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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: Stocks extend rally post ECB, but mining shares fall UK stocks were extending gains on Friday morning despite weakness in the mining sector, as sentiment continued to be boosted by the announcement of a €1.1trn stimulus package in the Eurozone. The FTSE 100 was up 0.5% at 6,832 early on after finishing the previous session at 6,796.60, its best finish since mid-September.
The European Central Bank (ECB) unveiled on Thursday that it would buy purchase €60bn-worth of private and public securities each month until September 2016 in a bid to revive growth and lift the euro area out of deflation.
"Yesterday's programme was at the same time bigger, faster and more explicit than what had been promised before and what the market had come to expect," said analysts at Deutsche Bank.
"With the ECB now committed to a large and sustained QE program we continue to believe that this will be a good environment for European equities and European credit whether you like the fundamentals or not or whether you think it makes any difference to the economy longer-term," they said.
The focus of Friday's session is likely to be on draft of manufacturing surveys across the Eurozone, UK retail sales figures and manufacturing and housing data in the States.
Mining stocks drop
Antofagasta, Glencore, Fresnillo, Vedanta Resources, Centamin, Randgold and Rio Tinto were trying with heavy losses as metal prices weakened.
Anglo American was also falling on rumours that it is looking at offloading the Dawson and Foxleigh coal mines in Australia, adding the assets to a list of projects that it is seeking to sell.
Telecoms groups Vodafone and BT were making gains as M&A speculation in the industry picked up following the announcement that the owner of the Three network, Hutchison Whampoa, is in talks to buy O2 from Telefonica for £10bn.
Building materials firm CRH was extending gains made on Thursday after confirming speculation that it could buy some of Lafarge and Holmium's assets ahead of their proposed merger.
Ultra Electronics, the UK defence, security, energy and transport group, fell after confirming that its IT contract with Oman airport has been scrapped. The termination would likely lead to a provision against contract balances in Ultra's 2014 results, it said.
The share price of oil and gas group EnQuest surged after it reassured its financial position "remains resilient" despite the recent collapse in crude prices, as it slashed its capital expenditure budget for this year. EnQuest's lenders have agreed to raise the convenants on its credit facility, lifting the net debt-to-operating profit multiples, to provide "flexibility" for the company. |
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| | Market Movers
techMARK 3,091.39 +0.78%
FTSE 100 6,831.82 +0.52%
FTSE 250 16,473.44 +0.58%
FTSE 100 - Risers
CRH (CRH) 1,690.00p +3.11%
TUI AG Reg Shs (Post- 16/12/14)(DI) (TUIJ) 1,177.00p +2.53%
Mondi (MNDI) 1,166.00p +2.46%
Vodafone Group (VOD) 244.50p +2.43%
BT Group (BT.A) 430.70p +2.26%
Tesco (TSCO) 240.70p +2.06%
Smiths Group (SMIN) 1,159.00p +2.02%
Carnival (CCL) 3,145.00p +1.85%
Unilever (ULVR) 2,832.00p +1.69%
Shire Plc (SHP) 4,787.00p +1.55%
FTSE 100 - Fallers
Antofagasta (ANTO) 695.50p -3.27%
Glencore (GLEN) 257.45p -2.78%
Fresnillo (FRES) 893.50p -2.35%
Tullow Oil (TLW) 381.40p -1.78%
Randgold Resources Ltd. (RRS) 5,465.00p -1.62%
BG Group (BG.) 896.80p -1.55%
Rio Tinto (RIO) 2,921.50p -1.52%
Johnson Matthey (JMAT) 3,517.00p -0.96%
Standard Chartered (STAN) 945.50p -0.77%
Capita (CPI) 1,102.00p -0.36%
FTSE 250 - Risers
Afren (AFR) 21.49p +7.45%
Premier Farnell (PFL) 171.20p +4.01%
Balfour Beatty (BBY) 222.00p +2.97%
Henderson Group (HGG) 234.80p +2.80%
Workspace Group (WKP) 789.00p +2.47%
