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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: Stocks erase losses to edge higher ahead of FOMC UK stocks ended slightly higher on Wednesday after a choppy session, though gains were modest ahead of the all-important Federal Reserve policy decision later that evening. London's FTSE 100, which was swinging between gains and losses for most of the day, finished up 0.2% at 6,826, bouncing off an intraday low of 6,777.08 reached in the morning.
While experts do not predict any major changes to the language used in the Federal Open Market Committee policy statement due out at 19:00, they will be watching closely for hints on the timing of future rate hikes.
The consensus of experts believe that the Fed will stick to it's guidance of the first rate hike since 2006 arriving in mid-2015. In December, the FOMC said it would be "patient in beginning to normalise [policy]" with Fed chair Janet Yellen explaining that "patient" meant a rate hike was unlikely "for at least the next couple of meetings".
Concerns about Greece had weighed on stocks earlier in the day with equities in Athens down 9% in the aftermath of Sunday's general election.
New prime minister Alexis Tsipras from the victorious anti-austerity Syriza party told his cabinet on Wednesday that he would move quickly to renegotiate terms of the bailout with Greece's creditors. He said he wanted to "radically change the way that policies and administration are conducted in this country".
Experian and ARM provide a boost
Credit-checking group Experian was in demand after unveiling an unexpected $600m share buyback and outlining plans to grow its dividend.
ARM, the semiconductor firm whose chips are used in Apple's iPhones, was bolstered by the news that the California-based tech group sold 74.5m of the smartphones in three months to December. Apple's chief executive Tim Cook said that demand for the iPhone was "staggering".
Supermarket chain Wm Morrison dropped after gloomy comments from Societe Generale, which rated the stock as a 'sell' as it offered the "weakest visibility" in the sector.
Johnson Matthey declined after the chemicals outfit said full-year underlying profits would be only "slightly ahead" of last year.
Accountancy software maker Sage slumped after first-quarter revenues rose 5.3%, shy of its full-year growth target of 6%.
The purchase of British motorbike insurer Bennetts for £27m lifted the share price of over-50s services group Saga.
Market Movers
techMARK 3,078.83 +0.51%
FTSE 100 6,825.94 +0.21%
FTSE 250 16,425.73 +0.44% |
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| | FTSE 100 - Risers
SABMiller (SAB) 3,594.50p +4.61%
Capita (CPI) 1,118.00p +2.29%
Anglo American (AAL) 1,115.00p +2.29%
Dixons Carphone (DC.) 429.00p +2.29%
SSE (SSE) 1,580.00p +2.27%
Weir Group (WEIR) 1,677.00p +2.26%
Reckitt Benckiser Group (RB.) 5,620.00p +1.90%
Old Mutual (OML) 208.60p +1.86%
Hammerson (HMSO) 696.50p +1.83%
Legal & General Group (LGEN) 269.30p +1.78%
FTSE 100 - Fallers
Morrison (Wm) Supermarkets (MRW) 186.30p -6.15%
Standard Chartered (STAN) 905.00p -3.90%
Tullow Oil (TLW) 357.00p -3.54%
Johnson Matthey (JMAT) 3,385.00p -3.20%
Antofagasta (ANTO) 673.50p -2.88%
Sainsbury (J) (SBRY) 262.90p -2.74%
InterContinental Hotels Group (IHG) 2,657.00p -2.46%
BG Group (BG.) 897.80p -2.36%
BP (BP.) 432.95p -1.74%
Royal Dutch Shell 'A' (RDSA) 2,153.50p -1.71%
FTSE 250 - Risers
Saga (SAGA) 185.00p +10.78%
Game Digital (GMD) 285.00p +7.87%
Crest Nicholson Holdings (CRST) 406.00p +6.93%
Allied Minds (ALM) 440.20p +5.06%
Intermediate Capital Group (ICP) 503.50p +4.68%
Nostrum Oil & Gas (NOG) 560.00p +4.28%
Spire Healthcare Group (SPI) 319.20p +4.08%
Greencore Group (GNC) 303.00p +3.77%
Daejan Holdings (DJAN) 5,545.00p +3.64%
Redefine International (RDI) 55.00p +3.48%
FTSE 250 - Fallers
Afren (AFR) 4.70p -6.00%
Vedanta Resources (VED) 389.60p -5.16%
PayPoint (PAY) 879.50p -4.87%
Booker Group (BOK) 152.60p -4.09%
Jimmy Choo (CHOO) 172.00p -3.91%
Petra Diamonds Ltd.(DI) (PDL) 163.00p -3.55%
Rightmove (RMV) 2,371.00p -2.95%
Supergroup (SGP) 949.00p -2.62%
RPS Group (RPS) 188.30p -2.49% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks little changed ahead of FOMC rate decision European stocks were little changed ahead of the Federal Reserve's latest policy decision. The Federal Open Market Committee releases its policy statement after European markets close. The US central bank is expected to keep interest rates at 0.25% and reiterate plans for an increase mid-2015. The Fed has maintained the benchmark rate near zero since the 2008 financial crisis.
