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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: M&S helps stocks to brush off downbeat services data Markets shrugged off fresh economic woes and gold price falls on Wednesday, helped by positive news from retailer Marks & Spencer (M&S). Continental European service sector data came in weak and UK service data also surprised on the downside, slowing to a 17-month low in October.
Fears that the decline could be linked to a general global economic downturn rose as the pace of growth in the US service sector cooled in October after strong momentum in the last few months.
But the FTSE 100 Index raced ahead 85.17 points to 6539.14 as M&S posted a rise in underlying first-half profit for the first time in four years, raised guidance on its non-food gross margin for 2014-15 and hiked its dividend.
Investors in M&S, whose shares led the Footsie risers with a 39.4p gain to 444.1p, have become concerned about the retailer's ability to revive its clothing sales despite ongoing strength in food.
David Madden at spread-betting firm IG said: "M&S chief executive Marc Bolland will certainly remember the fifth of November as it was the day he showed traders his turnaround plan was working."
Elsewhere in corporate news, Associated British Foods got 159p tastier at 2942p after Citigroup lifted its stance on the stock from 'neutral' to 'buy' on prospects for its fast-growing retail chain Primark.
Falls in the price of gold to less than $1150 an ounce hit shares in Randgold Resources by 40p to 3765p while lower silver prices knocked Fresnillo's stock by 13p to 684.5p.
Kitchen manufacturer and distributor Howden Joinery was among a number of companies that pleased investors with forecasts of better-than-expected profits. Its shares lifted 28.1p to 371p.
But pub group Wetherspoon lost its fizz by 34p to 798p after reporting lacklustre trading last month.
Market Movers
techMARK 2,793.92 +1.48%
FTSE 100 6,539.14 +1.32%
FTSE 250 15,526.33 +0.86% |
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| | FTSE 100 - Risers
Marks & Spencer Group (MKS) 444.10p +9.74%
Meggitt (MGGT) 473.20p +7.55%
Tullow Oil (TLW) 489.50p +6.90%
Morrison (Wm) Supermarkets (MRW) 162.40p +5.94%
Associated British Foods (ABF) 2,942.00p +5.71%
United Utilities Group (UU.) 865.50p +2.79%
Standard Life (SL.) 395.90p +2.72%
Aberdeen Asset Management (ADN) 442.00p +2.67%
Travis Perkins (TPK) 1,656.00p +2.60%
Coca-Cola HBC AG (CDI) (CCH) 1,379.00p +2.60%
FTSE 100 - Fallers
Admiral Group (ADM) 1,296.00p -2.99%
Kingfisher (KGF) 285.00p -2.83%
Fresnillo (FRES) 684.50p -1.86%
Randgold Resources Ltd. (RRS) 3,765.00p -1.05%
Standard Chartered (STAN) 936.00p -1.00%
Babcock International Group (BAB) 1,068.00p -0.93%
ITV (ITV) 202.70p -0.10%
Whitbread (WTB) 4,341.00p -0.05%
FTSE 250 - Risers
Ocado Group (OCDO) 296.00p +12.76%
Howden Joinery Group (HWDN) 371.00p +8.19%
AO World (AO.) 191.10p +5.29%
Hikma Pharmaceuticals (HIK) 1,970.00p +5.29%
Senior (SNR) 273.00p +4.80%
Cairn Energy (CNE) 150.00p +4.75%
Afren (AFR) 73.00p +4.73%
Synergy Health (SYR) 1,973.00p +4.67%
Dunelm Group (DNLM) 874.00p +4.48%
Ophir Energy (OPHR) 186.10p +4.37%
FTSE 250 - Fallers
Stock Spirits Group (STCK) 225.00p -25.10%
esure Group (ESUR) 222.00p -7.31%
Centamin (DI) (CEY) 48.99p -6.24%
Aveva Group (AVV) 1,353.00p -5.38%
African Barrick Gold (ABG) 200.50p -4.71%
Wetherspoon (J.D.) (JDW) 798.00p -4.09%
Hochschild Mining (HOC) 93.45p -3.66%
Fisher (James) & Sons (FSJ) 1,238.00p -3.05%
NMC Health (NMC) 500.00p -2.82%
Countrywide (CWD) 451.20p -2.23%
FTSE TechMARK - Risers
Torotrak (TRK) 15.75p +10.53%
RM (RM.) 148.00p +5.71%
Puricore (PURI) 31.50p +3.28%
Vectura Group (VEC) 120.75p +2.99%
Promethean World (PRW) 28.38p +2.25%
