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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: Sell-off continues as UK resource stocks tank The dramatic sell-off on the FTSE 100 continued into its fifth straight day on Friday as a weak finish on Wall Street and disappointing data from China hammered already-fragile sentiment on the market. London's benchmark index was down a staggering 1.3% at 6,377 early on, dropping below the 6,400 level for the first time since late October.
The Footsie has now lost well over 5% of its value this week alone and has not closed below current levels since 27 October when it settled at 6,363.46.
US markets had started on the front foot on Thursday after a surprise acceleration in retail sales growth in November and an unexpected fall, albeit small, in weekly jobless claims.
However, ongoing downwards pressure on oil prices - West Texas Intermediate dropped below the $60-per-barrel mark to levels not seen since July 2009 - began to weigh heavily on energy stocks by the end of the day, prompting the Dow and S&P 500 to pull back sharply from their intraday highs.
Meanwhile, as CMC Markets analyst Jasper Lawler explains, improving US data has become a "double-edged sword for markets" given its potential impact on monetary policy. The Federal Reserve's next meeting is on Wednesday 17 December.
"The trouble is that when markets are largely driven by liquidity, the good news about the US economy is decreasing the timetable for how long that liquidity will last," Lawler said.
A raft of economic data was released in China overnight, and while retail sales and fixed asset investment figures were largely in line with forecast, industrial production growth slowed more than expected from 7.7% to 7.2%.
"Efforts to clean-up Beijing's air ahead of the APEC summit, which disrupted factory activity in parts of northern China last month, probably contributed to the weakness," said economist Julian Evans-Pritchard from Capital Economics.
In other economic data on Friday, investors will be on the lookout for European industrial production figures, the US producer price index and the University of Michigan index measuring US consumer confidence.
BT falls amid M&A rumours, resource stocks extend drop
Shares of telecoms giant BT were lower amid speculation that the firm will soon decide whether it wants to buy Telefonica's UK mobile network O2 or opt for Orange and Deutsche Telekom's EE.
Both O2 and EE's owners were apparently willing to accept BT shares as part of the payment in a deal that could be announced as early as Friday, according to sources cited by Reuters.
After a weak performance the previous day, stocks in the heavyweight mining sector were extending falls as commodity prices weakened. Anglo American, BHP Billiton, Glencore, Rio Tinto and Antofagasta were all registering steep declines.
Energy stocks such as Tullow Oil, BG Group, Shell and BP were also tracking the price of crude lower.
Banking stocks were also weaker, with HSBC, Barclays, Standard Chartered, RBS and Lloyds all in the red.
Utilities Severn Trent and United Utilities were higher, though SSE was lower after it was named as one of the three energy providers being fined a combined £4.6m by Ofgem for failing to meet environmental targets. |
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| | Market Movers
techMARK 2,878.20 -1.20%
FTSE 100 6,376.91 -1.31%
FTSE 250 15,437.96 -1.44%
FTSE 100 - Risers
United Utilities Group (UU.) 900.50p +3.27%
Severn Trent (SVT) 1,955.00p +2.09%
Weir Group (WEIR) 1,704.00p +0.53%
Compass Group (CPG) 1,063.00p +0.09%
FTSE 100 - Fallers
Tullow Oil (TLW) 356.30p -4.43%
Petrofac Ltd. (PFC) 692.50p -4.35%
Persimmon (PSN) 1,515.00p -3.69%
Anglo American (AAL) 1,139.00p -2.90%
Randgold Resources Ltd. (RRS) 4,143.00p -2.77%
Rolls-Royce Holdings (RR.) 810.50p -2.53%
Hargreaves Lansdown (HL.) 929.00p -2.52%
Coca-Cola HBC AG (CDI) (CCH) 1,295.00p -2.48%
Smiths Group (SMIN) 1,032.00p -2.46%
GKN (GKN) 327.50p -2.44%
FTSE 250 - Risers
Spirent Communications (SPT) 73.55p +3.30%
AL Noor Hospitals Group (ANH) 956.50p +0.68%
Just Retirement Group (JRG) 142.30p +0.57%
Pets at Home Group (PETS) 202.10p +0.55%
SSP Group (SSPG) 282.40p +0.50%
Big Yellow Group (BYG) 572.00p +0.35%
Telecity Group (TCY) 792.00p +0.19%
Bwin.party Digital Entertainment (BPTY) 109.30p +0.18%
Pace (PIC) 349.30p +0.14%
LondonMetric Property (LMP) 150.90p +0.13%
FTSE 250 - Fallers
Drax Group (DRX) 504.50p -10.63%
EnQuest (ENQ) 32.63p -8.85%
Carillion (CLLN) 323.00p -6.10%
Fenner (FENR) 201.80p -4.68%
Hunting (HTG) 483.30p -4.67%
Afren (AFR) 34.54p -4.59%
Supergroup (SGP) 799.50p -4.25%
Premier Oil (PMO) 162.10p -4.03%
Man Group (EMG) 143.30p -3.89% |