Micro Focus International (MCRO) 1,081.00p +2.37%
Jimmy Choo (CHOO) 171.90p +2.32%
Saga (SAGA) 165.00p +2.17%
SSP Group (SSPG) 270.50p +2.08%
Dairy Crest Group (DCG) 482.90p +1.88%
FTSE 250 - Fallers
Vedanta Resources (VED) 449.50p -4.28%
Centamin (DI) (CEY) 70.35p -2.43%
Telecom Plus (TEP) 1,068.00p -2.38%
Lonmin (LMI) 175.40p -2.34%
Soco International (SIA) 272.10p -2.19%
Debenhams (DEB) 72.25p -1.70%
Fidessa Group (FDSA) 2,369.00p -1.70%
Telecity Group (TCY) 845.00p -1.52%
Supergroup (SGP) 985.00p -1.50% |
| | UK Event Calendar | | Friday 23 January
INTERIM DIVIDEND PAYMENT DATE
Berkeley Group Holdings (The), Bonmarche Holdings, Burberry Group, Cranswick, Dixons Carphone , Ensor Holdings, Falkland Islands Holdings, Greene King, Halfords Group, Micro Focus International, Vertu Motors, WYG
QUARTERLY EX-DIVIDEND DATE
Marsh & Mclennan Cos Inc.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Existing Home Sales (US) (15:00)
Leading Indicators (US) (15:00)
IMSS
London Stock Exchange Group, Premier Foods
SPECIAL DIVIDEND PAYMENT DATE
Polymetal International
AGMS
Avacta Group, Keystone Inv Trust, Polar Capital Global Healthcare Growth & Income Trust, Solgold
TRADING ANNOUNCEMENTS
Close Brothers Group, Henry Boot, Miton Group
UK ECONOMIC ANNOUNCEMENTS
Internet Retail Sales (09:30)
Retail Sales (00:00) |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rally after ECB's QE announcement European stocks advanced as the market continued to weigh the European Central Bank's (ECB) decision to launch a quantitative easing (QE) programme. ECB president Mario Draghi on Thursday unveiled QE totalling €1.1trn, with the purchase of €60bn-worth of private and public securities each month until September 2016, slightly ahead of investors' expectations.
"QE supports our above-consensus view on euro growth and benefits inflation expectations, hence it will limit second-round effects from the oil price decline," said Danske Bank.
Italy's government bonds jumped as investors sought euro-area debt after the ECB said it would buy the securities. It pushed the 10-year yield below 1.5% for the first time.
The euro was down 0.83% at $1.1272 in morning trade.
The market is now turning to the Greek elections on Sunday, with Syriza leading the polls. Ahead of the elections, German Chancellor Angela Merkel said she wanted Greece to remain part of the Eurozone but must take responsibility for its debt. On Friday's agenda, there is a batch of manufacturing data in the Eurozone, China and US.
A preliminary reading of the HSBC Chinese purchasing managers' index (PMI) for manufacturing activity rose to 49.8 in January from a final reading of 49.6 in December. A reading above 50 indicates expansion, while a reading below 50 indicates contraction.
In the euro-area, Markit's PMI for manufacturing is expected to rise to 51.7 in January from 51.2 a month earlier.
Analysts estimate that Markit's PMI for US manufacturing may increase to 54 in January from 53.9 the previous month.
The US also sees the release of a report on existing home sales which is projected to show a 3% gain in December after a 6.1% fall in November.
In the UK, data is expected to reveal retail sales climbed 3.4% in December following a 6.9% increase a month before.
Bank of England Governor Mark Carney will speak in Davos after the central bank this week revealed it voted unanimously to keep policy unchanged amid low inflation.
His colleague, Andrew Gracie speaks in London in the morning.
Oil recovers as Saudi king dies
Brent crude increased 2.1% to $49.59 per barrel, according to the ICE.
Saudi Arabia's King Abdullah died overnight with Prince Salman, named as successor. Salman is expected to continue his predecessor's policy of maintaining oil production to preserve the country's 20% share of global crude sales.
