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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 extend slide as Chinese data disappoints Yet more disappointing economic data from China pushed UK stocks lower for the seventh straight session on Tuesday, with markets extending losses despite plunging to an 18-month low the previous session.
Not even the news that the Bank of England (BoE) has given a clean bill of health to seven out of eight of the UK's top financial institutions could ease the slide, with sentiment still fragile after the recent sell-off.
London's FTSE 100 was trading 0.5% lower at 6,152 early deals.
Weighing on stocks was the news that Chinese factory output contracted more than expected this month. HSBC's China manufacturing purchasing managers' index declined from the break-even point of 50 in November to 49.5 in December, worse than the consensus forecast of 49.8.
The FTSE 100 sank 1.7% to finish at 6,182.72 on Monday - its worst close since June 2013 - as commodity stocks tanked on the falling oil price.
Both Brent and West Texas Intermediate (WTI) crude have fallen by over 45% this year and were continuing to set fresh five-year lows. Brent in particular dropped below $60 a barrel on Tuesday, a level not seen since July 2009.
"Fear has spread through the markets causing another dismal day for equities, oil and a surprise interest rate hike," said Rocky Muddar, a trader at TradeNext.
The recent slide in oil further hammered Russia's rouble on Monday - down 50% against the dollar this year - prompting Moscow to take the drastic move and hike interest rates from 10.5% to 17%.
Banks in focus after BoE stress tests
Seven out of eight of the UK's largest banks and building societies have passed the BoE's latest round of stress tests, with the struggling Co-operative Bank being the only lender to have failed. BoE governor Mark Carney said that the results show that "the core of the banking system is significantly more resilient".
However, both RBS and Lloyds only narrowly managed to exceed the minimum capital buffer of 4.5% under the most severe economic scenario, achieving ratios of just 4.6% and 5.0% respectively. The sector as a whole was trading lower early on.
BT Group was subdued after announcing after the close that it intends to buy UK mobile network operator EE for £12.5bn in a cash-and-stock deal. The company will be giving EE's owners Deutsche Telekom and Orange stakes of 12% and 4%, respectively.
Mining giants Fresnillo, BHP Billiton and Anglo American were in the red after the worse-than-expected data from top metals user China, while oil producers BP, Tullow Oil and Shell were continuing to track the price of crude lower. |
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| | Market Movers
techMARK 2,817.81 -0.24%
FTSE 100 6,151.93 -0.50%
FTSE 250 15,159.66 -0.49%
FTSE 100 - Risers
United Utilities Group (UU.) 912.50p +1.84%
Severn Trent (SVT) 1,937.00p +1.25%
BAE Systems (BA.) 439.40p +1.01%
Hargreaves Lansdown (HL.) 917.00p +0.88%
Rolls-Royce Holdings (RR.) 815.50p +0.74%
3i Group (III) 416.80p +0.72%
Sky (SKY) 869.00p +0.70%
Centrica (CNA) 263.90p +0.69%
Capita (CPI) 1,008.00p +0.60%
Imperial Tobacco Group (IMT) 2,693.00p +0.49%
FTSE 100 - Fallers
Randgold Resources Ltd. (RRS) 3,945.00p -3.64%
BP (BP.) 365.10p -2.18%
Antofagasta (ANTO) 672.50p -1.97%
Fresnillo (FRES) 698.00p -1.97%
Mondi (MNDI) 986.50p -1.94%
Anglo American (AAL) 1,078.00p -1.87%
BHP Billiton (BLT) 1,252.50p -1.84%
Tullow Oil (TLW) 352.20p -1.84%
Sainsbury (J) (SBRY) 225.20p -1.79%
Weir Group (WEIR) 1,683.00p -1.58%
FTSE 250 - Risers
Euromoney Institutional Investor (ERM) 1,029.00p +2.90%
Computacenter (CCC) 595.00p +1.97%
NMC Health (NMC) 475.90p +1.69%
JD Sports Fashion (JD.) 486.50p +1.50%
Caledonia Investments (CLDN) 2,290.30p +1.34%
Entertainment One Limited (ETO) 301.50p +1.14%
Pennon Group (PNN) 877.50p +1.09%
Morgan Advanced Materials (MGAM) 289.40p +1.08%
Workspace Group (WKP) 699.50p +1.01%
COLT Group SA (COLT) 127.20p +0.95%
FTSE 250 - Fallers
EnQuest (ENQ) 31.37p -8.81%
Vedanta Resources (VED) 537.50p -5.04%
Home Retail Group (HOME) 179.70p -4.92%
Centamin (DI) (CEY) 50.95p -4.86%
Evraz (EVR) 114.90p -4.33%
Polymetal International (POLY) 572.00p -3.54%
Fenner (FENR) 190.60p -3.10%
RPS Group (RPS) 200.50p -2.86%
Premier Oil (PMO) 147.60p -2.77% |
| | UK Event Calendar | | INTERIMS
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INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (EU) (10:00)
Building Permits (US) (13:30)
Housing Starts (US) (13:30)
New Car Registrations (EU) (10:00)
ZEW Survey (EU) (10:00)
ZEW Survey (GER) (10:00)
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Domino Printing Sciences, National Express Group, Petrofac Ltd.
