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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 stocks rise ahead of GDP data, but Thomas Cook sinks UK stocks advanced on Wednesday as investors adopted an optimistic approach ahead of gross domestic product (GDP) figures in the UK. London's FTSE 100 was up 0.4% at 6,755 in early deals, with mining stocks leading the charge after recent weakness, though results from blue chips Wolseley, Compass and United Utilities disappointed.
Meanwhile, Thomas Cook was a big mover on the FTSE 250 in morning trade, with shares losing a fifth of their value after the surprise departure of the travel group's boss.
UK GDP grew by 3% in the third quarter, the Office for National Statistics is expected to confirm on Wednesday morning. Quarter-on-quarter growth is also forecast to be unchanged from the initial 0.7% reading.
GDP figures from the States on Tuesday showed that growth was revised to 3.9% for the third quarter from the initial estimate of 3.5%, surprising analysts who had expected a downwards revision to 3.3%.
"Just like yesterday's US number, [the UK GDP data] is a second revision and thus there is a possibility that it simply confirms the 0.7% figure revealed last month," said analyst Joshua Mahony from Alpari. "However, taking a look at the spike we did see in the US number, there is a potential for significant revisions, causing market moves and thus for this reason, it is well worth watching out for this data point."
A report on US durable goods orders in October will also be in focus on Wednesday afternoon. Analysts predict a 0.6% fall after a 1.1% drop in September.
US jobless claims will also be on tap, one day earlier than usual due to the Thanksgiving holiday on Thursday. Claims are predicted to have fallen 3,000 to 288,000 in the week ended 22 November.
Thomas Cook CEO departs
Shares in Thomas Cook sank 20% early on as it announced that chief executive Harriet Green stepped down after just over two years in charge of the troubled travel group. Green, who is due to be replaced by chief operating officer Peter Fankhauser with immediate effect, claimed her turnaround "was complete" as annual results showed improving profits from all divisions.
Mining stocks were performing well after two days of declines as stocks pulled back after a China-inspired rally last week. Antofagasta, Randgold Resouces, BHP Billiton and Rio Tinto were putting in decent gains.
Weak market conditions throughout Europe put gross margins under pressure in the first quarter at Wolseley, causing shares in the plumbing and heating products distributor to fall.
Catering group Compass underwhelmed with its annual results, as it lifted its annual dividend by 10% after an improvement in both sales and profits in the year to 30 September.
Also lower was United Utilites despite half-year results showing modest improvements in revenues and profits. The water company expressed confidence about the forthcoming new regulatory pricing structure after submitting a plan for lower prices. |
| | Market Movers
techMARK 2,917.44 +0.25%
FTSE 100 6,755.15 +0.36%
FTSE 250 15,827.77 -0.02%
FTSE 100 - Risers
Antofagasta (ANTO) 750.00p +2.25%
Sky (SKY) 936.00p +1.96%
Rolls-Royce Holdings (RR.) 876.50p +1.80%
SSE (SSE) 1,604.00p +1.52%
Marks & Spencer Group (MKS) 487.80p +1.43%
Randgold Resources Ltd. (RRS) 4,491.00p +1.42%
BHP Billiton (BLT) 1,616.00p +1.41%
Vodafone Group (VOD) 226.85p +1.02%
BT Group (BT.A) 399.80p +1.01%
Anglo American (AAL) 1,342.00p +0.94%
FTSE 100 - Fallers
TUI Travel (TT.) 420.90p -1.31%
United Utilities Group (UU.) 906.50p -0.87%
Persimmon (PSN) 1,500.00p -0.60%
Smith & Nephew (SN.) 1,117.00p -0.53%
easyJet (EZJ) 1,552.00p -0.51%
ARM Holdings (ARM) 895.50p -0.50%
Compass Group (CPG) 1,069.00p -0.47%
Aberdeen Asset Management (ADN) 455.60p -0.46%
Royal Mail (RMG) 424.80p -0.42%
Wolseley (WOS) 3,550.00p -0.39%
FTSE 250 - Risers
PayPoint (PAY) 979.00p +5.78%
Balfour Beatty (BBY) 183.30p +3.68%
Nostrum Oil & Gas (NOG) 651.00p +3.09%
Kaz Minerals (KAZ) 254.60p +2.83%
Daejan Holdings (DJAN) 5,100.00p +2.41%
Zoopla Property Group (WI) (ZPLA) 182.80p +2.35%
Fidelity China Special Situations (FCSS) 131.50p +2.10%
De La Rue (DLAR) 565.00p +2.08%
Synthomer (SYNT) 227.00p +2.02%
IP Group (IPO) 209.80p +1.89%
FTSE 250 - Fallers
Thomas Cook Group (TCG) 111.70p -19.00%
QinetiQ Group (QQ.) 198.60p -3.64%
Rightmove (RMV) 2,176.00p -2.99%
Infinis Energy (INFI) 223.00p -2.96%
Evraz (EVR) 158.00p -2.83%
Foxtons Group (FOXT) 152.40p -2.62%
Afren (AFR) 65.60p -2.31%
Bwin.party Digital Entertainment (BPTY) 104.60p -2.24%
Britvic (BVIC) 683.50p -1.87% |
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INTERIMS
600 Group, Findel, First Property Group, Hogg Robinson Group, IGas Energy, LondonMetric Property, Omega Diagnostics Group, Patisserie Holdings , Private & Commercial Finance Group, Telford Homes, United Utilities Group
