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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: Markets gain as ECB money-printing talk cheers traders The London market moved higher on Monday as the prospect of a boost for the European economy helped make up for dismal economic news from Japan.
The FTSE 100 Index gained 17.6 points to 6671.97 after European Central Bank president Mario Draghi hinted that quantitative easing could be on the cards to boost the lacklustre Eurozone economy.
Draghi told the European Parliament that further measures "could include further changes to the size and composition of the Eurosystem balance sheet, if warranted, to achieve price stability over the medium term."
The news lifted traders' spirits following news that Japan's economy shrank by 1.6% year over year in the third quarter whenexpectations were for a 2.1% gain.
Jasper Lawler at CMC Markets said: "The fall in Japan's GDP in the third quarter goes some way to explaining the reason for the Bank of Japan's surprise expansion of its QQE programme last month."
The price of US light crude perked up to nearly $76 a barrel and Brent was hovering just below $78, while gold prices had a go at breaking the $1190 threshold despite the positive impact on the US dollar of Draghi's comments, which prompted traders to pile money back into equities.
In a relatively quiet day for corporate news, defensive stocks were on the march, with water and waste group United Utilities gushing 13p to 886.5p and British American Tobacco wafting 48.5p higher to 3707p.
Miners were on the up on the gold price, with silver producer Fresnillo twinkling 16p to 736.5p and Randgold Resources gleaming 65p to 4319p. Platinum producer Anglo American gained 17.5p to 1372.5p and Glencore strengthened 3.4p to 331.75p.
Investors left Majestic Wine's glass half full with a 4p drop to 362p after the drinks retailer said profits took a hit from investment in a bigger distribution hub.
Ground engineering group Keller lost 54.5p to 820p after reporting difficult European markets and weakness in Australia |
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| | Market Movers
techMARK 2,858.68 +0.17%
FTSE 100 6,671.97 +0.26%
FTSE 250 15,648.63 +0.03% FTSE 100 - Risers
ARM Holdings (ARM) 890.00p +2.42%
Fresnillo (FRES) 736.50p +2.22%
British Sky Broadcasting Group (SKY) 864.00p +1.95%
Vodafone Group (VOD) 229.05p +1.66%
Friends Life Group Limited (FLG) 333.00p +1.59%
Randgold Resources Ltd. (RRS) 4,319.00p +1.53%
United Utilities Group (UU.) 886.50p +1.49%
TUI Travel (TT.) 421.20p +1.47%
Pearson (PSON) 1,228.00p +1.40%
British American Tobacco (BATS) 3,707.00p +1.33%
FTSE 100 - Fallers
Weir Group (WEIR) 2,047.00p -3.76%
Standard Chartered (STAN) 936.30p -2.25%
IMI (IMI) 1,228.00p -2.23%
Sainsbury (J) (SBRY) 265.70p -1.63%
AstraZeneca (AZN) 4,596.50p -1.27%
Tesco (TSCO) 192.70p -1.18%
Tullow Oil (TLW) 458.70p -1.10%
BG Group (BG.) 1,035.50p -1.00%
Capita (CPI) 1,057.00p -0.84%
Aggreko (AGK) 1,581.00p -0.82%
FTSE 250 - Risers
Oxford Instruments (OXIG) 1,196.00p +5.93%
RPS Group (RPS) 240.00p +3.09%
Hunting (HTG) 710.50p +2.97%
Evraz (EVR) 137.80p +2.53%
Entertainment One Limited (ETO) 307.70p +2.46%
Synthomer (SYNT) 201.00p +2.29%
Vedanta Resources (VED) 809.00p +2.21%
Micro Focus International (MCRO) 1,036.00p +2.07%
Bellway (BWY) 1,783.00p +2.06%
PayPoint (PAY) 948.00p +1.94%
FTSE 250 - Fallers
Fenner (FENR) 268.00p -7.04%
Keller Group (KLR) 820.00p -6.23%
Mitie Group (MTO) 276.70p -4.98%
Foxtons Group (FOXT) 153.00p -4.91%
Fisher (James) & Sons (FSJ) 1,098.00p -4.27%
Grafton Group Units (GFTU) 638.50p -2.82%
Rotork (ROR) 2,347.00p -2.25%
EnQuest (ENQ) 65.95p -2.22%
Vesuvius (VSVS) 421.90p -2.20%
Spirent Communications (SPT) 68.45p -2.07%
FTSE TechMARK - Risers
Triad Group (TRD) 18.00p +12.50%
Puricore (PURI) 31.50p +5.00%
Sepura (SEPU) 133.75p +1.33%
Promethean World (PRW) 24.75p +1.02%
