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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: UK markets pause at two-month high, but Petrofac plummets UK stocks opened broadly flat on Monday with markets pausing for breath after hitting a two-month high last week.
The FTSE 100 was trading down just 0.04% at 6,748 in early deals, with oilfield services group Petrofac providing a drag after a profit warning.
The index finished Friday at 6,750.76, a closing level not surpassed since 22 September when it reached 6,773.63.
Global equity markets jumped on Friday after a surprise interest-rate cut from the People's Bank of China in an attempt to avert a sharp slowdown in growth.
Chinese authorities are reportedly set to once again cut their interest rates amid widespread concerns over a drop in prices. According to an unnamed senior economist quoted by Reuters, the country's "top leaders have changed their views" and the central bank has now moved its focus towards broad-based stimulus.
Monday's session looks to be a quiet one in terms of economic data, with the German IFO survey being the only major release. The business climate index rose to 104.7 from 103.2 previously, surprising analysts who had expected a small fall. Both the current assessment and expectations indices also unexpectedly improved.
However, looking ahead to the rest of the week, "it looks like that there will be no sign of a breather for markets with a packed macro calendar to look forward to", according to analysts at Deutsche Bank.
There will be gross domestic product estimates in both the US and UK over the coming days, as well as inflation figures in the Eurozone and a host of data from Japan.
Investors will also be looking ahead to Thursday's meeting of the Organization of Petroleum Exporting Countries (OPEC), where members will face a tough decision over whether to cut output in the wake of a 30% slump in crude prices since June.
Friends Life leads financials higher, Petrofac plummets
Insurer Friends Life jumped 7.5% after agreeing to a £5.6bn takeover from larger rival Aviva after the market's closed on Friday. The deal is expected to create the UK's "leading insurance, savings and asset management business by number of customers", the companies said. Aviva's shares were trading firmly in the red.
Friends Life also announced on Monday that it would be suspending its £317m share buyback following the offer.
Others in the financial sector were also performing well, including banking peers RBS, Lloyds and Barclays. Shares in London Stock Exchange were making decent gains after analysts at Citigroup raised their rating on the stock to 'buy' and hiked their target from 1,750p to 2,400p.
Petrofac's share price dropped by nearly a quarter after the group scaled back its profit assumptions, saying that depressed oil prices and the timing of deliveries will result in a weaker bottom line. The company said net profits for 2014 will be at the lower end of the guided $580m-600m range, but would fall to just $500m in 2015. It had previously predicted "strong earnings growth" next year.
Anglo-Australian miner BHP Billiton was lower after saying it would implement more cuts to its capital expenditure as well as reorganise its management ranks. The group said it would trim $600m from its planned capital spending to $14.2bn in the 2014-15 financial year and by $1bn to $13bn in the following 12 months. |
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| | Market Movers
techMARK 2,890.38 -0.12%
FTSE 100 6,748.25 -0.04%
FTSE 250 15,678.81 -0.08%
FTSE 100 - Risers
Friends Life Group Limited (FLG) 373.90p +7.54%
London Stock Exchange Group (LSE) 2,166.00p +3.00%
Lloyds Banking Group (LLOY) 79.41p +1.17%
Ashtead Group (AHT) 1,063.00p +0.95%
Barclays (BARC) 238.50p +0.95%
Royal Bank of Scotland Group (RBS) 380.60p +0.77%
Old Mutual (OML) 202.90p +0.74%
Carnival (CCL) 2,636.00p +0.73%
BT Group (BT.A) 382.50p +0.66%
National Grid (NG.) 937.50p +0.64%
FTSE 100 - Fallers
Petrofac Ltd. (PFC) 902.50p -24.35%
