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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: FTSE slips from record as Greek uncertainty resurfaces Renewed concerns about Greece prompted a retreat from all-time highs on Wednesday as investors scaled back their appetite for risk after a rally the previous session. London's FTSE 100 ended the day down 0.2% at 6,935.38, pulling back after hitting a new record close of 6,949.63 on Tuesday.
Recent gains came on the back of relatively dovish comments from Federal Reserve chair Janet Yellen, who said that the central bank would still take a cautious approach to raising rates, while an approval for Greece's four-month bailout extension by the Eurogroup also boosted sentiment.
However, Greece still needs the vote from several Eurozone countries to secure it request, with German politicians expected to pose a tough challenge.
Germany's finance minister Wolfgang Schäuble told German public radio SWR2 that there was a "lot of doubt" as to whether Greece would stick to the new plan or not. A test vote from the parliament is expected on Thursday, followed by the final vote on Friday.
According to analyst Jasper Lawler from CMC Markets, the list of reforms sent by Greece to the Eurogroup is "so far just a set of empty promises". He said: "Some more solid assurances that the reforms will actually take place will be needed to give creditors some confidence that they are not throwing good money after bad."
In economic data on Wednesday, China's manufacturing sector returned to growth this month, according a survey by HSBC, while the British Banker's Association reported that UK mortgage approvals increased more than expected in January.
Weir Group drops, AO World plummets
Shares in engineering outfit Weir took a hard hit, dropping 9% after the company warned that the sharp decline in the price of oil will have a "significant reduction" in constant currency revenues this year.
Electrical appliances retailer AO World plummeted nearly 32% after forecasting full-year results "slightly below market expectations" after a harder fourth quarter.
On the rise was wealth management group St James's Place which impressed City analysts with a solid set of annual results, as strong cash generation led it to hike its final dividend by 50%.
Hospitality group Whitbread also perked up after saying it expects full-year results to come in at the top end of expectations after a strong fourth quarter from its Premier Inn and Costa brands.
Morrisons reassured investors with the quick appointment of a new chief executive after Dalton Philips was pushed out of the company earlier this month after five years at the helm. The company named the former head of Tesco's Asian business, David Potts, as its boss.
Shares in Sky poured on respectable gains after Citigroup retained a 'buy' recommendation on the stock and promoted it to the bank's 'Focus List Europe', as it raised its price target to 1,200p from 1,075p.
Market Movers
techMARK 3,150.33 -0.01%
FTSE 100 6,935.38 -0.20%
FTSE 250 17,188.27 -0.08% |
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| | FTSE 100 - Risers
St James's Place (STJ) 930.00p +4.26%
Sky (SKY) 1,005.00p +3.18%
Whitbread (WTB) 5,245.00p +2.74%
Mondi (MNDI) 1,340.00p +2.29%
Ashtead Group (AHT) 1,176.00p +2.17%
Kingfisher (KGF) 349.10p +2.17%
Persimmon (PSN) 1,684.00p +2.06%
ARM Holdings (ARM) 1,151.00p +1.59%
Shire Plc (SHP) 5,230.00p +1.55%
Randgold Resources Ltd. (RRS) 5,045.00p +1.37%
FTSE 100 - Fallers
Weir Group (WEIR) 1,700.00p -8.75%
Standard Chartered (STAN) 926.30p -2.56%
Smiths Group (SMIN) 1,137.00p -2.24%
GKN (GKN) 365.70p -2.11%
Intertek Group (ITRK) 2,422.00p -1.94%
SABMiller (SAB) 3,634.50p -1.65%
Dixons Carphone (DC.) 442.40p -1.49%
TUI AG Reg Shs (DI) (TUI) 1,174.00p -1.43%
Experian (EXPN) 1,180.00p -1.34%
Vodafone Group (VOD) 223.70p -1.24%
FTSE 250 - Risers
Petrofac Ltd. (PFC) 886.00p +8.71%
NMC Health (NMC) 557.00p +7.12%
Spire Healthcare Group (SPI) 326.00p +3.23%
Greggs (GRG) 865.50p +2.73%
Workspace Group (WKP) 842.50p +2.49%
Aveva Group (AVV) 1,593.00p +2.44%
UDG Healthcare Public Limited Company (UDG) 475.10p +2.28%
Bovis Homes Group (BVS) 957.00p +2.19%
Unite Group (UTG) 545.00p +2.16%
Just Retirement Group (JRG) 169.90p +2.16%
FTSE 250 - Fallers
AO World (AO.) 192.00p -31.67%
International Personal Finance (IPF) 432.30p -7.51%
Hays (HAS) 148.70p -6.95%
Afren (AFR) 9.90p -5.71%
Bwin.party Digital Entertainment (BPTY) 85.35p -5.69%
Drax Group (DRX) 411.80p -4.21%
Supergroup (SGP) 975.00p -3.85%
IMI (IMI) 1,387.00p -3.41%
Telecom Plus (TEP) 1,099.00p -3.17% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks little changed on Greek concerns, better-than-forecast data European stocks were little changed as concerns on Greece mitigated better-than-expected Chinese and US data.
The International Monetary Fund (IMF) has raised doubts on Greece's four-month bailout extension with Eurozone creditors.
