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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 open: Centrica and BAE lead markets lower after FOMC minutes Uncertainty surrounding the future of monetary policy in the States was weighing on UK stocks on Thursday morning, after the Federal Reserve showed it was wary of raising rates too soon. The FTSE 100 was down 0.3% at 6,879 early on, with energy provider Centrica and defence contractor BAE Systems leading the decline.
UK markets had closed more or less flat the previous session with investors showing caution after the FTSE 100 closed at a new 15-year high on Tuesday. The index is now within touching distance of its all-time closing high of 6,930.20 reached in December 1999.
Minutes from the last Federal Open Market Committee (FOMC) meeting in January showed that "many" members said a premature rate increase could be detrimental for the recovery, while "several" believed a later move could lead to high inflation.
Many officials were worried that once the term "patient" is scrapped, markets will assume the Fed is set to move on "an unduly narrow range of dates", which could lead to "undesirably tight" financial conditions".
"Our main takeaway from the January FOMC minutes is that concern about downside risk to inflation has risen and, consequently, the bar for raising rates by June is higher than it was in December," said Michael Gapen from Barclays.
Minutes from the European Central Bank's own policy meeting will be released on Thursday for the first time in history. The minutes, due out at 12:30 GMT, will provide detail about the ECB's decision on 22 January to introduce a €1trn quantitative easing package.
Centrica and BAE provide a drag
With oil and gas prices plummeting, Centrica has taken dramatic action by slashing its dividend and future payout policy, warning that earnings for next year will be lower than expected too. Shares in the British Gas owner dropped sharply after it said adjusted operating profits sank 35% to £1.7bn last year, with the dividend down 21% to 19.2p.
BAE Systems also fell after reporting that sales and underlying profits at in 2014. However, the company did predict marginal growth in underlying earnings in 2015, as it eased worries about defence spending in the UK and painted a positive outlook for the US market.
High street sportswear retailer Sports Direct impressed after saying it is confident of increasing profits this year despite a significant slowdown in sales growth in its third quarter.
SABMiller edged higher despite the resignation of its chief financial officer Jamie Wilson for personal reasons. He will exit the board immediately and will officially leave the group on 31 March 2015.
Drinks packaging group Rexam rose after agreeing a £5.4bn takeover by US rival Ball Corporation, a much larger higher valuation than had been expected by the market.
Precious metals miners Randgold and Fresnillo gained as gold and silver prices advanced. Pharmaceutical group Glaxosmithkline and insurer Catlin were both trading lower after going ex-dividend. |
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| | Market Movers
techMARK 3,125.63 -0.19%
FTSE 100 6,879.01 -0.28%
FTSE 250 17,000.37 -0.01%
FTSE 100 - Risers
Rolls-Royce Holdings (RR.) 960.00p +2.73%
Randgold Resources Ltd. (RRS) 5,095.00p +2.08%
Fresnillo (FRES) 853.00p +1.67%
British Land Co (BLND) 824.50p +1.60%
Shire Plc (SHP) 5,165.00p +1.27%
National Grid (NG.) 884.90p +1.25%
Sports Direct International (SPD) 694.50p +1.17%
Land Securities Group (LAND) 1,237.00p +1.14%
Compass Group (CPG) 1,124.00p +0.99%
Meggitt (MGGT) 571.50p +0.97%
FTSE 100 - Fallers
Centrica (CNA) 257.40p -8.43%
Tullow Oil (TLW) 398.00p -2.71%
AstraZeneca (AZN) 4,377.50p -2.40%
Anglo American (AAL) 1,236.00p -1.83%
Weir Group (WEIR) 1,861.00p -1.79%
GlaxoSmithKline (GSK) 1,529.00p -1.70%
