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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: Miners drag UK stocks lower, but Barclays gains London's stock exchange opened more or less flat on Thursday as heavy falls from mining stocks and BT offset gains from Barclays and St James's Place. The FTSE 100 was trading 0.1% lower at 6,449 in early deals.
The subdued start follows a weak performance on Wall Street overnight as investors reacted to the expected removal of stimulus by the Federal Reserve, as it voted to end its quantitative easing programme.
The Fed also opted to keep its interest rates unchanged, vowing to maintain them near zero a "considerable time".
"The description of recent developments was noticeably more upbeat on activity and the labor market, but also somewhat more downbeat on the inflation picture," said analysts at Deutsche Bank. They said that the statement was consistent with its prediction for a rate hike in mid-2015.
A raft of economic data will be in focus on Thursday, including Eurozone confidence figures, US gross domestic product estimates and US jobless claims.
Barclays and St James's Place impress
Barclays unveiled a third-quarter adjusted pre-tax profit well ahead of forecast as it held costs to a five-year quarterly low and made a £670m provision against fines for rigging forex and PPI mis-selling. The bank generated a profit for the third quarter of £1.59bn, up 14% on the year before and well ahead of the £1.1bn consensus prediction.
Wealth manager St James's Place was a high riser after seeing strong inflows in its third quarter, helped by a big increase in demand for new ISA investments. Funds under management reached a record £49.1bn by 30 September, up 17% on the year before.
Mining stocks including Randgold Resources, Fresnillo, Antofagasta and Anglo American were out of favour as metal prices declined on the back of a stronger dollar. Trader Toby Goar from Spreadex explained that after the Fed decision, "the 'cheap' dollars that had flooded the market are now being reduced and hence the dollar has appreciated against most major currencies".
Telecoms titan BT Group was lower despite reporting second-quarter earnings above market forecasts as strong demand for fibre broadband and sports channels led to a decent jump in profits. Operating profits rose 1% to £1.45bn, but sales fell 2% to £4.83bn.
Royal Dutch Shell slipped as investors shrugged off a bigger-than-expected 31% jump in third-quarter earnings to $5.8bn, as the market reacted to the news that chairman Jorma Ollila will step down after nine years.
Transport group National Express rose after saying it is on track to meet its profit expectations for the full year after a 15% increase in third-quarter pre-tax profit.
Also higher was Astrazeneca as its Xigduo XR type 2 diabetes treatment was approved for use in adults by the US Food and Drug Administration. |
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| Market Movers
techMARK 2,738.06 +0.13%
FTSE 100 6,448.74 -0.08%
FTSE 250 15,239.93 +0.04%
FTSE 100 - Risers
St James's Place (STJ) 709.50p +3.12%
Barclays (BARC) 223.90p +1.54%
Legal & General Group (LGEN) 226.90p +0.98%
AstraZeneca (AZN) 4,486.00p +0.95%
International Consolidated Airlines Group SA (CDI) (IAG) 388.00p +0.73%
BAE Systems (BA.) 449.20p +0.69%
Shire Plc (SHP) 4,100.00p +0.61%
HSBC Holdings (HSBA) 631.70p +0.59%
InterContinental Hotels Group (IHG) 2,309.00p +0.57%
Compass Group (CPG) 991.50p +0.51%
FTSE 100 - Fallers
Randgold Resources Ltd. (RRS) 3,920.00p -2.51%
Fresnillo (FRES) 733.50p -2.07%
Anglo American (AAL) 1,326.50p -1.92%
Antofagasta (ANTO) 693.00p -1.56%
Glencore (GLEN) 318.80p -1.51%
BT Group (BT.A) 370.70p -1.28%
Petrofac Ltd. (PFC) 1,033.00p -1.15%
Experian (EXPN) 936.00p -1.11%
Standard Chartered (STAN) 981.10p -1.11%
BG Group (BG.) 1,033.00p -1.10%
FTSE 250 - Risers
Countrywide (CWD) 469.60p +4.19%
National Express Group (NEX) 244.00p +3.74%
Croda International (CRDA) 2,275.00p +3.27%
RPS Group (RPS) 239.50p +2.57%
AL Noor Hospitals Group (ANH) 1,016.00p +2.32%
Pace (PIC) 348.00p +2.17%
Homeserve (HSV) 340.80p +2.01%
Moneysupermarket.com Group (MONY) 195.40p +1.93%
Infinis Energy (INFI) 216.90p +1.78%
IP Group (IPO) 203.40p +1.75%
FTSE 250 - Fallers
Hochschild Mining (HOC) 102.80p -4.55%
Afren (AFR) 89.50p -4.02%
African Barrick Gold (ABG) 208.00p -3.70%
