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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 wavering as Economists less worried about Greek fallout London stocks started the morning moderately lower after Greece's anti-austerity Syriza party came within a whisker of gaining an outright majority in Sunday's elections, although various economists seemed sanguine that even under a worst case scenario the threat to the Eurozone as a whole was rather limited given the financial reforms put in place over the last few years.
By 09:15 the FTSE 100 had pepped up and was marginally in positive territory, trading 2.18 points higher at 6,835.01.
Following an initial bout of weakness the euro/dollar was also to be seen higher, appreciating by 0.89% to stand at 1.1246.
In a statement following last night's Greek elections Germany's finance ministry reiterated that finance minister Wolfgang Schaeuble's stance was unchanged.
It read: "The agreements reached with Greece remain valid."
Economists expect little volatility as a result of elections
On Sunday Erik Nielsen, global chief economist at Unicredit Bank, wrote: "A disaster scenario, which would lead Greece onto a slippery slope out of the Eurozone, cannot be excluded.
"Breaking with Europe would be a terrible move for Greece - but the rest of the Eurozone, particularly as the ECB has already announced the opening shot of QE, will skate through with only temporary and minor volatility."
The Eurozone's finance minsiters were expected to broach the situation in the Mediterranen country when they met later on Monday. The yield on Greek 10-year sovereign bonds was higher by 22 basis points to 8.72%.
Copper futures on the other hand were coming under heavy selling pressure, surrendering over 3% to change hands at $5,345 a ton in London - close to their lowest level since July 2009.
The Russian rouble was also taking a hit after fighting in Ukraine engulfed the port city of Mariupol over the weekend.
Germany's IFO institute was set to release its widely-followed gauge of business confidence, for the month of January, at 09:00.
Corporate news
Rolls-Royce has been awarded a contract to supply engines for major Chinese locomotive manufacturer CNR Dalian, marking its entry into that country's market for freight locomotives for export. The british engineer is to deliver 232 of its MTU Series 400 engines to CNR, the most powerful ones in that model series. They will be used in Transnet Freight Rail's new locomotives which the South African operator is in the process of upgrading.
IAG, the owner of British Airways, will reportedly announce that Irish airline Aer Lingus has accepted its recent takeover bid. The Irish carrier confirmed on Sunday that it was considering a new offer of €2.50 per share in a move which values it at €1.3bn. The FTSE 100 group may, however, face difficulties getting Irish officials to agree to the takover.
Energy supplier SSE has announced a 4.1% cut to its gas prices from 30 April and said its full-year results would be in line with expectations but warned of continuing challenging business conditions in its new financial year.
Diamond mine operator Petra Diamonds saw sales jump by 16% in the first six months of the year, to reach $214.8m, but warned that it may not meet analysts' expectations for full-year profits. The miner's increased sales in the period were in part thanks to the sale of two exceptional diamonds for a combined revenue of $38.7m. |
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| | techMARK 3,099.45 +0.27%
FTSE 100 6,823.32 -0.14%
FTSE 250 16,418.92 -0.24%
FTSE 100 - Risers
International Consolidated Airlines Group SA (CDI) (IAG) 554.00p +3.36%
Shire Plc (SHP) 4,976.00p +3.32%
SSE (SSE) 1,517.00p +1.68%
easyJet (EZJ) 1,762.00p +1.56%
Aviva (AV.) 544.00p +1.40%
Ashtead Group (AHT) 1,107.00p +1.28%
Intertek Group (ITRK) 2,354.00p +1.12%
Friends Life Group Limited (FLG) 411.30p +1.06%
Mondi (MNDI) 1,162.00p +1.04%
Associated British Foods (ABF) 3,111.00p +1.01%
FTSE 100 - Fallers
BHP Billiton (BLT) 1,381.00p -3.09%
Anglo American (AAL) 1,071.50p -2.90%
Glencore (GLEN) 242.65p -2.71%
Tullow Oil (TLW) 361.80p -2.56%
Rio Tinto (RIO) 2,822.50p -2.10%
BG Group (BG.) 878.40p -1.49%
Antofagasta (ANTO) 675.00p -1.39%
Randgold Resources Ltd. (RRS) 5,345.00p -1.38%
BP (BP.) 426.65p -1.33%
Morrison (Wm) Supermarkets (MRW) 196.50p -1.31%
FTSE 250 - Risers
Berkeley Group Holdings (The) (BKG) 2,407.00p +2.16%
Go-Ahead Group (GOG) 2,540.00p +2.01%
Indivior (INDV) 168.90p +1.99%
AL Noor Hospitals Group (ANH) 924.50p +1.71%
Howden Joinery Group (HWDN) 430.20p +1.63%
Electrocomponents (ECM) 204.70p +1.49%
Betfair Group (BET) 1,573.00p +1.48%
Alent (ALNT) 380.00p +1.39%
UBM (UBM) 535.00p +1.13%
Cineworld Group (CINE) 442.20p +1.12%
FTSE 250 - Fallers
Petra Diamonds Ltd.(DI) (PDL) 168.50p -6.65%
Hunting (HTG) 432.60p -6.04%
Telecom Plus (TEP) 979.50p -5.64%
Vedanta Resources (VED) 410.00p -4.65%
WH Smith (SMWH) 1,350.00p -3.43%
Afren (AFR) 19.08p -3.39%
Cairn Energy (CNE) 173.20p -2.97%
Kaz Minerals (KAZ) 191.50p -2.84%
Premier Oil (PMO) 140.00p -2.78%
Entertainment One Limited (ETO) 271.00p -2.66% |
| | UK Event Calendar | | Monday 26 January
INTERIM EX-DIVIDEND DATE
Tongaat-Hulett Ltd.