Skyepharma (SKP) 335.00p +0.90%
E2V Technologies (E2V) 172.50p +0.88%
Dialight (DIA) 825.00p +0.79%
Vectura Group (VEC) 122.00p +0.62%
Innovation Group (TIG) 26.50p +0.47%
Anite (AIE) 85.00p +0.29%
FTSE TechMARK - Fallers
CML Microsystems (CML) 260.00p -10.34%
XP Power Ltd. (DI) (XPP) 1,400.00p -4.04%
Kofax Limited (DI) (KFX) 395.00p -2.77%
Oxford Biomedica (OXB) 4.30p -2.27%
SDL (SDL) 389.25p -1.21%
Gresham Computing (GHT) 78.00p -0.64%
KCOM Group (KCOM) 90.25p -0.55%
Consort Medical (CSRT) 755.00p -0.53%
Optos (OPTS) 205.00p -0.49% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks gain after ECB's Draghi hints at bond-buying Stocks in the euro-area erased higher gains after European Central Bank (ECB) President Mario Draghi hinted at buying sovereign bonds.
Draghi on Monday said he was willing to do more to stimulate the economy, including the purchase of government bonds if necessary.
His remarks come amid pressure to address the Eurozone's weak economy and dangerously low inflation.
On another positive note for markets, the Eurozone trade surplus widened in September boosted by exports. Eurostat said the unadjusted external trade surplus of the 18 countries sharing the euro rose to €18.5bn in September, from €10.8bn a year and a revised €8.6bn in August.
Stocks had fallen in early morning trade on the back of an unexpected fall in Japanese gross domestic product (GDP) in the third quarter.
Japanese GDP dropped an annualised 1.6% in the third quarter, compared to a fall of 7.3% in the previous quarter, surprising analysts who had expected 2.2% growth.
"Japan's renewed weakness comes at a time when the global economy is already facing several other headwinds, such as the threat of deflation (especially in the Eurozone), together with the pressures being seen in several emerging markets, such as Russia, Brazil and also China," said chief economist Simon Smith at FX Pro.
In the US, a report on industrial production showed a 0.1% drop in October, following a 0.8% increase a month earlier and compared to market estimates of a 0.2% increase. Manufacturing production rose 0.2% in October after a 0.2% gain in September, as expected.
The Empire Manufacturing index rose to 10.16 in November from 6.17 the prior month, less than the 12.00 forecast.
Sonova slides
Sonova Holding AG declined after the maker of hearing aids posted first-half profit that fell short of analysts' estimates.
Weir Group slumped as Exane BNP Paribas lowered shares of the engineering company to 'underperform' from 'outperform'.
Merck KGaA advanced as the German company said it will receive $850m and could receive up to $2bn in regulatory and commercial payments to develop and commercialise a tumour treatment with Pfizer Inc.
The euro fell 0.61% to $1.2449. |
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| | US Market Report | | US open: Stocks fluctuate as retail sales beat forecasts US stocks fluctuated on Friday with the Dow Jones Industrial Average set to extend its all-time highs as data showed that domestic retail sales rose by more than expected in October.
Just before 10:00 in New York, the Dow Jones Industrial Average was 2.98 points down at 17,649.91, while the S&P 500 rose 0.55 points to 2,039.80 and the Nasdaq dropped 0.15 points to 4,213.40.
Sales at US retailers rose a seasonally adjusted 0.3% in October, bouncing back from the first decline in eight months and exceeding analysts' estimates of a 0.2% increase.
Analysts believe that fourth quarter consumption growth could be in the region of 2.5% on an annualised basis.
"This measure includes all the new information that flows into real consumption, which could be around 2.5% annualised in the fourth quarter," said Paul Diggle, economist at Capital Economics.
"This isn't big enough to influence third-quarter GDP growth, though. Overall, October's retail sales numbers bode well for the crucial holiday shopping season."