Aviva (AV.) 519.00p -3.71%
Hargreaves Lansdown (HL.) 985.50p -2.62%
Fresnillo (FRES) 744.00p -2.55%
Anglo American (AAL) 1,350.50p -2.14%
Randgold Resources Ltd. (RRS) 4,405.00p -2.02%
Rio Tinto (RIO) 2,984.00p -1.91%
Royal Mail (RMG) 423.60p -1.63%
BHP Billiton (BLT) 1,636.00p -1.56%
Antofagasta (ANTO) 720.00p -1.44%
FTSE 250 - Risers
Cranswick (CWK) 1,405.00p +5.24%
Phoenix Group Holdings (DI) (PHNX) 789.50p +2.67%
PayPoint (PAY) 918.00p +2.57%
Hochschild Mining (HOC) 103.00p +2.08%
Fenner (FENR) 265.70p +2.07%
Diploma (DPLM) 698.50p +1.97%
Workspace Group (WKP) 682.50p +1.87%
Templeton Emerging Markets Inv Trust (TEM) 582.50p +1.75%
Spire Healthcare Group (SPI) 335.00p +1.36%
Petra Diamonds Ltd.(DI) (PDL) 193.60p +1.36%
FTSE 250 - Fallers
FirstGroup (FGP) 113.00p -5.68%
Ladbrokes (LAD) 116.40p -3.24%
Lonmin (LMI) 186.90p -3.16%
Betfair Group (BET) 1,309.00p -2.60%
EnQuest (ENQ) 68.60p -2.42%
Amec Foster Wheeler (AMFW) 1,075.00p -2.18%
Infinis Energy (INFI) 213.50p -2.06%
William Hill (WMH) 351.70p -2.01%
Hunting (HTG) 692.50p -1.84%
BBA Aviation (BBA) 335.80p -1.84% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks mostly higher on unexpected rise in German business confidence European stocks were higher after a report showed an unexpected rise in German business confidence.
The Ifo institute's business climate index on German business confidence, based on a survey of 7,000 executives, rose to 104.7 in November from 103.2 in the previous month. Analysts had expected a reading of 103.
The report comes amid concerns about the health of the Eurozone and its largest economy.
European Central Bank (ECB) officials Benoit Couere and Jens Weidmann are due to speak in morning trade in London and Madrid, respectively.
They may elaborate remarks made by ECB President Mario Draghi last week on the possibility of buying government bonds if inflation remains too low for too long.
In the US, Markit at 14:45 London time releases its purchasing managers' index for services activity, which is expected to show an increase in November.
The Dallas Fed manufacturing report for November is also due at 15:30 London time.
LSE and Deutsche Boerse rally
London Stock Exchange and Deutsche Boerse advanced after Citigroup recommended buying shares of the bourse operators.
Syngenta AG rallied after saying it will cut jobs as it targets savings of $1bn by 2018.
Friends Life Group gained after Aviva announced a £5.6bn offer to buy the company.
Raiffeisen Bank International AG jumped after ING Groep NV raised its stock rating to 'buy' from 'hold'.
The euro fell 0.08% to $1.2381. |
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| | US Market Report | | US close: Stocks rally amid positive news from Europe and China US stocks rallied on Friday, as oil and metal prices rose after a surprise rate cut from China's central bank.
The Dow Jones Industrial Average closed 91.06 points up at 17,810.06, while the S&P 500 ended the final session of the week 10.75 points up at 2,063.50 and the Nasdaq rose 9.23 points to 4,251.32.
China's central bank took the surprising decision to cut its one-year loan rate by 40 basis points and its one-year deposit rate by 25 basis points, adding it would allow more flexibility in deposit rates.
Over in Europe at a banking conference in Frankfurt, president of the European Central Bank (ECB) Mario Draghi said the bank will do what it "must to raise inflation and inflation expectations as fast as possible".
"We will continue to meet our responsibility - we will do what we must to raise inflation and inflation expectations as fast as possible, as our price stability mandate requires of us," Draghi said.
The comments were taken as a sign the ECB will step-up asset buying.
"There is clearly a step up in rhetoric from Draghi in signalling the ECB's willingness to take further monetary policy accommodation on the back of a 'challenging' disinflationary environment in the eurozone," said Gizem Kara, senior European economist at BNP Baripas.
