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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: Stocks slightly higher as geopolitical risk decreases - Putin says seeks to de-escalate tensions with Ukraine
- Finnish Prime Minister says EU not preparing further sanctions against Russia
- France tosses out 2014 deficit reduction target
techMARK 2,749.57 +0.40%
FTSE 100 6,685.26 +0.43%
FTSE 250 15,675.56 +0.95%
Stocks ended the session slightly higher after Russian President Vladimir Putin signalled he seeks to de-escalate tensions with Ukraine. In parallel, Finland's Prime Minister, Alexander Stubb, stated that the European Union is not considering further sanctions against Russia.
However, Stubb also said he as "a feeling that we are at gates of cold war again". In parallel, Ukraine's parliament adopted legislation permitting halts on the transit of Russian energy supplies to the European Union through its territory.
To take note of oil futures fell sharply following reports that the west is preparing to better arm Kurdish fighters in Iraq.
Front month Brent crude futures dropped 2.015% to $102.22/barrel on the ICE.
Weak German GDP data
Earlier in the day the German finance ministry revealed that the country's gross domestic product (GDP) contracted by two tenths of a percentage point during the second quarter, instead of by 0.1%, as economists had expected. In parallel, France's economy stagnated over the three months to the end of June, prompting the country's Finance Minister to cut the growth target for this year to just 0.5%, from 1% beforehand, in effect tossing out this year's deficit reduction goal.
"Overall, the numbers reinforce our view that the Eurozone economy remains too weak either to tackle the periphery's debt problems or to eliminate the dangers of deflation. As such, we still believe that the ECB needs to implement further policy action - probably in the form of full-scale quantitative easing - to try to bring the euro down and re-ignite the recovery," Capital Economics' Jonathan Loynes wrote to clients in reaction to the data.
London house market coming off the boil? Sterling lower
In UK data, The Royal Institution of Chartered Surveyors (RICS) latest survey data revealed the largest slowdown in the number of inquiries from home buyers in the capital in six years.
Not by chance, and following Wednesday's quarterly Inflation Report, economists at Societe Generale now see the first increase in Bank Rate arriving in the first quarter of 2015, instead of in the last three months of 2014.
Reacting to those changes in the immediate outlook for monetary policy in Britain, cable is flirting with its so-called 200-day moving average, which may herald further falls if lost.
British Land and TUI AG lead gains
British Land rose on the back of a recommendation upgrade out of analysts at Bank of America-Merrill Lynch to 'buy' from 'neutral'.
TUI Travel was at the head of the advances by noon. Speaking to Bloomberg TV majority shareholder TUI AG's chief executive said there is "no plan B" when it comes to a merger between both companies.
Shares of commodity trader Glencore were trading near the bottom of the pile on the Footsie after broker Credit Suisse downgraded the stock to 'neutral'. Its analysts see the company facing three headwinds: fading commodity momentum, lower than expected earnings growth and valuation concerns given the premium at which the shares trade relative to peers.
Ophir Energy swung to a half-year profit as the oil and gas company sold assets in Tanzania. The group reported a pre-tax profit from continuing operating operations of $589,436 for the six months to end of June 2014, compared to a loss of $19,374 over the same period a year earlier. The firm divested a 20% interest in Blocks 1, 3 and 4 in Tanzania to Pavilion Energy for $1.25bn with a final $38m payable on the final divestment decision. Proceeds will be used to fund other exploration projects.
Carillion was another high riser. On Thursday the company piled pressure on rival Balfour Beatty to resume merger talks by revealing that it had held meetings with several of Balfour's major shareholders. The construction group said it had told the investors that the merger could save at least £175m a year by the end of 2016, enhancing earnings "significantly" from then.
Real estate linked stocks such as Foxtons, Rightmove or CSR were on the move in the aftermath of the Bank of England's latest Inflation Report, which led markets to scale back their expectations for interest rate hikes this year. On Thursday analysts at Bank of America—Merrill Lynch upgraded their recommendation on shares of real estate investment trusts British Land and Land Securities to 'buy' from 'neutral'.
