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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: UK stocks finish flat as retailers fall, data comes in mixed London's FTSE 100 ended Tuesday's session more or less where it started with stocks in the retail sector limiting gains while investors digested a string of important economic data.
A disappointing third-quarter update from Kingfisher saw shares in the DIY retailer slump, while the supermarket sector was under pressure after Tesco shareholders launched legal action following a recent accounting scandal.
Oil and mining stocks were also providing a drag on the FTSE 100, with the blue-chip index finishing just 0.02% higher at 6,731.
Earlier gains across Europe - sparked by ongoing speculation about monetary easing by the European Central Bank - were erased by the close of trade after some mixed economic indicators from the States.
Annualised US gross domestic product (GDP) growth for the third quarter was revised higher to 3.9%, up from the initial estimate of 3.5%, surprising analysts who had expected a downwards revision to 3.3%.
The upside surprise is "another reason to expect the Fed to begin normalising interest rates sooner than expected next year", according to analysts at Capital Economics who predict the Federal Reserve will start hiking rates in March 2015.
However, sentiment was dampened by the data which showed that US consumer confidence unexpectedly tumbled in November, while annual US house-price inflation eased to its slowest pace in two years in September.
Earlier in the session, figures showed that Germany avoided recession with the economy expanding by 0.1% in the third quarter, while UK mortgage approvals dropped to a 17-month low in October.
Retailers under pressure
Shares in Kingfisher declined after the B&Q and Screwfix owner saw like-for-like sales fall in the third quarter as decent growth in the UK and Ireland was offset by falling sales in its largest market, France.
Tesco was feeling the heat from its indignant shareholders in response to a recent accounting scandal that left a £263m black hole in its accounts. A law firm claimed that shareholders are entitled to compensation for losses caused by the overstating of earnings. Grocery rivals J Sainsbury and Wm Morrison were also under the weather.
Oil producers such as BP, Tullow Oil and Shell were lower as crude prices declined for the second straight day ahead of Thursday's OPEC meeting. Prices recently hit a four-year low on concerns that OPEC won't issue a cut in production.
Mining stocks were also mostly weaker as shares continued to retreat after a China-inspired rally last week as the country's central bank unexpectedly lowered interest rates. Anglo American and BHP Billiton both fell.
Meanwhile, media stocks were putting in a decent performance with Sky, Reed Elsevier and ITV rising strongly. ITV was helped by comments from Goldman Sachs which reiterated its 'buy' rating on the stock due to an "attractive" valuation.
BT was continuing to rise on speculation that it could buy UK mobile operator O2 from Telefonica. Spanish newspaper El Confidencial reported BT could offer at least €6bn (£4.76bn) on top of a 20% stake in its share capital for the company it originally spun off in 2001. |
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| | Market Movers
techMARK 2,910.08 +0.26%
FTSE 100 6,731.14 +0.02%
FTSE 250 15,831.55 +0.77%
FTSE 100 - Risers
Sky (SKY) 918.00p +2.57%
Royal Bank of Scotland Group (RBS) 387.10p +2.16%
ITV (ITV) 209.20p +2.05%
Reed Elsevier (REL) 1,095.00p +1.96%
Associated British Foods (ABF) 3,109.00p +1.83%
Schroders (SDR) 2,662.00p +1.80%
Next (NXT) 6,865.00p +1.63%
BAE Systems (BA.) 472.50p +1.57%
GKN (GKN) 340.30p +1.55%
Petrofac Ltd. (PFC) 891.00p +1.54%
FTSE 100 - Fallers
Sainsbury (J) (SBRY) 241.40p -4.32%
Kingfisher (KGF) 291.30p -4.11%
Morrison (Wm) Supermarkets (MRW) 181.10p -3.16%
Tesco (TSCO) 188.15p -2.71%
