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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 open: Stocks rise ahead of UK Budget, Fed decision London stocks advanced on Wednesday morning, rising for a third straight day, as investors took a bullish approach ahead of the hotly-anticipated UK Budget and Federal Reserve policy decision. The FTSE 100 was trading up 0.3% at 6,859.81 in early deals.
The market reaction to chancellor George Osborne's Budget statement, due at 12:30, is expected to be only small, though it will give a chance to see where the Conservatives are placed ahead of the General Election in May.
Nevertheless, investors will be watching oil stocks on speculation that tax breaks for North Sea producers may be announced, while housebuilders will likely be looking out for potential stimulus measures in the housing market.
As for the Federal Open Market Committee meeting (18:00), no change is expected in the policy stance though forward guidance will be in focus given recent speculation that policymakers will drop the term 'patient' when referring to the first rate hike.
"We expect the key sentence that the Fed can afford to be 'patient' in normalising monetary policy to be removed from the statement. This will not signal an imminent hike but underscore that a rate hike is now on the agenda but timing will be data dependent," said analysts at Danske Bank.
Also on the agenda for Wednesday's session will be data on UK employment, Bank of England minutes, US mortgage applications and US crude inventories.
StanChart boosted by upgrade
Shares in emerging markets-focused bank Standard Chartered surged after Barclays upgraded its rating on the stock from 'equal weight' to 'overweight' and lifted its target from 1,000p to 1,150p. Analysts said that the appointment of a new chief executive "mark[s] a turning point".
At the same time, Barclays cut its recommendation on HSBC from 'overweight' to equal weight' due to "a combination of higher capital requirements, macro headwinds and the need for further significant restructuring". HSBC shares were trading broadly flat early on.
Housebuilders were making decent gains, such as Taylor Wimpey, Barratt Developments and Persimmon. "Housebuilding shares could also get a boost if we get investment initiatives to build more properties, given the pressure on housing," according to analyst Michael Hewson from CMC Markets.
Pharmaceutical giant AstraZeneca gained after reporting that Phase III studies into investigative drug PT003 for chronic lung disease had delivered positive results.
Oil and gas outfit BG Group fell despite the announcement of first oil from its part-owned Knarr field in the North Sea offshore Norway. BG, along with a number of energy stocks such as Tullow Oil and Centrica, were pulling back after strong gains on Tuesday.
Mining stocks were also retreating after solid gains, with Fresnillo, Antofagasta, Rio Tinto, Anglo American and Glencore all in the red. Antofagasta in particular was feeling the effects of a downgrade by Beaufort Securities to 'hold'.
Smiths Group fell after first-half underlying profits at the engineering company stumbled 3% on the hurdles of foreign currency and the lower oil price. |
| | Market Movers
techMARK 3,225.77 +0.26%
FTSE 100 6,859.81 +0.32%
FTSE 250 17,250.30 +0.28%
FTSE 100 - Risers
Standard Chartered (STAN) 1,023.50p +6.06%
CRH (CRH) 1,720.00p +1.96%
Marks & Spencer Group (MKS) 513.50p +1.68%
Taylor Wimpey (TW.) 151.30p +1.34%
Travis Perkins (TPK) 1,975.00p +1.28%
Reed Elsevier (REL) 1,161.00p +0.96%
Prudential (PRU) 1,714.00p +0.94%
AstraZeneca (AZN) 4,683.50p +0.94%
Direct Line Insurance Group (DLG) 324.30p +0.87%
Barratt Developments (BDEV) 526.50p +0.86%
FTSE 100 - Fallers
Fresnillo (FRES) 637.50p -3.26%
Weir Group (WEIR) 1,743.00p -2.08%
Tullow Oil (TLW) 292.80p -1.88%
Rio Tinto (RIO) 2,840.00p -1.17%
Randgold Resources Ltd. (RRS) 4,621.00p -1.09%
Anglo American (AAL) 1,060.00p -1.07%
Antofagasta (ANTO) 680.00p -1.02%
Glencore (GLEN) 280.15p -0.78%
Burberry Group (BRBY) 1,856.00p -0.75%
Lloyds Banking Group (LLOY) 78.97p -0.62%
FTSE 250 - Risers
Euromoney Institutional Investor (ERM) 1,053.00p +2.93%
Allied Minds (ALM) 647.00p +2.21%
Savills (SVS) 758.00p +2.16%
Morgan Advanced Materials (MGAM) 338.80p +2.02%
Spire Healthcare Group (SPI) 361.60p +1.95%
Synthomer (SYNT) 296.50p +1.75%
NMC Health (NMC) 654.50p +1.71%
Countrywide (CWD) 529.50p +1.63%
IP Group (IPO) 236.00p +1.59%
Essentra (ESNT) 1,012.00p +1.56%
FTSE 250 - Fallers
Afren (AFR) 2.92p -9.06%
Just Eat (JE.) 347.70p -4.74%
Vedanta Resources (VED) 425.20p -3.93%
Premier Oil (PMO) 136.30p -3.26%
esure Group (ESUR) 219.40p -3.05%
Saga (SAGA) 173.10p -2.70%
Phoenix Group Holdings (DI) (PHNX) 841.50p -1.92%
Cairn Energy (CNE) 151.40p -1.62%
AL Noor Hospitals Group (ANH) 997.00p -1.58% |
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| | UK Event Calendar | | Wednesday 18 March
INTERIMS
Earthport, Smiths Group
QUARTERLY PAYMENT DATE
M Winkworth
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (EU) (10:00)
Crude Oil Inventories (US) (14:30)
FOMC Interest Rate (US) (18:00)
MBA Mortgage Applications (US) (11:00)
FINALS
Accesso Technology Group, Bioquell, Burford Capital , Cape, MirLand Development Corporation, Phoenix Group Holdings (DI), Stilo International
ANNUAL REPORT
SEGRO
EGMS
Bankmuscat (S.A.O.G) GDR (Reg S)
AGMS
Domino Printing Sciences, The Commercial Bank of Qatar (Q.S.C) GDR (Reg S)
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Minutes (09:30)
Chancellor Budget Statement (12:30)
Claimant Count Rate (09:30)
Unemployment Rate (09:30)
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks little changed before FOMC policy announcement European stocks were little changed ahead of the Federal Reserve's latest policy decision. The Federal Reserve is projected to keep interest rates unchanged when it announces its policy at 18:00 GMT.
