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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 snap five-day win streak ahead of central bank minutes - MPC, FOMC minutes in focus
- FTSE 100 pulls back from three-week high
- Balfour drops after rejecting Carillion bid
- Glencore announces $1bn buyback
techMARK 2,802.00 +0.04%
FTSE 100 6,769.90 -0.14%
FTSE 250 15,859.07 -0.23%
UK stocks snapped a five-day winning streak on Wednesday ahead of the minutes from meetings at the Bank of England (BoE) and Federal Reserve (Fed).
With the markets on the lookout for hints about future policy tightening at the two central banks, investors chose to take profits after equities reached a three-week high on Tuesday.
The abrupt end to a ceasefire between Hamas and Israel as well as the reported killing of an American photojournalist by Islamic State militants could have also prompted a cautious mood amongst traders, as geopolitical tensions once again sap risk appetite.
The FTSE 100 was 0.1% lower at 6,770 in early trading after having settled at 6,779.31 the previous session, its highest close since 29 July.
Central bank minutes in focus
With economic data thin on the ground, the focus of Wednesday's trading session will be on central banks in the UK and US.
First up is the BoE which releases the details of this month's Monetary Policy Committee (MPC) meeting at 09:30, which will give a breakdown of how many members voted in favour of keeping the Bank Rate at the record-low level of 0.5% again.
According to analysts at Danske Bank, investors will be watching closely to see whether the MPC voted unanimously. "Speculation of a dissent in voting have especially been fuelled after BoE governor Mark Carney on Sunday night said that the central bank could hike rates before wages increase," they explained.
Nevertheless, July's sharper-than-expected dip in consumer price inflation - as revealed by data on Tuesday - has prompted some economists to push back their expectations of a rate rise firmly into next year.
Minutes from last month's Federal Open Market Committee (FOMC) meeting in the States will be released at 19:00 and could also spark some volatility on financial markets worldwide. The FOMC delivered a relatively hawkish message about inflation at its latest meeting, lifting its medium-term forecasts for price rises.
Investors may also be on the lookout for comments about the Fed's exit strategy from its quantitative easing programme which is on course to finish in October.
Balfour slumps, ex-div stocks fall
As expected, construction group Balfour Beatty has rejected Tuesday's improved merger offer from rival Carillion, causing shares in both companies to fall early on. Balfour said the proposal was not in its shareholders' best interests, noting that the latest offer was only a "small value change" from the preceding bid.
A number of blue chips were weighing on the market on Wednesday morning after going ex-dividend, including British American Tobacco, Hammerson, InterContinental Hotels Group, Mondi, Prudential, Rexam and Carnival.
Stocks on the FTSE 250 trading without access to their latest dividend payouts included Brit, Catlin, Fidessa and Taylor Wimpey.
Mining and trading giant Glencore was a bright spark after reporting an 11% increase in its interim dividend and unveiling a $1bn share buyback after profits rose in the first half of 2014.
Meanwhile, a reduction in risk appetite was benefiting stocks in the defensive sectors such as utilities, with National Grid, SSE, Centrica and United Utilities among the best performers.
