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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: Mining stocks drag FTSE 100 after strong US jobs data A stronger-than-expected US jobs report and a jump in oil prices weren't enough to lift stocks out of the red on Friday, with weakness in the heavyweight mining sector ensuring that the FTSE 100 finished slightly lower. London's benchmark index ended the session down 0.2% at 6,853 as mining stocks tracked metal prices lower.
Stocks had temporarily bounced after it was revealed that the US economy added 257,000 non-farm payrolls in January, ahead of the 230,000 consensus estimate.
Over the past three months, monthly growth in private-sector jobs averaged 334,000, the best three-month streak since March 2006.
Analysts at Capital Economics said that the report "provides the Federal Reserve with the justification for raising rates in June".
The strong US data also gave rise to the dollar on Friday afternoon, leading to weaker mining shares as the price of gold and silver weakened. Gold in particular dropped to a low of $1,237.30, its lowest level in three weeks.
"A Fed rate hike mid-year would stave off inflation concerns and an expanding US economy is generally positive for stocks markets and removes the need for safe-haven trades like precious metals," said analyst Jasper Lawler from CMC Markets.
In contrast, oil prices resumed their recent rally with Brent crude up 2.2% at $57.79 a barrel.
London stocks had started on the back foot after figures showed that the overall UK trade deficit unexpectedly widened from £1.8bn in November to £2.9bn in December, missing analysts' forecasts for a fall to £1.7bn.
Meanwhile, developments in Greece were also catching the market's attention as leaders returned home after holding Europe-wide talks with creditors as the country attempts to ease the terms of its bailout.
Mining stocks tank, Poundland jumps
Mining stocks such as Fresnillo, Randgold, Anglo American, BHP Blliton and Rio Tinto dropped sharply as metal prices weakened.
Banking and financial companies were heading the other way, such as Barclays, Aberdeen Asset Management, Schroders, RBS, Friends Life and Aviva finishing with solid gains.
Poundland Group surged after announcing plans to acquire rival retailer 99p Stores for £55m. The company, which will take over 251 outlets owned by 99p Stores, said the deal will "generate further value of Poundland's shareholders".
Sweeteners maker Tate & Lyle, famous for making Splenda sucralose, disappointed investors with a profit warning on the back of a weak third quarter in the bulk ingredients division. Shares dropped after the group said pre-tax profits for the year ending 31 March to be below previous guidance of £230m-245m.
Capita gained after saying it has received approval from NHS England to join the new lead provider framework for Commissioning Support Services.
Glaxosmithkline edged higher as it announced positive overall survival results from a study of its treatment for patients with melanoma ahead of FDA approval.
Market Movers
techMARK 3,094.06 +0.06%
FTSE 100 6,853.44 -0.18%
FTSE 250 16,685.63 -0.06% |
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| | FTSE 100 - Risers
Barclays (BARC) 255.45p +2.67%
Aberdeen Asset Management (ADN) 440.90p +2.34%
Ashtead Group (AHT) 1,094.00p +1.96%
Schroders (SDR) 2,967.00p +1.78%
Friends Life Group Limited (FLG) 405.60p +1.68%
Royal Bank of Scotland Group (RBS) 384.00p +1.67%
Aviva (AV.) 537.00p +1.42%
Johnson Matthey (JMAT) 3,290.00p +1.39%
Capita (CPI) 1,158.00p +1.31%
Kingfisher (KGF) 338.00p +1.26%
FTSE 100 - Fallers
Randgold Resources Ltd. (RRS) 5,310.00p -4.32%
Fresnillo (FRES) 860.00p -4.12%
Anglo American (AAL) 1,145.50p -2.26%
Barratt Developments (BDEV) 459.70p -2.23%
BHP Billiton (BLT) 1,505.00p -2.15%
BG Group (BG.) 934.90p -2.08%
Tullow Oil (TLW) 410.10p -1.91%
Rio Tinto (RIO) 3,028.50p -1.69%
British American Tobacco (BATS) 3,628.00p -1.65%
Tesco (TSCO) 228.70p -1.59%
FTSE 250 - Risers
Poundland Group (PLND) 413.00p +15.43%
Telecom Plus (TEP) 1,154.00p +4.53%
IP Group (IPO) 246.20p +3.88%
Bank of Georgia Holdings (BGEO) 2,200.00p +3.82%
Petra Diamonds Ltd.(DI) (PDL) 162.80p +3.76%
Diploma (DPLM) 792.00p +3.66%
Evraz (EVR) 183.30p +3.38%
Premier Farnell (PFL) 163.00p +3.10%
Euromoney Institutional Investor (ERM) 1,056.00p +2.92%
Rank Group (RNK) 186.80p +2.64%
FTSE 250 - Fallers
Tate & Lyle (TATE) 573.50p -13.69%
Lonmin (LMI) 174.70p -7.22%
Afren (AFR) 9.11p -5.55%
Acacia Mining (ACA) 275.00p -4.94%
Premier Oil (PMO) 162.30p -3.79%
Ophir Energy (OPHR) 146.60p -3.55%
AL Noor Hospitals Group (ANH) 933.50p -2.71%
Capital & Counties Properties (CAPC) 387.30p -2.59%
Wood Group (John) (WG.) 605.00p -2.26% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks little changed after better-than-forecast US non-farm payrolls European stocks were little changed as speculation of an interest rate hike in the US grew after non-farm payrolls rose more than expected in January. The Labor Department said the US added 257,000 jobs last month, beating forecasts of 230,000. In December the US added 320,000 jobs.
