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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: French and German GDP data disappoint - France tosses out 2014 deficit reduction target
- TUI Travel leads gains after comments from TUI AG CEO
- Glencore downgraded at Credit Suisse
- Cable at 200-day moving average
techMARK 2,742.00 +0.12%
FTSE 100 6,660.86 +0.06%
FTSE 250 15,549.52 +0.14%
After an initial dip at the start of trading, following the release of weaker than expected data on French and German economic growth, London equities have now moved back into the blue.
Germany'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.
Acting as a backdrop, the main US equity averages ended Wednesday's session with moderate gains. The Dow Jones Industrials ended the day 0.55% higher at 16,652 and the S&P 500 up by 0.69% to 1,947.
To take note of, the Russian convoy of humanitarian aid which has been making its way to Ukraine over the last few days is expected to reach the Ukrainian border in the next few hours. Kiev has indicated that it will allow the vehicles to enter the country if it is first allowed to inspect the contents and then distribute the aid themselves.
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.
Carillion and Ophir Energy lead advance
TUI Travel led gains in the early going. 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 are 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.
Construction group Carillion on Thursday 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 firm 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.
Ophir Energy swung to a half-year profit as the oil and gas firm sold assets in Tanzania. The group reported a pre-tax profit from continuing operating operations of $589,436 in the six months to end of June 2014, compared to a loss of $19,374 for the same period a year earlier.
FTSE 100 - Risers
TUI Travel (TT.) 368.90p +1.93%
British Land Co (BLND) 718.50p +1.63%
Land Securities Group (LAND) 1,079.00p +1.22%
Coca-Cola HBC AG (CDI) (CCH) 1,339.00p +0.83%
Johnson Matthey (JMAT) 3,038.00p +0.80%
Prudential (PRU) 1,415.00p +0.78%
Whitbread (WTB) 4,235.00p +0.64%
Hammerson (HMSO) 602.50p +0.58%
Shire Plc (SHP) 4,826.00p +0.54%
HSBC Holdings (HSBA) 641.70p +0.53%
FTSE 100 - Fallers
Rio Tinto (RIO) 3,360.50p -1.84%
Glencore (GLEN) 360.10p -1.48%
G4S (GFS) 270.00p -1.28%
Friends Life Group Limited (FLG) 309.00p -0.99%
BHP Billiton (BLT) 2,023.50p -0.78%
Anglo American (AAL) 1,564.50p -0.76%
Antofagasta (ANTO) 803.00p -0.74%
Intertek Group (ITRK) 2,802.00p -0.71%
Barratt Developments (BDEV) 348.60p -0.63%
St James's Place (STJ) 729.00p -0.61%
FTSE 250 - Risers
Domino Printing Sciences (DNO) 628.00p +3.12%
Grafton Group Units (GFTU) 604.00p +2.90%
Ophir Energy (OPHR) 204.00p +2.77%
Derwent London (DLN) 2,750.00p +2.73%
Poundland Group (PLND) 320.00p +2.27%
Carillion (CLLN) 326.50p +2.03%
Ted Baker (TED) 1,725.00p +1.89%
Crest Nicholson Holdings (CRST) 351.20p +1.47%
Kennedy Wilson Europe Real Estate (KWE) 1,085.00p +1.40%
Genus (GNS) 1,050.00p +1.35%
FTSE 250 - Fallers
Perform Group (PER) 210.00p -2.33%
JD Sports Fashion (JD.) 398.30p -1.65%
AO World (AO.) 203.00p -1.60%
Drax Group (DRX) 635.50p -1.47%
Cineworld Group (CINE) 323.40p -1.40%
Fidessa Group (FDSA) 2,263.00p -1.39%
Infinis Energy (INFI) 212.70p -1.30%
Evraz (EVR) 101.70p -1.26%
Berendsen (BRSN) 1,044.00p -1.04% |
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| | UK Event Calendar | | Thursday August 14
INTERIMS
Afarak Group (DI), AZ Electronic Materials SA (DI), Centamin (DI), Cineworld Group, Ophir Energy, Partnership Assurance Group , Societatea Nationala De Gaze Naturale Romgaz S.A. GDR (Reg S), Talvivaara Mining Company (CDI), X5 Retail Group NV GDR (Reg S)
