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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: Markets slip ahead of US data, supermarkets and housebuilders fall UK stocks endured a subdued start on Friday morning following a huge jump the previous session as markets paused for breath ahead of the pivotal US jobs report. The FTSE 100 was down 0.2% at 6,554 early on, with supermarket stocks pulling back after a strong rally and housebuilders hit by some negative broker comments.
The index jumped 2.3% to 6,569.96 on Thursday, its highest finish of the year so far, after supermarket giant Tesco's turnaround plan pleased the market and hopes for further central-bank stimulus in Europe boosted sentiment.
The latter factor saw the euro fall within an inch of its lowest level against the dollar since the currency's formation in 1999. The euro dropped to $1.175, its lowest since December 2005, within a whisker of the $1.1789 mark it started trading at when it was launched.
The focus of Friday's session is likely to be the all-important US non-farm payrolls report due out before the opening bell on Wall Street. The consensus forecast is for a 240,000 increase in payrolls in December, compared with November's better-than-expected 321,000 gain.
"Markets aren't expecting any significant negative surprises so even a slight miss to the downside won't undermine sentiment too much," said analyst Michael Hewson from CMC Markets UK.
Data released overnight showed that Chinese factory gate deflation worsened last month. The Chinese producer price index weakened to minus-3.3% year-on-year in December, from minus-2.7% in November and below the minus-3.1% forecast.
While Chinese consumer price inflation improved to 1.5% in December from a five-year low of 1.4% the previous month, it remains well below the government's 3.5% target and "points towards the open possibility for monetary easing from the People's Bank of China in the opening months of the year", said analyst Jameel Ahmad from FXTM.
Grocers, housebuilders provide a drag
Supermarket stocks were under pressure on Friday, with Tesco in particular pulling back after a 15% surge the previous session. Rivals J Sainsbury and Wm Morrison were also in reverse after rallying strongly on Thursday.
Weighing on Tesco's shares was the news that ratings agency Moody's has cut the UK grocer's debt to 'junk', saying that measures announced on Thursday to revive the struggling business "will take time to implement". Analysts said that Tesco's "financial profile is likely to remain leveraged beyond what we consider to be commensurate with an investment-grade profile".
Housebuilders such as Barratt Developments, Taylor Wimpey, Redrow and Bellway were trading with heavy losses as analysts at Jefferies downgraded their ratings on stocks across the sector.
Electronic components supplier Laird, a key Apple supplier, underwhelmed despite announcing its confidence in meeting expectations for full-year results after a good fourth quarter. The group said trading in the latter months of the year left management "encouraged by the outlook", but shares fell sharply early on.
Restaurant Group, the owner of Frankie & Benny's, Garfunkel's and Chiquito eateries, edged higher after saying that like-for-like sales over the Christmas period were strong and that full-year results will meet the market's forecasts for "material growth". |
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| Market Movers
techMARK 2,994.54 -0.08%
FTSE 100 6,554.00 -0.24%
FTSE 250 16,039.69 -0.28%
FTSE 100 - Risers
Ashtead Group (AHT) 1,163.00p +2.83%
Marks & Spencer Group (MKS) 453.70p +1.52%
ITV (ITV) 212.00p +1.19%
Weir Group (WEIR) 1,798.00p +1.18%
Smith & Nephew (SN.) 1,209.00p +1.09%
Sports Direct International (SPD) 710.00p +1.00%
Bunzl (BNZL) 1,824.00p +1.00%
Sky (SKY) 895.00p +0.90%
Experian (EXPN) 1,100.00p +0.82%
Friends Life Group Limited (FLG) 368.10p +0.82%
FTSE 100 - Fallers
Taylor Wimpey (TW.) 126.80p -4.52%
Barratt Developments (BDEV) 436.10p -4.09%
Persimmon (PSN) 1,488.00p -3.31%
Sainsbury (J) (SBRY) 245.10p -2.89%
Tesco (TSCO) 204.15p -2.44%
Morrison (Wm) Supermarkets (MRW) 181.20p -1.90%
Standard Chartered (STAN) 953.20p -1.80%
Randgold Resources Ltd. (RRS) 4,804.00p -1.72%
Anglo American (AAL) 1,162.00p -1.61%
Fresnillo (FRES) 811.50p -1.58%
FTSE 250 - Risers
Acacia Mining (ACA) 278.80p +2.76%
Ophir Energy (OPHR) 142.20p +2.67%
Allied Minds (ALM) 377.70p +2.44%
Henderson Group (HGG) 218.70p +2.44%
Saga (SAGA) 151.30p +1.54%
Halfords Group (HFD) 429.80p +1.54%
Hikma Pharmaceuticals (HIK) 2,201.00p +1.20%
Intermediate Capital Group (ICP) 462.60p +0.98%
QinetiQ Group (QQ.) 189.40p +0.96%
Rank Group (RNK) 159.20p +0.95%
FTSE 250 - Fallers
Laird (LRD) 315.30p -4.94%
Nostrum Oil & Gas (NOG) 431.60p -4.09%
Zoopla Property Group (WI) (ZPLA) 175.10p -3.53%
COLT Group SA (COLT) 125.10p -3.17%
Bellway (BWY) 1,848.00p -3.14%
Redrow (RDW) 277.20p -3.08%
