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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 close: Ebola and economic woes hit stocks London shares were on their sickbed on Tuesday as investors fretted about the Ebola virus and disappointing economic data, although takeover activity buoyed miners.
The FTSE 100 Index closed 68.07 points adrift at 6495.58 as a fresh case of Ebola in Spain hit shares in airlines and travel companies.
British Airways and Iberia owner International Airlines Group flew 25.7p lower to 345.6p, EasyJet descended 78p to 1389p, cruise operator Carnival sank 167p to 2328p and TUI Travel was off 15.3p at 382p. Investors also booked out of Intercontinental Hotels by 85p to 2244p.
There was downbeat economic news on both sides of the Channel as a report predicted that UK economic growth slowed to 0.7% in the third quarter from 0.8% in the previous three months. Official data also showed flat industrial production in the UK on the month in August, but rising 2.5% year-on-year.
The Dax fell in Frankfurt as German industrial production racked up its biggest monthly drop since 2009, declining 4% against expectations of a lesser fall of -1.5%.
Back in London, mining shares got a boost from news that Rio Tinto had rebuffed a takeover bid from rival Glencore in August. Rio's shares closed 23.5p ahead at 3020.5p and Anglo American climbed 27p to 1375p, but Glencore fell 8.3p to 331.05p.
Oil service groups slipped as Liberum Capital said it feared that a fresh cost-cutting drive by oil companies could cause a prolonged slowdown in demand for the services they supply.
The broker kept its 'sell' rating on Amec, whose shares leaked 16p to 1065p, and reduced Hunting, Technip and Wood Group to 'sell'. Hunting dropped 41p to 835p, Technip's shares fell €0.96 to €62.20 in Paris and Wood's stock reversed 21p to 697.5p back in London. Other players in the sector also had a bad day, with Weir Group falling 75p to 2293p and Petrofac backtracking 20.5p to 962p.
Packaging and distribution companies were also on the slide with Mondi dropping 33p to 973p, Bunzl weakening 31p to 1578p and Rexam declining 5.7p to 476.7p. |
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| | Market Movers
techMARK 2,747.45 -1.63%
FTSE 100 6,495.58 -1.04%
FTSE 250 15,099.22 -1.16% FTSE 100 - Risers
Tesco (TSCO) 182.60p +3.31%
Anglo American (AAL) 1,375.00p +2.00%
Royal Mail (RMG) 395.60p +0.89%
Rio Tinto (RIO) 3,020.50p +0.78%
Aberdeen Asset Management (ADN) 395.20p +0.56%
Coca-Cola HBC AG (CDI) (CCH) 1,330.00p +0.23%
Standard Chartered (STAN) 1,129.50p +0.04%
FTSE 100 - Fallers
International Consolidated Airlines Group SA (CDI) (IAG) 345.60p -6.92%
Carnival (CCL) 2,328.00p -6.69%
easyJet (EZJ) 1,389.00p -5.32%
TUI Travel (TT.) 382.00p -3.85%
InterContinental Hotels Group (IHG) 2,244.00p -3.65%
Ashtead Group (AHT) 977.00p -3.55%
Mondi (MNDI) 973.00p -3.28%
Weir Group (WEIR) 2,293.00p -3.17%
Intertek Group (ITRK) 2,516.00p -2.89%
Whitbread (WTB) 4,029.00p -2.68%
FTSE 250 - Risers
Tullett Prebon (TLPR) 271.60p +4.86%
Evraz (EVR) 118.70p +4.12%
Cineworld Group (CINE) 329.50p +2.90%
Poundland Group (PLND) 320.00p +2.89%
Cairn Energy (CNE) 183.50p +2.00%
NMC Health (NMC) 499.50p +1.94%
Centamin (DI) (CEY) 58.95p +1.90%
Stock Spirits Group (STCK) 305.00p +1.84%
African Barrick Gold (ABG) 205.70p +1.83%
Ophir Energy (OPHR) 222.80p +1.78%
FTSE 250 - Fallers
Spirent Communications (SPT) 77.10p -21.84%
EnQuest (ENQ) 96.60p -6.12%
Thomas Cook Group (TCG) 112.60p -5.38%
Hunting (HTG) 835.00p -4.68%
RPS Group (RPS) 244.00p -4.54%
Mitchells & Butlers (MAB) 352.10p -4.09%
TalkTalk Telecom Group (TALK) 272.00p -4.06%
Enterprise Inns (ETI) 116.70p -4.03%
Big Yellow Group (BYG) 493.00p -3.52%
Balfour Beatty (BBY) 168.40p -3.38%
FTSE TechMARK - Risers
Filtronic (FTC) 20.88p +3.09%
RM (RM.) 150.00p +1.01%
Torotrak (TRK) 16.75p +0.75%
Consort Medical (CSRT) 952.50p +0.53%
Skyepharma (SKP) 317.75p +0.32%
XP Power Ltd. (DI) (XPP) 1,530.00p +0.26%
FTSE TechMARK - Fallers
Anite (AIE) 81.25p -2.69%
NCC Group (NCC) 187.00p -1.97%
Kofax Limited (DI) (KFX) 481.75p -1.53%
Gresham Computing (GHT) 100.50p -1.47%
KCOM Group (KCOM) 92.75p -1.33%
SDL (SDL) 332.00p -1.12%
E2V Technologies (E2V) 157.00p -0.95%
Microgen (MCGN) 122.00p -0.81%
BATM Advanced Communications Ltd. (BVC) 16.00p -0.78% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks drop on IMF global downgrade, German industrial data European stocks finished the session in the red after the International Monetary Fund (IMF) downgraded its global growth forecasts and German industrial production fell more than expected.
