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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: Tesco leads stock surge ahead of economic data, BoE decision Big gains from Tesco and a strong finish on Wall Street helped drive UK markets higher on Thursday morning, as investors awaited a flurry of economic data and a policy decision by the Bank of England (BoE). Heavyweight grocer Tesco was leading the risers early on after investors applauded the supermarket's turnaround plans and an improvement in trading over the key Christmas period.
London's FTSE 100 was trading 1.3% higher at 6,502.
US stocks snapped a five-day losing streak on Wednesday, with the S&P 500 registering its first gain of the year, following a calmer session for currency and commodity markets.
Crude prices gained - Brent recovered after briefly dipping below the $50-a-barrel mark - after data showed that US stockpiles unexpectedly shrank last week. Prices were more or less flat on Thursday morning.
Meanwhile, markets gave a largely neutral reaction to the minutes from the last Federal Open Market Committee meeting, which showed that officials would be patient over the first increase in interest rates. The details of the discussions at that last meeting suggested that the first hike would not come before April.
As for Thursday's session, investors will be focused on economic confidence data and retail sales figures in the Eurozone, a BoE rate decision and further labour-market figures in the States.
US jobless claims will be closely watched ahead of the all-important US jobs report on Friday, which is expected to reveal that non-farm payrolls increased by 240,000 in December, compared with 321,000 in November. The unemployment rate is forecast to fall to 5.7% from 5.8%.
The BoE, which is due to make an announcement at midday, is widely expected to keep interest rates and the size of its asset purchase programme on hold. Analyst James Hughes from Alpari UK said that with inflation still currently subdued, "there is no real need to push ahead with a change in monetary policy and we may not see a rate hike now in the UK until 2016".
Tesco jumps as turnaround plan unveiled
Tesco's shares surged nearly 6% after it said it would cut costs substantially next year, close 43 unprofitable stores and lower prices, as chief executive Dave Lewis attempts to turn around the struggling supermarket chain. The news came as the company unveiled a "broad-based improvement" in UK trading with the like-for-like (LFL) sales decline easing to just 0.3% over Christmas.
Rival chains J Sainsbury and Wm Morrison were also putting in a decent performance on the stock market early on.
However, news that Tesco had poached Halfords chief executive Matt Davies sent shares in the bicycling and car parts retailer skidding downwards. Since Davies was appointed in 2012 amid a hopeful fanfare about his turnaround mission, shares in the company had more than doubled thanks to his efforts to improve the ailing business.
Retailer Marks & Spencer was heading lower after sales of general merchandise and womenswear over the Christmas period were significantly worse than had been expected, falling 5.8% on a LFL basis.
Building materials group CRH gained after saying its multiyear €1.5bn-2bn divestment programme announced last August was "well underway" after it sold off 16 assets in 2014. The company said it is "now well-positioned to pursue acquisitions which are in line with our long-term growth strategy".
