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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: FTSE tracks gains in US - Jackson hole comments drive gains
- S&P 500 surpasses 2,000
- Bunzl, WPP gain
techMARK 2,828.25 +0.18%
FTSE 100 6,800.64 +0.37%
FTSE 250 15,924.69 +0.27%
London's blue chips delivered decent gains on Tuesday morning as they followed in the steps of US stocks, which on Monday night were driven higher by comments made at the Jackson Hole symposium of central bankers last Friday.
The FTSE 100 had climbed 21.50 points higher to 4,439.50 in the first hour of trade.
Monday's US session saw the S&P 500 at one point edge past the psychologically significant 2,000 point mark for the first time ever following what was seen by some as a somewhat hawkish speech from Janet Yellen.
Speaking to her audience, the Fed chair said that if unemployment continued to decrease more quickly than expected then the central bank might have to raise rates sooner than is currently priced into financial markets.
"While the focus was on a less dovish than expected speech from Janet Yellen, which helped to push the US dollar higher, it was the President of the European Central Bank, Mario Draghi who stole the limelight and the headlines with a speech that appeared to hint at the prospect of some form of quantitative easing in the coming months," Michael Hewson, chief market analyst at CMC Markets UK, said.
Draghi's speech indicated he had concerns about expectations for inflation and said flexibility was needed in fiscal policy.
Meanwhile, Monday night also saw the televised debate between Alex Salmond and Alistair Darling over Scottish independence.
In the 90-minute clash, held at Glasgow's Kelvingrove Museum and Art Gallery, the two campaign leaders argued a number of topics, including the pound, welfare reform, North Sea oil and the NHS.
Overall, First Minister Salmond was generally agreed to have won the debate.
UK service firms endure slowest growth in a year
The UK services industry slumped to its slowest growth in a year in the last three months, according to a survey out on Tuesday.
Business volumes in the three months to August rose at their weakest rate since the same month in August 2013, the latest Services Sector Survey from the Confederation of British Industry (CBI) showed.
About 43% of firms said volumes were up compared with three months ago, and 17% said they were down, giving a balance of 25%.
Bunzl, WPP lead upside
Strong performances in emerging and Western markets have helped packaging and cleaning supplies group Bunzl to lift underlying half-year profits and its dividend, sending shares firmly higher early on. Bunzl said pre-tax profit in the six months to 30 June increased by 14% to £176.6m at constant exchange rates, although the rise was 5% at actual rates. Revenue also took a hit from currency volatility, rising 7% to £2.9bn at constant rates but falling 1% in actual terms.
Media and public relations conglomerate WPP was hot on its heels after it posted interim results slightly ahead of expectations, although it continued to take a hit from the strong pound. Pre-tax profit was £491m, up 15% compared to £427m in the same period in 2013. Revenue came in at £5.469bn, up 2.7% from £5.327bn a year earlier, while reported diluted earnings per share climbed 25.6% from 21.5p to 27.0p year-on-year.
British Land has let a further 36,000 square foot (sq ft) at Wheatley Retail Park in Doncaster after Next and Marks & Spencer Simply Food agreed terms for two new units. Next is to upsize to a 23,518 sq ft with a full cover mezzanine floor, on a 15-year lease, whilst Marks & Spencer Simply Food will open its first store at the park, taking a 12,502 sq ft unit.
Bus and rail operator Stagecoach reported higher revenue across its businesses, particularly its UK bus networks, and said it was on track to hit annual targets despite facing "a number of challenges" in increasing profit. Stagecoach said its UK regional buses boosted revenue by 4% in the 12 weeks to 20 July, although like-for-like passenger volumes rose by just 0.9%.
Oil and gas explorer Petrofac saw revenues decline to $2.5bn over the six months ended on 30 June. Operating profits on an EBITDA basis were off by 16% to $340m. Engineering, construction, operations and maintenance (ECOM) order intake stood at $7.2bn for the first half, raising the backlog 35% to $20.3bn, "giving very good revenue visibility for the rest of the year", the company said.
