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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 jump post-Fed, Rolls-Royce gains - Fed tapers by $10bn a month
- Yellen says rates to stay low
- UK retail sales, US jobless claims on tap
- Rolls-Royce unveils £1bn buyback
techMARK 2,823.77 +0.67%
FTSE 100 6,827.27 +0.72%
FTSE 250 15,752.09 +0.82%
UK stocks rose strongly on Thursday, helped by some decent gains from Rolls-Royce and BT Group, as investors reacted positively to comments from the Federal Reserve which pushed US markets to all-time highs the day before.
The FTSE 100 opened 0.7% higher at 6,827 in early trading, rising for the third straight day after hitting a seven-week low of 6,754.64 on Monday.
The Federal Reserve tapered stimulus by a further $10bn a month on Wednesday, as expected, explaining that economic activity is "rebounding" amid an improvement in the jobs market.
Nevertheless, Fed Chair Janet Yellen sounded a dovish tone by saying that stimulus is still needed given that the "underutilisation in the labour market remains significant".
She also said that while officials' projections for rate rises have increased, rates will continue to stay low for a "considerable time" after bond buying ends.
Analysts at Rabobank said this morning: "The Fed managed to navigate through what some had expected to be a potentially tricky announcement by providing further fuel for both equity and Treasury market bulls - quite an achievement given both are already at levels that leave skeptics perplexed; the S&P closed at a new record high, while Treasury yields were lower."
Today is set to be a relatively quiet day in terms of economic data with UK retail sales and US jobless claims the only major indicators scheduled. UK retail sales are expected to have fallen by 0.5% in May, compared with a 1.3% gain in April. Meanwhile, US jobless claims are predicted to have edged lower to 314,000 last week, from 317,000 the week before.
Rolls-Royce, BT
Jet engine maker Rolls-Royce jumped after pledging to buy back £1bn of shares if it succeeds in selling its energy gas turbine and compressor business to Germany's Siemens. The company also outlined plans to reduce capital spending in the next five years.
British telecoms group BT was also higher as investors shrugged off new rules from regulator Ofcom to ensure competition in the super-fast broadband market. Ofcom is proposing new obligations forcing BT to maintain a sufficient margin between its wholesale and retail super-fast broadband charges to allow other operators profitably to match its prices.
Housing and construction stocks were putting in a decent performance this morning as share prices continued to recover after a sell-off last week that was spurred by concerns about a sooner-than-expected rise in interest rates in the UK. Barratt Developments, Ashtead, CRH, Travis Perkins and Taylor Wimpey were all in positive territory.
Natural gas producer BG Group was among the handful of stocks to trade in the red after being downgraded by Credit Suisse to 'underperform'.
Software group Micro Focus rose after saying it enjoyed a solid year of progress, with growth picking up in the second half. Annual profit fell 2.4% on a reported basis but were 0.8% higher at constant currency. |
| | FTSE 100 - Risers
Rolls-Royce Holdings (RR.) 1,071.00p +6.04%
CRH (CRH) 1,651.00p +2.48%
Ashtead Group (AHT) 849.50p +2.35%
Barratt Developments (BDEV) 353.40p +2.32%
BT Group (BT.A) 393.80p +2.29%
Aberdeen Asset Management (ADN) 444.40p +2.25%
Coca-Cola HBC AG (CDI) (CCH) 1,398.00p +2.12%
BHP Billiton (BLT) 1,911.00p +1.95%
Travis Perkins (TPK) 1,611.00p +1.90%
Antofagasta (ANTO) 771.50p +1.85%
FTSE 100 - Fallers
Shire Plc (SHP) 3,758.00p -0.71%
Vodafone Group (VOD) 197.05p -0.53%
BG Group (BG.) 1,263.00p -0.32%
Standard Chartered (STAN) 1,279.50p -0.27%
Admiral Group (ADM) 1,550.00p -0.19%
Diageo (DGE) 1,856.00p -0.11%
FTSE 250 - Risers
Xaar (XAR) 528.00p +5.60%
Micro Focus International (MCRO) 871.50p +4.43%
Ocado Group (OCDO) 372.30p +3.91%
Man Group (EMG) 102.80p +3.68%
Go-Ahead Group (GOG) 2,257.00p +3.67%
Supergroup (SGP) 897.00p +3.10%
Berkeley Group Holdings (The) (BKG) 2,307.00p +3.08%
Rotork (ROR) 2,709.00p +3.04%
Henderson Group (HGG) 243.10p +2.88%