However, the policy meeting could see the central bank drop the term 'patient' from its dovish rhetoric and move toward hinting on the timing of the first rate hike.
All eyes will be on Fed Chair Janet Yellen when she speak afterwards at a press conference at 18:30 GMT.
Philip Marey, senior US strategist at Rabobank, said given the recent better-than-expected labour market data, the FOMC is likely to open the door to a June rate hike. "In fact, the Fed seems intent on preparing the markets for the first rate hike," he said.
In the UK, the Bank of England releases its meeting minutes at 09:30 GMT, shedding further light behind the central bank's decision to keep policy unchanged.
UK labour market data will be released at the same time including jobless claims, the unemployment rate, weekly earnings and employment change.
At 12:30 GMT Chancellor George Osborne delivers his UK Budget speech, which will be closely examined with the 7 May general elections just around the corner.
While expectations of the Budget vary wildly, it is most likely to contain content to please voters. The Chancellor has promised to balance the books by 2017/18, which will require £30bn in either spending cuts or tax rises in the first years of the next parliament.
In corporate news, Standard Chartered advanced after Barclays upgraded the shares to 'overweight', citing the positives of a new chief executive officer.
Inditex SA rallied as the clothing retailer posted annual profit in line with analysts' estimates and said sales rose 13% at the start of the first quarter.
SBM Offshore NV gained after agreeing to collaborate with Brazilian authorities investigating companies for corrupt contracts with state-run Petroleo Brasileiro SA.
The euro rose 0.11% to $1.0609.
Brent crude fell 0.28% to $53.36 per barrel, according to the ICE. |
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| | US Market Report | | US close: Dow drops over 120 points as investors remain jittery ahead of Fed's decision US stocks declined on Tuesday, as investors braced themselves for a statement from the Federal Reserve which would determine the central bank's policy on interest rates. The Dow Jones Industrial Average closed down 128 points, while the S&P 500 fell seven points and the Nasdaq gained eight points.
On Tuesday, investors were cautious as the Federal Open Market Committee two-day meeting on Tuesday got under way, with many expecting the central bank to signal it intends to hike interest rates as early as June.
"The moves that we have seen so far in both pound/dollar and euro/dollar would suggest that currency markets are factoring in an interest rate rise sometime in early summer," said IG analyst Alastair McCaig.
Construction on new US homes fell 17% in February, as severe winter weather hit the country's Midwest and Northeast regions.
In February, housing starts dropped to an annual rate of 897,000 from a revised 1.08m in January, against expectations of a 1.04m reading.
Meanwhile, permits for new construction, a key indicator of future housing demand, rose to an annual rate of 1.09m from an upwardly revised reading of 1.06m in the previous month.
In company news, American Airlines Group jumped 6.91% after Standard & Poor's announced late on Monday that the airline will be included in the S&P 500 index.
Discount retailer Burlington climbed 2.11% after its fourth quarter profit and revenue beat Wall Street's expectations, while outdoor sports gear group Black Diamond soared 36.74% after being upgraded from 'hold' to 'buy' by Stifel Nicolaus.
Apple rose 1.67% after sources quoted by The Wall Street Journal said the tech giant was in talks to launch an online television service based on a bundle of TV networks.
Going the other way, alternative energy provider PlugPower dropped 5.09% after its fourth quarter sales missed estimates, while the loss for the period widened more than expected.
Gold futures fell 0.44% to $1,148.10, while the dollar climbed 0.57% against the pound but relinquished 0.16% against the euro and was unchanged the yen.
Oil prices continued to slide, with Brent crude shedding 0.8% to $53.50 a barrel, while West Texas Intermediate crude lost 1.73% to $43.13 a barrel.
