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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 ends higher after data-heavy day - FTSE 100 closes up 13.95 at 6,819.75
- UK consumer confidence up
- House prices inch higher
techMARK 2,851.08 +0.17%
FTSE 100 6,819.75 +0.20%
FTSE 250 15,885.72 -0.16%
The biggest London-listed stocks ended the week on an upbeat note after data-heavy session around for the UK, the Eurozone and the US.
The FTSE 100 closed 13.95 points at 6,819.75.
Data out in the UK showed that while British consumer confidence rose this month, rises are starting to flatten out and people are uncertain about their prospects.
The overall score in the GfK UK Consumer Confidence Index increased by three points to a positive reading of one in August from -2 in July and -13 a year ago. GfK said the index was entering a period of stability after several months of almost constant increase.
House prices inched just 0.1% higher in August, according to Hometrack's monthly national housing survey.
It was the second consecutive month that the gap between supply and demand narrowed, with the number of new buys down 0.9%, although this was largely due to seasonal factors.
That came as Home Secretary Theresa May said the UK terror threat level was raised from "substantial" to "severe" in the wake of ongoing conflicts in Syria and Iraq.
The new alert level, the second highest on the UK threat level scale, means Britain is "highly likely" to be subject to a terrorist organisation offence, though the home secretary stressed nothing suggested an attack was "imminent".
Meanwhile, across the Channel Eurozone consumer prices slowed to a 0.3% year-on-year rate of change in August, after a reading of 0.4% in the month before, as expected, according to figures from Eurostat.
That followed flat economic growth in the euro-area during the second quarter as activity levels in Germany came off sharply.
Speaking to Bloomberg TV earlier in the day, German finance minister Wolfgang Schaeuble insisted that the ECB can only "buy time" with its monetary policy, emphasising the need for structural economic reforms.
In the US, household purchases dropped 0.1% following a 0.4% increase in June. Analysts had predicted a 0.2% rise.
"The 0.1% rise in real disposable personal income is also a bit disappointing, but at least it comes after some rapid gains in the first half of the year," Capital Economics said.
"We expect that income growth will accelerate as employment rises further and wage growth picks-up. If so, then consumption growth should soon rise."
The University of Michigan's consumer confidence index climbed to 82.4 in August in the final report, up from a preliminary reading of 79.2 and ahead of consensus expectations of 80.1. The median inflation expectation over the next year fell 0.2 percentage points (pp) to 3.4% and by 0.1pp to 2.9% for the next five to 10 years.
British banks to review 2.5m PPI complaints, FCA says
Back in the UK, the Financial Conduct Authority (FCA) has told banks to reassess payment protection insurance (PPI) complaints they've ignored or underpaid.
The complaints, worth a total of about £2.5m, were rejected between the end of 2012 and the beginning of 2013, mainly due to technicalities in the assessment criteria, the FCA said in a statement on Friday.
However, the UK's financial regulator has deemed the number of complaints reject to be too high and has instructed lenders to review some of the cases.
Supermarkets lead downside
Shares in Tesco fell sharply on Friday after the supermarket giant announced it expects profits to fall by as much as 27% this year and its interim dividend to be cut by 75%. New boss Dave Lewis, who due to take over from Philip Clarke, will now join the group one month earlier than planned on 1 September.
Sector peers Sainsbury and Morrison were also both under pressure.
United Utilities was in the red after it was revealed customers in England and Wales can expect their water bills to drop about 5% between 2015 and 2020 in real terms as part of Ofwat's price review. The news was announced as part of the draft determinations published by the water regulator in response to the latest business plans submitted by water companies.
Drinks giant SABMiller fell despite announcing that its wholly-owned subsidiary, Sabsa, has completed the sale of its stake in Tsogo Sun through the placing of 293,896 shares and the sale of 7.78m shares. Tsogo Sun also repurchased the company's remaining 133.58m shares. Altogether, the disposal generated around $1bn.