The unemployment rate unexpectedly climbed to 5.7% in January from the prior month's 5.6%.
Chris Williamson, chief economist at Markit, said: "The US labour market continued to boom at the end of last year, adding further fuel to expectations that the Fed will be the first major central bank to start tightening policy in 2015.
"However, the dataflow over the next two months will be crucial in determining whether the FOMC will aim for mid-2015 or, as survey data indicate, rate rises could be delayed until later in the year if the economy shows signs of slowing."
In the euro-area, EU officials said Greece will put forward its debt plans at a special meeting of finance ministers of the bloc next Wednesday.
Prime Minister Alexis Tsipras is preparing for a detailed policy speech on Sunday. He has vowed to stick to his anti-bailout pledge.
Meanwhile, German industrial output fell 0.7% year-on-year in December after a 0.3% drop in November. Analysts had predicted a 0.3% decline.
GSK, Statoil
GlaxoSmithKline gained after the drugmaker reported positive results from a trial combining two cancer drugs it's selling to Novartis AG.
Statoil ASA advanced after Norway's biggest energy company cut costs further to withstand depressed oil prices.
Alcatel-Lucent SA jumped after saying it expects full-year profit margin ahead of analysts' estimates.
Tate & Lyle slumped after saying it expected full-year profit will be lower than it forecast in September.
Sunrise Communications AG rallied as the Swiss wireless operator raised 2bn francs in the biggest initial public offering on its stock exchange in eight years.
The euro fell 1.23% to $1.1336. |
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| | US Market Report | | US open: Stocks set for choppy session despite strong jobs report US stocks fluctuated on Friday, despite a stronger-than-expected official jobs report, which indicated the economy is maintaining its positive momentum. Just before 10:00 in New York, the Dow Jones Industrial Average was 13.36 points up, while the S&P 500 rose 0.11% and the Nasdaq fell 0.03%.
Non-farm payroll in the US increased by 257,000 in January, according to the Bureau of Labor Statistics (BLS), beating expectations of a 231,000 rise.
Jobs growth for the prior two months combined were revised higher by a net 147,000 and the cumulative three-month gain in non-farm payrolls was the largest since 1997.
The unemployment rate rose by one tenth of a percentage point to 5.7%, against expectations of a 5.6% increase. However, that was the result of the labour force participation rate edging higher to 62.9% from 62.7% in the month before.
"The US dataflow has become more bearish in part due to the dollar's recent strength. Corporate earnings reports are awash with warnings of how the strong dollar is hurting exports and hitting profits," said Markit chief economist Chris Williamson.
"Companies might therefore start taking a more cautious approach to hiring in coming months.
"While a mid-year rate rise remains on the table, if continued in coming weeks, the weaker data flow points to rates not being hiked until the second half of 2015, and perhaps policy even being on hold until 2016 if events such as the Greek debt talks and geopolitical worries over Russia add to economic uncertainty and dampen global demand."
Among the corporates on the rise, Moody's rose over 4% after reporting fourth quarter earnings that beat estimates.
Harris and Exelis surged over 11% and 36% respectively after announcing a deal which will see Harris buy the aerospace group for $4.75bn in cash and shares.
Twitter surged as high as 13% after its fourth quarter earnings, released late on Thursday, were above Wall Street's expectations, while LinkedIn also jumped over 10% on the back of strong fourth quarter results.
Going the other way, GoPro slumped 12% after the company announcing it expected earnings for the current quarter to miss estimates. The maker of wearable video cameras also said its chief operating officer had quit his role.
Pandora Media plunged over 16% after saying late on Thursday night that its fourth quarter revenue missed expectations and saying its outlook for 2015 is also likely to come in below estimates, while Expedia dropped almost 10% following disappointing quarterly results.
The dollar rallied, gaining over 1% against the yen and the euro and over 0.4% against the pound, while gold futures slid 1.85% to $1,239.30. |
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| | Friday broker round-up | | Bellway: UBS raises target from 2080p to 2140p and maintains a 'buy' recommendation. Brewin Dolphin: N+1 Singer shifts target from 315p to 320p and stays with its 'buy' recommendation.
Dairy Crest: Numis ups target from 482p to 508p and retains a 'hold' recommendation.
Ocado: Deutsche Bank downgrades from 'hold' to 'sell' with a target of 330p.
OPG Power Ventures: Investec moves target from 140p to 150p and maintains a 'buy' recommendation.
Premier Farnell: N+1 Singer reduces target to 180p, while upgrading from 'sell' to 'buy'. Numis cuts target to 200p, keeping its 'buy' recommendation.
Smith & Nephew: Deutsche Bank raises target to 1250p and reiterates its 'buy' recommendation. | | |
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