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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 jump on central bank stimulus Strong gains from in the retail sector outweighed falls from energy stocks on Monday, as UK equities recovered strongly after their worst weekly performance so far this year.
The FTSE 100 finished the session up 0.94% at 6,804.08 after dropping 2.5% last week.
Despite the strong gains, oil and gas producers were limiting upside as crude prices slid sharply. US oil futures were down as much as 4.4% at a fresh six-year low if $42.85 a barrel during intraday trade as investors reacted to speculation of more Iranian oil exports hitting the market and data that showed rising stockpiles at a key US storage hub.
Analyst David Madden from IG said that UK markets were driven higher by easing measures in Europe, as the European Central Bank (ECB) revealed its spent €9.751bn buying bonds in the first week of its new quantitative easing (QE) programme.
"As strong as the London market is, it is playing second fiddle to Continental Europe as the early days of the ECB QE scheme is sending Eurozone equity markets soaring," Madden said.
Frankfurt's DAX benchmark index in particular jumped 2.2% to 12,167.71, smashing through the 12,000 barrier for the first time in history.
Hopes for further stimulus in Beijing also lifted sentiment after Chinese Premier Li Keqiang said at the National People's Congress on Sunday that the government is ready to boost the private sector and domestic demand if growth continues to ease.
"The good news is that in the past couple of years we did not resort to massive stimulus measures for economic growth. We still have more tools in our toolbox," he said.
The economic data calendar was relatively quiet on Monday, as the focus remains on the upcoming Federal Reserve decision and UK Budget on Wednesday. As for the Fed meeting, investors will be waiting to see whether policymakers drop the term 'patient' from their guidance about the timing of interest rates.
Supermarkets jump, CRH and Tullow slump
Grocery giant Tesco rose strongly on speculation that WPP has made an offer for a majority stake in its Dunnhumby business, which developed its Clubcard loyalty scheme, to bolster its consumer behaviour knowledge. Bloomberg cited a source saying that Tesco is asking for ?2bn for the entire division, which has also attracted interest from Warburg Pincus, Carlyle Group and TPG.
Sainsbury's jumped as investors awaited the grocer's fourth-quarter trading update on Tuesday. Morrisons was also higher.
Energy stocks such as Tullow Oil and BP were tracking crude prices lower, though Tullow was the standout faller, dropping 6% after a target cut at Exane BNP Paribas.
Astrazeneca edged higher, erasing earlier losses, as its much-anticipated Pegasus study of its Brilinta treatment found that the drug reduced the chances of another heart attack or stroke in patients, though it did increase bleeding.
Mining stocks were mixed, with Anglo American and Glencore trading lower and BHP Billiton and Rio Tinto registering gains. Even Antofagasta was in demand despite reports that the copper miner may have to close it Los Pelambres project in Chile after a court ruling last week to destroy a tailings dam wall at the site on environmental concerns. |
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| | Market Movers
techMARK 3,220.42 +0.87%
FTSE 100 6,804.08 +0.94%
FTSE 250 17,200.95 +0.53% FTSE 100 - Risers
Sainsbury (J) (SBRY) 268.60p +3.67%
Tesco (TSCO) 241.35p +3.65%
Kingfisher (KGF) 367.00p +3.47%
Next (NXT) 7,555.00p +2.79%
TUI AG Reg Shs (DI) (TUI) 1,200.00p +2.74%
Hargreaves Lansdown (HL.) 1,149.00p +2.59%
Marks & Spencer Group (MKS) 506.00p +2.51%
Burberry Group (BRBY) 1,890.00p +2.49%
Imperial Tobacco Group (IMT) 3,169.00p +2.36%
Aberdeen Asset Management (ADN) 461.70p +2.30%
FTSE 100 - Fallers
Tullow Oil (TLW) 281.20p -5.73%
CRH (CRH) 1,731.00p -4.42%
Sports Direct International (SPD) 641.50p -2.36%
Experian (EXPN) 1,115.00p -1.33%
Royal Bank of Scotland Group (RBS) 351.50p -1.32%
Ashtead Group (AHT) 1,097.00p -0.90%
Weir Group (WEIR) 1,781.00p -0.39%
WPP (WPP) 1,558.00p -0.38%
RSA Insurance Group (RSA) 419.50p -0.24%
BP (BP.) 417.60p -0.16%
FTSE 250 - Risers
Ted Baker (TED) 2,739.00p +6.12%
Just Eat (JE.) 363.30p +4.70%
Provident Financial (PFG) 2,766.00p +4.65%
Brown (N.) Group (BWNG) 345.10p +3.82%
Card Factory (CARD) 280.80p +3.58%
TalkTalk Telecom Group (TALK) 348.90p +3.44%
AL Noor Hospitals Group (ANH) 1,010.00p +3.27%
Beazley (BEZ) 295.10p +3.18%
Investec (INVP) 586.00p +3.08%
Britvic (BVIC) 762.50p +3.04%
FTSE 250 - Fallers
Afren (AFR) 3.74p -19.57%
Vedanta Resources (VED) 447.60p -8.03%
Premier Oil (PMO) 120.20p -7.54%
Serco Group (SRP) 171.00p -6.20%
Nostrum Oil & Gas (NOG) 550.50p -6.06%
AO World (AO.) 182.10p -4.96%
Ocado Group (OCDO) 370.90p -4.53%
Pace (PIC) 362.20p -4.51%
Drax Group (DRX) 360.50p -4.45% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks gain as ECB reveals QE spend European stocks rallied as the European Central Bank (ECB) announced it was on track to reach its monthly target of €60bn for purchasing government bonds.