Barratt Developments (BDEV) 402.40p -2.80%
Centamin (DI) (CEY) 55.05p -2.57%
Merlin Entertainments (MERL) 349.60p -2.35%
Vedanta Resources (VED) 820.50p -2.15%
Kazakhmys (KAZ) 222.40p -2.03%
Go-Ahead Group (GOG) 2,451.00p -2.00% |
| | UK Event Calendar | | Thursday 30 October
INTERIMS
BT Group
INTERIM DIVIDEND PAYMENT DATE
Essentra, Partnership Assurance Group , Sprue Aegis, TT Electronics
INTERIM EX-DIVIDEND DATE
Booker Group, Development Securities, Games Workshop Group, Hansa Trust, Hilton Food Group, ITV, Lombard Risk Management, Lookers, M&C Saatchi, Moss Bros Group, ProVen Growth & Income VCT, ProVen VCT, Provident Financial, SQN Asset Finance Income Fund Limited, Tesco
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Business Climate Indicator (EU) (10:00)
Continuing Claims (US) (12:30)
Economic Sentiment Indicator (EU) (10:00)
GDP (Advance) (US) (12:30)
Initial Jobless Claims (US) (12:30)
Unemployment Rate (GER) (08:55)
Q2
BT Group
Q3
Eurasia Drilling Co Ltd GDR (Reg S), First Quantum Minerals Ltd., Millennium & Copthorne Hotels, OJSC Megafon GDR (Reg S), Royal Dutch Shell 'A', Royal Dutch Shell 'B', Samsung Electronics Co Ltd (ATT) GDR (Reg S), Smith & Nephew, X5 Retail Group NV GDR (Reg S)
GMS
AFC Energy
ANNUAL REPORT
Pure Wafer
IMSS
Afren, Aviva, Barclays, Countrywide, Henderson Group, Kazakhmys, RPS Group
DRILLING REPORT
Kazakhmys
EGMS
Datang International Power Generation Co Ltd.
AGMS
Ashmore Group, Clinigen Group, Genesis Emerging Markets Fund Ltd Ptg NPV, MNC Strategic Investments, Pacific Horizon Inv Trust, Redde
FINAL DIVIDEND PAYMENT DATE
Produce Investments
FINAL EX-DIVIDEND DATE
AIREA, Barratt Developments, BlackRock Greater Europe Inv Trust, El Oro Ltd, Go-Ahead Group, NWF Group, Sabien Technology Group |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks little changed as German unemployment falls unexpectedly European stocks were little changed as investors weighed German unemployment data and the Federal Reserve's decision to end its bond buying programme but keep interest rates unchanged. German unemployment fell 22,000 in October, compared with the 4,000 gain predicted by analysts. It followed a 12,000 increase a month earlier. The unemployment rate held at 6.7%, as expected.
Elsewhere in Germany, inflation figures will be released in afternoon trading.
Meanwhile, the market continued to process Wednesday night's announcement by the Federal Open Market Committee to end its monthly asset purchases amid an improvement in the labour market.
The central bank reiterated its pledge to keep interest rates low for a "considerable time".
"The decision to end its third round of quantitative easing came as absolutely no surprise to the markets, despite arguments in recent weeks from certain officials that the final taper could be delayed or the program even increased," said Alpari UK analyst Craig Erlam.
"In reality, to do so would have been pointless and I think these comments were largely made to quell the excessive market volatility we were seeing and stop the panic selling that was making people lose all perspective."
Thursday's attention in the US will now turn to the release of gross domestic product (GDP) and initial jobless claims.
Analysts forecast US GDP rose an annualised 3% in the third quarter, after expanding 4.6% in the previous three months, while jobless claims increased in the week ended 25 October.
Barclays gain on quarterly results
Barclays advanced after reporting a rise in third-quarter pre-tax profit which beat market estimates.
Renault edged higher as Europe's third-largest carmaker posted a rise in quarterly earnings.
Deutsche Lufthansa dropped after reducing its 2015 profit forecast.
Linde AG slumped after the industrial-gases company said it will miss full-year and 2016 profit targets.
The euro fell 0.4% to $1.2581. |
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| | US Market Report | | US close: Markets slide as Fed brings QE to an end US stocks slid back on Wednesday after the Federal Reserve announced its intention to keep interest rates unchanged for the foreseeable future.
The Dow Jones Industrial Average closed 31.44 points down to 16,974.31, while the S&P 500 dropped 2.74 points to 1,982.31 and the Nasdaq closed 16.07 points down to 4,090.55
As widely expected, the Federal Reserve has announced the end of its bond buying programme and decided to keep interest rates unchanged.
