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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: Weak earnings and data hit UK stocks as FTSE falls 0.6% London's FTSE 100 fell 0.6% on Tuesday, pulling back from its highest level in over four and a half months, as disappointing economic data from across the globe weighed on sentiment.
The UK benchmark index finished at 6,811.61, down 40.79 points from Monday's finish of 6,852.40, its best close since 5 September 2014.
Stock markets opened on the back foot on Tuesday morning after figures showed UK economic growth slowed to just 0.5% in the fourth quarter of 2014 due to contractions in construction and production. Economists had expected growth to come in at 0.6% after a 0.7% increase in the third quarter.
Newsflow from the States also dampened the mood after US durable goods orders unexpectedly dropped by 3.4% in December, compared with the 0.3% growth forecast.
A barrage of weak quarterly earnings from some US blue chips, including Microsoft, Procter & Gamble and Caterpillar, also saw Wall Street open with sharp losses. Investors were also showing caution ahead of results from Apple due out after the closing bell.
"The rally has turned to rout this afternoon as dismal earnings and economic data from the US see markets retreat around the globe," said analyst Chris Beauchamp from IG.
Overnight, it was revealed that industrial profits in China dropped by 8% year-on-year in December, while a measure of small business confidence in Japan also weakened in January.
Elsewhere, Russia was in focus after Standard & Poor's downgraded its credit rating to 'junk' on Monday night, while investors were still digesting the outcome of the weekend's elections in Greece after anti-austerity, far-left party Syriza won the poll and agreed to form a coalition government.
Airlines rise, Afren sinks
Shares in Easyjet ascended after the British budget airline said it now expects an increase in revenues per seat in the first half. The company said revenue per seat at constant currency should rise by 2% on last year, compared with its previous guidance of "flat to very slightly up".
Sector peer IAG also gained after Aer Lingus said it would recommend a sweetened €1.36bn takeover offer from the British Airways owner. "The board of Aer Lingus has indicated to IAG that the financial terms of the proposal are at a level at which it would be willing to recommend to Aer Lingus shareholders," IAG said in a statement.
The share price of oil group Afren collapsed nearly 70% after the company said it needs to restructure its debts or receive an equity injection due to the "significant dislocation" in the oil market. Investors are still waiting on Nigerian producer Seplat to see if it makes a firm offer for the company.
Online housing-market portal Zoopla surged as investors shrugged off the launch of Onthemarket.com, a new property site set up by estate agents hoping to break Zoopla's and Rightmove's control of the market.
Banks were under pressure, including HSBC, Barclays, Standard Chartered, RBS and Lloyds. HSBC was hit with a ratings cut at Investec from 'add' to 'hold', with the broker saying that the bank's fourth-quarter results next month could disappoint.
Dixons Carphone was a heavy faller after Morgan Stanley downgraded the stock to 'underweight', while Centrica was boosted by a Credit Suisse upgrade to 'outperform' |
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| | Market Movers
techMARK 3,063.29 -0.63%
FTSE 100 6,811.61 -0.60%
FTSE 250 16,372.74 -0.59%
FTSE 100 - Risers
Centrica (CNA) 282.70p +4.16%
Randgold Resources Ltd. (RRS) 5,595.00p +2.66%
International Consolidated Airlines Group SA (CDI) (IAG) 561.00p +2.19%
SSE (SSE) 1,545.00p +1.91%
easyJet (EZJ) 1,789.00p +1.88%
United Utilities Group (UU.) 1,015.00p +1.70%
Fresnillo (FRES) 910.00p +1.51%
Aggreko (AGK) 1,542.00p +0.98%
Sage Group (SGE) 484.00p +0.83%
Morrison (Wm) Supermarkets (MRW) 198.50p +0.81%
FTSE 100 - Fallers
TUI AG Reg Shs (Post- 16/12/14)(DI) (TUIJ) 1,132.00p -3.33%
Weir Group (WEIR) 1,640.00p -2.79%
Intertek Group (ITRK) 2,268.00p -2.70%
Rolls-Royce Holdings (RR.) 879.00p -2.66%
ITV (ITV) 225.90p -2.50%
Anglo American (AAL) 1,090.00p -2.46%
Royal Mail (RMG) 440.20p -2.46%
Dixons Carphone (DC.) 419.40p -2.44%
GKN (GKN) 369.00p -2.36%
CRH (CRH) 1,624.00p -2.35%
FTSE 250 - Risers
Zoopla Property Group (WI) (ZPLA) 190.00p +12.09%
Britvic (BVIC) 688.50p +6.58%
Centamin (DI) (CEY) 69.55p +5.70%
Vedanta Resources (VED) 410.80p +5.04%
NMC Health (NMC) 500.00p +4.38%
Telecom Plus (TEP) 1,025.00p +4.38%
Rightmove (RMV) 2,443.00p +3.96%
Game Digital (GMD) 264.20p +3.61%
Countrywide (CWD) 435.00p +3.03%
Ashmore Group (ASHM) 290.00p +2.95%
FTSE 250 - Fallers
Afren (AFR) 5.54p -68.65%
Hunting (HTG) 415.00p -6.41%
Ophir Energy (OPHR) 128.20p -5.94%
Serco Group (SRP) 156.30p -4.98%
Victrex plc (VCT) 2,090.00p -4.35%
Aveva Group (AVV) 1,320.00p -4.28%
FirstGroup (FGP) 101.50p -4.15%
Just Eat (JE.) 356.90p -3.96%
Euromoney Institutional Investor (ERM) 1,056.00p -3.74%
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks in the red after worse-than-forecast UK GDP European stocks slumped as investors weighed worse-than-expected UK economic growth data and concerns over Greece and Russia.