"With the upcoming ECB staff growth and inflation projections likely to show significant downward revisions the central bank's credibility in achieving its mandate of price stability will be challenged further.
"This should pave the way for additional easing, via a broadening of asset purchases, possibly as early as the December policy meeting."
In corporate news, Foot Locker's profit and sales beat estimates but shares fell 4.30%, while sector peer Hibbett Sports rose 3.96% after raising its outlook.
Gap slid 4.19% after announcing late on Thursday its results missed Wall Street forecasts and the clothing firm also delivered a disappointing full-year outlook, while Splunk gained 3.06% after results topped analysts forecasts.
Wynn Resorts advanced 0.98% despite a Wall Street Journal report suggesting that the casino operator was being investigated by federal authorities over whether it broke money-laundering rules.
Allegheny Technologies gained 5.83%, while Freeport-McMoRan advanced 3.57% as materials companies were boosted by news from China.
Ross Stores jumped 7.32% after the retail chain forecast full-year earnings of as much as $4.32 a share, up from a maximum of $4.26 a share earlier, topping the average analyst projection of $4.25, while GameStop plunged 13.05% after lowering its forecast for earnings in 2015 to $3.55 a share, after previously estimating as much as $3.70 against analyst projections of $3.69.
The dollar fell against the yen but rose against the pound and gained over 1% against the euro, as the European currency showed signs of weakening after Draghi's comments.
Gold future rose to $1,200.10, while the prices of Brent crude and West Texas intermediate crude rose by about 1%, with the former trading at just over $80.50 a barrel and the latter trading at just over $76.50 a barrel.
The yield on the 10-year US Treasury note fell three basis points to 2.31%, while the yield on the 30-year note lost four basis points to 3.01% and the yield on the five-year Treasuries dropped two basis points to 1.62%.
S&P 500 - Risers
Ross Stores Inc. (ROST) $89.27 +7.28%
Autodesk Inc. (ADSK) $61.94 +6.04%
Allegheny Technologies Inc. (ATI) $35.39 +5.83%
Caterpillar Inc. (CAT) $106.45 +4.28%
St Jude Medical Inc. (STJ) $66.80 +3.94%
Tyco International Plc (TYC) $42.89 +3.82%
Freeport-McMoRan Inc (FCX) $29.59 +3.57%
Nabors Industries Ltd. (NBR) $16.91 +3.36%
Avon Products Inc. (AVP) $9.87 +3.35%
AbbVie Inc (ABBV) $67.36 +3.33%
S&P 500 - Fallers
GameStop Corp. (GME) $37.86 -13.70%
Gap Inc. (GPS) $38.46 -4.19%
Southwest Airlines Co. (LUV) $38.02 -2.19%
Netflix Inc. (NFLX) $360.28 -2.14%
Delta Airlines Inc. (DAL) $43.09 -1.98%
Expedia Inc. (EXPE) $84.69 -1.61%
Under Armour Inc. Class A (UA) $69.30 -1.58%
Keurig Green Mountain Inc (GMCR) $140.26 -1.57%
Hudson City Bancorp Inc. (HCBK) $9.63 -1.53%
L Brands Inc (LB) $78.87 -1.51%
Dow Jones I.A - Risers
Caterpillar Inc. (CAT) $106.45 +4.28%
United Technologies Corp. (UTX) $110.30 +1.36%
Chevron Corp. (CVX) $118.58 +1.08%
Exxon Mobil Corp. (XOM) $96.81 +1.03%
Visa Inc. (V) $254.22 +1.01%
E.I. du Pont de Nemours and Co. (DD) $72.15 +1.01%
Boeing Co. (BA) $132.78 +0.82%
Home Depot Inc. (HD) $98.28 +0.73%
Coca-Cola Co. (KO) $44.50 +0.56%
JP Morgan Chase & Co. (JPM) $60.45 +0.55%
Dow Jones I.A - Fallers
Microsoft Corp. (MSFT) $47.97 -1.51%
Intel Corp. (INTC) $35.60 -0.97%
Johnson & Johnson (JNJ) $107.86 -0.30%
American Express Co. (AXP) $90.39 -0.25%
Unitedhealth Group Inc. (UNH) $96.71 -0.14%
