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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: UK stocks drop despite mining gains Strong gains in the UK mining sector weren't enough to keep London's FTSE 100 from slipping into the red on Tuesday morning.
Indices across Europe were tracking a weak finish on Wall Street and a mixed performance on Asian markets overnight.
The FTSE 100 was trading 0.6% lower at 6,526 within the opening hour, despite a decent jump from mining group Rio Tinto on the back of M&A speculation.
Dealer Jonathan Sudaria from Capital Spreads said that the negative start "belies the huge amount of uncertainty in the markets at the moment".
He explained: "With central banks around the world deliberating about monetary policy, economic data getting more cloudy and stock markets flirting with correction territory, traders are none the wiser if current levels are a great buying opportunity or a bear trap."
Germany industrial production drops
Economic news wasn't helping sentiment in early deals after it was revealed that German industrial production dropped by 4% in August, pulling back after a revised 1.6% increase in July. The consensus estimate was for a lesser decline of 1.5%.
The figures followed further weak figures from Germany on Monday which showed that factory orders in August slumped 5.7% after 4.9% growth in July. This was the biggest slump since 2009.
In other economic data on Tuesday, investors will be looking out for UK industrial production, the latest UK economic growth estimates by the NIESR and US consumer credit figures.
Rio Tinto jumps after Glencore approach revealed
Rio Tinto rose 5% after confirming that Glencore had approached the company in July about a "possible combination", though the board had reject the approach as it "was not in the best interests of [...] shareholders". The deal would have created the biggest mining company in the world with a market value estimated to be $160bn.
Rio Tinto was responding to press speculation after Bloomberg earlier said that Glencore was in talks with Rio Tinto's biggest shareholder, Chinalco, to gauge its interest in a potential deal. These discussions had taken place in recent weeks, sources said.
Others in the sector were also on the rise, including Anglo American, Antofagasta, Randgold Resources, BHP Billiton and Centamin. Antofagasta was given a lift by an upgrade to 'neutral' by Nomura.
However, leading the downside were airlines Easyjet and IAG after a strong performance the previous session. Pharmaceutical heavyweights Shire, Astrazeneca and Glaxosmithkline were also providing a drag.
Tesco was making decent gains as the stock continues to recover after its recent slump. The supermarket company, according to reports, has asked another member of its senior management to step down in the wake of an investigation into its accounting practices.
Tesco was also making headlines on reports it has been contacted by TPG, a private equity buyout company, about potentially acquiring Dunnhumby, its data analysis unit.
Defence group BAE Systems was being weighed down by a ratings downgrade by Cantor Fitzgerald to 'hold'.
Oil and gas group Cairn Energy has discovered oil at its FAN-1 exploration well offshore Senegal, causing shares to surge. The discovery "materially upgrades the prospectivity" of the Sangomar Deep Block, the company said.
