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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: Hopes of Chinese and European economic stimulus lift stocks A surprise cut in Chinese interest rates and hints about quantitative easing from the European Central Bank boosted the London market on Friday. The People's Bank of China cheered markets by reducing its one-year benchmark lending rate by 40 basis points to 5.6% to lift an economy on course for its slowest annual rate of growth in more than two decades.
European Central Bank president Mario Draghi weighed in by hinting that money-printing was among options still being considered by the ECB to head off deflation.
British Chancellor of the Exchequer George Osborne is set to miss forecasts for reducing public sector borrowing in the UK, figures from the Office for National Statistics showed.
But traders shrugged off the downbeat numbers, lifting the FTSE 100 Index by 71.86 points to 6750.76 at the close.
The news from Beijing boosted miners, which led the top-flight index higher.
Anglo American gained 86.5p to 1380p, Rio Tinto added 177p at 3042p, Fresnillo twinkled 38.5p to 763.5p, BHP Billiton strengthened 79.5p to 1662p and Antofagasta advanced 33.5p to 730.5p.
Randgold Resources also gleamed 161p to 4496p as gold prices topped $1,200 an ounce.
US light crude oil prices climbed back above the $75 a barrel threshold on speculation that OPEC will cut oil production when it meets next week.
Oil stocks reacted positively, with Tullow Oil spurting 27.7p to 505p, services group Weir progressing 82p to 2112p, BG Group inflating 23p to 1069p, Royal Dutch Shell gushing 38p[ to 2391p and BP up 6.85p at 448.2p.
But investors in travel stocks balked at the prospect of higher fuel prices. TUI Travel was 3.7p off at 423.4p, cruise operator Carnival floated 21p lower to 2617p and Easyjet descended 12p to 1553p.
Royal Bank of Scotland fell 2.9p to 377.7p as news emerged just before the market closed that it had made an error in calculating its capital ratio for the latest round of stress tests in Europe.
techMARK 2,893.95 +0.83%
FTSE 100 6,750.76 +1.08%
FTSE 250 15,691.62 +0.56% |
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| | FTSE 100 - Risers
Anglo American (AAL) 1,380.00p +6.69%
Rio Tinto (RIO) 3,042.00p +6.18%
Tullow Oil (TLW) 505.00p +5.80%
Fresnillo (FRES) 763.50p +5.31%
BHP Billiton (BLT) 1,662.00p +5.02%
Antofagasta (ANTO) 730.50p +4.81%
Weir Group (WEIR) 2,112.00p +4.04%
Glencore (GLEN) 336.25p +3.96%
Randgold Resources Ltd. (RRS) 4,496.00p +3.71%
Hargreaves Lansdown (HL.) 1,012.00p +3.37%
FTSE 100 - Fallers
Imperial Tobacco Group (IMT) 2,885.00p -1.33%
TUI Travel (TT.) 423.40p -0.87%
Carnival (CCL) 2,617.00p -0.80%
easyJet (EZJ) 1,553.00p -0.77%
Royal Bank of Scotland Group (RBS) 377.70p -0.76%
Centrica (CNA) 292.00p -0.65%
Dixons Carphone (DC.) 419.90p -0.64%
Reckitt Benckiser Group (RB.) 5,160.00p -0.58%
National Grid (NG.) 931.50p -0.48%
Sports Direct International (SPD) 635.00p -0.47%
FTSE 250 - Risers
Lonmin (LMI) 193.00p +7.94%
Evraz (EVR) 149.40p +7.79%
Vedanta Resources (VED) 810.00p +7.71%
EnQuest (ENQ) 70.30p +7.57%
Micro Focus International (MCRO) 1,125.00p +6.13%
Centamin (DI) (CEY) 52.50p +4.79%
Kaz Minerals (KAZ) 247.60p +4.65%
Premier Oil (PMO) 242.70p +4.39%
Paragon Group Of Companies (PAG) 384.50p +4.37%
Ocado Group (OCDO) 321.40p +3.44%
FTSE 250 - Fallers
Ophir Energy (OPHR) 170.00p -5.61%
Tullett Prebon (TLPR) 253.50p -5.41%
Serco Group (SRP) 170.00p -5.03%
Cranswick (CWK) 1,335.00p -4.09%
TalkTalk Telecom Group (TALK) 282.50p -3.72%
Diploma (DPLM) 685.00p -2.91%
Greene King (GNK) 746.50p -2.23%
Mitchells & Butlers (MAB) 353.40p -1.83%
Thomas Cook Group (TCG) 136.00p -1.66%
IP Group (IPO) 199.40p -1.58% FTSE TechMARK - Risers
CML Microsystems (CML) 332.50p +5.56%
RM (RM.) 154.50p +4.39%
Gresham Computing (GHT) 83.50p +3.73%
Kofax Limited (DI) (KFX) 424.25p +2.14%
Vectura Group (VEC) 122.00p +2.09%
Sepura (SEPU) 144.00p +1.41%
Consort Medical (CSRT) 746.50p +0.81%
Promethean World (PRW) 24.88p +0.51% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks finish higher on ECB asset purchases, China interest-rate cut The European Central Bank (ECB) provided a boost to markets on Friday after saying it would boost asset purchases if inflation remained low for too long. Speaking in Frankfurt, ECB President Mario Draghi said the central bank would "do what we must" to help address dangerously low inflation and a stagnant economy. The ECB on Friday started buying asset-backed securities in an attempt to encourage banks to lend.
