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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 fall ahead of policy decisions from BoE and ECB A flurry of blue-chip company announcements and upcoming policy decisions by the Bank of England (BoE) and European Central Bank (ECB) kept investors cautious on Thursday morning, with UK stocks trading in the red early on.
The FTSE 100 was down 0.3% at 6,517, having jumped 1.3% to the previous session.
The BoE is widely expected to keep interest rates at the record-low level of 0.5% when it announces its policy decision at midday. Recent economic data has generally indicated that UK economic growth may have cooled off in the fourth quarter.
"Hence, a rate hike in the UK does not appear to be just around the corner," said analysts at Danske Bank. Markets will be awaiting next week's Inflation Report from the BoE in which the central bank will provide new projections.
Meanwhile, the ECB is also predicted to keep policy unchanged though the afternoon press conference with president Mario Draghi will be very closely watched as usual, especially after the recent slowdown in growth and falling inflation expectations.
Given the increasing pressure on the ECB to ramp up monetary easing, investors expect Draghi to adopt a dovish tone and show his readiness to stimulate the single-currency region.
Some important economic data is also on tap for Thursday's session, including UK industrial production figures and US jobless claims.
Labour-market data in the States will be particularly in focus ahead of the all-important non-farm payrolls report on Friday. Non-farm payrolls are expected to have increased by 232,000 in October, after a 248,000 gain in September, while the unemployment rate is forecast to have held steady at 5.9%.
Morrisons jumps, M&S continues to rise
Supermarket chain Wm Morrison was a high riser early on after seeing its like-for-like sales decline ease to 6.3% in the third quarter from 7.4% in the first half, as it said its new Match & More loyalty card was proving "extremely popular" with customers. The group also narrowed its full-year guidance for underlying profit before tax to £335m-365m, from the previous £325m-375m.
Rival grocers J Sainsbury and Tesco were also higher.
Marks & Spencer was extending gains made on Wednesday after beating forecasts with an unexpected increase in profit in the first half. Deutsche Bank also gave the stock a lift on Thursday after upgrading its rating to 'buy' and lifting its target for the shares.
First-half profits and cash flow from credit information group Experian hit the top end of expectations despite a decline in US consumer revenue due to rebranding. The stock was among the best performers on the FTSE 100.
Randgold Resources gained after saying it experienced a "robust" third-quarter performance and is confident of delivering a record year with quarterly gold output at all-time highs and costs being well contained.
RSA Insurance fell after saying its underwriting result in the third quarter quarter was weak overall and posted a 9% fall in premiums. |
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| | UK Event Calendar | | Thursday 06 November
INTERIMS
Cable & Wireless Communications, Dairy Crest Group, Experian, Halfords Group, Shanks Group, Tate & Lyle
INTERIM DIVIDEND PAYMENT DATE
Brammer, British American Inv Trust, Cenkos Securities, Synthomer
INTERIM EX-DIVIDEND DATE
Amati VCT , Andrews Sykes Group, BlackRock Smaller Companies Trust, Bloomsbury Publishing, Bunzl, C&C Group, Elderstreet VCT, Hunting, JZ Capital Partners Ltd, Laird, Mission Marketing Group, Morgan Advanced Materials , Octopus Titan VCT 1, Octopus Titan VCT 2, Octopus Titan VCT 3, Octopus Titan VCT 4, Octopus Titan VCT 5, Pace, Proven Planned Exit VCT, SThree, Stobart Group Ltd.
QUARTERLY EX-DIVIDEND DATE
Barclays, BP, GlaxoSmithKline, JPMorgan Claverhouse Inv Trust
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Continuing Claims (US) (13:30)
ECB Interest Rate (EU) (12:45)
Factory Orders (GER) (11:00)
Initial Jobless Claims (US) (13:30)
PMI Construction (GER) (08:30)
PMI Retail (EU) (09:10)
PMI Retail (GER) (09:10)
Productivity (US) (13:30)
Q3
AstraZeneca, Coca-Cola HBC AG (CDI), Hellenic Telecom Industries SA ADS, Inmarsat, Randgold Resources Ltd.
