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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 close: Markets extend losing streak as miners fall London's stock market declined for the fourth straight day on Thursday as ongoing concerns about global growth and heavy falls in the mining sector erased earlier gains. The FTSE 100 finished 0.6% lower at 6,462, closing at its lowest level since 4 November when it settled at 6,453.97.
Mining stocks were providing a drag amid falling gold prices and further weakness in iron ore, "reflecting the slowdown globally and within China", according to analyst Jasper Lawler from CMC Markets UK. "While the Chinese government continues to attempt its fine-tuning of the economy and holds off going whole-hog on stimulus, metals and mining shares will be vulnerable," Lawler said.
Markets had edged higher early on, but gains were quickly erased after it was revealed that banks took up fewer-than-expected loans in the European Central Bank's (ECB) second round of liquidity operations. The ECB's second targeted long-term refinancing operations (TLTROs) fell slightly short of analysts' expectations, with loans totalling €129.84bn compared with the consensus forecast of €150bn.
This means that the combined total of the first two TLTROs came to only €212bn, just over half of the €400bn on offer, suggesting that banks are not keen to lend. However, analysts said that the results have likely increased the pressure on the ECB to embark on full-blown quantitative easing at its next meeting.
Continuing political uncertainty in Greece was also weighing on market sentiment with the Athens Stock Exchange falling a further 7.4% despite a massive sell-off earlier in the week, sparked by the prime minister's decision to bring forward presidential elections.
On a positive note, US economic data came in ahead of estimates in afternoon trade with retail sales growth picking up to 0.7% in November compared with the 0.4% forecast, and jobless claims unexpectedly falling 3,000 to 294,000. However, while the figures led to a big jump for Wall Street stocks after the opening bell in New York, they failed to stem the selling pressure on UK equities.
Mining stocks tank
Mining peers Glencore, Fresnillo, Randgold and Anglo American were weighing heavily on markets on macro concerns.
Blue chips Associated British Foods, Aberdeen Asset Management, Babcock and 3i Group were also providing a drag after the stocks went ex-dividend.
Distribution and outsourcing group Bunzl fell after saying that full-year underlying revenue growth would be around 2.5%, compared with the 3% increase reported in the third quarter.
Whitbread, the owner of Costa coffee, Premier Inn and Beefeater, also underwhelmed with a slight slowdown in like-for-like sales growth in the third quarter to 6%, from 7% in the first half.
Sports Direct also edged lower despite announcing that underlying profits rose by a tenth in the first half as decent top-line growth was met with a strong improvement in margins. |
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| | Market Movers
techMARK 2,913.13 +0.05%
FTSE 100 6,461.70 -0.59%
FTSE 250 15,663.52 -0.47%
FTSE 100 - Risers
Shire Plc (SHP) 4,565.00p +3.07%
Legal & General Group (LGEN) 246.60p +2.20%
Carnival (CCL) 2,789.00p +1.64%
easyJet (EZJ) 1,668.00p +1.52%
Dixons Carphone (DC.) 435.90p +1.47%
Intertek Group (ITRK) 2,220.00p +1.23%
Next (NXT) 6,545.00p +1.16%
Petrofac Ltd. (PFC) 724.00p +0.98%
Persimmon (PSN) 1,573.00p +0.90%
Whitbread (WTB) 4,605.00p +0.79%
FTSE 100 - Fallers
Glencore (GLEN) 294.85p -3.74%
Aberdeen Asset Management (ADN) 423.90p -3.35%
BG Group (BG.) 843.70p -3.29%
Fresnillo (FRES) 745.00p -3.25%
3i Group (III) 434.90p -3.16%
Babcock International Group (BAB) 1,079.00p -2.97%
Anglo American (AAL) 1,173.00p -2.86%
Rolls-Royce Holdings (RR.) 831.50p -2.86%
Smiths Group (SMIN) 1,058.00p -2.76%
Randgold Resources Ltd. (RRS) 4,261.00p -2.52%
FTSE 250 - Risers
Spirent Communications (SPT) 71.20p +7.63%
Ocado Group (OCDO) 355.40p +6.41%
Kier Group (KIE) 1,470.00p +3.30%
Tullett Prebon (TLPR) 255.30p +3.15%
Laird (LRD) 311.20p +2.64%
Micro Focus International (MCRO) 1,075.00p +2.28%
NMC Health (NMC) 485.00p +1.93%
Just Retirement Group (JRG) 141.50p +1.80%
IP Group (IPO) 215.00p +1.80%
Nostrum Oil & Gas (NOG) 509.00p +1.80%
FTSE 250 - Fallers
Ferrexpo (FXPO) 57.35p -5.98%
Bank of Georgia Holdings (BGEO) 1,949.00p -5.34%
EnQuest (ENQ) 35.80p -4.81%
Soco International (SIA) 243.40p -4.36%
Stock Spirits Group (STCK) 243.30p -3.95%
Evraz (EVR) 134.20p -3.87%
Jardine Lloyd Thompson Group (JLT) 845.00p -3.87%
Big Yellow Group (BYG) 570.00p -3.72%
Thomas Cook Group (TCG) 117.40p -3.69%
Go-Ahead Group (GOG) 2,448.00p -3.47% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks mixed after US data, ECB TLTROs European stocks were mostly higher as investors weighed better-than-expected US data and results from the European Central Bank's (ECB) latest targeted long-term refinancing operations (TLTROs). US retail sales rose 0.7% in November, following a 0.5% increase a month earlier, more than the 0.4% expected by analysts.