Meanwhile, Astrazeneca shares jumped after it was reported that the group's treatment for colorectal cancer had advanced to the next phase in testing. |
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FTSE 100 - Risers
Fresnillo (FRES) 962.00p +2.29%
AstraZeneca (AZN) 4,567.00p +1.95%
RSA Insurance Group (RSA) 458.20p +1.91%
St James's Place (STJ) 717.00p +1.85%
Randgold Resources Ltd. (RRS) 5,085.00p +1.60%
Imperial Tobacco Group (IMT) 2,627.00p +1.47%
Ashtead Group (AHT) 979.50p +1.29%
Anglo American (AAL) 1,530.00p +1.16%
3i Group (III) 393.20p +1.08%
Reckitt Benckiser Group (RB.) 5,250.00p +1.06%
FTSE 100 - Fallers
Tesco (TSCO) 229.95p -6.64%
Morrison (Wm) Supermarkets (MRW) 177.50p -5.03%
Sainsbury (J) (SBRY) 290.30p -4.35%
CRH (CRH) 1,397.00p -2.03%
Marks & Spencer Group (MKS) 429.90p -1.87%
United Utilities Group (UU.) 877.00p -1.35%
easyJet (EZJ) 1,335.00p -1.33%
Reed Elsevier (REL) 982.50p -1.11%
Smith & Nephew (SN.) 1,043.00p -1.04%
G4S (GFS) 265.00p -0.97%
FTSE 250 - Risers
Bwin.party Digital Entertainment (BPTY) 90.30p +12.66%
Enterprise Inns (ETI) 125.00p +4.17%
Entertainment One Limited (ETO) 354.50p +3.99%
Direct Line Insurance Group (DLG) 298.90p +3.35%
Ophir Energy (OPHR) 234.60p +3.35%
Vedanta Resources (VED) 1,011.00p +2.90%
Kazakhmys (KAZ) 296.90p +2.41%
Close Brothers Group (CBG) 1,353.00p +2.04%
COLT Group SA (COLT) 146.70p +2.02%
Brit (BRIT) 257.70p +1.86%
FTSE 250 - Fallers
Exova Group (EXO) 193.00p -10.23%
Perform Group (PER) 203.80p -4.59%
Xaar (XAR) 420.00p -4.33%
RPS Group (RPS) 278.10p -3.90%
Ocado Group (OCDO) 328.30p -3.24%
Thomas Cook Group (TCG) 124.80p -3.11%
Domino Printing Sciences (DNO) 579.50p -3.01%
Cranswick (CWK) 1,327.00p -2.78%
Bodycote (BOY) 695.00p -2.73%
Telecom Plus (TEP) 1,457.00p -2.67% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks mixed as Eurozone inflation slows - Eurozone inflation slows
- German retail sales rise
- US consumer spending falls
FTSE 100: 0.20%
DAX: 0.08%
CAC 40: 0.34%
FTSE MIB: 0.54%
IBEX 35: 0.06%
Stoxx 600: 0.28%
European stocks were mixed after inflation slowed in August, adding pressure on the European Central Bank (ECB) to take action to boost recovery.
Consumer prices in the euro-area rose 0.3% year-on-year following a 0.4% increase in July.
At the so-called 'core' level, which strips out the most volatile items, such as energy, food, alcohol and tobacco, the rate of inflation edged slightly higher, to a 0.9% year-on-year clip (consensus: 0.8%), compared to 0.8% the month before.
"While the overall inflation reading was 0.3% for the month, core inflation was 0.9% which suggests the inflation problem is abating and the only thing driving the main consumer price index reading lower is temporary volatile factors such as fuel prices," said Alpari UK analyst Craig Erlam.
"Given the number of stimulus measures announced by the ECB a few months ago, it's difficult to know what exactly is helping lift the inflation number, but I imagine the more than eight cent drop in the euro against the dollar, from $1.40 to below $1.32, is contributing."
ECB President Mario Draghi last Friday hinted at the possibility of full-on quantitative easing to address weak inflation.
However, German finance minister Wolfgang Schaeuble told newspaper Passauer Neue Presse this week that Draghi's comments about fiscal policy had been "overinterpreted".
He also told Bloomberg in a televised interview that ECB monetary policy "can only buy time" and Europe is in need of structural reform.
Elsewhere in Europe on Friday, the jobless rate remained at 11.5% in August, as predicted by analysts.
German retail sales rose 0.7% in July following a revised 0.1% increase in June, missing expectations for a 1.5% gain.
US data
US household purchases dropped 0.1% following a 0.4% increase in June. Analysts had predicted a 0.2% rise.
The University of Michigan's consumer confidence index climbed to 82.4 in August in the final report, up from a preliminary reading of 79.2 and ahead of consensus expectations of 80.1.
The median inflation expectation over the next year fell 0.2 percentage points (pp) to 3.4% and by 0.1pp to 2.9% for the next five to 10 years.
The Chicago purchasing managers' index (PMI) for manufacturing activity was revised higher to 56.5 in August from an initial reading of 52.6, beating expectations' of 64.3.
