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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: Rate-hike speculation, China data limits upside early on - MPC, FOMC minutes reveal hawkish stance
- Chinese manufacturing data weakens
- Long list of economic figures due out
techMARK 2,804.30 +0.27%
FTSE 100 6,763.16 +0.11%
FTSE 250 15,756.32 +0.05%
UK stocks saw a subdued start on Thursday as investors continued to digest rate-hike speculation following minutes of the latest Bank of England and Federal Reserve meetings.
Meanwhile, disappointing manufacturing figures from China were also limiting upside in London early on, ahead of what is set to be a busy day for economic data.
The FTSE 100 opened more or less flat, up just 0.1% at 6,763.
The index finished in the red for the first time in six days on Wednesday after minutes from the Monetary Policy Committee (MPC) meeting showed that policymakers were divided over an interest-rate rise for the first time in three years.
After falling inflation figures earlier in the week led many economists to push back their predictions for the first rate hike, the split vote - two MPC members campaigned for a 25 basis points increase in the Bank Rate - has now clouded the outlook.
As for the Fed, minutes of last month's Federal Open Market Committee (FOMC) meeting revealed a more-hawkish-than-expected stance among policymakers. Akin to the MPC, minutes showed that members were becoming increasingly divided over policy, with a growing minority calling for a "relatively prompt move toward reducing policy accommodation".
Chinese data disappoints
The HSBC China manufacturing purchasing managers' index (PMI) dropped from 51.7 to 50.3 in August. The fall ended a streak of four straight monthly improvements in activity growth and disappointed analysts looking for a slight dip to 51.5.
A long list of global economic data are due out during Thursday's session, including manufacturing PMIs across the Eurozone, retail sales and public borrowing figures in the UK and labour-market and housing indicators in the States.
Meanwhile, the Jackson Hole Symposium of central bankers is due to kick off later on with comments from policymakers around the world likely to be closely watched.
Mining stocks fall
Weak data from top metals consumer China dampened the demand for mining stocks on Wednesday with Fresnillo, Randgold, Rio Tinto, Anglo American and Antofagasta trading lower.
Declining metal prices were also behind the fall in the resources sector as the dollar soared after the FOMC minutes, making greenback-denominated commodities less attractive.
Kazakh metal miner Kazakhmys hailed progress with a shake-up designed to focus it on the lucrative copper market, but shares fell after it said 2014 gold production was likely to fall short of hopes.
Oil explorer Premier Oil gained after saying it had a "strong six months" with better-than-expected production leading to higher revenues and cash flows. However, it saw a sharp reduction in pre-tax profit in the first half due to impairments. |
| | FTSE 100 - Risers
AstraZeneca (AZN) 4,342.00p +1.33%
Schroders (SDR) 2,356.00p +1.12%
CRH (CRH) 1,385.00p +0.87%
Unilever (ULVR) 2,644.00p +0.80%
Smith & Nephew (SN.) 1,055.00p +0.76%
GlaxoSmithKline (GSK) 1,427.50p +0.71%
Burberry Group (BRBY) 1,459.00p +0.69%
ARM Holdings (ARM) 944.50p +0.69%
Royal Mail (RMG) 448.40p +0.61%
Petrofac Ltd. (PFC) 1,146.00p +0.61%
FTSE 100 - Fallers
Fresnillo (FRES) 957.50p -1.54%
Randgold Resources Ltd. (RRS) 4,938.00p -1.18%
Anglo American (AAL) 1,580.50p -0.85%
Rio Tinto (RIO) 3,428.50p -0.85%
ITV (ITV) 209.40p -0.76%
Kingfisher (KGF) 309.90p -0.67%
Mondi (MNDI) 997.50p -0.65%
Aberdeen Asset Management (ADN) 434.10p -0.55%
Tesco (TSCO) 245.55p -0.55%
BHP Billiton (BLT) 1,970.00p -0.45%
FTSE 250 - Risers
Daejan Holdings (DJAN) 4,950.00p +3.12%
Domino Printing Sciences (DNO) 648.50p +2.94%
Xaar (XAR) 561.00p +2.56%
Fisher (James) & Sons (FSJ) 1,369.00p +2.47%
Polymetal International (POLY) 538.50p +1.99%
Crest Nicholson Holdings (CRST) 369.00p +1.77%
St. Modwen Properties (SMP) 382.70p +1.73%
CSR (CSR) 569.00p +1.61%
Millennium & Copthorne Hotels (MLC) 591.00p +1.55%
Unite Group (UTG) 430.90p +1.36%
FTSE 250 - Fallers
Ophir Energy (OPHR) 224.10p -2.44%
Thomas Cook Group (TCG) 121.30p -2.18%
Just Retirement Group (JRG) 147.00p -2.07%
ITE Group (ITE) 192.30p -1.38%
Vedanta Resources (VED) 1,005.00p -1.37%
Henderson Group (HGG) 226.80p -1.35%
Petra Diamonds Ltd.(DI) (PDL) 188.20p -1.31%