"Altogether, this implies that we are getting closer to the point at which the ECB may decide that one of the contingencies for further substantial action has been triggered," Barclays said of Draghi's remarks.
"This could as early as December if the November [inflation] estimate (to be released next week) surprises to the downside (consensus forecast 0.3% year-on-year after 0.4% year-on-year in October). However, we consider it somewhat more likely that the announcement to also purchase government bonds will come in the first quarter next year (our baseline)."
The euro fell 1.16% to $1.2394 at close of trading.
China cuts interest rates
China slashed its cost of borrowing for the first time in two years in a bid to kick-start its flagging economy. The country's central bank reduced one-year benchmark lending rates by 40 basis points to 5.6% to lift an economy on course for its slowest annual growth in more than two decades.
The People's Bank of China added that one-year benchmark deposit rates would be lowered by 25 basis points and the reductions would take effect on 22 November.
Oil stocks gain as crude increases
Oil and gas companies rallied, including Tullow Oil and Total, after crude headed for its first weekly increase since September. Brent crude futures advanced 1.6% to $80.62 per barrel, according to the ICE.
Bouygues SA was a high riser after Altice SA's chief executive officer said it would be open to discussing a deal to buy all of Bouygues Telecom.
BW Offshore advanced after reporting third-quarter revenue that beat analysts' estimates.
Ophir Energy slumped after an oil explorer active in Africa agreed to buy London-based producer Salamander Energy in an all-stock offer.
Orange SA jumped after chief executive Stephane Richard said it will consider a strategic alliance with a landline or cable provider. |
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| | US Market Report | | US open: Stocks advance after Chinese rate cuts and Draghi's comments US stocks rallied on Friday, as oil and metal prices rose after a surprise rate cut from China's central bank.
Just before 10:00 in New York, the Dow Jones Industrial Average was 0.85% up, while the S&P 500 gained 0.23% and the Nasdaq rose 0.56%.
China's central bank took the surprising decision to cut its one-year loan rate by 40 basis points and its one-year deposit rate by 25 basis points, adding it would allow more flexibility in deposit rates.
Over in Europe at a banking conference in Frankfurt, president of the European Central Bank (ECB) Mario Draghi said the bank will do what it "must to raise inflation and inflation expectations as fast as possible".
"We will continue to meet our responsibility - we will do what we must to raise inflation and inflation expectations as fast as possible, as our price stability mandate requires of us," Draghi said.
The comments were taken as a sign the ECB will step-up asset buying.
"There is clearly a step up in rhetoric from Draghi in signalling the ECB's willingness to take further monetary policy accommodation on the back of a 'challenging' disinflationary environment in the eurozone," said Gizem Kara, senior European economist at BNP Baripas.
"With the upcoming ECB staff growth and inflation projections likely to show significant downward revisions the central bank's credibility in achieving its mandate of price stability will be challenged further.
"This should pave the way for additional easing, via a broadening of asset purchases, possibly as early as the December policy meeting."
In corporate news, Foot Locker advanced after the sports retailer's profit and sales beat estimates, while sector peer Hibbett Sports soared after raising its outlook.
Gap slid after announcing late on Thursday its results missed Wall Street forecasts and the clothing firm also delivered a disappointing full-year outlook, while Splunk jumped after results topped analysts forecasts.
Wynn Resorts advanced despite a Wall Street Journal report suggesting that the casino operator was being investigated by federal authorities over whether it broke money-laundering rules.
The dollar fell against the yen but rose against the pound and gained almost 1% against the euro, as the European currency showed signs of weakening after Draghi's comments.
Gold future rose to $1,202.90, while the prices of Brent crude and West Texas intermediate crude rose by about 1%, with the former trading at just under $80.50 a barrel and the latter trading at just over $76.50 a barrel. |
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| | Broker Tips | | Broker tips: Easyjet, Serco, Oil stocks Broker Liberum has lifted its target for budget airline Easyjet from 1,650p to 1,725p and repeated its 'buy' recommendation, hailing the company's effort to adapt to an "inflationary world".
Analyst Gerald Khoo said while non-fuel unit cost inflation is set to rise, Easyjet's so-called 'lean' cost-saving initiatives and additional larger A320 aircraft "will be crucial in mitigating this".
Credit Suisse has lowered its rating for UK outsourcing group Serco from 'neutral' to 'underperform' and more than halved its target from 325p to 142p, saying that the shares are "too expensive".
"After the unveiling of significant onerous contract provisions and the risk of more to come, we see huge uncertainty around the operational cash flows of the business," the bank said.
Westhouse Securities has called for investors in the oil and gas sector to be a "bit more patient" with oil prices currently rumbling along at multi-year lows, as it highlighted buying opportunities in the sector. | | |
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