Meanwhile, from Tuesday, drug-maker Pfizer will be eligable to make one further private offer for Astrazeneca, prompting the latter's share price to rise around 0.5% in the first hour of trade. |
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| FTSE 100 - Risers
RSA Insurance Group (RSA) 447.90p +2.47%
Associated British Foods (ABF) 2,867.00p +1.96%
WPP (WPP) 1,249.00p +1.79%
Bunzl (BNZL) 1,658.00p +1.72%
Weir Group (WEIR) 2,648.00p +1.57%
Royal Mail (RMG) 456.40p +1.47%
CRH (CRH) 1,399.00p +1.45%
Barclays (BARC) 225.55p +1.23%
Kingfisher (KGF) 308.20p +1.18%
Randgold Resources Ltd. (RRS) 4,960.00p +1.18%
FTSE 100 - Fallers
Antofagasta (ANTO) 789.00p -2.35%
Petrofac Ltd. (PFC) 1,108.00p -1.60%
Rio Tinto (RIO) 3,360.50p -0.94%
ITV (ITV) 207.40p -0.81%
Prudential (PRU) 1,441.00p -0.52%
BP (BP.) 483.45p -0.34%
Shire Plc (SHP) 4,860.00p -0.27%
Meggitt (MGGT) 465.50p -0.26%
ARM Holdings (ARM) 949.50p -0.26%
Legal & General Group (LGEN) 240.70p -0.21%
FTSE 250 - Risers
AL Noor Hospitals Group (ANH) 1,128.00p +2.55%
Cairn Energy (CNE) 187.10p +2.52%
COLT Group SA (COLT) 147.60p +2.50%
Evraz (EVR) 111.10p +2.40%
Bellway (BWY) 1,645.00p +2.30%
RPS Group (RPS) 280.50p +2.22%
Kazakhmys (KAZ) 301.90p +2.03%
Fidelity European Values (FEV) 152.00p +2.01%
Synthomer (SYNT) 237.40p +1.93%
Greene King (GNK) 821.00p +1.92%
FTSE 250 - Fallers
Regus (RGU) 187.20p -4.73%
Telecity Group (TCY) 730.50p -4.07%
Exova Group (EXO) 210.00p -3.67%
Centamin (DI) (CEY) 62.30p -2.27%
Euromoney Institutional Investor (ERM) 1,072.00p -1.65%
Entertainment One Limited (ETO) 345.60p -1.40%
Polymetal International (POLY) 509.50p -1.36%
Millennium & Copthorne Hotels (MLC) 586.50p -1.18%
Spirent Communications (SPT) 102.10p -1.07% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks start the day with slight losses - Ukrainian and Russian Presidents due to meet
- Periphery bond yields continue slipping
- Euro bounces slightly
FTSE 100: 0.38%
Dax-30: -0.41%
Cac-40: -0.06%
FTSE Mibtel: -0.37%
Ibex 35: 0.06%
Stoxx 600: 0.01%
The main European equity benchmarks have started the morning on a mixed footing following yesterday's Draghi-induced bounce.
Speaking at the Jackson Hole symposium of central banks, on Friday evening, Draghi in effect left the door further open to the possibility of quantitative easing and argued in favour of increased fiscal spending to cushion the impact of structural reforms.
Eurozone periphery bond yields were again heading lower in early trading, with the yield on Spanish 10-year bonds off by four basis points at 2.22% - a euro-era record.
Ukrainian President Petro Poroshenko and his Russian counterpart Vladimir Putin will meet today at a conference in the Belarussian capital of Minsk.
First half profits rise at Accor
The largest European hotels group, Accor, saw first half operating profits rise by 17.6% thanks to improved demand from all regions save France.
BNP Paribas has offered to purchase rival BGZ from Rabobank at 80.47 zlotys.
From a sector standpoint the biggest gains on the DJ Stoxx 600 are being registered by the following industrial groups: Personal and household goods (0.38%), Banks (0.32%) and Automobiles&Parts (0.27%).
Other asset classes move slightly higher
The euro/dollar edged higher by 0.08% to the 1.32 mark.
Front month Brent crude futures advanced by 0.049% to $102.69 per barrel on the ICE. |
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| | US Market Report | | US close: S&P 500 unfazed by Yellen's speech - Stocks gain after Jackson Hole
- M&A newsflow picks up
- Morgan Stanley shares reach post 2009 high
Dow Jones Industrials: 0.45%
Nasdaq Composite: 0.41%
S&P 500: 0.48%
The main US equity benchmarks continued to grind higher on Monday, buoyed by a spate of merger and acquisitions-related news-flow, with the S&P 500 at one point edging past the psychological 2,000 point mark for the first time ever.
