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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 open: UK stocks rise as corporate updates impress A decent rally on Wall Street and gains on Asian markets led to a positive start for UK stocks on Wednesday, helped by well-received updates from a number of blue chips.
The FTSE 100 was up 0.4% at 6,646, with trading statements from Pearson, Dixons Carphone and SABMiller impressing investors early on.
The index closed at 6,620.10 on Tuesday, its best finish since 29 December 2014.
A barrage of economic data from China on Tuesday came in better than expectations, helping markets in the US and Asia to shrug off a downgrade to growth forecasts by the International Monetary Fund.
The annual rate of fourth-quarter Chinese gross domestic product (GDP) expansion held steady at 7.3% despite expectations for a slowdown, while growth in industrial production and retail sales picked up.
As for Wednesday's session, labour-market figures are due out in the UK, along with the minutes of the latest Bank of England policy meeting. Building permits and housing starts are scheduled for release in the States.
However, the upcoming European Central Bank (ECB) meeting on Thursday is the main 'risk event' of the week on the back of increased hopes that policymakers will implement full-on quantitative easing (QE).
"The gains in stocks are mainly due to a combination of the China GDP coming in above market expectations and of course, the rising anticipation that the ECB will finally press the QE button tomorrow," said Jameel Ahmad, analyst at FXTM.
Pearson, Dixons Carphone and SABMiller on the rise
FT and education publisher Pearson rose strongly after guiding to higher profits in 2015 as it maintained its forecast for results last year. Adjusted earnings per share should rise to 75p-80p this year, compared with an estimated 66p in 2014.
Dixons Carphone was also in positive territory after raising its profit guidance on the back of strong Christmas trading. Like-for-like sales increased 7% for the nine weeks ended 3 January as the group took further market share across electricals and mobile in the UK and Ireland, the Nordics and Greece.
Despite more difficult trading conditions in China and North America, SABMiller's shares rose after the drinks group registered a 4% increase in group net producer revenue in the third quarter.
However, Sports Direct was a heavy faller after the news that founder Mike Ashley had sold £117-worth of shares in the sports retailer equal to a 2.6% stake.
Takeover target Afren was a heavy faller after the news after the close that it has been reviewing its "capital structure, liquidity and funding requirements" and looking at its cost base and spending plans for 2015 given the recent rapid plunge in oil prices. Afren on Monday extended a 'put up or shut up' deadline for potential bidder Seplat to make an offer until 30 January.
Mining stocks were mostly lower, including BHP Billiton despite the company maintaining its full-year production guidance after a 9% increase in output in the first half, helped by record volumes across eight operations and five commodity classes. However, BHP also said it has "moved quickly" in response to the recent collapse in crude prices and plans to reduce the number of US onshore oil rigs by 40% by the end of the financial year.
Sector peers such as Anglo American, Rio Tinto and Glencore were also unwanted. |
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| | Market Movers
techMARK 3,041.65 +0.37%
FTSE 100 6,645.86 +0.39%
FTSE 250 16,121.00 -0.03%
FTSE 100 - Risers
Pearson (PSON) 1,276.00p +3.24%
SABMiller (SAB) 3,412.00p +2.06%
Admiral Group (ADM) 1,438.00p +1.55%
Intu Properties (INTU) 354.40p +1.40%
BG Group (BG.) 860.80p +1.35%
Unilever (ULVR) 2,748.00p +1.29%
Imperial Tobacco Group (IMT) 2,985.00p +1.29%
Burberry Group (BRBY) 1,724.00p +1.23%
Royal Dutch Shell 'B' (RDSB) 2,199.50p +1.08%
British American Tobacco (BATS) 3,650.00p +1.07%
FTSE 100 - Fallers
Intertek Group (ITRK) 2,274.00p -4.65%
Sports Direct International (SPD) 726.00p -4.54%
Weir Group (WEIR) 1,610.00p -3.82%
Kingfisher (KGF) 332.00p -1.37%
Babcock International Group (BAB) 1,017.00p -1.07%
Smiths Group (SMIN) 1,067.00p -0.93%