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Price Index (EU) (10:00)
Continuing Claims (US) (13:30)
ECB Report (EU) (09:00)
GDP (Flash Estimate) (EU) (10:00)
Gross Domestic Product (GER) (07:00)
Harmonised Index of Consumer Prices (EU) (10:00)
Import and Export Price Indexes (US) (13:30)
Initial Jobless Claims (US) (13:30)
Q2
Afarak Group (DI), Centamin (DI), Talvivaara Mining Company (CDI), X5 Retail Group NV GDR (Reg S)
Q4
Energy XXI (Bermuda) (DI)
GMS
Polymetal International
FINALS
Rank Group
IMSS
Zoopla Property Group (WI)
AGMS
Imaginatik, John Laing Environmental Assets Group Limited , Ncondezi Energy Limited (DI), Subex Ltd GDR (Reg S)
UK ECONOMIC ANNOUNCEMENTS
RICS Housing Market Survey (09:30)
FINAL DIVIDEND PAYMENT DATE
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks mostly lower as German, French GDP slows - German, French GDP slows
- Eurozone GDP data due
- Euro-area inflation to be released
FTSE 100: 0.09%
DAX: -0.35%
CAC 40: -0.46%
FTSE MIB: -0.77%
IBEX 35: -0.53%
Stoxx 600: -0.22%
European stocks were mostly lower after as economic growth eased more than expected in the Eurozone's two biggest economies.
German gross domestic product (GDP) 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 GDP stagnated, increasing 0.1% in the second quarter compared to 0.8% in the first three months. Analysts had predicted a 0.3% increase.
The reports are likely to fuel concerns about the health of the euro-area as the European Central Bank (ECB) comes under mounting pressure to do more to boost the economy and address low inflation.
"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," said Capital Economics.
"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."
Eurozone GDP figures will be released at 09:00 GMT and economists expect second quarter growth of 0.1%, down from 0.2% in the first quarter.
Final inflation figures in the euro-area are also due at 09:00 GMT and will be closely watched for any revisions.
Novozymes, ThyssenKrupp
Novozymes A/S retreated after the largest supplier of enzymes reported second-quarter net income that missed analysts' estimates.
ThyssenKrupp AG advanced after the German steelmaker posted quarterly earnings that exceeded forecasts.
RWE AG slumped after the German utility reported a 62% fall in first-half profit as sales declined.
K+S AG gained after reporting second-quarter earnings before interest and taxes that beat market expectations.
The euro fell 0.02% to $1.3361.
Brent crude futures dropped 0.32% to $103.94 per barrel, according to the ICE. |
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| | US Market Report | | US Close: Stocks rally despite flat retail sales - Stocks rise as investors shrug off flat retail sales
- Macy's misses quarterly earnings estimates
- Pharma stocks drive rally
- Weekly mortgage applications fall
Dow Jones Industrial Average - 16,652 +91 0.55%
Nasdaq - 4,434 +45 1.02%
S&P 500 - 1,947 +13 0.69%
US stocks brushed off downbeat retail sales data and lacklustre corporate earnings to close the session firmly in positive territory.
The Dow Jones industrial average, S&P500 and Nasdaq Composite all rose as traders turned a blind eye to flat retail sales in July following a 0.2% rise in June.
A second straight month of declines in business at car dealers resulted in the weakest monthly retail sales since January, but activity elsewhere also lacked vigour, as sales excluding motors rose only 0.1%.
The numbers prompted Barclays analysts to reduce their estimates for second and third quarter US gross domestic product (GDP).