Among companies, a gauge of miners declined such as Antofagasta, Glencore, and Frenillo, as metal prices dropped. |
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| | US Market Report | | US close: Stocks rally after ECB announces bond-buy programme US stocks staged a late rally on Thursday, as investors digested the news that the European Central Bank will commit to a €60bn-a-month bond-buying programme until September 2016.
The Dow Jones Industrial Average closed 259.70 points up at 17,813.98, while the S&P rose 31.03 points to 2,063.15 and the Nasdaq advanced by 1.8%.
ECB president Mario Draghi unveiled plans for a bond-buying programme designed to inject new life into the flagging Eurozone economy. Starting in March, the ECB will buy €60bn worth of private and public securities each month until September 2016.
"US markets were less impressed with the announcement, having been quiteblasé about the whole thing for the past two weeks, initially failing to be infected with the same wild optimism seen in Europe," said IG analyst Chris Beauchamp.
"However, having risen by over 2% since last week's lows, there are signs that Wall Street is taking comfort from earnings season and will drag itself higher thanks to the confluence of company news and the ECB.
"The tremors from the ECB have yet to be fully felt across the Atlantic, but at least the central bank is finally getting its act together, even if it may be too little, too late."
US initial jobless claims fell 10,000 to 307,000 in the week ended 17 January, stabilising above the reading of 300,000 analysts had estimated, while claims for the previous week were revised up to 317,000.
Reflecting the recent volatility, the four-week moving average for initial claims rose from 300,000 to 307,000.
In corporate news, Southwest Airlines rose 8.42% after reported better-than-expected quarterly profits on the back of greater passenger traffic and a hefty drop in fuel costs.
Janus Capital Group soared 12.96% after reporting its fourth quarter profit jumped 22%, while Verizon fell 0.93% after posting earnings excluding one-time items that were in-line with Wall Street's expectations.
Lands' End plummeted by over 17% after the group offered up a disappointing outlook, while eBay rose almost 7.05% after announcing late on Wednesday that its fourth-quarter results had met expectations.
American Express fell 3.76% after announcing late on Wednesday it will cut 4,000 jobs, even though its fourth-quarter earnings and revenue both rose but added a rise in fourth-quarter expenses and provisions for loans that could spell trouble.
On the back of Draghi's announcement, the dollar rose over 2.5% against the euro and gained 0.9% and 0.6% against the pound and the yen respectively.
According to the US Energy Information Administration, US crude supplies have reached a 80-year high and the price of West Texas Intermediate fell over 2.5% to just over $46.50 a barrel, while Brent crude fell just under 0.2% and was trading at just under $49 a barrel.
S&P 500 - Risers
Avon Products Inc. (AVP) $8.66 +14.55%
Southwest Airlines Co. (LUV) $45.35 +8.42%
Keycorp (KEY) $13.27 +7.62%
eBay Inc. (EBAY) $57.15 +7.05%
Regions Financial Corp. (RF) $9.19 +5.51%
Crown Castle International (CCI) $85.25 +4.78%
Union Pacific Corp. (UNP) $119.84 +4.76%
Johnson Controls Inc. (JCI) $48.03 +4.75%
Netflix Inc. (NFLX) $428.51 +4.70%
Comerica Inc. (CMA) $42.71 +4.68%
S&P 500 - Fallers
F5 Networks Inc. (FFIV) $113.27 -10.07%
Xilinx Inc. (XLNX) $38.96 -6.14%
Discover Financial Services (DFS) $57.32 -5.79%
American Express Co. (AXP) $84.37 -3.76%
Flowserve Corp. (FLS) $56.43 -2.64%
Biogen Idec Inc. (BIIB) $353.65 -2.26%
AES Corp. (AES) $12.92 -2.12%