Thomas Cook Group (TCG) 139.70p +2.87%
FTSE 250 - Fallers
Euromoney Institutional Investor (ERM) 1,126.00p -1.83%
Rank Group (RNK) 165.30p -1.61%
Fidessa Group (FDSA) 2,368.00p -1.58%
COLT Group SA (COLT) 142.30p -1.11%
PayPoint (PAY) 1,111.00p -0.80%
De La Rue (DLAR) 839.00p -0.71%
Brown (N.) Group (BWNG) 420.80p -0.64%
Alent (ALNT) 346.80p -0.63%
RPC Group (RPC) 643.00p -0.62% |
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| | UK Event Calendar | | Thursday June 19
INTERIM DIVIDEND PAYMENT DATE
Aberdeen Asset Management, Euromoney Institutional Investor
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Continuing Claims (US) (13:30)
Initial Jobless Claims (US) (13:30)
Leading Indicators (US) (15:00)
Philadelphia Fed Index (US) (15:00)
FINALS
Darty, HML Holdings, Infinis Energy, Micro Focus International
ANNUAL REPORT
Dee Valley Group, Dee Valley Group (Non-Voting), Rensburg AIM VCT
AGMS
Asia Ceramics Holding, Aureus Mining Inc (DI), Eurasia Mining, Globalworth Real Estate Investments Limited, GLOBO, India Capital Growth Fund Ltd., JSC VTB Bank GDR (Reg S), Jupiter Dividend & Growth Trust, JZ Capital Partners Ltd, Lifeline Scientific Inc. (Reg S), NMBZ Holdings (UK), Oxus Gold, Pro Global Insurance Solutions , Quindell , Sony Corp., Telit Communications, Toye & Co
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Surveys (11:00)
Internet Retail Sales (09:30)
Retail Sales (09:30)
FINAL DIVIDEND PAYMENT DATE
Alent, Andrews Sykes Group, Capital & Counties Properties , Fairpoint Group, M. P. Evans Group, Netplay TV
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks gain as Fed keeps interest rates low - Fed keeps interest rates low
- Chinese Premier vows to reach growth target
- Oil prices continue rally on Iraq turmoil
FTSE 100: 0.67%
DAX: 0.75%
CAC 40: 0.68%
FTSE MIB: 0.70%
IBEX 35: 0.54%
Stoxx 600: 0.67%
European stocks advanced after the Federal Reserve decided to keep interest rates unchanged. The US central bank maintained interest rates at a 0.25% low and scaled back monthly bond purchases by a further $10bn to $35bn.
The Fed said the world's largest economy is bouncing back but expect rates to stay low for a "considerable time" after the end of bond purchases.
Fed Chair Janet Yellen said the US will be supported by accommodative monetary policy, rising home and equity prices and an improving global economy.
Policymakers reiterated that they will continue to reduce the pace of asset purchases in further measured steps.
Meanwhile, Chinese Premier Li Keqiang yesterday vowed to ensure the nation's growth target of 7.5% is achieved.
Speaking in London, the Premier said China will have "medium to high-level" growth in the long run, adding that he could promise "honestly and solemnly there won't be a hard landing."
Rolls-Royce, Qiagen
Rolls-Royce gained after saying it will buy back £1bn of its own shares.
Qiagen rallied after saying US regulators approved its kit to test for cytomegalovirus.
Ryanair was higher after UBS recommended buying the shares.
The euro rose 0.15% to $1.3615.
Brent crude futures rose $0.279 to $114.590 per barrel, according to the ICE, amid fears the turmoil in Iraq will disrupt oil supplies.
In the latest development, President Barack Obama came under pressure today from US lawmakers to urge Iraqi Prime Minister Nuri al-Maliki to step down over what they see as failed leadership in the face of an insurgency threatening his country. |
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| | US Market Report | | US close: Wall Street rises after Fed predicts gradual rate hikes - S&P 500 hits new record
- Fed cuts 2014 economic growth forecast
- Yellen further tapers quantitative easing
- Iraq leaders urge US to launch air strikes on militants
DJIA: +98.13, 0.58%
NASDAQ: +26, 0.59%
S&P 500: +15, 0.77%
Wall Street closed nearly 100 points higher and the S&P 500 hit another record after the Federal Reserve signalled interest rates may rise slightly faster from 2015. But it held out the prospect of lower longer-term rates than previously forecast.
The Dow Jones industrial average rose 98.13 points or 0.58%, to 16,907, the S&P 500 gained 15 points or 0.77%, to 1,957 and the Nasdaq Composite added 26 points or 0.59%, to 4,363.
