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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 rebound from seven-week low, but Iraq still in focus - FTSE 100 rebounds from lowest since April 28th
- Iraq tensions continue, US deploys troops
- UK inflation data in focus
- Shire gains on M&A hopes, Astra also in spotlight
techMARK 2,802.94 +0.21%
FTSE 100 6,762.27 +0.11%
FTSE 250 15,730.40 +0.15%
UK stocks rose slightly on Tuesday morning, bouncing off a seven-week low, helped by yet more M&A speculation in the pharmaceutical sector.
The FTSE 100 was trading 0.1% higher at 6,762 in early trading.
Stocks have been under pressure in recent sessions on the back of continued fighting in Iraq between the army and Sunni Islamist militants. These concerns have sent oil prices to multi-month highs while the FTSE 100 fell to 6,754.64 on Monday, its worst finish since April 28th.
The US government has deployed 275 personnel to Iraq to provide support and security for the US embassy in Baghdad.
However, yet more violence overnight will likely keep markets in a cautious mood today on reports that parts of the city of Baquba - just 37 miles from the capital - have been taken over by the rebels.
Investors were also awaiting a host of economic data from the UK this morning, including consumer price index (CPI) figures that are expected to show a dip in the annual rate of inflation from 1.8% to 1.7% in May. Retail and producer price indices are also due out today.
Elsewhere, there will be the closely-watched ZEW economic sentiment surveys from Germany and the Eurozone today, along with CPI figures and housing data from the States later on.
US data will be in focus ahead to the latest two-day policy meeting at the Federal Reserve, which kicks off today. Analysts widely expect the US central bank to continue tapering asset purchases by $10bn a month to $35bn, but will be keeping an eye out for comments on the economic outlook from Fed Chair Janet Yellen.
Pharma M&A continues, Whitbread gains
Pharmaceutical group Shire was making gains after Reuters reported that it has hired investment bank Citi as an advisor as it braces for takeover bids. The company's Irish tax base and its mid-sized market value of £22bn makes it a prime acquisition target, analysts told the news agency.
Drugs giant AstraZeneca was lower on reports that it is on the lookout for new potential acquisitions and partnerships in an effort to improve shareholder value. Following the company's rejection of Pfizer's bid last month, Chief Executive Pascal Soriot is said to have sought advice from investment bank Centerview Partners.
A buoyant hotel market helped Premier Inn owner Whitbread to book a 6.9% rise in like-for-like sales in the first quarter of the year, causing shares to rise early on.
Oil major Royal Dutch Shell fell on the news that it is to raise around $5bn after tax through the sale of a hefty chunk of its stake in Australian energy group Woodside Petroleum.
Meanwhile, natural gas producer BG Group edged higher after selling its stake in the Central Area Transmission System gas pipeline in the North Sea for £562m.
Surrey-based housebuilder Crest Nicholson was in demand after saying business has continued to flourish in a good housing market. The company said that with an improving economic backdrop it remains confident for the full-year.
Other housebuilders such as Persimmon, Barratt Developments and Bellway were also on the rise after JPMorgan downplayed concerns in the housing sector about an early interest rate rise. The bank said that Friday's sell-off among housing stocks was unwarranted.
Industrial rental group Ashtead, however, underwhelmed after saying that profits hit record levels in the year to April 30th, helping earnings beating expectations comfortably. Shares were sharply lower this morning.
Inkjet printing group Xaar plummeted early on after saying that it now expected revenues in 2014 to be below last year.
