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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 100 pulled below 7000 by declines on US markets London's FTSE 100 accelerated in the red by the end of Wednesday's session with declines in US markets offering direction to the downside. Late in Europe, Dow Jones Industrial Average is down 1.1% in New York and the S&P500 is off 0.9% in low volume trade with markets cutting exposure following poor economic data out from the world's largest economy.
The FTSE 100 finished down 0.4% to 6991, falling below the key 7000 mark.
Connor Campbell, a market analyst at Spreadex noted that the FTSE 100 did well to hold onto some marginal growth above its 7000 level but gains ultimately succumbed to comments from the Bank of England's Kristin Forbes that UK inflation is likely to turn negative next month, and that the central bank could cut rates further if low inflation 'persists'.
"This is the second such statement from a BoE member after Andrew Haldane similar comments last week; it will be interesting what Governor Mark Carney says when he speaks on Friday," said Campbell.
In FX markets, the British pound and euro currency are recovering against the US dollar. Sterling was up 0.4% against the US dollar to change hands at $1.48901 and the euro, which nine days ago fell to a 12-year low of $1.0456, is 0.6% firmer on the day at $1.0965, underpinned by stronger-than-expected German business optimism.
In commodity markets, gold rose 0.4% to $1,197.4. Energy has reversed early losses, and Brent crude is up 0.9% to $55.81 a barrel while Nymex crude surged 2.2% to $48.32 a barrel.
Balfour Beatty shares gain despite poor numbers
Shares in UK construction firm Balfour Beatty gained over 6% as it pledged to implement cost saving after reporting deep losses last year which forced it to suspend its dividend.
Barclays shares dropped after broker Investec Securities downgraded its rating on the bank to 'hold'.
United Utilities Group shares flicked between gains and losses after the company's sparse trading update underwhelmed the market but the group did say it expects a modest increase in underlying operating profit for current year earnings compared with the previous year.
Profits at UK housebuilder Bellway jumped by more than a half to a record in the first six months of its financial year, prompting the company to hike its interim dividend by 56.3%.
Meanwhile, Moneysupermarket dipped after founder Simon Nixon tried to place £35m of his shares in the company on Tuesday after markets had closed, only to pull the placing on Wednesday morning as investors seemed likely not to buy in to it.
Card Factory was also trading lower as despite impressive full-year results, as investors were disappointed not to receive a special dividend.
International Personal Finance reversed from gains made on Tuesday as a result of an upgrade from Berenberg Bank. |
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| | FTSE 100 - Risers
TUI AG Reg Shs (DI) (TUI) 1,214.00p +2.62%
BG Group (BG.) 895.70p +1.69%
Rio Tinto (RIO) 2,926.00p +1.46%
Centrica (CNA) 260.20p +1.40%
BT Group (BT.A) 470.55p +1.08%
Anglo American (AAL) 1,104.50p +1.01%
BP (BP.) 448.35p +0.95%
HSBC Holdings (HSBA) 583.50p +0.90%
Royal Dutch Shell 'A' (RDSA) 2,096.50p +0.87%
Johnson Matthey (JMAT) 3,425.00p +0.85%
FTSE 100 - Fallers
ARM Holdings (ARM) 1,127.00p -6.08%
Sage Group (SGE) 468.50p -2.74%
Barclays (BARC) 251.90p -2.53%
InterContinental Hotels Group (IHG) 2,595.00p -2.30%
Shire Plc (SHP) 5,400.00p -2.26%
Carnival (CCL) 3,045.00p -2.09%
Capita (CPI) 1,180.00p -1.83%
Travis Perkins (TPK) 1,958.00p -1.76%
Tesco (TSCO) 239.35p -1.76%
Sky (SKY) 1,012.00p -1.75%
FTSE 250 - Risers
Hunting (HTG) 534.50p +6.90%
Premier Oil (PMO) 150.00p +5.63%
Balfour Beatty (BBY) 244.00p +5.54%
Soco International (SIA) 169.40p +5.22%
Redrow (RDW) 358.70p +4.15%
Bellway (BWY) 2,059.00p +2.74%
Polymetal International (POLY) 569.00p +2.71%
Acacia Mining (ACA) 272.10p +2.68%
Vedanta Resources (VED) 557.00p +2.67%
Just Eat (JE.) 388.00p +2.65%
FTSE 250 - Fallers
Ted Baker (TED) 2,660.00p -4.93%
Card Factory (CARD) 284.10p -4.66%
RPS Group (RPS) 237.50p -4.54%
Thomas Cook Group (TCG) 140.00p -4.18%
Greencore Group (GNC) 314.60p -4.03%
Moneysupermarket.com Group (MONY) 276.30p -3.39%
Mitchells & Butlers (MAB) 436.60p -3.34%
Ocado Group (OCDO) 335.10p -3.07%
esure Group (ESUR) 219.90p -2.74%
International Personal Finance (IPF) 490.80p -2.72%
FTSE TechMARK - Risers
Kofax Limited (DI) (KFX) 732.50p +45.63%
Oxford Biomedica (OXB) 13.00p +4.00%
Gresham Computing (GHT) 89.50p +1.70%
Filtronic (FTC) 12.00p +1.05%
BATM Advanced Communications Ltd. (BVC) 13.50p +0.93%
Innovation Group (TIG) 29.25p +0.86%
Optos (OPTS) 346.75p +0.65%
Anite (AIE) 89.25p +0.56%
Sepura (SEPU) 140.38p +0.45%
Phoenix IT Group (PNX) 133.50p +0.38%
FTSE TechMARK - Fallers
Oxford Instruments (OXIG) 848.50p -3.80%
Vectura Group (VEC) 147.50p -2.16%
NCC Group (NCC) 200.00p -1.48%
KCOM Group (KCOM) 94.00p -1.31%
Dialight (DIA) 767.50p -0.97%
SDL (SDL) 432.00p -0.92%
Spirent Communications (SPT) 89.00p -0.84%
E2V Technologies (E2V) 198.50p -0.75%
Consort Medical (CSRT) 852.50p -0.41% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks drop amid disappointing US durable goods orders, Greek woes An unexpected fall in US durable goods orders data and concerns over Greece dampened sentiment with European equities finishing Wednesday's session in negative territory. US durable goods fell 1.4% month-on-month in February, compared to forecasts for a 0.2% increase and the previous month's 2% increase.
