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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: Footsie edges higher after Fed decision The Footsie began the morning higher as traders digested a surprisingly dovish set of macroeconomic projections from the US Federal Reserve overnight which set off sharp moves in all asset classes. At 09:15 the top flight index was 16 points higher at 6,961.30.
As expected, the US central bank omitted any reference to being "patient" when starting to tighten interest rates.
However, the 17 members of the Federal Open Market Committee nearly halved their median projection for the level of the Fed funds rate at year-end 2015 to 0.625%. They also lowered their estimates for the following two years despite having reduced their forecasts for inflation and unemployment.
The communiqué from the Fed and follow-up conference from Chair Janet Yellen saw the euro/dollar register its large intraday gain since 2000, no less. Prompt month Brent crude futures were catapulted 5% higher on the news. The main Wall Street market gauges all closed higher by approximately a full percentage point.
Acting as a backdrop, on Thursday investors were expected to focus on the summit of European Union heads of government and the news-flow surrounding the negotiations with Greece.
To take note of, against analysts' predictions Norway's central bank maintained its deposit rate at 1.25%, instead of reducing it by 25 basis points.
That triggered a sharp appreciation in the country's currency, the Krona, versus the euro, rising by 1.69% to 8.72.
Next drops after full-year profits
UK clothing retailer Next grew its underlying pre-tax profit by 12.5% last year as overall sales rose by 7.2%. The company said its share buyback scheme meant that underlying EPS grew by 14.7% and dividends for the full year will increase by 16.3%, to 150p.
Auto Trader Group, the UK car classified company on Thursday priced 590m shares at 235p/share in its initial public offering in the London market. The company is raising £437m of net proceeds in the offer with its private equity owner, Apax expected to raise around £926.2m out of the flotation.
Chip designer ARM Holdings's market share in servers may reach 20% by 2020, versus less than 1% at present, the company has reportedly said. The London-listed outfit was scheduled to make a presentation at today's Bank of America Merrill Lynch Technology & Beyond Conference, in Taiwan.
Electronics components distributor Premier Farnell reported adjusted profits before tax down 3% to reach £74m in 2014 but maintained its full-year dividend payout at 10.4p. That came on the back of a 0.8% fall in full-year revenues to £960.1m. However, the company's operating margins declined by less than forecast by analysts, slipping by 40 basis points, to 9.2%. The analyst consensus was for margins of 9%.
AstraZeneca has signed an agreement with Japanese-headquartered company Daiichi Sankyo to jointly commercialise a new drug called Movantik, an oral treatment for opioid-induced constipation in adults with chronic non-cancer pain. No longer labelled a controlled substance by the US Drug Enforcement Administration, its launch has been scheduled to take place early in April 2015. |
| | Market Movers
techMARK 3,246.45 -0.09%
FTSE 100 6,958.03 +0.18%
FTSE 250 17,431.91 +0.39%
FTSE 100 - Risers
Fresnillo (FRES) 679.00p +5.43%
Antofagasta (ANTO) 700.50p +2.79%
BHP Billiton (BLT) 1,496.00p +2.61%
Morrison (Wm) Supermarkets (MRW) 207.60p +2.22%
Tullow Oil (TLW) 309.50p +2.21%
Intu Properties (INTU) 360.00p +2.04%
Randgold Resources Ltd. (RRS) 4,767.00p +1.97%
British Land Co (BLND) 865.50p +1.94%
Old Mutual (OML) 233.70p +1.83%
Aviva (AV.) 565.00p +1.71%
FTSE 100 - Fallers
Next (NXT) 7,360.00p -3.41%
British American Tobacco (BATS) 3,698.50p -2.57%
Meggitt (MGGT) 582.00p -0.94%
Babcock International Group (BAB) 974.00p -0.87%
TUI AG Reg Shs (DI) (TUI) 1,198.00p -0.83%
Dixons Carphone (DC.) 429.40p -0.69%
Unilever (ULVR) 2,908.00p -0.62%
Marks & Spencer Group (MKS) 512.50p -0.58%
Hargreaves Lansdown (HL.) 1,199.00p -0.58%
Pearson (PSON) 1,494.00p -0.53%