The US central bank has maintained its vow to keep interest rates near zero for a "considerable time".
The likelihood of inflation running persistently below 2% has diminished somewhat since early this year, the Fed repeated. In one twist in the wording of its statement, when compared to that issued on 17 September, the Fed admitted that inflation will likely be held down in the near-term as a result of lower energy prices and other factors.
The US economy has been performing well this year after a weak first quarter and economists are forecasting the best nine-month stretch of growth since 2005-2006, with growth expected over 3%.
"On balance, the Fed believes it is getting closer to meeting the full employment side of its mandate, while it is not necessarily convinced it is losing ground in meeting the price stability side of its mandate," Paul Ashworth, chief US economist at Capital Economics, said.
"We would say that was, if anything, a slightly hawkish shift. It's also perhaps telling that it was the dovish Narayana Kocherlakota who dissented at this vote, whereas in previous FOMC meetings this year it is the hawks who dissented."
In corporate news, Facebook shares dropped 6.08% as investors showed concern over the firm's operating costs, even though the social media outfit's quarterly results exceeded estimates on Tuesday.
Electronic Arts rose 3.82% on the heels of its results, while US Steel and Marriott International advanced 5.06% and 2.89% respectively after delivering better-than-expected results and Goodyear shares rose 5.40%.
The tyre-maker reported lower third-quarter financial results as taxes and exchange rate headwinds limited profitability, though it beat analyst expectations and generated a profit in Latin America despite the economic turmoil in the region.
InvenSense plummeted over 20% after the sensor firm fell well short of its targets, while Orbital Sciences dropped 16.79% after one of the company's rockets exploded soon after lift-off on Tuesday.
Alibaba surpassed Wal-Mart in terms of market capitalisation but that did not stop shares from retreating 1.37%, while Twitter slid back 3.88% as a result of analysts' downgrades on Tuesday.
Following the announcement from the Fed, the dollar advanced steadily against the pound, the euro and the yen, while gold futures slipped marginally to reach $1,211.90.
West Texas intermediate and Brent crude futures both took rose over a percentage point, closing at just over $82 and just over $87 a barrel respectively.
The yield on the 10-Year US Treasury note rose three basis point to 2.32%, while the yield on the 30-year Treasury bond dropped one basis point to 3.06 and the yield on the five-year Treasuries climbed eight basis points to 1.59.
S&P 500 - Risers
Newfield Exploration Co (NFX) $32.58 +10.89%
Goodyear Tire & Rubber Co. (GT) $23.03 +5.11%
United States Steel Corp. (X) $40.08 +5.06%
Total System Services Inc. (TSS) $32.52 +4.47%
Electronic Arts Inc. (EA) $38.91 +3.82%
Dentsply International Inc. (XRAY) $49.32 +3.66%
Aetna Inc. (AET) $79.76 +3.28%
Williams Companies Inc. (WMB) $55.76 +3.18%
Western Digital Corp. (WDC) $95.80 +2.92%
Ameriprise Financial Inc. (AMP) $123.76 +2.88%
S&P 500 - Fallers
Owens-Illinois Inc. (OI) $23.54 -9.39%
Facebook Inc. (FB) $75.86 -6.08%
Garmin Ltd. (GRMN) $53.96 -5.66%
Allegheny Technologies Inc. (ATI) $31.39 -5.42%
Newmont Mining Corp. (NEM) $20.80 -4.81%
Vertex Pharmaceuticals Inc. (VRTX) $110.04 -3.53%
Weyerhaeuser Co. (WY) $33.08 -3.08%
Eastman Chemical Co. (EMN) $74.53 -2.64%
Regeneron Pharmaceuticals Inc. (REGN) $387.51 -2.61%
F5 Networks Inc. (FFIV) $117.12 -2.60%
Dow Jones I.A - Risers
Pfizer Inc. (PFE) $29.49 +1.38%
Coca-Cola Co. (KO) $40.95 +0.96%
Johnson & Johnson (JNJ) $105.56 +0.73%
Merck & Co. Inc. (MRK) $56.20 +0.63%
Intel Corp. (INTC) $33.92 +0.53%
American Express Co. (AXP) $88.35 +0.39%
Unitedhealth Group Inc. (UNH) $92.92 +0.30%
Microsoft Corp. (MSFT) $46.62 +0.28%
AT&T Inc. (T) $34.40 +0.20%
Cisco Systems Inc. (CSCO) $24.10 +0.15%
Dow Jones I.A - Fallers
E.I. du Pont de Nemours and Co. (DD) $66.80 -1.69%
Caterpillar Inc. (CAT) $100.19 -0.96%
Visa Inc. (V) $214.66 -0.95%
General Electric Co. (GE) $25.66 -0.85%
JP Morgan Chase & Co. (JPM) $59.27 -0.60%
Nike Inc. (NKE) $91.95 -0.54%
Exxon Mobil Corp. (XOM) $94.60 -0.53%
Walt Disney Co. (DIS) $89.53 -0.44%