Phoenix Group Holdings (DI) (PHNX) 706.50p -1.19%
Bank of Georgia Holdings (BGEO) 2,492.00p -1.07% |
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| | UK Event Calendar | | Thursday August 21
INTERIMS
Cloudbuy, Costain Group, London Mining, New World Resources A Shares, Phoenix Group Holdings (DI), Premier Oil, Primary Health Properties, Quindell , Skyepharma, Sportech
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Confidence Indicator (EU) (09:00)
Continuing Claims (US) (13:30)
Existing Home Sales (US) (15:00)
Initial Jobless Claims (US) (13:30)
Leading Indicators (US) (15:00)
Philadelphia Fed Index (US) (15:00)
Q2
New World Resources A Shares
FINALS
Provexis
AGMS
Blue Planet International Financials Investment Trust, Triad Group
UK ECONOMIC ANNOUNCEMENTS
Internet Retail Sales (09:30)
Retail Sales (09:30)
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Slight gains at the start of trading - Weak manufacturing survey data
- IS commanders retreat into Syria
- Slight gains at the start of trading
FTSE-100: 0.16%
Dax-30: 0.10%
Cac-40: 0.26%
FTSE Mibtel 30: 0.64%
Ibex 35: 0.31%
Stoxx 600: 0.16%
The main European equity indices began the session on a slightly mixed note on Thursday following a somewhat more hawkish than expected set of US Federal Reserve minutes overnight and weak Chinese manufacturing sector surveys.
They quickly moved into the blue however ahead of a raft of economic data releases which are expected out throughout the day and another weak reading on global manufacturing, but this time from the Eurozone.
The Eurozone purchasing managers' index (PMI) for the month of August has come in at 50.8 from 51.8 in the month before (consensus: 51.3).
Rob Dobson, senior economist at Markit, highlighted the fact that on the basis of current readings the single currency area's economy is on course to grow by between only 0.3% to 0.4% over the third quarter, which is unlikely to lead to any improvement in the labour market.
Acting as a backdrop, the HSBC/Markit 'flash' Chinese PMI slipped to 50.3 in August from July's 18-month high of 51.7, well below the 51.5 forecast by economists.
Switzerland's trade balance improved to 3.98bn Swiss francs in July, from 1.41bn francs in the month before (consensus: 1.85bn francs).
On the geopolitical front, The Wall Street Journal Europe reported that some ground commanders of the militant group Islamic State had retreated back into Syria.
Operating profits weaker at Ahold
Dutch supermarket giant Ahold saw weaker-than-expected operating profits in the second quarter, with sales coming off in the United States and the Netherlands.
German broadcaster RTL Group slashed its 2014 outlook on Thursday.
From a sector standpoint in the early going the best performance was being seen in the following industrial groups within the DJ Stoxx 600: Construction&Materials (0.73%), Technology (0.52%) and Technology (0.52%).
Other asset classes bounce back
Euro/dollar is bouncing back slightly, edging higher by 0.11% to 1.327.
Front month Brent crude futures are slipping 0.36% to 101.91. |
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| | US Market Report | | US close: Stocks higher despite more hawkish Fed minutes Dow Jones +0.35%
Nasdaq -0.03%
S&P 500 +0.27%
US stocks on average finished in positive territory on Wednesday despite minutes from the Federal Reserve's latest policy meeting showing an interest rate may come sooner than expected, although it is not likely to be until February or March next year.
The Dow Jones Industrial Average and Standard & Poors 500 indices were both firmly in positive territory, while the more tech-focused Nasdaq was slightly below flat.
The release of minutes from the Federal Open Market Committee July meeting showed the governors were becoming increasingly divided over policy, with a growing minority calling for a "relatively prompt" interest rate hike.
In July, the Fed announced it would cut a further $10bn off monthly bond purchases and maintain interest rates at 0.25%, with a 9-1 vote in favour from Philadelphia Fed President Charles Plosser being the only dissenter. 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.
But the minutes showed that some members believe that recent strengthening of the economy, notably on the jobs and inflation fronts, was already "sufficient to call for a relatively prompt move toward reducing policy accommodation" in order to avoid overshooting the committee's unemployment and inflation goals.
