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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: Iraq tensions continue to pull stocks lower - Iraq tensions continue to push crude higher
- Fed meeting in focus this week
- Smith & Nephew falls as Medtronic buys Covidien
techMARK 2,798.75 -0.58%
FTSE 100 6,770.86 -0.10%
FTSE 250 15,741.74 -0.46%
UK stocks edged lower on Monday morning as ongoing tensions in Iraq continued to erode risk appetite.
The FTSE 100, which declined by 1.2% last week, was down a further 0.1% this morning at 6,771.
In Iraq, army militants killed more than 279 rebels yesterday as Sunni Muslim insurgents moved to take over the territory north of Baghdad.
Fears over the unrest disrupting oil supplies continued to push prices higher, given that Iraq is OPEC's second-largest oil producer. Brent crude futures rose $0.390 to $112.900 per barrel at 09:00, according to the ICE.
Meanwhile investors were also looking ahead with caution to the latest two-day policy meeting at the Federal Reserve, which kicks off tomorrow. Nevertheless, analysts widely expect the US central bank to continue tapering asset purchases by $10bn a month to $35bn.
Michael Hewson, Chief Market Analyst at CMC Markets UK, said: "Given that we still remain fairly close to record highs, we're going to need to see a significant reduction in tensions, as well as a significant improvement in the data coming out of the US economy, to feel confident about the next move in equity markets this week."
Smith & Nephew falls as M&A hopes dissolve
Smith & Nephew declined after medical device maker Medtronic snapped up Irish rival Covidien for $42.9bn. It had been recently rumoured that Medtronic was considering a takeover of Smith & Nephew.
Nevertheless, yet more consolidation in the healthcare sector was giving other stocks a boost this morning, including AL Noor Hospitals and NMC Health.
Oil stocks were making gains as shares continued to track the price of oil higher on the back of developments in Iraq. Tullow, Petrofac and Shell were among the best performers in London.
Miners were also putting in a decent performance as metal prices rose with BHP Billiton, Rio Tinto, Anglo American, Randgold and Centamin inching higher.
Rolls-Royce was in the red after analysts at Societe Generale cut their rating on the stock from 'hold' to 'sell', saying that there is "some risk of a further earnings downgrade" at the engine maker. |
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| FTSE 100 - Risers
Fresnillo (FRES) 818.00p +1.36%
BHP Billiton (BLT) 1,872.50p +1.22%
Petrofac Ltd. (PFC) 1,270.00p +1.03%
Tullow Oil (TLW) 850.00p +1.01%
Randgold Resources Ltd. (RRS) 4,602.00p +0.83%
Glencore (GLEN) 320.55p +0.80%
Rio Tinto (RIO) 3,040.50p +0.76%
British American Tobacco (BATS) 3,541.50p +0.61%
RSA Insurance Group (RSA) 488.90p +0.60%
Anglo American (AAL) 1,417.00p +0.50%
FTSE 100 - Fallers
Smith & Nephew (SN.) 1,047.00p -2.24%
BT Group (BT.A) 385.80p -2.16%
easyJet (EZJ) 1,434.00p -1.58%
Ashtead Group (AHT) 874.00p -1.47%
Persimmon (PSN) 1,195.00p -1.32%
Barratt Developments (BDEV) 341.90p -1.27%
CRH (CRH) 1,640.00p -1.15%
Morrison (Wm) Supermarkets (MRW) 190.20p -1.09%
G4S (GFS) 254.20p -1.09%
Rolls-Royce Holdings (RR.) 1,009.00p -1.08%
FTSE 250 - Risers
Amec (AMEC) 1,271.00p +2.50%
Polymetal International (POLY) 551.00p +2.42%
JD Sports Fashion (JD.) 1,676.00p +2.20%
Daejan Holdings (DJAN) 4,892.00p +2.11%
AL Noor Hospitals Group (ANH) 1,015.00p +2.06%
Centamin (DI) (CEY) 63.30p +1.77%
Croda International (CRDA) 2,436.00p +1.29%
PayPoint (PAY) 1,107.00p +1.28%
