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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 open: Royal Mail, Intertek and pub stocks lead UK markets lower UK stocks pulled back from their highest level in nearly two months on Wednesday, as investors treaded cautiously ahead of the minutes of the latest Bank of England (BoE) and Federal Reserve meetings. The FTSE 100 was down 0.3% at 6,709.13 in early deals with heavy falls from blue chips Royal Mail and Intertek providing a drag. The index finished at 6,671.97 on Tuesday, its highest close since 22 September when it settled at 6,773.63.
The BoE will release the minutes of this month's Monetary Policy Committee meeting, at which policymakers voted in favour of keeping the Bank Rate unchanged at 0.5%. However, markets will be watching closely to see if there was still division among members over whether of not to hike rates.
Economist Simon Smith from FxPro said that given the dovish tone of the BoE's recent Inflation Report, in which it revised down its growth and inflation projections, "it would be surprising if two members were still voting for higher rates as has been the case since August of this year".
"A lot has changed since then, not only domestically but also in the global economy, which is why we would expect at least one member to come back into the majority view," he said.
Minutes from the Federal Open Market Committee (FOMC) will be in focus on Wednesday evening with investors largely expecting a more hawkish statement from policymakers.
Overnight, the Bank of Japan decided to stick with its current bond purchases after last month surprising with the announcement of an increase to 80trn yen per year, up from 60-70 previously.
Royal Mail, Intertek, pub groups
Shares in Royal Mail dropped sharply after the firm warned that its key parcels market remained challenging. Revenue in the six months to 28 September rose 2% to £4.5bn but underlying pre-tax profit dipped to £218m from £233m a year ago.
Product testing group Intertek also fell after warning that persistent weak conditions for its commodities and oil and gas customers in the third quarter will result in full-year revenues being lower than previously expected and margins unimproved on last year's.
Pub groups were suffering steep losses early on after MPs voted to scrap the so-called 'beer tie', which links landlords' rent and supplies to their parent pub companies. The boss of Enterprise Inns, whose shares tanked 13%, said the amendment to the bill would have "serious unintended consequences" on the industry, including job losses and pub closures. |
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| Market Movers
techMARK 2,864.83 +0.22%
FTSE 100 6,686.16 +0.21%
FTSE 250 15,701.70 +0.34%
FTSE 100 - Risers
Royal Mail (RMG) 478.10p +2.22%
Randgold Resources Ltd. (RRS) 4,413.00p +2.18%
Fresnillo (FRES) 751.00p +1.97%
Tullow Oil (TLW) 464.70p +1.31%
WPP (WPP) 1,292.00p +1.17%
Compass Group (CPG) 1,065.00p +1.04%
Morrison (Wm) Supermarkets (MRW) 183.30p +0.99%
Next (NXT) 6,680.00p +0.98%
Sports Direct International (SPD) 641.50p +0.94%
Friends Life Group Limited (FLG) 336.00p +0.90%
FTSE 100 - Fallers
Smiths Group (SMIN) 1,210.00p -1.94%
easyJet (EZJ) 1,515.00p -1.88%
Standard Chartered (STAN) 924.90p -1.22%
Vodafone Group (VOD) 227.55p -0.65%
Rio Tinto (RIO) 3,038.00p -0.65%
Anglo American (AAL) 1,364.00p -0.62%
International Consolidated Airlines Group SA (CDI) (IAG) 423.10p -0.59%
Aggreko (AGK) 1,572.00p -0.57%
ARM Holdings (ARM) 885.00p -0.56%
Glencore (GLEN) 329.95p -0.54%
FTSE 250 - Risers
Pace (PIC) 354.50p +6.84%
Balfour Beatty (BBY) 163.50p +4.94%
Intermediate Capital Group (ICP) 432.30p +3.54%
Synthomer (SYNT) 207.00p +2.99%
Saga (SAGA) 160.60p +2.88%
Hochschild Mining (HOC) 96.60p +2.77%
Laird (LRD) 308.30p +2.43%
Halma (HLMA) 648.50p +2.37%
JD Sports Fashion (JD.) 447.50p +2.33%
Centamin (DI) (CEY) 51.05p +2.10%
FTSE 250 - Fallers
Informa (INF) 477.80p -5.29%