Tesco slides on profit warning
Tesco declined after lowering its full-year profit forecast and its interim dividend.
AstraZeneca advanced as UBS said the pharmaceutical firm's treatment for colorectal cancer has moved to the next stage of testing.
D'Ieteren retreated after posting first-half pre-tax profit that feel short of analysts' forecasts.
The euro fell 0.20% to $1.3156.
Brent crude futures climbed 0.33% to $102.80 per barrel, according to the ICE. |
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| | US Market Report | | US open: Stocks little changed on mixed US data US stocks were little changed as investors digested US data that showed a fall in personal spending and a rise in consumer confidence.
US household purchases dropped 0.1% following a 0.4% increase in June. Analysts had predicted a 0.2% rise.
"The 0.1% rise in real disposable personal income is also a bit disappointing, but at least it comes after some rapid gains in the first half of the year," Capital Economics said.
"We expect that income growth will accelerate as employment rises further and wage growth picks-up. If so, then consumption growth should soon rise."
The University of Michigan's consumer confidence index climbed to 82.4 in August in the final report, up from a preliminary reading of 79.2 and ahead of consensus expectations of 80.1.
The median inflation expectation over the next year fell 0.2 percentage points (pp) to 3.4% and by 0.1pp to 2.9% for the next five to 10 years.
"Overall, consumer confidence remains in the relatively tight range it has occupied this year and is consistent with continued moderate growth in consumer spending," Barclays Research said.
The Chicago purchasing managers' index (PMI) for manufacturing activity was revised higher to 56.5 in August from an initial reading of 52.6, beating expectations' of 64.3.
Avago, Pacific Sunwear
Avago Technologies, a semiconductor-device supplier, advanced after it reported quarterly earnings that beat estimates.
Clothing retailer Pacific Sunwear of California dropped after forecasting losses in the third quarter that were worse than expected.
Veeva Systems advanced as the provider of cloud-based business services lifted its year-end earnings prediction after posting second-quarter earnings that exceeded forecasts. |
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| | Broker Tips | | Arrow Global: Numis shifts target price from 285p to 287p and leaves its add rating unchanged.
Berendsen: Oriel raises target price from 1130p to 1243p keeping a buy recommendation.
British Polythene Industries: Investec ups target price from 720p to 750p reiterating a buy recommendation.
bwin.party: Canaccord Genuity lowers target price from 112p to 100p retaining a hold recommendation. Peel Hunt places its target price (prev.: 110p) under review keeping a hold recommendation.
Chesnara: Canaccord Genuity ups target price from 320p to 335p and maintains a hold recommendation.
Creston: Sanlam initiates with a target price of 150p and a buy recommendation.
CSR: Liberum Capital raises target price from 680p to 800p, while downgrading to hold.
Debenhams: N+1 Singer lowers target price from 85p to 80p, while upgrading to buy.
Goldenport: Panmure Gordon reduces target price from 700p to 550p staying with its buy recommendation.
Gulf Keystone Petroleum: Deutsche Bank lowers target price from 145p to 140p and reiterates a buy recommendation.
Hays: Investec ups target price from 150p to 170p and maintains a buy recommendation. RBC Capital moves target price from 140p to 150p and retains an outperform rating.
HSBC Holdings: UBS raises target price from 645p to 715p upgrading from neutral to buy.
Hunting: Canaccord Genuity downgrades from buy to hold with a target price of 950p. UBS increases target price from 800p to 900p leaving its neutral rating unaltered. Deutsche Bank raises target price from 950p to 1000p maintaining a buy recommendation.
Informa: Westhouse Securities downgrades from add to neutral with a target price of 554p.
Kazakhmys: UBS ups target price from 350p to 370p upgrading from neutral to buy.
Man Group: Liberum Capital shifts target price from 119p to 120p, while downgrading to hold.
Marshalls: Peel Hunt shifts target price from 195p to 200p and keeps a buy recommendation.
Playtech: UBS ups target price from 750p to 780p retaining a buy recommendation.
Restaurant Group: Numis ups target price from 725p to 760p, while downgrading from buy to add.
Victoria: Cantor Fitzgerald raises target price from 240p to 290p and stays with its buy recommendation.
Whitbread: Deutsche Bank increases target price from 4170p to 4567p and keeps a hold recommendation.
Xaar: FinnCap reduces target price from 600p to 450p, while leaving its hold recommendation unchanged. Numis downgrades from add to hold with a target price of 450p. | | |
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