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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 finish lower after choppy session, Shell sinks UK stocks finished another choppy session slightly lower as investors digested a barrage of global economic data and corporate earnings, central bank moves and political developments in Greece. London's FTSE 100 closed at 6,811, down 0.2% on the day with the energy sector providing a drag after oil major Royal Dutch Shell missed quarterly forecasts and scaled back its investment budget.
Wall Street equity markets got off to a mixed start as data showing a sharp drop in US jobless claims to their lowest since 2000 was outweighed by a decline in US pending-home sales. Earnings from newly-listed Chinese e-commerce giant Alibaba also missed estimates, causing shares to tumble.
Economic data in Germany showed that while unemployment eased in January, consumer prices fell on an annual basis for the first time in over five years.
Meanwhile, comments from the US Federal Reserve continued to weigh on investors' minds after policymakers said on Wednesday night that they would remain "patient" about the timing of the first interest rate hike.
The Danish central bank cut interest rates for the third time in less than two weeks. The deposit rate was taken deeper into negative territory, to -0.5%, to battle upwards pressure on its currency.
Greece was also still in focus in the aftermath of Syriza's election victory at the weekend, as new prime minister Alexis Tsipras looks to renegotiate the terms of the bailout with the country's creditors. The new government is now thought to be looking to veto new proposed sanctions by the EU on Russia.
Energy stocks sink as Shell disappoints
Shell dropped nearly 5% after reporting a 12% year-on-year increase in adjusted profits in the fourth quarter to $3.3bn, well below the consensus forecast of $4.2bn. The company also announced that had cut over $15bn of potential spending over the next three years.
"To keep investors sweet the oil firm announced a healthy dividend, but that wasn't enough to win back traders' confidence as the enormous cut to capital expenditure signals cautious times ahead," said analyst David Madden from IG.
Afren, BP and Tullow Oil were all trading firmly in the red. Smaller producer Soco International also underwhelmed with its 2015 production guidance, as it cut its spending budget for this year.
Meanwhile, mining stocks were weaker with precious metal producers among the worst performers as gold prices dropped their most in a month. Mexican miner Fresnillo and Africa-focused peer Randgold were falling sharply.
One bright spark was Easyjet, surging over 6% after an upgrade by Barclays Capital to 'overweight'. The bank said Easy jet was "one of the best low cost carrier business models in Europe".
Smirnoff maker Diageo shot up after the drinks giant delivered a much improved performance in the second quarter with stronger net sales, volumes and margins.
ASOS was out of fashion as the online clothing retailer revealed that its chief executive had sold £20.2 million-worth of shares.
Royal Mail fell after its chairman of five years, Donald Brydon, announced plans step down.
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FTSE 100 6,810.60 -0.22%
FTSE 250 16,359.02 -0.41% |
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FTSE 100 - Risers
easyJet (EZJ) 1,876.00p +6.17%
Hargreaves Lansdown (HL.) 1,033.00p +3.82%
Diageo (DGE) 2,022.50p +3.08%
Barratt Developments (BDEV) 470.40p +2.77%
Taylor Wimpey (TW.) 137.60p +2.46%
Marks & Spencer Group (MKS) 487.80p +2.14%
Imperial Tobacco Group (IMT) 3,160.00p +2.03%
Unilever (ULVR) 2,952.00p +1.90%
Reckitt Benckiser Group (RB.) 5,720.00p +1.78%
Aggreko (AGK) 1,558.00p +1.76%
FTSE 100 - Fallers
Fresnillo (FRES) 862.50p -5.22%
Royal Dutch Shell 'B' (RDSB) 2,138.00p -4.89%
Royal Dutch Shell 'A' (RDSA) 2,060.00p -4.34%
Randgold Resources Ltd. (RRS) 5,420.00p -2.95%
Glencore (GLEN) 250.40p -2.93%
Antofagasta (ANTO) 655.00p -2.75%
Johnson Matthey (JMAT) 3,297.00p -2.60%
Carnival (CCL) 3,000.00p -2.22%
BG Group (BG.) 880.90p -1.88%
BP (BP.) 424.85p -1.87%
FTSE 250 - Risers
Rank Group (RNK) 178.00p +7.29%
Nostrum Oil & Gas (NOG) 598.50p +6.88%
Infinis Energy (INFI) 196.20p +4.92%
Saga (SAGA) 192.00p +3.78%
IP Group (IPO) 233.50p +3.32%
Dairy Crest Group (DCG) 500.50p +2.75%
National Express Group (NEX) 263.10p +2.65%
Brit (BRIT) 264.50p +2.52%
Kaz Minerals (KAZ) 196.70p +2.39%
Poundland Group (PLND) 353.60p +2.37%
FTSE 250 - Fallers
Afren (AFR) 4.20p -10.64%
PayPoint (PAY) 827.00p -5.97%
Acacia Mining (ACA) 271.20p -5.90%
Centamin (DI) (CEY) 64.70p -5.89%
Amec Foster Wheeler (AMFW) 787.50p -5.41%
Soco International (SIA) 265.00p -5.36%
Hunting (HTG) 394.30p -4.92%
Vedanta Resources (VED) 371.00p -4.77%
Serco Group (SRP) 152.70p -4.32% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks mixed as Germany enters deflation European stocks were mixed after reports showed Germany entered deflation and unemployment fell less than expected in the nation.
