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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: Miners lead shares higher on gold price rise Miners and oil stocks led the London market modestly higher on Friday as gold and oil prices jumped on a weaker dollar and German trade data improved. Silver miner Fresnillo gleamed 34.5p to 734p and Randgold Resources glittered 58p to 4132p as gold prices rose about 2% and a barrel of US crude bounced back towards the $80 mark on weaker US data.
BHP Billiton lifted 48p to 1676p, Anglo American gained 35.5p to 1364.5p and Rio Tinto climbed 71.5p to 3039p.
Oil services group Petrofac was the oil industry's highest riser with a 30p increase to 1118p while Royal Dutch Shell B gushed 55p to 2326p and BP added 5.4p at 441.3p.
The FTSE 100 Index closed 16.09 points to the good at 6567.24.
In economic news, September German trade data improved with an increase in Berlin's current account balance to €22.3bn compared with €10.3bn in August.
Exports grew 5.5% compared with a -5.8% fall last month as imports rose 5.4% compared with a -1.3% drop in August.
But UK trade figures provided further evidence that the fragile economic recovery is stalling. The UK's seasonally adjusted deficit on trade in goods and services was estimated to have been £2.8bn in September 2014, compared with £1.8bn in August 2014, according to the Office for National Statistics (ONS). Analysts had expected a shortfall of -£2.3bn.
Back on the corporate front, insurers were in the doldrums after Admiral blamed a competitive market for an expected fall in profits at price comparison website Confused.com in the second half versus the first six months of the year.
Admiral led the fallers lower with a 44p drop to 1215p and RSA Insurance was close behind with a 13.9p dip to 446.2p.
Airlines and travel stocks flew lower as oil prices rose, with BA and Iberia owner IAG descending 11.4p to 402.6p and Easyjet off 18p at 1535p.
House-builders and property groups were lower after a couple of firms in the sector said the autumn pick-up after the summer break was slower than last year. Persimmon fell 27p to 1410p, British Land subsided 10.5p to 727.5p and Land Securities slipped 17p to 1104p |
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| | Market Movers
techMARK 2,784.34 -0.39%
FTSE 100 6,567.24 +0.25%
FTSE 250 15,464.53 -0.33%
FTSE 100 - Risers
Fresnillo (FRES) 734.00p +4.93%
BHP Billiton (BLT) 1,676.00p +2.95%
IMI (IMI) 1,227.00p +2.85%
Petrofac Ltd. (PFC) 1,118.00p +2.76%
Anglo American (AAL) 1,364.50p +2.67%
Intertek Group (ITRK) 2,757.00p +2.61%
Capita (CPI) 1,103.00p +2.51%
Royal Dutch Shell 'B' (RDSB) 2,326.00p +2.42%
Rio Tinto (RIO) 3,039.00p +2.41%
Royal Dutch Shell 'A' (RDSA) 2,230.50p +2.39%
FTSE 100 - Fallers
Admiral Group (ADM) 1,215.00p -3.49%
RSA Insurance Group (RSA) 446.20p -3.02%
International Consolidated Airlines Group SA (CDI) (IAG) 402.60p -2.75%
Morrison (Wm) Supermarkets (MRW) 168.40p -2.38%
Coca-Cola HBC AG (CDI) (CCH) 1,360.00p -2.37%
Direct Line Insurance Group (DLG) 271.20p -2.09%
ARM Holdings (ARM) 871.50p -2.08%
Persimmon (PSN) 1,410.00p -1.88%
Land Securities Group (LAND) 1,104.00p -1.52%
Royal Bank of Scotland Group (RBS) 374.90p -1.52%
FTSE 250 - Risers
Afren (AFR) 82.10p +12.70%
Stock Spirits Group (STCK) 247.50p +10.00%
Supergroup (SGP) 882.00p +7.69%
Lonmin (LMI) 187.40p +7.64%
Ted Baker (TED) 2,090.00p +7.12%
Spire Healthcare Group (SPI) 317.50p +6.08%
Zoopla Property Group (WI) (ZPLA) 206.70p +5.19%
Hochschild Mining (HOC) 98.95p +4.99%
Croda International (CRDA) 2,360.00p +4.61%
Infinis Energy (INFI) 225.10p +4.16%
FTSE 250 - Fallers
Rentokil Initial (RTO) 116.00p -5.00%
Interserve (IRV) 607.50p -3.88%
Moneysupermarket.com Group (MONY) 196.20p -3.25%
Jardine Lloyd Thompson Group (JLT) 840.50p -3.22%
Galliford Try (GFRD) 1,177.00p -3.21%
Fisher (James) & Sons (FSJ) 1,201.00p -3.15%
esure Group (ESUR) 208.40p -3.07%
Taylor Wimpey (TW.) 113.40p -2.99%
Computacenter (CCC) 604.00p -2.97%
Bovis Homes Group (BVS) 819.50p -2.85%
FTSE TechMARK - Risers
Filtronic (FTC) 23.00p +5.75%
BATM Advanced Communications Ltd. (BVC) 16.00p +4.07%
RM (RM.) 145.88p +2.01%
XP Power Ltd. (DI) (XPP) 1,422.00p +1.21%
Vectura Group (VEC) 123.75p +1.02%
Oxford Biomedica (OXB) 4.01p +0.38%