"These participants were increasingly uncomfortable with the Committee's forward guidance," the minutes said.
However, most governors agreed more data was needed to move up the schedule of rate hikes after the second quarter growth drop in GDP "increased uncertainty", with several members expecting inflation to move back towards the committee's target "very slowly" and pointing to the high rates of long-term unemployed.
Economist Paul Dales at Capital Economics said the minutes suggestd the Fed has taken "another step closer towards raising interest rates".
He concluded: "Overall, a lot still depends on whether or not wage growth accelerates as the labour market continues to improve. Nonetheless, the minutes provide some support to our view that rates will first rise in March and will then increase by more than widely expected."
In corporate news, Apple declined after reaching a record close on Tuesday evening. The stock finished at $100.53, ahead of the previous closing record set in September 2012, on the back of optimism surrounding the gadget giant's upcoming new products.
Car rental group Hertz shares bombed after the company said it expected to be "well below the low end" of guidance. Shares rallied somewhat when just prior to close, activist investor Carl Icahn said he sought discussions with Hertz management after taking a more than 8% stake in the company.
Home-improvement retailer Lowe's was in the red despite beating analysts' forecasts with its second-quarter profits, as the company cut its revenue guidance for the full year.
Just before the market closed, news filtered through that four McDonald's restaurants had been closed in Russia, with more under investigation, due to "sanitation concerns".
West Texas Intermediate futures rose 0.57% to $93.39 per barrel, according to the ICE.
The 10-year yield climbed two basis points to 2.42%.
S&P 500 - Risers
F5 Networks Inc. (FFIV) $122.57 +5.15%
Mylan Inc. (MYL) $48.59 +3.30%
Jacobs Engineering Group Inc. (JEC) $53.90 +3.14%
Home Depot Inc. (HD) $90.75 +2.86%
Micron Technology Inc. (MU) $33.30 +2.78%
Adt Corp (ADT) $37.22 +2.70%
Southwest Airlines Co. (LUV) $31.57 +2.67%
Sandisk Corp. (SNDK) $97.68 +2.50%
Delta Airlines Inc. (DAL) $40.52 +2.48%
Electronic Arts Inc. (EA) $37.56 +2.41%
S&P 500 - Fallers
Staples Inc. (SPLS) $11.32 -2.58%
Transocean Ltd. (RIG) $38.72 -2.05%
Whole Foods Market Inc. (WFM) $38.19 -1.47%
Red Hat Inc. (RHT) $61.68 -1.38%
Southwestern Energy Co. (SWN) $39.44 -1.33%
Coca-Cola Enterprises Inc. (CCE) $47.69 -1.32%
Ball Corp (BLL) $63.24 -1.30%
Intuitive Surgical Inc. (ISRG) $467.50 -1.20%
Nabors Industries Ltd. (NBR) $25.82 -1.07%
MeadWestvaco Corp. (MWV) $42.44 -1.07%
Dow Jones I.A - Risers
Home Depot Inc. (HD) $90.75 +2.86%
Boeing Co. (BA) $127.35 +1.41%
General Electric Co. (GE) $26.36 +1.19%
United Technologies Corp. (UTX) $109.71 +1.06%
Merck & Co. Inc. (MRK) $59.48 +0.97%
Visa Inc. (V) $216.20 +0.56%
Nike Inc. (NKE) $78.91 +0.51%
Intel Corp. (INTC) $34.50 +0.47%
American Express Co. (AXP) $88.49 +0.42%
Caterpillar Inc. (CAT) $107.70 +0.37%
Dow Jones I.A - Fallers
Microsoft Corp. (MSFT) $44.95 -0.84%
Walt Disney Co. (DIS) $89.84 -0.28%
McDonald's Corp. (MCD) $94.19 -0.28%
Pfizer Inc. (PFE) $28.89 -0.17%
Chevron Corp. (CVX) $127.49 -0.11%
E.I. du Pont de Nemours and Co. (DD) $66.22 -0.11%
Unitedhealth Group Inc. (UNH) $83.43 -0.05%
Coca-Cola Co. (KO) $41.25 -0.02%
Nasdaq 100 - Risers
F5 Networks Inc. (FFIV) $122.57 +5.15%
Mylan Inc. (MYL) $48.59 +3.30%
Micron Technology Inc. (MU) $33.30 +2.78%
Sandisk Corp. (SNDK) $97.68 +2.50%
Keurig Green Mountain Inc (GMCR) $117.58 +2.16%
Bed Bath & Beyond Inc. (BBBY) $63.72 +2.13%
Broadcom Corp. (BRCM) $38.91 +2.05%
Catamaran Corp (CTRX) $47.28 +2.01%
Garmin Ltd. (GRMN) $57.07 +1.91%
QUALCOMM Inc. (QCOM) $76.44 +1.74%
Nasdaq 100 - Fallers
Staples Inc. (SPLS) $11.32 -2.58%
Whole Foods Market Inc. (WFM) $38.19 -1.47%
Intuitive Surgical Inc. (ISRG) $467.50 -1.20%
Dish Network Corp. (DISH) $64.31 -1.12%
Charter Communications Inc. (CHTR) $155.77 -1.04%
Mattel Inc. (MAT) $34.90 -0.96%
Applied Materials Inc. (AMAT) $21.90 -0.90%
Alexion Pharmaceuticals Inc. (ALXN) $168.74 -0.88%
Yahoo! Inc. (YHOO) $37.50 -0.87%
Microsoft Corp. (MSFT) $44.95 -0.84% |