Egyptian gold miner Centamin unveiled a maiden interim dividend of 0.87 cents a share despite reporting a dip in profits for the second quarter as the cost of production rose. The company said it is to pay out a total of $10m to shareholders. Chairman Josef El-Raghy said that with no further major expansion projects planned at Centamin's flagship Sukari project, he now sees "solid growth potential and a stable balance sheet". He added: "We now look forward to a sustained period of strong free cash flow generation". |
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| | FTSE 100 - Risers
Petrofac Ltd. (PFC) 1,144.00p +3.16%
British Land Co (BLND) 724.50p +2.48%
Johnson Matthey (JMAT) 3,082.00p +2.26%
Land Securities Group (LAND) 1,090.00p +2.25%
TUI Travel (TT.) 369.70p +2.16%
Hargreaves Lansdown (HL.) 1,078.00p +2.08%
HSBC Holdings (HSBA) 651.40p +2.05%
CRH (CRH) 1,420.00p +1.94%
Intu Properties (INTU) 336.70p +1.88%
Royal Mail (RMG) 443.60p +1.74%
FTSE 100 - Fallers
Admiral Group (ADM) 1,330.00p -2.99%
G4S (GFS) 266.60p -2.52%
Kingfisher (KGF) 295.70p -1.86%
Rio Tinto (RIO) 3,376.00p -1.39%
Glencore (GLEN) 360.65p -1.33%
Friends Life Group Limited (FLG) 308.30p -1.22%
Next (NXT) 6,805.00p -0.87%
BHP Billiton (BLT) 2,025.50p -0.69%
Burberry Group (BRBY) 1,448.00p -0.62%
Barclays (BARC) 218.00p -0.62%
FTSE 250 - Risers
Carillion (CLLN) 346.80p +8.38%
Ophir Energy (OPHR) 211.70p +6.65%
Millennium & Copthorne Hotels (MLC) 602.50p +5.52%
SIG (SHI) 177.90p +5.20%
Xaar (XAR) 587.00p +4.63%
Foxtons Group (FOXT) 266.50p +4.63%
Derwent London (DLN) 2,799.00p +4.56%
Rightmove (RMV) 2,412.00p +3.92%
CSR (CSR) 530.50p +3.51%
AL Noor Hospitals Group (ANH) 1,070.00p +3.38%
FTSE 250 - Fallers
Centamin (DI) (CEY) 69.90p -6.17%
Perform Group (PER) 207.00p -3.72%
AO World (AO.) 201.60p -2.28%
JD Sports Fashion (JD.) 397.80p -1.78%
Pets at Home Group (PETS) 185.80p -1.75%
Bwin.party Digital Entertainment (BPTY) 83.00p -1.54%
Merlin Entertainments (MERL) 333.00p -1.48%
Vedanta Resources (VED) 1,025.00p -1.25%
Just Retirement Group (JRG) 145.80p -1.09%
Direct Line Insurance Group (DLG) 278.20p -1.03%
FTSE TechMARK - Risers
Vectura Group (VEC) 140.00p +2.19%
Anite (AIE) 92.75p +1.64%
BATM Advanced Communications Ltd. (BVC) 16.62p +1.53%
Skyepharma (SKP) 242.00p +1.47%
Puricore (PURI) 41.00p +1.23%
Optos (OPTS) 195.25p +1.03%
Kofax Limited (DI) (KFX) 477.00p +0.95%
Consort Medical (CSRT) 892.00p +0.79%
SDL (SDL) 339.50p +0.59%
Sepura (SEPU) 145.50p +0.52%
FTSE TechMARK - Fallers
Torotrak (TRK) 17.00p -2.86%
Promethean World (PRW) 29.25p -1.68%
Phoenix IT Group (PNX) 88.00p -1.12%
E2V Technologies (E2V) 152.50p -0.97%
Gresham Computing (GHT) 115.00p -0.22% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks mixed on Eurozone GDP, Ukraine crisis - Euro-area economic growth slows
- Eurozone inflation unrevised
- Putin softens stance on Ukraine
- US weekly jobless claims rise
FTSE 100: 0.43%
DAX: 0.29%
CAC 40: 0.25%
FTSE MIB: -0.29%
IBEX 35: -0.09%
Stoxx 600: 0.31%
European stocks were mixed after weak Eurozone economic growth data and after Russian President Vladimir Putin vowed to help stop the conflict in Ukraine.
The euro-area's year-on-year gross domestic product (GDP) rose 0.7% in the second quarter, as expected, following a 0.9% increase the previous quarter.
The slowdown in the Eurozone's economic recovery was driven by weak German and French GDP numbers. Economic activity in Germany climbed 0.8% year-on-year in the second quarter, after rising 2.5% the previous quarter, missing the forecast for 1.3% growth.
In France the economy stagnated in terms of quarterly rates of change, increasing 0.1% in the second quarter versus the same period of last year, compared to 0.8% in the first three months. Analysts had predicted a 0.3% gain.
Meanwhile, official data confirmed Eurozone inflation rose 0.8% in July, in line with forecasts and the initial estimate but well below the European Central Bank's (ECB) target of under but close to 2%.
The ECB has been pressed to address low consumer prices and a stagnant recovery.
The Centre for Economics and Business Research (Cebr) said Thursday's figures adds further pressure on the central bank to consider quantitative easing.
"Overall, Cebr expects the Eurozone to expand by 0.7% over 2014, but more than a reading of present economic fundamentals this hinges on the ECB taking necessary steps to shore up the recovery," said Cebr economist Danae Kyriakopoulou.
