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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: UK stocks fall for fourth day as mining shares tank UK stocks extended their losing streak into the fourth day on Friday as a sell-off in iron ore and a stronger dollar hit share prices in the mining sector.
London's resource-heavy FTSE 100 finished the session down 40.31 points (-0.58%) at 6,855.02 as it continued its retreat from the record closing high of 7,037.67 reached on Monday.
Iron ore prices touched a new six-year low on Friday after data showed industrial profits in China fell 4.2% year-on-year in February. The commodity was also weighed down by the news that miners had dismissed Fortescue's call to collectively cap output to improve market conditions amid a supply glut.
"The return of dollar strength has seen commodity prices take a tumble, and subsequently the heavy weighting of the mining sector in the FTSE has seen it struggle to keep pace with more sprightly European equity markets," said IG's Alastair McCaig.
Comments from Bank of England governor Mark Carney were also weighing on UK markets after he said the central bank is still on track to raise interest rates in the future despite subdued inflation. Carney said: "We're still in a position where our message is [...] that the next move in interest rates is going to be up," prompting a 0.3% rise in the pound against the dollar to $1.4895.
In economic news, a Nationwide survey showed the annual growth in UK house prices slowed to an 18-month low of 5.1% in March.
Meanwhile, the final estimate of fourth-quarter annualised US economic growth was confirmed at 2.2%, in line with initial estimates but down from 5% in the third quarter.
Antofagasta leads miners lower, Carnival jumps
Copper mining group Antofagasta declined after being forced to suspend three mines in the north of Chile due to heavy rain. Since Tuesday evening, flash floods in the Atacama Desert in the north of Chile have wreaked havoc across the region, where Antofagasta's Centinela, Antucoya and Michilla mines are located.
Mining peers BHP Billiton, Anglo American, Randgold Resources, Glencore and Rio Tinto were also out of favour as metal prices weakened.
Leading the risers was Carnival as the cruise operator impressed with its first-quarter results and upbeat outlook. The company reported earnings of 20 cents per share, compared with a break-even performance a year before and ahead of previous guidance.
Royal Bank of Scotland fell into the red after confirming it will be offloading its Coutts private banking business to Switzerland's Union Bancaire Prive. No sale price was given, though RBS said it expects to take a 200m goodwill write-down.
Barratt Developments was lower after announcing that chief executive Mark Clare has stepped down following nine years in the role, to be replaced by finance director David Thomas.
Airline stocks Easyjet and IAG were performing well, rebounding after falling sharply on Thursday on the back of a spike in the oil price. Crude prices pulled back on Friday, while RBC Capital Markets upgraded Easyjet to 'outperform'.
Market Movers
techMARK 3,168.41 -0.25%
FTSE 100 6,855.02 -0.58%
FTSE 250 17,162.64 -0.57% |
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FTSE 100 - Risers
Carnival (CCL) 3,241.00p +7.18%
InterContinental Hotels Group (IHG) 2,640.00p +2.76%
Shire Plc (SHP) 5,425.00p +2.17%
SABMiller (SAB) 3,613.00p +1.43%
Compass Group (CPG) 1,174.00p +1.21%
International Consolidated Airlines Group SA (CDI) (IAG) 594.00p +1.19%
easyJet (EZJ) 1,858.00p +1.14%
London Stock Exchange Group (LSE) 2,413.00p +0.75%
Land Securities Group (LAND) 1,268.00p +0.63%
British Land Company (BLND) 849.50p +0.47%
FTSE 100 - Fallers
Weir Group (WEIR) 1,714.00p -3.55%
Glencore (GLEN) 288.15p -3.05%
Sports Direct International (SPD) 621.50p -3.04%
Anglo American (AAL) 1,044.00p -3.02%
Randgold Resources Ltd. (RRS) 4,756.00p -2.98%
Ashtead Group (AHT) 1,070.00p -2.55%
Rio Tinto (RIO) 2,809.50p -2.35%
Barclays (BARC) 244.25p -2.30%
BHP Billiton (BLT) 1,507.50p -2.27%
Dixons Carphone (DC.) 409.50p -2.13%
FTSE 250 - Risers
Workspace Group (WKP) 884.00p +3.51%
Just Eat (JE.) 421.00p +3.01%
CLS Holdings (CLI) 1,745.00p +2.65%
Unite Group (UTG) 597.00p +2.49%
Homeserve (HSV) 371.80p +2.40%
Rank Group (RNK) 188.40p +2.11%
Balfour Beatty (BBY) 239.90p +2.04%
Monks Inv Trust (MNKS) 428.00p +2.03%
Grafton Group Units (GFTU) 795.50p +1.86%
Spire Healthcare Group (SPI) 357.70p +1.82%
FTSE 250 - Fallers
Lonmin (LMI) 122.30p -5.49%
Supergroup (SGP) 945.50p -4.59%
Tullow Oil (TLW) 296.40p -3.86%
BlackRock World Mining Trust (BRWM) 294.50p -3.76%
Hunting (HTG) 520.00p -3.61%
AA (AA.) 416.70p -3.50%
Premier Oil (PMO) 141.00p -3.49%
Serco Group (SRP) 168.10p -3.39%
Nostrum Oil & Gas (NOG) 590.00p -3.28% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Equity markets maintain composure to end the week with mild gains European share markets ended the week on a bright note, recovering from the losses seen in the previous session with a little help from a weaker euro and lower oil prices.
