will announce the probe under state aid rules on Wednesday, Irish broadcaster RTE reported. It follows the announcement in September of an information-gathering exercise designed to shed light on alleged sweetheart deals between multinationals and countries such as Ireland, Luuxembourg and the Netherlands. - The Telegraph | | |
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