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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: FTSE ends higher after busy day for company news UK stocks ended the session on a high, helped by gains across the Pond and hopes of stimulus from China following the weekend's data.
The FTSE 100 climbed 44.01 points to end the day at 6,611.25.
"In London, the equity market was drawn to the psychological 6,600 mark as trading volumes are as thin as news flows," IG market analyst David Madden.
"Serco shares were sent to nearly a 10-year low after the outsourcing company issued a profit warning and capital raising plan all in one go. Tesco shares are back on traders' shopping lists as bargain hunting sets in, but £2 could prove to a stumbling block. Virgin Money will be floating on the stock exchange on Friday and our grey market suggests a market capitalisation of £1.35bn."
In a quiet day for macro news, traders were focused on data out from China over the weekend, which showed the country's trade surplus widened more than expected in October from $31bn to $45.41bn, albeit mainly because of slowing import growth.
Meanwhile, the annual rate of Chinese consumer-price index (CPI) inflation held steady at 1.6% last month, while producer-price index (PPI) deflation worsened from -1.8% to -2.2%.
However, analyst Craig Erlam from Alpari UK said the mixed data was a "win-win from the markets perspective".
"With the PPI falling 2.2% on the year, again due to weaker prices in commodity imports, this is both positive for corporate profitability, while the CPI reading is well below the People's Bank of China's 3.5% target, opening the door to further targeted stimulus," he said.
Charles Stanley comments lift Tesco
Supermarket rivals Tesco and Wm Morrison were among the best performers, but Sainsbury was in the red after Cantor Fitzgerald cut its target from 320p to 275p ahead of the results of its strategic review due out this week.
"Sainsbury's is being shunned by traders as the supermarket has suggested Wednesday's update will reveal a drop in first-half profits. Traders are anticipating the dividend to be trimmed," Madden said.
Meanwhile, Charles Stanley lifted Tesco after saying there is potential for the supermarket to stabilise and start to rebuild profitability over the medium to longer-term.
On the second tier, under-pressure business-to-government outsourcing group Serco saw shares sink as the company delivered a profit warning to investors and said it is planning a rights issue after writing down the value of its business by £1.5bn.
Meanwhile, oil explorer Cairn Energy announced a "significant" oil find off the coast of Senegal, with preliminary estimates pointing to commercial viability. The new find was the result of drilling of its new SNE-1 well located approximately 100 kilometres off-shore from the West-African country in the Sangomar block, at a depth of about 3,000 metres.
Plant and marine engineering firm Aveva beat Numis Securities' forecasts with its interim results, though the broker has scaled back its forecasts for the full year. Nevertheless, Numis kept a 'buy' rating and 1,810p target for the stock.
Just Retirement investors appeared to be relieved by its first quarter results, despite a 42% year-on-year slide in total sales. The group, which has suffered since the government announced its pension reforms in the March Budget, reported quarterly individually underwritten annuity sales of £129.3m, a 59% slump compared to the comparative quarter a year earlier.
The situation appeared to be similar for Lonmin, with shares higher despite it saying that its full-year performance was "dominated" by the impact of a five-month strike in South Africa, resulting in a sharp drop in profits as production slumped and costs soared. The company, which is one of the largest primary platinum producers in the world, said platinum sales totalled 441,684 ounces (oz) in the year ended 30 September, compared with the 696,000oz sold the year before. |
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| | Market Movers
techMARK 2,805.04 +0.74%
FTSE 100 6,611.25 +0.67%
FTSE 250 15,596.23 +0.85%
FTSE 100 - Risers
Tesco (TSCO) 192.90p +4.58%
TUI Travel (TT.) 411.90p +3.05%
International Consolidated Airlines Group SA (CDI) (IAG) 413.90p +2.81%
Persimmon (PSN) 1,448.00p +2.69%
RSA Insurance Group (RSA) 456.80p +2.38%
Marks & Spencer Group (MKS) 477.10p +2.34%
Reckitt Benckiser Group (RB.) 5,265.00p +2.13%
St James's Place (STJ) 752.00p +2.10%
Ashtead Group (AHT) 1,064.00p +2.01%
InterContinental Hotels Group (IHG) 2,453.00p +2.00%
FTSE 100 - Fallers
Sainsbury (J) (SBRY) 254.70p -2.64%
Admiral Group (ADM) 1,195.00p -1.65%
CRH (CRH) 1,385.00p -1.14%
Randgold Resources Ltd. (RRS) 4,086.00p -1.11%
Royal Mail (RMG) 458.50p -0.95%
Dixons Carphone (DC.) 401.10p -0.57%
Centrica (CNA) 300.60p -0.53%
Rio Tinto (RIO) 3,024.00p -0.49%
SSE (SSE) 1,562.00p -0.45%
Standard Chartered (STAN) 942.30p -0.40%
FTSE 250 - Risers
Cairn Energy (CNE) 177.00p +12.10%
Ocado Group (OCDO) 331.90p +8.08%
AO World (AO.) 207.00p +7.53%
Aveva Group (AVV) 1,500.00p +7.53%
Just Retirement Group (JRG) 131.50p +4.78%
Lonmin (LMI) 195.00p +4.06%
Workspace Group (WKP) 660.50p +4.02%
Man Group (EMG) 133.80p +3.48%
Taylor Wimpey (TW.) 117.30p +3.44%
Brown (N.) Group (BWNG) 349.30p +3.44%
FTSE 250 - Fallers
Serco Group (SRP) 215.00p -32.20%
JD Sports Fashion (JD.) 449.50p -3.12%
Zoopla Property Group (WI) (ZPLA) 200.50p -3.00%
Ferrexpo (FXPO) 77.90p -2.44%
Fenner (FENR) 309.10p -2.43%
Diploma (DPLM) 703.50p -2.29%
Infinis Energy (INFI) 220.00p -2.27%
Brit (BRIT) 252.70p -2.05%
Rank Group (RNK) 161.00p -1.29%
IP Group (IPO) 195.50p -1.06% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks rally as Eurozone investor confidence rises European stocks edged higher after a report showed Eurozone investor confidence grew unexpectedly in November.