GMS
Daniel Stewart Securities
FINALS
Hangar 8
IMSS
Beazley, Cobham, Croda International, Gem Diamonds Ltd. (DI), Hikma Pharmaceuticals, Inmarsat, Intu Properties, Morrison (Wm) Supermarkets, Promethean World, Rightmove, RSA Insurance Group, Schroders, Schroders (Non-Voting), Stock Spirits Group , Synthomer
SPECIAL EX-DIVIDEND PAYMENT DATE
Aberdeen Asian Smaller Companies Inv Trust, Eclectic Bar Group, Octopus Titan VCT 4, Octopus Titan VCT 5
AGMS
AFI Development, China Growth Opportunities Ltd, Hansard Global, New Star Investment Trust, Thor Mining
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Decision (12:00)
Industrial Production (09:30)
Manufacturing Production (09:30)
New Car Registrations (09:30)
FINAL DIVIDEND PAYMENT DATE
Photo-Me International, Redde
FINAL EX-DIVIDEND DATE
Abcam, Aberdeen Asian Smaller Companies Inv Trust, Ashmore Group, Avingtrans, Dechra Pharmaceuticals, James Halstead, JPMorgan Overseas Inv Trust, JPMorgan Smaller Companies Inv Trust, Matchtech Group, Plexus Holdings, Regenersis, ZCCM Investments Holdings 'B' Shares |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks decline ahead of ECB monetary policy decision European stocks were in the red ahead of the European Central Bank's (ECB) policy decision later in the afternoon.
The ECB is under pressure to take more action to address the weak economy and low inflation but analysts expect the monetary authority will hold back on any policy changes.
In an effort to turn the economy around, the ECB has cut interest rates to an all-time low, taken the deposit facility into negative territory and introduced a programme of covered bond purchases.
Now the ECB is being urged to enact full-on quantitative easing as the economy shows no signs of improvement despite the central bank's latest policy moves.
The Bank of Japan's (BoJ) decision to boost stimulus has further put the onus on the ECB to do the same.
The ECB will announce its policy decision at 12:45 London time before President Mario Draghi holds a press conference at 13:30.
"Weak economic data, falling commodity prices, signs that low inflation may become more persistent and last week's actions by the BoJ have all raised pressure on the ECB to act and inject new confidence on Thursday," Rabobank said.
"However, this is easier said than done, as the central bank's ability to influence all the key variables that determine growth and inflation is still much over-rated. We look a bit closer at this particular problem in the second section of this research note. With regard to tomorrow's ECB meeting, we feel that - despite high hopes by some participants in the market - it may fall short of expectations, at least in terms of 'new' new information being provided."
The Bank of England also announces its policy decision at 12:00 and analysts' predict the central bank will keep asset purchases at £375bn and interest rates at 0.5%.
In economic data, German factory orders fell 1% year-on-year in September, as expected, after rising 0.8% a month earlier.
Morning trading will also see the release of data on Eurozone retail sales, UK manufacturing production. Later on a report on US initial jobless claims and the NIER's gross domestic product estimate for the UK.
Societe Generale, Adecco
Societe Generale slumped as the French bank said third-quarter profit rose 57% to €836m, as it set aside less money for bad loans and potential legal costs.
Adecco declined after the supplier of temporary workers said revenue expansion slowed in the third-quarter due to weaker growth in France and Germany.
Zurich Insurance slide as the Switzerland's biggest insurer said third-quarter profit declined.
Adidas advanced after the German sporting-goods maker said posted quarterly profit that beat analysts' estimates.
Commerzbank rallied as the German lender reported third-quarter profit that exceeded market forecasts.
The euro rose 0.12% to $1.2501. |
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| | US Market Report | | US close: Markets rally after mid-term elections US stocks advanced on Wednesday, amid positive data as investors showed optimism follow the US mid-term elections.
The Dow Jones Industrial Average closed 100.69 points up to 17,484.53, while the S&P 500 rose 11.47 points to 2,023.57 and the Nasdaq finished the day 2.91 points down at 4,620.72.
Republicans won control of the Senate in the US mid-term elections on Tuesday, strengthening their power in the House of Representatives.
The Tea Party now controls both chambers of Congress for the first time since 2006, something which investors hope spell the end political gridlock and the introduction of more pro-business policies.
