| | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: Mining stocks plunge on macro concerns, Game Digital plummets Ongoing speculation about a further potential stimulus measures in Europe was overshadowed on Wednesday morning by wider concerns about global growth, with UK stocks falling sharply early on. The FTSE 100 was down 1.2% at 6,465 with mining stocks falling sharply as fears about the economic outlook hammered copper prices.
Copper prices in Asian trading on Wednesday slumped nearly 6% to $2.49 a pound, falling to its lowest since mid-2009.
Meanwhile, Brent crude was down a further 1.7% at $45.80 a barrel ahead of US government data which is expected to show that oil stockpiles in the Stateside increased last week.
Officials in the United Arab Emirates and Kuwait were cited as saying that prices will only recover when demand improves later this year with a global supply glut expected to persist into the second half.
As a result of the recent collapse in oil, data showed on Tuesday that consumer-price inflation in the UK slowed more than forecast to just 0.5% in December, its lowest since May 2000. Bank of England governor Mark Carney has said that deflation in Britain is now "possible" in the near future.
Also weighing on sentiment were comments from the World Bank which slashed its growth forecasts for the global economy for this year and the next.
The World Bank now expects 3% growth in 2015 and a 3.3% expansion in 2016, compared with previous estimates of 3.4% and 3.5% respectively, and said that "risks to the outlook remain tilted to the downside".
In other news, the quantitative easing (QE) rumour mill was going into overdrive ahead of the European Central Bank's (ECB) policy meeting next week after ECB president Mario Draghi was quoted as saying that he is ready to buy government bonds.
In an interview with German newspaper Die Zeit, Draghi said that loose monetary policy is needed to achieve price stability in the Eurozone.
Mining stocks drop, Game Digital plummets
Copper miners such as Antofagasta, Glencore and Anglo American were falling by 7% or more on the FTSE 100, while FTSE 250 peers Vedanta Resources and Kaz Minerals were down at least 14% each as copper prices plunged.
Oil stocks such as Shell, BP, BG Group and Premier Oil were also tracking the price of crude lower.
Nevertheless, the standout faller of the morning was Game Digital, the video-games retailer that was formed from the collapse of Game Group, which dropped 41% after delivering a profit warning. The company, which listed on the stock market just eight months ago, said that full-year profits would be "broadly in line" with last year after a "highly competitive" Christmas.
Burberry was subdued despite saying that reported retail sales growth accelerated strongly in the third quarter, as it highlighted a slowdown in the high-margin market of Hong Kong. The high-end luxury fashion group said retail revenues totalled £604m in the three months to 31 December, up 14% on last year compared with just 8% growth in the first half due to an improvement in foreign exchange rates.
A large-scale clinical trial of AstraZeneca's Brilinta tablets for patients with a history of heart attack has met its primary endpoint, with the treatment resulting in a significant reduction in major cardiovascular thrombotic events. The stock was among the best performers early on.
Fashion retailer Supergroup surged after strong Christmas trading performance underpinned its full-year profit guidance. Like-for-like sales grew by 12.4% in the 11 weeks to 10 January. |
| | Will you be able to retire in comfort? | | Download the 15-Minute Retirement Plan by Fisher Investments.
Click here to download! |
| | Market Movers
techMARK 2,978.09 -0.51%
FTSE 100 6,464.69 -1.18%
FTSE 250 15,947.86 -0.85%
FTSE 100 - Risers
AstraZeneca (AZN) 4,789.00p +1.53%
Tesco (TSCO) 214.85p +1.34%
Royal Mail (RMG) 432.90p +1.14%
BT Group (BT.A) 404.20p +1.10%
Hammerson (HMSO) 633.50p +1.04%
United Utilities Group (UU.) 949.50p +0.69%
Sky (SKY) 906.00p +0.55%
Compass Group (CPG) 1,120.00p +0.27%
Severn Trent (SVT) 2,100.00p +0.24%
Land Securities Group (LAND) 1,210.00p +0.17%
FTSE 100 - Fallers
Antofagasta (ANTO) 630.50p -11.07%
Glencore (GLEN) 244.85p -8.96%
Anglo American (AAL) 1,058.50p -7.59%
BHP Billiton (BLT) 1,281.50p -5.56%