The Sentix index for Eurozone investor sentiment increased to -11.9 this month from -13.7 in October, beating expectations for a reading of -13.8.
The data comes as the European Central Bank (ECB) has been under pressure to implement quantitative easing to address a weak economy and low inflation.
"The euro has piggy-backed on the soft US dollar, and investor confidence in the Eurozone is still close to an 18-month low as the Sentix investor confidence report highlighted this morning, only the prospect of full blown QE could change investor sentiment," said IG.
The ECB on Monday revealed that it has slowed covered bonds purchases as it prepares to expand its asset buying programme to include other securities.
The outstanding amount of covered bonds settled under the ECB's programme rose by €2.62bn last week to €7.41bn. The monetary authority settled €3.07bn in the second week of purchases and €1.70bn in the first week.
In China, producer prices fell 2.2% in October, more than the forecast for a 2% drop, after declining 1.8% a month earlier.
China's consumer price index (CPI) rose by 1.6% in October, as expected by analysts and unchanged from the prior month.
"With the producer price index falling 2.2% on the year, again due to weaker prices in commodity imports, this is both positive for corporate profitability while the CPI reading is well below the People's Bank of China's 3.5% target, opening the door to further targeted stimulus, It's win win from the markets perspective," said Alpari UK analyst Craig Erlam.
Lonmin, Fugro
Lonmin jumped after the platinum producer said it didn't see the need to raise funds this financial year.
Fugro was a high riser after the Dutch deepwater-oilfield surveyor said it plans to continue as an independent company after Boskalis Westminster NV purchased a stake of 14.8%.
Nutreco NV gained after a Dutch investment company increased its bid for the animal-feed maker by 11%, to fend off rival approach by Cargill.
Serco Group slumped after the government-services company lowered its operating profit outlook for 2014.
Kabel Deutschland Holding AG rallied after reporting a rise in second-quarter sales and adjusted earnings.
Carlsberg advanced after the brewer said its markets share improved in the country as it reported third-quarter profit in line with estimates.
The euro fell 0.22% to $1.2428. |
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| | US Market Report | | US open: Markets fluctuate as oil prices rise US stocks fluctuated early on Monday, as oil prices rose amid reports of renewed fighting in Eastern Ukraine.
The Dow Jones and the S&P 500 closed at record highs on Friday, in the wake of a positive reaction the October jobs report.
While fewer non-farm payrolls were added than expected last month, there were large upwards revisions to previous months' data and the jobless rate ticked down to a six-year low of 5.8%.
"After several weeks where the corporate data releases of the US reporting season have driven US equity indices higher, Monday morning's futures market is pointing towards a lull in proceedings," said market analyst Alastair McCaig from IG.
In corporate news, Rackspace Hosting edged slightly lower ahead of its third-quarter results, which are due after close on Monday.
Boeing slid despite announcing it has won an $8.5bn order from Japanese aircraft leasing company SMBC Aviation Capital.
Go Pro shares fell after the wearable video camera maker reported a $800m secondary offer of its shares.
Dendreon plunged over 60% after reports indicated the firm had filed for Chapter 11 bankruptcy.
Dean Foods rose sharply after reporting better-than-expected third-quarter results, while 3D Systems advanced after beating analysts' earnings expectations and Sotheby's gained slightly after reporting that its third-quarter losses narrowed due to lower expenses.
The dollar was in retreat against the pound, the euro and the yen, while gold futures slid. Analysts, however, believe that commodities could move forward in the short-term future.
"In the long run, I still expect a strengthening dollar to continue to weigh on commodity prices, but with the US data not coming until later this week, there's no reason why we can't see some upside in the meantime," said Craig Elam, market analyst for Alpari UK.
The price of both Brent crude and West Texas intermediate rose in the first session of the week, with the former trading at just under $84.50 a barrel, while the latter was being traded at just over $79 a barrel. |
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| | Broker Tips | | Broker tips: Serco, Asos, Genel Energy, Aveva Analysts showed their disappointment with a poorly-received statement from Serco on Monday, as the outsourcing company announced a profit warning, £1.5bn of write-downs, and a proposed a rights issue.
Oriel Securities analysts said the update "provides some colour on the future shape of the group". However, "uncertainties remain aplenty in our view. There are still question marks over forecasts, capital structure and execution". Meanwhile, Investec said: "Today's update underlines the extent of the issues within this business at present."
Even though the online apparel retail market has "substantial structural growth potential", Citigroup has cut its rating for Asos from 'buy' to 'neutral' following recent share-price strength.
The bank has compared Asos with newly-listed rival Boohoo and German peer Zalando, saying that the three retailers have distinct business models. "Asos combines a very good own label offer with a broad third party offering. However, its sourcing does not match boohoo's and its IT and logistics do not match Zalando's. We think it can catch up but recent execution issues will take time to work through."
UBS has upgraded its recommendation for Anglo-Turkish oil explorer Genel Energy from 'neutral' to 'buy', saying that "oil and money [are] both flowing" in the Kurdistan region of Iraq.
The bank said that Genel is Kuridistan's leading resource holder with an estimated 1.6bn barrels (bbl) of oil equivalents and is "enviably positioned as export markets open".
Plant and marine engineering firm Aveva beat Numis Securities' forecasts with its interim results, though the broker has scaled back its forecasts for the full year on the back of challenging end markets. | | |
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