However, analysts at Capital Economics insisted the prices of crude will rebound between the end of the year. "We continue to expect the prices of WTI and Brent to converge again later this year at a higher level," they said in a note. "The further that prices fall in the near term, the bigger the supply and demand responses are likely to be, and the stronger the eventual recovery."
S&P 500 - Risers
Peabody Energy Corp. (BTU) $5.79 +5.66%
PVH Corp. (PVH) $98.29 +4.18%
Regeneron Pharmaceuticals Inc. (REGN) $467.80 +3.55%
Alexion Pharmaceuticals Inc. (ALXN) $184.12 +3.15%
Moody's Corp. (MCO) $100.69 +3.03%
Fastenal Co. (FAST) $42.59 +2.99%
Mylan Inc. (MYL) $62.72 +2.37%
NRG Energy Inc. (NRG) $24.33 +2.31%
Nabors Industries Ltd. (NBR) $12.17 +2.10%
Under Armour Inc. Class A (UA) $78.81 +1.97%
S&P 500 - Fallers
Macerich Co (MAC) $91.60 -3.47%
E.I. du Pont de Nemours and Co. (DD) $74.68 -3.10%
LyondellBasell Industries (LYB) $82.66 -3.06%
Freeport-McMoRan Inc (FCX) $17.42 -3.06%
St Jude Medical Inc. (STJ) $65.45 -2.98%
Micron Technology Inc. (MU) $27.66 -2.96%
Electronic Arts Inc. (EA) $54.17 -2.95%
Dover Corp. (DOV) $69.36 -2.82%
Leucadia National Corp. (LUK) $23.14 -2.69%
National Oilwell Varco Inc. (NOV) $47.46 -2.49%
Dow Jones I.A - Risers
Boeing Co. (BA) $154.51 +0.55%
Coca-Cola Co. (KO) $40.51 +0.55%
Microsoft Corp. (MSFT) $41.69 +0.32%
Nike Inc. (NKE) $96.54 +0.10%
Chevron Corp. (CVX) $103.17 +0.04%
Dow Jones I.A - Fallers
E.I. du Pont de Nemours and Co. (DD) $74.68 -3.10%
Caterpillar Inc. (CAT) $78.45 -1.90%
Visa Inc. (V) $264.50 -1.68%
3M Co. (MMM) $164.23 -1.19%
Johnson & Johnson (JNJ) $99.89 -1.16%
Merck & Co. Inc. (MRK) $56.47 -1.14%
McDonald's Corp. (MCD) $96.17 -1.01%
Procter & Gamble Co. (PG) $82.83 -0.87%
Wal-Mart Stores Inc. (WMT) $82.62 -0.80%
Exxon Mobil Corp. (XOM) $84.08 -0.80%
Nasdaq 100 - Risers
Regeneron Pharmaceuticals Inc. (REGN) $467.80 +3.55%
Alexion Pharmaceuticals Inc. (ALXN) $184.12 +3.15%
Fastenal Co. (FAST) $42.59 +2.99%
Mylan Inc. (MYL) $62.72 +2.37%
Vimpelcom Ltd Ads (VIP) $5.35 +1.71%
Adobe Systems Inc. (ADBE) $79.66 +1.70%
Apple Inc. (AAPL) $127.04 +1.67%
Facebook Inc. (FB) $79.36 +1.66%
Nvidia Corp. (NVDA) $23.24 +1.18%
Biogen Idec Inc. (BIIB) $426.12 +1.14%
Nasdaq 100 - Fallers
Micron Technology Inc. (MU) $27.66 -2.96%
Mattel Inc. (MAT) $24.44 -2.42%
Seagate Technology Plc (STX) $53.67 -2.14%
Western Digital Corp. (WDC) $96.62 -1.61%
Discovery Communications Inc. Class A (DISCA) $32.11 -1.52%
Applied Materials Inc. (AMAT) $24.20 -1.49%
Twenty-First Century Fox Inc Class A (FOXA) $33.87 -1.40%
Charter Communications Inc. (CHTR) $188.73 -1.38%
Whole Foods Market Inc. (WFM) $53.92 -1.35% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: Netanyahu wins, EU sanctions, New pound coin Right-wing prime minister Benjamin Netanyahu just about won the Israeli general election after votes were counted early on Wednesday but he requires small-party support to form a ruling coalition, The Wall Street Journal reported. The EU sanctions package could dissipate as Europe is in such disagreement over how to punish Russian president Putin's aggression in Ukraine, according to The Times.
A new 12-sided British pound coin will be launched in 2017 as one of the most secure coins in the world against counterfeiting, chancellor George Osborne told The Guardian.
Facebook users will soon be able to transfer money to their friends through the messenger app by uploading Visa or MasterCard debit card details, according to the Financial Times.
Chancellor George Osborne has planned to build the world's first tidal lagoon to generate green energy as part of his new budget, The Guardian said.
Google has filed a patent application for a wearable device that destroys cancer cells in the blood, wrote The Telegraph. | | |
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