| | UK Event Calendar | | Friday 12 December
INTERIM DIVIDEND PAYMENT DATE
Braemar Shipping Services, Downing Three VCT D Share , Downing Three VCT F Shs, Downing Three VCT H Shs, Downing Two VCT D Share , Downing Two VCT F Shs , Downing Two VCT G Shs, Elderstreet VCT, Energy Technique, Foresight VCT Planned Exit Shares, Martin Currie Pacific Trust, TalkTalk Telecom Group , Young & Co's Brewery 'A' Shares, Young & Co's Brewery (Non-Voting)
QUARTERLY PAYMENT DATE
Barclays, Carnival, Energy XXI (DI)
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Import and Export Price Indexes (US) (13:30)
Industrial Production (EU) (10:00)
Producer Price Index (US) (13:30)
U. of Michigan Confidence (Prelim) (US) (14:55)
GMS
JPMorgan Japan Smaller Companies Trust, Mithras Inv Trust, Surface Transforms
IMSS
Bellway
SPECIAL DIVIDEND PAYMENT DATE
Keystone Inv Trust
EGMS
Black Sea Property Fund Ltd (The), GLI Finance Limited, Lukoil 'B' GDR (Reg S)
AGMS
Avanti Capital, Bellway, Egdon Resources, Gleeson (M J) Group, Henderson International Income Trust, Northamber, World Careers Network
FINAL DIVIDEND PAYMENT DATE
Avingtrans, BlackRock Greater Europe Inv Trust, DX (Group), London Finance & Investment Group, Origin Enterprises |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks retreat, led by energy and mining stocks European stocks retreated as energy companies slid amid a drop in oil prices. Royal Dutch Shell and Eni SpA were among the biggest fallers as Brent crude sat at $63.28 per barrel and West Texas Intermediate was at $59.32 in morning trade.
Oil prices have taken a hit after OPEC cut its estimate for 2015 global crude demand and data revealed a surprise increase in US stockpiles.
Miners were also lower, including BHP Billiton and Rio Tinto, after a report showed factory production in China slowed in November, missing economists' forecasts.
In economic data, a report on Eurozone industrial production at 10:00 London time is projected to show a 0.7% increase in October following a 0.6% increase a month earlier.
In the UK, construction output data will be released at 09:30 with analysts expecting a 1.3% rise in October after a 3.5% increase the prior month.
Later on in the US, the University of Michigan's consumer confidence report is due at 14:55. The index is estimated to rise to 89.5 in December from 88.8 in November.
The Federal Reserve is monitoring economic data as it determines when to raise interest rates. |
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| | US Market Report | | US close: Markets advance following surprising retail and initial jobless results US stocks increased on Thursday amid higher-than-expected November retail sales and the lowest rate of initial jobless claims in three years. The Dow Jones Industrials rose 0.36% to 17,596.34, while the S&P 500 increased 0.45% to 2,035.33 and Nasdaq went up 0.52% to 4,708.16. 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%. Market analyst for IG Alastair McCraig said: “The release of US monthly retail sales figures, much better than expected, has altered the slightly gloomy feel that the lacklustre ‘Black Friday’ results had given the retail sector. “Not that any were needed, but this does confirm that the US economy has managed to keep its recovery in place regardless of Europe’s woes.” In the meantime, the US also recorded its lowest initial jobless claim index in three weeks on Thursday, following on from the nation’s falling unemployment rate. Demand for regular state unemployment-insurance benefits slid 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. Barclays Research said: “While initial claims have resumed their downward trend following volatility in recent weeks, we look to next week’s report to better gauge the near-term trend in continuing claims. “On balance, labor market separations have remained at low levels thus far in Q4, and we expect this positive trend to continue in the coming months.” The dollar advanced against both the yen and the euro while the US generic government ten-year yield was flat at 2.16%. Meanwhile, front month West Texas crude futures fell by 2.9% to just $59.22 per barrel and front month Brent crude futures dropped 1.5% to $63.27 per barrel. Over on COMEX, gold futures for delivery in February 2015 were also down 0.09% to $1,228.30 per ounce. In corporate news, positive consumer data and a boost in retail sales saw the apparel sector rise. Urban Outfitters increased 7.6% to 32.29 while Coach grew 2.5% to 34.46 and Ross Stores improved by 1.7% to hit 90.82 Used-car retailer Carmax also advanced 1.04% to 59.561 following Thursday’s release of encouraging auto sales data for the month. S&P 500 - Risers