The IMF now expects world growth to come in at 3.3% in 2014, down one tenth of a percentage point from its July estimate. In 2015 the organisation predicts growth of 3.8%, down by two tenths of a percentage point from earlier expectations.
The IMF cited the failure of countries to recover strongly from the worst recession of the postwar era.
Separately, industrial output in Germany fell 2.8% year-on-year in August following a 2.7% increase the month before. Analysts had been expected a 0.5% drop.
"August's big drop in industrial production all but confirmed that German industry is back in recession and underlined the need for both the European Central Bank (ECB) and the German government to give the Eurozone's biggest economy much more policy support," Capital Economics said.
Investors are concerned that the ECB's asset-purchase programme might not be enough to address the weak economy and low inflation.
Against this backdrop, German Bundesbank President Jens Weidmann has criticised the ECB's decision to buy private-sector bonds in an interview with The Wall Street Journal.
He also expressed his opposition to purchasing government bonds, signalling his unwillingness to back additional stimulus measures to combat weakness in the Eurozone economy.
Weidmann said European Commission should consider rejecting France's 2015 budget and has rejected calls from the IMF for Germany to cut taxes or boost public spending.
Schroders, Rio Tinto
Schroders declined as Bank of America's Merrill Lynch cut its rating on the London-based company to 'underperform' from a 'buy'.
Rio Tinto advanced on news it rejected in August a merger approach from Glencore and has had no further contact over a potential deal.
Cairn Energy rallied as the Scottish oil explorer said it has discovered oil at its FAN-1 well, offshore Senegal.
The euro fell 0.17% to $1.2633. |
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| | US Market Report | | US open: Markets slide as IMF cuts growth forecast US stocks opened lower on Tuesday, after the International Monetary Fund (IMF) warned of "frothy" stocks amid signs of declining growth in Europe and cut its growth forecast.
Early trading put the S&P 500 on course to decline for the second consecutive day and has so far fallen 2.3% since reaching a record level on 18 September.
The IMF cut its outlook for global growth in 2015 and warned that increasing geopolitical tension and financial market correction could pose a threat to the stability of the markets. The IMF added that a prolonged spell of policy interest rates near zero in advanced economies could lead to "overheating" in some financial markets.
There was negative news from the Eurozone too, with data released on Tuesday showing that German industrial production fell the most since 2009, highlighting the risk of economic stagnation in Europe's largest economy.
In corporate news, Sodastream International fell sharply ahead of the bell, as the soft drinks maker warned of a quarterly-sales decline, while the Container Store sank after the firm announced late on Monday it was cutting its profit and sales view.
Amazon retreat slightly in the wake of news coming from Brussels that the European Commission opened an investigation over the company's tax agreement with Luxembourg, while Agco fell significantly after weaker-than-expected demand forced the firm to cut its profit outlook for the year.
Christopher & Banks shares plummeted after the company said its quarterly sales will fall well below Wall Street's estimate.
The 10-year Treasury note was down four basis points to 2.39, while the 30-year-bond yield fell by a similar margin to 3.09 and the five-year treasury note dropped four basis points to 1.66.
The dollar was in retreat against the pound and the yen but registered a marginal gain against the euro after losing over a percentage against the currency on Monday. |
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| | Broker Tips | | Broker tips: Rio Tinto, Cairn Energy, Spirent, Cyclical stocks Hopes of a renewed Glencore approach for Rio Tinto sent shares in the latter surging on Tuesday, but analysts at broker Liberum reckon that a merger of the two parties won't come to fruition.
Liberum said that the leaking of the news that Glencore was laying the groundwork for a potential bid "could be enough to ensure that the deal won't happen". Liberum has lifted its target for Rio Tinto slightly from 2,712p to 2,800p, but has kept a 'sell' rating as it still suggests downside from current prices.
Oriel Securities has repeated its 'buy' rating for Cairn Energy after the announcement of an oil discovery by the company offshore Senegal on Tuesday.
"Bottom line: Positive," said analysts Dragan Trajkov and Robin Haworth. They said that, assuming a 30% recovery factor and risking the discovery at 50%, this could indicate upside of 12% to the current share price.
Investec has slashed its target for the shares of Spirent Communications from 105p to 80p, saying that a "period of drift is likely" after the telecoms testing group's profit warning of Tuesday.
As such, he said that the timing of the downgrade was unhelpful given that the strategic plan to "revitalise" the business has been well underway for some time. He said that the "credibility of the new strategy and investment plan now comes into question".
Morgan Stanley has advised clients to increase their portfolio exposure to European cyclical stocks, upgrading the "oversold" industrials sector in particular. | | |
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