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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: Stocks trim losses on Greek hopes, Chinese stimulus A late rally helped the FTSE 100 to erase most of its losses on Wednesday as optimism surrounding Greece and stimulus measures in China lifted sentiment, though stocks still finished in the red after hitting a five-month high the previous day. London's Footsie ended the session down 0.2% at 6,860.02, bouncing strongly in the last couple of hours after hitting an intraday low of 6,804.10, with pharma heavyweight Glaxosmithkline rising after its results announcement.
Greece's prime minister Alexis Tsipras said in a press conference that he believes a debt relief deal can be met without the country leaving the EU. Tsipras said despite not having a deal yet, the country is "moving in the right direction".
The prime minister travelled to Brussels to propose the new government's debt-swap plan to EU Commission president Jean-Claude Juncker. Greece has backed down from calling for a total debt write-off and has instead proposed swapping outstanding debt for new growth-linked bonds.
Meanwhile, Greek finance minister Yanis Varoufakis, who held a meeting in Frankfurt with European Central Bank head Mario Draghi, said that discussions about easing the terms of the country's bailout were "very fruitful".
Elsewhere, the People's Bank of China (PBoC) trimmed the banks' reserve requirement ratio by 50 basis points to 19.5%, the first such cut since May 2012, in an effort to boost lending into the real economy.
According to FXTM analyst Jameel Ahmad, the PBoC was the 16th central bank across the globe to ease monetary policy this year in a move that "will be seen by many as a direct response to continued indications of slowing domestic momentum". He said the cut in the reserve requirement will be judged "by the markets as a positive move to reinvigorate economic growth".
A raft of service-sector data was released during Wednesday session, showing that growth had picked up in the UK, Eurozone and US but eased in China.
Glaxo leads late rally
Sales, profits and earnings slumped during the last quarter of the year at drugmaker GlaxoSmithKline due to headwinds in the US market, though the company pleased investors after confirming it would return £4bn cash from its deal with Novartis.
Others in the pharma sector was also in demand, such as Astrazeneca, Hikma and Synergy Health with the latter benefiting after reporting a solid acceleration in underlying revenue growth in its third quarter.
In its first set of results since slimming down its name to Sky and absorbing its German and Italian sister companies, the satellite broadcaster delivered a strong set of interim figures and cited good momentum in all its markets, causing shares to rise.
Half-yearly results from fund manager and savings outfit Hargreaves Lansdown showed record assets under administration and growing client numbers, though shares fell sharply after revenues and profits came in shy of City expectations.
Oil stocks were stuck in the red as the recent rally in crude prices came to an end with Brent falling 2.9%. Shell, Tullow, Afren and BHP Billiton all declined.
Market Movers
techMARK 3,083.09 +0.68%
FTSE 100 6,860.02 -0.17%
FTSE 250 16,571.64 +0.01% |
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| | FTSE 100 - Risers
ITV (ITV) 230.60p +3.64%
ARM Holdings (ARM) 1,069.00p +3.09%
easyJet (EZJ) 1,778.00p +2.72%
Wolseley (WOS) 3,888.00p +1.94%
CRH (CRH) 1,779.00p +1.89%
Barratt Developments (BDEV) 470.00p +1.78%
GlaxoSmithKline (GSK) 1,476.00p +1.58%
Ashtead Group (AHT) 1,079.00p +1.41%
Burberry Group (BRBY) 1,796.00p +1.41%
International Consolidated Airlines Group SA (CDI) (IAG) 542.00p +1.40%
FTSE 100 - Fallers
Hargreaves Lansdown (HL.) 966.00p -7.56%
Tullow Oil (TLW) 395.90p -5.15%
Morrison (Wm) Supermarkets (MRW) 181.50p -2.42%
Sainsbury (J) (SBRY) 266.70p -2.16%
BHP Billiton (BLT) 1,527.00p -2.02%
Aggreko (AGK) 1,596.00p -1.84%
Anglo American (AAL) 1,150.00p -1.71%
BG Group (BG.) 932.00p -1.38%
Intertek Group (ITRK) 2,398.00p -1.28%
SABMiller (SAB) 3,528.50p -1.27%
FTSE 250 - Risers
Rank Group (RNK) 185.50p +4.80%
Petra Diamonds Ltd.(DI) (PDL) 158.20p +4.42%
AO World (AO.) 319.50p +4.28%
Booker Group (BOK) 153.50p +3.44%
Brown (N.) Group (BWNG) 448.60p +3.08%
AL Noor Hospitals Group (ANH) 927.50p +3.00%
Countrywide (CWD) 496.80p +2.88%
Lonmin (LMI) 172.30p +2.62%
Ultra Electronics Holdings (ULE) 1,778.00p +2.48%
Howden Joinery Group (HWDN) 425.10p +2.46%
FTSE 250 - Fallers
Afren (AFR) 11.10p -6.25%
Premier Oil (PMO) 161.10p -5.79%
Hunting (HTG) 456.20p -4.70%
Wood Group (John) (WG.) 596.00p -4.03%
Aveva Group (AVV) 1,390.00p -3.67%
Ladbrokes (LAD) 120.10p -3.15%
Thomas Cook Group (TCG) 126.10p -3.00%
Interserve (IRV) 541.50p -2.96%
Diploma (DPLM) 755.50p -2.58% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks little changed on Greece, oil and raft of economic data European stocks were little changed following a batch of economic data, news on Greek's debt and a renewed fall in oil prices. Greece's prime minister Alexis Tsipras said he believes a debt relief deal can be achieved without leaving the EU.
