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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 snaps four-day losing streak on China hopes and upbeat data London's Footsie managed to hold on to gains by the close on Monday, snapping a four-day losing streak, as hopes for stimulus in China and strong economic data gave sentiment a boost.
The FTSE 100 finished up 0.53% at 6,891.43, though it remains well below its record closing high of 7,037.67 reached a week ago.
Markets started on the front foot following a strong performance on Asian indices overnight after the governor of the People's Bank of China hinted at further measures to boost growth. Zhou Xiaochuan said the rate of economic growth had slowed "a bit" too far and the central bank has room to act, including through quantitative easing.
Meanwhile, Chinese president Xi Jinping unveiled new infrastructure plans to improve links between Asia and the rest of the world to generate $2.5trn in annual trade within a decade.
Global economic data mostly came in ahead of expectations on Monday with UK mortgage approvals rising to a six-month high, Eurozone sentiment survey surging to a four-year high, and US personal income and pending home sales showing solid increases.
Uncertainty picks up ahead of elections
Despite the rise in UK stocks, analyst Chris Beauchamp from IG pointed out that the FTSE failed to keep pace with gains with counterparts in Europe and on Wall Street.
"Comments from China have certainly helped UK traders to find the confidence to step back in, but the start of the General Election and speeches by the main leaders have conspired to prevent further gains as investors worry about the consequences of an indecisive result," he said.
Two conflicting polls released over the past 24 hours added to this uncertainty, showing both the Labour and Conservative parties four points ahead.
Analysts at JPMorgan Cazenove said on Monday that the May elections "could be quite messy" and recommended to stay underweight into that event risk. They said that with positives and negatives from both a potential Labour or Conservative victory, the elections "are almost a 'no win' situation from the perspective of the financial markets".
Compass, Kingfisher, Quindell and miners rise
Catering outfit Compass Group rose after saying it remained confident of achieving first-half organic revenue growth of approximately 5.5%.
DIY retailer Kingfisher was a high riser as investors welcomed the collapse of its €275m deal to buy French chain Mr Bricolage.
Specialist UK insurance outsourcer Quindell saw shares jump 18% after saying it is selling its professional services unit - the bulk of Quindell's operations - to Australian law-firm, Slater & Gordon, in a deal worth ?700m.
After a slow start, mining stocks pushed into positive territory with Antofagasta, Anglo American and Randgold Resources making gains. Randgold in particular was heading higher after chief executive Mark Bristow said he sees opportunities "to play a part in the likely restructuring of the gold mining industry".
Rolls-Royce was in demand after its Trent 1000 engines were selected by Air China to power 15 new Boeing 787-9 Dreamliner aircraft. The engineering group also announced that it
Supermarket group Morrisons was hit with a downgrade to 'neutral' by Goldman Sachs who said that the stock had reached its target. |
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| | Market Movers
techMARK 3,180.78 +0.39%
FTSE 100 6,891.43 +0.53%
FTSE 250 17,208.10 +0.26%
FTSE 100 - Risers
Antofagasta (ANTO) 739.50p +3.43%
Ashtead Group (AHT) 1,101.00p +2.90%
London Stock Exchange Group (LSE) 2,476.00p +2.61%
ARM Holdings (ARM) 1,106.00p +2.50%
Coca-Cola HBC AG (CDI) (CCH) 1,220.00p +2.01%
Kingfisher (KGF) 364.80p +1.96%