Housebuilders such as Persimmon, Barratt Developments and Berkeley Group were pulling back after a decent performance on Tuesday. |
| FTSE 100 - Risers
Centrica (CNA) 317.40p +0.79%
Standard Chartered (STAN) 1,227.00p +0.78%
Glencore (GLEN) 361.50p +0.71%
Hargreaves Lansdown (HL.) 1,114.00p +0.63%
SSE (SSE) 1,514.00p +0.60%
Royal Mail (RMG) 441.40p +0.59%
Kingfisher (KGF) 312.40p +0.58%
GlaxoSmithKline (GSK) 1,420.50p +0.57%
Ashtead Group (AHT) 937.00p +0.54%
United Utilities Group (UU.) 880.50p +0.51%
FTSE 100 - Fallers
Mondi (MNDI) 1,004.00p -1.86%
British American Tobacco (BATS) 3,523.50p -1.62%
Hammerson (HMSO) 606.00p -1.38%
Rexam (REX) 487.60p -1.30%
Antofagasta (ANTO) 809.00p -1.10%
CRH (CRH) 1,413.00p -1.05%
Carnival (CCL) 2,272.00p -1.05%
Rolls-Royce Holdings (RR.) 1,023.00p -0.97%
3i Group (III) 388.50p -0.89%
Old Mutual (OML) 194.90p -0.86%
FTSE 250 - Risers
Exova Group (EXO) 234.90p +3.25%
FirstGroup (FGP) 122.80p +2.85%
Keller Group (KLR) 884.50p +1.90%
Hochschild Mining (HOC) 162.20p +1.38%
Pets at Home Group (PETS) 183.90p +1.27%
Drax Group (DRX) 645.50p +1.25%
Dixons Carphone (DC.) 343.60p +1.06%
Imagination Technologies Group (IMG) 200.30p +0.91%
Kazakhmys (KAZ) 309.00p +0.85%
Wood Group (John) (WG.) 795.00p +0.82%
FTSE 250 - Fallers
Balfour Beatty (BBY) 241.50p -5.66%
Berkeley Group Holdings (The) (BKG) 2,480.00p -3.99%
Perform Group (PER) 206.00p -3.78%
JD Sports Fashion (JD.) 390.00p -2.40%
IP Group (IPO) 205.10p -2.19%
Carillion (CLLN) 329.40p -2.17%
COLT Group SA (COLT) 143.40p -2.12%
Brit (BRIT) 254.90p -1.96%
Catlin Group Ltd. (CGL) 510.00p -1.92% |
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| | UK Event Calendar | | Wednesday August 20
INTERIMS
Frutarom Industries Ltd GDR (Reg S), Gem Diamonds Ltd. (DI), Glencore , Hikma Pharmaceuticals, Hochschild Mining, UK Commercial Property Trust
INTERIM EX-DIVIDEND DATE
Brit , British American Tobacco, Catlin Group Ltd., Dairy Farm International Holdings Ltd. (Singapore), Fidessa Group, Hammerson, Henderson Opportunities Trust, Hongkong Land Holding Ltd. (Sing.Reg), InterContinental Hotels Group, Jardine Matheson Holdings Ltd (Singapore Reg), Jardine Matheson Holdings Ltd. (Bermuda), Jardine Matheson Holdings Ltd. (Jersey), Jardine Strategic Holdingd Ltd. (Bermuda), Jardine Strategic Holdingd Ltd. (Singapore), Mandarin Oriental International (Singapore), Mobeus Income & Growth 4 Vct, Mobeus Income & Growth Vct, Mondi, Partnership Assurance Group , Pembroke Vct, Plus500 Ltd (DI), Prudential, Rexam, Secure Trust Bank, Taylor Wimpey, The Renewables Infrastructure Group Limited, UBM
QUARTERLY EX-DIVIDEND DATE
Brunner Inv Trust, Carnival, M Winkworth, Utilico Investments Ltd (DI)
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
FOMC Interest Rate Minutes (US) (19:00)
MBA Mortgage Applications (US) (12:00)
Producer Price Index (GER) (07:00)
Q2
Frutarom Industries Ltd GDR (Reg S)
GMS
ADVFN
SPECIAL EX-DIVIDEND PAYMENT DATE
Lindsell Train Inv Trust, Mobeus Income & Growth 4 Vct
EGMS
New World Resources A Shares
AGMS
Acorn Income Fund Ld, Acorn Income Fund Ltd, BlueCrest AllBlue Fund Ltd. GBP Shares, Latham (James), Praetorian Resources Ltd
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Minutes (09:30)
CBI Industrial Trends Surveys (11:00)
FINAL DIVIDEND PAYMENT DATE
Halma, National Grid
FINAL EX-DIVIDEND DATE
Aberdeen Private Equity Fund Ltd. Sterling Part Shares, Downing Structured Opportunities VCT 1 'B' Shares, Downing Structured Opportunities VCT 1 'D' Shares, Eckoh, First Property Group, JPMorgan Brazil Inv Trust , Lindsell Train Inv Trust, Phoenix IT Group, PHSC
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks little changed before BoE and Fed minutes - BoE and Fed to release meeting minutes
- Eurozone construction output data due
- Geopolitical crises escalate
FTSE 100: -0.14%
DAX: -0.10%
CAC 40: -0.06%
FTSE MIB: 0.06%
IBEX 35: 0.23%
Stoxx 600: 0.03%
European stocks were little changed at Wednesday's open ahead of the release of minutes from the latest meetings of the Bank of England (BoE) and Federal Reserve.
