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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: FTSE 100 near four-month low ahead of BoE, ECB - BoE, ECB decisions in focus
- Russia bans food imports from US, EU
- Rio Tinto leads mining stocks higher, but Randgold drops
techMARK 2,709.84 -0.19%
FTSE 100 6,616.42 -0.30%
FTSE 250 15,237.15 -0.17%
UK stocks were closing in on a four-month low on Thursday morning as investors turned cautious ahead of policy decisions in the UK and Europe, amid ongoing geopolitical tensions between Russia and the West.
The FTSE 100 was down 0.3% at 6,616 in early trading after having closed Wednesday's session at 6,636.16 - its lowest finish since April 17th - as risk appetite was dampened by weak economic data and a build-up of Russian troops along the eastern border of Ukraine.
Nato has said that the significant increase of Russian troops near Ukraine over the last few days is of "great concern" amid fears that Moscow is readying to invade. Meanwhile, Russia has denied the allegations, saying that comments from Nato are misleading.
Meanwhile, in response to the latest round of Western sanctions the Kremlin has imposed a ban on imports of agricultural goods from the US and European Union for up to one year.
"After Russia threatened retaliatory sanctions, it has followed through on agricultural imports which may further impact a fragile Eurozone after yet more weak German data this morning in the form of industrial production (after factory orders slumped yesterday)," said Mike van Dulken, head of research at Accendo Markets.
German industrial production rose by just 0.3% in June after a revised 1.7% fall the previous month, though the rebound was much worse than the 1.2% growth expected.
Votes on interest rates at the Bank of England (BoE) and European Central Bank (ECB) also injected further uncertainty into markets on Thursday morning, though both are predicted to be "somewhat of a non-event", according to research analyst Joshua Mahony from Alpari UK.
"However, it is the ECB meeting that has the potential to really move the market, with many looking to the subsequent Q&A session from Mario Draghi for potential clues to future actions," he said.
Rio leads miners higher
Mining stocks were performing well in morning trade with Rio Tinto leading the risers. The company hailed an "outstanding performance" in the first half as underlying earnings jumped 21% and cash flow generation increased 8%, with the miner topping its cash cost reduction target ahead of schedule. Fresnillo, Glencore and Antofagasta were also in demand.
Bucking the trend was Randgold Resources as shares slipped after gold output in the second quarter fell 2% on the first three months of the year. Nevertheless, the company said it is still on track to hit its production guidance for 2014.
Aviva gained after delivering half-year improvements in its five key metrics, increasing cash flow, operating profits and new business, as well as cutting both costs and its combined operating ratio. However, insurance peer RSA declined after net written premiums fell 9% in the first half.
Bottling firm Coca-Cola HBC slumped after saying unfriendly consumer sentiment and foreign exchange headwinds looked unlikely to improve during 2014 as it downgraded its volume expectations for the year as a whole.
Financial services group Old Mutual declined after saying that adjusted operating profits fell 5% in the first half as a result of a weaker South African rand. |
| FTSE 100 - Risers
Carnival (CCL) 2,182.00p +2.20%
Rio Tinto (RIO) 3,454.00p +1.87%
Glencore (GLEN) 364.70p +1.29%
Fresnillo (FRES) 997.50p +1.27%
Aviva (AV.) 493.70p +0.82%
British Sky Broadcasting Group (BSY) 858.00p +0.70%
ARM Holdings (ARM) 857.50p +0.70%
AstraZeneca (AZN) 4,218.50p +0.68%
SSE (SSE) 1,465.00p +0.62%
Standard Chartered (STAN) 1,215.00p +0.58%
FTSE 100 - Fallers
Coca-Cola HBC AG (CDI) (CCH) 1,324.00p -3.71%
Old Mutual (OML) 188.70p -2.68%
RSA Insurance Group (RSA) 435.60p -1.87%
Shire Plc (SHP) 4,595.00p -1.82%
Royal Bank of Scotland Group (RBS) 339.80p -1.82%
Lloyds Banking Group (LLOY) 71.29p -1.30%
Petrofac Ltd. (PFC) 1,062.00p -1.30%
BAE Systems (BA.) 416.90p -1.28%
Aberdeen Asset Management (ADN) 408.30p -1.21%
Mondi (MNDI) 1,006.00p -1.18%
FTSE 250 - Risers
