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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: UK stocks sink 2% on Greek exit fears, oil-price plunge Concerns about the Greek crisis and continuing downwards pressure on oil prices drove London's stock market 2% lower on Monday, with investors scaling back their appetite for risk ahead of a busy week.
The FTSE 100 finished the session down 130.64 points at 6,417.16, its lowest close since 17 December as stocks in the oil and mining sectors dropped sharply.
Analyst Alastair McCaig from IG said that "trading screens [were] a sea of red as talk of a Greek exit from the Eurozone drives equity markets lower".
Greek Prime Minister Antonis Samaras said the policies of opposition party Syriza, which is leading polls, could drive Greece into default and out of the 19-nation European single currency.
"The rise of the anti-austerity Syriza party has sent shivers down the spine of dealers as they are well positioned for the election this month. A victory for the left-wing party does not automatically mean a Greek exit but traders will certainly see it that way," McCaig said.
Meanwhile, crude prices declined for the third consecutive day on the back of record supplies from Russia and Iraq. Brent crude dropped below $55 a barrel (bbl) for the first time since May 2009.
Investors were also showing caution ahead of a busy week on the economic calendar. Inflation figures from the Eurozone, a Bank of England rate decision and the US jobs report are all due for release over the coming days, along with service-sector data from across the globe.
Travel stocks rise, but resource shares tank
Hopes about lower fuel costs were boosting share prices in the travel sector with Carnival, IAG and Easyjet flying high by the close.
Brent crude was trading down nearly 6% at $53.15/bbl. As such, oil producers such as Shell, BP and Tullow Oil and energy services group Weir were under pressure.
BP was also weighed down by speculation that the recent collapse of oil and a weak rouble will hit its fourth-quarter results, due to its exposure to Russia through its stake in Rosneft.
Mining stocks were also down, including BHP Billiton, Anglo American and Glencore. Copper hit its lowest in over four years the previous session and was down a further 1.5% at $6,149.75 a metric tonne in afternoon trade.
However, Randgold Resources and Fresnillo were on the rise as gold and silver prices increased. Gold was up for the second straight day as concerns about a potential Greek exit spurred safe-haven demand.
Department-store chain Marks & Spencer was falling sharply after Societe Generale downgraded its rating on the stock from 'buy' to 'hold' following a recovery in the shares since the company's results in November. The bank said the "shares are well rated versus recent history and so we downgrade to 'hold'". |
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| | Market Movers
techMARK 2,941.96 -0.57%
FTSE 100 6,417.16 -2.00%
FTSE 250 15,921.68 -0.81%
FTSE 100 - Risers
Randgold Resources Ltd. (RRS) 4,536.00p +2.79%
Carnival (CCL) 2,980.00p +1.71%
Ashtead Group (AHT) 1,182.00p +1.46%
International Consolidated Airlines Group SA (CDI) (IAG) 493.50p +1.33%
easyJet (EZJ) 1,703.00p +1.19%
Land Securities Group (LAND) 1,162.00p +0.87%
Smith & Nephew (SN.) 1,175.00p +0.86%
Meggitt (MGGT) 513.50p +0.59%
British Land Co (BLND) 766.50p +0.59%
Fresnillo (FRES) 768.50p +0.46%
FTSE 100 - Fallers
Weir Group (WEIR) 1,764.00p -6.32%
BP (BP.) 389.70p -5.06%
Anglo American (AAL) 1,126.50p -4.94%
Glencore (GLEN) 282.50p -4.91%
Royal Dutch Shell 'B' (RDSB) 2,128.50p -4.79%
BHP Billiton (BLT) 1,316.50p -4.46%
Tullow Oil (TLW) 396.40p -4.27%
Marks & Spencer Group (MKS) 456.80p -4.25%
Sainsbury (J) (SBRY) 233.50p -4.07%
Royal Dutch Shell 'A' (RDSA) 2,080.00p -4.06%
FTSE 250 - Risers
Hikma Pharmaceuticals (HIK) 2,130.00p +7.47%
Alent (ALNT) 350.70p +4.07%
Man Group (EMG) 165.40p +2.80%
Poundland Group (PLND) 330.70p +2.77%
Nostrum Oil & Gas (NOG) 452.00p +2.73%
Bank of Georgia Holdings (BGEO) 2,162.00p +2.61%
IP Group (IPO) 212.00p +2.51%
Ted Baker (TED) 2,253.00p +2.41%
RPC Group (RPC) 515.00p +2.39%
Pace (PIC) 348.00p +2.17%
FTSE 250 - Fallers
Drax Group (DRX) 421.50p -7.26%
Premier Oil (PMO) 153.10p -7.04%
Afren (AFR) 42.52p -6.77%
Hunting (HTG) 490.00p -6.49%
Petrofac Ltd. (PFC) 665.00p -6.47%
Oxford Instruments (OXIG) 1,199.00p -6.33%
Wood Group (John) (WG.) 578.50p -6.01%
Lonmin (LMI) 166.60p -4.85%
Evraz (EVR) 145.00p -4.61%
Kaz Minerals (KAZ) 249.00p -4.49% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks in the red on oil price plunge, Grexit concerns European stocks were in the red as oil prices plunged and as reports emerged that Greece may leave the European single-currency area.