Mining stocks were mostly lower this morning as metal prices fell. Randgold, BHP Billiton, Fresnillo and Anglo American were in the red. |
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| FTSE 100 - Risers
Whitbread (WTB) 4,336.00p +4.03%
Shire Plc (SHP) 3,647.00p +3.14%
easyJet (EZJ) 1,463.00p +1.95%
International Consolidated Airlines Group SA (CDI) (IAG) 384.50p +1.67%
Hargreaves Lansdown (HL.) 1,286.00p +1.66%
Sage Group (SGE) 396.70p +1.56%
Tullow Oil (TLW) 869.50p +1.52%
TUI Travel (TT.) 390.00p +1.38%
Aberdeen Asset Management (ADN) 451.20p +1.37%
Persimmon (PSN) 1,203.00p +1.35%
FTSE 100 - Fallers
Ashtead Group (AHT) 860.50p -2.99%
Randgold Resources Ltd. (RRS) 4,508.00p -2.32%
Fresnillo (FRES) 806.00p -1.95%
Anglo American (AAL) 1,399.50p -1.58%
Kingfisher (KGF) 364.30p -1.51%
BT Group (BT.A) 379.50p -1.40%
BHP Billiton (BLT) 1,847.00p -0.97%
Tesco (TSCO) 286.45p -0.83%
Marks & Spencer Group (MKS) 434.60p -0.75%
Diageo (DGE) 1,870.50p -0.72%
FTSE 250 - Risers
Crest Nicholson Holdings (CRST) 335.40p +3.20%
Greencore Group (GNC) 279.50p +2.76%
NMC Health (NMC) 450.00p +2.04%
Supergroup (SGP) 923.00p +1.99%
Restaurant Group (RTN) 581.00p +1.93%
CSR (CSR) 610.00p +1.84%
Ted Baker (TED) 1,845.00p +1.82%
Perform Group (PER) 270.40p +1.73%
888 Holdings (888) 114.90p +1.68%
JD Sports Fashion (JD.) 1,650.00p +1.48%
FTSE 250 - Fallers
Xaar (XAR) 578.00p -22.15%
Home Retail Group (HOME) 177.10p -2.64%
Imagination Technologies Group (IMG) 235.90p -2.44%
Polymetal International (POLY) 530.50p -2.39%
Mitchells & Butlers (MAB) 395.30p -1.79%
Kazakhmys (KAZ) 280.30p -1.30%
esure Group (ESUR) 268.80p -1.25%
Evraz (EVR) 90.90p -1.20%
Synergy Health (SYR) 1,345.00p -1.10% |
| | UK Event Calendar | | Tuesday June 17
INTERIMS
Crest Nicholson Holdings
INTERIM DIVIDEND PAYMENT DATE
Barloworld Ltd., Cambria Automobiles
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Building Permits (US) (13:30)
Consumer Price Index (US) (13:30)
Housing Starts (US) (13:30)
New Car Registrations (EU) (10:00)
Wholesale Price Index (GER) (07:00)
ZEW Survey (EU) (10:00)
ZEW Survey (GER) (10:00)
Q4
Ashtead Group
GMS
Toyota Motor Corp.
FINALS
Ashtead Group, Consort Medical, Daisy Group, Mountfield Group, Record, Software Radio Technology, Trifast
EGMS
Kimberly Enterprises NV
AGMS
Andrews Sykes Group, Cyan Holdings, Downing Three VCT A Shares, Downing Three VCT C Shares, Downing Three VCT D Share , Downing Three VCT E Share, Downing Three VCT F Shs, Downing Two VCT 'A' Shs, Downing Two VCT 'C' Shs, Downing Two VCT D Share , Downing Two VCT E Share , Downing Two VCT F Shs , Downing Two VCT G Shs, Ithaca Energy Inc. (DI), Networkers International, Octopus VCT 2, Petropavlovsk, Premier Farnell, Totally, UK Commercial Property Trust, Ukraine Opportunity Trust, Whitbread, Zoltav Resources Inc (DI)
UK ECONOMIC ANNOUNCEMENTS
Consumer Price Index (09:30)
Producer Price Index (09:30)
Retail Price Index (09:30)
FINAL DIVIDEND PAYMENT DATE
Anglo-Eastern Plantations, BlackRock Smaller Companies Trust
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise ahead of German investor confidence data - German investor confidence data due
- UK and US inflation figures to be released
- Russia, Iraq tensions escalate
FTSE 100: 0.12%
DAX: 0.87%
CAC 40: 0.55%
FTSE MIB: 0.34%
IBEX 35: 0.67%
Stoxx 600: 0.36%
European stocks gained ahead of a report that is expected to show German investor confidence rose for the first time this year.
The index for German investor sentiment may have climbed to 35.0 in June from 33.1 a month earlier, according to forecasts.