Vedanta Resources (VED) 514.00p -3.02%
Bovis Homes Group (BVS) 839.00p -2.84%
Stagecoach Group (SGC) 353.80p -2.59% |
| | UK Event Calendar | | Friday January 09
INTERIM DIVIDEND PAYMENT DATE
Atkins (WS), Brown (N.) Group, Cable & Wireless Communications, Caffyns, Creston, Cropper (James), Electrocomponents, JD Sports Fashion, Majestic Wine, Marks & Spencer Group, Montanaro European Smaller Companies Trust, Severn Trent, Shanks Group, Telford Homes, Whitbread
QUARTERLY PAYMENT DATE
Schlumberger Ltd., XP Power Ltd. (DI)
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (GER) (07:00)
Current Account (GER) (07:00)
Industrial Production (GER) (11:00)
Non-Farm Payrolls (US) (13:30)
Retail Price Index (GER) (07:00)
Unemployment Rate (US) (13:30)
Wholesales Inventories (US) (15:00)
GMS
Betfair Group, Prezzo
AGMS
Paragon Group Of Companies
TRADING ANNOUNCEMENTS
Laird, Restaurant Group, Tarsus Group, XP Power Ltd. (DI)
UK ECONOMIC ANNOUNCEMENTS
Balance of Trade (09:30)
Industrial Production (09:30)
Manufacturing Production (09:30)
FINAL DIVIDEND PAYMENT DATE
Associated British Foods, Debenhams, Inland Homes, Pure Wafer, Waterman Group |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks slide as German industrial production and exports fall European stocks declined as reports showed a fall in German industrial production and exports. German industrial produce dropped 0.5% year-on-year in November, following a 1.2% increase a month earlier. However, analysts had pencilled in a 0.6% fall.
Exports in Europe's biggest economy were down 2.1% month-on-month in November, compared to estimates for a 1% decrease and the previous month's 0.4% dip.
The reports come as the European Central Bank (ECB) is under pressure to introduce full-blown quantitative easing to restore the health of the euro-area. ECB president Mario Draghi has said that measures may include buying government bonds. The central bank meets on 22 January.
In the US, the all-important non-farm payrolls report in afternoon trade is expected to show employers added 240,000 more jobs in December compared to November's 321,000 gain. The Federal Reserve is taking into account jobs data as it weighs the timing of the first interest rate hike.
Meanwhile, China's inflation rate remained near a five-year low in December, rising to 1.5% from 1.4% the prior month.
"This is a small increase from November's five-year low at 1.4% but still substantially below the government's 3.5% target and points towards the open possibility for monetary easing from the People's Bank of China in the opening months of the year," said Jameel Ahmad, chief market analyst for FXTM.
Santander slides
Banco Santander SA slipped after its board approved plans to cut its dividend and sell shares for as much as €7.5bn.
Tesco declined as Moody's Investors Service cut the UK grocer to below investment grade on expectations profits will remain challenged due to structural shifts.
Sodexo slumped after reported a 2.3% rise in first-quarter organic sales, compared with forecasts for a 2.5% increase.
The euro rose 0.08% to $1.1803. |
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| | US Market Report | | US close: Markets climb as US initial jobless claims overtake expectations US stocks advanced on Thursday as initial jobless claims and continuing claims came in higher than expected.
The Dow Jones Industrial Average grew 1.68% to 17,880.45 while Nasdaq rose 1.84% to 4,236.64 and S&P 500 increased 1.68% to 2,059.85.
US initial jobless claims cam in higher than expected week on week for 3 January at 294,000 where consensus expectation had been 290,000.
Meanwhile, US continuing claims beat out consensus expectations of 2,360,000 at 2,452,000 week on week for 27 December.
IG analyst Alastair McCaig said: "It is not always the most accurate of indicators but yesterday's better-than-expected ADP employment change figures have suggested that Fridays non-farm payrolls have it in them to beat expectations."
"During the last few months we have seldom seen oil too far from the headlines, but today appears to be one of those respite moments that has seen an upturn in both Brent crude and WTI, easing the nerves of energy traders.
"Squeezed oil prices are yet to hamper US fracking production as the latest oil export figures are the healthiest in twenty years."
Crude futures were mixed as WTI crude futures closed 0.735% up to $49.01 a barrel and Brent futures receded by 0.117% to $51.09 a barrel.
Market analyst Connor Campbell from Spreadex said: "Combine this with the overall bullish sentiment left over from the US Fed last night and a stable Eurozone this morning, and the FTSE on its way to a great end to the first full week of 2015 trading."
Over on COMEX, gold futures dropped 0.27% to $1,207.40 while the dollar advanced against the pound, the yen and the euro.
The yield on a benchmark US 10-year Treasury advanced five basis points to 2.01%.