The above followed on the heels of what was seen by some as a somewhat hawkish speech from Janet Yellen at the Jackson Hole symposium of central bankers. Speaking to her audience the Fed chair said that if unemployment continued to decrease more quickly than expected then the central bank might have to raise rates sooner than is currently priced into financial markets.
Nevertheless, reactions to her speech were quite varied.
Following her remarks financial derivatives markets were pricing in a 56% probability that the Fed would move on rates by July of 2015, versus 48% a week before, according to Bloomberg data on futures' prices.
Geopolitical waters still unsettled
After the close of trading The Wall Street Journal Europe reported that the Pentagon is preparing to send surveillance aircraft, including drones, into Syria to gather intelligence on possible Islamist State targets.
In parallel, militants captured Libya's Tripoli airport, underlining the still hazardous security situation in the North African country where oil exports have recently been staging a moderate recovery.
Ukrainian President Petro Poroshenko is due to meet his Russian counterpart on Tuesday. Tensions between the two countries were reported to have eased a tad after a Russian aid convoy which entered the country on left during the weekend.
Housing market stabilising rather than improving
As regards the hard data published on Monday, US new home sales dropped 2.4% month-on-month in July to reach an annualised rate of 412,000 (Consensus: 425,000).
Estimates to readings for the prior two months were revised up by a total of 33,000 units however.
"Altogether, this is a softer report than expected and suggests housing demand has stabilized in recent quarters, as opposed to improving," Barclays Research economist Michael Gapen wrote in a report.
The three month moving average for the Chicago Fed's national activity index improved to a reading of 0.25 in July from 0.16 for the previous three months.
Transaction flow picks up
Stock in Burger King rocketed after announcing that it is in talks to purchase Canadian rival Tim Horton in a transaction that could see the creation of the world's third largest fast food chain.
In other transactions, Swiss drug giant Roche unveiled an $8.3bn bid for US outfit InterMune, sending stock in the latter surging ahead by 35%. The Basel-based ompany is seeking to gain control of InterMune's new treatment for diopathic pulmonary fibrosis.
Financials did well during the session, with shares of Morgan Stanley reaching a post-financial crisis high.
Also after the close of trading, Amazon.com confirmed earlier reports that it is to acquire Twitch, a live-streaming service for videogame players, for over a $1bn.
From a sector standpoint the best performing industrial groups were: biotechnology (2.05%), exploration and production (1.51%) and investment services (1.49%).
Small moves in other asset classes
Front month West Texas crude futures ended the day 0.07% higher to stand at $93.42 per barrel on the NYMEX.
US 10-year Treasury yields were two basis points lower at 2.38%.
S&P 500 - Risers
Newfield Exploration Co (NFX) $43.86 +3.44%
Gilead Sciences Inc. (GILD) $107.45 +3.36%
Cimarex Energy Co (XEC) $139.14 +3.11%
Chesapeake Energy Corp. (CHK) $26.74 +2.77%
Range Resources Corp. (RRC) $78.85 +2.72%
United States Steel Corp. (X) $38.80 +2.62%
Best Buy Co. Inc. (BBY) $31.99 +2.53%
Alexion Pharmaceuticals Inc. (ALXN) $170.56 +2.46%
Morgan Stanley (MS) $34.20 +2.18%
Blackrock Inc. (BLK) $332.96 +2.13%
S&P 500 - Fallers
Peabody Energy Corp. (BTU) $15.73 -2.36%
Cablevision Systems Corp. (CVC) $17.92 -2.29%
CONSOL Energy Inc. (CNX) $39.39 -1.97%
Discovery Communications Inc. Class A (DISCA) $43.91 -1.90%
Newmont Mining Corp. (NEM) $25.98 -1.55%
Xilinx Inc. (XLNX) $41.80 -1.39%
Texas Instruments Inc (TXN) $47.37 -1.35%
Allergan Inc. (AGN) $163.41 -1.30%
Transocean Ltd. (RIG) $37.48 -1.29%
Juniper Networks Inc. (JNPR) $23.75 -1.25%
Dow Jones I.A - Risers
JP Morgan Chase & Co. (JPM) $59.34 +1.45%
