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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: Stocks flat on rate speculation ahead of Inflation Report - Inflation Report, rate speculation keeps markets cautious
- Ukraine crisis in focus as Russian convoy heads to border
- Chinese data disappoints, Japanese GDP sinks
- Ex-dividend stocks fall
techMARK 2,725.51 -0.10%
FTSE 100 6,630.77 -0.02%
FTSE 250 15,403.28 -0.40%
Weak economic data from Asia, ongoing geopolitical tensions and nervousness ahead of the Inflation Report prompted a subdued start for UK stocks on Wednesday.
The FTSE 100 was trading down 0.02% at 6,630.77 early on, with ex-dividend stocks limiting upside on the index.
Speculation about interest rates is likely to drive market sentiment on Wednesday morning as analysts pore over the quarterly Inflation Report from the Bank of England due out at 10:30.
Chief economist Simon Smith from Fxpro said that what is important is "the degree to which the Bank believes that the amount of slack in the economy has been absorbed more rapidly than was anticipated three months ago".
"This will have the bigger impact on the Bank's view of inflation in two year's time, which is what matters for the interest rate outlook," Smith said.
Former Monetary Policy Committee (MPC) member Andrew Sentance and DeAnne Julius, a founder member of the MPC, have both been cited over the last 24 hours as calling for a hike in interest rates.
Developments in the Ukraine crisis were also in focus for investors on Wednesday with 280 trucks allegedly carrying humanitarian aid on their way from Russia to the border. However, Ukraine has said that it would not allow the convoy to pass until it can determine what is inside the vehicles.
Economic data
In China, industrial production, retail sales, money supply growth, fixed asset investment and new loans figures all came in worse than expected overnight. Loan growth in particular plunged to its lowest level since 2008 in July.
Japanese gross domestic product (GDP) declined at an annualised rate of 6.8% in the second quarter of 2014, a sharp turnaround from the revised 6.1% growth at the start of the year as a result of a hike in sales taxes. While this was not as bad as the 7% fall in GDP expected, it was Japan's worst contraction since 2011.
UK unemployment figures, Eurozone industrial production and US retail sales will also be closely watched by the markets later on.
Ex-div stocks weigh
A long list of blue chip stocks were lower this morning after going ex-dividend, meaning that investors no longer qualify for their latest payouts. These included AstraZeneca, BG Group, GKN, IMI, Meggitt, Pearson, Rio Tinto, Schroders, Standard Chartered, Royal Dutch Shell, Fresnillo, Ashtead, BT Group and Diageo. According to Reuters, these stocks took up to 21.26 points off the index.
Mining and trading giant Glencore fell after a mixed production report for the first half of 2014 with output of some commodities improving while others declined. However, production of copper and coal - the company's biggest contributors to profit - both increased over the year.
Car insurance specialist Admiral dropped after underwhelming with a 2% rise in adjusted profits before tax to £184.9bn in the first half as growth in the UK was partly offset by weakness abroad. The company also announced it has promoted Geraint Jones, who has held a number of senior finance positions, to chief financial officer.
Defensive sectors such as utilities and tobacco were among the best performers in early trading. United Utilities, Severn Trent, National Grid, British American Tobacco and Imperial Tobacco were all on the rise.
G4S was higher after winning £1.2bn of contracts in the first half and increasing profits. G4S, which faced strong criticism for failing to provide enough security guards at the 2012 Olympics and allegations of overcharging on a UK government prisoner tagging contract, said new contract wins had risen 26%.