RSA Insurance Group (RSA) 430.50p +1.73%
Reed Elsevier (REL) 1,181.00p +1.64%
Sage Group (SGE) 469.00p +1.54%
Standard Chartered (STAN) 1,120.00p +1.54%
FTSE 100 - Fallers
Smiths Group (SMIN) 1,129.00p -2.84%
BG Group (BG.) 852.00p -2.44%
Barratt Developments (BDEV) 526.00p -1.87%
Capita (CPI) 1,123.00p -1.58%
BT Group (BT.A) 448.25p -1.27%
Persimmon (PSN) 1,647.00p -1.20%
Imperial Tobacco Group (IMT) 3,068.00p -1.10%
Babcock International Group (BAB) 963.00p -1.08%
Morrison (Wm) Supermarkets (MRW) 196.40p -1.06%
Sports Direct International (SPD) 615.00p -1.05%
FTSE 250 - Risers
Ocado Group (OCDO) 359.40p +8.45%
NMC Health (NMC) 675.00p +4.73%
Rightmove (RMV) 2,997.00p +4.53%
Just Eat (JE.) 436.80p +3.75%
Intermediate Capital Group (ICP) 508.50p +3.56%
Fidelity China Special Situations (FCSS) 144.40p +2.92%
Supergroup (SGP) 972.50p +2.86%
Bank of Georgia Holdings (BGEO) 1,732.00p +2.73%
Alent (ALNT) 376.80p +2.70%
Howden Joinery Group (HWDN) 449.60p +2.39%
FTSE 250 - Fallers
AL Noor Hospitals Group (ANH) 1,025.00p -4.92%
Nostrum Oil & Gas (NOG) 565.00p -4.24%
Hunting (HTG) 502.50p -3.37%
Telecom Plus (TEP) 922.00p -3.15%
Serco Group (SRP) 163.00p -3.03%
Lonmin (LMI) 118.60p -3.03%
PayPoint (PAY) 832.00p -2.97%
Riverstone Energy Limited (RSE) 1,053.00p -2.95%
Poundland Group (PLND) 374.90p -2.88%
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | European close: Equity markets post modest gains on dovish central bank rhetoric Equity markets in Europe were buoyed Monday by dovish central bank rhetoric together with some cautious optimism surrounding Greece's ability to secure funding in the coming days.
Shares markets in Europe finished higher with the UK FTSE100 up 0.5%, the German DAX up by 1.8% and the French CAC-40 gaining 1%. Italy's FTSE MIB rose 1.1% and Spain's IBEX-35 added 1%.
The pan-European Stoxx 600 index advanced 1%. Financials and insurers rose sharply with the Stoxx 600 indices for both sectors up 1.6% and 1.3%, respectively.
A weaker european currency, down 0.8% against the US dollar, kicked-up exporting stocks in the Eurozone, particularly German car-makers, causing the Stoxx 600 autos and parts index to rally 2%.
Friday's remarks from Fed chair Janet Yellen over rate hikes being gradual and not sharp, together with China's central bank on Monday hinting at imminent support through policy easing, propelled global markets with Asia kicking off the upbeat tone.
That filtered into the European session followed by US markets which adding modest gains late afternoon in Europe. The Dow Jones Industrial Average was last seen up 1.5% while the S&P500 rose 1%.
Attention was also on Greece as lawmakers from the country presented a list of reforms on Friday in order to secure fresh funding from EU creditors.
Though a deal has not been announced, markets are hoping that Greece's creditors can avert a potential credit default by the country before it runs out of cash.
"We stress that Greece exiting the euro area is not our base case scenario. Nevertheless it is a tail risk for market participants," said UBS.
In commodities, gold prices fell 1.1% to $1184.6 per troy ounce while silver dropped 1.65% per ounce to trade at $16.64. In energy, Brent crude futures were off 0.9% at $55.57 per barrel while Nymex crude futures gained 0.5% at $48.33 per barrel.
In terms of economic data, the Germany's EU-harmonised inflation rate to rise 0.1% in March compared with a year earlier, as prices increased 0.5% month on month, according to the German Federal Statistics Office. Germany's rate of consumer price inflation reached a record low of -0.5% in January.
Italian borrowing costs sunk to a record low at auctions on Monday, as the country sold €2.5bn of bonds due in 2025, yielding 1.34%, two basis points below the rate received at an auction in February.
