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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 rise for fifth straight day, BHP Billiton falls - Geopolitical tensions abate in Ukraine
- UK, US CPI in focus
- BHP Billiton fails to excite with demerger plans
techMARK 2,796.26 +0.51%
FTSE 100 6,771.42 +0.45%
FTSE 250 15,869.16 +0.46%
UK stocks rose for a fifth straight day on Tuesday, helped by easing geopolitical tensions in Ukraine.
The FTSE 100 was nearly 0.5% higher at 6,771 in early trading; it has not closed above this mark since 30 July.
"Geopolitics continues to be front and centre of minds at the moment [...] no bad news is certainly viewed as good news for now," according to analysts Colin Tan and Seb Barker from Deutsche Bank.
While crisis talks in Berlin between Ukrainian and Russian officials on Monday failed to result in a ceasefire agreement, investor sentiment has been boosted by reports of progress being made by the Red Cross on a plan to allow a Russian aid convoy into south-east Ukraine.
In economic news, Tuesday's session will see the release of the UK consumer price index (CPI) with the annual rate of inflation expected to fall to 1.8% in July from 1.9% the month before.
The US CPI, due out on Tuesday, is forecast to fall to 2% from 2.1%. US building permits and housing starts data is estimated to have improved in July after a weakness in June.
BHP shares fall on demerger plans
Details of BHP Billiton's hotly-anticipated "portfolio simplification" were unveiled on Tuesday morning but failed to excite the market with the stock slipping into the red early on.
The miner announced plans to create an independent company comprising its aluminium, coal, manganese, nickel and silver assets. At the same time the company also reported a 10% rise in underlying attributable profit to $13.4bn for the 12 months to 30 June.
Building materials group CRH also underwhelmed with shares falling despite the announcement that it swung to a profit in the first half, as favourable weather in Europe and an ongoing recovery in the States helped to offset difficult conditions in the wider Americas region.
Profits rose 57% in the first half of the year at housebuilder Persimmon, which said trading in the early weeks of the second half remained ahead of tough comparative numbers from the prior year. The stock was making gains, along with sector peers Barratt Developments, Crest Nicholson and Bovis Homes.
Imperial Tobacco was also in demand after maintaining its full-year guidance for "modest" earnings growth despite revenues slipping in the first nine months. |
| FTSE 100 - Risers
Barratt Developments (BDEV) 370.70p +3.49%
Sports Direct International (SPD) 715.00p +1.71%
Whitbread (WTB) 4,403.00p +1.69%
Royal Bank of Scotland Group (RBS) 356.90p +1.62%
ITV (ITV) 210.80p +1.59%
Imperial Tobacco Group (IMT) 2,566.00p +1.58%
Carnival (CCL) 2,310.00p +1.36%
Randgold Resources Ltd. (RRS) 5,095.00p +1.29%
Antofagasta (ANTO) 821.50p +1.29%
Mondi (MNDI) 1,027.00p +1.28%
FTSE 100 - Fallers
BHP Billiton (BLT) 1,994.50p -3.51%
CRH (CRH) 1,436.00p -1.37%
Rolls-Royce Holdings (RR.) 1,047.00p -0.66%
Smiths Group (SMIN) 1,294.00p -0.46%
Meggitt (MGGT) 466.80p -0.45%
Rexam (REX) 498.00p -0.22%
Aggreko (AGK) 1,746.00p -0.17%
St James's Place (STJ) 737.50p -0.14%
Morrison (Wm) Supermarkets (MRW) 174.90p -0.06%
National Grid (NG.) 876.50p -0.06%
FTSE 250 - Risers
Wood Group (John) (WG.) 784.00p +4.32%
Centamin (DI) (CEY) 66.55p +3.50%
CSR (CSR) 547.50p +3.30%
Supergroup (SGP) 1,108.00p +3.26%
Hochschild Mining (HOC) 169.20p +2.73%
Polymetal International (POLY) 548.50p +2.43%
Evraz (EVR) 107.30p +2.19%
Howden Joinery Group (HWDN) 351.00p +2.09%
COLT Group SA (COLT) 147.10p +2.08%
RPS Group (RPS) 269.60p +1.70%
FTSE 250 - Fallers
Perform Group (PER) 205.20p -4.07%
Exova Group (EXO) 220.20p -3.84%
Cairn Energy (CNE) 180.40p -3.74%
Rank Group (RNK) 164.50p -2.20%
Just Retirement Group (JRG) 147.20p -1.80%
Redefine International (RDI) 52.20p -1.51%
JD Sports Fashion (JD.) 392.00p -1.23%
