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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 pulls back from record as miners dip into the red UK stocks inched lower on Monday after hitting a new intraday record high during the session as markets were underwhelmed by a raft of positive manufacturing data and a rate cut in China.
London's FTSE 100, which rose to a new all-time peak of 6,974.26 early on, finished 6.02 points lower -0.09% at 6,940.64.
The mining sector, which performed well in morning trade, had erased gains by the close as investors shrugged off a move by the People's Bank of China to boost growth and counter deflationary risks.
The PBOC cut its benchmark interest rate by a quarter point for the second time in three months, to 5.35%, and lowered its one-year benchmark deposit rate by the same amount to 2.5%.
Analyst Craig Erlam from Oanda said the rate cut only had a limited impact on the markets "in a sign that people remain unconvinced about the PBOC's ability to shore up the slowing economy". He said: "The PBOC had to do something but markets are clearly not that impressed. A more significant slowdown looks inevitable, the only question is if a hard landing can be avoided."
Manufacturing PMIs in focus
There were contrasting data reports on Chinese manufacturing activity released overnight, but they both indicated an up-trend in growth for the sector. Both the HSBC/Markit and government manufacturing purchasing managers' indices both came in ahead of expectations, rising to 50.7 and 49.9 respectively.
Meanwhile, the UK manufacturing PMI rose from 53.1 to 54.1 in February, while the final estimate of the Eurozone manufacturing PMI was broadly in line with the
Other data released confirmed that the Eurozone was in deflation for the third straight month in February, with consumer prices falling 0.3%, though not as bad as the 0.5% decline expected. The figures came ahead of a policy meeting on Thursday at which the European Central Bank will launch its €1trn quantitative easing programme.
Miners reverse after strong start
Mining stocks such as Rio Tinto, BHP Billiton, Randgold and Fresnillo were providing a drag on the FTSE 100, dropping into the red following a decent start.
Rio Tinto was in focus on the back of rumours it could exit from the coal market, with Glencore among those rumoured to be interested. Rio was also making headlines after the Australian Workers Union lambasted the company and fellow miner BHP Billiton for "their cartel-like behaviour".
Banking stocks such as Barclays and RBS were among the best performers as share prices rebounded after a weak outing last week following some poorly-received annual results. 2014 figures from Barclays, the last UK lender to report, are due out on Tuesday.
Intertek, the product testing and certification outfit, was higher after forecasting a improvement in organic revenue growth in 2015 after a 0.6% decline last year. Profits were down 4.7% in 2014, though the company still lifted its dividend by 6.7%
Oil stocks such as Tullow and Shell were trading lower as crude prices weakened with Brent down 3.4% at $60.47 a barrel.
Insurer Amlin disappointed after reporting a 21% drop in full-year pre-tax profit as the low interest rates environment together with a drop in investment return dented profitability. |
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| | Market Movers
techMARK 3,155.68 -0.15%
FTSE 100 6,940.64 -0.09%
FTSE 250 17,249.92 -0.14% FTSE 100 - Risers
Royal Bank of Scotland Group (RBS) 378.30p +3.02%
Hargreaves Lansdown (HL.) 1,160.00p +2.65%
Barclays (BARC) 262.75p +2.28%
British Land Co (BLND) 845.00p +1.99%
ARM Holdings (ARM) 1,182.00p +1.98%
Carnival (CCL) 2,976.00p +1.85%
Land Securities Group (LAND) 1,278.00p +1.75%
Whitbread (WTB) 5,345.00p +1.71%
Capita (CPI) 1,207.00p +1.60%
Morrison (Wm) Supermarkets (MRW) 198.80p +1.58%
FTSE 100 - Fallers
Tullow Oil (TLW) 357.30p -7.75%
Shire Plc (SHP) 5,160.00p -2.18%
Royal Dutch Shell 'B' (RDSB) 2,159.50p -2.09%
Aggreko (AGK) 1,680.00p -1.64%
Babcock International Group (BAB) 994.00p -1.58%
Randgold Resources Ltd. (RRS) 5,100.00p -1.54%
Rolls-Royce Holdings (RR.) 934.50p -1.53%
Royal Dutch Shell 'A' (RDSA) 2,090.00p -1.32%
BHP Billiton (BLT) 1,595.50p -1.30%
Dixons Carphone (DC.) 434.90p -1.29%
FTSE 250 - Risers
Afren (AFR) 9.90p +15.11%
Allied Minds (ALM) 650.00p +9.24%
Oxford Instruments (OXIG) 798.00p +5.49%
Bank of Georgia Holdings (BGEO) 1,797.00p +4.17%
Keller Group (KLR) 1,053.00p +3.95%
Alent (ALNT) 364.70p +3.49%
Electrocomponents (ECM) 232.40p +3.47%
Great Portland Estates (GPOR) 822.00p +2.69%
Domino's Pizza Group (DOM) 741.00p +2.56%
Berendsen (BRSN) 1,128.00p +2.55%
FTSE 250 - Fallers
Amlin (AML) 496.60p -6.21%
Premier Oil (PMO) 158.10p -6.17%
Bwin . party Digital Entertainment (BPTY) 80.20p -5.98%
Ultra Electronics Holdings (ULE) 1,707.00p -5.17%
Cairn Energy (CNE) 195.20p -4.08%
Serco Group (SRP) 213.50p -4.00%
Aveva Group (AVV) 1,544.00p -3.20%
Supergroup (SGP) 943.00p -3.13%
Zoopla Property Group (WI) (ZPLA) 178.30p -3.10% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks mixed as Eurozone consumer prices fall less than forecast European stocks were mixed as investors weighed a better-than-expected decrease in the Eurozone consumer price index.