The result is likely to put President Barack Obama in a difficult position during his two final years of his term, but "the markets don't appear at all concerned about this", Craig Erlam, analyst at Alpari UK, said.
"In the past, this outcome has been good for the markets and therefore the result is being well received once again."
Meanwhile, private-sector hiring rose to a four-month high in October, with payrolls rising by 230,000 after an upwardly-revised 225,000 gain in September. Analysts had pencilled in a figure closer to 220,000.
"The frequent and large revisions to the ADP employment report limit its usefulness in forecasting," Barclays analyst Jesse Hurwitz said.
"However, we view the October report as largely consistent with our outlook for non-farm payroll gains of 225k in Friday's employment report from the Labor Department."
US service sectors such as retail and real estate grew at a rapid but somewhat slower pace in October, while an employment gauge hit a nine-year high, according to monthly survey of senior executives.
Time Warner rose 4.03% after beating analysts' forecasts with its quarterly results. The media group also lifted its profit guidance, predicting percentage growth in the high teens from $3.51 a share last year. It had previously guided to a low-teens rise.
Activision Blizzard advanced 4.41% after the group posted a weaker-than-expected outlook for the fourth quarter in late trading Tuesday, but earnings beat forecasts.
EOG Resources jumped 6.45% after the oil and gas company exceeded earnings and revenue forecasts and lifted its full-year production outlook, while Mondelez International rose 6.02% after the packaged-food producer beat estimates for third quarter earnings.
Tripadvisor sank 13.77% after disappointing third quarter results, while Fireeye plummeted 15.04% after missing sales forecasts for the third quarter.
The dollar rose sharply against the yen and registered smaller gains against the pound and the euro, while gold futures slid back to $1,144.60.
The yield on the 10-Year US Treasury note rose one basis points to 2.34%, while the yield on the 30-year note fell three basis points to 3.03% and the five-year Treasuries were stable at 1.63%.
West Texas intermediate rebounded after heavy losses earlier in the week and finished the day at just under $79 a barrel, while Brent crude closed at just over $83 a barrel, after advancing 0.5%.
S&P 500 - Risers
Devon Energy Corp. (DVN) $61.62 +10.00%
Cognizant Technology Solutions Corp. (CTSH) $52.40 +8.06%
NRG Energy Inc. (NRG) $32.27 +7.78%
Chesapeake Energy Corp. (CHK) $22.76 +6.90%
Eog Resources Inc. (EOG) $96.10 +6.45%
Mondelez International Inc. (MDLZ) $37.15 +6.05%
Noble Corporation plc (NE) $20.26 +5.80%
Diamond Offshore Drilling Inc. (DO) $35.43 +5.76%
Transocean Ltd. (RIG) $28.89 +5.63%
QEP Resources Inc (QEP) $24.44 +4.98%
S&P 500 - Fallers
TripAdvisor Inc. (TRIP) $71.95 -14.13%
Pioneer Natural Resources Co. (PXD) $172.86 -4.45%
Newmont Mining Corp. (NEM) $17.83 -4.45%
Motorola Solutions Inc (MSI) $64.46 -3.45%
Gilead Sciences Inc. (GILD) $106.05 -3.35%
Tenet Healthcare Corp. (THC) $51.40 -3.13%
Wynn Resorts Ltd. (WYNN) $179.74 -2.98%
Salesforce.Com Inc. (CRM) $61.91 -2.61%
Freeport-McMoRan Inc (FCX) $27.13 -2.37%
Intel Corp. (INTC) $33.76 -2.26%
Dow Jones I.A - Risers
Visa Inc. (V) $249.53 +2.70%
E.I. du Pont de Nemours and Co. (DD) $69.81 +1.90%
JP Morgan Chase & Co. (JPM) $61.15 +1.49%
Chevron Corp. (CVX) $117.05 +1.46%
Coca-Cola Co. (KO) $42.31 +1.17%
American Express Co. (AXP) $92.42 +1.14%
Cisco Systems Inc. (CSCO) $25.15 +1.09%
United Technologies Corp. (UTX) $107.93 +0.98%
Unitedhealth Group Inc. (UNH) $95.80 +0.86%
Caterpillar Inc. (CAT) $99.41 +0.81%
Dow Jones I.A - Fallers
Intel Corp. (INTC) $33.76 -2.26%
Boeing Co. (BA) $124.22 -1.29%