Kaz Minerals (KAZ) 256.50p -4.61%
Nostrum Oil & Gas (NOG) 627.50p -3.46%
BBA Aviation (BBA) 344.10p -3.21%
EnQuest (ENQ) 64.35p -2.43%
Enterprise Inns (ETI) 124.00p -2.21%
Grafton Group Units (GFTU) 630.00p -1.33%
Homeserve (HSV) 335.80p -1.24%
Restaurant Group (RTN) 637.50p -1.09% |
| | UK Event Calendar | | Wednesday 19 November
INTERIMS
Big Yellow Group, HICL Infrastructure Company Ltd, ICAP, Royal Mail, Telecom Plus
INTERIM DIVIDEND PAYMENT DATE
Proven Planned Exit VCT
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Building Permits (US) (13:30)
Crude Oil Inventories (US) (15:30)
Current Account (EU) (09:00)
FOMC Interest Rate Minutes (US) (19:00)
Housing Starts (US) (13:30)
MBA Mortgage Applications (US) (12:00)
Q2
Big Yellow Group
Q3
Frutarom Industries Ltd GDR (Reg S)
GMS
Eredene Capital
FINALS
Avon Rubber, Optos
IMSS
Dialight, Exova Group , IFG Group
AGMS
Aeorema Communications, Base Resources Ltd , CSF Group, F&C UK Real Estate Investments Limited, JPMorgan Emerging Markets Inv Trust, Nyota Minerals Ltd., Ruffer Investment Company Ltd Red PTG Pref Shares, Sabien Technology Group, VietNam Holding Ltd
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Minutes (09:30) |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks little changed ahead of BoE meeting minutes European stocks were little changed as investors awaited the release of minutes from the Bank of England's (BoE) last monetary policy announcement. The minutes may shed further light on the BoE's decision on 6 November to keep its policy unchanged, including interest rates, as had been expected.
The market will be looking for signs as to when the central bank might raise its benchmark rate.
In Japan, the central bank voted 8 to 1 to maintain its policy target and maintained its cautious growth and inflation outlook.
The Bank of Japan will continue to increase its purchases of Japanese government bonds at an annual pace of about 80trn yen.
Following the BoJ's decision at its last meeting to increase bond purchases to 80trn yen from 60-70trn yen, the country has fallen into recession. It prompted Prime Minister Shinzo Abe to delay the next sales tax hike by 18 months to April 2017. The lower house of parliament has been dissolved as of 21 November and new elections have been called for December.
"It's a really rocky time for Japan at the moment and all of this more than likely explains the BoJ's decision to raise its bond purchases last month," said Alpari UK analyst Craig Erlam.
ICAP, BG
ICAP slid after the broker reported a 10% fall in first half pre-tax profit.
BG Group declined following reports the planned sale of its largest operations in the North Sea has been put on hold.
Gamesa Corporacion Tecnologica SA advanced after signing more wind contracts.
The euro rose 0.08% to $1.2546. |
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| | US Market Report | | US close: Stocks advance as S&P ends at record high US stocks advanced on Tuesday, as health companies rallied and the S&P 500 ended at record high, gaining for the ninth session in the last 10. The Dow Jones Industrial Average closed 40.07 points at up 17,687.82, while the S&P 500 gained 10.48 points to 2,051.80 and the Nasdaq ended the day 28.40 points up at 4,242.19.
US producer prices rose in October, largely thanks to a spike in an erratic category that measures profit margins for wholesalers and retailers.
The 0.2% month-on-month rise in producer prices and 0.4% month-on-month gain in prices were both larger than the consensus forecasts of -0.1% and +0.1 respectively and although headline producer price index (PPI) inflation fell to 1.5% from 1.6%, core PPI inflation rose from 1.6% to 1.8%.
"The question is whether this is temporary as wholesalers and retailers just haven't got round to cutting their prices yet, or whether they are hoping that the strength of demand will mean they don't need to," said Paul Dales, senior US economist at Capital Economics.