"In quite a few areas [...] including perhaps the most important ones, [the Greek proposal] is not conveying clear enough assurances that the government intends to undertake the reforms," the IMF's managing director, Christine Lagarde , said in a letter published after euro-area finance ministers approved the extension.
German MPs have reportedly been urged by business group CDU to take a tough approach on Greece ahead of a Friday vote to approve the loan extension that Eurozone finance ministers agreed with Athens on Tuesday.
In a letter to lawmakers seen by the Financial Times, Kurt Lauk, president of the CDU's Economic Council, wrote: "A simple extension of the aid programme without effective terms would mean that we are knowingly throwing further good money after bad."
Greek lenders including National Bank of Greece SA and Piraeus Bank SA saw share prices decline.
The euro rose 0.19% to $1.1361.
A report from HSBC showed Chinese manufacturing activity expanded in February. The purchasing managers' index rose to 50.1 from 49.7 in January, beating analysts' estimates of 49.5. A reading above 50 signals growth while a level below 50 indicates a contraction.
US new home sales dropped 0.2% in January, beating the 2.3% decline that was estimated by analysts. It followed an 8.1% fall the prior month.
A measure of energy stocks was unchanged as oil prices rose after comments from the Saudi Arabian oil minister on stronger demand offset signs that US supplies will continue to rise.
Brent crude increased 2.3% to $60.05 per barrel in afternoon trade, according to the ICE.
Among companies, Axa rallied after the French insurer reported a 12% jump in full-year profit, boosted by growth at its life and savings division.
Kuehne & Nagel International AG jumped as the sea-freight forwarder raised its dividend after its overland shipping activities swung to a profit. |
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| | US Market Report | | US open: Dow and S&P relinquish gains as investors wait on Yellen US stocks were flat on Wednesday as investors prepared for the second day of Federal Reserve Chair Janet Yellen's testimony to US lawmakers on Capitol Hill. Just after 09:30 in New York, the Dow Jones Industrial Average was down 0.08%, while the S&P 500 and the Nasdaq slipped 0.15% and 0.22%, respectively.
In Tuesday's testimony, Yellen downplayed fears of early rates rises, staying away from hinting on possible interest rate hikes by saying the central bank will assess the conditions on a meeting-by-meeting basis.
"The Federal Open Market Committee is clearly more worried about tightening monetary policy too early rather than too late," said CMC Markets analyst Jasper Lawler.
"There have been big improvements in the US labour market but inflation is still well below target and that gives the Fed the excuse it needs to stick with zero interest rate policy as long as possible."
New US home sales sold at an annual rate of 481,000 in January, declining slightly from 482,000 in December but above expectations of a 470,000 reading.
Meanwhile, applications for US home mortgages fell for a third consecutive week in the week ended 20 February.
According to figures released by the Mortgage Bankers Association, the adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 3.5% last week, reaching its lowest level since 2 January.
In company news, electronics retailer Target edged 0.71% higher despite reporting a pre-tax loss of $5.1bn, including an impairment charge, at its Canadian operations.
Department store chain Macy's advanced 0.39% despite posting a 2% rise in sales in the holiday shopping quarter, falling short of analysts' estimates.
First Solar climbed 4.15% after reporting late on Tuesday that its profit had almost tripled in the fourth quarter.
Tech giant Hewlett Packard posted first-quarter earnings of 92 cents per share, up 2% from a year ago, beating analysts' expectations but that did not stop shares from falling 8.29% after it warned that currency headwinds will weigh more than expected on earnings in the current quarter.
Animated film producer Dreamworks fell 4.26% after announcing late on Tuesday that it swung to a fourth quarter loss of $263.2m.
Gold futures advanced 0.68% to $1,205.50,while the dollar fell 0.2% and 0.06% against the pound and the euro respectively but gained 0.1% against the yen. |
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| | Broker Tips | | Broker tips: BHP Billiton, Morrisons, St James's Place, Sky Investec has hiked its target for mining giant BHP Billiton from 1,323p to 1,552p after first-half results on Tuesday impressed the market, though the broker still kept its 'hold' rating. "BHP Billiton has gone some way to regaining market favour by delivering a solid set of interim results, reflecting still-robust cashflow and an increased progressive dividend," said analyst Hunter Hillcoat. However, he said that the stock looks "fully priced" and its valuation multiples are much higher than others in the sector.
Shore Capital has welcomed the appointment of David Potts as the new chief executive officer of Morrisons, saying his experience and expertise may bring about a much-needed turnaround in the supermarket's sales performance, and share price.
The broker upgraded the UK grocer from 'hold' to 'buy', saying that the shares could outperform the sector in the near term, "and, with good execution, thereafter".
The "strong performance continues" at St James's Place, according to Berenberg, after 2014 results from the wealth management group topped forecasts on Wednesday.
The broker reiterated a 'buy' recommendation and 950p target for the shares, saying: "With an ever-widening savings and advice gap in the UK, coupled with the opportunity for St James's Place to export its business model to ex-pat communities, we believe that the company remains very well positioned."
Shares in Sky poured on respectable gains in Wednesday's session after Citigroup retained a 'buy' recommendation on the stock and promoted it to the bank's 'Focus List Europe'. | | |
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