XP Power Ltd. (DI) (XPP) 1,425.00p +2.15%
Kofax Limited (DI) (KFX) 392.50p +1.95%
Dialight (DIA) 856.00p +1.90%
Anite (AIE) 85.75p +1.48%
Innovation Group (TIG) 27.25p +0.93%
FTSE TechMARK - Fallers
Optos (OPTS) 205.75p -6.79%
Filtronic (FTC) 22.00p -3.30%
Gresham Computing (GHT) 62.50p -1.57%
Ricardo (RCDO) 625.50p -1.11%
Skyepharma (SKP) 336.25p -0.37% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks gain ahead of ECB policy decision Stocks in the euro-area gained as the European Central Bank's (ECB) policy decision drew nearer. The ECB on Thursday is expected to keep policy unchanged despite concerns over the Eurozone's weak economy and low inflation.
At its last meeting, the ECB unveiled the details of its plans to buy asset backed securities and covered bonds, aimed at boosting the region's economy.
The ECB has this year cut interest rates to an all-time low of 0.05% and taken the deposit facility rate into negative territory.
While the ECB has made a number of major policy changes, including cutting interest rates to an all-time low and launching asset purchase programmes, some analysts have criticised the central bank for not doing enough. It has been suggested that full-on quantitative easing may be needed to turn the economy around.
ECB president Mario Draghi also faces a small uprising within the ranks of the council, with some central bank governors among the 24 members unhappy with his "secretive management style and erratic communication" according to Reuters.
"The ECB probably won't announce new policy easing measures at this week's Governing Council policy meeting on Thursday, 6 November but may give more insight into its new asset purchase programmes," Barclays Research said.
"We retain the view that the ECB will also announce government bond purchases by early next year to ensure additional, substantial monetary stimulus and expansion of its balance sheet."
Adding to concerns about the economy a day ahead of the meeting was weaker-than-expected Eurozone data.
Markit's purchasing managers' index (PMI) for the Eurozone service sector was revised lower to 52.3 in October, from the preliminary estimate of 52.4, surprising analysts who had expected it to remain unchanged. A reading above 50 signals expansion.
Eurozone retail sales rose by 0.6% year-on-year in September, following a 1.9% gain the previous month. Economists had estimated a 1.4% increase.
In the UK, the Markit/CIPS PMI for services fell to 56.2 in October from 58.7 a month earlier, more than the 58.5 predicted by analysts.
The UK composite, which includes services and manufacturing activity, dropped to 55.8 in October from 57.4 in September, compared to expectations for a reading of 57.
In the US, ISM's non-manufacturing index fell to 57.1 in October from 58.6 the previous month, missing the 58 estimate.
ADP's report showed US employers added 230,000 jobs in October, compared to 213,000 in September. Analysts had pencilled in 220,000 jobs.
The private report comes before Friday's all-important non-farm payrolls data.
Natixis, M&S
Natixis climbed after reporting an increase in third quarter net income that was better than expected.
Marks & Spencer edged higher after posting first half profit that surpassed market forecasts.
ING Groep NV rallied after the largest Dutch lender said it will make the final repayment of state aid on Friday, ending a six-year bailout.
Banca Monte dei Paschi di Siena SpA gained following reports the Italian lender is close to securing underwriters for a share sale to raise as much as €2.5bn.
Endesa SA slumped after Enel SpA said it will sell a 17% stake in the Spanish utility.
Lafarge SA advanced after saying it will slow asset sales in the fourth quarter.