Oil and gas services group Petrofac gained after winning a contract with Malaysia's state-owned energy company Petronas worth over $500m. |
| FTSE 100 - Risers
Coca-Cola HBC AG (CDI) (CCH) 1,313.00p +1.94%
Prudential (PRU) 1,391.00p +1.64%
Morrison (Wm) Supermarkets (MRW) 167.80p +1.39%
United Utilities Group (UU.) 857.50p +1.30%
G4S (GFS) 263.10p +1.27%
easyJet (EZJ) 1,274.00p +1.27%
Vodafone Group (VOD) 195.80p +1.19%
Severn Trent (SVT) 1,915.00p +1.11%
SSE (SSE) 1,467.00p +1.03%
Royal Mail (RMG) 436.00p +1.02%
FTSE 100 - Fallers
Rio Tinto (RIO) 3,425.00p -2.56%
Admiral Group (ADM) 1,417.00p -2.28%
Glencore (GLEN) 369.30p -1.52%
Ashtead Group (AHT) 882.00p -1.40%
Meggitt (MGGT) 465.50p -1.21%
Standard Life (SL.) 358.30p -1.19%
Persimmon (PSN) 1,261.00p -1.18%
BT Group (BT.A) 370.40p -1.15%
IMI (IMI) 1,351.00p -1.10%
Schroders (SDR) 2,263.00p -1.09%
FTSE 250 - Risers
Brit (BRIT) 250.00p +2.04%
Infinis Energy (INFI) 215.70p +1.84%
Kennedy Wilson Europe Real Estate (KWE) 1,084.00p +1.78%
Daejan Holdings (DJAN) 4,833.00p +1.36%
Perform Group (PER) 231.00p +1.32%
Essentra (ESNT) 803.50p +1.32%
COLT Group SA (COLT) 137.80p +1.32%
Fidessa Group (FDSA) 2,252.00p +1.26%
Just Eat (JE.) 243.00p +1.25%
Dixons Carphone (DC.) 326.30p +1.24%
FTSE 250 - Fallers
Direct Line Insurance Group (DLG) 281.40p -5.06%
Serco Group (SRP) 316.50p -4.24%
Countrywide (CWD) 494.50p -3.79%
EnQuest (ENQ) 120.00p -3.77%
CSR (CSR) 509.50p -3.69%
Michael Page International (MPI) 431.10p -3.54%
Greene King (GNK) 785.50p -2.96%
Oxford Instruments (OXIG) 1,215.00p -2.57%
Domino Printing Sciences (DNO) 594.00p -2.46% |
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| | UK Event Calendar | | Wednesday August 13
INTERIMS
Admiral Group, Balfour Beatty, Capital & Regional, G4S, Lookers, Michael Page International, MirLand Development Corporation, Plus500 Ltd (DI), Sampo OYJ, TBC Bank Joint Stock Company GDR (REGS) , Telecom Egypt SAE GDS (Regs)
INTERIM EX-DIVIDEND DATE
4Imprint Group, AstraZeneca, BG Group, Countrywide, CSR, Direct Line Insurance Group, Dragon Oil, Ferrexpo, GKN, Greencoat UK Wind, IMI, Informa, Keller Group, Kennedy Wilson Europe Real Estate , Law Debenture Corp., LSL Property Services, Man Group, Meggitt, Millennium & Copthorne Hotels, Moneysupermarket.com Group, Pearson, Rentokil Initial, Rio Tinto, RM, Schroders, Schroders (Non-Voting), Standard Chartered, Telecity Group, Vesuvius
QUARTERLY EX-DIVIDEND DATE
Blackrock North American Income Trust , MedicX Fund Ltd., Picton Property Income Ltd, Royal Dutch Shell 'A', Royal Dutch Shell 'B', TwentyFour Select Monthly Income Fund Limited
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Business Inventories (US) (13:30)
Consumer Price Index (GER) (07:00)
Crude Oil Inventories (US) (15:30)
Industrial Production (EU) (10:00)
Manufacturing Inventories (US) (15:00)
MBA Mortgage Applications (US) (12:00)
Retail Sales (US) (13:45)
Retail Sales Inventories (US) (15:15)
Q2
Telecom Egypt SAE GDS (Regs)
SPECIAL EX-DIVIDEND PAYMENT DATE
Countrywide, Direct Line Insurance Group, Fresnillo, LSL Property Services
EGMS
PJSC Novorossiysk Commercial Sea Port GDR (Reg S)
AGMS
African Minerals Ltd., Doriemus, Mountview Estates, Real Estate Credit Investments PCC Ltd
UK ECONOMIC ANNOUNCEMENTS
BoE Inflation Report (09:30)
Claimant Count Rate (09:30)
Unemployment Rate (09:30)
FINAL DIVIDEND PAYMENT DATE
Montanaro UK Smaller Companies Inv Trust, Speedy Hire
FINAL EX-DIVIDEND DATE
Ashtead Group, BT Group, Casdon plc, Diageo, Greene King, Hayward Tyler Group, Iomart Group, Latchways, Mulberry Group, New Century AIM VCT, Newmark Security PLC, Northgate, PZ Cussons, Sweett Group
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks little changed after German inflation, Chinese data - German inflation unrevised
- Chinese data misses forecasts
- BoE Inflation Report in focus
- UK employment figures due
FTSE 100: -0.02%
DAX: 0.89%
CAC 40: 0.75%
FTSE MIB: 0.89%
IBEX 35: 0.76%
Stoxx 600: 0.45%
European stocks were little changed as German inflation data was in line with forecasts and Chinese reports on industrial production and retail sales fell short of expectations.
German consumer prices rose 0.8% year-on-year in July after a 1% increase in June, Germany's statistics confirmed on Wednesday.
Alpari UK analyst James Hughes said the German economy has been "struggling on all fronts" with weak figures on gross domestic product, inflation, trade and industrial production.
"This of course could pose a huge threat to the Eurozone and gives the European Central Bank huge problems," he said.
"The overall problem for the Mario Draghi is without a strong Germany, we do not have a strong Eurozone, and the fear is that all the measures thrown at dragging the economy out of the mire could well be about to fail due to the failing of the single currency's largest economy."
