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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 erase gains as US data misses forecasts After a choppy session, the UK stock market finished more or less flat despite gains in the mining and telecom sectors, with a string of mostly disappointing economic data from the US weighing on sentiment. London's FTSE 100 finished the session just 1.97 points lower (-0.03%) at 6,729.17, having hit a high of 6,765.01 early on.
"A week that sees outperforming Eurozone data and poor US figures is always going to unsettle traders, with the market unable to reconcile the sudden downturn in numbers from the world's largest economy," said analyst Chris Beauchamp from IG.
"Today's pre-Thanksgiving barrage of US data kept markets on the hop but provided little good news," he said.
US jobless claims increased by 21,000 to 313,000 last week, well above the 288,000 expected by the market and the highest level registered in 11 weeks.
A wave of other US data also came in worse than forecasts, including personal spending figures, the Chicago manufacturing survey, the University of Michigan consumer-confidence index, and pending home sales. Data on durable-goods orders was the only indicator to beat expectations by unexpectedly rising 0.4% in October.
Closer to home, figures released on Wednesday morning confirmed that the British economy expanded as expected in the third quarter. UK gross domestic product growth was unrevised at 0.7%, a slowdown from the 0.9% expansion seen in the second quarter but "still very decent", according to economist Howard Archer from IHS Global Insight.
Markets across Europe finished mostly lower after European Central Bank vice president Vitor Constancio said the Bank may consider sovereign bond-buying early next year. His comments "suggested full sovereign quantitative easing would not come until next year", said analyst Jasper Lawler from CMC Markets UK.
Mining and telecom stocks on the rise, Thomas Cook plummets
MIning stocks were among the best performers on the FTSE 100, rebounding after recent declines with Antofagasta, Anglo American, Fresnillo and Randgold all registering decent gains.
BT Group was continuing to rise after saying that it was in talks with various companies about buying their UK mobile phone networks. It had previously announced it was in discussions with Telefonica, which owns O2, though Deutsche Telekom and Orange confirmed they are also in talks with BT about selling their EE joint venture.
Possible industry consolidation surrounding BT, which already runs broadband and TV operations, has also prompted speculation that other companies could look to combine operations. There were renewed rumours that Vodafone could approach Sky with a possible takeover offer or look to expand their partnership, sending shares in both firms higher.
Shares in Thomas Cook sank nearly 18% as it announced that chief executive Harriet Green has stepped down after just over two years in charge of the troubled FTSE 250 travel group. Green claimed her turnaround "was complete" as annual results showed improving profits from all divisions. Larger peer TUI Travel also finished lower.
Catering group Compass underwhelmed with its annual results, with the stock in the red after a 10.5% increase in the dividend and a 5.4% rise in full-year profits. Analysts at The Share Centre said the results were "solid" but the stock's valuation is "full".
Also falling was Britvic, who identified upcoming fierce competition between retailers in Britain, Ireland and France as a source of pressure on prices and sales growth.
Competition concerns were also weighing on Rightmove ahead of the launch of a new entrant to the property portal market early next year. Investec downgraded Rightmove from 'hold' to 'sell', saying that the launch of Agents' Mutual "could cause some trading turbulence, not helped by a tougher near-term housing market".
Meanwhile, Royal Mail was in the red after chief executive Moya Greene warned parliament that cherry-picking of more profitable urban delivery contracts seriously threatens the company's ability to provide countrywide letter delivery. |
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| | Market Movers
techMARK 2,911.43 +0.05%
FTSE 100 6,729.17 -0.03%
FTSE 250 15,788.43 -0.27%
FTSE 100 - Risers
Antofagasta (ANTO) 761.00p +3.75%
Kingfisher (KGF) 298.70p +2.54%
BT Group (BT.A) 404.40p +2.17%
SSE (SSE) 1,609.00p +1.84%
Hargreaves Lansdown (HL.) 984.00p +1.65%
Sports Direct International (SPD) 639.00p +1.51%
Anglo American (AAL) 1,347.50p +1.35%
Randgold Resources Ltd. (RRS) 4,474.00p +1.04%
Shire Plc (SHP) 4,513.00p +1.01%
Fresnillo (FRES) 755.00p +1.00%
FTSE 100 - Fallers
TUI Travel (TT.) 417.50p -2.11%
Smith & Nephew (SN.) 1,107.00p -1.42%
Compass Group (CPG) 1,060.00p -1.30%
Coca-Cola HBC AG (CDI) (CCH) 1,428.00p -1.24%
Carnival (CCL) 2,639.00p -1.05%
BP (BP.) 437.90p -1.04%
GKN (GKN) 336.90p -1.00%
Sainsbury (J) (SBRY) 239.00p -0.99%
easyJet (EZJ) 1,545.00p -0.96%
ITV (ITV) 207.20p -0.96%
FTSE 250 - Risers
Zoopla Property Group (WI) (ZPLA) 190.20p +6.50%
AO World (AO.) 230.00p +5.84%
Balfour Beatty (BBY) 184.70p +4.47%
Daejan Holdings (DJAN) 5,125.00p +2.91%
Intermediate Capital Group (ICP) 469.80p +2.87%
Redrow (RDW) 280.10p +2.68%
Kaz Minerals (KAZ) 254.00p +2.58%
JD Sports Fashion (JD.) 477.60p +2.49%
Brewin Dolphin Holdings (BRW) 271.90p +2.33%
Greencore Group (GNC) 278.10p +2.21%
FTSE 250 - Fallers
Thomas Cook Group (TCG) 113.50p -17.69%
Evraz (EVR) 152.30p -6.33%
Britvic (BVIC) 655.00p -5.96%
QinetiQ Group (QQ.) 196.50p -4.66%
Kier Group (KIE) 1,431.00p -3.44%
Telecom Plus (TEP) 1,215.00p -3.42%
Mitchells & Butlers (MAB) 363.50p -3.35%
Afren (AFR) 65.15p -2.98%
Betfair Group (BET) 1,331.00p -2.78%
Fisher (James) & Sons (FSJ) 1,031.00p -2.64% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks mixed after UK GDP, US data European stocks were mixed as analysts weighed UK economic growth figures and a batch of US data released before the markets close for Thanksgiving. UK, gross domestic product (GDP) rose an annualised 3% in the third quarter, as expected by analysts, the Office for National Statistics confirmed.