In the UK, inflation figures are tipped to reveal prices fell in May, supporting the Bank of England's (BoE) argument to keep interest rates at a record low.
Analysts predict consumer prices fell to 1.7% in May from 1.8% a month earlier, moving further away from the central bank's target of just under 2%.
In the US, inflation data will also be release. Consumer prices are forecast to rise 2% in May.
Another report is projected to show US housing starts fell 3.9% in May compared to April when they rose 13.2%.
"Overall we are looking a fairly busy session today with a fair amount of data for traders to get excited about, and if that stuff is not enough there is even some UK corporate data to get excited about," said Alpari UK Chief Market Analyst, James Hughes. "If that doesn't work either then go home and put the Brazil game on."
Iraq, Russia
The US has deployed several hundred armed troops in and around Iraq to aid Baghdad in its fight against Sunni Muslim insurgents.
The Islamic State in Iraq and the Levant (ISIL) has captured large swaths of territory around Baghdad. The US and Iran held talks over the turmoil yesterday, which marked the first time the two nations have collaborated over a common security interest in more than a decade.
Meanwhile, Russia has circulated a new United Nations resolution to end the escalating conflict in the east between the government and separatist fighters.
Russia's UN ambassador Vitaly Churkin said in New York yesterday the new resolution included humanitarian aid, a ceasefire, and a national dialogue in Ukraine.
Shire, Ashtead
Shire advanced after a report said it has hired Citigroup as it may receive takeover offers.
Ashtead Group rallied as the UK building-equipment rental company posted full-year adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) that beat analysts' estimates.
Whitbread jumped after sales at its Premier Inn hotels and Costa Coffee chain topped analysts' estimates.
The euro fell 0.11% to $1.3559. |
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| | US Market Report | | US close: Data, M&A outweigh Iraq concerns as stocks inch higher - NY manufacturing, industrial output beat forecasts
- Iraq tensions continue to escalate
- IMF cuts growth forecast
- Covidien, TW Telecom, Williams Cos rise on M&A activity
Dow Jones: 0.03%
Nasdaq: 0.24%
S&P 500: 0.10%
US stocks closed a choppy session with small gains on Monday, as better-than-expected economic data and M&A activity outweighed concerns about the ongoing violence in Iraq.
The Dow Jones Industrial Average finished 0.03% higher, while the S&P 500 rose 0.10% and the Nasdaq gained 0.24%.
Chris Beauchamp, Market Analyst at IG said that despite the positive moves on Wall Street, markets were rising "only tentatively". He said: "After the biggest weekly loss in two months, a lot of investors will be dusting themselves down and asking what the next move is."
The US is reportedly considering talks with Iran to support the Iraqi government in its fight against Sunni Islamist insurgents. This comes after continued bloodshed between militants from the Islamic State of Iraq and the Levant (ISIL) and Baghdad's army in the north of the country in the past week.
The ISIL fighters took over the city of Tal Afar in northwest Iraq overnight after a heavy battle on Sunday, while images were released online allegedly showing the killing of hundreds of Iraqi soldiers.
Traders in the States were also shrugging off the news that the International Monetary Fund (IMF) has cut its forecast for growth in the US this year from 2.8% to 2%.
Economic data, Fed in focus
The Empire State manufacturing index rose to 19.28 in June, up from 19.01 the month before, showing that activity in the sector grew faster than expected (consensus: 15.0).
US industrial production increased by 0.6% in May, the third increase in four months. This was a rebound from the revised 0.3% contraction in April and ahead of the the 0.5% rise expected.
Meanwhile, the NAHB Housing Market Index increased to 49 in June from 45 previously (consensus: 47).
Data was in focus ahead to the latest two-day policy meeting at the Federal Reserve, which kicks off tomorrow. Analysts widely expect the US central bank to continue tapering asset purchases by $10bn a month to $35bn, but will be keeping an eye out for comments on the economic outlook from Fed Chair Janet Yellen.
Covidien rockets on Medtronic takeover
Shares in Irish medical devices group Covidien surged in pre-market trade after larger US rival Medtronic agreed to buy the company for $42.9bn in a cash-and-stock deal. The US group is paying $93.22 a share for Covidien, a 50% premium to Friday's closing price, in a move to shift its tax base abroad.