BG Group (BG.) 960.70p -1.64%
Coca-Cola HBC AG (CDI) (CCH) 1,128.00p -1.31%
SSE (SSE) 1,525.00p -1.17%
BHP Billiton (BLT) 1,569.50p -1.13%
FTSE 250 - Risers
Afren (AFR) 12.35p +11.26%
Rexam (REX) 558.00p +3.91%
Man Group (EMG) 186.20p +3.67%
Petra Diamonds Ltd.(DI) (PDL) 180.80p +3.26%
Acacia Mining (ACA) 279.90p +2.08%
Betfair Group (BET) 1,642.00p +1.92%
Euromoney Institutional Investor (ERM) 1,027.00p +1.68%
Entertainment One Limited (ETO) 292.30p +1.67%
Genesis Emerging Markets Fund Ltd Ptg NPV (GSS) 533.00p +1.33%
BTG (BTG) 805.00p +1.26%
FTSE 250 - Fallers
Computacenter (CCC) 670.00p -4.49%
Vedanta Resources (VED) 561.00p -3.36%
Catlin Group Ltd. (CGL) 682.50p -3.26%
Premier Oil (PMO) 178.50p -3.04%
Hunting (HTG) 496.60p -3.01%
Evraz (EVR) 189.90p -2.26%
Soco International (SIA) 295.10p -2.25%
Kaz Minerals (KAZ) 247.50p -2.10%
Domino Printing Sciences (DNO) 731.00p -1.81% |
| | UK Event Calendar | | Thursday February 19
INTERIMS
Cambridge Cognition Holdings, Go-Ahead Group, Petra Diamonds Ltd.(DI)
INTERIM DIVIDEND PAYMENT DATE
Puma High Income VCT , Puma Vct 8, Puma VCT 9, Puma Vct VII
INTERIM EX-DIVIDEND DATE
City of London Investment Group, Fusionex International, Ideagen, Mountview Estates, PZ Cussons, The Renewables Infrastructure Group Limited
QUARTERLY EX-DIVIDEND DATE
Blackrock North American Income Trust , Carnival, GlaxoSmithKline, M Winkworth
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (EU) (09:00)
Consumer Confidence Indicator (EU) (10:00)
Continuing Claims (US) (13:30)
Crude Oil Inventories (US) (15:30)
Current Account (EU) (09:00)
Initial Jobless Claims (US) (13:30)
Leading Indicators (US) (15:00)
Philadelphia Fed Index (US) (15:00)
GMS
Summit Corporation
FINALS
BAE Systems, Centrica, Primary Health Properties, Promethean World, Rathbone Brothers, Societatea Nationala De Gaze Naturale Romgaz S.A. GDR (Reg S)
SPECIAL EX-DIVIDEND PAYMENT DATE
Entu (UK)
EGMS
Computacenter
AGMS
Enegi Oil, Optos
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Surveys (11:00)
FINAL DIVIDEND PAYMENT DATE
Cardiff Property, Dewhurst
FINAL EX-DIVIDEND DATE
Avon Rubber, Catlin Group Ltd., Games Workshop Group, Henderson Opportunities Trust, Innovation Group, Jersey Electricity 'A' Shares, Pressure Technologies |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks decline ahead of ECB's first meeting minutes European stocks declined ahead of the release of the European Central Bank's (ECB) first meeting minutes. The minutes, due out at 12:30 GMT, will provide detail about the ECB's decision on 22 January to introduce a €1trn quantitative easing package. The stimulus measures were introduced to bring inflation to the ECB's target of just below 2% and to boost the Eurozone's stagnant recovery.
ECB President Mario Draghi has said it will show whether decisions were agreed unanimously, by a large majority, a majority or by the minimum of consensus.
The ECB has, meanwhile, granted Greece's banks €3.3bn in emergency funds as the US warned the nation that it had reach a compromise deal on its debt or face "immediate hardship".
Athens has confirmed that it will seek an extension to its rescue loans on Thursday.
Eurozone creditors are urging Greece to extend its current bailout programme, which is due to end 28 February, but the country's government is against an extension on the existing terms.
The euro rose 0.43% to $1.1446.
In economic data, a report at 15:00 GMT is expected to show Eurozone consumer confidence fell in February.
Energy stocks fall as oil slides
Total SA and BG Group led a gauge of oil and gas lower on the Stoxx 600 as crude oil declined. Brent crude fell 3.5% to $58.48 per barrel, according to the ICE, after a build in weekly US crude inventories and a possible rise in Saudi output sparked worries about oversupply.
BAE Systems slumped after posting a 12% fall in full-year earnings.