INTERIM DIVIDEND PAYMENT DATE
Hunting
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (GER) (07:00)
Continuing Claims (US) (13:30)
Crude Oil Inventories (US) (15:30)
Durable Goods Orders (US) (13:30)
Initial Jobless Claims (US) (13:30)
MBA Mortgage Applications (US) (12:00)
New Homes Sales (US) (13:30)
Pending Homes Sales (US) (15:00)
Personal Consumption Expenditures (US) (13:30)
Personal Income (US) (13:30)
Personal Spending (US) (13:30)
U. of Michigan Confidence (Final) (US) (14:55)
GMS
African Barrick Gold , Draganfly Investments Ltd., Gleeson (M J) Group, Regenersis, ReThink Group, UBM
FINALS
Britvic, Compass Group, Daily Mail and General Trust A (Non.V), Thomas Cook Group
ANNUAL REPORT
Webis Holdings
IMSS
Wolseley
AGMS
Baillie Gifford Japan Trust, Finsbury Food Group, Firestone Diamonds, Forte Energy NL, International Ferro Metals Group, K3 Business Technology Group, Pure Wafer, Regenersis, Victoria Oil & Gas
TRADING ANNOUNCEMENTS
Matomy Media Group Limited (DI)
UK ECONOMIC ANNOUNCEMENTS
CBI Distributive Trades Surveys (11:00)
Index of Services (09:30)
FINAL DIVIDEND PAYMENT DATE
AIREA, JPMorgan Emerging Markets Inv Trust |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rally ahead of UK GDP, US durable goods orders European stocks gained ahead of reports on UK economic growth and US durable goods orders. UK gross domestic product is forecast to have grown by an annualised 3% in the third quarter, the Office for National Statistics is expected to confirm.
Ahead of the release, a Bank of England Governor Mark Carney on Tuesday had said the prolonged slowdown in the Eurozone posed the biggest threat to the UK economy.
Joshua Mahoney, research analyst at Alpari UK, said: "The impact of the ongoing (and seemingly never-ending) downturn in the Eurozone is of course greatly impacting the UK who sees the single currency region as its main trade partner.
"Also, the impact of Russian sanctions will hit the UK more so than the UK simply due to the size of flows between the two countries. However, one thing that many seem to be ignoring the impact that falling energy prices will have upon both businesses and consumers alike."
In the US, a report on durable goods orders is forecast to show a 0.6% fall in October following a 1.1% drop in September.
Separately, initial jobless claims are forecast to rise 288,000 in the week to 22 November after 291,000 the previous week.
The University of Michigan's consumer confidence index is projected to increase to 90 from 89.4.
Elsewhere in the US will be the release of data on personal spending and new home sales.
Miners rally
A gauge of commodity producers were the biggest risers of the 19 industry groups on the Stoxx 600, led by Antofagasta and Randgold Resources.
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 0.01% to $1.2475. |
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| | US Market Report | | US close: Oil slides to four-year low, mixed data weighs The main US equity gauges ended the session on a mixed footing as a drop in oil futures pulled the rug out from under the sector's quoted companies. Traders continued to be on edge given the possibility that OPEC, the cartel of oil producing nations, might not decide on a reduction of its production levels when it meets on 27 November. That could see further sharp losses ensue in world oil prices.
Analysts such as those at Morgan Stanley do however believe that some sort of action, even if only to slow the drop in prices, is the most likely outcome of the summit. As always, the key player, Saudi Arabia, is playing its cards close to its chest.
The run-up to Thanksgiving often seems subdued trading conditions, given the absence of many market operators.
Nonetheless, analysts seemed to strike a somewhat sombre note following the release of several weaker than expected reports on the state of the economy.
Mixed economic data
According to figures released by the Commerce Department gross domestic product (GDP) rose by an annualised 3.9% in the three months to the end of September, revised up from the initial estimate of 3.5%. GDP has now grown by an average of 4.2% in the last six months, the strongest two-quarter stretch since the middle of 2003.
However, the conference board's consumer confidence index for November surprised to the downside, printing at 88.7 for November, after the prior month's 94.1 (consensus: 97).
The FHFA's house price index was flat on the month to September (consensus: 0.3%).
"Business expectations about the year ahead are running at the lowest seen since 2009. Hiring and investment intentions have also slipped to post-recession lows as US companies worry in particular about the global economic climate," said Chris Williamson, chief economist at Markit.
"With central banks in the Eurozone and Japan taking further action to boost economic growth, worries about the global economic outlook are perhaps overly gloomy."