Debenhams (DEB) 72.05p +1.12%
Kentz Corporation Ltd. (KENZ) 722.50p +1.05%
FTSE 250 - Fallers
888 Holdings (888) 114.00p -2.98%
Redrow (RDW) 251.20p -2.33%
Foxtons Group (FOXT) 290.20p -2.29%
Bovis Homes Group (BVS) 734.00p -2.26%
Telecom Plus (TEP) 1,435.00p -2.18%
Pace (PIC) 346.40p -2.15%
Morgan Advanced Materials (MGAM) 328.90p -2.14%
Evraz (EVR) 95.10p -2.01%
RPS Group (RPS) 268.60p -1.97% |
| | UK Event Calendar | | Monday June 16
INTERIMS
Zambeef Products
INTERIM DIVIDEND PAYMENT DATE
Lok'n Store Group
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Capacity Utilisation (US) (16:15)
Consumer Price Index (EU) (10:00)
Harmonised Index of Consumer Prices (EU) (10:00)
Industrial Production (US) (16:15)
FINALS
Goldbridges Global Resources, Kemin Resources, Picton Property Income Ltd, Redcentric, Sirius Real Estate Ltd.
ANNUAL REPORT
African Eagle Resources, Goldbridges Global Resources, Kemin Resources
EGMS
Petroceltic International
AGMS
BH Macro Ltd. GBP Shares, Central Asia Metals, CPP Group, Electrical Geodesics Inc (Regs), Manchester Building Society, Planet Payment Inc., President Energy, Savannah Resources
FINAL DIVIDEND PAYMENT DATE
Air Partner, Auhua Clean Energy, Burford Capital , Kingfisher
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks little changed before Eurozone inflation - Eurozone inflation report out
- US industrial and manufacturing data due
- Iraq unrest continues
FTSE 100: -0.03%
DAX: -0.19%
CAC 40: -0.23%
FTSE MIB: -0.23%
IBEX 35: -0.43%
Stoxx 600: -0.12%
European stocks were little changed ahead of the release of Eurozone inflation data.
A report is expected to confirm euro-area inflation fell to 0.5% year-on-year in May from 0.7% in April, well below the European Central Bank's (ECB) 2% target.
Concerns over weak prices prompted the ECB to cut the benchmark interest rate and deposit rate earlier this month.
In the US later on will be the release of industrial and manufacturing production figures.
US industrial output may have risen 0.5% in May following a 0.6% drop a month earlier, according to forecasts. Manufacturing production is predicted to have gained 0.6% last month after a 0.4% fall in April.
In Iraq, army militants killed more than 279 rebels yesterday as Sunni Muslim insurgents moved to take over the territory north of Baghdad.
Fears over the unrest disrupting oil supplies has pushed prices higher. Brent crude futures rose $0.390 to $112.900 per barrel at 09:00, according to the ICE.
On the company front Actelion advanced as its experimental treatment for a lung disease met the main goal of a late-stage study.
Smith & Nephew declined after Medtronic agreed to buy Covidien.
The euro fell 0.12% to $1.3524. |
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| | US Market Report | | US close: Traders calm despite tensions in Iraq - Slightly weaker than expected consumer confidence numbers
- Traders eyeing situation in Iraq
- Intel beats forecasts
Dow Jones Industrials: 0.25%
Nasdaq Composite: 0.31%
S&P 500: 0.31%
US stocks ended the session slightly higher as investors weighed a report on consumer confidence and tracked events the in Iraq.
The University of Michigan's consumer confidence index for June fell to 81.2 from 81.9 a month earlier, surprising analysts who had expected it to rise to 83.
Meanwhile, the Islamic State in Iraq and the Levant (ISIL) has seized several cities and is heading for Baghdad. US President Barack Obama said the Iraqi government may need his country's assistance to stop the militants. The unrest has raised concerns that it may disrupt oil supplies, pushing the price of oil higher.
