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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 close: FTSE in red on geopolitical tensions, data - FTSE closes 29.91 lower at 6,791.55
- Geopolitical tensions, housing data weighs
- UK Q2 GDP shows 0.8% growth
techMARK 2,799.28 -0.81%
FTSE 100 6,791.55 -0.44%
FTSE 250 15,691.81 -0.36%
UK stocks ended the final session of the week in the red as geopolitical tensions, housing data and and downgrade from the International Monetary Fund (IMF) all provided a drag to sentiment.
The losses had been limited by a sturdy gross domestic product (GDP) figure out this morning and gains amongst the banking sector, but ongoing crises in the Middle East and Ukraine were this afternoon firmly back in focus.
Dipping in the final minutes of trade, the FTSE 100 closed 29.91 points lower at 6,791.55.
The European Union today reached a preliminary agreement on economic sanctions against Russia over the Ukraine crisis. Diplomats said the details are still being worked out following discussions that lasted all day yesterday and part of today.
"Clearly businesses are suffering as a result of the weakening trade ties with Russia, which has had sanctions imposed on it by Europe and the US due to its involvement in the crisis in eastern Ukraine," said Craig Erlam, Market Analyst at Alpari UK.
UK house prices slow in July
House prices in Britain rose at the slowest pace in more than a year in July following the introduction of tougher mortgage rules, according to a Hometrack survey.
Prices climbed 0.1% this month, easing from a 0.3% increase in June, signalling a cool down in the housing market.
In other UK macro news, second quarter GDP grew at 0.8% in the second quarter as had been widely expected. The figure means the UK is now back at levels seen prior to the recession.
Lewis Sturdy, a Dealer at Capital Spreads, said: "UK GDP figure this morning proved Britain's economy has finally returned to the size it was pre market crash of 2008. With output growing by 0.8% in the second quarter, economists will be feeling pretty happy about the situation.
"Their attentions will now turn to the real wages figure, a number that Carney has stated will have to improve before interest rates go up. All is well and good having more of the population in work, but if the majority are part time or zero contract hours with a pay rise nowhere in sight, this does cause some concern. As for next week, keep an eye out for FOMC meeting as well as non-farm payrolls on Friday."
Also providing a drag today was the IMF, which lowered its forecasts for global growth from the 3.7% figure given in April to 3.4%, attributing the change to events in Ukraine and Iraq.
Over in the US, a report showed US durable goods orders rose 0.7% in June following a 1% drop a month earlier. It beat analysts' estimates for a 0.5% increase.
RBS leads risers as BSkyB sinks
RBS delivered a better-than-expected first half operating performance, but said no one at the 80% taxpayer-owned bank was "complacent about the challenges ahead".
The results, which came a week earlier than scheduled, showed operating profit totalled £2.6bn, or £3.3bn excluding restructuring and litigation and conduct costs, compared with £1.59bn in the same period a year earlier. The gains were driven by more favourable credit conditions and good results from RBS Capital Resolution, and came despite a 6% decline in total income to £9.9bn.
Barclays and Lloyds Banking Group were also higher on the news.
Anglo American shares were higher on the back of its Chief Executive's confidence in the group's outlook.
Pearson shares climbed despite the publishing group posting a fall in first half profit. It did, however, maintain its full-year profit forecasts, which may have come as a relief to some investors after a series of downbeat trading statements in recent times.
Vodafone moved higher after the decline in its service revenue was lower than had been expected after the losses in Europe were partly offset by gains in African and India.
Sainsbury rose after market sources yesterday suggested Qataris is poised to make another bid for the supermarket chain at 500p or more per share.
Meanwhile, BSkyB was firmly in the bottom spot after it failed to impress with its decision to buy the entire stake of Sky Italia and a 57.4% interest in Sky Deutschland from Rupert Murdoch's 21st Century Fox. The group will pay £2.45bn for Sky Italia and £2.9bn for Sky Deutschland. The news overshadowed its annual results, in which it posted a 7% rise in adjusted revenue to £7.6bn.