St James's Place (STJ) 810.00p -0.92%
Johnson Matthey (JMAT) 3,450.00p -0.86%
Anglo American (AAL) 1,112.00p -0.85%
Royal Bank of Scotland Group (RBS) 377.40p -0.81%
FTSE 250 - Risers
Man Group (EMG) 169.60p +5.02%
FirstGroup (FGP) 105.00p +2.94%
Rank Group (RNK) 161.90p +2.47%
Fidelity China Special Situations (FCSS) 140.00p +2.19%
Indivior (INDV) 165.00p +1.79%
Nostrum Oil & Gas (NOG) 484.70p +1.79%
Interserve (IRV) 516.50p +1.77%
Centamin (DI) (CEY) 70.30p +1.74%
Pets at Home Group (PETS) 206.40p +1.73%
Hellermanntyton Group (HTY) 312.60p +1.69%
FTSE 250 - Fallers
Afren (AFR) 22.76p -11.75%
Poundland Group (PLND) 345.40p -4.90%
Vedanta Resources (VED) 413.40p -3.86%
Domino's Pizza Group (DOM) 676.00p -3.22%
Drax Group (DRX) 352.20p -2.87%
Bank of Georgia Holdings (BGEO) 1,878.00p -2.59%
Wetherspoon (J.D.) (JDW) 798.00p -2.56%
Dechra Pharmaceuticals (DPH) 845.00p -2.31%
Game Digital (GMD) 244.70p -2.20% |
| | UK Event Calendar | | Wednesday 21 January
INTERIM DIVIDEND PAYMENT DATE
Charles Stanley Group
QUARTERLY PAYMENT DATE
Assura Group Ltd.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Building Permits (US) (13:30)
Crude Oil Inventories (US) (16:00)
Housing Starts (US) (13:30)
MBA Mortgage Applications (US) (12:00)
FINALS
Computacenter
IMSS
FirstGroup, Halfords Group, Land Securities Group
DRILLING REPORT
Hochschild Mining
AGMS
Diploma, Superglass Holdings, Troy Income & Growth Trust, WH Smith
TRADING ANNOUNCEMENTS
SABMiller, Wetherspoon (J.D.)
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Minutes (09:30)
Claimant Count Rate (09:30)
Unemployment Rate (09:30)
FINAL DIVIDEND PAYMENT DATE
Majedie Investments
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks little changed as ECB policy meeting looms European stocks were little changed a day ahead of the European Central Bank's (ECB) policy decision.
ECB President Mario Draghi on Thursday is expected to announce full-blown quantitative easing to address the weak economy and deflation.
"Let's just hope Mr Draghi and the ECB don't disappoint or things could get ugly pretty quickly," said CMC Markets analyst Michael Hewson.
Turning to Wednesday's agenda, Bank of England (BoE) on Wednesday releases minutes of its last meeting, offering further insight on the central bank's decision to keep policy unchanged.
The BoE on 8 January maintained its benchmark interest rate at 0.5% and the size of its asset purchase programme at £375bn, as expected by the market.
Low inflation, dragged mainly by oil prices, has given the Bank little reason to raise interest rates, which have been held at 0.5% since March 2009.
UK inflation fell to a 12-year low of 1% in November.
Along with the BoE's minutes, a report on the state of the UK labour market will be released, including figures on employment, the unemployment rate, jobless claims and weekly earnings.
Analysts see the number of people with jobs rising by 74,000 over the three months to November. The unemployment rate is forecast to drop to 5.9% in the same period from 6% previously.
Jobless claims may have fallen 25,000 in December, according to analysts' estimates, while weekly earnings are pegged to increase 1.9% year-on-year over the three months to November.
Stateside sees the release of housing starts data for December and mortgage applications for the week to 16 January.
Among companies, Dutch chipmaker ASML Holding NV advanced after forecasting first-quarter sales that topped analysts' estimates.
Alstom SA climbed after the French company posted an 11% increase in third-quarter revenue and reiterated its forecasts for sales growth and operating margin.
The euro rose 0.20% to $1.1573. |
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| | US Market Report | | US close: Stocks advance amid positive data from China, as oil prices continue to fall US stocks edged slightly higher on Tuesday, amid better-than-expected data from China and gains from Apple and Netflix. The Dow Jones Industrial Average closed 3.66 points up to 17,515.23, while the Nasdaq rose 29.07 points to 4,171.21 and the S&P 500 ended the day 3.13 points higher at 2,022.55.
China's gross domestic product rose 7.3% year-on-year in the fourth quarter, more than the 7.2% growth that was expected.