Babcock International Group (BAB) 1,152.00p -2.62%
Anglo American (AAL) 1,329.50p -1.81%
BHP Billiton (BLT) 1,593.50p -1.70%
Dixons Carphone (DC.) 419.80p -1.57%
Smith & Nephew (SN.) 1,123.00p -1.32%
BG Group (BG.) 1,050.50p -1.08%
FTSE 250 - Risers
Balfour Beatty (BBY) 176.80p +8.40%
Mitchells & Butlers (MAB) 376.10p +7.76%
Paragon Group Of Companies (PAG) 406.90p +7.67%
Infinis Energy (INFI) 229.80p +6.39%
Petra Diamonds Ltd.(DI) (PDL) 206.30p +6.01%
Evraz (EVR) 162.60p +5.72%
Stock Spirits Group (STCK) 258.90p +4.73%
Greencore Group (GNC) 272.10p +4.57%
Serco Group (SRP) 175.20p +4.41%
Bodycote (BOY) 630.00p +4.05%
FTSE 250 - Fallers
Centamin (DI) (CEY) 49.23p -6.58%
Zoopla Property Group (WI) (ZPLA) 178.60p -6.00%
EnQuest (ENQ) 66.60p -4.24%
Premier Oil (PMO) 228.40p -4.03%
Spirent Communications (SPT) 66.45p -3.90%
Rightmove (RMV) 2,243.00p -3.40%
Afren (AFR) 67.15p -3.10%
TSB Banking Group (TSB) 262.40p -3.07%
Spire Healthcare Group (SPI) 326.70p -3.06%
Card Factory (CARD) 242.10p -3.04% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks rise after US and German GDP European stocks gained as investors weighed economic growth data in German and the US.
The Federal Statistics office in its final estimate said German gross domestic product (GDP) rose 0.1% in the third quarter. The economy grew 0.3% in annualised terms, after a 0.1% quarterly contraction in the second quarter.
"Overall, the composition lends support to our expectations that German GDP will continue to grow moderately at around 0.1% quarter-on-quarter in the fourth quarter," said Berenberg.
In the US, the Commerce Department said GDP rose to an annualised growth of 3.9%, compared to a previous estimate of 3.5%. Analysts had GDP would be revised to a 3.3% gain.
US personal consumption was revised to 2.2% in the third quarter from 1.8%, compared to forecasts for a 1.9% gain.
Separately, the Conference Board's index for US consumer confidence fell to 88.7 in November from 94.5 a month earlier, missing estimates for a reading of 96.
Meanwhile, the Organisation for Economic Co-operation and Development (OECD) said that the global economy will gradually improve over the next two years. However, OECD estimated that Japan will grow less than previously expected while Eurozone struggles with stagnation and an increased deflation risk.
Carney says Eurozone poses threat to UK
Bank of England (BoE) Governor Mark Carney said the prolonged slowdown in Eurozone poses the biggest threat to the UK economy.
However, on the same day BoE policymaker Kristen Forbes said that the outlook for the global economy may not be as weak as fellow Monetary Policy Committee members predict, weighing less on the UK than expected.
In other UK news, a report from the British Bankers' Association showed British banks approved 37,076 mortgages for house purchase in October, the lowest number since May last year.
Mortgage approvals for house purchase fell from 39,127 in September, 16% down from the same time a year ago.
Santander higher after CEO appointment
Santander's shares climbed after saying its chief executive Javier Marin will be replaced by chief financial officer Jose Antonio Alvarez.
IG Group advanced as the UK spread betting firm said sales for the quarter ending 1 December will rise to a record.
ING Groep NV rallied after the Dutch lender said it plans to cut 1,700 jobs in the next three years.
Kingfisher slumped after the home improvement retailer reported a 9.3% fall in France sales in the 13 weeks to 1 November.
The euro rose 0.19% to $1.2466. |
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| | US Market Report | | US open: Markets edge forward amid better-than-expected GDP growth US stocks moved slightly forward on Tuesday, as the country's economy grew more than forecast in the third quarter.
Just before 10:00 in New York the Dow Jones Industrial Average was 0.01% down, while the S&P 500 rose 0.20% and the Nasdaq was 0.40% up.
