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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: Stocks bounce off one-month low on Chinese stimulus hopes UK stocks edged higher on Wednesday after a steep sell-off sent the FTSE 100 to its lowest levels in more than a month. London's benchmark index was up 0.3% at 6,549 early on, after settling at 6,529.47 the previous day.
Political uncertainty in Greece and concerns about lending in China hammered market sentiment on Tuesday, sending the FTSE 100 to its lowest finish since 5 November. The Athens and Shanghai equity indices closed down 11% and 5% respectively.
US stock indices closed slightly lower on Wall Street, but managed to erase earlier heavy losses before the end of trade.
"Santa Claus got lost somewhere between Greece and China yesterday but the US launched a late rescue mission to give markets a chance of a happy Xmas," said analysts at Deutsche Bank.
Concerns about China were still in focus on Wednesday after price data showed that inflation fell to a five-year low of 1.4% in November. This was down from 1.6% in October and surprised analysts who had expected no change.
Head of research Mike van Dulken from Accendo Markets said the figures were "adding to global growth worries but reviving hopes of more stimulus being forthcoming from the government/People's Bank of China to help kick-start inflation/gross domestic product, offsetting yesterday's fears of tighter Chinese lending rules crimping growth".
Ashtead jumps after strong H1
Shares in Ashtead surged after the equipment-rental firm reported a big jump in first-half profits and lifted its full-year forecast. The company said that underlying pre-tax profit jumped by 33% to a record £265.5m in the six months to 31 October, and guided to full-year results "ahead of our previous expectations".
Rolls-Royce gained after announcing a £1bn share buyback following the competition of the sale of its energy gas turbine and compressor business to Siemens.
Natural gas giant BG Group was higher after saying it is set to raise $5bn from the sale of a gas pipeline in Australia which is planned to go towards reducing debt and future growth investments.
Banking group Standard Chartered declined on the news that it will face a further three years of being under scrutiny from US authorities, after it was fined over £400m in 2012 for breaching American sanctions on Iran.
Travel stocks Easyjet, IAG and Carnival were making decent gains after falling the previous session.
Asset manager Aberdeen was lower after a Citigroup downgrade to 'neutral', while Shell's shares were weighed down by a ratings cut by Deutsche Bank to 'hold'. |
| | Market Movers
techMARK 2,918.74 +0.42%
FTSE 100 6,548.97 +0.30%
FTSE 250 15,798.20 +0.53%
FTSE 100 - Risers
Ashtead Group (AHT) 1,145.00p +6.31%
Tullow Oil (TLW) 406.20p +4.07%
Carnival (CCL) 2,809.00p +3.31%
Fresnillo (FRES) 754.00p +2.86%
Rolls-Royce Holdings (RR.) 882.00p +2.50%
London Stock Exchange Group (LSE) 2,195.00p +1.86%
Capita (CPI) 1,051.00p +1.84%
easyJet (EZJ) 1,654.00p +1.78%
Hargreaves Lansdown (HL.) 948.50p +1.72%
ARM Holdings (ARM) 958.50p +1.64%
FTSE 100 - Fallers
GlaxoSmithKline (GSK) 1,386.00p -1.63%
Standard Chartered (STAN) 936.80p -0.79%
Burberry Group (BRBY) 1,658.00p -0.66%
Persimmon (PSN) 1,546.00p -0.58%
Royal Dutch Shell 'A' (RDSA) 2,073.00p -0.55%
Vodafone Group (VOD) 222.55p -0.47%
Next (NXT) 6,500.00p -0.46%
Rio Tinto (RIO) 2,838.00p -0.40%
Petrofac Ltd. (PFC) 739.00p -0.40%
Royal Dutch Shell 'B' (RDSB) 2,146.00p -0.39%
FTSE 250 - Risers
Serco Group (SRP) 177.30p +7.91%
Afren (AFR) 40.59p +4.56%
Alent (ALNT) 364.60p +3.73%
Brown (N.) Group (BWNG) 338.10p +3.36%
Beazley (BEZ) 277.10p +2.63%