GlaxoSmithKline continued to fall one day after lowering its outlook after second quarter profits declined 12%. UBS reduced its target from 1,500p to 1,380p and downgraded the stock from neutral to sell. |
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| | FTSE 100 - Risers
Royal Bank of Scotland Group (RBS) 364.20p +10.77%
Anglo American (AAL) 1,639.50p +3.44%
Pearson (PSON) 1,132.00p +2.82%
Vodafone Group (VOD) 202.05p +2.12%
Barclays (BARC) 218.05p +1.66%
Tullow Oil (TLW) 764.00p +1.19%
Lloyds Banking Group (LLOY) 74.81p +1.16%
Sainsbury (J) (SBRY) 320.20p +1.01%
Randgold Resources Ltd. (RRS) 5,115.00p +0.99%
Rolls-Royce Holdings (RR.) 1,053.00p +0.67%
FTSE 100 - Fallers
British Sky Broadcasting Group (BSY) 874.50p -5.46%
GlaxoSmithKline (GSK) 1,423.00p -3.16%
Petrofac Ltd. (PFC) 1,127.00p -2.17%
Rexam (REX) 513.00p -2.01%
GKN (GKN) 344.20p -1.99%
Persimmon (PSN) 1,280.00p -1.99%
British Land Co (BLND) 717.00p -1.92%
Barratt Developments (BDEV) 364.30p -1.83%
Admiral Group (ADM) 1,481.00p -1.73%
Tesco (TSCO) 270.35p -1.62%
FTSE 250 - Risers
Balfour Beatty (BBY) 253.10p +9.05%
Carillion (CLLN) 362.80p +7.18%
Countrywide (CWD) 489.20p +5.18%
Lonmin (LMI) 241.00p +4.92%
Interserve (IRV) 648.00p +2.86%
Renishaw (RSW) 1,899.00p +2.76%
Just Retirement Group (JRG) 144.90p +2.40%
African Barrick Gold (ABG) 259.80p +2.28%
Regus (RGU) 180.10p +1.98%
Cineworld Group (CINE) 329.40p +1.89%
FTSE 250 - Fallers
Spectris (SXS) 1,934.00p -7.69%
Howden Joinery Group (HWDN) 347.50p -4.77%
Cairn Energy (CNE) 177.30p -3.69%
AO World (AO.) 212.10p -3.24%
Kazakhmys (KAZ) 343.00p -3.11%
Electrocomponents (ECM) 234.80p -2.65%
Vesuvius (VSVS) 459.40p -2.59%
BTG (BTG) 606.00p -2.57%
Catlin Group Ltd. (CGL) 524.00p -2.06%
Imagination Technologies Group (IMG) 196.60p -2.04% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks fall as German investor confidence dips - IMF cuts global forecast
- German investor confidence falls
- German consumer confidence rises
- UK GDP grows in line with forecasts
- US durable goods orders increase
FTSE 100: -0.44%
DAX: -1.53%
CAC 40: -1.82%
FTSE MIB: -0.90%
IBEX: 0.25%
Stoxx 600: -0.69%
Most European stocks were in the red after a report showed German investor confidence fell and the International Monetary Fund (IMF) cut its forecast for world growth.
A survey from the Ifo Institute showed German investor confidence fell more than expected in July. The business climate index dropped to 108 from 109.7 in June. Analysts had predicted a reading of 109.4.
Separately, GfK's forward-looking survey on German sentiment in August increased to its highest level since December 2006. The index climbed to 9.0 from 8.9 the prior month, surprising analysts who had expected an unchanged result.
The IMF lowered its global growth predictions, down from the 3.7% figure given in April to 3.4%, attributing the change to the crises in Ukraine and Iraq.
The European Union (EU) today reached a preliminary agreement on economic sanctions against Russia over the Ukraine turmoil. Diplomats said the details are still being worked out following discussions that lasted all day yesterday and part of today, Reuters reported.
"Clearly businesses are suffering as a result of the weakening trade ties with Russia, which has had sanctions imposed on it by Europe and the US due to its involvement in the crisis in eastern Ukraine," said Craig Erlam, Market Analyst at Alpari UK.
The death toll in Gaza has passed 800 following more than two weeks of clashes between Israelis and Palestinians.
Meanwhile, UK gross domestic product data for the second quarter grew by 0.8% quarter-on-quarter, the same as the prior three months, as expected by analysts.
In the US, a report revealed durable goods orders rose 0.7% in June following a 1% drop a month earlier. It beat analysts' estimates for a 0.5% increase.
BSkyB, RBS
British Sky Broadcasting Group (BSkyB) slid after it offered to buy Sky Deutschland and Sky Italia from Rupert Murdoch's 21st Century Fox. Sky Deutschland's shares rose.
Royal Bank of Scotland Group advanced after saying first-half profit probably almost doubled.
Danone edged lower as the yoghurt maker said first half sales and profit fell short of projections.