In China, retail sales gained 12.2% in July after rising 12.4% a month earlier, falling short of analysts' estimates for a 12.5% increase.
A separate report showed industrial production climbed 9% in July after a 9.2% lift in June. Analysts had expected it to rise at the same rate as June.
In Wednesday's morning session investors will focus on the release of UK employment figures and the Bank of England's Inflation Report. Economists say the central bank is likely to keep the market guessing on an interest rate hike when it delivers its report which will provide new forecasts on economic growth.
On the company front, Gagfah jumped after the third-biggest German property company raised its 2014 earnings forecast.
Swiss Life Holding edged higher after posting first-half profit that beat analysts' forecast and announcing it will buy real estate asset manager Corpus Sireo.
The euro fell 0.11% to $1.3354.
Brent crude futures fell 0.2% to $102.81 per barrel, according to the ICE. |
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| | US Market Report | | US close: Equities fall as investors watch Ukraine, energy stocks fall - Ukraine in focus as Russia sends convoy
- IEA trims oil demand forecast
- Energy stocks track oil prices lower
Dow Jones: -0.06%
Nasdaq: -0.27%
S&P 500: -0.16%
After two days in positive territory, US stocks declined on Tuesday with energy stocks tracking oil prices lower while investors watched geopolitical developments.
The Dow Jones Industrial Average finished 0.1% lower at 16,560.54, the S&P 500 fell 0.2% to 1,933.75, while the Nasdaq finished down 0.3% at 4,389.25.
Markets were keeping a close eye on the Ukraine crisis during the session after Russia said it would send 280 trucks carrying humanitarian aid across the border.
However, Ukraine said that it would not allow the convoy into the country if it is not certified first by the Red Cross.
Meanwhile, crude futures declined on Tuesday with Brent hitting its lowest in nine months after the International Energy Agency (IEA) said global oil demand would increase by less than initially estimated this year.
The IEA said: "Despite armed conflict in Libya, Iraq and Ukraine, the oil market today looks better supplied than expected, with an oil glut even reported in the Atlantic basin."
As such, energy stocks such as Southwestern Energy, Anadarko Petroleum and Chesapeake Energy were among the worst performers on the S&P 500.
In other corporate news, Apple shares were higher amid speculation that the company has started production of new iPad models.
Bakery goods group Flowers Foods was a heavy faller after second-quarter results disappointed the market on the back of increased promotions and competition.
Job openings hit 13-year high
In economic news, the Bureau of Labor Statistics' latest job openings and labour turnover survey (JOLTS) showed job openings at a 13-year high, rising by 90,000 to hit 4.67m (consensus: 4.55m) in June, versus a revised 4.58m in May.
Analysts at Barclays said that the JOLTS data "suggests that there is little slack remaining in labor markets and that wage growth will pick up more quickly than it did at similar levels of the unemployment rate in past cycles".
Meanwhile, the National Federation of Independent Business' small business optimism index increased from 95 to 95.7 in July, slightly short of the 96 consensus estimate.
S&P 500 - Risers
Newmont Mining Corp. (NEM) $27.08 +2.07%
Intuitive Surgical Inc. (ISRG) $451.60 +1.70%
Intel Corp. (INTC) $33.13 +1.64%
Biogen Idec Inc. (BIIB) $324.96 +1.44%
Electronic Arts Inc. (EA) $35.56 +1.40%
CenturyLink Inc. (CTL) $40.78 +1.27%
Allegion (ALLE) $50.96 +1.19%
WellPoint Inc. (WLP) $108.65 +1.17%
Fastenal Co. (FAST) $45.05 +1.15%
Allstate Corp (The) (ALL) $60.15 +0.99%
S&P 500 - Fallers
Salesforce.Com Inc. (CRM) $52.75 -3.86%
Southwestern Energy Co. (SWN) $38.21 -2.81%
F5 Networks Inc. (FFIV) $113.66 -2.66%
CONSOL Energy Inc. (CNX) $39.48 -2.42%
Perrigo Company plc (PRGO) $138.89 -2.36%
Anadarko Petroleum Corp. (APC) $106.11 -2.21%
CBS Corp. (CBS) $58.90 -2.13%
Diamond Offshore Drilling Inc. (DO) $45.12 -2.12%
Chesapeake Energy Corp. (CHK) $25.86 -2.08%
Pioneer Natural Resources Co. (PXD) $204.58 -2.04%
Dow Jones I.A - Risers
Intel Corp. (INTC) $33.13 +1.64%
Microsoft Corp. (MSFT) $43.53 +0.75%
E.I. du Pont de Nemours and Co. (DD) $65.49 +0.71%
Merck & Co. Inc. (MRK) $57.03 +0.65%
AT&T Inc. (T) $34.64 +0.49%
Travelers Company Inc. (TRV) $91.10 +0.49%