Savills (SVS) 631.00p +2.60%
Supergroup (SGP) 850.00p +2.41%
Pace (PIC) 358.70p +1.99%
Betfair Group (BET) 1,493.00p +1.98%
Spirent Communications (SPT) 67.50p +1.89%
FTSE 250 - Fallers
Stagecoach Group (SGC) 386.10p -5.23%
Micro Focus International (MCRO) 1,106.00p -2.21%
Hochschild Mining (HOC) 86.70p -1.48%
Rank Group (RNK) 161.00p -1.23%
Ferrexpo (FXPO) 65.40p -1.21%
Bellway (BWY) 1,902.00p -1.09%
Fisher (James) & Sons (FSJ) 1,129.00p -1.05%
Dignity (DTY) 1,789.00p -0.89%
Synergy Health (SYR) 2,064.00p -0.86% |
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| | UK Event Calendar | | Wednesday 10 December
INTERIMS
Ashtead Group, Micro Focus International, Stagecoach Group
INTERIM DIVIDEND PAYMENT DATE
Burford Capital
QUARTERLY PAYMENT DATE
Canaccord Genuity Group Inc., IBM Corp., M Winkworth, Unilever
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
MBA Mortgage Applications (US) (12:00)
Treasury Budget Statement (US) (19:00)
Q2
Ashtead Group
GMS
Amati VCT , Amati Vct 2, RENN Universal Growth Investment Trust
FINALS
Alternative Networks
IMSS
Carillion
SPECIAL DIVIDEND PAYMENT DATE
Canaccord Genuity Group Inc.
EGMS
Aer Lingus Group, Litebulb Group Ltd
AGMS
ARC Capital Holdings Ltd, Falcon Oil & Gas Ltd., Fidelity Special Values, New City High Yield Fund Ltd., Renewable Energy Generation Ltd., Summit Germany Limited, Westmount Energy Ltd., YouGov
TRADING ANNOUNCEMENTS
Brown (N.) Group, Carillion, PZ Cussons
UK ECONOMIC ANNOUNCEMENTS
Balance of Trade (09:30)
FINAL DIVIDEND PAYMENT DATE
Finsbury Food Group |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rebound as fall in Chinese inflation boosts stimulus hopes European stocks rebounded following Tuesday's sell-off, as an unexpected fall in Chinese inflation fuelled speculation of further stimulus measures. China's consumer price index (CPI) dropped to 1.4% in November from 1.6% the previous month, surprising analysts who had expected it to remain unchanged.
"It is further evidence of China's slowdown but does give the People's Bank of China some flexibility to loosen monetary policy further," said CMC Markets analyst Jasper Lawler.
"The likelihood of another rate cut to follow the first may depend on industrial production and retail sales data on Friday."
In the euro-area at 15:00 London time European Central Bank (ECB) official Benoit Coeure speaks in Brussels, a day after International Monetary Fund (IMF) chief Christine Lagarde applauded the monetary authority for its measures.
In a speech given on Tuesday at the Bocconi University in Italy, Lagarde defined the ECB's steps in recent months as "bold" and insisted that the Eurozone central bank needed to "continue to play a crucial role in supporting demand".
The ECB has to boost the region's economy by cutting interest rates to record lows, taking the deposit rate into negative territory and introducing a programme of asset backed securities and covered bonds purchases.
However, the ECB is still facing calls to implement full-on quantitative easing to address dangerously low inflation and a stagnant economy.
Amid concerns of disinflation, ECB official Peter Praet said falling oil prices could push the euro-area inflation rate below zero.
"Given the potency of the current oil-price shock, the risk is that inflation may temporarily fall into negative territory in coming months," Praet said in Washington on Tuesday.
"Normally, any central bank would prefer to look through a positive supply shock. After all, lower oil prices boost real incomes and may lead to higher output in the future. But we may not have that luxury at present."
Brent crude fell 1.2% to $66.01 per barrel in morning trading, according to the ICE.
