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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 close: Resource stocks fall with markets cautious ahead of Greek meeting UK stocks declined for the fourth day on Wednesday with oil and mining stocks bearing the brunt of the selling pressure as investors scaled back their appetite for risk ahead of a pivotal meeting about Greece. London's FTSE 100 finished the session down 0.2% at 6,818, with blue-chip oil group Tullow dropping sharply after suspending its dividend payment. Other oil stocks were also weaker as crude prices sank.
"The tone in global markets has remained cautious all day," said Chris Beauchamp from IG.
All eyes were on an emergency meeting of Eurogroup finance ministers in Brussels, which kicked off at 16.30, where Greece's Yanis Varoufakis makes his debut appearance as he argues for better terms for the country's debt deal.
After meeting with Varoufakis, International Monetary Fund head Christine Lagarde told reporters: "They are competent, intelligent, they've thought about their issues."
On Tuesday evening, Greece's new prime minister Alexis Tsipras comfortably won a confidence vote in parliament, assuring MPs that "there is no going back [...] Greece cannot return to the era of bailouts".
Beauchamp said: "Both sides are firmly entrenched, and the weary truth of the matter is that the Eurozone, financial markets and investors will all need to go through several rounds of negotiation, before time pressures finally force some kind of compromise."
Tullow suspends divi, Redrow jumps
Shares in Tullow Oil sank 7% after the oil group decided to suspend its final dividend for 2014, as the exploration and production company swung to a loss of over $2bn on the back of hefty impairment charges and exploration write-offs.
The wider oil sector was also weaker as stocks tracked Brent lower after data showed that US crude inventories rose 4.87m barrels last week to a new high of 417.9m barrels, more than forecasts. Brent was down 2.6% at $54.97 a barrels by the end of the session, pressuring BG Group, Shell and Premier Oil lower.
Mining stocks were also under the weather, including Anglo American, Randgold Resources and BHP Billiton. Glencore however edged higher after the announcement that it has scaled back its spending plans for 2015, although shares in Lonmin dropped after Glencore said it is looking to divest its "non-core" 23.9% stake in the platinum miner.
One bright spark was builder Redrow after the company impressed with a 92% jump in half-year profits, driven by strong demand for new homes and welcomed changes to the stamp-duty system. Sector peers Crest Nicholson, Persimmon, Bellway and Barratt Developments.
Data centres group Telecity Group also surged after agreeing a merger with New York-listed rival Interxion, as it reported a target-hitting set of final results and a new share buyback programme.
BT Group and Sky were heading in opposite directions in the aftermath of the auction for future Premier League rights. BT rose after winning two out of seven packages of rights on offer and will pay 30% more than its current contract, while BT fell after saying it would be spending 83% more for the remaining five packages.
Cillit Bang, Dettol and Durex manufacturer Reckitt Benckiser gained as it delivered fourth-quarter net revenue growth of 5% to £2.3bn, comfortably ahead of forecasts.
Market Movers
techMARK 3,109.53 +0.49%
FTSE 100 6,818.17 -0.16%
FTSE 250 16,632.60 -0.16% |
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| | FTSE 100 - Risers
BT Group (BT.A) 460.00p +3.65%
Persimmon (PSN) 1,671.00p +3.60%
Reckitt Benckiser Group (RB.) 5,775.00p +3.31%
ARM Holdings (ARM) 1,087.00p +2.94%
United Utilities Group (UU.) 986.00p +2.65%
Barratt Developments (BDEV) 471.90p +2.65%
International Consolidated Airlines Group SA (CDI) (IAG) 552.50p +2.50%
Taylor Wimpey (TW.) 140.00p +2.26%
easyJet (EZJ) 1,765.00p +1.55%
Johnson Matthey (JMAT) 3,364.00p +1.51%
FTSE 100 - Fallers
Tullow Oil (TLW) 384.60p -7.17%
Hargreaves Lansdown (HL.) 968.00p -2.76%
Morrison (Wm) Supermarkets (MRW) 179.80p -2.34%
Anglo American (AAL) 1,123.50p -2.22%
Sky (SKY) 933.00p -2.20%
BG Group (BG.) 914.70p -2.10%
Randgold Resources Ltd. (RRS) 5,135.00p -1.72%
Royal Mail (RMG) 424.90p -1.69%
Smith & Nephew (SN.) 1,165.00p -1.60%
Imperial Tobacco Group (IMT) 3,032.00p -1.49%
FTSE 250 - Risers
Redrow (RDW) 345.00p +16.24%
Telecity Group (TCY) 978.00p +15.26%
Dunelm Group (DNLM) 929.50p +7.21%
Crest Nicholson Holdings (CRST) 444.00p +4.23%
Pennon Group (PNN) 850.00p +2.66%
Bellway (BWY) 1,916.00p +2.46%
Zoopla Property Group (WI) (ZPLA) 186.00p +2.20%
Bovis Homes Group (BVS) 885.00p +2.02%
COLT Group SA (COLT) 146.50p +2.02%
William Hill (WMH) 384.50p +1.88%
FTSE 250 - Fallers
Lonmin (LMI) 158.10p -8.29%
Poundland Group (PLND) 387.50p -7.05%
Premier Oil (PMO) 155.50p -6.38%
Hunting (HTG) 476.90p -5.66%
Thomas Cook Group (TCG) 125.90p -5.48%
Electrocomponents (ECM) 200.60p -5.15%
Nostrum Oil & Gas (NOG) 525.00p -4.81%
Ophir Energy (OPHR) 137.30p -4.79%
Micro Focus International (MCRO) 1,100.00p -4.51% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks drop as EU meeting on Greece begins European stocks slid as Eurozone finance ministers kicked off a meeting over Greece's debt. Greece has been expected to present its proposals for an alternative debt plan at the emergency meeting in Brussels which was due to kick off at 16:30 GMT.