However, it marked the slowest economic growth in 24 years, while the country's industrial production gained 8.3% year-on-year in December, compared to forecasts for a 8.2% increase.
Meanwhile, the International Monetary Fund (IMF) cut its global inflation and growth forecasts for this year, indicating that growth in the US economy and the drop in oil prices will not suffice to cure the weaknesses evident in other economic blocks.
The IMF now expects growth of 3.5% this year, compared with the previous estimate of 3.8% which it made in October, leading to a further decline in the prices of oil, with West Texas Intermediate losing almost 3% and closing at just over $46.5 a barrel, while Brent ended the session at just over $48 after losing over 1%.
In corporate news, Netflix rose 11% after the bell as the online streaming service announced fourth quarter earnings of $1.35 per share that beat expectations of 45p per share, while sales met estimates, as they rose to $1.48bn from $1.18bn in the same period in a year earlier.
IBM declined almost 2% in after-hour trading after reporting a12% decline in fourth-quarter sales as revenue for the period was $24.1bn against estimate of $24.8bn. Fourth quarter earnings of $5.81 per share beat analysts' expectations of $5.43 per share, while gross margin rose to 53.3% from 52.8% a year earlier.
Orbitz Worldwide rose 8.3% after Bloomberg reported that the online travel agent was exploring a possible sale, while Johnson & Johnson retreated 2.64% after fourth quarter revenue missed analysts' expectations.
Delta Air Lines climbed 7.26% after posting fourth quarter earnings that beat analysts' projections, while Apple and Yahoo! Inc rose 2.58% and 2.50% respectively.
Smith & Wesson Holding soared 16.47% after raising its third quarter outlook saying it estimates third quarter sales to be between $124m and $126m, even though earnings dropped from $3.52bn to $2.52bn in the year-earlier period.
Gold futures advanced to 1,294.20, while the dollar lost 0.4% against the pound but rose over 0.8% against the yen and gained 0.3% against the euro.
S&P 500 - Risers
Delta Airlines Inc. (DAL) $49.17 +7.26%
Newmont Mining Corp. (NEM) $23.57 +5.74%
Phillips 66 Common Stock (PSX) $63.62 +4.59%
Borg Warner Inc. (BWA) $52.76 +3.86%
Marathon Petroleum Corporation (MPC) $80.42 +3.73%
Mosaic Company (MOS) $47.65 +3.61%
Netflix Inc. (NFLX) $348.80 +3.40%
Southwest Airlines Co. (LUV) $40.79 +3.32%
Gilead Sciences Inc. (GILD) $103.78 +3.05%
Regeneron Pharmaceuticals Inc. (REGN) $421.11 +3.04%
S&P 500 - Fallers
NRG Energy Inc. (NRG) $24.68 -6.16%
Denbury Resources Inc. (DNR) $6.47 -5.55%
Staples Inc. (SPLS) $16.39 -5.53%
Nabors Industries Ltd. (NBR) $10.22 -3.86%
Regions Financial Corp. (RF) $8.74 -3.64%
PulteGroup Inc. (PHM) $20.80 -3.57%
D. R. Horton Inc. (DHI) $22.95 -3.41%
Time Warner Inc. (TWX) $80.35 -3.40%
Wynn Resorts Ltd. (WYNN) $142.03 -3.37%
Apache Corp. (APA) $60.16 -3.36%
Dow Jones I.A - Risers
Coca-Cola Co. (KO) $43.16 +1.48%
American Express Co. (AXP) $87.26 +1.42%
Cisco Systems Inc. (CSCO) $28.07 +1.41%
Chevron Corp. (CVX) $106.47 +1.28%
United Technologies Corp. (UTX) $117.53 +1.19%
General Electric Co. (GE) $23.85 +1.10%
Pfizer Inc. (PFE) $33.10 +0.91%
Visa Inc. (V) $256.84 +0.74%
Nike Inc. (NKE) $93.61 +0.67%
AT&T Inc. (T) $33.95 +0.44%
Dow Jones I.A - Fallers
Johnson & Johnson (JNJ) $101.29 -2.64%
Intel Corp. (INTC) $36.08 -1.02%
Goldman Sachs Group Inc. (GS) $175.63 -0.90%
Home Depot Inc. (HD) $103.25 -0.84%
McDonald's Corp. (MCD) $90.80 -0.75%
Merck & Co. Inc. (MRK) $62.61 -0.67%
Travelers Company Inc. (TRV) $105.84 -0.66%
Walt Disney Co. (DIS) $94.74 -0.46%
JP Morgan Chase & Co. (JPM) $55.71 -0.39%
Unitedhealth Group Inc. (UNH) $105.62 -0.14%
Nasdaq 100 - Risers
Illumina Inc. (ILMN) $196.73 +7.02%