"On balance, this report lowered our Q2 real GDP tracking estimate one-tenth, to 4%, and lowered our Q3 real consumption tracking estimate to 2.3% from 2.5% and our Q3 real GDP tracking estimate to 2.4% from 2.5%," Barclays said in a note.
Corporate results also did nothing to lift spirits as department store group Macy's quarterly earnings missed analysts' estimates, depressing shares in rivals Kohl's Corp and Nordstrom.
Macy's, whose shares fell more than 5%, now expects same-store sales to grow by 1.5-2% this year, down from a previous forecast of 2.5-3%.
But drug stocks drove the rally as European regulators gave Vertex Pharmaceuticals the go-ahead to treat cystic fibrosis sufferers with its Kayldeco product, lifting its shares nearly 4%.
Another economic report showed mortgage applications for the week to 8 August fell 2.7% following a 1.6% rise the previous week.
Meanwhile, geopolitical tensions continued as Israel prepared for fresh battles in Gaza and Ukraine said it would block humanitarian aid from Russia. Kurdish forces continued to fight militants in northern Iraq as Prime Minister Nouri al-Maliki tried to hold onto power.
Farm tractor maker Deere & Co slumped more than 2% after saying equipment sales would fall by 6% this fiscal year, below the previous 4% guidance. The company said it would scale back production with grain prices being weighed down by record crops.
Amazon.com rose more than 2% as the online retailer launched a new mobile payment service using a smartphone or tablet.
Worse-than-expected quarterly results hammered shares in Candy Crush Saga maker King Digital Entertainment and theme park group SeaWorld Entertainment.
The 10-year yield fell 2.5 basis points to 2.41%.
West Texas Intermediate futures fell 0.71 or 0.73% to $97.37 per barrel.
S&P 500 - Risers
Biogen Idec Inc. (BIIB) $334.64 +4.46%
Vertex Pharmaceuticals Inc. (VRTX) $88.75 +3.91%
Electronic Arts Inc. (EA) $36.41 +3.83%
Intel Corp. (INTC) $34.10 +2.93%
Nucor Corp. (NUE) $52.49 +2.84%
Allegion (ALLE) $52.24 +2.51%
Amazon.Com Inc. (AMZN) $326.28 +2.50%
Ventas Inc. (VTR) $64.80 +2.48%
Raytheon Co. (RTN) $93.64 +2.47%
Health Care REIT Inc. (HCN) $64.95 +2.27%
S&P 500 - Fallers
Fossil Group Inc (FOSL) $96.55 -6.45%
Macy's Inc. (M) $56.47 -5.51%
Tiffany & Co. (TIF) $96.98 -2.58%
Deere & Co. (DE) $84.49 -2.30%
PVH Corp. (PVH) $112.19 -1.82%
Mosaic Company (MOS) $45.72 -1.74%
eBay Inc. (EBAY) $52.97 -1.69%
International Paper Co. (IP) $47.00 -1.67%
TJX Companies Inc. (TJX) $53.34 -1.60%
Cabot Oil & Gas Corp. (COG) $33.03 -1.55%
Dow Jones I.A - Risers
Intel Corp. (INTC) $34.10 +2.93%
Unitedhealth Group Inc. (UNH) $81.51 +1.61%
Merck & Co. Inc. (MRK) $57.85 +1.44%
Microsoft Corp. (MSFT) $44.08 +1.29%
Boeing Co. (BA) $121.98 +1.25%
Johnson & Johnson (JNJ) $101.74 +1.10%
General Electric Co. (GE) $25.83 +0.86%
Caterpillar Inc. (CAT) $105.16 +0.80%
Nike Inc. (NKE) $77.25 +0.68%
JP Morgan Chase & Co. (JPM) $56.72 +0.66%
Dow Jones I.A - Fallers
E.I. du Pont de Nemours and Co. (DD) $65.11 -0.58%
Wal-Mart Stores Inc. (WMT) $74.03 -0.26%
Cisco Systems Inc. (CSCO) $25.20 -0.12%
Nasdaq 100 - Risers
Biogen Idec Inc. (BIIB) $334.64 +4.46%
Vertex Pharmaceuticals Inc. (VRTX) $88.75 +3.91%
Intel Corp. (INTC) $34.10 +2.93%
Sirius XM Holdings Inc (SIRI) $3.49 +2.65%
Amazon.Com Inc. (AMZN) $326.28 +2.50%
Micron Technology Inc. (MU) $31.38 +2.21%
TripAdvisor Inc. (TRIP) $96.84 +2.21%
Autodesk Inc. (ADSK) $55.79 +2.14%
Akamai Technologies Inc. (AKAM) $58.70 +2.04%