After a two-day policy meeting, the Fed cut the 2014 economic growth forecast to a range of between 2.1% and 2.3% from about 2.9%.
The central bank further tapered quantitative easing as expected, reducing monthly bond buys by $10bn, taking the total to $35bn, in line with plans to wind down one of its main stimulus programmes by the end of 2014.
The indication of faster rate rises followed Tuesday's release of the latest US inflation data, which showed prices rose more than forecast.
In March, policy makers estimated that the interest rate, now close to zero, would rise to 1% at the end of 2015 and to 2.25% a year later.
Senior Economist at Berenberg Bank, Christian Schulz, said: "We continue to expect the US economy to do well enough for the Fed to end the asset purchases in October and start gradually hiking rates in Q2 2015.
"However, today's slightly more dovish tone was a reminder that the Fed would react if growth disappointed or inflation failed to follow the projected gradual upward path."
US consumer prices rose by 0.4% month-on-month and 2.1% year-on-year in May, surpassing analysts' estimates.
Iraq
Iraq formally urged the US to launch air strikes against militants who have seized several key cities.
"We have a request from the Iraqi government for air power," the BBC reported top US military commander Gen Martin Dempsey as telling US senators.
Earlier the Sunni insurgents launched an attack on Iraq's biggest oil refinery at Baiji north of Baghdad.
Iraq's military said it had repelled the attack, military spokesman Qassim al-Moussawi told Associated Press, although there was no independent confirmation of his claims.
Oil majors BP and ExxonMobil evacuated staff from Iraq amid the turmoil.
The news comes as the government fights 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.
West Texas Intermediate crude futures fell $0.16 to $106.2 per barrel after fears that the crisis could hurt oil supplies fuelled rises.
Adobe, FedEx, Amazon
Photoshop and Acrobat software maker Adobe Systems advanced as the company reported a rise in sales and profit in the three months to end of May, exceeding analysts' estimates.
Parcel courier FedEx gained as it posted fiscal fourth-quarter earnings of $2.46 a share, beating forecasts of $2.36.
Shares in online retailer Amazon.com climbed after Chief Executive Jeff Bezos unveiled a "Fire" smartphone with free, unlimited photo storage, throwing down the gauntlet to rivals in that market Apple and Samsung.
ConAgra declined as the packaged food company cut its earnings forecast amid slow sales of consumer foods and shrinking profit at its private-label business.
Cisco jumped as Morgan Stanley rated the San Jose, California-based company with an 'overweight' recommendation.
The US 10-year yield fell 0.07 to 2.59. Gold prices rose 0.4% to $1,277 an ounce.
S&P 500 - Risers
Adobe Systems Inc. (ADBE) $73.08 +8.20%
Air Products & Chemicals Inc. (APD) $130.72 +7.50%
FedEx Corp. (FDX) $148.95 +6.16%
Autodesk Inc. (ADSK) $56.96 +4.27%
Cliffs Natural Resources Inc. (CLF) $14.77 +4.16%
Walgreen Co. (WAG) $76.08 +4.08%
Medtronic Inc. (MDT) $63.77 +3.56%
Franklin Resources Inc. (BEN) $58.16 +3.54%
Expedia Inc. (EXPE) $80.35 +3.52%
Lorillard Inc. (LO) $63.83 +3.35%
S&P 500 - Fallers
ConAgra Foods Inc. (CAG) $30.47 -7.25%
Coach Inc. (COH) $39.19 -3.97%
Express Scripts Holding Co (ESRX) $68.29 -2.23%
Vertex Pharmaceuticals Inc. (VRTX) $65.08 -1.23%
Adt Corp (ADT) $34.43 -1.09%
FMC Corp. (FMC) $75.00 -1.06%
Flowserve Corp. (FLS) $76.86 -1.04%
Rowan Companies plc (RDC) $32.29 -1.04%
Analog Devices Inc. (ADI) $55.13 -1.02%
Rockwell Automation Inc. (ROK) $125.69 -0.98%
Dow Jones I.A - Risers
Coca-Cola Co. (KO) $41.56 +1.56%
Nike Inc. (NKE) $76.21 +1.49%
Unitedhealth Group Inc. (UNH) $79.21 +1.33%
Chevron Corp. (CVX) $130.28 +1.13%
Goldman Sachs Group Inc. (GS) $169.86 +0.97%
American Express Co. (AXP) $95.56 +0.95%
Wal-Mart Stores Inc. (WMT) $75.70 +0.95%
Johnson & Johnson (JNJ) $102.81 +0.86%
Home Depot Inc. (HD) $80.71 +0.86%
Pfizer Inc. (PFE) $29.71 +0.78%
Dow Jones I.A - Fallers
Microsoft Corp. (MSFT) $41.65 -0.07%
Intel Corp. (INTC) $29.93 -0.07%
Nasdaq 100 - Risers
Adobe Systems Inc. (ADBE) $73.08 +8.20%
Autodesk Inc. (ADSK) $56.96 +4.27%
Expedia Inc. (EXPE) $80.35 +3.52%