Louis Vuitton declined after the luxury-goods company posted first half profit that missed estimates, saying demand weakened in Asia.
Air France-KLM Group gained after reporting second-quarter profit that beat market expectations.
The euro fell 0.23% to $1.3433.
Brent crude futures climbed 0.714% to $107.84 per barrel, according to the ICE. |
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| | US Market Report | | US open: Stocks slide amid geopolitical woes US stocks declined as geopolitical tensions in the Middle East and Ukraine continued.
The European Union (EU) today reached a preliminary agreement on economic sanctions against Russia over the Ukraine crisis. Diplomats said the details are still being worked out following discussions that lasted all day yesterday and part of today.
The news comes amid accusations on Russia's involvement in the downing of a Malaysia Airlines plane last week.
"Clearly businesses are suffering as a result of the weakening trade ties with Russia, which has had sanctions imposed on it by Europe and the US due to its involvement in the crisis in eastern Ukraine," said Craig Erlam, Market Analyst at Alpari UK.
Meanwhile, the death toll in Gaza has passed 800 following more than two weeks of clashes between Israelis and Palestinians. US Secretary of State John Kerry pressed regional leaders to confirm a Gaza ceasefire today.
A report today showed US durable goods orders rose 0.7% in June following a 1% drop a month earlier. It beat analysts' estimates for a 0.5% increase.
Visa slides
Visa slumped after the payments network cut its forecast for full-year revenue.
Radio group Pandora Media was in the red early on after revealing increased losses.
Amazon slumped after posting a second quarter loss that missed analysts' estimates.
The 10-year yield fell two basis points to 2.48%.
West Texas Intermediate crude futures dropped 0.140% to $106.92 per barrel, according to the ICE. |
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| | Week ahead: Eyes on Barclays during frantic week | | An extremely busy week lies ahead, with a tumult of the largest companies on the London stock market announcing second-quarter and half-year results.
The week begins quietly enough on Monday and Tuesday, with a Reckitt Benckiser expected to post lower profits on Monday due to forex movements, an interesting update expected from Trinity Mirror and good start expected from FTSE 250 insurer Hiscox.
A rash of resources reports in the coming week begins with BP's second quarter results Tuesday followed on Wednesday with Drax and Tullow Oil, before Thursday sees BG Group, Centrica and Shell.
Financial sectors see updates from Lloyds Banking, Man Group, Moneysupermarket.com and Schroders.
There will be particular interest in Barclays, with these being the first results after the May strategy update and recent allegations regarding High frequency Trading activity in Barclays's dark pools.
Analysts at Numis forecast first-half statutory profit before tax of £2,859m, which assumes a further £500m of PPI provisions. Adjusted PBT is forecast at £3,359m. Focus will be on three things in particular: investment banking revenues where an 8% decline is forecast in the second quarter; cost management, where 2014 guidance is for around £17bn operating costs; and thirdly Barclays non-core deleveraging, where the broker forecasts non-core losses of £476m for the period.
Other results during the week worth watching out for are from AstraZeneca, BAE Systems, BT Group, British American Tobacco, Compass, Direct Line, ITV, Foxtons, PZ Cussons, Pace, Rentokil, Rolls-Royce, along with Taylor Wimpey, Travis Perkins and William Hill.
Macro factors
In the UK, analysts at Investec say they expect official Bank of England data to show the first increase in mortgage approvals for five months, following a steer from British Bankers' Association figures.
"We also tend to the view that Friday's manufacturing PMI survey will remain in buoyant territory, helping to dispel fears that sterling's strength is clobbering the factory sector. Note too that Deputy BoE Governor Ben Broadbent speaks on Tuesday."
Stateside there's plenty of macro data in the week as well as 142 S&P 500 companies due to report earnings as the season gets into full season.
Wednesday will see the US Federal Reserve's FOMC make a short announcement about a further $10bn round of tapering to the level of monthly asset purchases will fall back to $25bn, with a short statement to accompany it.
On Friday July's US jobs numbers are reported, with unemployment having fallen by almost 1.5 percentage points to 6.1% over the past year and short-term joblessness at its lowest level since early 2008. Fed Chair Janet Yellen recently warned that a relatively fast fall in unemployment would bring forward a hike in interest rates.
A first estimates of second quarter GDP is also due, with the first quarter's 2.9% annualised drop expected to more than than reverse.
Further data prints include the latest ADP employment survey and July's Institute for Supply Management index.
Friday also sees official Chinese PMI figures. | | |
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