Goldman Sachs Group Inc. (GS) $189.59 -0.08%
Nasdaq 100 - Risers
Ross Stores Inc. (ROST) $89.27 +7.28%
Autodesk Inc. (ADSK) $61.94 +6.04%
Micron Technology Inc. (MU) $34.29 +3.25%
Vimpelcom Ltd Ads (VIP) $5.97 +2.93%
Baidu Inc. (BIDU) $245.21 +2.86%
Cognizant Technology Solutions Corp. (CTSH) $53.06 +2.51%
Starbucks Corp. (SBUX) $79.76 +1.99%
Dish Network Corp. (DISH) $73.64 +1.96%
CA Inc. (CA) $30.64 +1.79%
Liberty Global plc Series A (LBTYA) $46.87 +1.71%
Nasdaq 100 - Fallers
Tesla Motors Inc (TSLA) $242.78 -2.38%
Netflix Inc. (NFLX) $360.28 -2.14%
Expedia Inc. (EXPE) $84.69 -1.61%
Keurig Green Mountain Inc (GMCR) $140.26 -1.57%
Microsoft Corp. (MSFT) $47.97 -1.51%
Vertex Pharmaceuticals Inc. (VRTX) $111.37 -1.35%
Intel Corp. (INTC) $35.60 -0.97%
Seagate Technology Plc (STX) $64.94 -0.92%
Alexion Pharmaceuticals Inc. (ALXN) $190.83 -0.89% |
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| | Newspaper Round Up | | Monday newspaper round-up: Aviva, Iran, AIM An estimated 2,000 insurance jobs are likely to be axed as Aviva tries to placate scepticism about its bid for Friends Life. While some analysts hailed the £5.6bn deal announced on Friday evening as giving Aviva scope to push up its dividend, others were unimpressed, with one questioning whether it was much more than "a rights issue in disguise". Substantial and credible cost savings would be key to convincing investors to back Aviva's "doubling up" of a bet on the British market, and that would mean heavy job losses, they said. - The Times
The US and other world powers said it will be virtually impossible to reach a comprehensive deal to curb Iran's nuclear activities by the Monday night deadline, and they would favour extending the talks. US officials are arguing that preserving improved relations with Tehran is preferable to a breakdown in more than a year of direct negotiations and a potential escalation of tensions in an already-fractious Middle East. - The Wall Street Journal Europe
Bank of America Merrill Lynch is understood to be actively reviewing whether to remain a nominated adviser (nomad) on AIM, and a decision to withdraw is considered likely. If the American investment bank steps down it will mean that there are only three large "bulge bracket" banks left acting as nomads to companies on AIM. It would also mean that Bank of America would quit as nomad to Bowleven, a natural resources company and its last client on AIM. - The Times
The World Bank will invest heavily in clean energy and only fund coal projects in "circumstances of
extreme need" because climate change will undermine efforts to eliminate extreme poverty, says its president Jim Yong Kim. Talking ahead of a UN climate summit in Peru next month, Kim said he was alarmed by World Bank-commissioned research from the Potsdam Institute for Climate Impact Research in Germany, which said that as a result of past greenhouse gas emissions the world is condemned to unprecedented weather events. - The Guardian
The company behind Glasgow Housing Association (GHA) has become the first organisation of its kind to tap into the bond market in a move aimed at creating some 2,800 affordable homes across central Scotland. Wheatley Group, which also owns West Lothian Housing Partnership, today revealed it has raised £250m through its over-subscribed bond issue, and said the offer period had been closed early due to "high demand". - The Scotsman | | |
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