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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: UK stocks rise as investors await BoE minutes, Fed - Supermarkets, telecoms lift markets higher
- Fed in focus ahead of policy decision
- BoE minutes closely watch amid rate-hike speculation
techMARK 2,801.10 +0.23%
FTSE 100 6,787.81 +0.31%
FTSE 250 15,598.89 +0.09%
UK stocks markets were putting a decent performance on Wednesday, helped by gains in the supermarket and telecoms sectors, as investors adopted a positive attitude ahead of all-important Federal Open Market Committee (FOMC) decision.
The FTSE 100 was trading 0.3% higher at 6,788 in early trading, as it continues to rebound after hitting a seven-week low of 6,754.64 on Monday.
"Equity markets continued to recover some of their lost equilibrium yesterday after last week's sell off, but it remains quite slow progress, with a cocktail of geopolitical concerns keeping investors cautious and oil prices elevated," said Michael Hewson, Chief Market Analyst at CMC Markets UK.
The Fed is expected to announce a further tapering of quantitative easing when the central bank wraps up its policy meeting later this evening. Analysts predict the Fed will cut another $10bn off its monthly bond purchase programme to take the total to $35bn.
However, following Tuesday's release of the latest US inflation data, which showed prices rose more than forecast, some analysts now believe the Fed may consider raising interest rates sooner than it had been expecting. US consumer prices rose by 0.4% month-on-month and 2.1% year-on-year in May, surpassing analysts' estimates.
The minutes from the latest Bank of England policy meeting will also be closely watched in the aftermath of Governor Mark Carney's statement last week about the first increase in the Bank Rate coming in as soon as six months.
While the comments brought forwards expectations of a rate hike, yesterday's sharper-than-expected dip in UK inflation to a four-and-a-half year low of 1.5% will have clouded the outlook for monetary policy.
Supermarkets, telecoms on the rise
Wm Morrison continued to rise after the supermarket chain confirmed plans to slash 2,600 jobs as part of plans to re-organise and simplify its management structure. Grocery peers Tesco and J Sainsbury were also putting in decent gains.
Meanwhile, telecoms giants Vodafone and BT Group were also providing a lift on the top-tier index.
Babywear retailer Mothercare inched higher amid reports that it could cut up to 500 jobs. Restructuring plans leaked to The Times say that the positions to be axed would be among customer service advisers.
Housebuilder Berkeley declined despite saying that average selling prices were up almost 20% in the year to April 30th, helping annual revenues rise 18% and profits jump 40%.
Meanwhile, home-shopping business N Brown underwhelmed with 2.6% revenue growth in the 15 weeks to June 14th rose 2.6%, as shares dropped sharply early on.
Heavyweight utilities groups Severn Trent and United Utilities were both trading lower this morning after going ex-dividend.
Land Securities, 3i Group, 3i Infrastructure and Restaurant Group were also automatically lower as they traded without the access to their latest dividend payments. |
| FTSE 100 - Risers
Tesco (TSCO) 295.70p +1.95%
Fresnillo (FRES) 833.00p +1.22%
Sainsbury (J) (SBRY) 325.50p +1.12%
Vodafone Group (VOD) 197.35p +1.08%
Morrison (Wm) Supermarkets (MRW) 194.60p +1.04%
Royal Dutch Shell 'B' (RDSB) 2,511.00p +0.88%
Pearson (PSON) 1,117.00p +0.81%
Imperial Tobacco Group (IMT) 2,660.00p +0.80%
Antofagasta (ANTO) 761.50p +0.79%
Royal Dutch Shell 'A' (RDSA) 2,390.00p +0.78%
FTSE 100 - Fallers
United Utilities Group (UU.) 852.50p -3.78%
Severn Trent (SVT) 1,921.00p -2.44%
Barratt Developments (BDEV) 344.30p -1.35%
Persimmon (PSN) 1,187.00p -1.08%
WPP (WPP) 1,275.00p -1.01%
Travis Perkins (TPK) 1,580.00p -0.94%
Land Securities Group (LAND) 1,012.00p -0.78%
Smith & Nephew (SN.) 1,063.00p -0.75%
Admiral Group (ADM) 1,550.00p -0.70%
Ashtead Group (AHT) 826.00p -0.66%
FTSE 250 - Risers
Kazakhmys (KAZ) 304.90p +3.32%
BH Global Ltd. USD Shares (BHGU) 11.89 +3.21%
Ferrexpo (FXPO) 130.20p +2.92%
Supergroup (SGP) 869.00p +1.82%