Unitedhealth Group Inc. (UNH) $80.22 +0.44%
Verizon Communications Inc. (VZ) $48.83 +0.34%
Coca-Cola Co. (KO) $39.68 +0.28%
3M Co. (MMM) $140.88 +0.21%
Dow Jones I.A - Fallers
United Technologies Corp. (UTX) $104.91 -0.77%
General Electric Co. (GE) $25.61 -0.70%
Pfizer Inc. (PFE) $28.09 -0.57%
Johnson & Johnson (JNJ) $100.64 -0.51%
Chevron Corp. (CVX) $127.07 -0.50%
Nike Inc. (NKE) $76.72 -0.44%
Walt Disney Co. (DIS) $87.21 -0.33%
Cisco Systems Inc. (CSCO) $25.15 -0.32%
Boeing Co. (BA) $120.46 -0.28%
Exxon Mobil Corp. (XOM) $98.49 -0.24%
Nasdaq 100 - Risers
Intuitive Surgical Inc. (ISRG) $451.60 +1.70%
Intel Corp. (INTC) $33.13 +1.64%
Biogen Idec Inc. (BIIB) $324.96 +1.44%
Nxp Semiconductors Nv (NXPI) $62.52 +1.33%
Fastenal Co. (FAST) $45.05 +1.15%
Kraft Foods Group, Inc. (KRFT) $56.10 +0.99%
Twenty-First Century Fox Inc Class A (FOXA) $35.11 +0.98%
Intuit Inc. (INTU) $82.03 +0.80%
Monster Beverage Corp (MNST) $70.70 +0.80%
Microsoft Corp. (MSFT) $43.53 +0.75%
Nasdaq 100 - Fallers
F5 Networks Inc. (FFIV) $113.66 -2.66%
Illumina Inc. (ILMN) $163.03 -2.64%
Western Digital Corp. (WDC) $99.50 -1.43%
Mattel Inc. (MAT) $35.24 -1.34%
Keurig Green Mountain Inc (GMCR) $114.07 -1.18%
Priceline Group Inc (PCLN) $1,294.39 -1.14%
Netflix Inc. (NFLX) $446.41 -1.14%
Catamaran Corp (CTRX) $44.58 -1.09%
Sandisk Corp. (SNDK) $91.40 -1.06%
TripAdvisor Inc. (TRIP) $94.74 -0.93% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: BoE, Iraq, Legal & General... The Bank of England will publish its latest quarterly outlook for the UK economy [Wednesday], with homeowners and savers alike looking for any indication of when interest rates may begin to rise. November this year or February 2015 remain the best guesses of economists with Britain's economic recovery to pre-recession levels after six years confirmed last month. But the economic recovery remains imbalanced with only the services sector back above its pre-recession peak. - The Daily Mail
The United Nations has warned that a mass atrocity or genocide of refugees in the Mount Sinjar region of northern Iraq could still happen "within days or hours". The UN's special rapporteur who has been investigating the plight of 40,000 mainly Kurdish-speaking Yazidis who fled to the mountain fearing attacks from the extremist militants of the Islamic State (IS), said the world urgently needed to recognise the severity of the humanitarian crisis. - The Independent
Legal & General is to announce on Wednesday that it is leaving the Association of British Insurers (ABI), the industry's trade body. L&G, one of the UK's largest insurers, is expected to reveal the shock move after deciding it would be better placed to lobby for its interests if it was not a member of the ABI, which boasts 300 members and covers 90pc of the sector. - The Telegraph
Britain's accounting watchdog has launched an investigation into Grant Thornton over its audit of London fire brigade strike breaker Assetco in another major embarrassment for the auditor. The Financial Reporting Council has begun an inquiry into the preparation of the accounts of AIM-listed Assetco two years after the struggling company sold off its UK business, ending its involvement in a contract that saw it provide emergency cover in the event of a walk out by London firemen. - The Times
Shares in the video games maker King Digital lost close to a quarter of their value on Tuesday after it reported declining popularity for its phenomenally successful Candy Crush Saga. Reporting after the stock markets closed, the company said gross bookings for the quarter - a measure that tracks how much users pay for virtual items and other goodies on its games - fell to $611.1m from $641m in the previous quarter.- The Guardian
Diageo's Ivan Menezes received a £7.8 million pay package in his first year as chief executive of the drinks giant, although it was almost £500,000 less than he picked up 
in his previous role as chief operating officer. - The Scotsman
A Cyprus-based company that was paid $50 million by Frank Timis's African Minerals was partly owned by a former SAS soldier who was convicted of possessing explosives discovered as part of a money-laundering investigation. African Minerals called in corporate detectives after it was alleged that Mr Timis, the mining group's founder and executive chairman, owned a 25 per cent stake in GIO Cyprus, the company to which he approved the $50 million payment. - The Times | | |
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