According to figures released by the Commerce Department gross domestic product (GDP) rose by an annualised 3.9% in the three months to the end of September, revised up from the initial estimate of 3.5%.
GDP has now grown by an average of 4.2% in the last six months, the strongest two-quarter stretch since the middle of 2003.
Meanwhile, the Organisation for Economic Co-operation and Development (OECD) said that the global economy will gradually improve over the next two years. However, the OECD estimated that Japan will grow less than previously expected, while the Eurozone will struggle with stagnation and an increased deflation risk.
"Although surveys suggest consumer confidence has risen to its highest since 2007, the mood in the corporate sector has started to sour," said Chris Williamson, chief economist at Markit.
"Business expectations about the year ahead are running at the lowest seen since 2009. Hiring and investment intentions have also slipped to post-recession lows as US companies worry in particular about the global economic climate.
"With central banks in the Eurozone and Japan taking further action to boost economic growth, worries about the global economic outlook are perhaps overly gloomy. "
Tiffany & Co declined after missing third-quarter profit estimates, while Post Holdings fell as the company forecast a $15m-$20m decline in first-quarter RTE cereal sales from a year earlier.
Signet Jewelers rose after reporting third-quarter earnings that beat analysts' estimates, while Nuance Communications jumped as the maker of speech-recognition software reported fourth-quarter earnings that charged ahead of market forecasts.
The dollar fell against the pound, the euro and the yen, while gold futures advanced slightly to $1.196.90.
The yield on the 10-year US Treasury note fell one basis point to 2.30%, while the yield 30-year note fell two basis points to 3.00% and the yield on the five-year Treasuries declined one basis point to 1.59%. |
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| | Broker Tips | | Europe close: Stocks rise after US and German GDP European stocks gained as investors weighed economic growth data in German and the US.
The Federal Statistics office in its final estimate said German gross domestic product rose 0.1% in the third quarter. The economy grew 0.3% in annualised terms, after a 0.1% quarterly contraction in the second quarter.
"Overall, the composition lends support to our expectations that German GDP will continue to grow moderately at around 0.1% quarter-on-quarter in the fourth quarter," said Berenberg.
In the US, the Commerce Department said GDP rose to an annualised growth of 3.9%, compared to a previous estimate of 3.5%. Analysts had GDP would be revised to a 3.3% gain.
US personal consumption was revised to 2.2% in the third quarter from 1.8%, compared to forecasts for a 1.9% gain.
Separately, the Conference Board's index for US consumer confidence fell to 88.7 in November from 94.5 a month earlier, missing estimates for a reading of 96.
Meanwhile, the Organisation for Economic Co-operation and Development said that the global economy will gradually improve over the next two years. However, OECD estimated that Japan will grow less than previously expected while Eurozone struggles with stagnation and an increased deflation risk.
Carney says Eurozone poses threat to UK
Bank of England Governor Mark Carney said the prolonged slowdown in Eurozone poses the biggest threat to the UK economy.
However, on the same day BoE policymaker Kristen Forbes said that the outlook for the global economy may not be as weak as fellow Monetary Policy Committee members predict, weighing less on the UK than expected.
In other UK news, a report from the British Bankers' Association showed British banks approved 37,076 mortgages for house purchase in October, the lowest number since May last year.
Mortgage approvals for house purchase fell from 39,127 in September, 16% down from the same time a year ago.
Santander higher after CEO appointment
Santander's shares climbed after saying its chief executive Javier Marin will be replaced by chief financial officer Jose Antonio Alvarez.
IG Group advanced as the UK spread betting firm said sales for the quarter ending 1 December will rise to a record.
ING Groep NV rallied after the Dutch lender said it plans to cut 1,700 jobs in the next three years.
Kingfisher slumped after the home improvement retailer reported a 9.3% fall in France sales in the 13 weeks to 1 November.
The euro rose 0.19% to $1.2466. | | |
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