Booker Group (BOK) 130.00p +1.80%
Oxford Instruments (OXIG) 1,420.00p +1.79%
PayPoint (PAY) 1,105.00p +1.75%
Rightmove (RMV) 2,207.00p +1.75%
Perform Group (PER) 270.00p +1.69%
Dairy Crest Group (DCG) 460.90p +1.59%
FTSE 250 - Fallers
Brown (N.) Group (BWNG) 420.20p -3.45%
Berkeley Group Holdings (The) (BKG) 2,189.00p -3.18%
3i Group (III) 399.40p -2.99%
Workspace Group (WKP) 556.00p -2.63%
3i Infrastructure (3IN) 135.10p -2.38%
Xaar (XAR) 525.00p -2.23%
Restaurant Group (RTN) 563.00p -1.83%
Centamin (DI) (CEY) 62.20p -1.35%
Alent (ALNT) 340.40p -1.33% |
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| | UK Event Calendar | | Wednesday June 18
INTERIMS
LXB Retail Properties
INTERIM DIVIDEND PAYMENT DATE
Diploma, Innovation Group
INTERIM EX-DIVIDEND DATE
Edinburgh Worldwide Inv Trust, Scottish Inv Trust
QUARTERLY EX-DIVIDEND DATE
Canaccord Genuity Group Inc., Land Securities Group, Mercantile Investment Trust (The)
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (US) (13:30)
Crude Oil Inventories (US) (15:30)
Current Account (US) (13:30)
FOMC Interest Rate (US) (19:00)
MBA Mortgage Applications (US) (12:00)
FINALS
Berkeley Group Holdings (The), ReNeuron Group
IMSS
Brown (N.) Group
SPECIAL DIVIDEND PAYMENT DATE
Graphite Enterprise Trust
EGMS
Cambria Africa
AGMS
Bluecrest Bluetrend Ltd Red GBP, Bluecrest Bluetrend Ltd Red USD, Christie Group, Clean Air Power Ltd, Kalimantan Gold Corp Ltd. (DI), London Security, Martin Currie Global Portfolio Trust, Maven Income & Growth 2 VCT, Nature Group, NB Global Floating Rate Income Fund Ltd GBP, NB Global Floating Rate Income Fund Ltd USD, Nostra Terra Oil & Gas Co, Richoux Group, Sagicor Financial Corp.
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Minutes (09:30)
FINAL DIVIDEND PAYMENT DATE
Bank of Georgia Holdings, Graphite Enterprise Trust, Motivcom, Proven Planned Exit VCT, Share plc, Toyota Motor Corp.
FINAL EX-DIVIDEND DATE
3i Group, 3i Infrastructure, Aberdeen Japan Investment Trust , Anglo Pacific Group, Downing Planned Exit VCT 6, Downing Planned Exit VCT 7, First Derivatives, Hansa Trust, Harvey Nash Group, Maven Income & Growth VCT, NetDimensions Holding Ltd. (DI), New Century AIM VCT 2, Panther Securities, RapidCloud International , Restaurant Group, S&U, Safestyle UK , Severn Trent, Templeton Emerging Markets Inv Trust, Tex Holdings, United Utilities Group, Value and Income Trust, Vianet Group
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise ahead of Fed policy decision - Fed policy decision due
- BoE to release meeting minutes
- Militants attack Iraq's biggest oil refinery
FTSE 100: 0.31%
DAX: 0.04%
CAC 40: 0.01%
FTSE MIB: 0.20%
IBEX 35: 0.13%
Stoxx 600: 0.13%
European stocks gained ahead of the Federal Reserve's monetary policy decision.
Analysts predict the Fed will announce a $10bn cut to its monthly bond purchase programme and decide to keep interest rates at 0.25% when their meeting ends today.
Fed officials will also release a new set of quarterly forecasts for unemployment, inflation, economic growth and the benchmark federal funds rate.
In March, the Fed predicted their target rate, now close to zero, would be 1% at the end of 2015 and 2.25% a year later.
In the UK, the Bank of England will release minutes from its meeting on June 4-5th when the central bank decided to keep interest rates at 0.5% and asset purchases at £375bn.
In his Mansion House speech last week, BoE Governor Mark Carney suggested that an increase in interest rates was a possibility as soon this year given the pick-up in the economy.
Iraq turmoil
Islamist-led militants have attacked Iraq's biggest oil refinery in Baghdad with machine guns and mortars, according to reports today.
The militants destroyed some stores of oil early this morning after entering the complex, refinery staff told AFP news agency.
The news comes as the government fights against the Islamic State in Iraq and the Levant ISIS and its Sunni Muslim allies in Diyala and Salahuddin provinces, after they took over the second city, Mosul, last week.
Concerns that the crisis will disrupt oil supplies has pushed prices higher. Brent crude futures increased $0.106 to $113.570 per barrel in morning trading, according to the ICE.