Initial US jobless claims fell to 294,000 in the week to 6 December, compared to estimates for an unchanged reading of 297,000.
The positive data helped to turn around declines at the midday mark after the ECB's TLTROs came in worse than hoped.
The take-up by European banks on what is the second round of liquidity operations ended up at €129.84bn. Market expectations ranged from as little as €90bn to €250bn with consensus centring around approximately €150bn.
Back in September in the first TLTRO operation of a total €83bn was taken up, well below market expectations.
Early in the session stocks had moved higher thanks to a modest recovery in oil prices and following reports that China has injected $65bn into the banking system in an effort to boost banks' lending abilities to grow the economy.
Reuters reported that the country's central bank had told banks to issue more loans in the final months of the year.
Back in Europe, a report confirmed German inflation rose 0.6% in November, as expected.
Nutreco, Bunzl
Nutreco NV gained as Cargill said it's considering making a stand-alone bid for the Dutch animal-feed supplier.
Bunzl fell after saying that full-year underlying revenue growth would be around 2.5%, compared with the 3% increase reported in the third quarter.
Inditex SA was a strong performer after the clothing retailer reported an increase in nine-month profit and revenue that met estimates.
Telecom Italia SpA moved higher following reports Telefonica SA, Oi SA and Claro SA plan to make an offer for Tim Participacoes SA. Telecom Italia owns a 67% percent stake in Tim.
The euro fell 0.35% to $1.2404. |
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| | US Market Report | | US open: US stocks advance amid encouraging retail sales and lower jobless claims US stock indices advanced on Thursday, as the nation's retail sales in November were higher than expected and initial jobless claims showcased the lowest level in three weeks. At the start of trading, the Dow Jones Industrials rose 0.95% to 17,697.25, while the S&P 500 increased 0.8% to 2,046.08 and Nasdaq was up 1.07% to 4,270.62.
Retail sales performed well above its 0.4% forecast for the month of November, rising 0.7% following higher demand in autos and clothing. Auto sales experienced particularly strong results, increasing 1.7%.
Chief economist for Markit Chris Wlliamson said: "The upturn in sales supports survey evidence that the economy's recent growth surge is showing few signs of stalling, despite a gloomier-looking global economy.
"Spending is being driven by an improved labour market, with rising employment helping to bring down the jobless rate and boosting incomes."
Moreover, the US also reported its lowest initial jobless claim index in three weeks on Thursday, echoing the nation's falling unemployment rate. In total, demand for regular state unemployment-insurance benefits inched down 3,000 to 294,000 in the week ended 6 December. Economists had expected initial claims to experience only a 1,000 drop to 296,000.
Analyst for Daiwa Capital Markets America Michael Morton, said: "The results left little doubt that job growth is now moving along a firm track. November marked the 10th consecutive month of job growth in excess of 200,000 with the average increase over this span totalling 250,000."
Following encouraging consumer data and higher retail sales, apparel sector peers Urban Outfitter Inc., Coach Inc. and Ross Stores Inc. were among the best performers in early trading on Thursday. Shares in Urban Outfitters alone sky rocketed more than 10% following the announcement of an upbeat outlook on sales for the current quarter.
Shares in Staples also showed robust price growth in morning trading, after Starboard Value LP confirmed its purchase of a 6% stake in the office supply retailer. |
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| | Broker Tips | | Broker tips: BP, Whitbread, Oil engineering stocks Investec came away from BP's seminar this week with largely positive comments, saying that the oil major delivered a "confident upstream update" despite the recent sharp drop in oil prices to below $65 a barrel.
However, the broker said that with uncertainties surrounding Russia and the continued fall-out from the Macondo oil spill disaster still weighing on the business, it has kept a 'hold' rating.
Cannaccord Genuity has maintained a 'hold' recommendation on Whitbread despite an in-line trading update from the Costa and Premier Inn owner on Thursday, warning of tougher comparatives ahead of the leisure company.
"Whitbread's share price has become the sector bellwether for the UK consumer and we like its budget hotels and coffee shops rollout strategy a lot, but the share price is slightly too frothy for us to be more positive now," the broker said.
UBS has eased concerns among investors about the recent sell-off in the energy services sector, saying that share-price reactions have been "overdone" despite plunging oil prices.
Potential cuts in the oil and gas spending "don't derail the investment thesis" for UK engineering stocks, UBS said. Furthermore, it said that the sector "may actually benefit via lower oil prices stimulating economic activity, and also from lower energy costs". | | |
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