Elementis (ELM) 272.10p +2.91%
Cobham (COB) 295.00p +2.79%
Kennedy Wilson Europe Real Estate (KWE) 1,080.00p +2.66%
Savills (SVS) 588.00p +2.35%
Home Retail Group (HOME) 176.00p +2.33%
Afren (AFR) 103.20p +2.28%
Dixons Carphone (DC.) 351.00p +2.27%
Ferrexpo (FXPO) 132.90p +2.15%
Perform Group (PER) 232.00p +1.98%
Enterprise Inns (ETI) 121.40p +1.76%
FTSE 250 - Fallers
Stock Spirits Group (STCK) 296.70p -3.83%
Amec (AMEC) 1,056.00p -3.03%
Alent (ALNT) 329.80p -2.14%
Henderson Group (HGG) 236.50p -2.07%
esure Group (ESUR) 254.10p -1.82%
COLT Group SA (COLT) 133.70p -1.62%
PayPoint (PAY) 1,015.00p -1.55%
Greencore Group (GNC) 251.30p -1.45%
Paragon Group Of Companies (PAG) 325.80p -1.33% |
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| | UK Event Calendar | | Thursday August 07
INTERIMS
Amec, Aviva, BATM Advanced Communications Ltd., Cobham, Coca-Cola HBC AG (CDI), Hellenic Telecom Industries SA ADS, Henderson Group, Kennedy Wilson Europe Real Estate , Mondi, OJSC Novolipetsk Steel GDS (Reg S), Old Mutual, Randgold Resources Ltd., Rautaruukki OYJ, Rio Tinto, RSA Insurance Group, Spirax-Sarco Engineering
INTERIM DIVIDEND PAYMENT DATE
ITE Group, WH Smith
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Credit (US) (20:00)
Continuing Claims (US) (13:30)
ECB Interest Rate (EU) (12:45)
Industrial Production (GER) (11:00)
Initial Jobless Claims (US) (13:30)
Q2
BATM Advanced Communications Ltd., Coca-Cola HBC AG (CDI), Hellenic Telecom Industries SA ADS, OJSC Novolipetsk Steel GDS (Reg S), Randgold Resources Ltd.
IMSS
Enterprise Inns, Hardy Oil & Gas, Infinis Energy, LondonMetric Property, UDG Healthcare Public Limited Company
EGMS
Amphion Innovations, GCP Sovereign Infrastructure Debt Limited
AGMS
Albion Enterprise VCT, Edge Performance VCT 'C' Shares, Edge Performance VCT 'D' Shares, Edge Performance VCT 'E' Shares, Edge Performance VCT 'F' Shares, Edge Performance VCT 'H' Shares, Edge Performance VCT 'I' Shares, Edge Performance VCT G Shares, Hardy Oil & Gas, Infinis Energy, Investec, Majestic Wine, Treveria
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Decision (12:00)
FINAL DIVIDEND PAYMENT DATE
Anglo Pacific Group, Caledonia Investments, Dairy Crest Group
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks decline ahead of ECB and BoE policy announcements - ECB and BoE to deliver policy decisions
- German industrial production falls
- Nestle announces share buyback
FTSE 100:-0.34%
DAX: -0.53%
CAC 40: -0.40%
FTSE MIB: -0.09%
IBEX 35: -0.82%
Stoxx 600: -0.33%
European stocks declined as investors awaited the latest policy decision from the European Central Bank (ECB).
The ECB is widely expected to keep policy unchanged, holding interest rates at a record low of 0.25%, following a comprehensive package of measures presented in June to address weak inflation.
"The focus will be on the press conference and the assessment of latest economic and financial developments: we expect the ECB to take stock of the ongoing weakness in growth and inflation and reiterate its commitment to implement further easing measures should the situation worsen in the second half of the year," Barclays Research said.
"We still think the bar for outright quantitative easing (QE) is quite high and the decision to buy European government bonds would require renewed recession or outright deflation. It will take until year-end to implement the June measures, and more unconventional measures are unlikely to be envisaged before then."
The Bank of England also delivers its latest policy announcement but it is likely to be a non-event as investors predict the central bank will maintain interest rates at 0.50% and asset purchases at £375bn.
Speculation on an interest rate hike in the near future, however, has grown as recent data has pointed to economic recovery.
The National Institute of Economic and Social Research (NIESR) on Tuesday predicted the BoE could raise interest rates as soon as February.
Meanwhile, German industrial production fell 0.5% year-on-year in June, after rising 1.1% in May, surprising analysts who predicted a 0.3% increase.
Munich RE, Rio Tinto
Munich Re declined after the world's biggest reinsurer announced profit that missed estimates.
Rio Tinto advanced after first-half profit rose 21% as it shipped record volumes of iron ore.