Vimpelcom Ltd Ads (VIP) $3.90 +5.69%
Netflix Inc. (NFLX) $348.80 +3.40%
Gilead Sciences Inc. (GILD) $103.78 +3.05%
Regeneron Pharmaceuticals Inc. (REGN) $421.11 +3.04%
Biogen Idec Inc. (BIIB) $363.27 +2.98%
Apple Inc. (AAPL) $108.78 +2.63%
Yahoo! Inc. (YHOO) $47.63 +2.50%
Micron Technology Inc. (MU) $29.67 +2.35%
Keurig Green Mountain Inc (GMCR) $131.83 +2.19%
Nasdaq 100 - Fallers
Staples Inc. (SPLS) $16.39 -5.53%
Wynn Resorts Ltd. (WYNN) $142.03 -3.37%
Charter Communications Inc. (CHTR) $156.18 -3.06%
Viacom Inc. Class B (VIAB) $66.36 -2.51%
Twenty-First Century Fox Inc Class A (FOXA) $34.12 -2.35%
Express Scripts Holding Co (ESRX) $83.48 -2.23%
Comcast Corp. (CMCSA) $55.79 -1.73%
Intuitive Surgical Inc. (ISRG) $521.89 -1.65%
Dish Network Corp. (DISH) $70.68 -1.63% |
| | FREE ADVFN Seminar: Preparing To Invest for 2015 | | Tues 27 Jan, at the Phoenix Club, London. Professor Glen Arnold will be speaking on good value investing for 2015. Prof. Arnold is the best-selling author of the Financial Times guide to Investing, and author of the ADVFN Deep Value Shares Newsletter. Click Here find out more. |
| | Newspaper Round Up | | Wednesday newspaper round-up: BP challenged, UK wine industry, Eversholt... Oil giant BP is being challenged to confront the risk that climate change may pose to its future in a shareholder resolution published on Wednesday, The Guardian wrote. Pension funds controlling hundreds of billions of pounds are among the 150 investors demanding the company tests whether its business model is compatible with the international community's pledge to limit global warming to two degrees celsius, the paper continued. British wine lovers are set to outspend their French counterparts as they develop a taste for more expensive bottles, according to the Financial Times. The newspaper said that although people drank less after the financial crisis, between 2008 and 2014, the value of the UK wine market rose 15% to $16.1bn.
Another chunk of Britain has fallen into the hands of the Hong Kong billionaire Li Ka-shing with the £2.5bn sale of the Eversholt train-leasing company to the tycoon's Cheung Kong Infrastructure, reported The Times.
Britain is "wide open to abuse" by "freeloading" European Union migrants who are exploiting the welfare state, the Foreign Secretary has said, according to The Telegraph. Philip Hammond said that the Government is "determined" to reform Britain's relationship with Brussels so that there is a "sufficient impact on migration numbers to satisfy the public", the paper printed.
The long-delayed Chilcot report into why Britain went to war with Iraq will not be published until after the general election, the inquiry chairman is to confirm on Wednesday, according to The Mirror. Sir John Chilcot is expected to outline his reasons for the latest embarrassing postponement in an exchange of letters with David Cameron, the paper wrote.
According to The Courier, finance secretary John Swinney will announce changes to the proposed new tax rates for buying a home in Scotland when the Budget is debated at Holyrood today.
City A.M. said on Wednesday that the world's leading art business and auction house Christie's yesterday reported art sales of £5.1bn for the year ended December 2014, the highest such figure of any art company in the history of the market.
The Telegraph reported that the treatment of whistleblowers by the NHS is "a stain on its reputation" which has destroyed livelihoods and caused "inexcusable pain" to health professionals, MPs have warned. The paper added that the Commons Health Select Committee said repeated failures to listen to staff who warned of risks to patients is jeopardising safety and deterring others from blowing the whistle. | | |
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