Boeing Co. (BA) $123.08 -0.43%
United Technologies Corp. (UTX) $105.85 -0.40%
Nasdaq 100 - Risers
Western Digital Corp. (WDC) $95.80 +2.92%
Seagate Technology Plc (STX) $60.21 +1.24%
Monster Beverage Corp (MNST) $98.65 +1.23%
Applied Materials Inc. (AMAT) $21.48 +1.08%
Amgen Inc. (AMGN) $158.89 +1.08%
Linear Technology Corp. (LLTC) $41.46 +1.00%
Automatic Data Processing Inc. (ADP) $77.92 +0.85%
Dish Network Corp. (DISH) $61.95 +0.85%
Keurig Green Mountain Inc (GMCR) $147.87 +0.83%
Avago Technologies Ltd. (AVGO) $84.88 +0.81%
Nasdaq 100 - Fallers
Facebook Inc. (FB) $75.86 -6.08%
Garmin Ltd. (GRMN) $53.96 -5.66%
Vertex Pharmaceuticals Inc. (VRTX) $110.04 -3.53%
Regeneron Pharmaceuticals Inc. (REGN) $387.51 -2.61%
F5 Networks Inc. (FFIV) $117.12 -2.60%
Verisk Analytics Inc. (VRSK) $61.53 -2.55%
Charter Communications Inc. (CHTR) $153.65 -2.38%
Gilead Sciences Inc. (GILD) $110.75 -2.38%
Netflix Inc. (NFLX) $378.10 -2.10% |
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| | Thursday newspaper round-up: Ebola, Fed, RBS | | The Ebola outbreak in west Africa could have reached a turning point, according to the director of the Wellcome Trust, the Guardian reported on Thursday. Dr Jeremy Farrar, the director of the trust, which is funding a series of fast-tracked trials of vaccines and drugs against the virus, said that while the short-term future remained extremely difficult, the response from the international community was cause for cautious optimism. “The progress made is preliminary and uncertain; even if ultimately successful it will not reduce mortality or stop transmission for some time," he said. "We are not close to seeing the beginning of the end of the epidemic but [several] developments offer hope that we may have reached the end of the beginning.” The US Federal Reserve has brought its $4.5trn (£2.8trn) quantitative easing programme to an end, the Daily Telegraph reported. The programme, introduced more than five years ago to steer the US economy through the financial crisis, signalled a drastic change for US monetary policy, hugely swelling the Fed’s balance sheet in a bid to prop up a financial system that was in complete disarray. “The committee judges that there has been a substantial improvement in the outlook for the labour market since the inception of its current asset purchase programme," the Fed said in a statement. People applying for pay-day loans have had a total of more than £1m taken from their bank accounts by “middlemen” during the last few months, the Financial Times reported. Royal Bank of Scotland has warned that over 16,000 of its customers and at its subsidiary NatWest have seen money withdrawn from their accounts by brokers offering payday loans since July 2014. "We’ve seen large numbers of customers incurring charges they don’t expect when using a payday loan broker since July this year," said Terry Lawson, head of fraud and chargebacks at RBS and NatWest. “We are reaching out to customers to warn them of these fees and taking steps to block the transactions altogether, but these are sophisticated organisations." The number of households in the UK which moved from having no adults in work to having at least one employed dropped by 1.4% in the second quarter when compared with the previous year, to reach 271,000. That marks the largest drop since records began 18 years ago and constitutes the fourth consecutive year in which they have fallen, The Guardian writes. Rising property prices and increased job security are expected to yield an unexpected dividend for retailers this Christmas, according to consulting group Verdict. It also means that shoppers should ready themselves to face packed pavements this holiday season. The total amount of spending is forecast to rise 2.6% to £90.7bn. Commenting on the figures, Verdict analyst Patrick O’Brien said: “It’s not a spectacular picture but it’s a positive one,” The Times reports. Over the year to September only 0.22% of adults in Britain became insolvent, the least since 2006. Bankruptcies thus dropped to a 15-year low and were off by 19% in the third quarter. That is the lowest rate since before the financial crisis, according to the Insolvency Service. The main reason for that decrease are the continued low interest rates, writes The Times. | | |
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