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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: Greek fears rattle stocks, but miners limit downside London's FTSE 100 had trimmed losses by the end of the session but still finished in the red as ongoing concerns about the future of Greece weighed on market sentiment.
"Eurozone equities are being ground down by Greek fears, and financial stocks across the EU are bearing the brunt of the sell-off," said analyst David Madden from IG.
The UK benchmark index finished down 0.2% at 6,837.15, though decent gains in the mining sector pared an earlier decline of as much as 1% to an intraday low of 6,777.99.
Mining stocks were resilient in the face of some gloomy economic figures from top metals consumer China, as hopes increased for further stimulus measures by Beijing to avert a sharp slowdown in economic growth.
The Chinese trade surplus unexpectedly ballooned to a record $60bn in January from $49.6bn the month before, as imports sank by an annual rate of 19.9% while exports fell 3.3%.
Analyst Michael Hewson from CMC Markets said that the data "is likely to increase the pressure on Chinese officials to implement further measures to ease policy further after last week's triple-R cut".
Developments in Greece were continuing to steal the market's attention after new prime minister Alexis Tsipras stood firm on his plans to ease austerity measures and reverse reforms imposed by its lenders.
In his first major speech to Parliament this weekend since taking his new role, he said: "After five years of bailout barbarity, our people cannot take any more."
Speculation about a possible Greek exit from the Eurozone continued to weigh on investors' minds after UK prime minister David Cameron met with Bank of England and treasury officials to discuss a hypothetical 'Grexit'.
Miners advance, financials fall
Mining names such as Fresnillo, Glencore, Anglo American, BHP Billiton, Rio Tinto, Antofagasta and Randgold were among the highest risers on the FTSE 100 on hopes for further stimulus measures in China.
Randgold advanced after hiking its dividend by 20% despite a 17% drop in annual profits last year, while investors of Anglo American were shrugging off the news that the contribution to underlying profits from its platinum division in South Africa plummeted 92% in 2014 as a result of a five-month strike and lower metal prices.
Furthermore, IG's Madden added: "Natural resource stocks are attractive when stacked up against banks and insurers that have large exposures to continental Europe."
Accordingly, banking peers RBS, Barclays, HSBC and Lloyds all suffered, while insurance groups such as Old Mutual, Aviva and RSA Insurance declined.
Natural gas producer BG Group rose after bringing forward the starting date of its new boss by one month. Statoil's Helge Lund will join immediately, the company said.
Concerns about overpaying for Premier League broadcast rights were weighing on shares BT and Sky, amid reports that the auction could be heading for a second round and with a third bidder.
Market Movers
techMARK 3,070.55 -0.76%
FTSE 100 6,837.15 -0.24%
FTSE 250 16,586.51 -0.59% |
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FTSE 100 - Risers
Fresnillo (FRES) 896.00p +4.19%
Glencore (GLEN) 275.60p +3.84%
Anglo American (AAL) 1,184.00p +3.36%
BG Group (BG.) 963.00p +3.01%
Tullow Oil (TLW) 422.00p +2.90%
BHP Billiton (BLT) 1,542.50p +2.49%
Rio Tinto (RIO) 3,095.00p +2.20%
Antofagasta (ANTO) 716.50p +2.07%
Tesco (TSCO) 233.40p +2.06%
Randgold Resources Ltd. (RRS) 5,415.00p +1.98%
FTSE 100 - Fallers
Shire Plc (SHP) 4,741.00p -3.48%
RSA Insurance Group (RSA) 439.00p -3.37%
United Utilities Group (UU.) 962.50p -3.12%
Land Securities Group (LAND) 1,272.00p -2.30%
GKN (GKN) 371.10p -2.26%
ARM Holdings (ARM) 1,055.00p -2.22%
Hammerson (HMSO) 685.00p -2.21%
Severn Trent (SVT) 2,050.00p -2.19%
Smiths Group (SMIN) 1,162.00p -2.11%
National Grid (NG.) 890.10p -2.11%
FTSE 250 - Risers
Hunting (HTG) 548.50p +10.23%
Serco Group (SRP) 196.70p +7.14%
Ladbrokes (LAD) 130.40p +6.97%
RPS Group (RPS) 217.90p +6.29%
Kaz Minerals (KAZ) 244.90p +5.56%
Premier Oil (PMO) 171.20p +5.48%
Petrofac Ltd. (PFC) 805.00p +4.89%
Centamin (DI) (CEY) 69.75p +4.89%
Soco International (SIA) 310.00p +4.77%
Wood Group (John) (WG.) 630.50p +4.21%
FTSE 250 - Fallers
Hikma Pharmaceuticals (HIK) 2,333.00p -5.55%
Nostrum Oil & Gas (NOG) 545.00p -4.89%
Ocado Group (OCDO) 390.00p -4.29%
Man Group (EMG) 168.00p -4.27%
Bwin.party Digital Entertainment (BPTY) 98.35p -4.05%
Halma (HLMA) 678.50p -3.90%
Euromoney Institutional Investor (ERM) 1,015.00p -3.88%
Dignity (DTY) 1,845.00p -3.15%
Big Yellow Group (BYG) 634.00p -3.06% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks fall as Greek government clashes with European leaders European shares dropped amid concerns Greece may exit the Eurozone.