Lower demand in the US and China has hit telecoms tester Spirent Communications, which warned that revenues and profits in the third and fourth quarters would be lower than previously guided. The stock dropped 17% early on. |
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| | Market Movers
techMARK 2,762.36 -1.10%
FTSE 100 6,526.14 -0.57%
FTSE 250 15,184.15 -0.61%
FTSE 100 - Risers
Rio Tinto (RIO) 3,147.00p +5.00%
Anglo American (AAL) 1,374.00p +1.93%
Tesco (TSCO) 179.65p +1.64%
Antofagasta (ANTO) 717.00p +1.49%
Randgold Resources Ltd. (RRS) 4,206.00p +1.28%
BHP Billiton (BLT) 1,694.50p +1.13%
Fresnillo (FRES) 753.50p +1.07%
Standard Chartered (STAN) 1,139.50p +0.93%
Glencore (GLEN) 341.90p +0.75%
Travis Perkins (TPK) 1,656.00p +0.36%
FTSE 100 - Fallers
Schroders (SDR) 2,275.00p -3.23%
easyJet (EZJ) 1,427.00p -2.73%
International Consolidated Airlines Group SA (CDI) (IAG) 362.30p -2.42%
Carnival (CCL) 2,435.00p -2.40%
WPP (WPP) 1,184.00p -2.15%
InterContinental Hotels Group (IHG) 2,279.00p -2.15%
Shire Plc (SHP) 5,325.00p -1.93%
TUI Travel (TT.) 390.30p -1.76%
Compass Group (CPG) 966.50p -1.68%
Whitbread (WTB) 4,076.00p -1.55%
FTSE 250 - Risers
Cairn Energy (CNE) 197.90p +10.01%
Countrywide (CWD) 478.80p +2.75%
Centamin (DI) (CEY) 59.25p +2.42%
Redefine International (RDI) 52.00p +1.76%
Hochschild Mining (HOC) 122.20p +1.75%
Zoopla Property Group (WI) (ZPLA) 220.30p +1.66%
Euromoney Institutional Investor (ERM) 1,011.00p +1.51%
Ferrexpo (FXPO) 104.30p +1.26%
Kazakhmys (KAZ) 253.30p +1.24%
Vedanta Resources (VED) 966.50p +1.15%
FTSE 250 - Fallers
Spirent Communications (SPT) 81.75p -17.13%
UBM (UBM) 536.00p -2.55%
Hunting (HTG) 856.50p -2.23%
Henderson Group (HGG) 199.70p -2.01%
Fidessa Group (FDSA) 2,267.00p -1.86%
Thomas Cook Group (TCG) 116.80p -1.85%
Telecity Group (TCY) 721.00p -1.84%
Intermediate Capital Group (ICP) 383.90p -1.84%
Bwin.party Digital Entertainment (BPTY) 88.45p -1.78% |
| | UK Event Calendar | | Tuesday 7 October
INTERIMS
Next Fifteen Communications
INTERIM DIVIDEND PAYMENT DATE
British Smaller Companies VCT 2, Capita, Holders Technology
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Credit (US) (20:00)
Industrial Production (GER) (11:00)
DRILLING REPORT
Ferrexpo
EGMS
Matomy Media Group Limited (DI)
AGMS
Top Creation Investments Ltd, ZCCM Investments Holdings 'B' Shares
TRADING ANNOUNCEMENTS
Tricorn Group
UK ECONOMIC ANNOUNCEMENTS
Industrial Production (09:30)
Manufacturing Production (09:30) |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks slide after weak German industrial production European stocks slumped as German industrial production fell more than expected.
Industrial output in Europe's biggest lender dropped 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 ECB and the German government to give the Eurozone's biggest economy much more policy support," Capital Economics said.
The European Central Bank (ECB) has been under mounting pressure to address the weak economy and low inflation. Despite the ECB's latest efforts, some investors feel its recently announced asset-purchase programme may not be enough to boost the recovery.
Full-on quantitative easing has been suggested as a potential solution to turn the euro-area's luck around.
The market will therefore be closely watching a speech by ECB official Klass Knot at 09:00 London time on financial stability in the bloc.
In the UK, the Bank of England will release its credit condition survey. UK industrial and manufacturing production reports are also due in morning trade.
The US session will see the release of the consumer credit report and Federal Reserve officials William Dudley, Narayana Kocherlakota and Richard Porter will speak.
In corporate news, Commerzbank declined after Bankhaus Lampe cut its shares to 'sell' from 'hold'.
Rio Tinto advanced on news it rejected in August a merger approach from Glencore and has had no further contact over a potential deal.
The euro fell 0.07% to $1.2646. |
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| | US Market Report | | US close: Markets slide amid volatility US stocks slid on Monday, as the markets experienced some volatility in the first session of the week.
The Nasdaq finished the session 20.82 down to 4,454.80 points, while the Dow Jones Industrial Average lost 17.72 to 16,991.97 points and the S&P 500 dropped 3.06 to 1,964.84 points.
