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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 fluctuates at one-month low as markets await Scottish vote UK stocks opened broadly flat on Thursday as investors digested comments from the Federal Reserve and showed caution ahead of the Scottish referendum.
London's FTSE 100 was down 0.06% at 6,777 in early deals, fluctuating at its lowest levels in nearly a month. The index closed the previous session at 6,780.90 - it has not finished below this mark since 22 August.
Wall Street stocks made small gains on Wednesday with the Dow Jones Industrial Average closing at a record high after the Fed maintained its pledge to keep short-term interest rates near zero for a "considerable time" after quantitative easing (QE) ends.
The comments came after the Federal Open Market Committee took another $10bn off of its monthly asset purchase programme to $15bn, leaving it on track to wind up QE next month.
However, while it said it still sees room for improvement in labour market, policymakers lifted their interest rate projections for 2015 and 2016 slightly.
"To be honest, if the Fed's median projection put the Fed funds rate as high as 1.35% by the end of 2015 then it is hard to see how that is consistent with the first rate hike coming much later than next March," said Paul Ashworth from Capital Economics.
Meanwhile, the Scottish vote on separating from the UK began on Thursday morning with the result still too close to call given the recent momentum behind the pro-independence campaign in recent weeks. Polls opened at 07:00 and close at 22:00.
"The outcome is uncertain and should it turn out to be a 'Yes', it could have significant market impact," warned analysts at Danske Bank.
Miners track falls in precious metals
A stronger dollar saw the price of gold and silver fall sharply on Thursday, pushing shares in precious metal producers Fresnillo, Randgold Resources, Polymetal and Centamin lower.
The Fed's increased rate projections were "spurring USD gains which made the safe haven more expensive", said analyst Mike van Dulken from Accendo Markets, as gold dropped to its lowest level since January.
Budget airline Easyjet was in demand after deciding to increase its payout ratio and said it will return 40% of its profits to shareholders from next year. The company also reached a discounted deal with Airbus to exercise existing purchase rights over 27 current-generation A320 aircraft.
Electronic parts group Premier Farnell declined after saying that profits fell 5% in its first half. |
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| | Market Movers
techMARK 2,833.29 +0.17%
FTSE 100 6,777.10 -0.06%
FTSE 250 15,603.41 +0.17%
FTSE 100 - Risers
TUI Travel (TT.) 380.00p +3.57%
easyJet (EZJ) 1,370.00p +2.39%
Travis Perkins (TPK) 1,686.00p +1.87%
Wolseley (WOS) 3,321.00p +1.19%
Royal Bank of Scotland Group (RBS) 358.60p +1.04%
Lloyds Banking Group (LLOY) 75.55p +0.95%
Compass Group (CPG) 988.00p +0.76%
Next (NXT) 6,900.00p +0.66%
IMI (IMI) 1,289.00p +0.62%
Kingfisher (KGF) 313.80p +0.58%
FTSE 100 - Fallers
Fresnillo (FRES) 779.00p -2.38%
Randgold Resources Ltd. (RRS) 4,475.00p -1.56%
Petrofac Ltd. (PFC) 1,027.00p -1.25%
G4S (GFS) 254.60p -1.24%
Severn Trent (SVT) 1,896.00p -1.10%
Tullow Oil (TLW) 674.00p -1.10%
Morrison (Wm) Supermarkets (MRW) 176.10p -1.07%
Unilever (ULVR) 2,591.00p -1.07%
Rio Tinto (RIO) 3,205.00p -1.06%
Centrica (CNA) 316.80p -0.97%
FTSE 250 - Risers
Synthomer (SYNT) 229.40p +5.23%
Booker Group (BOK) 121.10p +4.13%
Evraz (EVR) 134.50p +2.75%
Millennium & Copthorne Hotels (MLC) 579.50p +2.48%
Moneysupermarket.com Group (MONY) 200.10p +2.41%
UBM (UBM) 615.50p +2.33%
Just Retirement Group (JRG) 142.00p +2.31%
Enterprise Inns (ETI) 116.30p +2.02%
Bank of Georgia Holdings (BGEO) 2,478.00p +2.02%
