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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: Investors await pivotal OPEC meeting, Brent drops The UK stock market opened flat on Thursday as investors awaited a jam-packed day full of economic data, policymaker speeches and a pivotal meeting of the Organization of Petroleum Exporting Countries (OPEC). London's FTSE 100 index was down 0.1% at 6,722 in early deals.
While US markets will be closed for the Thanksgiving holiday, a number of 'risk events' during the session could prompt some market volatility, with the OPEC meeting likely to grab the most focus as crude prices extended a four-year low.
"Whether or not [OPEC] will cut its output target to curb the downward pressure on oil prices looks to be a close call," said analysts at Danske Bank. They highlighted a recent Bloomberg survey, which showed that 58% of analysts expect OPEC to keep its target for production unchanged.
Brent crude fell the fourth day in London, dropping as much as 1.9% to $76.28 a barrel.
According to analyst Michael Hewson from CMC Markets UK, an agreement on production cuts "seems fairly unlikely" after comments from ministers of Saudi Arabia and the United Arab Emirates who hinted that they had no intention to scale back output.
"That would suggest the likelihood of further declines in the oil price towards $70 a barrel unless oil ministers pull a rabbit out of the hat, and catch the market on the wrong foot. If this does happen then its great news for consumers, but not so great for energy stocks or any leveraged plays that need a high oil price to break even," he said.
Elsewhere, speeches from European Central Bank president Mario Draghi, and ECB members Jens Weidmann and Vitor Constancio will grab the spotlight on Thursday morning.
Data on German unemployment, inflation and consumer confidence will also be in focus.
Oil stocks slump ahead of OPEC meeting
Oil and gas producers such as BG Group, Tullow Oil, Shell, BP, Afren and Enquest were trading with losses early on as shares tracked crude prices lower ahead of the crucial OPEC meeting.
BG Group was also feeling the heat as the proposed £25m pay package for its new boss Helge Lund continues to spark anger. The Institute of Directors branded the remuneration "excessive" and "inflammatory".
Stocks in the energy services sector were also under pressure ahead of the OPEC meeting on concerns that lower prices could prompt producers to scale back on project spend. Petrofac, which delivered a profit warning to investors last week on the back of lower oil prices and the timing of contracts, was a heavy faller, along with Hunting and Amec Foster Wheeler.
Amec Foster Wheeler, however, was also trading lower after going ex-dividend, meaning that investors will no longer have access to the company's latest payout. A number of stocks others also went ex-dividend on Thursday, including Dunelm, Johnson Matthey, Royal Mail, SABMiller, Vedanta Resources, Lancashire Holdings, Wolseley and JD Wetherspoon.
Glaxosmithkline gained after saying it is on track to complete its complex three-way £11bn deal with Swiss pharmaceutical peer Novartis next year after US regulators approved the first two parts of the transaction.