Markets swung between gains and losses throughout the day, as investors looked to consolidate some of their gains, following the optimism generated by Friday's positive unemployment figures, which provided some much needed boost after a difficult week for the markets.
In corporate news, Micron Technology fell just under 4% after Samsung Electronics said it will build a $15bn chip plant in South Korea, while GT Advanced Technologies plummeted 92% after filing for bankruptcy.
Carefusion soared 23% after Becton, Dickinson & Co. announced it had reached a deal to buy the firm for $12.2bn, while Hewlett-Packard gained 4.74% after revealing it intends to split itself into two separate companies.
Durata Therapeutics soared 74.6% as Actavis announced an agreement to purchase the maker of a skin-infection treatment.
Gold gained ground on Monday, closing above the $1,200 an ounce, following Friday's slide which saw the metal close below the $1,200 threshold for the first time in over 12 months. On Monday, gold for December delivery gained 1.2% and closed to $1,207.30 an ounce, while December silver gained 0.4% to $17.23 an ounce.
Gold's rise was facilitated by a temporary respite in the dollar rally, as the greenback lost over a percentage point against the euro, ceding ground against the pound and the yen too.
West Texas intermediate crude futures recovered after a slow start and finished the day trading just over $90.51 a barrel.
The 10-year Treasury note slid to 2.42, while the 30-year bond yield dropped five basis points to 3.12 and the five-year Treasury note fell by two basis points to 1.70.
S&P 500 - Risers
CareFusion Corp. (CFN) $56.75 +22.92%
Becton, Dickinson & Company (BDX) $124.98 +7.89%
Hewlett-Packard Co. (HPQ) $36.87 +4.74%
Lam Research Corp. (LRCX) $74.84 +2.89%
Transocean Ltd. (RIG) $30.94 +2.62%
Alcoa Inc. (AA) $15.99 +2.50%
Intuitive Surgical Inc. (ISRG) $486.55 +2.39%
Tesoro Corp. (TSO) $62.02 +2.26%
C.R. Bard Inc. (BCR) $149.24 +2.04%
Diamond Offshore Drilling Inc. (DO) $33.67 +2.03%
S&P 500 - Fallers
H&R Block Inc. (HRB) $29.91 -5.53%
Micron Technology Inc. (MU) $32.57 -4.04%
Best Buy Co. Inc. (BBY) $32.20 -3.51%
Kohls Corp. (KSS) $59.59 -3.06%
Windstream Holdings Inc (WIN) $10.61 -3.02%
Pitney Bowes Inc. (PBI) $23.68 -2.87%
Aetna Inc. (AET) $79.17 -2.85%
First Solar Inc. (FSLR) $62.35 -2.73%
Sandisk Corp. (SNDK) $93.08 -2.67%
Vertex Pharmaceuticals Inc. (VRTX) $105.76 -2.61%
Dow Jones I.A - Risers
Coca-Cola Co. (KO) $43.60 +1.40%
Verizon Communications Inc. (VZ) $50.08 +0.74%
Exxon Mobil Corp. (XOM) $94.52 +0.64%
Caterpillar Inc. (CAT) $98.00 +0.63%
Chevron Corp. (CVX) $118.09 +0.38%
AT&T Inc. (T) $35.49 +0.37%
Travelers Company Inc. (TRV) $94.70 +0.25%
Intel Corp. (INTC) $34.11 +0.24%
International Business Machines Corp. (IBM) $189.04 +0.20%
Walt Disney Co. (DIS) $88.56 +0.12%
Dow Jones I.A - Fallers
Cisco Systems Inc. (CSCO) $25.01 -1.19%
Nike Inc. (NKE) $89.22 -1.19%
Unitedhealth Group Inc. (UNH) $85.09 -1.08%
McDonald's Corp. (MCD) $93.84 -1.08%
General Electric Co. (GE) $25.22 -0.71%
E.I. du Pont de Nemours and Co. (DD) $70.16 -0.68%
Merck & Co. Inc. (MRK) $59.58 -0.53%
Goldman Sachs Group Inc. (GS) $187.48 -0.31%
Home Depot Inc. (HD) $93.26 -0.30%
Procter & Gamble Co. (PG) $83.57 -0.26%
Nasdaq 100 - Risers
Liberty Interactive Corp (LINTA) $29.92 +6.36%