Amazon.Com Inc. (AMZN) $334.38 +2.69%
Sirius XM Holdings Inc (SIRI) $3.45 +2.37%
NetApp Inc. (NTAP) $36.47 +2.13%
CH Robinson Worldwide Inc (CHRW) $63.53 +2.07%
Vodafone Group Plc ADS (VOD) $33.78 +1.87%
Facebook Inc. (FB) $65.60 +1.86%
Google Inc. (GOOGL) $560.66 +1.82%
Nasdaq 100 - Fallers
Express Scripts Holding Co (ESRX) $68.29 -2.23%
Tesla Motors Inc (TSLA) $227.12 -1.96%
Vertex Pharmaceuticals Inc. (VRTX) $65.08 -1.23%
Analog Devices Inc. (ADI) $55.13 -1.02%
Sandisk Corp. (SNDK) $102.31 -0.90%
F5 Networks Inc. (FFIV) $112.54 -0.90%
Baidu Inc. (BIDU) $176.68 -0.86%
Maxim Integrated Products Inc. (MXIM) $34.79 -0.85%
Texas Instruments Inc (TXN) $47.87 -0.81% |
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| | Newspaper Round Up | | Thursday newspaper round-up: Mysale, Float, Lidl Mike Ashley has taken a £12m stake in MySale and signed a joint venture agreement with the online retailer — just days after it floated on AIM. The stake-building and strategic joint venture unites two of Britain's richest retailers. Sir Philip Green, the billionaire owner of TopShop, is one of MySale's largest shareholders with a 25% holding. Sports Direct, through which Mr Ashley has acquired the stake, said that it looked "forward to developing its relationship with MySale, including the potential to co-operate on significant collaboration and joint venture opportunities in Australasia and Asia". – The Times
Menswear retailer Blue Inc has scrapped its £60m flotation plans, the second company to have done so this week amid growing caution about the stability of London's IPO market. Sir Stuart Rose, the former boss of Marks & Spencer, had been chairman of both Blue Inc and casualwear retailer Fat Face, but stepped down in April to avoid a conflict of interest when they became publicly listed companies. However, Fat Face also failed to launch in May over wider market fears. – The Daily Telegraph
The company behind the Lidl supermarket chain is set to become western Europe's biggest grocery retailer by 2018 as discounters become mainstream across the continent. "This is an unprecedented power shift in European retail fuelled by the near unstoppable growth of the discount format," said David Gray, author of a report compiled for Planet Retail, the consultancy firm. He predicts that the privately owned Schwarz Group, which is controlled by a German multi-billionaire and owns Lidl together with the Kaufland hypermarket chain, will overtake French group Carrefour and Tesco to generate sales of €80bn (£65bn) by 2018. – The Guardian
NatWest and its parent bank Royal Bank of Scotland have become the latest banks to reduce Isa rates, with just a few weeks until savers can deposit up to £15,000 in the new "super Isas". The changes, the latest evidence of what experts have called a "purge" in rates, will affect the bank's instant-access cash Isas. From August 1st, savers who have between £1 and £24,999 will earn interest of 0.75%, down from the current rate of 1%. Those who have balances of £25,000 and above will get a rate of 1%, down from 1.5%. - The Daily Telegraph
Estate agents listing properties for rent or sale should be forced to list its floor space according to academics, as data reveals more than half of houses in England are failing to meet modern standards on size. According to Cambridge University research, 55% of modern homes do not have a big enough floor area while one in five is short of space when taking into account the number of occupants. The report found that newly built homes in England are the smallest in a league table of floor space of 15 European countries with an average floor space of 76 square metres, compared to 137 in Denmark. – The Daily Mail
China's second largest bank was yesterday appointed the first clearing bank in London and the first outside Asia for the renminbi (RMB) or yuan. And in a historic move the People's Bank of China gave approval for direct trading between the yuan and the pound rather than exchanging the currencies through the US dollar. As Beijing relaxes rules on its currency London is bidding against Frankfurt, Paris and Luxembourg to become the main trading centre in the West. - The Daily Express | | |
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