Daejan Holdings (DJAN) 4,916.00p -1.13%
UDG Healthcare Public Limited Company (UDG) 345.70p -0.95% |
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| | UK Event Calendar | | Tuesday August 19
INTERIMS
AFI Development, Cairn Energy, CRH, H&T Group, Menzies(John), NMC Health, Persimmon, TT Electronics, Wood Group (John)
INTERIM DIVIDEND PAYMENT DATE
Imperial Tobacco Group
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (EU) (09:00)
Building Permits (US) (13:30)
Consumer Price Index (US) (13:30)
Current Account (EU) (09:00)
Housing Starts (US) (13:30)
GMS
Cyan Holdings
FINALS
BHP Billiton
IMSS
Imperial Tobacco Group
AGMS
Castings, Sunkar Resources, World Trust Fund
UK ECONOMIC ANNOUNCEMENTS
Consumer Price Index (09:30)
Producer Price Index (09:30)
Retail Price Index (09:30)
FINAL DIVIDEND PAYMENT DATE
London Stock Exchange Group
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise before UK and US inflation data - UK, US inflation data in focus
- Ukraine, Iraq and Gaza closely watched
FTSE 100: 0.50%
DAX: 1.10%
CAC 40: 0.57%
FTSE MIB: 0.21%
IBEX 35: 0.61%
Stoxx 600: 0.59%
European stocks gained ahead of UK and US inflation data.
UK consumer prices may have risen 1.8% year-on-year in July after increasing 1.9% in June, according to forecasts ahead of Tuesday morning's report.
The Bank of England (BoE) continues to monitor to what degree the economy has improved enough to sustain an interest rate hike.
In the Bank of England's quarterly Inflation Report last Wednesday, the central bank said inflation is expected to remain close to its 2% target in the period ahead. However, during his press conference Governor Mark Carney said the Bank should be extra cautious in its approach given that wages remained weak.
Signs of improvement in the economy and the labour market had fuelled speculation that a first interest rate hike might come as soon as November. The BoE is said to be comfortable with raising rates in the first quarter of 2015.
The minutes from the latest Monetary Policy Committee meeting, released on Wednesday, may provide further clues on the timing of a rate increase.
The US also releases its consumer price inflation figures later on Tuesday, which are expected to reveal that the headline rate eased back from 2.1% in June to 2% in July.
However, the consumer price index (CPI) is not the Federal Reserve's preferred measure of inflation so the numbers should be taken with a pinch of salt, according to Alpari UK analyst Craig Erlam.
"US inflation, as measures by the CPI reading, is running very close to target [2%] which may soon increase the pressure on the Fed to hike interest rates earlier than it would like," he added.
"That said, certain members have recently suggested that the Fed would allow inflation to run a little over target in an attempt to tackle the problem of slack in the economy, something I imagine Yellen would be very on board with."
Meanwhile, geopolitical developments will continue to be under watch in the Ukraine, Iraq and Gaza. Global stocks bounced higher on Monday as tensions eased back in Ukraine and Iraq.
In corporate news, shipping company A.P. Moeller-Maersk rallied after raising its full-year profit forecast, citing higher freight volumes and lower costs.
BHP Billiton slumped after announcing plans to create an independent company comprising its aluminium, coal, manganese, nickel and silver assets.
The euro fell 0.07% to $1.3354.
Brent crude futures rose 0.27% to $101.88 per barrel, according to the ICE. |
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| | US Market Report | | US close: Nasdaq hits 14-year high as geopolitical concerns ease - Nasdaq at highest since 2000
- Dollar General bids $8.95bn for Family Dollar
- NAHB housing data beats forecasts
- Economic figures, Jackson Hole in focus this week
Dow Jones: +1.06%
Nasdaq: +0.96%
S&P 500: +0.87%
US stocks rose strongly on Monday with the Nasdaq hitting a 14-year high as abating tensions in Ukraine and better-than-expected housing data provided a lift.