Intuitive Surgical Inc. (ISRG) $486.55 +2.39%
Tesla Motors Inc (TSLA) $260.62 +2.12%
Garmin Ltd. (GRMN) $51.24 +1.57%
Mylan Inc. (MYL) $50.98 +1.49%
Vodafone Group Plc ADS (VOD) $32.98 +1.45%
Expedia Inc. (EXPE) $86.56 +1.28%
Yahoo! Inc. (YHOO) $41.52 +1.19%
Netflix Inc. (NFLX) $463.48 +0.86%
Wynn Resorts Ltd. (WYNN) $183.79 +0.83%
Nasdaq 100 - Fallers
Micron Technology Inc. (MU) $32.57 -4.04%
Sandisk Corp. (SNDK) $93.08 -2.67%
Vertex Pharmaceuticals Inc. (VRTX) $105.76 -2.61%
Alexion Pharmaceuticals Inc. (ALXN) $173.66 -2.43%
Altera Corp. (ALTR) $33.65 -1.94%
Priceline Group Inc (PCLN) $1,119.82 -1.90%
Nxp Semiconductors Nv (NXPI) $66.21 -1.72%
eBay Inc. (EBAY) $53.55 -1.63%
Maxim Integrated Products Inc. (MXIM) $29.22 -1.55% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: Amazon, BSkyB, Ebola, Chinese investment: Amazon has come under scrutiny from the European Union (EU) because of an unorthodox deal with Luxembourg, Financial Times reported on Tuesday. According to the report, a tax deal struck between Amazon and the tiny European state allegedly allowed the American firm to reap potentially illegal state subsidies for its European operations over almost ten years. The total number of new cars sold in the UK in 2014 has reached almost two million, as the economy continues to strengthen, theGuardian reported on Tuesday. According to data released by the Society of Motor Manufacturers and Traders (SMMT), almost 430,000 new cars were sold in September, the highest total for the month in over 10 years and a 5.6% increase year-on-year. The number of new cars sold in the UK has increased 18% since March, a promising sign according to SMMT chief executive Mike Hawes. “September’s strong performance underlined the continuing robustness of the UK new car market, particularly in the context of last September’s bumper volumes,” he said. BskyB shareholders have given the green light to the proposed takeover of Sky Italia and Sky Deutschland, the Daily Telegraph reported. The broadcaster's shareholders have “overwhelmingly” expressed themselves in favour of the company's plan to buy Sky Deutschland and Sky Italia from Rupert Murdoch's 21st Century Fox, the broadsheet added. BskyB will pay £7.4bn for the double takeover paving the way to the formation of a pan-European platform called Sky Europe, which the broadcaster say will maximise its growth opportunities outside Britain’s satellite TV market. The first case of an Ebola infection outside of Africa was reported overnight in Spain. That comes amid warnings that the virus has been impacting on economies across Africa despite the original focus having only been in three countries, the Financial Times reports. The model of Chinese outbound investment underwent a transformation during the worst years of the sovereign debt crisis in the Eurozone and is set to continue steadily over the coming decade. Those are the findings of a Financial Times study tracking international investment flows. From a nadir of just €6.1bn in 2010 the stock of Chinese direct investment in the EU rose to nearly €27bn by 2012, figures collated by Deutsche Bank show. That is part and parcel of the country's "going out" policy, set in 1999, as part of which investors and migrants have built up China's strength in new markets. | | |
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