Ryanair, Rheinmetall
Ryanair advanced after Chief Peter Bellow told Bloomberg that Spain should consider selling 100% of airports operator Aena Aeropuertos. He said Ryanair would help Aena cut costs and increase tourist traffic.
Rheinmetall jumped on reports the German defence company will sign a €2.7bn tank deal with Algeria.
The euro was flat at $1.3547. |
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| | US Market Report | | US Close: Stocks rise ahead of Fed policy announcement - Fed policy decision looms
- US inflation rises
- US housing starts fall
- Iraq turmoil escalates
DJIA: 0.16%
NASDAQ: 0.37%
S&P 500: 0.22%
US stocks gained as investors awaited the Federal Reserve's latest policy decision.
The central bank is expected to announce a further $10bn cut to its quantitative easing programme and to keep interest rates at 0.25% when it wraps up its two-day meeting tomorrow.
Ahead of the announcement, a report showed US consumer prices rose by 0.4% month-on-month and 2.1% year-on-year in May, surpassing estimates for gains of 0.2% and 1.9% respectively.
Energy prices advanced by 0.9% on the month and by another 3.3% over the past year, while food prices gained 0.5% on the month and 2.5% on the year.
Core prices, which exclude both energy and food, also rose more quickly than forecast, rising by 0.3% month-on-month and 2% year-on-year.
Paul Dales, Senior US economist at Capital Economics said: "With core CPI inflation rising to 2% in May, from 1.8% in April, the Fed will have to acknowledge in tomorrow's policy statement that price pressures are building. The chances that it will hike interest rates before the middle of next year are increasing."
Meanwhile, a separate report showed housing starts fell by 6.5% month-on-month in May to reach an annualised rate of 1.001m. The consensus estimate had been for a reading of 1.033m.
Iraq turmoil
The US is deploying up to 275 military personal to Iraq to aid Baghdad in its battle against militant group Islamic State in Iraq and the Levant (ISIS).
The move followed talks between the US and Iran yesterday and after ISIL captured large swaths of territory around Baghdad.
The UK is also planning to re-open its embassy in Iran as reflection of "increasing confidence" in the international relations, marking an "important step forward" with the country, according to Foreign Secretary William Hague.
West Texas Intermediate crude futures fell $0.281 to $106.600 per barrel at close of trading amid fears the turmoil will disrupt oil supplies.
Shire, Medtronic
Shire jumped after a Reuters report said the pharmaceutical company hired Citigroup Inc. as it may receive takeover offers.
Medtronic gained after both Morgan Stanley and Credit Suisse upgraded the stock after the $42.9bn takeover of rival Covidien announced yesterday.
The US 10-year yield rose six basis points to 2.65%.
S&P 500 - Risers
E*TRADE Financial Corp. (ETFC) $22.00 +7.74%
GameStop Corp. (GME) $40.29 +6.81%
Salesforce.Com Inc. (CRM) $57.82 +5.88%
Charles Schwab Corp. (SCHW) $27.30 +5.49%
Edwards Lifesciences Corp. (EW) $82.06 +4.61%
Adt Corp (ADT) $34.81 +4.38%
Expedia Inc. (EXPE) $77.62 +4.08%
First Solar Inc. (FSLR) $69.13 +3.41%
Lincoln National Corp. (LNC) $52.09 +3.21%
MetLife Inc. (MET) $56.15 +3.14%
S&P 500 - Fallers
Boston Scientific Corp. (BSX) $12.60 -2.48%
Regeneron Pharmaceuticals Inc. (REGN) $302.62 -1.87%
Vertex Pharmaceuticals Inc. (VRTX) $65.89 -1.83%
Alexion Pharmaceuticals Inc. (ALXN) $160.15 -1.64%
Intuitive Surgical Inc. (ISRG) $403.24 -1.61%
HCP Inc. (HCP) $40.45 -1.61%
Eog Resources Inc. (EOG) $112.39 -1.44%
Raytheon Co. (RTN) $95.83 -1.31%
Diamond Offshore Drilling Inc. (DO) $49.14 -1.27%
Express Scripts Holding Co (ESRX) $69.85 -1.26%
Dow Jones I.A - Risers
Goldman Sachs Group Inc. (GS) $168.22 +1.43%
Home Depot Inc. (HD) $80.02 +1.42%
JP Morgan Chase & Co. (JPM) $57.42 +0.97%
Nike Inc. (NKE) $75.09 +0.72%
Coca-Cola Co. (KO) $40.92 +0.64%
Microsoft Corp. (MSFT) $41.68 +0.43%
American Express Co. (AXP) $94.66 +0.31%
Visa Inc. (V) $210.81 +0.27%
3M Co. (MMM) $143.69 +0.26%
Chevron Corp. (CVX) $128.83 +0.23%
Dow Jones I.A - Fallers
Johnson & Johnson (JNJ) $101.93 -0.51%
Exxon Mobil Corp. (XOM) $102.42 -0.49%
E.I. du Pont de Nemours and Co. (DD) $67.79 -0.47%
Wal-Mart Stores Inc. (WMT) $74.99 -0.46%
Pfizer Inc. (PFE) $29.48 -0.44%