M&A activity surrounding Dollar General and deal speculation at General Electric were also driving equity markets higher.
The Nasdaq gained 1% to close at 4,508, its highest finish since March 2000. Meanwhile, the Dow Jones Industrial Average rose 1.1% and the S&P 500 settled 0.9% higher.
Stephen Auth, the chief investment officer of Federated Investors, was also providing a boost to risk appetite after saying that the S&P 500 could reach the 2,500 level within 18-24 months.
"Market valuations depend on growth, bond rates and perceptions of risk, and all three of those are going in the direction that actually expands the price/earnings multiple," Auth said.
Economic data
In economic news, the National Association of Home Builders housing market index unexpectedly rose to 55 in August, surprising analysts who had expected it to remain unchanged at 53.
The US economic data calendar was pretty sparse across the globe on Monday, but the schedule looks set to pick up later in the week with inflation numbers, housing-market figures, jobless claims and minutes from the Federal Reserve meeting likely to be closely watched.
Meanwhile, the Jackson Hole summit of central bankers in Wyoming and keynote speech by Fed Chair Janet Yellen on Friday will also be in focus.
Dollar General mades bid for Family Dollar
Dollar General's share price jumped 12% after making a $8.95bn, or $78.50-a-share bid for Family Dollar Stores. Dollar Tree, which had made an offer of $74.50 per Family Dollar shares, was trading lower.
General Electric shares gained on reports that the company is in talks with Swedich appliance maker Electrolux about selling the US conglomerate's appliance business.
Tech stocks were driving gains on the Nasdaq with heavyweights Yahoo and Google on the rise.
S&P 500 - Risers
Dollar General Corp (DG) $64.15 +11.64%
Family Dollar Stores Inc. (FDO) $79.81 +4.93%
United States Steel Corp. (X) $37.88 +4.12%
Southwest Airlines Co. (LUV) $30.82 +3.56%
Nucor Corp. (NUE) $53.66 +3.19%
Genworth Financial Inc. (GNW) $13.81 +2.98%
PulteGroup Inc. (PHM) $18.78 +2.79%
Ingersoll Rand Ltd. (IR) $62.17 +2.68%
Tenet Healthcare Corp. (THC) $60.16 +2.66%
GameStop Corp. (GME) $40.65 +2.56%
S&P 500 - Fallers
Monster Beverage Corp (MNST) $88.44 -5.40%
Dollar Tree Inc (DLTR) $54.26 -2.42%
Applied Materials Inc. (AMAT) $22.10 -1.69%
Allergan Inc. (AGN) $155.62 -1.67%
ConocoPhillips (COP) $79.33 -1.60%
Hess Corp. (HES) $97.90 -1.01%
Spectra Energy Corp. (SE) $40.24 -0.98%
Diamond Offshore Drilling Inc. (DO) $43.90 -0.96%
Range Resources Corp. (RRC) $75.23 -0.92%
TECO Energy Inc. (TE) $17.46 -0.85%
Dow Jones I.A - Risers
United Technologies Corp. (UTX) $108.09 +2.33%
Visa Inc. (V) $214.32 +1.96%
Nike Inc. (NKE) $78.57 +1.87%
General Electric Co. (GE) $26.05 +1.61%
3M Co. (MMM) $144.12 +1.55%
Goldman Sachs Group Inc. (GS) $174.49 +1.51%
Johnson & Johnson (JNJ) $102.69 +1.50%
Boeing Co. (BA) $124.98 +1.48%
Caterpillar Inc. (CAT) $106.99 +1.18%
Coca-Cola Co. (KO) $41.35 +1.15%
Dow Jones I.A - Fallers
Merck & Co. Inc. (MRK) $58.40 -0.36%
AT&T Inc. (T) $34.65 -0.26%
Home Depot Inc. (HD) $83.59 -0.12%
Verizon Communications Inc. (VZ) $48.77 -0.06%
Nasdaq 100 - Risers
Yahoo! Inc. (YHOO) $37.38 +2.50%
F5 Networks Inc. (FFIV) $116.57 +2.25%
Illumina Inc. (ILMN) $172.23 +2.17%
Autodesk Inc. (ADSK) $53.79 +2.15%
Discovery Communications Inc. Class A (DISCA) $44.39 +2.08%
Fastenal Co. (FAST) $44.72 +2.05%
PACCAR Inc. (PCAR) $63.45 +2.03%
Celgene Corp. (CELG) $91.31 +1.90%
Expeditors International Of Washington Inc. (EXPD) $41.33 +1.80%
Micron Technology Inc. (MU) $32.04 +1.75%
Nasdaq 100 - Fallers
Monster Beverage Corp (MNST) $88.44 -5.40%
Dollar Tree Inc (DLTR) $54.26 -2.42%
Applied Materials Inc. (AMAT) $22.10 -1.69%
Nxp Semiconductors Nv (NXPI) $63.23 -1.03%
Tesla Motors Inc (TSLA) $259.94 -0.79%
Alexion Pharmaceuticals Inc. (ALXN) $170.24 -0.62%