Broadcaster ITV was in demand with some City folk joking that it might not be a coincidence that unloved football co-commentator Andy Townsend had been given the boot. |
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| Market Movers
techMARK 2,972.07 +1.17%
FTSE 100 6,502.27 +1.28%
FTSE 250 16,001.26 +0.94%
FTSE 100 - Risers
Tesco (TSCO) 192.10p +5.55%
Sainsbury (J) (SBRY) 237.10p +3.27%
Travis Perkins (TPK) 1,830.00p +3.04%
Compass Group (CPG) 1,087.00p +2.55%
Schroders (SDR) 2,646.00p +2.40%
Morrison (Wm) Supermarkets (MRW) 175.40p +2.33%
Wolseley (WOS) 3,703.00p +2.29%
Ashtead Group (AHT) 1,134.00p +2.25%
Babcock International Group (BAB) 1,065.00p +2.21%
Aberdeen Asset Management (ADN) 428.00p +2.20%
FTSE 100 - Fallers
Marks & Spencer Group (MKS) 449.90p -2.87%
Sage Group (SGE) 456.00p -0.87%
SSE (SSE) 1,589.00p -0.69%
Randgold Resources Ltd. (RRS) 4,787.00p -0.35%
Fresnillo (FRES) 796.00p -0.25%
Persimmon (PSN) 1,538.00p -0.19%
Taylor Wimpey (TW.) 132.20p -0.15%
FTSE 250 - Risers
Howden Joinery Group (HWDN) 414.00p +5.56%
Hays (HAS) 147.00p +3.52%
Rightmove (RMV) 2,262.00p +2.91%
Dunelm Group (DNLM) 878.50p +2.75%
Man Group (EMG) 164.60p +2.75%
Entertainment One Limited (ETO) 313.40p +2.72%
JD Sports Fashion (JD.) 488.60p +2.69%
Tullett Prebon (TLPR) 292.00p +2.67%
Ted Baker (TED) 2,320.00p +2.65%
Informa (INF) 474.10p +2.51%
FTSE 250 - Fallers
Halfords Group (HFD) 437.30p -5.45%
Centamin (DI) (CEY) 63.00p -2.78%
Dairy Crest Group (DCG) 476.40p -2.18%
Zoopla Property Group (WI) (ZPLA) 188.80p -2.02%
Diploma (DPLM) 705.50p -1.88%
Supergroup (SGP) 784.50p -1.01%
WH Smith (SMWH) 1,328.00p -0.97%
Renishaw (RSW) 2,308.00p -0.77%
IP Group (IPO) 207.60p -0.76% |
| | UK Event Calendar | | Thursday January 08
INTERIM DIVIDEND PAYMENT DATE
3i Infrastructure, Big Yellow Group, Caledonia Investments, Croma Security Solutions Group, Mckay Securities
INTERIM EX-DIVIDEND DATE
Aberdeen New Dawn Investment Trust, Bisichi Mining, Dairy Crest Group, Hibernia Reit , ICAP, Latham (James), Monks Inv Trust, Pinewood Shepperton, Speedy Hire, Workspace Group
QUARTERLY PAYMENT DATE
GlaxoSmithKline, Land Securities Group
QUARTERLY EX-DIVIDEND DATE
Assura Group Ltd., British Land Co, Investors Capital Trust 'A' Shares, Verizon Communications
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Credit (US) (20:00)
Factory Orders (GER) (11:00)
Retail Sales (GER) (07:00)
GMS
Countrywide, MediaZest
IMSS
Marks & Spencer Group
SPECIAL EX-DIVIDEND PAYMENT DATE
European Investment Trust
AGMS
Radiant Growth Investments Ltd
TRADING ANNOUNCEMENTS
Hays, Interserve, Morrison (Wm) Supermarkets, Tesco
FINAL EX-DIVIDEND DATE
Character Group, Connect Group, Conygar Investment Company, DotDigital Group, Dragon-Ukrainian Properties & Development, Edinburgh Worldwide Inv Trust, European Investment Trust, ITE Group, JPMorgan Asian Inv Trust, Lowland Investment Co, Majedie Investments, Paragon Group Of Companies, Schroder Asia Pacific Fund, Standard Life European Private Equity Trust, WH Smith |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rally on prospects for ECB's full-blown QE European stocks advanced on the back of speculation that the European Central Bank (ECB) will introduce full-blown quantitative easing to address deflation. Eurostat's flash estimate on Wednesday revealed that Eurozone consumer prices fell 0.2% in December, following a 0.3% gain a month earlier, surprising analysts that had expected a 0.1% drop.
The ECB, which is targeting inflation of just under 2%, is now under further pressure to take more action at its 22 January meeting.
Meanwhile, German Chancellor Angela Merkel on Wednesday backed keeping Greece in the euro-area as she visited London. She said the German government has consistently tried to save the nation from exiting the currency bloc.
Turning to Thursday's economic calendar, a report showed German factory orders fell 0.4% year-on-year in November following a 2.6% the previous month. Economists had pencilled in a 0.1% increase.