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks decline as oil prices edge lower European stocks slid despite Eurozone manufacturing growth rising more than expected, with sentiment dampened by oil prices hitting a new five-year low.
Markit's purchasing managers' index for euro-area manufacturing rose to 50.8 in December from 51.1 a month earlier, compared to forecasts for a reading of 50.5. A reading above 50 signals expansion.
A report at 09:30 London time may show UK inflation rose 1.2% year-on-year in November following a 1.3% increase a month earlier, according to consensus forecasts.
ZEW at 10:00 releases its German economic sentiment index which is expected to jump to 20 in December from 11.5.
The report comes amid speculation that the European Central Bank (ECB) will introduce full-on quantitative easing to address the stagnant economy and low inflation.
Meanwhile, falling oil prices continued to weigh on energy stocks including Petroleum Geo-Services ASA and Technip SA.
Brent crude and West Texas Intermediate crude were below the $60 per barrel mark in morning trade.
UK banks pass stress tests
Seven out of eight of the UK's largest banks and building societies have passed the Bank of England's (BoE) latest round of stress tests, with the struggling Co-operative Bank being the only lender to have failed. Royal Bank of Scotland and Lloyds, however, only narrowly scraped through the requirements.
Orange SA gained on news BT Group started exclusive talks to acquire EE, the British wireless venture Orange owns with Deutsche Telekom AG, for £12.5bn.
Repsol declined after saying it will buy Talisman Energy for $8 per common share in an all-cash deal. |
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| | US Market Report | | US close: Markets in decline after brief boost for oil and gas sector amid Libyan closure US stocks fell on Monday despite a positive start to the day as oil prices continue to slide amid higher than expected US industrial production numbers.
The Dow Jones Industrials lost 0.58% to end the session at 17,181 while the Nasdaq Composite fell 1.04% to finish at 4,605 and the S&P 500 dropped 0.62% to 1,990.
Front month West Texas crude futures slipped 4.539% to $55.30 per barrel on Monday while Brent crude futures declined 2.198% to $60.52 per barrel.
Brent crude futures briefly advanced early in the day after news hit that two Libyan oil terminals were closing due to fight break-outs.
Market analyst Alastair McCraig from IG said: "Regardless of how healthy the US economic data has been of late, Europe's collapse has dragged US equities with it."
"Even with the bounce seen in oil during Asian trading hours, pressure of oversupply looks likely to be in place for some time to come with UAE oil ministers expecting oil to get as low as $40 a barrel before OPEC changes its stance on production levels."
Capital Economics added: "The sharp drop in oil prices has played a major role in the recent poor performance of the MSCI Frontier Markets (FM) Index, in which a small number of oil exporting countries have large weightings."
"Indeed, the index is on course to underperform the MSCI Emerging Markets (EM) Index in Q4 for the first time since 2012. Given that we expect oil prices to remain low, we think the FM index is unlikely to outperform its EM counterpart significantly anytime soon.
"Nonetheless, we think the outlook for the equity markets in a number of smaller countries included in the FM index is relatively bright."
Over on COMEX, gold futures for delivery in February 2015 slipped by 2.40% to $1,193.20.
US 10-year Treasury yields were up by three basis points to 1.67% at the end of the day.
The dollar was up against the pound and the euro but fell against the yen.
Companies in the energy sector were mixed following today's news. Anadarko Petroleum dropped by 1.91% to 72.01 while Nabors Industries advanced by 2.8% to 10.28.