German consumer prices dropped 0.3% in January, more than the 0.1% fall that was expected and compared to the prior month's 0.2% gain.
It comes day ahead of Eurostat figures which are forecast to show Eurozone consumer prices fell 0.5% year-on-year in January after falling 0.2% a month earlier.
German unemployment fell 9,000 in January, less than the 10,000 drop that was predicted. The jobless rate fell from 6.6% to 6.5% in January, as expected.
Another release revealed the Eurozone economic confidence index rose to 101.2 in January from 100.6 in December, missing forecasts for a reading of 101.6.
Meanwhile, Bank of England governor Mark Carney criticised the current structure of the Eurozone, saying that sharing a currency without also sharing decisions on taxes and spending did not work.
The euro rose 0.12% to $1.1300.
US data
Jobless claims dropped to just 265,000 in the week ended 24 January, the lowest since April 2000. Analysts had expected claims to fall to 296,000 from 307,000 the previous week. The 43,000 decline was the biggest plunge since November 2012.
Pending home sales slipped 3.7% in December, which the National Association of Realtors (NAR) attributed to fewer homes available for sale and a slight rise in prices. However, the year-on-year gain was 11.7%, the highest since June 2013.
The data comes after the Federal Reserve remained steadfast in their claim that the American economy will continue improving alongside strong job gains, despite low inflation and the strengthening dollar. Policymakers said they would remain "patient" over the timing of the first rate hike.
Energy stocks fall
Royal Dutch Shell slumped as it said it will cut spending after reporting worse-than-forecast fourth-quarter profit.
Vallourec SA edged lower after saying it will write down the value of assets by as much as €1.2bn.
Repsol SA dropped after ending its buyback programme.
Oil prices have fallen by almost 60% since June due in part to the boom in US shale production.
Brent crude rose 0.26% to $48.60 per barrel at close of trading, according to the ICE.
Diageo was higher after first-half profit climbed more than forecast.
Raiffeisen Bank International AG gained after the Eastern European bank said it will shrink by at least 20% to boost capital ratios.
Nokia Oyj slipped after saying that profitability is likely to fall this quarter. |
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| | US Market Report | | US open: Markets mixed amid lower jobless claims and cooling home sales US markets were mixed in early Thursday trading as data revealing a sharp plunge in jobless claims was outweighed by a drop in pending home sales. Gold prices were lower while the price of oil rebounded slightly after dropping to its lowest in nearly six years the previous session.
The Dow Jones Industrial Average stood at 17,217.14 30 minutes into trading, up 25.96 points, or 0.15%. The S&P 500 lost 3.05, or 0.15%, at 2,007.11, while the tech-rich Nasdaq Composite Index fell 27.60, or 0.6%, at 4,643.22.
The stronger dollar weighed on the price of gold, which was down 1.14% to $1,271.30 an ounce. Crude prices recovered slightly with Brent up 1.11% and West Texas Intermediate up 0.63%.
Jobless claims dropped to just 265,000 in the week ended 24 January, the lowest since April 2000. Analysts had expected claims to fall to 296,000 from 307,000 the previous week. The 43,000 decline was the biggest plunge since November 2012.
The data comes after the Federal Reserve remained steadfast in their claim that the American economy will continue improving alongside strong job gains, despite low inflation and the strengthening dollar.
Policymakers said they would remain "patient" over the timing of the first rate hike.
Not all data was positive, however, with figures showing that pending home sales slipped 3.7% in December, which the National Association of Realtors (NAR) attributed to fewer homes available for sale and a slight rise in prices. However, the year-on-year gain was 11.7%, the highest since June 2013.
"With interest rates at lows not seen since early 2013, the strength in existing-sales in upcoming months will largely depend on the willingness of current homeowners to realize their equity gains from the past couple years and trade up," said Lawrence Yun, chief economist of the NAR.
The dollar was up 0.044% on the pound and 0.341% on the yen, but fell 0.492% against the euro.
Alibaba Group Holding fell in early New York trading after the Chinese e-commerce company reported quarterly
revenue falling short of expectations.
McDonald's gained after the fast-food chain said its chief executive officer would be replaced by its chief brand officer on 1 March. |
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| | Broker Tips | | Broker tips: Shell, Easyjet, Standard Life Charles Stanley has cut its recommendation for Royal Dutch Shell from 'buy' to 'accumulate', saying it sees less upside after fourth-quarter profits came in well below forecasts. The broker said: "The strong balance sheet will take the strain as Shell begins to reduce capital expenditure and operational expenditure in order to cut its cash flow break-even oil price. Shell starts from a strong position with gearing of 12% but the outlook has become challenging and the share price may struggle to outperform."
Easyjet's shares were flying higher on Thursday after analysts at Barclays Capital upgraded their stance on the stock from 'equalweight' to 'overweight' and hiked their target from 1,850p to 2,150p.
The positive move came after the airline's stronger first-quarter update on Tuesday which showed "conclusive evidence that easyJet has developed one of the best low cost carrier business models in Europe", Barclays said.
Canaccord Genuity said it was "taking a more cautious view" on the near-term growth outlook at Standard Life, as it lowered its rating on the insurer from 'buy' to 'hold'. | | |
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