QUARTERLY PAYMENT DATE
General Electric Co
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
IFO Business Climate (GER) (09:00)
IFO Current Assessment (GER) (09:00)
IFO Expectations (GER) (09:00)
FINALS
Porvair, SThree
IMSS
Aveva Group, LondonMetric Property
EGMS
Societatea Nationala De Gaze Naturale Romgaz S.A. GDR (Reg S)
AGMS
JPMorgan Chinese Inv Trust, Punch Taverns
FINAL DIVIDEND PAYMENT DATE
Barloworld Ltd., Proactis Holdings |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | European Open: Stocks gain as Syriza falls short of outright majority
European stocks began the day moving lower after Greece's far-left Syriza party's stunning victory on Sunday, but for the most quickly recovered their poise to trade near unchanged.
As of 09:15 the Dax-30 was actually higher by 0.32% to reach 10,677.72. The FTSE Mibtel on the other hand was down 0.98% to 20,320.72. Spain's benchmark Ibex 35 and Paris's Cac-40 were nearly unchanged.
Economists expect little volatility as a result of elections
Contrary to the markets' worst fears Syriza did not achieve an outright majority, although it did come quite close. Deutsche Bank’s George Saravelos wrote last night that, “the election outcome in Greece this evening is at the very top-end of an “anti-austerity” mandate that the electorate could deliver.”
Syriza have won 36.4% of the vote compared to 27.8% for the governing New Democracy party and are projected to win 149 seats vs the 151 needed for a majority on the 300 seat parliament, the German broker added in a note to clients.
Even so, various other economists seemed sanguine that even under a worst case scenario the threat to the Eurozone as a whole was rather limited given the financial reforms put in place over the last few yeas.
Erik Nielsen, global chief economist at Unicredit Bank AG, wrote: “A disaster scenario, which would lead Greece onto a slippery slope out of the Eurozone, cannot be excluded.
"Breaking with Europe would be a terrible move for Greece – but the rest of the Eurozone, particularly as the ECB has already announced the opening shot of QE, will skate through with only temporary and minor volatility.”
The Eurozone's finance ministers were expected to broach the situation in the Mediterrenean country when they met later on Monday. The yield on
Greek 10-year sovereign bonds yields were higher by 22 basis points to 8.72%.
Following an initial bout of weakness the euro/dollar could be seen higher , appreciating by 0.89% to stand at 1.1246.
In a statement following last night's Greek elections Germany’s Finance Ministry reiterated that Finance Minister Wolfgang Schaeuble’s stance was unchanged.
It read: “The agreements reached with Greece remain valid.”
Commodities take a hit
Copper futures on the other hand were coming under heavy selling pressure, surrendering over 3% to change hands at $5,345 a ton in London - close to their lowest level since July 2009. Front month Brent crude futures were falling by -1.9% to $47.86 per barrel on the ICE.
The Russian rouble was also registering losses after fighting in Ukraine engulfed the port city of Mariupol over the weekend.
The German IFO institute's widely-followed gauge of business confidence, for the month of January, edged slightly past forecasts, rising to a level of 106.7 from 105.5 in the month before.
The consensus forecast had been for an increase to 106.3.
Grocers in focus, commodities lower
Within the DJ Stoxx 600 the sharpest losses were to be seen in the following industrial groups: Basic Resources (-1.89%), Oil&Gas (-1.49%) and Banks (-0.88%).