S&P 500 - Risers
Diamond Offshore Drilling Inc. (DO) $35.27 +5.60%
Petsmart Inc. (PETM) $80.97 +4.25%
Alliance Data Systems Corp. (ADS) $282.49 +2.98%
Oracle Corp. (ORCL) $41.11 +2.90%
Nabors Industries Ltd. (NBR) $10.28 +2.80%
Staples Inc. (SPLS) $16.85 +2.34%
Mylan Inc. (MYL) $54.52 +2.25%
Range Resources Corp. (RRC) $55.39 +2.23%
GameStop Corp. (GME) $32.93 +1.95%
Red Hat Inc. (RHT) $58.95 +1.87%
S&P 500 - Fallers
Newmont Mining Corp. (NEM) $17.92 -5.93%
Vertex Pharmaceuticals Inc. (VRTX) $112.88 -4.78%
Ford Motor Co. (F) $14.28 -4.74%
Avon Products Inc. (AVP) $9.15 -4.59%
Adobe Systems Inc. (ADBE) $73.04 -3.92%
QEP Resources Inc (QEP) $18.64 -3.77%
Regeneron Pharmaceuticals Inc. (REGN) $401.01 -3.71%
Freeport-McMoRan Inc (FCX) $21.03 -3.44%
Yum! Brands Inc. (YUM) $70.63 -3.05%
Amgen Inc. (AMGN) $159.60 -3.00%
Dow Jones I.A - Risers
Boeing Co. (BA) $122.08 +1.08%
Exxon Mobil Corp. (XOM) $86.90 +0.35%
AT&T Inc. (T) $32.25 +0.28%
Home Depot Inc. (HD) $100.05 +0.27%
Wal-Mart Stores Inc. (WMT) $83.94 +0.16%
Dow Jones I.A - Fallers
McDonald's Corp. (MCD) $88.46 -2.38%
Goldman Sachs Group Inc. (GS) $185.54 -1.74%
International Business Machines Corp. (IBM) $153.06 -1.49%
Chevron Corp. (CVX) $100.86 -1.48%
JP Morgan Chase & Co. (JPM) $59.16 -1.47%
Merck & Co. Inc. (MRK) $56.95 -1.33%
General Electric Co. (GE) $24.59 -1.21%
American Express Co. (AXP) $90.04 -1.05%
Intel Corp. (INTC) $35.92 -0.84%
Coca-Cola Co. (KO) $40.57 -0.83%
Nasdaq 100 - Risers
Staples Inc. (SPLS) $16.85 +2.34%
Mylan Inc. (MYL) $54.52 +2.25%
Expeditors International Of Washington Inc. (EXPD) $45.48 +1.81%
Ross Stores Inc. (ROST) $92.05 +1.62%
Broadcom Corp. (BRCM) $42.29 +1.56%
Bed Bath & Beyond Inc. (BBBY) $73.14 +1.23%
Fiserv Inc. (FISV) $68.97 +0.91%
Paychex Inc. (PAYX) $46.51 +0.89%
Symantec Corp. (SYMC) $25.44 +0.71%
Dollar Tree Inc (DLTR) $68.60 +0.68%
Nasdaq 100 - Fallers
Vimpelcom Ltd Ads (VIP) $3.38 -9.76%
Vertex Pharmaceuticals Inc. (VRTX) $112.88 -4.78%
Adobe Systems Inc. (ADBE) $73.04 -3.92%
Regeneron Pharmaceuticals Inc. (REGN) $401.01 -3.71%
Illumina Inc. (ILMN) $178.28 -3.27%
Amgen Inc. (AMGN) $159.60 -3.00%
Starbucks Corp. (SBUX) $80.89 -2.83%
Biogen Idec Inc. (BIIB) $335.80 -2.52%
Liberty Media Corporation - Class A (LMCA) $33.66 -2.35% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: BT/EE, Russian interest rates, Sydney siege.. BT has rejected a simpler takeover of O2 in favour of exclusive talks to buy Britain's biggest mobile operator, EE, for £12.5bn. However, according to The Telegraph, the combined entity will control "an unrivalled chunk of Britain's mobile airwaves" and the merger is likely to raise regulatory concerns.
The Financial Times reports that Russia's central bank has lifted its benchmark interest rate from 10.5% to 17%, just five days after the last rate hike. "The decision was driven by the need to limit the risks of devaluation and inflation, which have recently significantly increased," the central bank said in a statement.
The gunman who held a group of people hostage in a café in the middle of Sydney's financial district was killed along with two hostages as Australian officers stormed the building, according to The Times.
Chancellor George Osborne has said the plunge in the oil price is "overall a very good thing" for Britain and Western economies, The Telegraph reports. While he acknowledged that the UK has an important oil and gas industry, he said the recent collapse in prices would be a "net positive".
Big Six energy group EDF could be in line with a £3.3bn windfall over the new three years on the back of a new controversial government plan to pay power companies to guarantee their help in keeping the UK's lights on, The Guardian writes.
Guy Hands' private-equity firm Terra Firma is mulling a sale of its 68.6% stake in renewable energy group Infinis Energy, according to The Scotsman. The holding is worth £450m following the company's flotation last year. | | |
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