Hannover Re jumped as the reinsurer posted a rise in third-quarter profit that beat analysts' estimates.
The euro fell 0.41% to $1.2494. |
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| | US Market Report | | US open: Stocks advance as Republicans take control of the Senate US stocks opened higher on Wednesday in the wake of the US mid-term elections, while the dollar strengthened. Just before 10:00 in New York, the Dow Jones Industrial Average was 75.13 points up at 17,458.970, while the S&P 500 advanced 7.23 points to 2,019.330 and the Nasdaq was 12.74 points down at 4,168.971.
Republicans won control of the Senate in the US mid-term elections on Tuesday, strengthening their power in the House of Representatives.
The Tea Party now controls both chambers of Congress for the first time since 2006, something which investors hope spell the end political gridlock and the introduction of more pro-business policies.
The result is likely to put President Barack Obama in a difficult position during his two final years of his term, but "the markets don't appear at all concerned about this", Craig Erlam, analyst at Alpari UK, said.
"In the past, this outcome has been good for the markets and therefore the result is being well received once again."
Meanwhile, private-sector hiring rose to a four-month high in October, with payrolls rising by 230,000 after an upwardly-revised 225,000 gain in September. Analysts had pencilled in a figure closer to 220,000.
"The frequent and large revisions to the ADP employment report limit its usefulness in forecasting," Barclays analyst Jesse Hurwitz said.
"However, we view the October report as largely consistent with our outlook for non-farm payroll gains of 225k in Friday's employment report from the Labor Department."
The ISM non-manufacturing index will also be in focus after the opening bell and is expected to fall to 58 in October from 58.6 the month before. This follows data earlier on Wednesday which showed that service-sector activity growth eased across China, the Eurozone and UK last month.
Time Warner rose in pre-market trade after beating analysts' forecasts with its quarterly results. The media group also lifted its profit guidance, predicting percentage growth in the high teens from $3.51 a share last year. It had previously guided to a low-teens rise.
EOG Resources jumped after the oil and gas firm exceeded earnings and revenue forecasts and lifted its full-year production outlook, while Mondelez International rose sharply after the packaged-food producer beat estimates for third quarter earnings.
Tripadvisor sank after disappointing third quarter results, while Fireeye plummeted after missing sales forecasts for the third quarter.
The dollar rose sharply against the yen and registered smaller gains against the pound and the euro, while gold futures slid back to $1,143.90.
The yield on the 10-Year US Treasury note rose three basis points to 2.36%, while the yield on the 30-year note advanced two basis points to 3.07% and the five-year Treasuries climbed by the same margin to 1.64%. |
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| | Broker Tips | | Broker tips: M&S, AB Foods, Rolls-Royce, Centamin Marks & Spencer's shares surged on Wednesday after the retailer impressed with a surprise increase in first-half profits, and while the market welcomed the bottom-line beat analysts raised concerns with a continued underperformance in clothing sales. Analysts at Numis Securities maintained a 'hold' recommendation, saying that full-year consensus forecasts are unlikely to change in spite of the first-half beat. "We expect the challenging trading conditions and M&S' ongoing LFL underperformance in GM will result in full-year PBT forecasts settling around £650m, slightly light of the current consensus (£655m)."
Citigroup has trimmed its profit forecasts for Associated British Foods due to an ongoing weak sugar performance, but has lifted its stance on the stock from 'neutral' to 'buy' on prospects for its fast-growing retail chain Primark.
"Primark's international expansion programme remains very successful, a theme we expect to continue for many years to come."
Panmure Gordon has downgraded Rolls-Royce from 'hold' to 'sell' after the engine maker announced plans on Tuesday to accelerate its cost-cutting programme with 2,600 job cuts over the next 18 months.
"For us, this was just another profit warning, issued only a few days after the previous warning," said Panmure analyst Sanjay Jha. "More importantly, it suggests that far from being 'well positioned in growth markets' the management is now dealing with a group in decline, despite record order books, and is struggling to stay on top of events," he said. | | |
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