"With US President Barack Obama not ruling anything out, we have to assume that the situation in Iraq is going to get worse before it gets better," said Alpari UK analyst Craig Erlam.
"This will be disruptive to say the least, not just to the consumer who will see disposable income take yet another hit as they are forced to pay higher prices at the pump, but also to companies that rely on oil and gas. Hence why these stocks could suffer a lot more in the coming weeks and months."
West Texas Intermediate crude futures increased $0.047 to $106.580 per barrel, according to the ICE.
Intel, Express
Intel advanced as the world's largest semiconductor maker raised its second-quarter revenue forecast and said annual sales will rise for the first time since 2011.
Express gained after Sycamore Partners said it plans to buy the clothing chain.
Finisar dropped as the maker of fibre-optic communications devices forecast first-quarter earnings that fell short of analysts' estimates.
OpenTable edged higher after Priceline Group agreed to buy the online restaurant reservation company for $2.6bn.
From a sector standpoint the best performance was seen in the following industrial groups: Aluminium (3.41%), Coal (2.87%) and Semiconductors (2.51%).
The yield on US 10-year Treasuries slipped by 2 basis points to hit 2.58%.
Front month West Texas crude futures were higher by seven cents at $106.91/barrel on the NYMEX. |
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| | Newspaper Round Up | | Monday newspaper round-up: RBS, Smith & Nephew, Alstom Royal Bank of Scotland is in talks over a restructuring of its Ulster Bank unit that could overcome a hurdle to selling some of the government's majority stake. The taxpayer-backed lender is working on a plan to attract private equity into Ulster to boost its capital position before the business is merged with another Irish bank. Permanent TSB, owned by the Irish government, is considered the most likely partner for the creation of an enlarged Irish bank. Any such transaction would enable RBS to cut its holding in Ulster below 50%, where it would no longer have to consolidate the lender in its accounts. - The Times
Over the weekend it emerged that Medtronic is close to announcing a $50bn (£29bn) takeover of Dublin-based orthopaedic group Covidien. The move would rule out Medtronic as a potential buyer of Smith & Nephew. "All things being equal, Medtronic's pursuit of Covidien will be unhelpful for Smith & Nephew's share price," Tom Jones, analyst at Berenberg said. "Smith & Nephew has been a takeover target since 1968 when Unilever tried to acquire the company, I would not be surprised if we have to wait another 46 years". - The Daily Telegraph
France expects US industrial group GE to boost its offer for Alstom's power assets as it battles against a rival joint-offer from Germany's Siemens and Japan's Mitsubishi Heavy Industries. Siemens and Mitsubishi Heavy Industries are putting the finishing touches to a joint offer for Alstom's turbine businesses, which is understood to include a cash element of around €9bn (£7.25bn. Siemens has set a self-imposed deadline of Monday to make an offer. - The Daily Telegraph
Britain's banks are short-changing thousands of small businesses who are seeking compensation for huge losses run up on mis-sold instruments originally intended to shield them from interest rate rises. The Financial Conduct Authority has told ten banks to compensate 19,000 small businesses that were recklessly sold highly complex financial products known as interest rate hedges. - The Times
Chinese investment in nuclear energy, high-speed rail and North Sea oil will be high on the diplomatic agenda when Chinese premier Li Keqiang visits the UK this week, building on what he has described as an "indispensable partnership" between the two countries. Lord Sassoon, chairman of the China-Britain Business Council told The Telegraph that securing more Chinese investment for critical UK infrastructure will be an important element of Mr Li's three-day tour, which will include meetings with The Queen and David Cameron. - The Telegraph
The debate about house prices is reignited on Monday amid claims by Britain's biggest property website that prices for homes have come "off the boil". For the first time this year, the asking prices posted on the Rightmove website for homes in London fell by 0.5% in early June, compared with the month before, in part due to a rapid increase in sellers rushing to cash in on rising prices. In some areas, especially in London, prices may have hit an "affordability cap", the website said. - The Guardian | | |
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