British gas owner Centrica dropped after it registered an annual loss and cut its dividend.
Rexam gained as it reported better-than-estimated annual profit and as Ball Corp. offered to buy its rival beverage-can maker for 628p a share in cash and stock.
Randstad Holding NV advanced after reporting an increase in organic sales in January. |
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| | US Market Report | | US close: Dow Jones declines in the wake of Fed minutes and disappointing data US stocks fluctuated on Wednesday after minutes revealed Federal Reserve officials were leaning toward keeping rates at zero "for a longer time". The Dow Jones Industrial Average closed down 17.73 points at 18,029.85, while the S&P 500 lost 0.67 points and the Nasdaq edged forward by 7.10 points.
Minutes from the Fed January released on Wednesday showed that "many" on the Fed committee said a premature rate increase could be detrimental for the recovery, while "several" believed a later move could lead to high inflation.
Many Fed officials worried that once the term "patient" is scrapped, markets will assume the Fed is set to move on "an unduly narrow range of dates," which could lead to "undesirably tight" financial conditions".
"Concern about downside risk to inflation has risen and, consequently, the bar for raising rates by June is higher than it was in December," analysts at Barclays said in a note.
"We maintain our baseline forecast for a June rate hike at this juncture, but the risk of a later takeoff has risen, particularly if downside surprises on core inflation continue.
"We look to Chair Yellen's comments in front of the US Senate and House of Representatives next week for further clarification on the committee's thinking."
According to data released by the Fed on Wednesday, industrial production rose a seasonally adjusted 0.2% in January, falling short of the expected 0.4% increase.
US producer prices fell 0.8% month-on-month in January, driven by a 24% drop in gasoline prices from the previous month.
The fall took the annual producer price index inflation down to 0.0% from 1.1%, with the index having been as high as 1.6% in January.
"The stronger dollar appears to be having some impact too, with core final demand goods prices falling by 0.2% month-on-month," said Paul Ashworth, chief US economist at Capital Economics.
"As with the drop in energy prices, however, the impact of the stronger dollar on price inflation will be temporary.
"Given that the Fed is targeting the inflation rate in one or two years' time rather than the current rate, this is not a reason to delay the first interest rate hike, which we expect in June."
Meanwhile, US housing starts fell by 2% month-on-month in January to reach an annualised rate of 1.065m, according to the US Department of Commerce.
The consensus forecast had been for a decline of 1.7%.
However, that was more than compensated for by an upwards revision to the previous month's data, which now shows a rise of 7.1% on the month instead of the preliminary estimate of 4.4%.
In corporate news, Angie's List surged 58.90% after posting quarterly profit and revenue that topped Wall Street's expectations, while Boston Scientific jumped 12.40% after announcing on Tuesday it had reached a settlement with Johnson & Johnson over the acquisition of Guidant Corp. in 2004.
Ball rose 3.72% as reports emerged that the packaging giant could conclude a £4bn deal for UK-based sector peer Rexam.
Among the fallers, Fossil tanked 16.10% after the reporting late on Tuesday that its adjusted fourth-quarter earnings missed expectations and that revenue had also disappointed.
Oil prices tumbled, with Brent crude losing 4.1% to $60.04 a barrel, while West Texas Intermediate lost 3.6% ending the day at $51.68 a barrel.
Gold futures gained 0.19% to $1,210.90p, while the dollar lost almost 0.6% against the pound and 0.5% against the yen while it was largely stable against the euro.