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| | Newspaper Round Up | | Thursday newspaper round-up: Islamic State, North Sea oil, BoE... President Barack Obama has branded Islamic State (IS) fighters a "cancer" in the Middle East, and said the US will not be swayed from carrying out airstrikes against the group after it beheaded an American journalist. In his strongest condemnation of the Sunni militants formerly known as Isis, Mr Obama said the group believes they are at war with the West, but are in fact terrorising their own neighbours. - The Independent
Sir Ian Wood, the most influential figure in the Scottish oil industry, has accused Alex Salmond's government of exaggerating North Sea oil reserves by up to 60%. Wood, the billionaire founder of the oil services firm Wood Group, said the first minister's administration had also overestimated North Sea oil income over the next five years by up to £2bn a year or £370 per person, raising serious questions about Salmond's public spending plans. - The Guardian
MPs have issued a veiled rebuke to the governor of the Bank of England after it failed to disclose a sensitive shareholding of Richard Sharp, one of Mark Carney's former Goldman Sachs colleagues, who now sits on the Bank's powerful Financial Policy Committee. An embarrassed Mr Carney was also forced to reveal that he was proposing to ban FPC members from making political donations after revelations that Mr Sharp had been a major donor to the Conservatives in the past, giving £402,000 in the nine years to 2010. - The Times
Britain is exporting cars at a record rate amid strong international demand for luxury brands. The UK has exported more than 5m cars since 2010, marking the best start to a decade, said the Society of Motor Manufacturers and Traders (SMMT). - The Guardian
An array of Nobel economists have launched a blistering attack on the eurozone's economic strategy, warning that contractionary policies risk years of depression and a fresh eruption of the debt crisis. "Historians are going to tar and feather Europe's central bankers," said Professor Peter Diamond, the world's leading expert on unemployment. "Young people in Spain and Italy who hit the job market in this recession are going to be affected for decades. It is a terrible outcome, and it is surprising how little uproar there has been over policies that are so stunningly destructive," he told The Telegraph at a gathering of Nobel laureates at Lake Constance. - The Telegraph
Glencore signalled that it would join the pack interested in Guinea's Simandou iron ore deposit as it became the first mining group to return cash to shareholders since the industry's era of austerity took hold two years ago. [...] The Simandou project in Guinea, which is the world's largest untapped iron ore deposit, was among the ambitious greenfield projects that marked a period of over-exuberant expansion. - The Times
Argentina is attempting to sidestep a US block on payments to its creditors by offering to exchange defaulted debt for new notes issued domestically. [The] government wants to replace Bank of New York Mellon, which, under a US judge's ruling, is holding a $539m payment by Argentina to its creditors, as trustee with state-run Banco Nacion. Argentina would then be allowed to pay the $539m to bondholders, a majority of whom must agree to the plan. - The Telegraph
Stagnant pay and pessimism about the prospect of future wage increases is still blighting British households, according to a new survey out today. The monthly Household Finance Index from financial data firm Markit edged up marginally to 42.2 from 42.0 in July, indicating that people are still no better off despite the generally improved economic outlook. - The Daily Mail
A £1 billion-plus deal for Glasgow which could create tens of thousands of jobs for Scotland's largest city has been formally signed. The City Deal will fund major infrastructure projects in Glasgow and the surrounding region in a bid to boost the economy for the next 20 years. The area's economy could benefit from a permanent boost worth £2.2 billion a year as a result while 15,000 jobs could be generated while construction work is taking place. - The Scotsman | | |
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