S&P 500 - Risers
MeadWestvaco Corp. (MWV) $45.59 +5.80%
Valero Energy Corp. (VLO) $49.98 +5.64%
QEP Resources Inc (QEP) $19.80 +5.15%
CIGNA Corp. (CI) $109.14 +5.10%
Tesoro Corp. (TSO) $74.18 +5.05%
Avago Technologies Ltd. (AVGO) $103.79 +5.00%
Micron Technology Inc. (MU) $33.66 +4.86%
Anthem Inc (ANTM) $131.60 +4.81%
Unitedhealth Group Inc. (UNH) $104.71 +4.78%
Interpublic Group of Companies Inc. (IPG) $20.55 +4.63%
S&P 500 - Fallers
Alexion Pharmaceuticals Inc. (ALXN) $183.80 -2.20%
Archer-Daniels-Midland Co. (ADM) $49.23 -1.48%
HCP Inc. (HCP) $46.52 -1.32%
Gap Inc. (GPS) $43.10 -1.16%
Dollar General Corp (DG) $69.46 -1.15%
Regeneron Pharmaceuticals Inc. (REGN) $403.25 -1.10%
Fossil Group Inc (FOSL) $104.02 -0.87%
Biogen Idec Inc. (BIIB) $350.20 -0.86%
Diamond Offshore Drilling Inc. (DO) $33.00 -0.84%
PVH Corp. (PVH) $119.06 -0.76%
Dow Jones I.A - Risers
Unitedhealth Group Inc. (UNH) $104.71 +4.78%
E.I. du Pont de Nemours and Co. (DD) $74.52 +3.06%
Microsoft Corp. (MSFT) $47.59 +2.94%
3M Co. (MMM) $163.54 +2.34%
Nike Inc. (NKE) $97.03 +2.28%
JP Morgan Chase & Co. (JPM) $60.39 +2.23%
Chevron Corp. (CVX) $110.31 +2.19%
International Business Machines Corp. (IBM) $158.45 +2.19%
Home Depot Inc. (HD) $106.69 +2.18%
Verizon Communications Inc. (VZ) $47.17 +2.12%
Dow Jones I.A - Fallers
Nasdaq 100 - Risers
Catamaran Corp (CTRX) $51.27 +5.62%
Avago Technologies Ltd. (AVGO) $103.79 +5.00%
Micron Technology Inc. (MU) $33.66 +4.86%
Nxp Semiconductors Nv (NXPI) $77.83 +4.71%
CH Robinson Worldwide Inc (CHRW) $72.80 +4.43%
Expedia Inc. (EXPE) $87.87 +4.40%
Tractor Supply Company (TSCO) $80.92 +4.08%
Charter Communications Inc. (CHTR) $162.97 +3.94%
Apple Inc. (AAPL) $111.89 +3.84%
Sirius XM Holdings Inc (SIRI) $3.54 +3.81%
Nasdaq 100 - Fallers
Alexion Pharmaceuticals Inc. (ALXN) $183.80 -2.20%
Regeneron Pharmaceuticals Inc. (REGN) $403.25 -1.10%
Biogen Idec Inc. (BIIB) $350.20 -0.86%
Amgen Inc. (AMGN) $157.67 -0.36%
Tesla Motors Inc (TSLA) $210.55 -0.19%
Sigma-Aldrich Corp. (SIAL) $137.20 -0.12% |
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| | Newspaper Round Up | | Friday newspaper round-up: Chinese PPI, Google, Sports Direct... Producer prices in China fell by their most in over two years in December, "adding to fears that deflation beckons in the world's second-largest economy", writes the Financial Times. Factory gate prices dropped by 3.3% year-on-year last month, the largest decline since September 2012, accelerating from November's 2.7% fall. "Google's dominance of the American desktop search market has been entrenched for years, but its lead is eroding, according to data indicating that it has lost market share to Yahoo," according to The Times. Google's market share in the US fell from 77.3% to 75.2%, its lowest level since 2008.
Hundreds of jobs are at risk at fashion retailer USC as parent company Sports Direct looks to close a number of stores, according to The Scotsman. "The retail firm's directors have filed a notice of intention to appoint receivers to USC, meaning stores could be shut next week," the paper writes.
A security chief for the MI5 has warned that Syria-based terrorists are planning attacks in the UK similar to the one that killed 12 people at Charlie Hebdo, the Financial Times writes.
Billionaire investor George Soros has said that the EU should provide Ukraine with $50bn of economic support and warned that sanctions against Moscow may not be able to stop "Russian aggression" alone, The Telegraph reports.
The collapse in oil prices to below $50 a barrel has prompted critics to suggest that Scotland is better off within the UK, something that Scotland's first minister Nicola Sturgeon has denied, The Guardian says. Civil servants have said that the drop in crude has left an £18.6bn black hole in the SNP's tax projections for the country.
Business secretary Vince Cable has called for a full government inquiry into the collapse of City Link amid pressure from Labour to act over the "cynical and disgraceful" way in which 2,356 workers were made redundant over Christmas, says The Times.
On Thursday the euro slumped close to its lowest against the dollar since it was launched in 1999, The Guardian reports. The euro bought $1.175, its lowest since December 2005, coming within a whisker of the $1.1789 level when it was first formed. | | |
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