FTSE 250 - Risers
Acacia Mining (ACA) 249.00p +6.00%
Premier Oil (PMO) 143.00p +5.30%
Vedanta Resources (VED) 462.70p +5.18%
Soco International (SIA) 155.00p +4.80%
Centamin (DI) (CEY) 53.85p +4.36%
Supergroup (SGP) 911.50p +4.35%
Polymetal International (POLY) 533.00p +3.19%
Hunting (HTG) 480.30p +2.96%
Crest Nicholson Holdings (CRST) 437.00p +2.78%
Ophir Energy (OPHR) 128.00p +2.56%
FTSE 250 - Fallers
Brit (BRIT) 278.30p -8.66%
Lancashire Holdings Limited (LRE) 635.00p -6.55%
Jupiter Fund Management (JUP) 408.40p -4.15%
Hiscox Ltd (CDI) (HSX) 824.50p -2.77%
Ted Baker (TED) 2,746.00p -2.52%
Ladbrokes (LAD) 110.70p -2.47%
Hellermanntyton Group (HTY) 346.20p -1.93%
Jimmy Choo (CHOO) 172.00p -1.71%
Millennium & Copthorne Hotels (MLC) 576.50p -1.54%
Serco Group (SRP) 172.50p -1.20%
FTSE TechMARK - Risers
Torotrak (TRK) 10.73p +4.68%
RM (RM.) 147.50p +2.16%
Kofax Limited (DI) (KFX) 504.50p +2.13%
Spirent Communications (SPT) 86.75p +2.06%
SDL (SDL) 434.75p +1.10%
Vectura Group (VEC) 145.00p +1.05%
Innovation Group (TIG) 28.75p +0.88%
Consort Medical (CSRT) 865.00p +0.87%
Ricardo (RCDO) 769.50p +0.65%
NCC Group (NCC) 227.25p +0.55%
FTSE TechMARK - Fallers
Oxford Biomedica (OXB) 11.25p -6.25%
Dialight (DIA) 760.00p -2.31%
Microgen (MCGN) 121.00p -0.94%
Anite (AIE) 87.50p -0.57%
CML Microsystems (CML) 374.00p -0.27%
E2V Technologies (E2V) 197.00p -0.25% |
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| | UK Event Calendar | | Thursday 19 March
INTERIM EX-DIVIDEND DATE
Abcam, AdEPT Telecom, Brooks Macdonald Group, Close Brothers Group, Coral Products, Foresight Solar VCT, Foresight Solar VCT C, Galliford Try, Livermore Investments Group Ltd., London Finance & Investment Group, NWF Group, Ricardo, Trifast, Waterman Group
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (US) (12:30)
Continuing Claims (US) (12:30)
Current Account (US) (12:30)
ECB Report (EU) (09:00)
Initial Jobless Claims (US) (12:30)
Leading Indicators (US) (14:00)
Philadelphia Fed Index (US) (14:00)
Q4
X5 Retail Group NV GDR (Reg S)
FINALS
Alpha Bank GDR (Reg S) USD, Arbuthnot Banking Group, BrainJuicer Group, Cello Group, EMIS Group, Jimmy Choo , Lamprell, Next, O'Key Group GDR (Reg S) (WI), OJSC Magnitogorsk Iron & Steel Works GDR (Reg S), Ophir Energy, Plaza Centers NV, Premier Farnell, Savills, Secure Trust Bank, Sopheon , Ted Baker, X5 Retail Group NV GDR (Reg S), Xaar
ANNUAL REPORT
New World Resources A Shares, X5 Retail Group NV GDR (Reg S)
SPECIAL EX-DIVIDEND PAYMENT DATE
Brit , Ferrexpo, Jupiter Fund Management , Lancashire Holdings Limited, Plus500 Ltd (DI)
EGMS
CRH
AGMS
Arden Partners, Chemring Group, Crest Nicholson Holdings, LG Electronics Inc GDS (Reg S), Safestore Holdings
FINAL DIVIDEND PAYMENT DATE
Catlin Group Ltd.
FINAL EX-DIVIDEND DATE
Anglo American, Athelney Trust, Baronsmead VCT 5, Brit , British American Tobacco, Dairy Farm International Holdings Ltd. (Bermuda), Dairy Farm International Holdings Ltd. (Jersey), Dairy Farm International Holdings Ltd. (Singapore), Heavitree Brewery, Heavitree Brewery 'A' Shares, Hellermanntyton Group, Hongkong Land Holding Ltd. (Sing.Reg), Jardine Matheson Holdings Ltd (Singapore Reg), Jardine Matheson Holdings Ltd. (Bermuda), Jardine Matheson Holdings Ltd. (Jersey), Jardine Strategic Holdingd Ltd. (Bermuda), Jardine Strategic Holdingd Ltd. (Singapore), Jupiter Fund Management , Lancashire Holdings Limited, Law Debenture Corp., Low & Bonar, Maintel Holdings, Mandarin Oriental International (Bermuda), Mandarin Oriental International (Jersey), Mandarin Oriental International (Singapore), Meggitt, Millennium & Copthorne Hotels, Mithras Inv Trust, New Europe Property Investments, Plus500 Ltd (DI), PPHE Hotel Group Ltd, Telecity Group
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks gain as Fed sees no rush to raise rates European stocks gained as a statement from the Federal Reserve indicated the central bank was in no hurry to raise interest rates. The Fed on late Wednesday removed the term "patience" with regard to interest rates but said it would wait until it saw further improvement in the labour market before raising it from its record low of 0%.