Belgian supermarket group Delhaize achieved better-than-expected sales growth in the United States in the fourth quarter.
The family which owns the iconic French department store Galeries Lafayette has increased its stake in supermarket chain Carrefour to 9.5%, Les Echos revealed on Monday.
Rolls-Royce has been awarded a contract to supply engines for major Chinese locomotive manufacturer CNR Dalian, marking its entry into that country's market for freight locomotives for export.
IAG, the owner of British Airways, will reportedly announce that Irish airline Aer Lingus has accepted its recent takeover bid. The Irish carrier confirmed on Sunday that it was considering a new offer of €2.50 per share in a move which values it at €1.3bn. The FTSE 100 group may, however, faces difficulties getting Irish officials to agree to the takover. |
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| | US Market Report | | US close: Markets mixed following ECB decision and lower than expected home sales US stocks were mixed on Friday after the positive impact of the ECB failed to last into the afternoon.
The Dow Jones Industrial Average fell 0.79% to 17,672.60 while Nasdaq grew 0.18% to 4,278.14 while S&P 500 dropped 0.55% to 2,051.82.
US existing home sales came in at 5.04m, broadly in line with consensus estimates of 5.08m. Barclays research said: "The December acceleration in existing home sales puts the Q4 average pace of sales at 5.07m, a sequential decline from Q3 (5.12m) but above Q2 levels (4.87m). We continue to expect residential investment to contribute to overall growth in Q4."
However, Connor Campbell from Spreadex added: "After appearing to reverse its New Year slump this week, the US markets were dealt a blow as both flash manufacturing data and existing home sales both came in lower than expected.
"This has been the trend for 2015's US data, and after the astonishing run the Dow Jones went on last year, investors have been thoroughly disappointed in the USA's start to the New Year."
IG analyst Chris Beauchamp said: "GE and McDonald's set the tone for the afternoon with lacklustre figures, and the latter added to the gloom with a very downbeat outlook that indicates the first months of 2015 will be just as hard as the end of 2014. Unsurprisingly the shares dropped rapidly before recovering to stand down 0.6% as the session continued."
Oil prices were making gains during the day with WTI up 4.8% to $48.60 a barrel and Brent up 3.3% to $49.94 a barrel.
Over on COMEX, gold futures fell 0.49% to $1,294.30 while the dollar rose against the pound, the yen, and the euro.
The yield on a benchmark US 10-year Treasury fell eight basis points to 1.79%.
S&P 500 - Risers
E*TRADE Financial Corp. (ETFC) $24.56 +8.41%
Starbucks Corp. (SBUX) $88.22 +6.62%
Valero Energy Corp. (VLO) $50.16 +4.50%
Tesoro Corp. (TSO) $79.62 +4.00%
Marathon Petroleum Corporation (MPC) $87.16 +3.80%
Honeywell International Inc. (HON) $102.50 +3.13%
Harman International Industries Inc. (HAR) $101.56 +2.71%
Dollar Tree Inc (DLTR) $72.07 +2.59%
Netflix Inc. (NFLX) $437.45 +2.10%
Hasbro Inc (HAS) $54.94 +2.04%
S&P 500 - Fallers
United Parcel Service Inc. (UPS) $102.93 -9.91%
United States Steel Corp. (X) $20.58 -9.38%
KLA-Tencor Corp. (KLAC) $65.24 -8.05%
Avon Products Inc. (AVP) $7.98 -7.85%
Sealed Air Corp. (SEE) $40.04 -6.99%
Peabody Energy Corp. (BTU) $6.30 -6.39%
Kimberly-Clark Corp. (KMB) $111.65 -6.16%
State Street Corp. (STT) $72.40 -6.08%
Kansas City Southern (KSU) $107.79 -5.20%
Bank Of New York Mellon Corp. (BK) $36.90 -4.70%
Dow Jones I.A - Risers
General Electric Co. (GE) $24.48 +0.82%
Nike Inc. (NKE) $96.16 +0.32%
International Business Machines Corp. (IBM) $155.87 +0.31%
Visa Inc. (V) $258.29 +0.27%
Wal-Mart Stores Inc. (WMT) $88.51 +0.24%
Microsoft Corp. (MSFT) $47.18 +0.11%
Dow Jones I.A - Fallers
Exxon Mobil Corp. (XOM) $90.89 -2.13%
Chevron Corp. (CVX) $106.85 -1.90%
E.I. du Pont de Nemours and Co. (DD) $73.79 -1.73%
Procter & Gamble Co. (PG) $90.08 -1.68%
Unitedhealth Group Inc. (UNH) $112.00 -1.62%
JP Morgan Chase & Co. (JPM) $56.68 -1.58%
Johnson & Johnson (JNJ) $102.20 -1.50%
McDonald's Corp. (MCD) $89.56 -1.46%
Caterpillar Inc. (CAT) $85.61 -1.39%
Verizon Communications Inc. (VZ) $47.15 -1.36%
Nasdaq 100 - Risers