Anite (AIE) 85.50p +0.29%
IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 196.55 +0.05%
FTSE TechMARK - Fallers
Consort Medical (CSRT) 731.00p -2.47%
Torotrak (TRK) 15.62p -1.57%
Skyepharma (SKP) 328.75p -1.57%
Puricore (PURI) 31.50p -1.56%
SDL (SDL) 390.50p -1.14%
Optos (OPTS) 207.00p -0.96%
Promethean World (PRW) 26.75p -0.93%
NCC Group (NCC) 195.25p -0.89%
Dialight (DIA) 845.00p -0.82%
KCOM Group (KCOM) 92.50p -0.80% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks decline after worse-than-forecast US jobs data European stocks were mostly lower after a worse-than-expected US non-farm payrolls report. The Labor Department's report showed US employers added 214,000 jobs in October, less than the 235,000 forecast, after adding 257,000 a month earlier.
The unemployment rate, however, unexpectedly dropped to 5.8% last month from 5.9% in September.
Federal Reserve policymakers have been keeping a close watch on the labour market to consider when to raise interest rates.
"Coming in below expectations but nevertheless a strong figure, this pushes the unemployment rate down to 5.8%, the lowest since September 2008 when the financial crisis struck," Cebr economist Alasdair Cavalla said.
In the Eurozone, a report showed German industrial production fell 0.1% in September after falling 1.9% in August, less than the 0.6% drop predicted by analysts.
The German trade surplus widened to €21.9bn in September from €14bn the previous month, beating expectations for €19bn. It was supported by a better-than-estimated 5.5% increase in exports.
The UK trade deficit widened to £2.8bn from £1.77bn, more than the £2.3bn predicted by analysts.
ECB suspends LTRO repayments
The European Central Bank (ECB) said it has suspended early repayments of its three-year long-term refinancing operation (LTRO), which comes a day after the central bank announced it would keep the policy unchanged.
The ECB said "the Governing Council of the European Central Bank (ECB) has decided to suspend repayments of the three-year longer-term refinancing operations (LTROs) during the year-end period, in view of the expected low interest and the concentration of other operations owing to public holidays".
Separately, ECB official Benoît Cœuré on Friday urged Eurozone governments to work more closely together to coordinate structural reforms.
"And those Euro area policy makers who still believe that they are accountable only to their national parliament, they have probably forgotten that they belong to a monetary union,"Cœuré told a conference in Paris.
Banks slide
A host of banks declined, led by National Bank of Greece SA, Piraeus Bank SA and Eurobank Ergasias SA.
Swiss Re AG rallied after posting an unexpected increase in third-quarter net income.
Skanska edged higher after third-quarter sales and profit surpassed analysts' estimates.
Vestas Wind Systems A/S jumped after the Danish maker of wind turbines raised its 2014 forecasts for sales, profitability, and free cash flow after better-than-expected third quarter results.
ArcelorMittal advanced after the world's largest steelmaker said posed an 11% increase in profit, which beat forecasts.
The euro rose 0.40% to $1.2425. |
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| | US Market Report | | US open: Markets fluctuate following October jobs report US stocks fluctuated on Friday, as data on non-farm payrolls reported a smaller than expected increase. Just before 10:00 in New York the Dow Jones Industrial Average was 38.34 points down at 17,512.64 the S&P 500 advanced 3. 69 points to 2,027.52, while the Nasdaq dropped 1.55 points to 4,162.53
US non-farm payrolls increased by a less-than-expected 214,000 in October, missing consensus estimate of 235,000 but the unemployment rated nudged down to 5.8%.
Estimates for September and August were both revised up by a combined 31,000.
About 256,000 jobs were added in September, up from the initial estimate of 248,000, while August's reading was revised up to 203,000 from 180,000.
The revisions mean that the US economy has now increased non-farm employment by 200,000 or more for nine consecutive months, a feat not achieved since 1994. The jobless rate unexpectedly fell from 5.9% in September, while the labour-force participation rate inched up to 62.8% from 62.7%.