At 10:00 London time data may reveal the Eurozone economic confidence dipped in December, according to forecasts. The sentiment index is expected to drop to 101.2 from 100.8 in November.
In the UK, the Bank of England announces its latest policy decision at 12:00 and is projected to keep asset purchases at £375bn and interest rates at 0.50%.
Stateside sees the release of figures on weekly jobless claims figures and consumer credit.
Standard Chartered, Tesco
Standard Chartered rallied after saying it is closing its institutional equities business and eliminating about 200 jobs to cut costs.
Tesco jumped after chief executive Dave Lewis laid plans for reviving the struggling UK grocer.
Marks & Spencer Group slumped after reporting disappointing sales at its struggling womenswear division in the third quarter.
The euro fell 0.35% to $1.1797. |
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| | US Market Report | | US close: Markets advance after a day of positive economic data Markets rose on Wednesday alongside higher than expected US ADP employment results ahead of news from the Fed. Early in the day the Dow Jones Industrial Average increased 1.04% to 17,552.41, the S&P 500 rose by 1.03% and Nasdaq ascended 1.17%.
IG market analyst David Madden said: "The Dow Jones is up 159 points, at 17,531, as the solid ADP employment figures sharpened traders' minds for the jobs report on Friday.
"The jump in the number of private sector jobs created in December was well received by dealers, and the upward revision of the November report was the icing on the cake.
"The Fed minutes this evening could add to the excitement as although the phrase 'considerable time' was included in the December statement, the change in tone suggested rates will not remain rock bottom forever. The US central bank will start laying the ground work for a rate rise well in advance and any change in language will be under scrutiny."
Financial analyst for Spreadex Connor Campbell added: "The US markets put some distance between their recent losses this afternoon as ADP non-farm employment change numbers and trade balance data came in better than expected.
"This former figure is especially important, as it bodes well for Friday's government released figure, and currently points to a strong end to the week for the Dow Jones and company. "
Crude futures were mixed as WTI figures closed around 1.823% up to $48.82 a barrel, while Brent futures opened on a dip of about 0.020% or $51.09 a barrel.
Campbell noted: "The US crude oil inventories put a spanner in the works; despite a fall in the number of crude barrels produced, a rise in gasoline had a negative effect on the commodi"
Over on COMEX, gold futures were falling 0.72% to $1,210.60 while the dollar was prevailing against the pound, the yen and the euro.
The yield on a benchmark US 10-year Treasury climbed three basis points to 1.97%.
Meanwhile, in the corporate world Keurig Green Mountain was soaring by 4.58% to $133.02 while Helmerich & Payne was plummeting by 6.60% to $59.46.
S&P 500 - Risers
Alexion Pharmaceuticals Inc. (ALXN) $187.93 +5.61%
Biogen Idec Inc. (BIIB) $353.24 +5.56%
D. R. Horton Inc. (DHI) $25.35 +5.14%
Tenet Healthcare Corp. (THC) $50.98 +4.98%
Lennar Corp. Class A (LEN) $45.73 +4.93%
PulteGroup Inc. (PHM) $21.72 +4.93%
Gap Inc. (GPS) $43.60 +4.83%
Keurig Green Mountain Inc (GMCR) $133.02 +4.58%
Chipotle Mexican Grill Inc. (CMG) $694.26 +4.50%
Campbell Soup Co. (CPB) $44.94 +4.41%
S&P 500 - Fallers
Helmerich & Payne Inc. (HP) $59.46 -6.60%
Newfield Exploration Co (NFX) $23.61 -4.02%
Twenty-First Century Fox Inc Class A (FOXA) $35.31 -3.56%