Starbucks Corp. (SBUX) $88.22 +6.62%
Dollar Tree Inc (DLTR) $72.07 +2.59%
Maxim Integrated Products Inc. (MXIM) $33.76 +2.27%
Netflix Inc. (NFLX) $437.45 +2.10%
Expedia Inc. (EXPE) $87.44 +2.02%
Avago Technologies Ltd. (AVGO) $106.98 +1.69%
Illumina Inc. (ILMN) $197.16 +1.69%
Alexion Pharmaceuticals Inc. (ALXN) $183.32 +1.66%
Sba Communications Corp. (SBAC) $118.38 +1.64%
CA Inc. (CA) $31.01 +1.54%
Nasdaq 100 - Fallers
KLA-Tencor Corp. (KLAC) $65.24 -8.05%
Keurig Green Mountain Inc (GMCR) $131.08 -2.69%
Altera Corp. (ALTR) $34.26 -2.64%
Applied Materials Inc. (AMAT) $24.11 -2.07%
TripAdvisor Inc. (TRIP) $69.77 -1.90%
Mondelez International Inc. (MDLZ) $36.94 -1.73%
Liberty Media Corporation - Class A (LMCA) $34.55 -1.68%
Intuitive Surgical Inc. (ISRG) $517.57 -1.49%
Vertex Pharmaceuticals Inc. (VRTX) $125.57 -1.36% |
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| | Newspaper Round Up | | Monday newspaper round-up: Greek election, IS hack, IAG takeover... Greece sent shockwaves across Europe last night as anti-austerity party that has promised to end austerity and refuse to take orders from Berlin and Brussels triumphed in the country's election, wrote The Times. Syriza, founded by ex-communists and led by the firebrand Alexis Tsipras, is the first of a new wave of anti-cutback parties on the Continent to take power since the financial crisis, the paper said.
George Osborne has requested that ministers make dozens of interventions to fast-track fracking projects for oil in the UK as a "personal priority", including the delivery of numerous "asks" from shale gas company Cuadrilla, according to The Guardian. The list of requests are laid out in a leaked letter to the chancellor's cabinet colleagues. The Guardian said they include interventions in local planning, and offering public land for potential future drilling. Anti-fracking campaigners claim the letter reveals collusion with the industry, while Labour said it showed the government was an "unabashed cheerleader for fracking".
The board of Aer Lingus is expected to recommend a €1.34bn cash bid from British Airways owner IAG, said the Financial Times, which would open a major public debate over the Irish government's 25% stake in the nation's flag carrier. The €2.50 a share cash takeover approach by IAG was its third bid in just over a month. The paper said people familiar with the matter said that the two sides could announce the start of formal talks to finalise a deal in the next few days, but warned that the situation remained fluid. IAG and Aer Lingus declined to comment.
Hackers claiming to be supporters of the Islamic State have hijacked the Malaysia Airlines website this morning, printed The Times. People trying to log on to the site are being greeted by the image of a tuxedo-wearing lizard, and read "Hacked by Lizard Squad Official Cyber Caliphate", the paper said. It also carried the headline "404 - Plane Not Found", a reference to the loss of MH370 last year with 239 people aboard.
Scotland-based Redeem, which recycles mobile phones and sells them on, mostly to consumers in emerging markets, has won a new three-year deal with O2, The Telegraph reported. Half a million people traded in their phones last year to the network operator, claiming back £30m, up by a fifth on 2013, the paper said.
The immigrant population of London has more than doubled since 1971 and is on course to account for over half of the capital's residents within 16 years, analysis by The Times has revealed. The paper wrote that after a record spike predicted this year, the foreign-born population is predicted to rise to more than five million in 2031 as the capital's total population tips over ten million.
David Cameron will reaffirm the Conservatives' commitment to tax cuts in a speech on Monday, arguing that "after years of sacrifice, the British people deserve a reward", wrote The Guardian. Depicting the general election as the nation's "tax moment", the prime minister will say that voters have to choose between a Conservative party committed to tax cuts worth £7bn and Labour and the Liberal Democrats, which he will describe as tax-rising "enemies of aspiration", according to the paper. | | |
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