Stagecoach saw shares surge after its 90%-owned joint venture with Virgin Rail won the contract from the Department for Transport to run the new InterCity East Coast franchise for eight years from March 2015. |
| | Market Movers
techMARK 2,911.86 +0.01%
FTSE 100 6,721.56 -0.11%
FTSE 250 15,812.78 +0.15%
FTSE 100 - Risers
Barclays (BARC) 241.00p +1.26%
Anglo American (AAL) 1,364.00p +1.22%
SSE (SSE) 1,626.00p +1.06%
ITV (ITV) 209.40p +1.06%
Dixons Carphone (DC.) 422.80p +1.03%
Reckitt Benckiser Group (RB.) 5,215.00p +0.97%
Rio Tinto (RIO) 3,030.00p +0.93%
Sky (SKY) 932.50p +0.92%
Admiral Group (ADM) 1,226.00p +0.82%
Smith & Nephew (SN.) 1,116.00p +0.81%
FTSE 100 - Fallers
Petrofac Ltd. (PFC) 879.50p -2.22%
Royal Mail (RMG) 415.90p -1.70%
BG Group (BG.) 1,032.50p -1.62%
Sainsbury (J) (SBRY) 236.00p -1.26%
Sports Direct International (SPD) 631.00p -1.25%
Tullow Oil (TLW) 495.50p -1.10%
Tesco (TSCO) 185.20p -1.07%
Rolls-Royce Holdings (RR.) 858.50p -0.98%
BP (BP.) 433.75p -0.95%
Royal Dutch Shell 'B' (RDSB) 2,345.00p -0.91%
FTSE 250 - Risers
Stagecoach Group (SGC) 394.80p +6.70%
Shaftesbury (SHB) 806.00p +5.77%
Electra Private Equity (ELTA) 2,691.00p +4.34%
Thomas Cook Group (TCG) 117.70p +3.70%
SSP Group (SSPG) 250.80p +2.37%
Serco Group (SRP) 178.60p +2.17%
Nostrum Oil & Gas (NOG) 657.00p +2.10%
National Express Group (NEX) 245.50p +1.95%
Poundland Group (PLND) 316.00p +1.94%
RPC Group (RPC) 557.50p +1.92%
FTSE 250 - Fallers
Lancashire Holdings Limited (LRE) 544.00p -12.68%
EnQuest (ENQ) 62.45p -3.92%
Afren (AFR) 63.25p -2.92%
Hunting (HTG) 656.00p -2.60%
Amec Foster Wheeler (AMFW) 1,035.00p -2.27%
Foxtons Group (FOXT) 150.00p -1.96%
3i Infrastructure (3IN) 146.60p -1.87%
Ocado Group (OCDO) 314.80p -1.87%
Cairn Energy (CNE) 170.50p -1.84% |
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| | UK Event Calendar | | Thursday 27 November
INTERIMS
Acal, Digital Barriers, Mountview Estates, Palace Capital , PayPoint, Poundland Group , RPC Group, ULS Technology , VP
INTERIM DIVIDEND PAYMENT DATE
Action Hotels, Development Securities, Moss Bros Group, Panther Securities, Toyota Motor Corp., Zhejiang Expressway Co 'H' Shares
INTERIM EX-DIVIDEND DATE
3i Infrastructure, Amec Foster Wheeler, Anglo Pacific Group, Castings, E2V Technologies, Foresight VCT Planned Exit Shares, John Laing Environmental Assets Group Limited , Johnson Matthey, London Security, Mckay Securities, Record, Royal Mail, SABMiller, Sepura, Sirius Real Estate Ltd., Stanley Gibbons Group, Telecom Plus, Vedanta Resources, Wynnstay Properties, Young & Co's Brewery 'A' Shares, Young & Co's Brewery (Non-Voting)
QUARTERLY EX-DIVIDEND DATE
Canadian General Investments Ltd., Duet Real Estate Finance Ltd, Energy XXI (Bermuda) (DI), HICL Infrastructure Company Ltd, Utilico Investments Ltd (DI)
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Business Climate Indicator (EU) (10:00)
Economic Sentiment Indicator (EU) (10:00)
GFK Consumer Confidence (GER) (12:00)
M3 Money Supply (EU) (09:00)
Unemployment Rate (GER) (08:55)
Q3
Public Power GDR SA (Reg S)
FINALS
Impax Asset Management Group, Marston's, Shaftesbury, SSP Group
SPECIAL DIVIDEND PAYMENT DATE
Eclectic Bar Group
SPECIAL EX-DIVIDEND PAYMENT DATE
Keystone Inv Trust, Lancashire Holdings Limited
EGMS
Harbourvest Senior Loans Europe Ltd., Ingenious Entertainment VCT 1 'C' Shares, Ingenious Entertainment VCT 1 'D' Shares, Ingenious Entertainment VCT 1 E Shares, Ingenious Entertainment VCT 1 F Shares, Ingenious Entertainment VCT 1 G Shs, Ingenious Entertainment VCT 1 H Shs, Ingenious Entertainment VCT 2 'C' Shares, Ingenious Entertainment VCT 2 'D' Shares, Ingenious Entertainment VCT 2 E Shares, Ingenious Entertainment VCT 2 F Shares, Ingenious Entertainment VCT 2 G Shs, Ingenious Entertainment Vct 2 H Shs
AGMS