Fresnillo (FRES) 791.00p -4.87%
Rio Tinto (RIO) 2,779.00p -4.83%
Randgold Resources Ltd. (RRS) 4,831.00p -3.86%
Aggreko (AGK) 1,487.00p -3.44%
Mondi (MNDI) 1,045.00p -3.33%
Tullow Oil (TLW) 358.20p -2.90%
FTSE 250 - Risers
Supergroup (SGP) 871.00p +7.33%
Just Eat (JE.) 341.40p +3.61%
IP Group (IPO) 223.10p +2.43%
Barr (A.G.) (BAG) 595.00p +1.88%
Nostrum Oil & Gas (NOG) 436.70p +1.56%
Dunelm Group (DNLM) 849.00p +1.31%
Saga (SAGA) 156.90p +1.23%
CLS Holdings (CLI) 1,482.00p +1.16%
Diploma (DPLM) 738.00p +1.10%
Cineworld Group (CINE) 409.80p +1.06%
FTSE 250 - Fallers
Game Digital (GMD) 205.00p -41.09%
Kaz Minerals (KAZ) 192.80p -16.36%
Vedanta Resources (VED) 416.10p -14.28%
Premier Oil (PMO) 127.60p -6.59%
BlackRock World Mining Trust (BRWM) 298.60p -5.06%
Lonmin (LMI) 157.40p -4.61%
Polymetal International (POLY) 542.50p -4.32%
Afren (AFR) 24.91p -3.79%
Evraz (EVR) 141.30p -3.55% |
| | UK Event Calendar | | Wednesday 14 January
INTERIMS
Games Workshop Group, Tungsten Corporation
INTERIM DIVIDEND PAYMENT DATE
Babcock International Group, JPMorgan Euro Small Co. Trust, Juridica Investments Ltd., Royal Mail, Ventus 2 VCT, Ventus 2 VCT 'C' Shares, Ventus VCT, Ventus VCT 'C' Shares
QUARTERLY EX-DIVIDEND DATE
Abbott Laboratories
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Beige Book Fed Survey (US) (19:00)
Business Inventories (US) (15:00)
Crude Oil Inventories (US) (15:30)
Import and Export Price Indexes (US) (13:30)
Industrial Production (EU) (10:00)
Manufacturing Inventories (US) (15:00)
MBA Mortgage Applications (US) (12:00)
Retail Sales (US) (13:30)
Retail Sales Inventories (US) (15:00)
Q4
JP Morgan Chase & Co
FINALS
JP Morgan Chase & Co, Shoe Zone
IMSS
C&C Group, Connect Group, Fenner
AGMS
Fenner, SWP Group
TRADING ANNOUNCEMENTS
Burberry Group, Premier Oil
FINAL DIVIDEND PAYMENT DATE
Bellway |
| | Earn an iPad Air 2 or Mini 3 | | Join Spreadex and trade the UK 100, EUR/USD, Wall St or GBP/USD markets to earn either an iPad Air 2 or iPad Mini 3. Losses can exceed deposit. Click here for ull ts & cs. |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks slide as World Bank cuts global growth forecasts European stocks declined as the World Bank cut its forecast for global growth this year. The World Bank predicts global growth of 3% this year and 3.3% next year, below its June forecast of 3.4% and 3.5% respectively, amid weakness in Europe and China.
The Bank warned the low inflation in the Eurozone could continue, predicting growth of 1.1% in 2015, rising to 1.6% in 2016-17.
As concerns about price instability persist, European Central Bank (ECB) President Mario Draghi has told Germany's Die Zeit newspaper that the monetary authority is ready to buy government bonds. The ECB meets on 22 January.
Ahead of the meeting, the European Court of Justice has ruled that the ECB's Outright Monetary Transactions programme is legal as long as certain conditions are met.
Meanwhile, rating agency Moody's has warned that the risks of Greece leaving the Eurozone have risen but are still lower than in 2012.
The general election on 25 January could have "negative credit implications" for other Eurozone members should the left-wing Syriza party win, Moody's said.
In economic data, Eurozone industrial production report due at 10:00 London time is expected to show a 0.7% fall in November after a 0.7% gain the prior month.
US retail sales will be released at 13:30 with analysts expecting a 0.1% fall in December following a 0.7% increase a month earlier.
The US also see the Federal Reserve release its Beige Book.
Among companies, energy shares including BP and Royal Dutch Shell declined as Brent prices fell for a fifth day.
Brent crude fell 1.4% to $45.91 per barrel, according to the ICE.
Mining stocks, such as Rio Tinto Group and BHP Billiton, also edged lower after copper slipped to a five-and-a-half-year low. |
| | Swissquote offers CFD Trading, an efficient mean of trading indices, commodities and currencies. | | You can trade on the market whether you think it will go UP or Down! Think the DAX will go Down? Short the DAX… Try CFD Trading with a Free Practice Account losses can exceed your deposit.
|
| | US Market Report | | US markets were rising on Tuesday despite another slide in oil prices, as sentiment was buoyed by hopes of continued loose monetary policy worldwide.