TW Telecom rose after Level 3 Communications agreed to buy the internet firm for $7.3bn including debt. Level 3, however, fell on the news.
Energy group Williams Cos. was a high riser after announcing a $6bn takeover of natural gas services firm Access Midstream Partners.
Pharmaceutical firm Bluebird jumped after reporting positive results from a study of its gene therapy treatment.
Yahoo fell after results from part-owned Chinese e-commerce firm Alibaba disappointed, showing that quarterly operating margins fell sharply year-on-year.
S&P 500 - Risers
Covidien Plc (COV) $86.75 +20.45%
Williams Companies Inc. (WMB) $56.02 +18.74%
Goodyear Tire & Rubber Co. (GT) $27.26 +3.89%
First Solar Inc. (FSLR) $66.85 +3.69%
Sandisk Corp. (SNDK) $102.00 +3.58%
Intuitive Surgical Inc. (ISRG) $409.82 +3.28%
Newfield Exploration Co (NFX) $41.59 +2.82%
Centerpoint Energy Inc. (CNP) $24.62 +2.54%
Tenet Healthcare Corp. (THC) $48.10 +2.41%
Akamai Technologies Inc. (AKAM) $60.25 +2.40%
S&P 500 - Fallers
Vertex Pharmaceuticals Inc. (VRTX) $67.12 -8.67%
Yahoo! Inc. (YHOO) $34.80 -5.79%
Adt Corp (ADT) $33.35 -1.80%
Peabody Energy Corp. (BTU) $16.51 -1.67%
Allegheny Technologies Inc. (ATI) $40.90 -1.64%
Wells Fargo & Co. (WFC) $51.08 -1.58%
Allergan Inc. (AGN) $159.26 -1.56%
Zions Bancorporation (ZION) $29.17 -1.52%
Google Inc. (GOOGL) $552.32 -1.43%
Bank Of New York Mellon Corp. (BK) $34.86 -1.41%
Dow Jones I.A - Risers
Chevron Corp. (CVX) $128.60 +1.05%
Home Depot Inc. (HD) $78.87 +1.02%
Coca-Cola Co. (KO) $40.67 +0.74%
Microsoft Corp. (MSFT) $41.50 +0.65%
McDonald's Corp. (MCD) $101.11 +0.62%
Walt Disney Co. (DIS) $83.29 +0.59%
Intel Corp. (INTC) $30.00 +0.44%
Verizon Communications Inc. (VZ) $49.32 +0.28%
Exxon Mobil Corp. (XOM) $102.90 +0.24%
Pfizer Inc. (PFE) $29.60 +0.24%
Dow Jones I.A - Fallers
Unitedhealth Group Inc. (UNH) $78.00 -1.49%
General Electric Co. (GE) $26.83 -0.78%
Cisco Systems Inc. (CSCO) $24.52 -0.73%
American Express Co. (AXP) $94.38 -0.50%
Visa Inc. (V) $210.28 -0.48%
JP Morgan Chase & Co. (JPM) $56.85 -0.33%
Merck & Co. Inc. (MRK) $58.06 -0.31%
E.I. du Pont de Nemours and Co. (DD) $68.10 -0.29%
AT&T Inc. (T) $34.97 -0.17%
International Business Machines Corp. (IBM) $182.36 -0.11%
Nasdaq 100 - Risers
Tesla Motors Inc (TSLA) $224.65 +8.83%
Sandisk Corp. (SNDK) $102.00 +3.58%
Intuitive Surgical Inc. (ISRG) $409.82 +3.28%
Akamai Technologies Inc. (AKAM) $60.25 +2.40%
Micron Technology Inc. (MU) $31.91 +2.37%
Monster Beverage Corp (MNST) $70.38 +2.19%
TripAdvisor Inc. (TRIP) $103.96 +1.94%
Altera Corp. (ALTR) $34.52 +1.53%
Catamaran Corp (CTRX) $43.59 +1.23%
Adobe Systems Inc. (ADBE) $67.61 +1.18%
Nasdaq 100 - Fallers
Vertex Pharmaceuticals Inc. (VRTX) $67.12 -8.67%
Yahoo! Inc. (YHOO) $34.80 -5.79%
Google Inc. (GOOGL) $552.32 -1.43%
Liberty Global plc Series A (LBTYA) $42.73 -1.43%
Vimpelcom Ltd Ads (VIP) $8.32 -1.42%
Express Scripts Holding Co (ESRX) $70.74 -1.19%
Wynn Resorts Ltd. (WYNN) $199.08 -0.98%
Tractor Supply Company (TSCO) $64.36 -0.98%
Discovery Communications Inc. Class A (DISCA) $76.99 -0.94%
Stericycle Inc. (SRCL) $117.49 -0.83% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: Bank of England, Immigrants, Energy bills An early rise in interest rates has been all but confirmed after the most dovish of the Bank of England's nine policymakers revealed yesterday that he expects to vote for an increase by May of next year. In words that underscored the governor's surprise statement last Thursday that rates could rise "sooner than markets currently expect", David Miles, an external member of the Monetary Policy Committee, signalled that he would vote for an increase before his term ends in 11 months' time. - The Times