Tsipras said in press conference in Brussels on Wednesday that despite not having a deal yet, the country is "moving in the right direction".
The newly appointed government is trying to overhaul the terms of Greece's bailout package and has backed down from demands for a writedown of its debt.
German Chancellor Angela Merkel suggested that the plans for Greece's debt are failing to win over converts.
"I don't think that the positions of the member states within the euro area with regard to Greece differ, at least in terms of substance," Merkel told reporters in Berlin.
The euro fell 0.54% to $1.1419.
In economic data, the Eurozone services purchasing managers' index was revised to 52.6 in January from an earlier estimate of 52.3. A reading above 50 indicates expansion in the sector.
Eurozone retail sales increased 2.8% year-on-year in December, beating expectations for a 2% gain and following a 1.5% rise in November.
UK services activity grew more than expected in January, according to data released on Wednesday. The Markit/CIPS services purchasing managers' index rose to 57.2 last month from 55.8 in December, compared to analysts' estimates of 56.3.
Meanwhile, oil prices snapped the recovery with Brent crude down 1.8% to $56.88 per barrel at 16:49 GMT, according to the ICE.
"Oil prices continue to dominate equity markets as Tuesday's oil-inspired rally gets flipped on its head the next day with an oil-motivated fall," said Jasper Lawler, market analyst at CMC Markets.
US jobs, services activity
US employers added 213,000 jobs in January, missing forecasts of 220,000, ADP revealed in its private payrolls report on Wednesday. December's gain was revised up to 253,000 from 241,000.
The data comes ahead of the Labor Department's non-farm payrolls report on Friday.
The ISM's non-manufacturing index improved 0.2 percentage points to 56.7% last month, from 56.5% in December, led by growth in accommodation and food services, finance and insurance.
Roche, Syngenta rally
Roche jumped after one of its cancer drugs met the company's target in the last of human trials required before marketing approval.
Syngenta was on the rise after the maker of crop protection chemicals estimated stable earnings this fiscal year following cost cuts.
LVMH Moet Hennessy Louis Vuitton SA rallied as the fashion house said it is confident for 2015 on the back of renewed demand and improved sales.
Banco Bilbao Vizcaya Argentaria SA gained after the Spanish bank swung to a fourth-quarter profit.
Sky advanced after reporting a 17% increase in first-half revenue, as customers grew and it expanded its business in Italy and Germany.
Hugo Boss AG declined after reporting 2014 sales and profit that fell short of market forecasts. |
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| | US Market Report | | US open: Stocks set for choppy session as oil price slumps US stocks declined early on Wednesday as oil prices lost momentum after a strong rally earlier in the week, while a private sector jobs report disappointed. Just before 10:00 in New York, the Dow Jones Industrial Average was down 8.60 points while the S&P 500 and the Nasdaq fell 0.36% and 0.49% respectively,
US employers added 213,000 jobs in January, missing forecasts of 220,000. December's gain was revised up to 253,000 from 241,000, which Capital Economics said was "extraordinary for the ADP because its revisions usually magically bring its estimates into line with the official non-farm payroll tally".
The Labor Department's non-farm payrolls report is due on Friday and is forecast to show a 230,000 increase in January after a 252,000 gain a month earlier.
Economists are looking for a moderation in the pace of employment growth following strong hiring in recent quarters and the January ADP report was broadly supportive of this view.
Having settled at its highest level since 31 December on Tuesday, oil prices tumbled on Wednesday, with West Texas Intermediate losing over 4% and Brent crude relinquishing almost 3%.
Meanwhile, US mortgage applications increased 1.3% in the week to 30 January after a 3.2% fall in December, the Mortgage Bankers Association said.
Among corporates on the rise, Whirlpool was spun 4% higher after posting better-than-expected sales, while General Motors gained 3% after pledging to lift its dividend 20% to 36 cents a share.
Walt Disney advanced 6% after earnings beat forecasts.
Going the other way, Chipotle Mexican Grill declined 7% after reporting late on Tuesday that sales missed estimates.
Staples plunged 8% after announcing it would buy Office Depot for $6.3bn, while Gilead Sciences dropped over 9% after reporting that it expects price discounts for its hepatitis C drugs to double in 2015. |
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| | Broker Tips | | Broker tips: Hargreaves Lansdown, Sky, Oil services Shore Capital said Hargreaves Lansdown has its work cut out for the remainder of the year after the fund manager and savings outfit missed forecasts with its interim results. "We hold the Hargreaves Lansdown business model in very high regard, its asset gathering process remains hugely impressive. However, we believe the current level of earnings growth is out of step with the rating and we see fair value closer to 900p," Shore Capital said.
Broker Numis has welcomed a strong first-half report by satellite broadcaster and broadband group Sky and expressed optimism surrounding an upcoming auction for Premier League rights.
Sky, which currently has three-quarters of the rights and pays £760m per season, is expected to retain the majority, though Numis estimates at least 40% price inflation on the bidding.
UBS has unsurprisingly predicted a weak fourth quarter for oil services companies in its preview of the sector's earnings season, saying it remains negative about the industry "as tough gets tougher". | | |
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