Exelon Corp. (EXC) $37.25 -1.95%
Emerson Electric Co. (EMR) $59.81 -1.92%
ONEOK Inc. (OKE) $44.50 -1.92%
Dow Jones I.A - Risers
Unitedhealth Group Inc. (UNH) $113.85 +4.14%
JP Morgan Chase & Co. (JPM) $57.59 +3.04%
Travelers Company Inc. (TRV) $108.17 +3.01%
Goldman Sachs Group Inc. (GS) $182.04 +2.76%
Microsoft Corp. (MSFT) $47.11 +2.59%
Nike Inc. (NKE) $95.85 +2.50%
Home Depot Inc. (HD) $106.07 +2.45%
Boeing Co. (BA) $135.64 +2.44%
Cisco Systems Inc. (CSCO) $28.50 +2.37%
International Business Machines Corp. (IBM) $155.39 +2.17%
Dow Jones I.A - Fallers
American Express Co. (AXP) $84.37 -3.76%
Verizon Communications Inc. (VZ) $47.80 -0.93%
AT&T Inc. (T) $33.79 -0.62%
Nasdaq 100 - Risers
eBay Inc. (EBAY) $57.15 +7.05%
Netflix Inc. (NFLX) $428.51 +4.70%
Sba Communications Corp. (SBAC) $116.47 +4.56%
Amazon.Com Inc. (AMZN) $310.32 +4.40%
Symantec Corp. (SYMC) $26.68 +4.14%
Dollar Tree Inc (DLTR) $70.25 +3.60%
Tractor Supply Company (TSCO) $79.73 +3.42%
Dish Network Corp. (DISH) $74.27 +3.33%
Google Inc. (GOOGL) $537.30 +3.25%
Google Inc. Class C (GOOG) $534.39 +3.16%
Nasdaq 100 - Fallers
F5 Networks Inc. (FFIV) $113.27 -10.07%
Xilinx Inc. (XLNX) $38.96 -6.14%
Biogen Idec Inc. (BIIB) $353.65 -2.26%
Sandisk Corp. (SNDK) $78.90 -1.91%
Western Digital Corp. (WDC) $105.29 -1.26%
Vimpelcom Ltd Ads (VIP) $3.94 -1.01%
Check Point Software Technologies Ltd. (CHKP) $79.99 -0.84%
PACCAR Inc. (PCAR) $64.67 -0.66%
Broadcom Corp. (BRCM) $42.33 -0.66% |
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| | Newspaper Round Up | | Friday newspaper round-up: Saudi King, Iran nuclear talks, O2 takeover... Saudi state TV says King Abdullah, the purported US ally who joined Washington's fight against al-Qaeda, has died following a swirl of reports and rumours about his declining health, The Guardian published. His 79-year-old half brother, Crown Prince Salman, who recently took on the ailing monarch's responsibilities despite apparently being in poor health and suffering from dementia, was named as the successor, said the paper. Israel's intelligence agency, Mossad, has broken ranks with Binyamin Netanyahu, the prime minister, to warn that Republican-inspired sanctions on Iran would wreck nuclear talks, wrote The Times. John Kerry, the secretary of state, said that a senior Mossad official had told him that passing a new sanctions bill would be "like throwing a grenade into the process" of talks towards a deal with Iran on its nuclear programme, according to the paper.
Hutchison Whampoa, the owner of the mobile operator Three, is to buy rival O2 from Spanish telecoms giant Telefonica, in a £10bn cash deal that will mean more upheaval for a sector still digesting BT's planned takeover of EE. The two sides were ironing out the final details on Thursday night with a deal to be announced on Friday morning, said The Telegraph.
Britain's only Green-led council is in turmoil over a planned referendum on a council tax increase and anger about parking charges and overflowing bins, The Times reported. The local party has called on Jason Kitcat, leader of Brighton and Hove council, to resign immediately, after voting down his proposals to balance the budget and put up council tax, said the paper.
The Guardian wrote that the NHS will end up with a £65bn hole in its finances by 2030 unless ministers plug the gap or allow the quality or availability of care to slip, say health economists. The paper continued that the Health Foundation analysis identifies the sum as the extra amount of Treasury funding the NHS will need by then because it is unlikely to meet unrealistically optimistic productivity targets. | | |
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