Nestle gained after announcing an 8bn Swiss franc share buyback and reiterated its full-year sales forecast.
The euro fell 0.08% to $1.3372.
Brent crude futures fell 0.13% to $104.45 per barrel, according to the ICE. |
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| | US Market Report | | US close: Stocks erase losses despite Ukraine crisis, M&A news - Stocks fall initially but recover by the close
- US trade deficit falls to five-month low
- Russia ramps up troop numbers along border
- 21st Century Fox drops Time Warner takeover
- Sprint shelves purchase of T-Mobile US
Dow Jones: +0.08 %
Nasdaq: +0.05%
S&P 500: 0.00%
After a weak start, US stocks pared losses to trade broadly flat by the close as investors shrugged off tensions in Ukraine and the collapse of two multibillion-dollar deals.
Helping sentiment on Wall Street was the news that the US trade deficit unexpectedly shrank 7% to a five-month low in June.
The upside surprise means that second-quarter economic growth - which at an annualised rate of 4% had already smashed forecasts - will probably be revised even higher.
The Dow Jones Industrial Average and Nasdaq rose 0.1% while the S&P 500 was more or less unchanged.
The trade balance showed a shortfall of $41.5bn in June as imports of petroleum dropped to the lowest level since late 2010. This was down from a revised $44.7bn in May and below the $45bn forecast.
Analysts at Capital Economics said that the second-quarter US gross domestic product growth will most likely be revised to around 4.2%.
Stocks had started Wednesday's session on the back foot on reports that Russia has significantly ramped up the number of troops on the eastern border of Ukraine in the last few days.
Meanwhile, investors were also reacting to the news that Russian President Vladimir Putin has ordered retaliatory economic measures against Western sanctions.
21st Century Fox drops Time Warner bid
Rupert Murdoch's media group 21st Century Fox jumped after it pulled its plans to buy Time Warner for $80bn, saying it would instead approve a $6bn share buyback. However, Time Warner's share price dropped around 13%, despite the company beating analysts' estimates with its second-quarter profits.
Sprint shareholders gave a cool reaction to the telecom firm's announcement to walk away from the takeover of T-Mobile US, causing shares in the latter to drop sharply.
Meanwhile, drugstore chain Walgreen's stock sank after the firm said it would buy up the remaining 55% of Alliance Boots that it does not already own. The company also disappointed with its profit targets for 2016.
Groupon shares tumbled after the online voucher company disappointed the market with its second-quarter results which showed a net loss of three cents a share.
Brewer Molson Coors rose after second-quarter profits rose 9% with higher prices lifting sales despite a fall in beer volumes.
S&P 500 - Risers
Molson Coors Brewing Co. Class B (TAP) $71.06 +5.73%
Crown Castle International (CCI) $76.08 +4.43%
First Solar Inc. (FSLR) $65.70 +4.05%
Fossil Group Inc (FOSL) $102.03 +3.49%
Valero Energy Corp. (VLO) $51.24 +3.04%
Twenty-First Century Fox Inc Class A (FOXA) $32.35 +2.63%
Legg Mason Inc. (LM) $47.71 +2.62%
Tenet Healthcare Corp. (THC) $56.24 +2.56%
Berkshire Hathaway Inc. Class B (BRK.B) $128.96 +2.48%
Urban Outfitters Inc. (URBN) $36.92 +2.41%
S&P 500 - Fallers
Walgreen Co. (WAG) $59.15 -14.43%
Time Warner Inc. (TWX) $74.23 -12.87%
Cognizant Technology Solutions Corp. (CTSH) $43.78 -12.51%
Expeditors International Of Washington Inc. (EXPD) $40.12 -8.44%
Parker-Hannifin Corp. (PH) $109.49 -4.81%
Pitney Bowes Inc. (PBI) $25.51 -4.64%
Wynn Resorts Ltd. (WYNN) $200.13 -4.29%
Actavis plc (ACT) $206.52 -3.80%
Rowan Companies plc (RDC) $28.81 -3.61%
Perrigo Company plc (PRGO) $142.89 -3.52%
Dow Jones I.A - Risers
Procter & Gamble Co. (PG) $81.11 +2.14%
Coca-Cola Co. (KO) $39.91 +1.86%
General Electric Co. (GE) $25.44 +1.70%
Wal-Mart Stores Inc. (WMT) $74.23 +1.21%
E.I. du Pont de Nemours and Co. (DD) $64.79 +1.19%
Johnson & Johnson (JNJ) $100.73 +0.91%
Exxon Mobil Corp. (XOM) $98.89 +0.70%