The ECB said it has spent €9.751bn (7bn) on bonds in the first week of its new quantitative easing programme, which aims to inject €1trn into the Eurozone economy by September 2016.
The introduction of the bond-buying scheme has buoyed European markets, with Germany's DAX Index climbing over 12,000 points for the first time on Monday.
The ECB will publish details of bond maturities on a monthly basis, starting April.
President Mario Draghi is due to speak at 18:45 GMT in Frankfurt.
Meanwhile, the Greek government on Monday paid €580m due to the International Monetary Fund, meaning that the nation has cleared most of the money owed. However, Greece still faces another €350m bill on Friday.
In economic data, US industrial production rose 0.1% in February, less than the 0.2% growth expected while manufacturing output unexpectedly dropped 0.2%.
The NAHB housing market index for the US fell to 53 in March from 55, compared to estimates of 56.
The data comes ahead of Wednesday's Federal Reserve's policy decision. Most analysts see the Fed keeping interest rates unchanged but investors will be looking to see whether the central bank changes its forward guidance.
"Markets appear to have got it into their heads that this week's Federal Reserve rate meeting could well be the precursor to a change in their forward guidance, which some think could be a precursor to a potential rate rise this summer," said Michael Hewson, chief market analyst at CMC Markets.
The UK Budget is also hot on this week's agenda and will be under close scrutiny ahead of the general election on 7 May.
Companies: H&M, Fortum Oyj
Hennes & Mauritz AB rallied after reporting a rise in first-quarter sales that beat analysts' forecasts.
Fortum Oyj slumped after completing the sales of its Weish power grid, its biggest divestment ever.
French cement maker Lafarge and Swiss building materials company Holcim declined as the former said it's willing to consider revising the share-exchange ratio in its planned merger with the latter.
Standard Life dropped following reports it may increase its stake in an Indian joint venture.
Royal DSM NV gained after the Dutch chemical maker agreed to dispose a majority holding in a plastics and resins business.
The euro rose 1.11% to $1.0612 at close of trade. |
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| | US Market Report | | US open: Dow jumps almost 170 points but oil prices continue to fall US stocks advanced on Monday, buoyed by strong performances in the European and Asian markets.
Just before 10:00 in New York, the Dow Jones Industrial Average was up 167 points, while the S&P 500 and the Nasdaq were 11 and 23 points up respectively.
On Friday, Wall Street registered their third weekly loss amid a surging dollar and tumbling oil prices but markets edged forward on Monday, in the wake of positive news from Europe and China.
Eurozone economies, Germany in particular, opened the week in strong fashion, with the DAX 30 index edging over 12,000 points for the first time, while the Shanghai Composite Index jumped 2.3% to settle at its highest level in almost six years.
The Federal Reserve will release the statement from its two-day FOMC meeting on Wednesday, as investors wait to see whether it will remove the word "patient" from its stance, which would be seen as a clear indication of an imminent hike in interest rates.
"It is not often that US markets have played second fiddle to their European counterparts, but the driving force of the European QE scheme continues to see them set the pace as US equity indices struggle to keep up," said IG analyst Alastair McCaig.
In company news, Life Time Fitness climbed 5% after the fitness operator agreed to a takeover offer by private-equity firm TPG and Leonard Green & Partners L.P. for $72.10 a share.
Streaming video service Netflix fell over 3% after being downgraded by analysts at Evercore ISI, while clothing company Quiksilver slid 1% ahead of its first quarter results in which it is expected to announce a loss of 12 cents a share.
Oil prices tumbled, with West Texas Intermediate slumping to its lowest level since March 2009 as a growing supply glut continued to concern investors.
"The growing supply-glut as suggested by the IEA has helped oil prices drop again after having traded sideways since January," said CMC Market Analyst Jasper Lawler.
"A renewal of the downtrend in oil prices could weigh on the energy sector of the major stock averages."
West Texas Intermediate was down 1.95% to $43.98 a barrel, while Brent crude lost 2.3% to $53.43 a barrel. |
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| | Broker Tips | | Broker tips: Astrazeneca, Vodafone, Housing stocks Results from Astrazenca's Pegasus study of its blood-thinning Brilinta treatment received a cool reaction from the market on Monday, though analysts at UBS maintained their positive outlook for the product.
The bank, which kept a 'buy' rating and 5,500p target for the stock, said it still sees upside to consensus forecasts for Brilinta's sales despite the mixed study results.
In spite of a number of headwinds facing Vodafone, JPMorgan Cazenove has retained an 'overweight' stance on the stock, saying it still expects a return to revenue growth at the telecoms group in the second half of 2015.
"Whilst these overhangs may persist short - term, April should see attention refocus onto the full-year results and Vodafone's improving European outlook. Crucially we anticipate ongoing sequential improvements in organic revenue growth, with this largely predicated on Southern Europe, and believe this should enable Vodafone to return to growth in H2, supporting a material multiple re-rating," said JPMorgan analyst Akhil Dattani.
Recent housing data has added to concerns in the housebuilding sector of a slowdown in the London housing market, according to Westhouse Securities, which warned of a potential "overhang" of new properties going up in the capital. | | |
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