In Europe, a report showed German consumer confidence rose more than expected. GfK's forward-looking sentiment index for Germany increased to 9.3 in February from 9 in January, beating the 9.1 that was estimated.
"German consumers, just like most around the world, are receiving a massive boost to real spending power from cheap oil. As a result, consumer confidence is climbing to new highs," said Berenberg analyst Christian Schulz.
"We expect German households' consumption to remain a pillar of growth in Germany and the Eurozone in 2015."
Elsewhere in Europe, Greek stocks declined for a third day, led by banks, amid fears the newly-appointed Syriza-led coalition will challenge austerity measures imposed in the Mediterranean nation.
Holger Schmieding, analyst at Berenberg said: "Greece matters. Europe would love to keep Greece in the euro and on the path to growth. Europe is happy to fund the process, but only if Greece keeps laying the foundations for sustained growth. Tough love means that help is conditional."
ARM and Imagination rally on Apple results
Chip designers ARM Holdings and Imagination Technologies Group gained after Apple reported better-than-expected quarterly profit on the back of strong demand for its iPhones.
Nordea advanced after raising its 2014 dividend by 44% and reporting a rise in quarterly net income.
Electrolux rose after Europe's biggest appliances maker posted a 20% gain in fourth-quarter operating profit.
Anglo American was higher after reporting a rise in coal and iron-ore output in the fourth quarter.
Johnson Matthey declined after saying third-quarter profit growth slowed and warned of the impact from depressed oil prices.
The euro fell 0.33% to $1.1344. |
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| | US Market Report | | US open: Stocks gain on Apple earnings, while investors await Fed's decision US stocks edged forward on Wednesday, as the Nasdaq reaped the benefits of strong earnings from Apple. Just after 10:00 in New York, the Dow Jones Industrial Average was up 72.12 points to 17,459.33 (+0.4%), while the S&P and the Nasdaq advanced 0.4% and 1% respectively.
Wall Street endured a torrid time on Tuesday when US stocks registered their biggest drop in three weeks, dragged down by disappointing earnings and by a sharp decline in durable goods orders. Wednesday's major event is the announcement from the Federal Open Market Committee, due at 14:00 ET.
The two-day meeting is unlikely to produce any significant changes to the Fed's statement, and analysts expect the first hike in short-term interest rates by September.
"Fed hawks will argue that the extremely low level of interest rates across the curve is extremely unusual in an environment in which the labour market is tightening at its current pace," said Jane Foley, senior currency strategist at Rabobank.
"We have maintained a call for some time that the Fed is unlikely to hike interest rates until the end of this year. If the Fed signal that it is willing to extend its patience on policy moves, than the dollar could soften."
In corporate news, Apple jumped almost 8% after reporting late on Tuesday its quarterly profit rose 38%, as the company sold 74.5m iPhone units in the period.
US Steel Corp jumped almost 10% after its earnings topped Wall Street's estimates, while Boeing rose 4% after its fourth quarter beat forecasts.
Yahoo! gained over 3% on plans to spin off its stake in Alibaba into a separate, publicly traded company, while Abiomed surged almost 35% after the medical device maker posted earnings that were much better than Wall Street's estimates.
On Wednesday, investors will focus on Facebook, as the social media giant is due to report after the close.
"Investor nervousness over rising costs will need to be calmed by increasing advertising revenue, particularly from mobile," said CMC Markets analyst Jasper Lawler.
"Consensus is for mobile to make up 67% of the $3.49bn total ad revenue, so anything above $2.45bn in mobile ad revenue should be bullish for the stock."
Gold futures fell slightly to $1,285.10, while the dollar advanced marginally against the pound and the yen and gained over 0.5% against the euro. |
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| | Broker Tips | | Broker tips: Experian, Balfour Beatty, Anglo American, Afren Broker Liberum reiterated its 'buy' rating on Experian after the information services firm announced an unexpected £394.7m buyback, which amounts to 5% of its stock. "Experian's sustainable superior cash generation remains a key strength," Liberum said.
UBS has lifted its target for Balfour Beatty's shares from 200p to 235p, but maintained a 'neutral' stance on the infrastructure group.
"It is rare that shares rally 10%+ after a profit warning but in Balfour Beatty's case the assumptions seems to be that the worst is now over and new management can eliminate what has been extremely poor performance in the UK. We are inclined to give the benefit of the doubt for now but see relatively limited value at the current share price level," the bank said.
Broker Shore Capital said it expected a "negative market reaction" after mining giant Anglo American reported a decline in output in the fourth quarter.
"Not really what we wanted to see, particularly given the general weakening in commodity prices," it said in a note on Wednesday.
Broker Westhouse Securities has cut Afren from 'neutral' to 'sell' and slashed its target from 90p to just 2p, saying that the risk of owning shares in the struggling oil producers is too high. | | |
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