The UK economic expansion slowed more than forecast to just 0.5% in the fourth quarter of 2014, as contractions in construction and production weighed on growth.
The quarter-on-quarter rate of gross domestic product (GDP) growth eased from 0.7% growth in the third quarter of last year, missing the estimate of 0.6%.
On a year-on-year basis, GDP growth improved to 2.7% from 2.6% but came in shy of the 2.8% forecast, according to the Office for National Statistics (ONS).
Meanwhile, Moody's Investors Service said the outcome of the elections in Greece was credit negative for the country's rating because it caused prolonged financial uncertainty as the anti-austerity party Syriza comes to head with the Troika (International Monetary Fund, European Commission and European Central Bank).
Ministers on Monday agreed to work with the new government to help keep Greece in the euro, Dutch Finance Minister Jeroen Dijsselbloem said.
Weighing on the market elsewhere, the EU is expected to add more individuals this week to a list of those facing visa bans and asset freezes in Russia as deadly clashes between government troops and rebels escalated.
US data
US new home sales advanced 11.6% in December, beating expectations for a 2.7% gain. It followed a 6.7% fall in November.
US consumer confidence increased more than forecast in January. The sentiment index jumped to 102.9 from 93.1 in December, compared to analysts' estimates for a reading of 95.5.
US durable goods unexpectedly fell 3.4% in December following a 2.1% drop a month earlier. Analysts had predicted a 0.3% rise.
Philips, Easyjet
Royal Philips NV dropped after saying it is falling short of its 2016 financial targets following shipment delays, currency impact and weakness in some of its markets.
Easyjet gained after reporting an increase in first-quarter revenue, as the airline expanded its capacity.
Siemens declined as the European engineering company reported a fall in first quarter profit.
The euro rose 1.14% to $1.1366. |
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| | US Market Report | | US open: Stocks sink amid disappointing durable goods data and weak earnings US stocks sank on Tuesday, after disappointing data on durable goods led to speculations that economic growth was slowing down.
Just after 11:00 in New York, the Dow Jones Industrial Average was down 325.20 points, while the S&P 500 and the Nasdaq lost 33.18 and 100.06 points respectively.
Orders for durable US good declined 3.4% in December, registering the fourth decline in the past five months and falling well below the expected 0.1% decline.
According to figures released by the Commerce Department on Tuesday, durable goods orders for November were revised to show a 2.1% drop instead of a 0.9% drop.
Meanwhile, US house prices rebounded by 0.2% in November, to lower the year-over-year gainto 4.3%, according to the S&P/Case-Shiller 20-city composite. The report released on Tuesday, showed that on a seasonally adjusted basis home prices advanced 0.7%.
The consumer confidence index soared in January to a seven-year high of 102.9, while new-home sales rose 11.6% in December.
"This survey suggests that annualised real consumption growth in the first quarter of this year may be between 3.5% and 4.0%, following our estimate of 3.5% in the fourth quarter of last year," said Andrew Hunter, economist at Capital Economics.
"In all, after the weak durable goods orders data released earlier today implied that business investment is struggling, this surge in confidence suggests that consumption is having no such problems."
In corporate news, Microsoft was trading almost 10%, after JP Morgan cut the company to neutral from overweight. The tech giant's commercial sales fell below expectations late on Monday.
"Microsoft had already set the stage for disappointment overnight after it offered a weaker outlook for its software business," said CMC Markets analyst Jasper Lawler.
"Microsoft beat earnings estimates and announced a share buyback scheme of $30bn which is larger than previous years although perhaps not quite as aggressive as some had called for."
Caterpillar fell over 7% after announcing a disappointing outlook for 2015 and reporting lower-than-expected earnings, while DuPont fell almost 3% after posting a 5% decline in fourth quarter sales.
Procter & Gamble fell almost 4% after disappointing results, while Pfizer slid after a downbeat profit and sales outlook.
Gold futures advanced by over 1% to $1,293.90, while the dollar fell over 0.7% against the pound and the yen and by over 1.2% over against the euro. |
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| | Broker Tips | | Broker tips: HSBC, Eastyjet, Dixons Carphone HSBC's share price was under pressure on Tuesday after broker Investec lowered its rating for the stock from 'add' to 'hold', saying that the bank's upcoming fourth-quarter results could disappoint.
The broker said that a weak showing from the bank on 23 February will "trigger downgrades", as it lowered its target for the shares from 650p to 630p.
Broker Numis Securities said it expects upgrades to consensus estimates for Easyjet after the budget airline impressed the market with its first-quarter update and positive outlook on Tuesday. It kept a 'buy' rating.
"In our opinion, investors should be encouraged by a positive outlook statement in which management points out that it sold record numbers of seats to business travellers in the first quarter and that Easyjet is well positioned to continue to deliver strong returns and growth to shareholders."
Dixons Carphone's stock took a tumble on Tuesday after US banking giant Morgan Stanley lowered its recommendation on the retail stock from 'equal weight' to 'underweight'. | | |
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