Pfizer Inc. (PFE) $30.04 -0.79%
International Business Machines Corp. (IBM) $161.82 -0.51%
Goldman Sachs Group Inc. (GS) $189.84 -0.23%
Home Depot Inc. (HD) $95.78 -0.19%
Nasdaq 100 - Risers
Liberty Interactive Corp (QVCA) $28.13 +9.16%
Cognizant Technology Solutions Corp. (CTSH) $52.40 +8.06%
Mondelez International Inc. (MDLZ) $37.15 +6.05%
Nxp Semiconductors Nv (NXPI) $73.36 +5.30%
Twenty-First Century Fox Inc Class A (FOXA) $34.84 +4.53%
Activision Blizzard Inc. (ATVI) $20.83 +4.41%
Discovery Communications Inc. Class A (DISCA) $34.47 +3.48%
Applied Materials Inc. (AMAT) $22.61 +2.40%
CH Robinson Worldwide Inc (CHRW) $71.45 +1.90%
Intuitive Surgical Inc. (ISRG) $505.37 +1.89%
Nasdaq 100 - Fallers
Liberty Media Corporation - Class A (LMCA) $35.84 -26.09%
TripAdvisor Inc. (TRIP) $71.95 -14.13%
Gilead Sciences Inc. (GILD) $106.05 -3.35%
Tesla Motors Inc (TSLA) $230.97 -3.33%
Wynn Resorts Ltd. (WYNN) $179.74 -2.98%
Illumina Inc. (ILMN) $186.37 -2.63%
Intel Corp. (INTC) $33.76 -2.26%
Vertex Pharmaceuticals Inc. (VRTX) $111.59 -2.20%
Amazon.Com Inc. (AMZN) $296.52 -2.08% |
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| | Newspaper Round Up | | Thursday newspaper round-up: UK banks, London Stock Exchange, Netto The chiefs of the UK's main high street banks have warned of the costs that would be involved in breaking them up, The Guardian reported on Thursday. The Competition and Markets Authority (CMA) could decide to split up branch networks or ending fee-free banking if it goes ahead with an 18-month investigation into the £10bn-a-year market for personal and business accounts which began in July.
"I think why people who chat about breaking up banks and distributing them all over the place should have a chat to us at some point in time on just how difficult these things are," Royal Bank of Scotland chief executive Ross McEwan said.
A third auction at noon will be introduced into the trading day at the London Stock Exchange (LSE) from next year, The Daily Telegraph said.
In a radical shake-up of the training day activities, a two-minute auction will be introduced at mid-day, when trading in UK equities will be halted.
The LSE has said the third auction would be introduced ahead of a clamp-down on dark pools, increasingly popular alternative trading venues, which allow investors to execute trades throughout the day, without disclosing them to the market until they're finalised.
The head of the company that owns Danish discount grocery chain Netto has said that its joint venture with Sainsbury in the UK has less than a year to prove itself, according to The Guardian.
"I hope we can set new standards for discounters in the UK. It's a big risk but I believe we are able to deliver that," said Per Bank, chief executive of Netto's owner Dansk Supermarked, said as the first store opened in Leeds on Thursday.
Jean-Claude Juncker, the new European Commission president, has criticised David Cameron for his angry reaction to a £1.7bn bill from Brussels, The Times reported.
The prime minister last week said that he would not pay "anything like" the sum demanded by the European Union and, in a press conference on Tuesday, Juncker described Cameron's words as "unjustified criticism".
"I am not the type who trembles, in front of prime ministers or at any other time," Juncker said.
According to the Financial Times, Finland and Sweden have told David Cameron that Europe's rules on the free movement of workers are inviolable.
The prime minister has repeatedly stated his belief that Britain would be better off in a reformed European Union, but he was warned by the German Chancellor, Angela Merkel, and by the prime ministers of the two Scandinavian countries that reforms must not be unreasonable. | | |
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