Travelers Company Inc. (TRV) $89.73 +0.68%
Unitedhealth Group Inc. (UNH) $81.50 +0.64%
Home Depot Inc. (HD) $80.51 +0.61%
Dow Jones I.A - Fallers
Intel Corp. (INTC) $32.85 -3.51%
Boeing Co. (BA) $118.21 -2.52%
AT&T Inc. (T) $34.58 -1.51%
United Technologies Corp. (UTX) $103.84 -1.12%
Verizon Communications Inc. (VZ) $49.11 -1.11%
Cisco Systems Inc. (CSCO) $24.96 -0.81%
International Business Machines Corp. (IBM) $185.86 -0.66%
Microsoft Corp. (MSFT) $42.84 -0.56%
Pfizer Inc. (PFE) $28.30 -0.39%
3M Co. (MMM) $139.54 -0.17%
Nasdaq 100 - Risers
Tesla Motors Inc (TSLA) $248.98 +4.40%
Twenty-First Century Fox Inc Class A (FOXA) $32.35 +2.63%
Activision Blizzard Inc. (ATVI) $22.94 +2.62%
Liberty Global plc Series A (LBTYA) $42.40 +2.22%
Regeneron Pharmaceuticals Inc. (REGN) $340.19 +2.10%
Sba Communications Corp. (SBAC) $106.90 +2.04%
Vimpelcom Ltd Ads (VIP) $8.23 +1.92%
Netflix Inc. (NFLX) $430.50 +1.81%
F5 Networks Inc. (FFIV) $114.25 +1.66%
Applied Materials Inc. (AMAT) $21.15 +1.49%
Nasdaq 100 - Fallers
Cognizant Technology Solutions Corp. (CTSH) $43.78 -12.51%
Expeditors International Of Washington Inc. (EXPD) $40.12 -8.44%
Wynn Resorts Ltd. (WYNN) $200.13 -4.29%
Intel Corp. (INTC) $32.85 -3.51%
CH Robinson Worldwide Inc (CHRW) $66.19 -3.32%
Charter Communications Inc. (CHTR) $153.50 -2.29%
Dollar Tree Inc (DLTR) $55.02 -1.70%
Comcast Corp. (CMCSA) $52.97 -1.63%
Discovery Communications Inc. Class A (DISCA) $83.00 -1.62%
Micron Technology Inc. (MU) $30.60 -1.56% |
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| | Newspaper Round Up | | Thursday newspaper round-up: UK trade, Israel, Lloyds... Britain's trade performance over the past two decades has been worse than any other country in the G7, with a shortfall of nearly £40 billion in goods exports in the past five years alone. In a new report that lays bare the gap between the UK and its competitors, Royal Bank of Scotland found that goods exports were only 4 per cent higher last year than they were in 2008. If the UK had kept pace with global exports, that figure would have been 16 per cent higher — a difference of nearly £37 billion. - The Times
Israel is ready to extend its ceasefire in the Gaza Strip beyond the current truce, which is scheduled to expire at 8am on Friday, an official has said. Israel had "expressed its readiness to extend the truce under its current terms", the official added, referring to the three-day cessation of hostilities agreed on Tuesday. - The Independent
A group of investors yesterday filed a claim for compensation from Lloyds Banking Group for losses they claim they incurred during the rescue of HBOS in 2008. The Lloyds Action Now activist group has spent years assembling the case, which argues that the true health of HBOS was deliberately concealed from investors when Lloyds was taking over the troubled bank. - The Guardian
Rupert Murdoch last night unequivocally ruled out renewing his summer blockbuster bid for Time Warner, a day after pulling the plug on the $80 billion offer. "We walked away. This is our resolute decision," Mr Murdoch, the chairman and chief executive of 21st Century Fox, told analysts after the company reported fourth-quarter results that were better than expected. - The Times
Panic selling is expected to sweep Britain as homeowners try to cash in on record high house prices before the market starts to cool, new data finds. Sentiment towards selling is rising as fears grow that property values could reverse after a period of frenzied house price growth, according to the latest Halifax Housing Market Confidence Tracker. - The Telegraph
The Bank of England has lost its second senior regulator in three days, accelerating the brain drain at the 320-year-old institution. The Bank announced the resignation of Julian Adams, executive director for insurance supervision, who will leave Threadneedle Street following 28 years as a City regulator. Adams will take on a new role as group regulatory director at UK insurance company Prudential in 2015. - The Guardian | | |
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