Allocate Software, Avanti Communications Group, Berkeley Resources Ltd. (DI), City Natural Resources High Yield Trust, Eclectic Bar Group, Ferrum Crescent Ltd NPV (DI), Global Petroleum Ltd., Netcall, Petra Diamonds Ltd.(DI), Red Emperor Resources NL (DI), Transense Technologies
FINAL DIVIDEND PAYMENT DATE
Wetherspoon (J.D.), Wolseley
FINAL EX-DIVIDEND DATE
A&J Mucklow Group, Diploma, Dunelm Group, Euromoney Institutional Investor, JPMorgan Japanese Inv Trust, Northern Venture Trust, NOTTS.B.S. 7 7/8% PERM INT BEARING SHS, Origin Enterprises, Pure Wafer, Smart (J) & Co., UDG Healthcare Public Limited Company, World Careers Network |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks mixed ahead of Draghi speech, German unemployment steady European stocks were mixed before a speech from the president of the region's central bank, possibly offering hints on stimulus measures. European Central Bank President Mario Draghi will speak in Helsinki at 11:30 London time, after last week saying the bank would consider buying government bonds if inflation remained too low for too long.
Ahead of his remarks, the German unemployment rate in November was unchanged from the previous month at 6.6%, compared to a forecast for a 6.7%.
The number of unemployed people fell by 14,000 this month, more than the 1,000 drop expected by economists. In October the number of jobless dropped 23,000.
GfK's index on German consumer confidence, out at 12:00, is predicted to increase to 8.6 in December from 8.5 the prior month.
Inflation in Europe's biggest economy, released at 13:00, is pegged to easy back to an annualised 0.6% in November from 0.8% a month earlier.
The data will be closely watched amid concerns that the stagnant euro-area is weighing down the global economy.
The OECD on Tuesday warned that the Eurozone was weighing down on international growth and needed a package of measures including monetary stimulus.
Company-wise, Remy Cointreau SA gained after the French cognac maker reported first-half operating profit that beat analysts' estimates.
Infineon Technologies AG declined after saying first-quarter sales may drop as much as 9% from the previous three months.
Brent crude futures slid 2.4% to $75.89 after Saudi Arabia indicated it would not push for output cuts to help push up oil prices.
OPEC oil producers are set to meet on Thursday.
The euro fell 0.26% to $1.2474. |
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| | US Market Report | | US close: Markets rise ahead of OPEC decision, despite negative data US equity markets rose on Wednesday, despite a rise in jobless claims for the first time since September and mixed data on orders for durable goods. On a day with lots of weak economic data, the Dow Jones Industrial Average advanced by 12.81 points, landing at 17,827.75, while the S&P 500 rose by 5.8 to 2,072.83 and the Nasdaq increased 0.6% to 4,787.32.
The markets are still waiting on OPEC, the group of oil making nations, to make a decision about whether to reduce production levels. The OPEC meeting will take place 27 November.
Chief market analyst for FXTM Jameel Ahmed said: "Although there was previously optimism that a cut in production would be agreed, this optimism is quickly fading today."
This follows reports that Saudi Arabian Oil minister Ali Al-Naimi asserted that the nation will not be willing to cut oil production and no other country should either. Mexico, Russia and Venezuela are all also reportedly against cutting production.
"If no one cuts production, it strongly suggests that the oil markets are set to continue trading in a bearish direction in the longer term," Ahmed added.
Barclays Research argued that "Saudi Arabia is likely also mindful of the impact of higher oil prices on what is currently a fragile global economy and on future oil demand growth".