S&P 500 - Risers
Boston Scientific Corp. (BSX) $16.68 +12.40%
Tesoro Corp. (TSO) $87.09 +4.60%
NRG Energy Inc. (NRG) $25.92 +3.76%
Ball Corp (BLL) $77.16 +3.72%
Sempra Energy (SRE) $109.71 +3.25%
Flowserve Corp. (FLS) $61.50 +3.22%
CMS Energy Corp. (CMS) $35.98 +3.21%
NiSource Inc. (NI) $43.91 +3.17%
DTE Energy Co. (DTE) $84.50 +3.16%
Xcel Energy Inc. (XEL) $36.30 +3.15%
S&P 500 - Fallers
Fossil Group Inc (FOSL) $83.65 -15.78%
Garmin Ltd. (GRMN) $50.71 -10.74%
Genworth Financial Inc. (GNW) $8.02 -9.07%
Diamond Offshore Drilling Inc. (DO) $34.06 -7.82%
Transocean Ltd. (RIG) $17.76 -6.77%
Denbury Resources Inc. (DNR) $8.63 -4.85%
CenturyLink Inc. (CTL) $37.51 -4.38%
Allegion (ALLE) $56.00 -4.37%
Devon Energy Corp. (DVN) $63.95 -4.05%
Ensco Plc. (ESV) $30.06 -3.25%
Dow Jones I.A - Risers
Nike Inc. (NKE) $93.62 +1.92%
Procter & Gamble Co. (PG) $86.26 +0.90%
American Express Co. (AXP) $79.78 +0.89%
Boeing Co. (BA) $151.17 +0.87%
International Business Machines Corp. (IBM) $162.19 +0.76%
Cisco Systems Inc. (CSCO) $29.49 +0.60%
United Technologies Corp. (UTX) $121.99 +0.55%
Wal-Mart Stores Inc. (WMT) $86.29 +0.38%
General Electric Co. (GE) $25.25 +0.32%
3M Co. (MMM) $167.40 +0.29%
Dow Jones I.A - Fallers
Exxon Mobil Corp. (XOM) $91.01 -2.19%
Chevron Corp. (CVX) $110.44 -1.74%
Intel Corp. (INTC) $34.26 -1.35%
JP Morgan Chase & Co. (JPM) $59.37 -1.21%
Goldman Sachs Group Inc. (GS) $188.67 -0.71%
Caterpillar Inc. (CAT) $84.80 -0.68%
Visa Inc. (V) $269.12 -0.65%
AT&T Inc. (T) $34.49 -0.63%
Johnson & Johnson (JNJ) $99.96 -0.48%
Verizon Communications Inc. (VZ) $48.94 -0.46%
Nasdaq 100 - Risers
Whole Foods Market Inc. (WFM) $57.20 +2.27%
Western Digital Corp. (WDC) $109.00 +2.09%
Stericycle Inc. (SRCL) $134.65 +2.08%
Nxp Semiconductors Nv (NXPI) $85.36 +1.96%
Celgene Corp. (CELG) $118.41 +1.80%
TripAdvisor Inc. (TRIP) $85.58 +1.57%
Cognizant Technology Solutions Corp. (CTSH) $61.09 +1.50%
Facebook Inc. (FB) $76.71 +1.47%
Monster Beverage Corp (MNST) $120.28 +1.33%
Cerner Corp. (CERN) $70.60 +1.22%
Nasdaq 100 - Fallers
Garmin Ltd. (GRMN) $50.71 -10.74%
Viacom Inc. Class B (VIAB) $68.09 -1.80%
Vodafone Group Plc ADS (VOD) $34.85 -1.75%
Linear Technology Corp. (LLTC) $47.96 -1.62%
Intel Corp. (INTC) $34.26 -1.35%
Charter Communications Inc. (CHTR) $174.30 -1.22%
Altera Corp. (ALTR) $35.80 -1.21%
Symantec Corp. (SYMC) $25.69 -1.19%
Mattel Inc. (MAT) $26.70 -1.18% |
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| | Newspaper Round Up | | Thursday newspaper round-up: Putin tactics, Nestle results, Social housing shortage British defence secretary Michael Fallon has warned that Russian president Vladimir Putin could repeat destabilising tactics against Baltic members of the Nato alliance that were previously used against Ukraine, according to The Guardian.
Nestle reported is slowest annual growth rate since 2009 due to a dip in consumer confidence, reported The Wall Street Journal.
Just one new council house is built to replace every 21 that are sold to tenants under the government's right-to-buy scheme and this has caused a critical social housing shortage, according to The Times.
Snapchat has entered negotiations to raise at least $16bn as part of an expansion plan for the mobile app start-up, wrote The Financial Times.
The European Central Bank will suffer politically if Greece is made to default, reported The Telegraph.
Anyone suffering with an illness that lasts for more than six weeks will have to undergo a fit-for-work test as the government cracks down on "sick-note culture", according to The Times. | | |
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