Nabors Industries Ltd. (NBR) $11.25 -3.52%
FMC Technologies Inc. (FTI) $42.27 -3.43%
Joy Global Inc. (JOY) $43.02 -3.33%
Denbury Resources Inc. (DNR) $6.88 -2.96%
Range Resources Corp. (RRC) $49.12 -2.91%
Genworth Financial Inc. (GNW) $7.83 -2.61%
Micron Technology Inc. (MU) $32.10 -2.34%
Dow Jones I.A - Risers
Home Depot Inc. (HD) $104.41 +3.43%
Wal-Mart Stores Inc. (WMT) $88.60 +2.65%
Johnson & Johnson (JNJ) $105.56 +2.21%
Merck & Co. Inc. (MRK) $61.61 +2.14%
Intel Corp. (INTC) $36.02 +2.10%
Nike Inc. (NKE) $94.87 +2.07%
E.I. du Pont de Nemours and Co. (DD) $72.31 +2.00%
American Express Co. (AXP) $90.30 +1.88%
McDonald's Corp. (MCD) $94.01 +1.74%
Travelers Company Inc. (TRV) $105.00 +1.70%
Dow Jones I.A - Fallers
Verizon Communications Inc. (VZ) $46.19 -1.81%
AT&T Inc. (T) $33.17 -1.28%
International Business Machines Corp. (IBM) $155.05 -0.65%
Chevron Corp. (CVX) $107.94 -0.08%
Nasdaq 100 - Risers
Alexion Pharmaceuticals Inc. (ALXN) $187.93 +5.61%
Biogen Idec Inc. (BIIB) $353.24 +5.56%
Keurig Green Mountain Inc (GMCR) $133.02 +4.58%
Bed Bath & Beyond Inc. (BBBY) $78.21 +3.69%
Celgene Corp. (CELG) $114.55 +3.66%
Mylan Inc. (MYL) $56.11 +3.56%
Illumina Inc. (ILMN) $194.92 +3.51%
Amgen Inc. (AMGN) $158.24 +3.49%
Monster Beverage Corp (MNST) $115.96 +3.28%
Cognizant Technology Solutions Corp. (CTSH) $52.65 +3.28%
Nasdaq 100 - Fallers
Twenty-First Century Fox Inc Class A (FOXA) $35.31 -3.56%
Micron Technology Inc. (MU) $32.10 -2.34%
Activision Blizzard Inc. (ATVI) $19.06 -2.18%
Yahoo! Inc. (YHOO) $48.59 -1.26%
Priceline Group Inc (PCLN) $1,069.57 -0.96%
Akamai Technologies Inc. (AKAM) $60.16 -0.84%
Viacom Inc. Class B (VIAB) $71.30 -0.77%
Catamaran Corp (CTRX) $48.54 -0.74%
Sandisk Corp. (SNDK) $94.77 -0.72% |
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| | Newspaper Round Up | | Thursday newspaper round-up: StanChart, Oil prices, City Link... Banking group Standard Chartered has exited its global equities business, the Financial Times writes, "in an abrupt move that underscores the bank's efforts to cut costs and refocus its business, and is also axing another 2,000 jobs in its retail division". Brent crude on Wednesday dropped below $50 a barrel for the first time since the the Great Recession in 2009, writes The Guardian. Oil had fallen as low as $49.66, before recovering to $51 after US stockpile data was not as bad as feared.
According to analysts at Bank of America-Merrill Lynch, if Brent crude falls to $40 a barrel in the near term, Saudi Arabia or non-OPEC producers could be forced to cut production, writes The Telegraph.
Collapsed parcel delivery firm City Link is to shed a further 230 jobs as the administrator closes its remaining 51 depots by the end of next week, according to The Guardian.
One of the architects of the Beats headphone range has said that he was duped out of millions of dollars after the $3.2bn purchase of the company by Apple, writes The Times.
The Times, citing research by Savills, has reported that annual house-price growth in London's most sought-after boroughs was 2.6% last year, while growth in the UK's top regional markets was 3.2%.
The Eurozone has officially slipped into deflation, The Telegraph reported, further raising the prospect of a multi-billion euro intervention by the region's central bank to try and prop up the sluggish economy. Prices in the euro area in December were 0.2% lower than a year earlier, far short of the European Central Bank's target of just under 25 inflation and worse than forecasts of a 0.1%. | | |
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