"Our feeling is that a lot of the widening will be reversed in the coming months, although the strength of demand will mean that a more gradual and modest widening in margins takes place over the next year."
A survey from ZEW showed improved German sentiment on the economy, while Japanese Prime Minister Shinzo Abe revealed plans to call a snap election and to delay a planned sales-tax hike by 18 months, after data showed Monday the country fell into a recession.
Health stocks advanced 1.5%, as Actavis and Medtronic rose 8.74% and 4.74% respectively, the former after agreeing to pay about $66bn for Allergan in the biggest pharmaceutical deal of the year.
Urban Outfitters fell 6.84% after announcing late on Monday that its earnings fell 33% during the three months to October, while Home Depot slid 2.09% after reaffirming guidance for 2014 and announcing earnings per share of $1.15 in the third quarter.
Dick's Sporting Goods retreated 0.86% after its profit dipped due to weakness in its gold and hunting segments, while Manchester United fell 0.92% despite posting lower revenues across all segments for its September quarter.
The 20-time English champions' revenue suffered as the club failed to qualify for the Champions League for the first time since the 1995-96 season.
The dollar rose against the pound and the yen but fell the euro, while gold futures advanced to $1,194.90.
The yield on the 10-year US Treasury note fell two basis points to 2.32%, while the yield on the 30-year note shed one basis point to 3.05% and the yield on the five-year treasuries dropped one basis point to 1.61%.
The prices of West Texas intermediate and Brent crude continued to fall, with both losing over a percentage point and closing the day at $74.3 and $78.4 a barrel respectively.
S&P 500 - Risers
Actavis plc (ACT) $269.60 +8.74%
Medtronic Inc. (MDT) $72.47 +4.74%
Perrigo Company plc (PRGO) $159.94 +4.32%
Covidien Plc (COV) $98.09 +3.68%
Fluor Corp. (FLR) $65.94 +3.66%
Tenet Healthcare Corp. (THC) $49.15 +3.56%
Electronic Arts Inc. (EA) $42.87 +3.55%
Newmont Mining Corp. (NEM) $19.90 +3.43%
Regeneron Pharmaceuticals Inc. (REGN) $413.22 +3.40%
Mosaic Company (MOS) $46.77 +3.31%
S&P 500 - Fallers
Urban Outfitters Inc. (URBN) $28.79 -6.62%
Baker Hughes Inc. (BHI) $63.55 -2.58%
Diamond Offshore Drilling Inc. (DO) $35.31 -2.38%
Peabody Energy Corp. (BTU) $11.26 -2.26%
Home Depot Inc. (HD) $95.98 -2.09%
Molson Coors Brewing Co. Class B (TAP) $76.33 -1.83%
Southwestern Energy Co. (SWN) $33.05 -1.67%
Staples Inc. (SPLS) $12.76 -1.62%
Tyco International Plc (TYC) $41.95 -1.53%
Microsoft Corp. (MSFT) $48.74 -1.46%
Dow Jones I.A - Risers
Unitedhealth Group Inc. (UNH) $98.19 +1.78%
Boeing Co. (BA) $130.66 +1.74%
General Electric Co. (GE) $27.01 +1.50%
Coca-Cola Co. (KO) $43.53 +1.42%
Intel Corp. (INTC) $34.71 +1.37%
United Technologies Corp. (UTX) $108.80 +1.33%
E.I. du Pont de Nemours and Co. (DD) $71.16 +0.98%
3M Co. (MMM) $160.15 +0.92%
Pfizer Inc. (PFE) $30.59 +0.89%
Merck & Co. Inc. (MRK) $59.89 +0.72%
Dow Jones I.A - Fallers
Home Depot Inc. (HD) $95.98 -2.09%
Microsoft Corp. (MSFT) $48.74 -1.46%
International Business Machines Corp. (IBM) $161.89 -1.38%
AT&T Inc. (T) $35.72 -0.36%
Verizon Communications Inc. (VZ) $51.22 -0.35%
Exxon Mobil Corp. (XOM) $94.87 -0.25%
Chevron Corp. (CVX) $115.47 -0.24%
Goldman Sachs Group Inc. (GS) $189.64 -0.15%
Walt Disney Co. (DIS) $90.28 -0.14%
Visa Inc. (V) $249.73 -0.03%
Nasdaq 100 - Risers
Dish Network Corp. (DISH) $67.85 +3.94%
Illumina Inc. (ILMN) $190.01 +3.88%
Regeneron Pharmaceuticals Inc. (REGN) $413.22 +3.40%
Avago Technologies Ltd. (AVGO) $91.41 +3.26%