"The hawks will argue that yesterday's move frees their hand to raise rates when it suits, which is true, but it doesn't bring the prospect of a rate rise any closer, and it also obscures the fact that the central bank revised down its growth outlook, and slashed its inflation forecasts for this year, to 0.6% to 0.8%, from 1% to 1.6%," said Michael Hewson, chief market analyst at CMC Markets.
On Thursday's agenda, the European Central Bank publishes its economic bulletin. The ECB has reached its second week of bond-buying, which has given a boost to markets.
Deutsche Bank said the recent rally in European equities has further to go but said investors would be wrong to attribute it solely to the ECB's €1.1trn quantitative easing programme.
Analysts Jan Rabe and Thomas Pearce said QE and the drop in the so-called risk free rate only explains half of the rise in the Stoxx 600 index. They said the strength in the European economy, which has taken investors by surprise, together with a smaller equity risk premium, explains the other half of the increase.
Among stocks, HeidelbergCement AG advanced as the cement maker raised its dividend and cut debt more than analysts expected as it reported a its annual results.
Next slumped as the fashion retailer took a cautious view of the outlook for the 2015-2016 financial year, saying some of its collections are "not as strong as they were at this point last year".
In commodities, Brent crude fell 1.19% to $55.25 per barrel, according to the ICE. Crude moved higher in Wednesday afternoon trade after Chancellor George Osborne revealed tax cuts for the North Sea oil and gas industry in the 2015 UK Budget to help spur investment. |
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| | US Market Report | | US close: Dow rallies over 220 points after Fed drops 'patient' from interest rates statement US stocks rallied on Wednesday after the Federal Reserve dropped the word "patient" from its interest rate guidance, but also said the first rate hike may not take place until September The Dow Jones Industrial Average closed up 227.11 points, while the S&P 500 and the Nasdaq gained 23.85 and 41.75 points respectively.
The Federal Open Market Committee added that an increase in rates at its meeting in April "remains unlikely", an indicator that expectations for tightening should be reined in.
Speaking on Wednesday, Fed chairwoman Janet Yellen claimed that inflation, which has largely fallen due to lower energy prices and a stronger dollar weighing on import prices, will gradually move back to 2%, although probably not before 2017.
"It will be appropriate to raise the target range for the federal funds rate when the committee has seen further improvement in the labour market and is reasonably confident that inflation will move back to its 2% objective over the medium term," she said.
Paul Ashworth, chief US economist at Capital Economics, suggested that the Fed replaced its "patient" pledge with an explicit warning that rates are unlikely to rise in April in order to avoid a Treasury sell-off and a spike in yields.
The FOMC added that median forecast for the level of the central bank's main policy rate at year-end is now 0.625%, in comparison to the 1.125% projected in December.
"The Fed offset the potentially hawkish signal this new guidance might send with much more dovish expectations about the future path of interest rates," said Berenberg' s senior economist Christian Schulz.
"The change suggests that the Fed will step on the monetary brake early, but initially more gently than it previously expected."
Following the FOMC's decision, the dollar plunged 2.85% against the euro, shedding 1.9% and 1.2% against the pound and the yen respectively, while gold futures rose 1.83% to $1,169.20.
Elsewhere, data on Wednesday showed mortgage applications fell 3.9% last week, making it the fourth drop in five.
Applications for new loans to buy homes fell 2% however an indicator of home-owners appetite to refinance existing mortgages had a deeper decline of 5%.
In company news, FedEx fell 1.37% after revenue missed estimates, even though earnings topped analysts' expectations with third-quarter net profit of $580m, up 53% from $378m a year earlier.
Kraft Foods Group lost 1.8% after recalling 242,000 cases of Macaroni & Cheese Dinner boxes, saying specific products could contain small metal pieces.
Sports clothing group Quiksilver jumped 18.82% after reporting a smaller-than-expected loss on Tuesday, while Oracle rose 2.94% after lifting its dividend.
Oil prices swung into positive territory, despite data showing US crude inventories soared to 458.5m barrels in the week ended 13 March, their highest level in 80 years.
West Texas Intermediate jumped 3.66% to $45.11 a barrel, while Brent crude soared 5.59% to $56.68 a barrel.