Paul Answorth, chief economist at Capital Economics, said that new report suggests the Federal Reserve could hike the interest rates soon.
"The Fed doves could still cling to the news that, despite the decline in the unemployment rate, there is still no sign of a pick -up in average hourly earnings, which increased by a muted 0.1% month-on-month last month," he said.
"The immediate post-announcement rally in the Treasury market, presumably because the headline payroll figure missed slightly, looks badly misplaced to us. This is a strong report that suggests the first rate hike is coming soon. We expect the Fed to start tightening in March next year."
In corporate news, Zynga rose sharply in pre-market trade after the online gaming group reported a 12.8% fall in third-quarter revenue that was not as bad as the market had feared.
The firm, however, reported that monthly active users totalled just 112m during the quarter, down from 133m the year before and 331m the year before that.
King Digital Entertainment, famous for its 'Candy Crush' game, soared ahead of the bell after announcing a share repurchase programme and beating third-quarter forecasts.
Salix Pharmaceuticals shares plunged more than 35% in the premarket after the drug and medical-device maker missed profit and revenue estimates, while Capstone Turbine Corp. saw its stock sink 16% in the premarket after reporting a fiscal second-quarter loss of $6.5 million on Friday.
The dollar advanced slightly against the pound but fell against the yen and the euro, while gold futures advanced to $1,148.80.
The yield on the 10-year US Treasury note fell three basis points to 2.36%, while the tield on the 30-year note shed two basis points to 3.02% and the five-year treasuries slid by three basis points to 1.64%. |
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| | Broker Tips | | Broker tips: Croda, Experian, Tullett Prebon Specialty chemicals manufacturer Croda has multiple positive features, yet even after the recent share-price underperformance those are more than fully reflected in the share price, Canadian broker Canaccord Genuity said in a research report sent to clients. Additionally, it expects the firm's future growth rates to disappoint, with negative implications for the stock price.
What are those features? A sound product offering, technologies and market positioning, said analyst Paul Satchell.
In particular, Satchell pointed out the "surprisingly high" negative impact from foreign exchange translation, which at -7.3% shaved 3.3% from the top-line.
Even so, he admitted the "directionally confident" outlook from the company, although he added that the outlook was"vague".
Canaccord thus maintained its 'sell' recommendation and 1,950p target on the shares.
Nevertheless, the stock was up 4.6% at 2,359p by 11:04 on Friday.
Despite the improved market conditions seen over the last few months and the fact that the 14% decline in revenues year-to-date was in line with its forecasts, broker Peel Hunt believes that a higher rating for inter-dealer broker Tullett Prebon is not justified.
True, trading on December 2015 price-to-earnings multiple of 9.3, falling to 8.2 next year, the stock does not look expensive, the broker concedes. Then there is the dividend yield of close to 6% which offers support.
However, the prevailing environment suggests the dividend is unlikely to grow significantly.
As well, without another material decline in revenues there is limited scope for further cost reductions unless management is willing to risk starting to damage the business.
More significantly, there remains the core problem of a lack of visibility on the trading outlook.
Hence, "in the short-term there is little to suggest that a higher multiple is appropriate", analyst Stuart Duncan wrote in a research report e-mailed to clients.
In reaction to all of the above Peel Hunt reiterated its 'hold' recommendation and 255p target on the shares.
Shares in Experian were continuing to rise on Friday, a day after the credit-checking firm's well-received first-half results, after Canaccord Genuity upgraded its rating for the stock from 'sell' to 'hold'.
Experian said on Thursday that revenues were flat on a continuing organic basis in the first half, though currency movements and acquisitions contributed to reported sales growth of 5%. Margins, however, fell 40 basis points to 26.2%.
Canaccord said that while the group's operating performance was "disappointing" during the first half, it was "compensated by a better than expected interest and tax charge".
Meanwhile, Experian reduced its guidance for the full year, predicting only subdued growth in the third quarter before an improvement in the fourth. At the first-quarter stage, the company had anticipated a return to "more normal growth".
Nevertheless, Canaccord said: "After a period of sustained relative and absolute under-performance we are moving our long-standing 'sell' recommendation up to 'hold'.
"We believe that there remains risk to forecasts, specifically in Latin America due to the weak Brazilian economy and US due to the changes in the consumer product line. However, the share price, following a series of earnings downgrades, has weakened to a point of fair value."
The broker has lifted its target from 858p to 928p, helping Experian's shares 3% higher to 1,029p on Friday, following a 6% surge the previous session. | | |
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