"Given the widespread view that current price levels will not be enough to materially lower US tight oil output growth, another leg lower of as much as $10/barrel would be likely if this scenario materialises."
The US Department of Commerce released figures that revealed orders for durable goods increased by 0.4% month-on-month in October to $243.8bn, topping the consensus forecast of a 0.6% fall. However this figure excluded transportation.
Meanwhile, initial jobless claims rose to an 11-week high and sky-rocketed to the 300,000 mark for the first time in nearly three months.
The number of US initial jobless claims in the week ended 22 November reached 313,000, exceeding the 288,000 expected by a substantial amount.
In the corporate world, Hewlett-Packard shares gained more than 4% in spite of missing estimates for fourth quarter sales. The stock "bounced back from a weak open, as the low valuation and healthy balance sheet entice in investors despite an across-the-board decline in revenues", according to IG market analyst Chris Beauchamp.
Elsewhere, Deere & Co stock fell by 0.91% after its 2015 profit was announced as $1.9bn, missing earlier $2.2bn estimates.
Hertz Global Holdings receded steadily by 3.88% following a stake increase by Icahn Associates of about 11% from 8.7% at the end of September.
The dollar succumbed to the pound, the yen and the euro, while oil prices continued to decline. Brent crude dropped almost a full percentage point to $77.6 a barrel, while West Texas intermediate sank to $73.6 a barrel after losing almost 0.7%.
S&P 500 - Risers
Analog Devices Inc. (ADI) $54.56 +5.51%
Becton, Dickinson & Company (BDX) $141.26 +4.85%
Mylan Inc. (MYL) $58.62 +4.36%
Hewlett-Packard Co. (HPQ) $39.16 +4.07%
Texas Instruments Inc (TXN) $54.33 +3.60%
Avago Technologies Ltd. (AVGO) $93.78 +2.89%
Applied Materials Inc. (AMAT) $23.87 +2.78%
Linear Technology Corp. (LLTC) $45.55 +2.73%
Hormel Foods Corp. (HRL) $52.70 +2.69%
Facebook Inc. (FB) $77.62 +2.63%
S&P 500 - Fallers
KLA-Tencor Corp. (KLAC) $67.33 -20.01%
Diamond Offshore Drilling Inc. (DO) $32.22 -10.90%
Transocean Ltd. (RIG) $23.27 -8.06%
Ensco Plc. (ESV) $37.15 -6.85%
Noble Corporation plc (NE) $19.71 -5.06%
Rowan Companies plc (RDC) $23.32 -3.60%
Newfield Exploration Co (NFX) $32.48 -3.56%
Pioneer Natural Resources Co. (PXD) $160.81 -3.54%
Nabors Industries Ltd. (NBR) $15.07 -3.40%
Flowserve Corp. (FLS) $65.19 -3.35%
Dow Jones I.A - Risers
Pfizer Inc. (PFE) $31.10 +2.07%
Intel Corp. (INTC) $36.90 +1.60%
Verizon Communications Inc. (VZ) $50.04 +1.42%
Travelers Company Inc. (TRV) $104.37 +0.91%
AT&T Inc. (T) $35.13 +0.89%
Home Depot Inc. (HD) $97.70 +0.71%
Merck & Co. Inc. (MRK) $59.75 +0.69%
Microsoft Corp. (MSFT) $47.75 +0.59%
Cisco Systems Inc. (CSCO) $27.42 +0.53%
Nike Inc. (NKE) $97.80 +0.52%
Dow Jones I.A - Fallers
United Technologies Corp. (UTX) $110.16 -1.39%
Chevron Corp. (CVX) $115.11 -0.90%
McDonald's Corp. (MCD) $96.22 -0.80%
Caterpillar Inc. (CAT) $105.79 -0.42%
Exxon Mobil Corp. (XOM) $94.48 -0.32%
Coca-Cola Co. (KO) $44.29 -0.32%
E.I. du Pont de Nemours and Co. (DD) $71.47 -0.29%
Goldman Sachs Group Inc. (GS) $188.52 -0.18%
Boeing Co. (BA) $134.78 -0.02%
Visa Inc. (V) $257.26 -0.00%
Nasdaq 100 - Risers
Analog Devices Inc. (ADI) $54.56 +5.51%
Mylan Inc. (MYL) $58.62 +4.36%
Texas Instruments Inc (TXN) $54.33 +3.60%
Avago Technologies Ltd. (AVGO) $93.78 +2.89%
Applied Materials Inc. (AMAT) $23.87 +2.78%
Linear Technology Corp. (LLTC) $45.55 +2.73%