S&P 500 - Risers
Transocean Ltd. (RIG) $15.25 +8.77%
Denbury Resources Inc. (DNR) $7.95 +7.58%
United States Steel Corp. (X) $23.83 +7.25%
Ensco Plc. (ESV) $21.70 +6.48%
Nabors Industries Ltd. (NBR) $12.94 +6.33%
Newfield Exploration Co (NFX) $33.37 +5.70%
Rowan Companies plc (RDC) $19.11 +5.52%
Noble Energy Inc. (NBL) $48.12 +5.50%
PPL Corp. (PPL) $34.05 +5.45%
Range Resources Corp. (RRC) $49.02 +5.04%
S&P 500 - Fallers
Charles Schwab Corp. (SCHW) $29.77 -3.66%
Adobe Systems Inc. (ADBE) $76.89 -3.48%
NASDAQ OMX Group Inc. (NDAQ) $49.52 -2.79%
Regions Financial Corp. (RF) $9.69 -2.02%
Mattel Inc. (MAT) $23.95 -2.00%
Lam Research Corp. (LRCX) $77.49 -1.89%
E*TRADE Financial Corp. (ETFC) $27.85 -1.85%
Delta Airlines Inc. (DAL) $45.81 -1.80%
eBay Inc. (EBAY) $58.42 -1.80%
Nvidia Corp. (NVDA) $22.87 -1.63%
Dow Jones I.A - Risers
Caterpillar Inc. (CAT) $81.33 +3.67%
Chevron Corp. (CVX) $106.70 +3.42%
Exxon Mobil Corp. (XOM) $86.07 +2.37%
AT&T Inc. (T) $33.59 +2.10%
Merck & Co. Inc. (MRK) $57.65 +2.09%
Unitedhealth Group Inc. (UNH) $119.96 +2.01%
Microsoft Corp. (MSFT) $42.50 +1.93%
International Business Machines Corp. (IBM) $159.81 +1.82%
E.I. du Pont de Nemours and Co. (DD) $76.01 +1.78%
Johnson & Johnson (JNJ) $101.46 +1.57%
Dow Jones I.A - Fallers
Wal-Mart Stores Inc. (WMT) $82.53 -0.11%
Cisco Systems Inc. (CSCO) $28.14 -0.04%
Nasdaq 100 - Risers
Baidu Inc. (BIDU) $210.95 +3.78%
Mylan Inc. (MYL) $64.96 +3.57%
Vimpelcom Ltd Ads (VIP) $5.54 +3.55%
Twenty-First Century Fox Inc Class A (FOXA) $34.92 +3.10%
Tesla Motors Inc (TSLA) $200.71 +3.07%
Seagate Technology Plc (STX) $55.30 +3.05%
Vodafone Group Plc ADS (VOD) $33.54 +2.57%
CA Inc. (CA) $32.36 +2.57%
Cognizant Technology Solutions Corp. (CTSH) $63.78 +2.46%
Priceline Group Inc (PCLN) $1,181.69 +2.44%
Nasdaq 100 - Fallers
Adobe Systems Inc. (ADBE) $76.89 -3.48%
Mattel Inc. (MAT) $23.95 -2.00%
eBay Inc. (EBAY) $58.42 -1.80%
Nvidia Corp. (NVDA) $22.87 -1.63%
Discovery Communications Inc. Class A (DISCA) $31.65 -1.43%
Wynn Resorts Ltd. (WYNN) $122.91 -1.34%
Keurig Green Mountain Inc (GMCR) $123.55 -0.77%
Ross Stores Inc. (ROST) $105.78 -0.56%
Maxim Integrated Products Inc. (MXIM) $36.05 -0.48% |
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| | Newspaper Round Up | | Thursday newspaper round-up: UK 2015 budget, North Sea oil, Tunisia terror ttack Chancellor George Osborne unveiled a pre-election budget on Wednesday that boasts of tax breaks for savers and first-time buyers, but critics claim it will force a future Conservative government to enforce deep spending cuts, The Guardian reported. Markets rally as US holds fire on rate rise, The Times reports. As expected, the Federal Reserve dropped the word 'patient' from the wording of its interest rates forward guidance, the paper notes.
The North Sea is expected to bring in just £600m next year compared with the £7.9bn prediction generated by the nationalist SNP, The Daily Telegraph said. The paper claims former SNP leader Alex Salmond's projections were '13 times higher than reality.'
Greece passed an anti-poverty bill on Thursday despite disagreements with international creditors, according to the The Wall Street Journal. Majority of lawmakers voted in favour of the bill in Greece's 300-seat Parliament, marking the first law passed by the leftist-led government since being elected in late January.
Russian president Vladimir Putin signed a treaty Wednesday night to incorporate the breakaway Georgian republic of South Ossetia one year after annexing Crimea from Ukraine, wrote The Times. | | |
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