Staples Inc. (SPLS) $16.10 +8.67%
Urban Outfitters Inc. (URBN) $32.29 +7.60%
Walgreen Co. (WAG) $73.01 +7.13%
Delta Airlines Inc. (DAL) $48.33 +4.57%
Hospira Inc. (HSP) $62.08 +4.53%
Prudential Fincl Inc. (PRU) $89.79 +3.95%
Kellogg Co. (K) $67.10 +3.57%
Diamond Offshore Drilling Inc. (DO) $33.93 +3.38%
Vertex Pharmaceuticals Inc. (VRTX) $120.78 +3.05%
Sherwin-Williams Co. (SHW) $254.21 +3.00% S&P 500 - Fallers
Peabody Energy Corp. (BTU) $7.41 -4.63%
Freeport-McMoRan Inc (FCX) $22.98 -4.09%
Allegheny Technologies Inc. (ATI) $32.10 -3.20%
QEP Resources Inc (QEP) $20.00 -3.15%
Nabors Industries Ltd. (NBR) $10.51 -3.13%
Garmin Ltd. (GRMN) $53.28 -3.02%
Alcoa Inc. (AA) $15.16 -3.01%
Owens-Illinois Inc. (OI) $24.86 -2.51%
Chesapeake Energy Corp. (CHK) $16.71 -2.51%
Transocean Ltd. (RIG) $17.02 -2.13% Dow Jones I.A - Risers
Home Depot Inc. (HD) $100.27 +1.34%
McDonald's Corp. (MCD) $90.97 +1.08%
Wal-Mart Stores Inc. (WMT) $83.83 +1.02%
Goldman Sachs Group Inc. (GS) $193.54 +0.80%
Intel Corp. (INTC) $36.70 +0.77%
JP Morgan Chase & Co. (JPM) $61.14 +0.76%
AT&T Inc. (T) $32.71 +0.68%
Unitedhealth Group Inc. (UNH) $99.73 +0.65%
Exxon Mobil Corp. (XOM) $89.20 +0.60%
Microsoft Corp. (MSFT) $47.17 +0.58% Dow Jones I.A - Fallers
Merck & Co. Inc. (MRK) $59.34 -1.07%
Boeing Co. (BA) $123.37 -1.02%
Nike Inc. (NKE) $96.93 -0.75%
Pfizer Inc. (PFE) $31.65 -0.66%
Caterpillar Inc. (CAT) $92.69 -0.35%
Coca-Cola Co. (KO) $41.53 -0.17% Nasdaq 100 - Risers
Staples Inc. (SPLS) $16.10 +8.67%
Vertex Pharmaceuticals Inc. (VRTX) $120.78 +3.05%
Mattel Inc. (MAT) $31.15 +2.94%
eBay Inc. (EBAY) $56.78 +2.74%
Facebook Inc. (FB) $77.73 +2.03%
Baidu Inc. (BIDU) $229.23 +1.83%
Monster Beverage Corp (MNST) $108.39 +1.77%
Ross Stores Inc. (ROST) $90.82 +1.70%
PACCAR Inc. (PCAR) $69.45 +1.67%
Illumina Inc. (ILMN) $186.83 +1.62% Nasdaq 100 - Fallers
Garmin Ltd. (GRMN) $53.28 -3.02%
Vimpelcom Ltd Ads (VIP) $3.93 -2.00%
Xilinx Inc. (XLNX) $46.04 -0.78%
Activision Blizzard Inc. (ATVI) $20.34 -0.73%
Sba Communications Corp. (SBAC) $109.96 -0.66%
Citrix Systems Inc. (CTXS) $62.31 -0.54%
Expedia Inc. (EXPE) $87.32 -0.52%
Mylan Inc. (MYL) $54.71 -0.51%
Gilead Sciences Inc. (GILD) $104.31 -0.51%
Tesla Motors Inc (TSLA) $208.88 -0.46% |
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| | Newspaper Round Up | | Friday newspaper round-up: Water bills, Barclays, US spending bill... The Telegraph has said that household water bills across England and Wales are to fall by 5% in real terms by 2019-2020 following a decision by Ofwat. "The ruling will almost certainly hit the profits of the UK's water companies," the paper said. New York's financial regulator is looking at whether Barclays and Deutsche Bank used "complex computer algorithms" to rig the currency markets, according to The Times. The investigation is said to be at an early stay and has reached no firm conclusions.
The House of Representatives "narrowly passed" a $1trn spending package on Thursday night, just two and a half hours before the deadline to avert a shutdown of the federal government, the Financial Times reported. "The day's chaotic events were another reminder of the capital's increasingly polarised political climate, as well as a signal that fresh faultlines may lie ahead in a Democratic party still regrouping after its stunning losses in November's midterm elections," the paper said.
France is falling into deflation as manufacturers have had to cut prices to retain their market share while the European Central Bank has been pressured into taking action before it's too late, The Telegraph has reported. Meanwhile, the Bank of Italy has now come out to warn that a further price drop would have "extremely grave consequences for economies with very high public debt", according to the publication.
In-fighting has swept through the UK Independence Party (UKIP) as officials have claimed that one of the party's primary sources of funding has pressured them into accepting former Conservative MP Neil Hamilton as a parliamentary candidate, according to the Financial Times.
According to The Guardian, sports retail giant Sports Direct has refused to rule out the opportunity of purchasing stakes in rival retailers despite a £23m drop in the value of strategic investments relating to Tesco and Debenhams. "We have a history of strategic stakes and that may or may not continue," said Dave Forsey, the group's chief executive.
Markets in Greece tumbled for a third consecutive day as a senior minister warned that the government was still short of sufficient support to avoid a general election that could lead to anti-austerity left wingers taking control of the country, reported The Times. | | |
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