Ahead of the meeting, German finance minister Wolfgang Schaeuble dampened expectations somewhat by saying there were no plans to discuss a new agreement.
The anti-austerity government has backed away from an extension to its international bailout programme, which expires on 28 February.
Eurozone finance ministers will meet again next Monday and EU leaders will come together at a summit, or European Council, this Thursday.
The euro fell 0.16% to $1.1303.
Meanwhile, Iraq and Iran joined Saudi Arabia in cutting their March crude prices for Asia to the lowest level in more than a decade.
It comes after the Organization of Petroleum Exporting Countries left its members' output targets unchanged at a meeting last November.
Brent crude fell 2.6% to $54.97 per barrel towards close of trade, according to the ICE.
Telenor, Sky
Telenor slipped as the Nordic phone operator said it expected its margin this year to come in lower than last.
Sky Plc edged lower after agreeing to pay the bulk of a record £5.14bn for the UK rights to broadcast live Premier League.
Norsk Hydro ASA advanced after Europe's third-biggest producer of aluminium reported narrower net loss on better-than-forecast revenue for the fourth quarter.
Lonmin was down after Glencore said it's planning to distribute its 23.9% holding in the platinum producer to its own shareholders.
Reckitt Benckiser Group gained as the consumer-products maker announced plans for cost cuts to address tough market conditions.
ING Groep NV jumped as the Dutch financial-services company announced plans to pay a dividend for the first time in almost seven years. |
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| | US Market Report | | US open: Dow and S&P 500 slide as worries over Greek bonds weigh on sentiment US stocks fluctuated early on Wednesday, as the uncertainty surrounding the future of Greek bonds weighed on sentiment. Just before 10:00 in New York, the Dow Jones Industrial Average was 0.33% down, while the S&P slipped 0.12% and the Nasdaq rose 0.12%.
On Tuesday, speculations that Greece could get a six-month extension to its bailout program were dismissed by German Finance Minister Wolfgang Schäuble.
Greece's current bail-out plan expires on 28 February and some analysts fear the country could run out of money before then.
"Commentators generally seem to believe that the Greek stance in the talks is unworkable, so that the risk of outright disaster is still growing, but markets are priced for some kind of stopgap-funding deal for Greece, which allows the ECB to continue financing Greek banks and lets talks continue," said Kit Juckes, a macro strategist at Société Générale.
Meanwhile, Moody's Investors Service said the global economy will not benefit from lower oil prices over the next two years, due to headwinds attributable to sluggish growth in the Eurozone, China, Japan and Russia.
However, the rating agency added that the US economy will benefit from lower crude prices.
Oil prices continued to fall, with Brent crude losing 2.2% to $55.2 a barrel, while West Texas Intermediate shed 1.2% to $49.40 a barrel.
AOL plunged 12.27% after its quarterly revenue fell short of expectations, while Pier 1 Imports plummeted 29.61%, after cutting its outlook for earnings-per-share late on Tuesday evening.
Going the other way, PepsiCo advanced 1.88% after the soft drinks giant beat earnings expectations and announced share repurchases and dividend increases, while First Solar edged 1.85% higher after the company announced late on Tuesday that Apple had committed $848m in a power-purchase agreement.
Rite Aid rallied 9.76% after strong quarterly results. The pharmacy group confirmed it has agreed to buy TPG's EnvisionRx in a deal valued at about $2bn. |
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| | Broker Tips | | Broker tips: Tullow Oil, Sky, ARM Holdings Tullow's dividend suspension may have caught some investors by surprise on Wednesday, though analysts at Barclays hailed the decision, keeping an 'overweight' position on the oil group. The bank said the move to suspend the decision was "pragmatic" given the company's current capital commitments, while its new $500m cost-savings target "represents a statement of intent from management focused on ensuring Tullow remains a low-cost oil producer, developer and explorer".
Shares in Sky dropped on Wednesday after the news that the company had paid 83% more to retain the majority of Premier League (EPL) rights in the auction for the 2016/2017 to 2018/2019 seasons.
However, UBS said: "Although the EPL costs for Sky are higher than expected, Sky has secured a better set of EPL rights." Meanwhile, the net impact of the inflation should be net neutral due to cost savings and the scope to raise pricing on Sky Sports, it said.
ARM Holdings exceeded forecasts on Wednesday with its fourth-quarter results and consensus estimates are expected to rise, though a more subdued outlook has prompted broker Investec to place its 'buy' rating under review. | | |
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