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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 erase losses as ITV, StanChart and IAG gain After a weak start, UK markets managed to push into positive territory by Wednesday's close as decent gains from ITV, Standard Chartered and IAG offset some heavy falls in the mining sector.
The FTSE 100 snapped three days of losses to finish up 0.44% at 6,919.24.
Economic data from across the globe came in mixed on Wednesday compared with consensus expectations, but broadly showed that service sectors across the world were growing at a solid pace in February.
Purchasing managers' indices released during the session indicated that non-manufacturing activity growth accelerated last month in China, the Eurozone and US, but tailed off slightly in the UK.
Meanwhile, while the ADP employment report showed that US private-sector job growth eased in February, there were positive revisions to January and every month of the fourth quarter, "underscoring the strength of the US labour market", said analyst Jasper Lawler from CMC Markets.
Investors were also looking ahead to the European Central Bank meeting on Thursday, where policymakers will announce details of their €1trn quantitative easing programme designed to boost growth and lift the Eurozone out of deflation.
Retail data from the region released on Wednesday showed that lower energy costs were having a positive impact on consumers' wallets, with sales jumping 1.1% compared with the 0.2% increase expected.
ITV, StanChart and IAG provide a boost
ITV surged 5.7% after the strongest advertising performance in five years helped it beat forecasts for 2014, as it hiked its annual dividend 34% and proposed an extra payout for shareholders. Numis Securities upped its rating on the broadcaster and producer from 'add' to 'buy'.
Emerging markets-focused lender Standard Chartered was 5.1% higher despite announcing that pre-tax profits in 2014 dropped 25% to $5.2bn. Results missed analysts' forecasts by a long way, though the market gave the report a warm welcome as the bank eased concerns by maintaining its dividend and not signalling any intention to raise capital.
Meanwhile, BA owner IAG gained 2.4% after saying that passenger traffic increased at a year-on-year rate of 5.5% in February, in line with the previous month.
Heading the other way was Mexican precious metals producer Fresnillo which dropped 8.5% after the company said profits plunged 40% to $251.1m in 2014 as record silver production was offset by lower prices and higher production costs.
Glencore also declined with traders linking the fall to a placing of 53.7m shares by Deutsche Bank priced at 282.45p each, compared with Tuesday's close of 291.2p. Other miners such as Anglo American, Antofagasta and BHP Billiton were also weaker.
Annual results from insurance, savings and investment group Legal & General received a frosty reception from the market as pre-tax profits rose a less-than-expected 9% to £922m.
Afren's stock tumbled 27% after the struggling oil group said it will default on $15m of interest payments and that shareholders could by "substantially" diluted as part of a possible restructuring.
Meanwhile, British baker Greggs raced ahead after posting 50% profit growth for last year and planning a cash return to shareholders.
Market Movers
techMARK 3,159.97 +0.68%
FTSE 100 6,919.24 +0.44%
FTSE 250 17,135.65 -0.06% |
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FTSE 100 - Risers
ITV (ITV) 234.50p +5.73%
Standard Chartered (STAN) 1,024.00p +5.11%
Barclays (BARC) 262.40p +3.19%
International Consolidated Airlines Group SA (CDI) (IAG) 569.50p +2.43%
Reed Elsevier (REL) 1,130.00p +2.36%
easyJet (EZJ) 1,738.00p +2.18%
Shire Plc (SHP) 5,250.00p +1.74%
Reckitt Benckiser Group (RB.) 5,850.00p +1.65%
Travis Perkins (TPK) 1,975.00p +1.59%
RSA Insurance Group (RSA) 426.60p +1.52%
FTSE 100 - Fallers
Fresnillo (FRES) 724.50p -8.46%
Randgold Resources Ltd. (RRS) 4,786.00p -4.22%
Anglo American (AAL) 1,167.00p -3.11%
Legal & General Group (LGEN) 270.30p -2.84%
Hargreaves Lansdown (HL.) 1,138.00p -2.82%
Glencore (GLEN) 283.25p -2.73%
Rio Tinto (RIO) 3,073.50p -1.96%
Antofagasta (ANTO) 740.50p -1.92%
Babcock International Group (BAB) 967.00p -1.63%
BHP Billiton (BLT) 1,573.50p -1.56%
FTSE 250 - Risers
Greggs (GRG) 963.00p +10.63%
Moneysupermarket.com Group (MONY) 259.00p +6.41%
Diploma (DPLM) 805.00p +5.16%
Tullett Prebon (TLPR) 352.00p +5.07%
Fisher (James) & Sons (FSJ) 1,285.00p +2.80%
CLS Holdings (CLI) 1,725.00p +2.68%
Domino's Pizza Group (DOM) 751.50p +2.52%
Hikma Pharmaceuticals (HIK) 2,452.00p +2.51%
Electrocomponents (ECM) 243.30p +2.44%
Rightmove (RMV) 3,041.00p +2.43%
FTSE 250 - Fallers
Afren (AFR) 6.60p -27.43%
Rotork (ROR) 2,465.00p -5.19%
Vedanta Resources (VED) 576.00p -4.16%
Laird (LRD) 338.00p -4.11%
Melrose Industries (MRO) 284.50p -4.08%
Allied Minds (ALM) 623.50p -4.00%
Soco International (SIA) 261.60p -3.96%
Centamin (DI) (CEY) 60.60p -3.81%
Premier Oil (PMO) 150.30p -3.72% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks rally after as Eurozone retail sales figures impress European stocks rallied as investors weighed strong data and a weaker euro ahead of the European Central Bank's Thursday policy meeting. Eurozone retail sales increased 3.7% in January, more than the 2.3% gain that was predicted and following a 3.1% rise a month earlier.