NetApp Inc. (NTAP) $41.11 -0.60%
Xilinx Inc. (XLNX) $41.95 -0.43%
Activision Blizzard Inc. (ATVI) $23.27 -0.39% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: Vodafone, Rabobank, Big Four grocers... Vodafone is the worst mobile phone network in the country, despite the £1 billion it spent to improve its performance, according to the largest survey of the nation's signal quality. The Newbury-based company and the only British-owned mobile phone network operating in the country was bottom of the league in terms of overall performance, according to RootMetrics, a testing company. - The Times
Paul Robson, a former trader at Rabobank, has become the first Briton to plead guilty to being part of the worldwide conspiracy to rig the Libor interest benchmark. The executive, who worked at the Dutch bank's London office, admitted before a New York court to one count of bank fraud and wire fraud, as part of a conspiracy that also involved the taxpayer-backed Lloyds Banking Group. - The Telegraph
The gloom engulfing the grocery sector intensified as investors gambled on conditions worsening at some of the Big Four grocers. Fears incoming Tesco boss Dave Lewis will launch further price cuts and slash the dividend has prompted hedge funds to bet on a fall in grocers' share prices, data shows. Financial data group Markit shows Sainsbury's is the second most shorted stock of Britain's 350 largest quoted firms. - The Daily Mail
Politicians and a small business group have joined calls for a full investigation of government-backed loans to small and medium-sized businesses in response to fresh allegations of mis-selling and abuse by high street banks. MPs said that an audit of the Enterprise Finance Guarantee was needed to investigate claims, revealed yesterday by The Times, that taxpayer-funded guarantees were wrongfully secured in order to remove companies' overdrafts. - The Times
Ineos, the company at the centre of last year's bitter dispute with unions at its Grangemouth petrochemical plant, has bought the rights to explore fracking for shale gas in a 127 square mile area around Grangemouth and the Firth of Forth. The company, which is controlled by publicity-shy Switzerland-based multimillionaire Jim Ratcliffe, said on Monday it had bought 51% of the rights to fracking licence PEDL 133, which covers the Midland Valley of Scotland. - The Guardian
The UK is recovering its mantle as a global manufacturing hub and is now one of the cheapest locations to produce goods in Western Europe, according to a ringing endorsement from one of the world's leading consultancy groups. Direct manufacturing costs in the UK have improved by up to 10 percentage points compared to other Western European countries thanks to stable wages and improved productivity over the past decade. - The Telegraph
Women bosses are still earning only three-quarters as much as their male colleagues, meaning they would have to work until they were nearly 80 to catch up with men's lifetime earnings, according to new figures. More than 40 years after the Equal Pay Act outlawed less favourable pay and conditions in the workplace, the data shows that discrepancies in salaries widen at the higher echelons of management, with a "midlife pay crisis" particularly hitting female managers aged over 40, who earn 35% less than men. - The Guardian
The Australian owner of Clydesdale Bank has made its strongest intervention yet in the independence debate, warning that a Yes vote could bring with it a "significant" rise in costs. The alert, from National Australia Bank (NAB), came as the group also said that Clydesdale faces an additional hit of at least £245 million to cover the cost of mis-sold loan insurance and complex interest rate swap products. - The Scotsman | | |
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