Capital Economics said the second estimate of GDP indicated that the end of the squeeze on real pay is helping consumers to drive the overall recovery.
"What's more, the prospects look bright for continued strong growth over the next few years," the analysts said.
In the US, a report showed durable goods orders rose 0.4% in October compared to a fall of 0.9% the previous month and analysts' expectations for a 0.6% drop.
US initial jobless claims increased 313,000 in the week to 22 November, more than the 288,000 predicted by the market.
US personal spending rose 0.2% in October following a flat reading the previous month. Analysts forecast a 0.3% gain.
The University of Michigan's index for consumer confidence in the US dropped to 88.8 in November from 89.4 the month before, surprising analysts who had expected a rie to 90.
ECB to consider buying sovereign debt next year
European Central Bank (ECB) vice president Victor Constancio said the monetary authority would consider purchasing sovereign debt next year.
Constancio said the ECB would look into buying government bonds proportional to the size of each Eurozone member's economy.
"We expect that the adopted measures will lead, within the time of the programme, the balance sheet to go back to the size it had in early 2012," Constancio said in a speech in London on Wednesday.
"If not, we will have to consider buying other assets, including sovereign bonds in the secondary market, the bulkier and more liquid market of securities available."
BT gains on EE takeover talks
BT Group jumped after Deutsche Telekom AG and Orange SA confirmed they are in talks to sell their UK wireless carrier EE to the British company.
Oil stocks slid as Saudi Arabia's oil minister said falling crude prices will stabilise and there's no need for producing nations to cut output.
Thomas Cook slumped after reporting annual profit that missed analyst estimates and announcing the resignation of its chief executive.
Amadeus IT Holding dropped as Deutsche Bank said it was selling 6.2m shares in the Spanish operator of travel booking systems.
The euro rose 0.23% to $1.2503. |
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| | US Market Report | | US open: Markets largely unchanged after slightly disappointing economic data US stocks were largely unchanged on Wednesday, as the number of jobless claims rose for the first time since September and orders for durable goods increased. Just before 10:00 in New York, the Dow Jones Industrial Average was 0.09% down, while the S&P 500 rose 0.02% and the Nasdaq fell 0.2%.
According to figures released by the US Department of Commerce, orders for durable goods increased by 0.4% month-on-month in October to $243.8bn, beating consensus estimate of a 0.6% drop.
September's figure was revised upward to show a drop of 0.9% month-on-month, instead of the 1.1% initially estimated, while durable goods orders have risen 7.5% year-on-year.
Meanwhile, the core personal consumption index (CPI), the Federal Reserve's preferred measure of inflation, came in at 1.4% year-on-year, as expected, although the core measure ticked higher to 1.6%.
"Inflation has become a hot topic this year and is likely to continue to be in 2015, although the US seems to be suffering far less from low inflation than many of the other major nations," said Craig Erlam, analyst at Alpari UK.
"The latest reading is expected to pick up slightly from October's 1.5% reading, which would be in keeping with the CPI and PPI inflation readings, both of which showed an improvement when released last week."
Meanwhile, the latest jobless claims report jumped to an 11-week high, topping the 300,000 mark for the first time since early September.
The number of people who applied for new unemployment benefits jumped 21,000 to 313,000 in the week ended 22 November, exceeding the 288,000 estimate.
In corporate news, Hewlett-Packard rose almost 3% despite reporting fourth quarter sales that missed estimates, while Deere & Co slid after revealing its 2015 profit will be $1.9bn rather than $2.2bn as originally estimated.
Hertz Global Holdings fell slightly, after Icahn Associates increased its stake in the car rental company to about 11% from 8.7% at the end of September.
The dollar fell against the pound, the yen and the euro, while gold futures slid marginally to $1.197.10.
The yield on the 10-year US Treasury note dropped two basis points to 2.24%, while the yield on the 30-year note declined by the same margin to 2.94% and the yield on the five-year Treasuries fell one basis point to 1.56%. |
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| | Broker Tips | | Broker tips: BT, Sage, Compass, Thomas Cook UBS has speculated that if BT follows through with its current talks to buy O2 or EE it would become less aggressive in the forthcoming Premier League rights auction and produce a better outcome for Sky.
"We think concerns about Sky losing the EPL rights are weighing on investor sentiment but we are optimistic that the outcome could be less extreme than the market fears."
Numis Securities has raised its recommendation for accountancy software group Sage from 'hold' to 'add' ahead of the company's annual results next week.
Following the appointment of new Sage chief executive Stephen Kelly this month, Numis said that the results, due on 3 December, will be "a clear opportunity for management to re-invigorate the equity story".
Compass' full-year results were "solid", according to The Share Centre, but the broker kept a 'hold' rating on the catering stock.
"The company has a good pipeline of new contracts and expects to see progress in all its regions, however much of this is already factored into the share price and the valuation looks relatively full."
Stockbroker IG has raised concerns with Thomas Cook's ongoing turnaround plan following the news that chief executive Harriet Green has stepped down with immediate effect. | | |
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