Eurozone consumer prices fell 0.3% in February, beating analysts' estimates for a 0.5% decline, and recovering from the previous month's 0.6% drop.
Eurostat's preliminary estimate on inflation was supported by an increase in services, food, alcohol and tobacco. Energy prices continued to weigh on inflation, but recovered slightly from January's slump.
The European Central Bank (ECB) on Thursday launches its €1trn quantitative easing programme to help bring inflation back towards its target of just under 2%.
"February's continued fall in Eurozone consumer prices and the still high rate of unemployment in January confirm that the ECB faces an uphill battle against the threat of deflation," according to Jennifer McKeown, senior European economist at Capital Economics.
A separate report from Markit showed its final reading on Eurozone purchasing managers index (PMI) for manufacturing activity was confirmed at 51 in February, holding above the 50 level that indicates expansion.
The euro rose 0.25% to $1.1224.
In the UK, Markit's manufacturing PMI jumped to a seven-month high of 54.1 in February, up from 53.1 in January. Analysts had expected a reading of 53.4.
Another UK report from the Bank of England revealed UK mortgage approvals were slightly higher in January than a month ago. January saw 60,789 mortgage approvals, up from December's 60,300 and a four-month high.
In China, HSBC's manufacturing PMI was unexpectedly revised to 50.7 in February from 50.1.
The data came as China's central bank cut interest rates, driving stock indices higher across the region on hopes that Beijing will take a supportive stance on ensuring growth.
The People's Bank of China (PBoC) cut its benchmark interest rate by a quarter point for the second time in three months, to 5.35%, and lowered its one-year benchmark deposit rate by the same amount to 2.5%.
Stateside, personal spending dropped 0.2% in January, better than the 0.3% decline registered in December but lower than the 0.1% dip expected by economists.
US personal income rose 0.3% in January, in line with the previous month's growth but below analysts' estimates for a 0.4% increase.
Energy stocks slide
A measure of energy stocks, including Tullow Oil and Royal Dutch Shell, slumped as oil prices fell after OPEC output in February exceeded its quota for a ninth month.
Brent crude dropped 3.6% to $60.36 per barrel at close of trading, according to the ICE.
Lafarge SA declined following reports Holcim shareholders are urging the Swiss cement company to renegotiate the merger with Lafarge.
Vivendi SA dipped after saying it plans to return about €5.7bn to investors after selling more than $30bn of assets. The French conglomerate sold a 20% stake in Numericable-SFR at a discount to Altice SA. Altice gained after Vivendi accepted its €40-a-share bid. |
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| | US Market Report | | US open: Stocks rise despite weak spending and manufacturing data Wall Street stocks advanced on Monday despite some weak economic data, with personal spending and income figures missing expectations and manufacturing activity growing at its slowest rate in a year.
By 10:05 in New York, the Dow Jones Industrial Average and Nasdaq were up 0.5%, while the S&P 500 gained 0.3%.
Indices were extending gains after a solid showing in February, with the S&P 500 in particular rising 5.5% during the month - its best performance since October 2011.
Personal spending in the US dropped 0.2% in January, better than the 0.3% decline registered in December but lower than the 0.1% dip expected by economists.
The decline came as personal income rose 0.3% in January, matching December but a slightly lower result than the 0.4% increase estimated by economists.
The Institute for Supply Management's US manufacturing index declined to 52.9 in February, from 53.5 the month before, slightly below the 53.0 consensus forecast. This was the survey's lowest rate of growth - identified by figures over 50 - since January 2014.
Economist Paul Ashworth from Capital Economics said that while there is "no reason to panic", the ISM data was "muted".
"The unseasonably severe weather got even worse in February, so there is little prospect of a rebound until March (and given how March just started, possibly not until April)," he said.
Wireless solutions group Aruba Networks declined after strong gains last week as it confirmed that it will be taken over by Hewlett-Packard in a $3bn deal. |
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| | Broker Tips | | Broker tips: IAG, RSA, William Hill Credit Suisse has hiked its target for International Airlines Group from 678p to 750p after the British Airways and Iberia owner beat estimates with its annual results last week.
The bank reiterated its 'outperform' rating, saying "quality is shining through" at the airline conglomerate.
UBS said it remains cautious about RSA Insurance but has upgraded its rating on the stock from 'sell' to 'neutral', saying that the market's expectations have been reset following last week's annual results.
"RSA faces challenges achieving its targeted 12-15% return on tangible equity but this is now the more consensual view with management having pushed out the target to 2017. Lower bond yields and increased competition have undermined announced efficiency gains. We remain relatively cautious given headwinds but the valuation is now more realistic."
In spite of a decent set of results from William Hill last week, Canaccord Genuity has kept a 'hold' stance on the high street bookie, saying that the company is facing tough 2015. | | |
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