Before Italy's auction, the country's business confidence index jumped to 103.7 for March from a revised 100.5 the previous month, exceeding economists' expectations of a reading of 99.6.
Elsewhere, Spanish consumer prices slid 0.7% in March from a year earlier, ahead of market expectations for a 0.9% decline and an improvement from a 1.2% fall in February, according to data released on Monday.
In company news, French oil major Total has sold its stake in an onshore oilfield in Nigeria for $569m, the company confirmed on Monday.
Eurocement Holding, the second-largest shareholder in cement company Holcim, plans to vote against the Swiss company's union with Lafarge unless the financial terms of the deal are altered, according to press reporting citing a person familiar with situation. |
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| | US Market Report | | US stocks rallied on Monday, with investors buoyed by comments from People’s Bank Of China governor Zhou Xiaochuan and Federal Reserve chairwoman Janet Yellen. Just after 14:54 the Dow Jones Industrial Average was up 250 points, while the S&P 500 and the Nasdaq gained five and 28 points, respectively. Asian markets rallied overnight on hints by the Chinese central bank of more stimulus measures, with Xiaochuan opening the door to further monetary loosening as deflation risks grow. Xiaochuan’s words followed dovish comments from Yellen on Friday, who once again stressed the need for a slow implementation of rate hikes. The Fed chairwoman said the central bank would be “uncomfortable” hiking rates if consumer prices, wage growth and other measures of underlying inflation were to weaken. “Wage growth, spending and inflation are the bigger concern of the Fed right now and the core personal consumption expenditure price index is the Fed’s preferred inflation measure,” said Craig Erlam, senior market analyst at Oanda. Personal incomes in the US grew slightly more quickly than expected last month, but gains in spending failed to meet analysts’ forecasts. Consumer expenditures grew by 0.1% month-on-month, according to the Bureau of Economic Analysis, while incomes grew 0.4% month-on-month in February, in line with analysts’ expectations. In company news, Auspex Pharmaceuticals jumped 41.7% after it had agreed to a $3.2bn takeover offer from sector peer Teva Pharmaceutical Industries. Pharmacy-benefit manager group Catamaran Corp surged 24.6% after confirming it had accepted a takeover bid, worth approximately $12.8bn, from UnitedHealth Group, which rose over 4.3%. Shell eggs manufacturer and distributor Cal-Maine Foods slid 0.18% despite reporting that sales climbed 11% in the third quarter on the back of increased demand over the holiday period. Oracle shares received a boost out of analysts from RBC to outperform from sector perform. After tumbling on Friday, oil prices were largely stable, with West Texas Intermediate edging forward 0.25% to $48.99 a barrel, while Brent crude slid 0.05% to $56.38 a barrel. The dollar rose over 0.50% against the yen and the pound and gained 0.29% against the euro, while gold futures slid 1.49% to $1,182.80. |
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| | Broker Tips | | Broker tips: M&S, Carnival, UK grocers Societe Generale has lifted its target for Marks & Spencer from 492p to 524p but maintained a 'hold' rating on the high street retailer, saying it sees little upside from current levels.
Ahead of trading update on Thursday, the broker said it no longer reckons M&S will produce a meaningful recovery in general merchandise like-for-like sales in the foreseeable future.
Numis Securities has raised its stance on Carnival Corporation from 'hold' to 'add' and its target from 2,950p to 3,600p, saying the outlook is improving for the cruise industry.
The broker said that Carnvial's first-quarter results last week "provided clear evidence of improving industry fundamentals, we believe, demonstrating strong like-for-like (constant currency) net revenue yield growth".
Structural headwinds are persisting for UK grocers, with low inflation and falling calorie intake presenting a problem across the supermarket industry, according to Goldman Sachs.
The bank downgraded its recommendation on Morrisons to 'neutral' on Monday, saying the stock has now reached its target. It reiterated 'sell' ratings on rivals Sainsbury and Tesco. | | |
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