Seagate Technology Plc (STX) $57.93 +1.99%
Nasdaq 100 - Fallers
eBay Inc. (EBAY) $52.97 -1.69%
F5 Networks Inc. (FFIV) $115.07 -1.45%
Keurig Green Mountain Inc (GMCR) $114.05 -1.20%
Bed Bath & Beyond Inc. (BBBY) $61.88 -1.15%
Whole Foods Market Inc. (WFM) $37.96 -1.13%
Ross Stores Inc. (ROST) $65.40 -0.92%
Starbucks Corp. (SBUX) $77.24 -0.75%
Tractor Supply Company (TSCO) $61.71 -0.68%
O'Reilly Automotive Inc. (ORLY) $151.02 -0.65% |
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| | Newspaper Round Up | | Thursday newspaper round-up: Lloyds, House prices, Bank of England Plans for a multibillion-pound sale of shares in Lloyds Banking Group to the general public have been dropped for this year and probably until after the general election next May. George Osborne and Danny Alexander, chief secretary to the Treasury, have ruled out a "Tell Sid" style privatisation because of volatile share markets and the difficulty of finding a window of opportunity amid a string of autumn events that could disrupt or derail any offer. - The Daily Telegraph
House price growth in London is set to collapse with property professionals expecting values to merely creep up by 1.9% over the next 12 months. The capital has become accustomed to soaring house prices over the last year as pent up demand following the recession, a lack of supply and influx of cash buyers have boosted values. However, expectations of future growth have come crashing down according to the latest data from the Royal Institution of Chartered Surveyors (RICS). - The Daily Telegraph
The Bank of England is making emergency plans in case a yes vote in Scotland's independence referendum threatens the stability of sterling, bank governor Mark Carney has disclosed. Carney refused to set out what the Bank's contingency planning involved, but admitted that the disputes between the Scottish and UK governments over the future of the pound "could raise financial stability issues" which were already being addressed. - The Guardian
The highest court in New York has ruled that Northern Rock Asset Management (NRAM), the UK taxpayer-owned institution salvaged from the ashes of the collapsed bank, should be allowed to take legal action against SocGen for mis-selling $34m of mortgage products in the run-up to the financial crisis, in a case which is expected to pave the way for a flurry of similar lawsuits. - The Daily Telegraph
A mass emergency evacuation of Mount Sinjar is unlikely to be necessary for the Yazidi community after US special forces said there was far fewer than expected. Those refugees, who had fled their homes to escape maurading Islamic extremists, still on the mountain are said to be in a better condition than initial reports had suggested. The assessment means that British special forces in northern Iraq, who had been expected to assist in any rescue operation, are now unlikely to be needed. - The Times
HSBC has given 15 of its top bankers "fixed pay allowance arrangements" worth £7.1m under a controversial new pay scheme designed to dodge tough new European Union rules on bankers' bonuses. Britain's biggest bank awarded Samir Assaf, the head of its investment bank, £1.5m worth of shares, and chief executive Stewart Gulliver was given shares worth £850,000. Peter Wong, deputy chairman and head of the Asia-Pacific region, was given £760,000 worth. Iain Mackay, finance director, and Marc Moses, chief risk officer, got £470,000 worth. - The Guardian | | |
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