Meanwhile, import prices declined further in October, largely because of lower petroleum prices. Headline import prices fell 1.3%, less than consensus estimates of -1.5%, while non-petroleum import prices fell 0.1% month-on-month.
Imported inflation for headline import prices declined 1.8% year-on-year and rose 0.1% for core prices compared to the corresponding period in 2013.
In corporate news, Twitter fell slightly after a near-6% drop in its share price on Thursday after Standard & Poor's gave its debt a 'junk' rating. The agency rated the social media group's recent $1.8bn debt issue as 'BB-'', three notches below investment grade.
Fashion retailer Abercrombie & Fitch retreated after Credit Suisse downgraded the stock from 'outperform' to 'neutral' and almost halved its target from $53 to $28.
Hertz Global Holdings fell after announcing it that, in addition to 2011 financial statement, it also needs to restate 2012 and 2013 quarterly and annual financial statements.
The dollar rose against the pound, yen and the euro, while gold futures slid to $1,149.20.
Oil prices rebounded after losing over three percentage points on Thursday, with West Texas intermediate crude trading at just under $75 a barrel, while Brent crude was trading at just over $79 a barrel.
The yield on the 10-year US Treasury note rose two basis points to 2.36%, while the 30-year note advanced one basis point to 3.08% and the five-year Treasuries gained three basis points to 1.65%. |
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| | Broker Tips | | Broker tips: Salamander, Keller Group, Majestic Wine The possible bid from a consortium of investors led by Spain´s CEPSA for oil explorer Salamander would be successful were it to take the form that has been mooted, broker Canaccord Genuity said in a research note e-mailed to clients.
On Friday 14 November Salamander said it had received a 121p per share offer from said group of investors, plus a contingent award of up to 24p per share in cash dependent on the firm´s upcoming exploration drilling programme at the G4/50 blocks.
The exploration area surrounds the company´s main producing asset, known as Bualuang.
The announcement, however, was made without the consent of CEPSA, which on the morning of 17 November said it was still considering the terms of any such bid.
The transcation, as per the terms outlined by Salamander, "looks good" the analysts said.
On the assumption of a long-term price of oil at $88 per barrel and at a 10% discount rate the base price which is being discussed would be in-line with their own central estimate for net asset value (NAV) on a discovered resource basis, analysts Thomas Martin and Charlie Sharp pointed out.
Neither was Ophir Energy, which had also been looking at Salamander, expected to make a compelling alternative offer.
As well, the contingent award meant that investors would retain some upside exposure in case of exploration success.
Following on from all of the above, Canaccord lowered its price target on the stock to 120p per share, from 140p, and given the recent movement in the share price lowered its recommendation to 'hold' from 'buy'.
Investec said it remained "confident" in its outlook for ground engineering specialist Keller after it reported trading in line with expectations.
Both revenue and profit for the period between the start of July and 16 November came in ahead of the previous year, with steady growth in US construction helping to offset challenges in Europe and Australia.
While revenue and profits in all its US businesses were ahead of last year and the outlook for the UK and Poland improved, challenges remained in all other regions.
"The improving US construction market continues to contribute to a strong performance, albeit Canada has seen no improvement in the resources market," said the broker.
"European markets remain difficult, but don't seem to be worsening. The early signs of improvement in the commercial and infrastructure sectors in Australia have dissipated recently, whilst Asia remains busy."
Investec added that Australia looks like it will "endure a difficult first half", but noted there continued to be a number of live prospects in the second half and into 2015. Trading in Asia is expected to be solid.
The broker reiterated its 'buy' rating for the group after noting that the group has a number of "exciting and large projects" at various stages of the bidding process, which it continues to believe will help drive a "significant margin improvement from current levels".
Broker Investec is advising investors to fill up on shares in Majestic Wine despite news of a fall in half-year profits.
Majestic said on Monday that pre-tax profits in the 26 weeks to 29 September fell to £8.5m against £9.5m in the first half a year ago due to investment in a bigger distribution centre and tough trading in its Lay & Wheeler business.
Investec said it was cutting its target to 410p from 460p, but it upgraded the retailer to 'buy' from 'add' following what it described as "material share price under-performance".
The broker said Majestic's valuation was undemanding.
"With full-year 2015 being a year of investment, we expect growth to resume in full year 2016," Investec analyst Kate Calvert said. | | |
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