At Europe's close, the DAX in Germany finished just above the flat line while the CAC-40 in Paris rose 0.3%. The broader Stoxx Europe 600 index added 0.2%.
Friday's session was a see-saw to say the least, with European markets hovering around the flat line, at times edging lower only to then leap back up. Geopolitical tensions in the Middle East and Greek drama acted as a backdrop, underpinning some of the downside.
That said, Europe outperformed peers in Asia and even the UK FTSE 100 market.
As Connor Campbell, market analyst at Spreadex put it, "unlike the dollar-stricken US markets, and the looming election nerves for the FTSE 100, the Eurozone always has the old QE-trick up its sleeve; the success of this stimulus has compensated for any Greek debt worries and has allowed the region to regain its losses faster than the other global indices."
The euro also had a bit of a roller-coaster session, moving off its session highs to trade just 0.2% higher against the greenback. That however was enough for exporting blue chips like German car makers to produce some respectable advances. The Stoxx 600 automobiles index added 0.7%.
At the same time, Brent and Nymex crude both fell from previous session highs thanks to fears receded over the protracted Middle East conflict after Saudi Arabia attacked Yemen. Nymex was last seen at $49.59 per barrel while Brent was at $57.85 barrel. That pushed airline stocks to rebound from previous session losses. The Stoxx 600 travel and leisure index rose 0.5%
London's FTSE 100 index underperformed major European rivals to close down 0.6% after the Bank of England's boss Mark Carney said the central bank is on track of tightening monetary policy but fell short of offering a date.
Sterling shot up 0.6% against the US dollar but UK stocks fell, with traders also citing the uncertain outcome of May's general election as being a factor.
There was little in the way of Eurozone economic data but sentiment continued to be lifted by Thursday's better than forecast Spanish GDP, French deficit and Eurozone M3 data.
"Economic data released over the month have confirmed that the recovery is gaining traction, supported by lower oil prices, a weaker euro and ECB policy action," said Barclays.
US economic data was uninspiring on the whole. GDP data showed the US economy expanded 2.2% in the fourth quarter of 2014, unchanged from the government's prior estimate. |
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| | US Market Report | | US open: Stocks in line for fifth consecutive day of losses after choppy start US stocks fluctuated in early trading on Friday, as investors awaited a speech from Federal Reserve chairwoman Janet Yellen.
Just after 10:00 in New York, the Dow Jones Industrial Average was down 3.72 points, while the S&P 500 and the Nasdaq advanced by 3.25 and 19.70 points, respectively.
Investors will closely monitor Yellen's speech at the Federal Reserve Bank of San Francisco Conference on "the New Normal for Monetary Policy" at 19:45 GMT to find out whether the Fed chairwoman will shed any light on the timing of the next interest rate hike.
The US economy expanded by 2.2% in the fourth quarter of 2014, unchanged from the government's prior estimate.
The reading was slightly below consensus expectations of an upwardly revised 2.4% reading and was half the pace of the 5% registered in the third quarter.
Meanwhile, the final reading on the University of Michigan's consumer sentiment survey for March was 93, above analysts' expectations for a reading of 92.5 but below February's print of 95.4.
In company news, biotech firm Orexigen Therapeutics advanced 2.61% after receiving the green light from European regulators for its Mysimba diet drug.
Smartphone provider BlackBerry rose over 2% after reporting fourth quarter earnings of four cents per share against expectations of a four cent loss.
Footwear retailer Finish Line gained over 2.5% after reporting better-than-expected fourth quarter earnings, while cruise company Carnival Corp jumped almost 7% after its first quarter earnings beat expectations
Going the other way, videogame retailer GameStop Corp fell as 1.4% early in the session after its quarterly results and outlook fell short of Wall Street's expectations late on Thursday.
Restoration Hardware Holdings reversed pre-market losses and edged forward 0.6% after reporting a 60% increase year-on-year in fourth quarter earnings late on Thursday.
After closing out a five-day winning streak on Thursday, oil prices fell on Friday, with West Texas Intermediate losing 0.94% to $50.95 a barrel, while Brent crude dropped 1.28% to $58.44 a barrel.
"The glut in oil supplies at the moment has capped any significant risk premium being added to prices," said Oanda's senior market analyst Craig Erlam.
"Oil has been in contango for quite a while now which has led to a record amount of offshore storage, to the point that availability is fast running out." |
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| | Broker Tips | | Broker tips: Shire, Vodafone, Easyjet Shire has had its target lifted by UBS from 5,400p to 6,600p as the Swiss bank highlighted three potential blockbuster products at the pharmaceutical group. A 'buy' rating was maintained.
The bank played down recent concerns that Shire overpaid earlier this year when it $5.2bn for US biotech group NPS. It estimated that the Natpara and Gattex products acquired through NPS could be worth $9bn on a net present value basis. Shire's own Vyvanse product for Binge Eating Disorder also has "blockbuster potential".
JPMorgan Cazenove has maintained an 'overweight' stance on Vodafone after results from an Indian spectrum auction this week came in better than many had expected.
"With the auction overhang removed, and FX pressures easing, we believe it is time to focus back onto the re-rating potential offered by Vodafone's improving European outlook, and our anticipated return to revenue growth" JPMorgan said.
Easyjet's shares were flying higher on Friday with analysts at RBC Capital Markets providing a lift after upgrading their view on the airline from 'sector perform' to 'outperform'. | | |
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