In the US, the Labor Department revealed applications for unemployment benefits in the rose more than forecast in the week ended 9 August. Jobless claims climbed by 21,000 to 311,000, the highest in six weeks, after a 290,000 increase a week earlier. Economists had predicted 295,000 claims.
In the UK, Monetary Policy Committee member David Miles said on Thursday the Bank of England could keep rates at record-low levels for "a bit longer yet" as the inflation outlook looks subdued. A day earlier BOE Governor Mark Carney said that Britain's economy faces hurdles including weak wage growth.
Ukraine crisis
Speaking to Russian ministers and members of parliament in Crimea, Putin said Russia would stand up for itself but not at the expense of confrontation with the rest of the world.
"We must calmly, with dignity and effectively, build up our country, not fence it off from the outside world," Putin said, according to Reuters.
"We need to consolidate and mobilise but not for war or any kind of confrontation [...] for hard work in the name of Russia."
The United Nations said its estimates suggest the death toll has risen to 2,086 by the beginning of this week, up from 1,129 on 26 July.
United Internet, TUI AG
United Internet advanced as first-half sales increased 12% from a year earlier to €1.43bn.
TUI AG edged after reporting an 89% rise in third quarter operating profit and suggesting its merger with TUI Travel would go ahead.
RWE AG slumped after the German utility reported a 62% fall in first-half profit as sales declined.
ThyssenKrupp AG gained after the German steelmaker posted quarterly earnings that exceeded forecasts.
Boskalis Westminster jumped after the construction company said it will start a share buyback programme.
Novozymes A/S retreated after the largest supplier of enzymes reported second-quarter net income that missed analysts' estimates.
The euro rose 0.09% to $1.3376.
Brent crude futures fell 1.8% to $102.40 per barrel, according to the ICE. |
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| | US Market Report | | US open: Stocks mostly higher as Putin softens stance US stocks were mostly higher amid speculation that the turmoil in Ukraine will not escalate.
Russian President Vladimir Putin said Russia will do everything it can to stop the conflict in eastern Ukraine.
Speaking to Russian ministers and members of parliament in Crimea, Putin said the nation would stand up for itself but not at the expense of confrontation with the rest of the world.
"We must calmly, with dignity and effectively, build up our country, not fence it off from the outside world," Putin said, according to Reuters. "We need to consolidate and mobilise but not for war or any kind of confrontation [...] for hard work in the name of Russia."
Back in the US, the Labor Department revealed applications for unemployment benefits in the rose more than forecast in the week ended 9 August. Jobless claims climbed by 21,000 to 311,000, the highest in six weeks, after a 290,000 increase a week earlier. Economists had predicted 295,000 claims.
"While the latest reading on initial claims was higher than expected, the four-week average has risen only slightly from the eight-year low reached last week, and the level of continuing claims remains low," Barclays Research said. "Thus, we still would view the claims data as consistent with a labor market that is improving."
In corporate news, Kohl's Corp. rallied after the department-store chain reported second quarter results that exceeded analysts' estimates.
Cisco slumped as the world's largest networking-equipment maker said it would cut another 6,000 jobs after reporting a fall in fourth quarter income.
Wal-Mart Stores declined after the world's largest retailer reported stagnant same-store sales in the last quarter and cut its 2104 profit forecast due to slow traffic at its supercenters. |
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| | Thursday broker round-up UPDATE | | Admiral Group: Deutsche Bank reduces target from 1330p to 1260p and maintains a hold recommendation.
Balfour Beatty: Deutsche Bank lowers target from 250p to 245p keeping its hold recommendation.
Betfair: Jefferies raises target from 1175p to 1230p maintaining a buy recommendation.
Brit: Canaccord Genuity shifts target from 255p to 260p and reiterates a buy recommendation.
Centamin: Westhouse Securities shifts target from 60p to 65p retaining its neutral rating.
EnQuest: UBS cuts target from 144p to 125p staying with its neutral rating.
Firestone Diamonds: FinnCap initiates with a target of 84p and a buy recommendation.
GAME Digital: Canaccord Genuity ups target from 250p to 270p staying with its buy recommendation.
Glencore Xstrata: Investec ups target from 319p to 360p and retains a hold recommendation. Credit Suisse downgrades from outperform to neutral with a target of 380p.
Intermediate Capital Group: Numis ups target from 363p to 375p upgrading from reduce to hold.
Monitise: Berenberg cuts target from 74p to 42p and keeps a hold recommendation.
Ophir Energy: Westhouse Securities reduces target from 290p to 245p keeping an add rating.
Vernalis: Canaccord Genuity shifts target from 52p to 54p and retains a buy recommendation.
W Resources: Northland initiates with a target of 2.2p and a buy recommendation.
Serco Group: Berenberg cuts target from 340p to 310p staying with its hold recommendation.
Synergy Health: Investec increases target from 1565p to 1607p and maintains a buy recommendation. | | |
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