Markets will be closely watching the minutes to see if the central banks provide any clues as to when they will raise interest rates.
The BoE earlier in August decided to keep policy unchanged, holding interest rates at 0.5%. While an improvement in the UK economy has put pressure on the Bank to lift rates, Governor Mark Carney said wage growth remained weak.
The first rate hike is expected in the first quarter of 2015 and Carney has said raises would be gradual.
The Fed in July announced it would cut a further $10bn off monthly bond purchases and maintain interest rates at 0.25%. The US central bank has indicated that it sees no immediate need to lift rates, saying that the labour market still has room to grow.
"It's getting more and more difficult to predict what these central banks are going to do by assessing the data alone, so these minutes could provide crucial insight into the timing of the first rate hike from both central banks," said Alpari UK analyst Craig Erlam.
Aside from the minutes, the macro economic agenda will be thin on the ground with Eurozone construction output the only notable release.
Geopolitical tensions in Iraq, Gaza and Ukraine will continue to be monitored by investors. In the latest developments, fighting in Gaza resumed in violation of a ceasefire while Ukraine troops pushed out pro-Russian rebels from Donetsk and battles recommenced at Mosul Dam in northern Iraq.
Balfour Beatty rejects Carillion bid
Balfour Beatty retreated after the UK builder rejected an increased merger bid by Carillion.
Heineken gained after reporting first-half profit that beat analysts' estimates.
Carlsberg slumped after the brewer slashed its full-year earnings forecast, blaming deteriorating conditions in its Eastern Europe unit including
Russia, which contributes a large portion of its profits.
Glencore was a high riser after the miner posted a rise in first-half income that exceeded market forecasts.
The euro fell 0.22% to $1.3291.
Brent crude futures rose 0.25% to $101.82 per barrel, according to the ICE. |
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| | US Market Report | | US close: Retailers, US inflation data boost stocks - US inflation falls
- Housing starts jump
- Retail stocks rally
DJIA: 0.48%
S&P 500: 0.50%
Nasdaq: 0.43%
US stocks gained as investors weighed solid earnings from retailers and reports on inflation and housing starts.
Home Depot helped to push retail stocks higher after reporting a rise in second quarter revenue that beat estimates and lifted its forecasts.
TJX Cos. rallied as the discount apparel company that owns T.J. Maxx and Marshalls raised its full-year profit forecast after posting an increase in second quarter income.
Dick's Sporting Goods jumped as it beat second-quarter earnings forecasts.
On the downside of corporate news, Elizabeth Arden slumped after saying fall in sales of celebrity fragrances was lower than expected in the fourth quarter.
The focus, however, was squarely on US inflation data which showed a 2% year-on-year increase in July, as expected, after rising 2.1% in June. Consumer prices increased 0.1% in July when compared to a month ago, as forecast, following a 0.3% increase. Excluding food and energy, prices rose 1.9% year-on-year and 0.1% month-on-month.
"The recent slowdown in the pace at which core consumer prices are rising eases some of the pressure on the [Federal Reserve] to start considering increasing interest rates, although only temporarily," said Capital Economics.