Kier Group (KIE) 1,705.00p +1.85%
FTSE 250 - Fallers
Polymetal International (POLY) 484.00p -3.49%
Afren (AFR) 100.40p -2.43%
Oxford Instruments (OXIG) 1,065.00p -1.93%
Lonmin (LMI) 206.70p -1.81%
IP Group (IPO) 210.10p -1.73%
Stock Spirits Group (STCK) 288.00p -1.71%
Balfour Beatty (BBY) 219.80p -1.70%
Centamin (DI) (CEY) 59.25p -1.41%
Marston's (MARS) 148.20p -1.40%
Supergroup (SGP) 1,173.00p -1.18% |
| | Thursday 18 September
INTERIMS
Card Factory, French Connection Group, Hellenic Carriers Ltd., Premier Farnell, Safestyle UK , Summit Germany Limited
INTERIM DIVIDEND PAYMENT DATE
Anglo American, Rexam
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Building Permits (US) (13:30)
Continuing Claims (US) (13:30)
Housing Starts (US) (13:30)
Initial Jobless Claims (US) (13:30)
Philadelphia Fed Index (US) (15:00)
GMS
Octagonal, Plethora Solutions Holdings
FINALS
Just Retirement Group, Kier Group, Sinclair Is Pharma, Swallowfield, Wilmington Group
IMSS
Merlin Entertainments , Northgate
AGMS
Best of the Best, Diageo, Jaywing, Trifast
TRADING ANNOUNCEMENTS
Booker Group
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Surveys (11:00)
Internet Retail Sales (09:30)
Retail Sales (09:30)
FINAL DIVIDEND PAYMENT DATE
red24
FINAL EX-DIVIDEND DATE
Best of the Best |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks move higher in wake of Fed meeting The main European benchmarks have begun the day with slight gains in the wake of last nights policy decision from the US Federal Reserve.
As expected, the US central bank undertook another $10bn reduction in the size of its asset purchase program on Wednesday evening and reiterated that it will likely maintain the current target range for the Fed funds rate for a considerable period of time after quantitative easing is finally wrapped up in October.
The Dax Xetra is higher by 0.84% in the early going to 9,740.37 and the FTSE Mibtel by 0.29% to 21,172.79.
Nevertheless, the US central bank did modify its Summary of Economic Projections, shifting its median projection for the date of interest rate rises higher on all time horizons.
There is a raft of US data due out later in the day. However, all eyes will undoubtedly be on the result of Scotlands independence referendum, a once in a life-time event for all and a fateful day for Britons, when the continuity of the 307-year old United Kingdom – at least in its current form – will be decided.
On the Stoxx 600 the largest gains can now be seen in the following industrial groups: Chemicals (1.51%), Travel&Leisure (1.05%) and Technology (0.98%).
US Fed President Janet Yellen is due to take to the podium at 13:00.
Front month Brent crude futures are down by 0.436% to $98.54 per barrel on the NYMEX. |
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| | US Market Report | | US close: Stocks in the blue despite shift in Fed´s stance Markets finished the Wednesday session slightly higher after the Federal Reserve reiterated its pledge to “likely” maintain its rates at their current levels following the end of its third program of quantitative easing, in October.
The release of the Federal Open Market Committees (FOMC) – the central banks rate setting organ - policy statement was met with a bout of volatility as traders, or computer algorithms more likely nowadays, quickly scanned the statement issued from Washington DC and investors tuned into Fed chair Janet Yellens press conference.
As traders are wont to say, the initial market reaction is often the wrong one. Indeed, following an initial dip stocks bounced back sharply, albeit to end the day roughly where they had been just before the announcement.
The S&P 500 finished with a gain of three points to 2,002 and the Dow Jones Industrials Average closed up by 25 points at 17,157.