Oil stocks drag
From a sector standpoint oil related stocks were easily the underdog in Tuesday's session, surrendering 2.58% after a group of key oil producing countries and Russia's state-owned oil firm failed to reach an agreement ahead of Thursday's OPEC summit in Vienna.
Much commented, at one point in the session Apple's market capitalisation surpassed the $700bn mark.
Tiffany & Co rose despite missing third-quarter profit estimates.
Shares in Signet Jewelers gained after the company reported third-quarter earnings that beat analysts' estimates, as did those of Nuance Communications after the maker of speech-recognition software reported fourth-quarter earnings that charged ahead of market forecasts.
Crude nears four-year lows
The dollar fell against the pound, the euro and the yen, while gold futures advanced slightly to $1.196.90.
The yield on the 10-year US Treasury note fell five basis points to 2.26%, while the yield on the 30-year note was off by six basis points to 2.96% and the yield on the five-year Treasuries declined three basis points to 1.57%.
West Texas Intermediate crude futures plumbed near four-year lows, dropping 2.6% to trade at $73.82 by the 'closing bell'.
S&P 500 - Risers
Pall Corp. (PLL) $98.00 +3.50%
Comcast Corp. (CMCSA) $56.62 +2.92%
Newmont Mining Corp. (NEM) $19.71 +2.82%
Becton, Dickinson & Company (BDX) $134.73 +2.76%
United Technologies Corp. (UTX) $111.71 +2.68%
United States Steel Corp. (X) $35.84 +2.66%
Pitney Bowes Inc. (PBI) $25.28 +2.64%
Tiffany & Co. (TIF) $107.60 +2.47%
Time Warner Cable Inc. (TWC) $149.59 +2.29%
Twenty-First Century Fox Inc Class A (FOXA) $36.56 +2.27%
S&P 500 - Fallers
Hormel Foods Corp. (HRL) $51.32 -5.19%
Nabors Industries Ltd. (NBR) $15.60 -4.88%
Garmin Ltd. (GRMN) $56.94 -4.51%
FMC Technologies Inc. (FTI) $53.35 -3.84%
Schlumberger Ltd. (SLB) $95.20 -3.30%
Halliburton Co. (HAL) $48.26 -3.25%
Apache Corp. (APA) $73.38 -3.21%
Cimarex Energy Co (XEC) $118.27 -2.89%
Eog Resources Inc. (EOG) $96.74 -2.83%
Hess Corp. (HES) $82.31 -2.79%
Dow Jones I.A - Risers
United Technologies Corp. (UTX) $111.71 +2.68%
Walt Disney Co. (DIS) $91.65 +1.18%
Visa Inc. (V) $257.26 +1.04%
Unitedhealth Group Inc. (UNH) $97.90 +1.03%
Cisco Systems Inc. (CSCO) $27.28 +0.92%
Pfizer Inc. (PFE) $30.47 +0.83%
Procter & Gamble Co. (PG) $88.80 +0.78%
American Express Co. (AXP) $91.40 +0.40%
Coca-Cola Co. (KO) $44.43 +0.36%
AT&T Inc. (T) $34.82 +0.35%
Dow Jones I.A - Fallers
Home Depot Inc. (HD) $97.01 -1.41%
Chevron Corp. (CVX) $116.15 -1.22%
3M Co. (MMM) $158.06 -1.14%
JP Morgan Chase & Co. (JPM) $60.30 -1.08%
Exxon Mobil Corp. (XOM) $94.78 -0.98%
Nike Inc. (NKE) $97.29 -0.67%
E.I. du Pont de Nemours and Co. (DD) $71.68 -0.65%
Goldman Sachs Group Inc. (GS) $188.86 -0.64%
Wal-Mart Stores Inc. (WMT) $84.95 -0.53%
General Electric Co. (GE) $26.86 -0.52% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: BG, Apple, Opec, Microsoft The Guardian reports that The Institute of Directors has attacked the £25m pay deal promised to the new boss of oil and gas group BG, claiming it damaged the reputation of corporate Britain, and asked the company's shareholders to block the proposed package. On Tuesday, Apple set a record by becoming the first business in the world to be valued at $700bn (£446bn), reports the Telegraph.
The technology giant, already the world's most valuable business, saw its shares rise nearly 1% in early trading on Tuesday, giving it a market capitalisation of $701.7bn.
Oil prices continued to slump after negotiations between some members of the Organisation of Petroleum Exporting Countries (OPEC) were fruitless, reports the Times.
Ahead of Wednesday's meeting in Vienna, Saudi Arabia, Venezuela and Mexico held talks with Russia, but no progress was made. On Tuesday, Brent crude fell to $78.41 a barrel, close to a four-year low.
Microsoft has been fined $140m in back taxes and interest by the Chinese government, the Financial Times reports.
Chinese news agency Xinhua said that while the firm's China-based business were officially in the red, the profits were being booked in offshore tax havens and Microsoft has since admitted to tax evasion.
According to the Wall Street Journal, the US Department of Justice is investigating allegations that an employee of HSBC leaked confidential client information to a so-called 'hedge-fund'. | | |
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