Gilead Sciences Inc. (GILD) $103.71 +3.26%
Alexion Pharmaceuticals Inc. (ALXN) $192.37 +2.99%
Sandisk Corp. (SNDK) $99.83 +2.78%
Altera Corp. (ALTR) $36.18 +2.65%
Discovery Communications Inc. Class A (DISCA) $33.36 +2.55%
TripAdvisor Inc. (TRIP) $70.21 +2.45%
Nasdaq 100 - Fallers
Staples Inc. (SPLS) $12.76 -1.62%
Microsoft Corp. (MSFT) $48.74 -1.46%
Yahoo! Inc. (YHOO) $51.75 -1.18%
Vodafone Group Plc ADS (VOD) $35.55 -1.14%
Citrix Systems Inc. (CTXS) $65.06 -1.03%
NetApp Inc. (NTAP) $41.89 -0.81%
Verisk Analytics Inc. (VRSK) $62.69 -0.62%
Baidu Inc. (BIDU) $242.70 -0.59%
Cognizant Technology Solutions Corp. (CTSH) $52.75 -0.58% |
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| | Wednesday newspaper round-up: Eurozone, Beer tie, Quindell... | | According to The Telegraph, credit ratings agency S&P reckons that the risk of a triple-dip recession in the Eurozone has increased. "The ECB has one last arrow and that is quantitative easing of €1trn," it said, warning that the plan is likely to fail without full-blown bond purchases. MPs have voted to scrap the beer tie that has existed for hundreds of years, loosening control of pub companies over landlords, The Times has said. The reform allows 15,000 British pubs to ask for an independently assessed market rent and allows them to buy beer on the open market instead of being tied to one company. Pub companies claim the decision could lead to 7,000 job losses and cause nearly 1,500 pubs to close, while others insist it could make it easier for them to stay in business. The London Stock Exchange is starting an investigation into Monday's 19% fall in the share price of insurance outsourcer Quindell, The Telegraph has reported. "The probe comes as it emerged that Quindell founder and former chairman Rob Terry is sitting on £5.9m in cash from a complex share deal which has unnerved investors," the paper said. Goldman Sachs has ousted a currency trader who was allegedly involved in foreign exchange manipulation, the Wall Street Journal says. The bank, which was not punished by UK and US legislators last week in the wake of an investigation into currencies-rigging practices, asked Frank Cahill to leave his post. Cahill, who joined the lender in 2012 as a currencies trader after working at Barclays and HSBC, was among the unidentified HSBC traders whose online conversations were quoted by the UK's Financial Conduct Authority and the US Commodity Futures Trading Commission as part of their settlements with the British bank last week. The chief executive of supermarket chain B&M has said the discount retailer is “genuinely disruptive” to the retail industry, The Telegraph reported. Sir Terry Leahy, the former Tesco boss currently chairing B&M, revealed the company plans to more than double in size in the UK at a time when the big supermarket chains and traditional retailers struggle. “Half the UK does not have a B&M in convenient access. We will become a national retailer not a regional retailer,” said the group chief executive, Simon Arora. Fifa has asked Swiss authorities to investigate the awarding of hosting rights for the 2018 ad 2022 World Cup tournaments, writes The Independent. The paper says the investigation will centre on "circumstances surrounding the bidding processes", which resulted in the tournaments being given to Russia and Qatar. The Scottish Retail Consortium and KPMG have revealed that total Scottish retail sales declined at an annual rate of 1.2% in October on the back of falling food sales, The Scotsman writes. | | |
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