Tellingly however, longer-term US Treasury yields were a tad higher at the closing bell and gold futures off by 1.06% to $1,224 per ounce.
To take note of, the Feds so-called Summary of Economic Projections revealed that the members of the Fed board had shifted their median forecast for interest rate hikes perceptibly higher across all time horizons, Dr.Harm Bandholz from UniCredit Research pointed out.
As well, on this ocassion two members of the FOMC dissented from the wording of the statement, not just one.
For their part, economists at Capital Economics wrote to clients that "To be honest, if the Fed's median projection put the fed funds rate as high as 1.35% by the end of 2015 then it is hard to see how that is consistent with the first rate hike coming much later than next March."
Danske Bank sees the first rise in the target range for the Fed funds rate arriving in April.
DuPont and FedEx gain
Meanwhile, and in the corporate patch, Auxilium Pharmaceuticals soared 45% after news emerged late on Tuesday night that Endo International will complete a takeover worth $28.10 per share.
Shares in DuPont gained after an investor called for a breakup of the company, while FedEx advanced after posting better than expected profit and sales and US Steel gained significantly after announcing major strategic changes.
Rackspace Hosting fell as much as 18% after announcing it won’t be selling itself, while Adobe Systems fell slightly after posting quarterly results on Tuesday.
From a sector standpoint the largest gains were to be seen in the following industrial groups: Iron&Steel (3.58%), Home construction (3.05%) and Delivery services (2.01%).
Consumer prices surprise on the downside
Figures released by the Labor Department on Wednesday showed that the consumer price index declined 0.2%, the first time it had receded since April 2013, surprising analysts who had predicted the index would remain unchanged.
In parallel, according to a report released by the Commerce Department, the current account deficit narrowed down in the second quarter, shrinking 3.5% from $102.1bn to $98.5bn, going against analysts’ forecasts, which had predicted the deficit would grow to $113.4bn.
Crude futures slip |
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| | Newspaper Round Up | | Thursday newspaper round-up: Scottish independence referendum, Bank of England, Federal Reserve Thursday’s independence referendum is Scotland’s “day of destiny”, claims The Scotsman. After two and a half years of campaigning, Scotland has to decide whether it will remain part of the union or whether it’ll become independent and over 4.2m people, the 97% of the potential electorate, are expected to vote between 7am and 10pm.
Most polls have the ‘no’ campaign marginally ahead at 52% to 48%, but the newspaper states the race is too close to call.
An independent Scotland could face “decades of economic decline”, reports The Daily Telegraph, citing the results of a poll conducted among leading institutional investors.
Some 63% of the more than 200 fund managers in Britain surveyed by Capital Spreads believe that Scotland’s economy is likely to be weaker for at least a decade if the country chooses independence, while only 3% believe Scotland would a stronger economy 12 months after secession.
Instead investors believe that, in case of the independence, it would be Britain rather than Scotland to benefit from the split, with 58% of respondent claiming that the UK economy without Scotland would be stronger over the next decade.
The Bank of England (BoE) will have to be on “alert for Northern Rock style deposit flight if ‘yes’ wins,” The Independent reports.
Sir John Gieve, former deputy governor for financial stability at the BoE, said Bank officials must be ready to calm markets is Scotland chooses independence.
“There’s bound to be some uncertainty, some possibility of deposit flight, some further marking down of the pound and the UK generally,” Gieve said.
The Federal Reserve is in no hurry to raise interest as it disclosed details for “gradual” plans to exit stimulus, reports The Guardian.
Six years on since the biggest US bank bailout, the Federal Reserve has committed to keep interest near zero for a “considerable time” which, Fed chair Janet Yellen explained, is not a “calendar concept” but will instead be adjusted to economic conditions.
Yellen also anticipated that unemployment will return to normal levels in 2016 but won’t fall below the normal threshold until 12 months later.
A bug in Apple’s new health and fitness tracking software overshadowed the launch of iPhone’s new iOS8 operating system, reports The Financial Times. | | |
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