Goldman Sachs Group Inc. (GS) $177.87 +1.37%
Verizon Communications Inc. (VZ) $49.15 +1.05%
Merck & Co. Inc. (MRK) $59.73 +0.95%
Nike Inc. (NKE) $80.01 +0.91%
American Express Co. (AXP) $89.59 +0.80%
Coca-Cola Co. (KO) $41.41 +0.71%
Boeing Co. (BA) $128.33 +0.68%
Caterpillar Inc. (CAT) $107.97 +0.62%
Travelers Company Inc. (TRV) $94.29 +0.58%
Dow Jones I.A - Fallers
Cisco Systems Inc. (CSCO) $24.70 -0.76%
Intel Corp. (INTC) $34.81 -0.37%
Walt Disney Co. (DIS) $90.38 -0.12%
Wal-Mart Stores Inc. (WMT) $75.69 -0.05%
Pfizer Inc. (PFE) $28.91 -0.03%
Visa Inc. (V) $216.02 -0.03%
McDonald's Corp. (MCD) $94.44 -0.01%
Nasdaq 100 - Risers
Illumina Inc. (ILMN) $177.91 +3.44%
Gilead Sciences Inc. (GILD) $107.45 +3.36%
Alexion Pharmaceuticals Inc. (ALXN) $170.56 +2.46%
Tesla Motors Inc (TSLA) $262.55 +2.25%
Regeneron Pharmaceuticals Inc. (REGN) $347.91 +2.09%
Celgene Corp. (CELG) $93.40 +1.94%
TripAdvisor Inc. (TRIP) $103.79 +1.76%
Vertex Pharmaceuticals Inc. (VRTX) $91.76 +1.71%
Amgen Inc. (AMGN) $134.79 +1.71%
Kraft Foods Group, Inc. (KRFT) $58.09 +1.52%
Nasdaq 100 - Fallers
Discovery Communications Inc. Class A (DISCA) $43.91 -1.90%
Dish Network Corp. (DISH) $64.42 -1.42%
Xilinx Inc. (XLNX) $41.80 -1.39%
Texas Instruments Inc (TXN) $47.37 -1.35%
Analog Devices Inc. (ADI) $51.93 -1.16%
Cognizant Technology Solutions Corp. (CTSH) $45.63 -0.83%
Liberty Global plc Series A (LBTYA) $42.76 -0.81%
Intuit Inc. (INTU) $82.90 -0.80%
Yahoo! Inc. (YHOO) $37.71 -0.79%
Dollar Tree Inc (DLTR) $53.86 -0.77% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: Barclays, Falling wages, Scotland Property investors are gearing up for court showdowns with Britain's banks over claims that they were mis-sold billions of pounds in complex interest rate derivatives. Barclays, Lloyds Banking Group and Royal Bank of Scotland are facing legal claims from property groups totalling more than £1.5bn, based on research conducted by The Times of the biggest upcoming potential lawsuits. - The Times
Workers in the UK are cheaper to hire than their counterparts in Italy or Spain as stagnant or falling wages continue to erode British pay packets, official figures reveal. UK workers have endured years of poor wage growth, which is starting to turn the UK into a 'low-cost country' among many of its European neighbours. The average cost of employing someone in the UK remained unchanged at €20.90 an hour last year - significantly below the EU average of €23.70. - Daily Mail
The prospect of political upheaval over the next year will hinder economic growth, according to Deloitte. The accountancy firm said that fallout from the Scottish independence referendum next month, the build-up to the general election in the spring and a potential referendum on European Union membership would put a dampener on the economy at the start of 2015. - The Times
An independent Scotland should walk away from its share of the UK's national debt if Westminster continues to refuse a sterling union, one of the Yes campaign's leading economic gurus has advised. "Britain inherits the debt," said Sir James Mirrlees, a Nobel Prize-winning economist and a prestigious figure on Scotland's Council of Economic Advisers. - The Daily Telegraph
The Labour party believes the rules covering fracking - or hydraulic fracturing - for gas are not tight enough and will attempt to strengthen regulation of the controversial drilling method by tabling a series of amendments to the infrastructure bill in the House of Lords on Tuesday. The Department of Energy and Climate Change (Decc) says there are adequate safeguards covering drilling for shale gas under existing rules or voluntary agreements. - The Guardian
Seventeen years after he led a £236m buyout of Gala Bingo from the old Bass brewing empire, John Kelly is trying to do it again. The gaming industry veteran is understood to have teamed up with Park Square Capital, an investment firm, to launch a bid to buy back Britain's biggest bingo club chain for as much as £300m. - The Times | | |
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