The Fed will on Wednesday release minutes from its 29-30 July policy meeting, which may provide further clues on the timing of the first rate hike.
Another US report on Tuesday revealed US housing starts jumped 15.7% in July after falling 4% a month before, surpassing analysts' estimates for an 8.1% gain.
Barclays Research said it viewed the data as "more evidence that the moderate recovery in housing activity is back on track after the disruption in recent months caused by higher mortgage rates and adverse winter weather".
Meanwhile, tensions in the Ukraine seemed to cool after Russia said it had sent more aid to the country. Ukraine also said it had made headway against pro-Russian rebels storming its regions.
The US 10-year yield rose one basis point to 2.40%.
West Texas Intermediate crude futures dropped 2.1% to $94.38 per barrel, according to the ICE.
S&P 500 - Risers
TJX Companies Inc. (TJX) $58.56 +8.65%
Home Depot Inc. (HD) $88.23 +5.55%
F5 Networks Inc. (FFIV) $120.02 +5.27%
Urban Outfitters Inc. (URBN) $38.59 +4.52%
Ross Stores Inc. (ROST) $69.31 +4.04%
Allergan Inc. (AGN) $161.82 +3.99%
Lennar Corp. Class A (LEN) $38.80 +3.33%
D. R. Horton Inc. (DHI) $21.82 +3.27%
Cognizant Technology Solutions Corp. (CTSH) $46.22 +3.26%
Intuitive Surgical Inc. (ISRG) $473.17 +3.06%
S&P 500 - Fallers
Hospira Inc. (HSP) $53.92 -2.81%
Intercontinental Exchange Inc (ICE) $185.69 -2.27%
Dollar Tree Inc (DLTR) $54.71 -1.61%
Viacom Inc. Class B (VIAB) $81.22 -1.14%
Adt Corp (ADT) $36.24 -1.09%
Ingersoll Rand Ltd. (IR) $61.55 -1.01%
Dollar General Corp (DG) $63.59 -0.86%
Western Digital Corp. (WDC) $100.01 -0.82%
Scripps Network Interactive Inc. (SNI) $80.34 -0.79%
Regeneron Pharmaceuticals Inc. (REGN) $346.79 -0.76%
Dow Jones I.A - Risers
Home Depot Inc. (HD) $88.23 +5.55%
Unitedhealth Group Inc. (UNH) $83.47 +1.37%
American Express Co. (AXP) $88.12 +1.10%
Chevron Corp. (CVX) $127.63 +1.05%
Cisco Systems Inc. (CSCO) $24.64 +0.86%
Merck & Co. Inc. (MRK) $58.91 +0.84%
E.I. du Pont de Nemours and Co. (DD) $66.29 +0.64%
JP Morgan Chase & Co. (JPM) $57.56 +0.58%
Wal-Mart Stores Inc. (WMT) $74.88 +0.52%
Intel Corp. (INTC) $34.34 +0.50%
Dow Jones I.A - Fallers
AT&T Inc. (T) $34.48 -0.49%
Goldman Sachs Group Inc. (GS) $173.96 -0.34%
Coca-Cola Co. (KO) $41.26 -0.22%
Verizon Communications Inc. (VZ) $48.70 -0.16%
Travelers Company Inc. (TRV) $92.91 -0.09%
General Electric Co. (GE) $26.05 -0.08%
Nike Inc. (NKE) $78.51 -0.05%
Exxon Mobil Corp. (XOM) $99.49 -0.03%
Nasdaq 100 - Risers
F5 Networks Inc. (FFIV) $120.02 +5.27%
Ross Stores Inc. (ROST) $69.31 +4.04%
Cognizant Technology Solutions Corp. (CTSH) $46.22 +3.26%
Intuitive Surgical Inc. (ISRG) $473.17 +3.06%
Fastenal Co. (FAST) $44.96 +2.60%
Google Inc. Class C (GOOG) $586.86 +2.33%
Expeditors International Of Washington Inc. (EXPD) $41.54 +2.32%
Google Inc. (GOOGL) $597.11 +2.30%
Facebook Inc. (FB) $75.29 +2.25%
Catamaran Corp (CTRX) $46.82 +2.23%
Nasdaq 100 - Fallers
Dollar Tree Inc (DLTR) $54.71 -1.61%
Tesla Motors Inc (TSLA) $256.76 -1.22%
Sba Communications Corp. (SBAC) $108.02 -1.16%
Viacom Inc. Class B (VIAB) $81.22 -1.14%
Activision Blizzard Inc. (ATVI) $23.01 -1.12%
Western Digital Corp. (WDC) $100.01 -0.82%
Charter Communications Inc. (CHTR) $156.15 -0.80%
Regeneron Pharmaceuticals Inc. (REGN) $346.79 -0.76%