Voters in Britain have grasped that an economic recovery is under way, but precious few are feeling the benefit, according to a Guardian/ICM poll that shines a spotlight on the anxiety of a nation. A majority of the public (56%) accept that the economic recovery is real, but fewer than one in five voters, just 18%, say their families are benefiting. However, if the initial findings appear to validate Ed Miliband's focus on the cost of living, when asked what underlies their economic uncertainty, voters point the finger at immigrants undercutting employment terms and conditions more than anything else. - The Guardian
The prospect of an imminent cut in British household energy bills has been scuppered after Russia cut off gas supplies to Ukraine, triggering fears of a European energy crisis. Wholesale gas prices in the UK jumped 6% yesterday after Gazprom announced that it would only supply Ukraine if it received payment upfront. With Ukraine unable or unwilling to pay, Gazprom confirmed that it had stopped delivering gas. - The Times
Britain's biggest oil majors, BP and Shell, will unveil multi-billion pound agreements to supply liquefied natural gas (LNG) to China in two of the biggest deals to be announced by David Cameron and Premier Li Keqiang today. BP is expected to announce a deal worth more than £5bn LNG deal as part of Beijing's drive to reduce its carbon emissions. Shell has secured an agreement with the state-owned energy giant, China National Offshore Oil Corporation (CNOOC), to work on projects around the world, including LNG. - The Daily Telegraph
Moody's has increased the pressure on Tesco by cutting the credit rating of Britain's biggest retailer after its worst trading period in decades. The ratings agency blamed last year's profit fall, weak sales in the first quarter of this year and an increase in Tesco's pension deficit for the cut, and said it expected the conditions to bear down on Tesco's profit margins and affect its credit quality for the next 12-18 months. Moody's cut its rating on Tesco's long-term debt to Baa2 from Baa1. The agency said the firm's difficulties meant debt levels were unlikely to improve enough to justify the earlier higher rating. - The Guardian
He is not a man known for his patience, but Sir Philip Green yesterday shrugged off a mistake by City advisers that briefly marred his return to the public markets after a two-decade absence. Shares in MySale, the Australian online flash sale retailer that he backed, fell sharply on their debut after the stock was mistakenly priced in pounds rather than pence by corporate financers at Macquarie, the stock broker sponsoring the issue. When trading kicked off at 8am, MySale appeared to be priced at 2.26p, instead of 226p. - The Times
The US Supreme Court has declined to hear Argentina's appeal over its battle with hedge funds that refused to take part in its debt restructurings, an unexpected move that risks toppling the Latin American country into a new default. The high court left intact lower court rulings that ordered Argentina to pay $1.33bn to the so-called holdouts who refused 2005 and 2010 debt swaps in the wake of its catastrophic 2001-02 default on $100bn. This could open the door to claims from other holdouts worth as much as $15bn, a hefty sum for a slowing economy struggling with rapidly dwindling foreign reserves. - The Daily Telegraph | | |
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