Greek Prime Minister Alexis Tsipras has made a list of proposals to reverse reforms imposed by European and international leaders including cancelling a property tax to end mass layoffs, raising the minimum wage and reinstating pension bonuses.
He has ruled out any extension of Greece's international bailout and stuck to plans to end the austerity programme. It has put him at odds with European leaders who want the government to honour commitments in its bailout.
"By rejecting any bailout extension he has put Greece firmly on a course that will see it clash with the Troika, the European Central Bank and the Eurozone," said IG market analyst Chris Beauchamp.
Capital Economics said: "Greece's negotiations with the Troika [...] do not seem to be going well and the risk of a 'Grexit' is growing."
The euro rose 0.03% to $1.1319.
Chinese trade
Chinese exports fell 3.3% in January, trailing estimates for a 5.8% increase and following a 9.7% rise a month earlier.
Imports plunged 19.9% last month, compared to forecasts for a 3.2% drop and December's 2.4% decline.
"This unexpected weakness is likely to increase the pressure on Chinese officials to implement further measures to ease policy further after last week's triple-R cut," said Michael Hewson, chief market analyst at CMC Markets UK.
HSBC, BNP
HSBC Holdings declined after an investigative journalism report by the International Consortium of Investigative Journalist and the BBC's Panorama revealed its private-banking unit profited from secret accounts for criminals.
BNP Paribas SA slid after JPMorgan Chase & Co. lowered the stock to a rating equivalent to sell.
UBS Group slumped following reports the US Justice Department is investigating claims the Swiss bank misled clients in the marketing and selling of some foreign-exchange structured products.
Energy stocks, including Glencore, Statoil and BG Group, gained as the Organization of Petroleum Exporting Countries cut forecasts for global oil-supply growth in 2015. |
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| | US Market Report | | US open: Dow declines on disappointing China data and Grexit tension US stocks declined early on Monday, amid disappointing data from China and growing concerns over Greek debt negotiations.
Just after 09:30 in New York, the Dow Jones Industrial Average was down 0.13% points to 17,748, while the S&P 500 and the Nasdaq lost 0.28% and 0.33% respectively.
On Sunday, Alex Tsipras, the Greek prime minister, insisted the country would not ask the European Union to extend its and the International Monetary Fund bailouts, with his anti-austerity proposals put before parliament on Monday.
Greece has until 16 February to request an extension, but Tsipras was adamant that would not be needed and announced the decision to reverse some of the reforms imposed by Greece's creditors.
Meanwhile, Chinese trade data also piled pressure on the markets, after figures showed a decline in demand from the domestic and foreign market. In January, exports fell 3.3%, while imports plummeted 19%.
US stocks declined on Friday after a stronger-than-expected monthly payrolls report fuelled speculations that the Federal Reserve might hike interest by June.
"The Fed has been unequivocal in its view that lower inflation is transitory due to energy effects," said David Absolon, investment director at Heartwood Investment Management.
"January's employment report will provide policymakers with more ammunition to raise rates in mid-2015.
"However, consumers are evidently cautious, and we believe that a Fed rate hike cycle will likely be very gradual so as not to de-stabilise a moderate expansion."
McDonald's declined 0.59% after the chain's same-restaurant sales fell more than expected in January, while Alcoa fell 3.20% after JP Morgan downgraded the stock from overweight to neutral.
Abercrombie & Fitch slid 6.09% after Wunderlich Securities cut the stock's target to $17 from $30.
Hasbro rose 3.26% after reporting a 31% increase in quarterly profit and announcing it planned share repurchases of $500m.
Gold futures rose, while the dollar was unchanged against the pound and the euro bot lost 0.3% against the yen. |
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| | Broker Tips | | Broker tips: BAE Systems, BT/Sky, Poundland Investec has maintained a 'sell' recommendation for defence, security and aerospace group BAE Systems, highlighting the uncertainty surrounding future defence spending in the UK.
Budgets will be cut following the general election in May regardless of which party comes out on top, predicted analyst Rami Myerson. "Whilst our base assumption is that the impact of the cuts will be relatively small, we are concerned that, as the largest supplier to the UK Ministry of Defence, BAE's revenues and profits could be impacted disproportionately," he said.
Concerns about overpaying for Premier League (EPL) broadcast rights were weighing on shares BT and Sky on Monday, amid reports that the auction could be heading for a second round.
"At first glance, news that the bidding is ongoing may be negative for sentiment for both Sky and BT as investors worry about escalating EPL costs," said analysts at UBS. The bank said that Discovery - rumoured to have entered into the bidding - could "replace BT rather than Sky".
Credit Suisse has hiked its target for Poundland from 400p to 466p and reiterated its 'outperform' rating, saying it sees upside to the stock after the proposed acquisition of rival discount retailer 99p Stores. | | |
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