"Eurozone consumers seem to take full benefit of the oil price-induced purchasing power gains and increase their spending accordingly," said Evelyn Herrmann, European economist at Berenberg.
Markit's purchasing managers' index (PMI) on the euro-area service sector was revised down to 53.7 in February from an earlier estimate of 53.9.The composite PMI, which includes services and manufacturing activity, was also revised to 53.3 in February from 53.5, but still showed business activity at a seven-month high. A reading above 50 indicates expansion while a level below signals a contraction.
The Eurozone data comes a day ahead of the European Central Bank's policy announcement and press conference on Thursday when the monetary authority will reveal details of its €1.1trn quantitative easing programme.
The euro currency met with levels it hasn't seen since 2003 as market participants geared up for the ECB's meeting. The euro was trading 0.8% lower against the US dollar at $1.1088, breaking below its 11-year low of $1.1098 that it reached in September 2003.
In China, HSBC's PMI for services climbed to 52 last month from 51.8 in January.
The UK's services PMI fell to 56.7 from 57.2, missing estimates of 57.5.
Stateside, ISM's non-manufacturing composite index rose to 56.9 in February, better than the forecast of 56.5 and slightly higher than the previous month's 56.7.
According to data from the ADP National Employment Report, private sector employment in the US increased by 212,000, undershooting economist expectations for 219,000 jobs. The reading was also slightly below that of January's initial print of 212,000 jobs, however ADP revised that figure to 250,000.
Brent crude fell 2.3% to $59.62 per barrel at close of trading, according to the ICE, as a US government report showed that crude supplies rose by more than 10m barrels in the latest week. Concerns of oversupply escalated after the US Energy Information Administration early Wednesday reported that crude inventories climbed 10.3m barrels for the week ended 27 February.
StanChar stocks jump
Standard Chartered gained after saying capital will rise enough to leave the dividend unchanged despite a decline in annual profit.
ING Groep NV advanced after the Dutch bank said it will sell its remaining stake in Voya Financial Inc.
Henkel AG slumped as the maker of Persil detergent reported fourth-quarter profit that fell short of analysts' estimates.
Subsea 7 SA dropped after the oilfield-services provider posted fourth-quarter revenue that missed the consensus forecast.
Fresnillo slid after reporting full-year profit and issuing a final dividend that trailed expectations.
Glencore declined on the heels of market chatter regarding a placing of 53m shares priced at 282.45p. |
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| | US Market Report | | US Open: Markets lower as ADP job report disappoints, oil prices gain US stock markets opened lower on Wednesday on disappointing job and non-farm payrolls data, while oil stocks gained on data expected to show a slowing of stockpile growth.
NASDAQ led declines, falling 0.56%, while Dow Jones and S&P fell by 0.47% and 0.45% respectively.
The US economy created 212,000 jobs in February, representing a slowdown in growth from January. According to data from the ADP National Employment Report, private sector employment in the US increased by 212,000, undershooting economist expectations for 219,000 jobs.
The ADP report is widely seen as a precursor to Friday's non-farm payrolls report which is expected to show the US economy generated 230,000 jobs.
Paul Dales, Senior US Economist at Capital Economics said: "The harsh weather in recent weeks therefore means there is a chance that the official payrolls figure will be lower than the ADP reading. But [...] we think this risk is small. We're sticking with our forecast that official payrolls rose by a healthy 230,000 last month."
Meanwhile, ISM Manufacturing data also fell just shy of the expected reading of 53, at 52.9 in February, falling from 53.5 the previous month.
US oil prices gained ahead of data which if forecast to show that stockpile growth is cooling. "If the Energy Information Administration (EIA) data is in sync with the API report, the recovery-rally followers will likely embrace a smaller-than-expected build in crude oil," said Dominick Chirichella, analyst at the Energy Management Institute.
US crude stocks have risen for seven consecutive weeks, by at least 4m barrels each week, according to EIA data.
Restaurant chain Bob Evans Farms plummeted 18% after reported earnings missed expectations and the company confirmed it would not pursue a sale of BEF Foods.
Cloud-software company Veeva Systems saw shares drop 13% on underwhelming fourth quarter earnings.
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| | Broker Tips | | Broker tips: StanChart, Barclays, ITV, Rightmove Standard Chartered's annual results missed analysts' forecasts by a long way on Wednesday, though the market gave a warm welcome to the 2014 report with Shore Capital choosing to keep its 'buy' recommendation. Analyst Gary Greenwood said: "The introduction of more aggressive action on costs and capital should be welcomed by the market, while the fact that the company has been able to maintain the dividend and is not signalling any intention to raise equity are also positives for the investment case."
UBS has trimmed its target for Barclays from 305p to 295p following the bank's results this week, but kept a 'buy' stance on the stock telling investors to expect a continued re-rating with a currently "unchallenging" valuation.
While fourth-quarter results were mixed, UBS said its medium-term expectations remain intact. "With around a third of group capital currently consumed by an under-earning Corporate and Investment Banking (CIB), and a third of capital within the loss-making non-core: we see material medium-term upside as management reposition the business towards its low-volatility, high profitability core."
ITV, which impressed City analysts with its annual results on Wednesday, received a further boost from Numis Securities as the broker upped its rating on the broadcaster and producer from 'add' to 'buy'.
The broker said that following recent share-price weakness it has returned to a more positive stance and upgraded its target from 260p to 275p.
Online real estate portal Rightmove has had its rating lifted by Citigroup to 'neutral' from 'sell', after the bank accepted it was a little too bearish on the company. | | |
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