NetApp Inc. (NTAP) $40.83 -0.68% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: Balfour/Carillion, Apple, StanChart... Balfour Beatty is poised to reject a third merger offer from Carillion as hopes for the creation of a £3 billion construction "powerhouse" fade. Sources said the construction group headed by Steve Marshall, the under-fire chairman, is likely to reject Carillion's offer as the new proposal failed to address Balfour's two key concerns regarding the sale of its Parsons Brinckerhoff unit and the credibility of Carillion's assumptions on cost savings. - The Times
Apple shares closed at a record high on Tuesday, as investors gained confidence that the technology company's best days are still to come. Shares topped the $100 mark in early-morning trading in New York, and closed up 1.4pc at $100.53, surpassing the previous record of $100.27 set on September 13, 2012. The new high draws a line under a turbulent few years for the iPad and iPhone maker, which saw its share price drop to just over $55 last year amid concerns that the company had lost some its innovative edge when Steve Jobs, the company's co-founder, died in 2011. - The Telegraph
Standard Chartered has been banned from opening new US dollar bank accounts without the explicit permission of American regulators, amid a series of extraordinary restrictions, after officials warned the lender that it could be used as a conduit for illegal transactions. The New York Department of Financial Services said that it had imposed a $300 million fine on Standard Chartered after finding "numerous errors" in its anti-money laundering systems, only two years after the DFS had fined the bank $340 million for breaching US sanctions. - The Times
Militants from Islamic State (Isis) claimed to have killed an American journalist long held captive in Syria in retaliation for ongoing US air strikes against its forces in Iraq. A propaganda video circulated on Tuesday showed a masked Isis fighter beheading a kneeling man dressed in an orange jumpsuit who is purported to be James Wright Foley, a photojournalist who went missing in Syria in 2012. - The Guardian
A measure of global trade has soared over the past fortnight, signalling a possible return to health of the world economy. The Baltic Dry daily index of shipping costs has jumped by more than 40% in a month, soaring to 1,042 since it hit a post crash low of 732 in July. The jump in prices for sending freight goods around the world indicates that shipping firms are seeing a sharp rise in demand for their services. - The Guardian
Cairn Energy is to cut jobs in a bid to keep costs under control after telling investors that it wants to reduce its exposure to controversial drilling activity in the Arctic. The Edinburgh-based explorer estimates there could be more than three billion barrels of oil waiting to be found off the coast of Greenland, where its activities have been criticised by environmental campaigners, but earlier this year decided to focus on an ambitious programme off the west coast of Africa. - The Scotsman
Homeowners are scrambling to remortgage their properties to prepare for interest rates coming off the rock-bottom levels that have kept borrowing costs low in recent years. Remortgage applications rose by 21pc in July, the most for six months and the first time this year that growth in remortgages has outpaced purchases, according to figures compiled from 550 brokers and 900 estate agents by the Mortgage Advice Bureau (MAB). - The Telegraph | | |
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