"This weakness could be linked to the big shake-out in the oil and gas sector, but that sector doesn't account for a very big share of the existing stock of capital goods," said Paul Ashworth, chief US economist at Capital Economics.
On another negative note for the market, Greece failed in a bid on Wednesday to secure a quick cash payment from the Eurozone rescue fund to help stave off potential bankruptcy in April.
Greece had appealed for the European Financial Stability Facility to return €1.2bn it said it had overpaid when it transferred bonds intended for bank recapitalisation but Eurozone officials agreed in a telephone conference on Wednesday that that nation was not legally entitled to the money.
Greece has promised to deliver a list of solid reforms by Monday to present to creditors amid reports that the country will run out of money on April without new funds.
A better-than-expected report on German business confidence did little to lift stocks.
The Ifo's business sentiment index for Europe's biggest economy increased to 107.9 this month from 106.8 in February, missing forecasts of 107.3.
"Despite the latest German Ifo business climate data beating expectations, this good news couldn't inspire much growth in the DAX, or the rest of the Eurozone, with the region appearing to be hampered by the euro taking back some of yesterday's losses against the dollar alongside more worries about Greece's financial situation," said Connor Campbell, financial analyst at Spreadex.
The euro rose 0.44% to $1.0972.
Barclays slides
Barclays was lower after Investec cut its rating on the lender to 'hold' due to a worse outlook on return on equity.
SABMiller slipped as RBC Capital Markets said that a potential purchase of Kraft Foods Group by 3G Capital adds to reasons why Anheuser-Busch InBev won't acquire SAB.
Remy Cointreau SA and Carlsberg A/S were also among the big fallers of food and beverage stocks.
Marine Harvest ASA declined after Nordea Bank AB lowered its price estimate on the shares and reiterated a 'sell' rating.
Accor SA slumped after Eurazeo SA sold 11m shares in the company for €48.75 each.
Balfour Beatty advanced after reporting annual revenue that met analysts' forecasts. |
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| | US Market Report | | US open: Stocks book mild losses in directionless markets US stock indices booked mild losses on Wednesday amid a lack of clear direction and little in the way of economic data to inspire investors. At 1424 GMT, the Dow Jones Industrial Average fell 0.2% to 17,989 while the S&P500 index lost 0.1% to 2092.7. The tech-rich Nasdaq 100 underperformed peers, dropping 0.4% to 4417.9.
Deal activity offered markets some inspiration however. Kraft Foods Group shares surged 33% after a merger was announced with H.J. Heinz Company.
So far this week however, major indices have produced losses of just over 0.5% with Tuesday triggering the bigger falls after consumer prices and other data suggested to some that a Federal Reserve interest-rate hike could come sooner rather than later.
In Wednesday's economic news, orders for durable US goods fell in February, suggesting businesses remain reluctant to invest in a more aggressive manner.
Separately, data showed US mortgage applications had their biggest jump since January last week, climbing 9.5% in the week to March 20.
Elsewhere, Charles Evans, president of the Chicago Federal Reserve, speaking to press after a speech in London, warned that global uncertainty is the biggest risk to the U.S. economy, advocating interest rates stay low until 2016.
The US dollar fell 0.4% against its major peers, pausing for breath from its recent run after Tuesday's inflation data. At the same time, better than expected German business confidence data kicked up the euro currency, sealing the underperformance of the greenback versus the 17-nation bloc currency. |
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| | Broker Tips | | Barclays downgraded to 'hold' over at Investec Securities British bank Barclays had its rating downgraded to ‘hold’ from ‘buy’ over at Investec Securities on Wednesday.
The broker said the main plank of its investment case for buying Barclays over the past year has been its extreme relative and absolute cheapness, reinforced by an absolute cost reduction story and the material FX tailwind in evidence in the Q3/Q4 2014 results, which Investec thinks, is likely to continue in 2015.
“However, (with Barclays) now trading on 0.9x 201 5/16 tangible net asset value, we think the valuation case is no longer overwhelming in the context of our deteriorating expectations for the scale and pace of return on equity recovery,” said Investec.
The broker also chopped its price target on Barclays to 270p from 295p.
Directory in the UK at Next is showing fewer growth levers than hoped for.
However, there is upside to the outlook for cash generation. | | |
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