Early in the day the Dow Jones Industrial Average rose 1.25% to 17,860.73, the S&P 500 increased 1.07% to 2,050.03 and Nasdaq soared 1.38% to 4,227.38.
Ahead of the opening bell, market analyst Jasper Lawler from CMC Markets said: "Crashing oil prices led to lower stocks on Monday but US markets are set for a higher open on Tuesday after data showing a 14-year low in UK inflation adds to the mounting pile of evidence that global stock markets may still have plenty of time left to benefit from zero-bound interest rates.
Oil prices were under continued pressure with WTI crude down 1.7% at $45.31 a barrel and Brent 3.1% lower at $46.02 a barrel.
With oil prices now trading close to a six-year low and inflation running at multi-year lows across the globe, forecasts for the first interest-rate rise by the Federal Reserve have been pushed back. Data on Friday is expected to show that consumer prices in the States rose at an annual rate of just 0.7% in December, compared with 1.3% in November.
Meanwhile, the European Central Bank is also widely expected to implement quantitative easing next week to battle deflation in the Eurozone.
Craig Erlam from Alpari noted: "You get the impression that the only way OPEC would be willing to discuss production cuts at this stage is if similar cuts were agreed by the US shale companies. Given the debt levels of these companies and their costs, I would not be surprised if this happened in the coming months.
"Until that happens, oil prices could continue to push lower which means inflation in many countries will also continue to head south. The UK is one of those countries that has seen inflation fall rapidly, largely thanks to the fall in oil prices."
Over on COMEX, gold futures were advancing 0.25% to $1,235.90 while the dollar was sliding against the pound, the yen and the euro.
The yield on a benchmark US 10-year Treasury rose three basis points to 1.94%.
In the corporate world Apple was rising over 2% amid news it set Mac sales records for the second quarter in a row.
Agenus was falling 5% after shooting upwards on Monday due to a new partnership with Incyte. |
| | 3 Recovery Stocks for 2015 | | 2014 has been a very turbulent year for several major stocks. Our report will give you insight into 3 major companies that may have turned the corner. Click Here. |
| | Newspaper Round Up | | Wednesday newspaper round-up: Mark Carney, World Bank, Morrisons... Bank of England governor Mark Carney has warned that the UK is in danger of falling into deflation after figures showed that consumer prices rose at their lowest annual rate in over 14 years in December, writes The Telegraph. In interviews with the BBC and ITV, Carney said inflation is expected to "continue to drift down in the coming months" and deflation was now "possible". The World Bank has lowered its growth forecasts for the global economy from 3.4% to 3% for 2015, The Guardian reports. It also warned that the Eurozone could slide into permanent stagnation and called on the European Central Bank to implement quantitative easing.
Dalton Philips, the out-going chief executive of supermarket group Wm Morrisons, has admitted that he made strategic errors in his attempt to turnaround the business after being axed on Tuesday, The Times says. He admitted that his departure was "not of his own volition", the paper writes.
Strong tax revenues and low interest rates have helped Germany to balance its budget for the first time in over 40 years, writes The Telegraph.
Shares in extreme sports camera maker GoPro dropped 12% on Tuesday after tech giant Apple won a patent for an action camera, the Financial Times reports. "The threat of a new rival in the form of the world's most valuable company was exacerbated by a high number of investors taking a short position in GoPro," the paper said.
Game Digital, formerly known as Game Group, has delivered a profit warning to shareholders just eight months after returning to the markets, The Times reports. The company delivered a statement after the markets closed on Tuesday, saying that profits would be more or less flat on last year.
Copper prices fell to their lowest in five and a half years in Asian trading on Wednesday on the back of concerns about weak economic growth, the Financial Times writes.
Thomas Cook's annual report showed that former chief executive Harriet Green, who left abruptly in November, took a 73% pay cut after the travel firm missed its financial targets, The Guardian says. Green, who insisted that she had completed the group's turnaround, was also denied a bonus. | | |
New ADVFN Service - FREE Reports Get your free report on Isa's, Investment Trusts, Funds,
Sipps Travel and Cars - FREE and Easy service CLICK HERE
To advertise in the Euro Markets Bulletin please contact patrick@advfn.co.uk |
| | | | | | | To unsubscribe from this news bulletin or edit your mailing list settings click here. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +44 (0) 207 0700 961. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49 | |
No comments:
Post a Comment