Facebook Inc. (FB) $77.62 +2.63%
Dish Network Corp. (DISH) $78.24 +2.49%
Xilinx Inc. (XLNX) $45.49 +2.48%
Maxim Integrated Products Inc. (MXIM) $29.68 +2.45%
Nasdaq 100 - Fallers
KLA-Tencor Corp. (KLAC) $67.33 -20.01%
Vimpelcom Ltd Ads (VIP) $5.77 -1.87%
Staples Inc. (SPLS) $13.92 -1.21%
Priceline Group Inc (PCLN) $1,166.83 -1.05%
Mattel Inc. (MAT) $30.88 -0.99%
NetApp Inc. (NTAP) $42.70 -0.88%
PACCAR Inc. (PCAR) $67.36 -0.85%
F5 Networks Inc. (FFIV) $129.09 -0.83%
Gilead Sciences Inc. (GILD) $100.30 -0.80% |
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| | Newspaper Round Up | | Thursday newspaper round-up: Scotland, GSK, BG, Stagecoach Scottish MPs will be entitled to vote on UK budgets even though control over income tax will soon be transferred over to the Edinburgh parliament, Labour has revealed shortly before the publication of a cross-party devolution deal on Thursday, the Financial Times found.
The Smith Commission, charged with getting agreement following an independence referendum by David Cameron, will uncover proposals to allot the Scottish Parliament a bunch of new tax and welfare powers. Labour insiders have let slip that a deal has been made to ensure Scottish MPs can vote on finance Bills at Westminster regardless of the fact that income tax rates south of the Border will no longer apply in their constituencies
Thousands of health care workers in Sierra Leone and Liberia may receive an experimental Ebola vaccine in early 2015 now that GlaxoSmithKline has confirmed that drug-trials have so far been "encouraging", reports the Telegraph.
The British pharmaceutical firm is developing the vaccine in partnership with the US National Institutes of Health and said each of the 20 healthy adult volunteers who took part in the trial showed an "immunological response".
Over a million low-income households have been overcharged by an average of £50 by their energy supplier because of faulty gas meters, says the Times.
British Gas, the largest energy supplier, is understood to be the worst offender as its customers use about half of the 1.5m pre-payment meters in question. The billing errors go back to 2007, when the first meters were installed and energy suppliers have begun contacting affected customers, promising to pay full refunds.
According to the Guardian, oil and gas group BG faces an uphill struggle with its shareholders after ISS, the biggest investor advisory group, rejected a £25m, pay deal for the firm's new chief executive.
ISS claimed the company's pay committee had not done its job properly and invited investors to vote against Helge Lund's package at an extraordinary general meeting called to approve the pay package in December.
The oil price tumbled below $78 a barrel on the eve of Thursday's Opec meeting after Saudi Arabia and the United Arab Emirates hinted that they had no intention of cutting production levels to prop up prices, the Times says.
With oil prices down by a third since June and producers mothballing now-unviable projects, the Organisation of Petroleum Exporting Countries meets in Vienna for one of its most closely watched gatherings in years.
Stagecoach and Virgin Trains have won an eight-year contract to run the London-to-Scotland East Coast Main Line. The line, which has been operated by a British-taxpayer-owned rail company since 2009, will be re-privatised on March 1 next year, reports the Telegraph. | | |
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