In the UK at 09:30, trade data is forecast to show the deficit narrowed in October to £2,400 from £2,838 the previous month.
Later in the US, the monthly budget statement for November will be unveiled along with mortgage applications for the week to 5 December.
TUI, Ashtead
TUI rallied as the German tour operator reported full-year earnings that exceeded analysts' estimates and forecast further growth for fiscal 2015.
Ashtead advanced after saying annual financial results will beat prior estimates.
BG Group climbed after selling a natural gas pipeline network in Australia to APA Group for $5bn. |
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| | US Market Report | | US close: Wall Street holds the line amid global sell-off US equity markets managed to close more or less unchanged despite the wave of selling which hit global financial markets on Tuesday. The tech-heavy Nasdaq Composite was the biggest stalwart, gaining 0.53% to 4,766 points. The S&P 500 on the other hand slipped 0.02% to reach 2,060 points. Even, the Dow Jones Industrials, with its greater preponderance of exporting firms among its constituents, finished the session just 0.29% lower at 17,801 points.
Reflecting the simmering tensions in financial markets, it was precious metals miners that racked up the biggest gains on the NYSE. By sectors, gains were led by Platinum & precious metals companies (6.27%) and gold miners (4.93%). Shares of consumer electronics companies also fared well nevertheless, registering gains of 5.04%.
Acting as a backdrop, the Shanghai stock exchange's main index dropped 5.43% overnight, its largest percentage decline in over five years, and its Athenian counterpart by 12.78%.
The slide in the latter was provoked by the decision of Greece's coalition government to bring forward by two months the date of the presidential elections. That change of tack seems to have been motivated by a desire to catch its anti-reform rivals flat-footed.
Time will tell, but for now at least it was investors in European equities which were caught off-sides. On average, all of the main European equity benchmarks ended the day with losses of over two percentage points each.
Russia's rouble was also a tad weaker on the day, losing 0.83% to trade at 54.24 versus the American currency, ahead of Friday's interest rate decision from the country's central bank. |
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| | Newspaper Round Up | | Wednesday newspaper round-up: StanChart, G4S/Serco, Oil services firms According to The Guardian, Standard Chartered is under fresh scrutiny from US regulators. The bank's two-year deferred prosecution agreement imposed two years ago for US breaching sanctions towards Iran has been extended for three years. US authorities, who have already fined the bank over £400m, are now looking at whether is breached sanctions rules beyond 2007. The Financial Times says that outsourcing groups G4S and Serco both won Whitehall contracts despite being "on probation" with the Cabinet Office having barred the companies from winning new government work.
Oil services firms are quickly rising to the top of the leader-board of the companies which hedge funds most like to short sell, writes The Times. Petrofac is now the third most widely shorted stock on the top-flight index, behind J Sainsbury and Wm Morrisson. Amongst its peers in the ranking of those who have fallen foul of investors are AMEC and Wood Group, followed by the likes of Ophir Energy and Tullow Oil.
Ukraine's financial fortunes are hanging by a slim thread, according to the Financial Times. To avert a collapse, Western governments will need to plug a $15bn shortfall in the terms of its bail-out, the International Monetary Fund said. That sum would be in addition to the $17bn rescue unveiled in April. It is the result, in part, of the collapse in exports to Russia. A sovereign debt default may also loom.
BG Group has raised $5bn from selling a gas project in Australia, reports The Telegraph, "as the UK-listed energy giant focuses on exploration amid falling profits".
"The government's official statisticians have admitted that they overestimated Britain's exports to the US by more than £40bn over four years," according to The Times. The paper reports that the Office for National Statistics made the announcement "quietly" last month. £40n represented 20% of total UK exports to the US between 2009-2012.
Should the price of oil hold lower then the price of a litre of oil will fall to nearly £1.05, Goldman Sach's Kevin Daly says, according to The Telegraph. That is in line with estimates from recent estimates from other experts. The impact will be to boost consumer confidence, as people are more concerned by their own pockets than they are by the warnings of shadows looming over global growth prospects, Daly added. | | |
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