Travelers Company Inc. (TRV) $95.22 -0.25%
Verizon Communications Inc. (VZ) $49.21 -0.20%
Intel Corp. (INTC) $29.95 -0.20%
Walt Disney Co. (DIS) $83.16 -0.17%
Procter & Gamble Co. (PG) $79.58 -0.14%
Nasdaq 100 - Risers
Keurig Green Mountain Inc (GMCR) $125.49 +4.56%
Expedia Inc. (EXPE) $77.62 +4.08%
Tesla Motors Inc (TSLA) $231.67 +3.14%
Netflix Inc. (NFLX) $443.65 +3.11%
Activision Blizzard Inc. (ATVI) $21.81 +1.77%
Seagate Technology Plc (STX) $56.82 +1.63%
Cognizant Technology Solutions Corp. (CTSH) $48.50 +1.53%
Nxp Semiconductors Nv (NXPI) $63.30 +1.23%
Sandisk Corp. (SNDK) $103.24 +1.22%
Garmin Ltd. (GRMN) $60.50 +1.20%
Nasdaq 100 - Fallers
Regeneron Pharmaceuticals Inc. (REGN) $302.62 -1.87%
Vertex Pharmaceuticals Inc. (VRTX) $65.89 -1.83%
Alexion Pharmaceuticals Inc. (ALXN) $160.15 -1.64%
Intuitive Surgical Inc. (ISRG) $403.24 -1.61%
Express Scripts Holding Co (ESRX) $69.85 -1.26%
Gilead Sciences Inc. (GILD) $79.79 -1.21%
Yahoo! Inc. (YHOO) $34.43 -1.09%
Biogen Idec Inc. (BIIB) $304.79 -1.03%
Wynn Resorts Ltd. (WYNN) $197.45 -0.84% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: Bank of England, MySale, Help to Buy The Bank of England "will not hesitate" to take further action to cool Britain's booming housing market and stop the economy from boiling over, Mark Carney has said. On the day official data showed the average UK house price is ten times bigger than the average salary, the Governor used the Bank's annual report to highlight the steps it had already taken to prevent people from taking out unaffordable mortgages. Mr Carney said the Bank was prepared to use its so-called macro-prudential toolkit to support these steps. - The Daily Telegraph
Shares in MySale have slumped 17% since they floated on Monday as confusion over the pricing of the Australian online retailer's stock continued in the market yesterday. In a second day of mixed trading after a botched debut — in which the retailers' stock was mistakenly priced in pounds rather than pence by Macquarie, the stock broker sponsoring the issue — MySale's shares closed down at 187.5p after listing at 226p. The Times understands that the London Stock Exchange had warned Macquarie Capital, the nominated adviser and joint broker and bookrunner with Zeus Capital, that it was unusual to list the price in pounds rather than pence. - The Times
The Government has yet to demonstrate that its flagship Help to Buy mortgage guarantee policy is providing value for money, an influential committee of MPs has found. The House of Commons Public Accounts Committee (PAC) warned that the scheme - under which Government equity loans finance up to 20% of the purchase price of homes worth up to £600,000 - has created a "medium and long-term risk" to the taxpayer in the shape of a £10bn portfolio of loans that will impose a "heavy administrative burden" for decades to come. - The Daily Telegraph
Customer complaints to the big six energy companies have reached their highest-ever levels. The big six suppliers – British Gas, EDF Energy, E ON, Npower, Scottish Power and SSE – received a total of 1.7m complaints in the first quarter of 2014, up from just under 1.5m in the same period last year, according to consumer group Which?. - The Guardian
Trade links with China strengthened yesterday after billions of pounds of deals were signed to coincide with the first visit to Britain by the country's new premier. BP announced a 20-year, £12bn contract to supply Beijing with liquefied natural gas. The London Stock Exchange also said that it had signed an agreement with the Agricultural Bank of China to make it easier for Chinese companies to draw from London's large pools of investor capital by building up the market for renminbi-denominated equity products. - The Times
The energy watchdog has backtracked on its decision to stop small supplier Ovo Energy paying interest on gas and electricity bill overpayments.
Last week, Ofgem caused outrage when it tried to ban the firm from paying 3% interest on their balance to customers who have built up a credit. The bonus has made households more than £1m since 2010. It claimed the interest payment was too confusing and breaks its new rules on the number of discounts suppliers can offer. - The Daily Mail | | |
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