Energy stocks, including Total SA and BP, declined after oil prices fell for a third day.
Brent crude dropped 6.6% to $52.90 per barrel in afternoon trade, according to the ICE.
Meanwhile, Germany's Der Spiegel magazine reported that German Chancellor Angela Merkel is looking to accept a Greek euro exit ahead of the Mediterranean country's elections in three weeks.
Prime Minister Antonis Samaras said the policies of opposition party Syriza, which is leading polls, could drive Greece into default and out of the 19-nation European single currency. Syriza is gaining popularity on promises to increase wages, persuade the euro-area to write off Greek debt and boost government jobs.
German inflation, Eurozone investor confidence
German inflation eased more than expected in December, according to preliminary estimates, adding to speculation that the European Central Bank (ECB) will introduce full-blown quantitative easing at the 22 January meeting to deflect risks of deflation.
German consumer prices rose by 0.2% year-on-year last month, compared to 0.6% a month earlier. Analysts had predicted 0.3% growth.
The report comes before Wednesday's Eurozone inflation report which is forecast to show a further slowdown.
In other Eurozone data, Sentix's index on investor sentiment in the euro-area increased to 0.9 in January from -2.5 a month earlier, well ahead of forecasts of -1.0.
ECB President Mario Draghi said last week that the risk of deflation "cannot be entirely excluded", adding to QE bets.
In the UK, Markit's purchasing managers' index for construction in December fell to 57.6 from 59.4 a month earlier, missing forecasts of 59. A reading above 50 signals expansion.
Airlines rally
International Consolidated Airlines Group SA, Air France-KLM Group, Ryanair Holdings and Easyjet gained amid bets that airlines will benefit with lower fuel costs.
Bayerische Motoren Werke AG slumped as the carmaker agreed to give 5.1bn yuan to its Chinese distributors to help cover their losses after the retailers threatened to stop ordering cars from the manufacturer.
Actelion advanced as Bank of America Corp. recommended buying the Swiss drugmaker.
Eutelsat Communications SA jumped after Credit Suisse Group AG upgraded the shares to the equivalent of 'buy'. |
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| | US Market Report | | US open: Wall Street drops early on as energy shares tank US equity markets suffered heavy losses on Monday as Wall Street tracked European indices lower with energy stocks dropping sharply.
The Dow Jones Industrial Average was down 1% at 17,656 by 10:03 in New York, while the Nasdaq declined 0.8% and the S&P 500 fell by another 1.1%.
"With little in the way of significant data today, the US markets couldn't help but follow the tone of the day set by a chaotic Europe this morning, leading the Dow Jones to continue its regression away from the 18,000 level it hit pre-Christmas," said analyst Connor Campbell from Spreadex.
Inflation figures from the Eurozone, a Bank of England rate decision and the US jobs report are all due for release over the coming days, along with service-sector data from across the globe.
Oil stocks were under heavy selling pressure on Monday as crude prices declined for the third consecutive day on the back of record supplies from Russia and Iraq. Brent crude dropped below $55 a barrel (bbl) for the first time since May 2009.
Meanwhile, the euro dropped to a nine-year low against the dollar amid concerns that Greece might leave the Eurozone should anti-austerity party Siriza win the elections later this month.
Energy stocks tank
Energy majors Anadarko Petroleum, Devon Energy, Chevron Corporation, Occidental Petroleum and ConocoPhillips were among the worst performers after the opening bell.
Strong sales figures from auto giants General Motors weren't enough to push the stock higher, despite sales in December rising by a better-than-expected 19%. Ford's sales rose just 1%, causing the stock to drop sharply.
Boston Scientific surged after JPMorgan upgraded its recommendation on the medical research group to 'overweight'.
In other markets, West Texas Intermediate futures for February delivery were down 3.5% at $50.85/bbl, while Brent declined 4.2% to $54.03/bbl. |
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| | Broker Tips | | Broker tips: Tesco, Royal Mail, Pub companies With all three of the listed UK supermarkets due to report on Christmas trading this week, Oriel Securities has predicted that Tesco is the most likely to "surprise on the upside".
Like-for-like (LFL) sales at Tesco "should benefit from improved customer service and aggressive promotional and vouchering activity", the broker said. However, it warned that forecasts "should equally be fully-loaded for the costs of this".
The collapse of troubled parcel-delivery firm City Link is "not a major positive" for rival Royal Mail Group (RMG), according to UBS which kept its 'neutral' rating on the FTSE 100 group on Monday.
Analyst Dominic Edridge from the Swiss bank said: "One of the problems RMG has faced has been the growth in parcel market capacity (including DPD, Hermes, UK Mail and, especially Amazon). Assuming Citylink's capacity disappears we believe this should offset the increase from Amazon - but not the others."
Numis Securities said it expects companies in the pub industry to report "positive" trading over Christmas when they update the market over the coming weeks. | | |
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