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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 decline on Greek fears, global trade data UK stocks fell on Monday morning on the back of renewed concerns about Greece, while investors digested the latest trade data from China and Germany.
London's FTSE 100 was down 0.55% at 6,873.61 within the opening hour of trade.
Greece's new government has threatened that they could call a referendum or have early elections if the Eurozone rejects its proposed reforms.
"We are not attached to our posts. If needed, if we encounter implacability, we will resort to the Greek people either through elections or a referendum," said finance minister Yanis Varoufakis.
According to economist Christian Schulz from Berenberg, Athens "continues to severely damage the trust of its Eurozone partners, the only viable source of short-term funding to keep Greece afloat and in the euro".
In economic data, China's trade surplus rose to a record $60.62bn in February, compared with $60bn in January. This increase came after a 48.3% year-on-year surge in exports and a 20.5% drop in imports, compared with expectations of +14% and -10% respectively.
However, due to the distortions resulting from the lunar new year holiday, analysts focused on figures for the past two months which show a slightly less volatile picture - exports over January and February combined were up 15% on last year, while imports declined 20%.
"Trade growth is highly volatile at the start of the year due to shifts in the timing of Chinese New Year, which disrupts manufacturing activity as migrant workers return home but also leads to a pre-holiday rush to complete outstanding export orders," according to analysts at Capital Economics.
The widening seen in the surplus and rise in exports was generally well ahead of economists' expectations but the decline in imports is another sign pointing to a slowing in the Chinese economy as a result of reduced domestic demand.
Meanwhile, the German trade surplus shrank to €19.7bn in January from €21.6bn the month before as exports fell 2.1% and imports declined 0.3%.
Property stocks take a hit
Real estate investment trusts such as Land Securities, British Land and Intu Properties were among the worst performers on the Footsie early on, while second-tier peers St Modwen Properties and Capital & Counties also weakened.
St Modwen in particular was feeling the effects of a downgrade to 'neutral' at JPMorgan Cazenove.
WPP, the world's biggest advertising company, declined despite beating expectations with a record £1.5bn annual profit in 2014, up 12% on the previous year. Revenues were up nearly 5% at £11.6bn, though currency movements weighed on growth.
Mining stocks were mostly higher on the back of strong export data from top metals consumer China. Glencore, Randgold and Frensillo were all on the rise.
However, shares in Antofagasta were flat after saying that ongoing protests at its Los Pelambres copper project in Chile have reduced copper production by 5,000 tonnes over the last two weeks.
ITV rose after Westhouse Securities upgraded the stock to 'add', G4S was lifted by a Deutsche Bank upgrade to 'hold', while Reckitt Benckiser was boosted to 'buy' at Jefferies. |
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| Market Movers
techMARK 3,144.08 -0.71%
FTSE 100 6,873.61 -0.55%
FTSE 250 17,188.67 -0.48%
FTSE 100 - Risers
Standard Chartered (STAN) 1,038.50p +1.42%
Randgold Resources Ltd. (RRS) 4,645.00p +1.40%
Fresnillo (FRES) 705.50p +1.00%
Glencore (GLEN) 291.75p +0.78%
ITV (ITV) 248.10p +0.65%
G4S (GFS) 297.20p +0.64%
Rolls-Royce Holdings (RR.) 993.00p +0.61%
Tullow Oil (TLW) 355.00p +0.51%
Meggitt (MGGT) 559.50p +0.45%
HSBC Holdings (HSBA) 569.50p +0.26%
FTSE 100 - Fallers
Land Securities Group (LAND) 1,235.00p -2.37%
British Land Co (BLND) 823.50p -1.91%
United Utilities Group (UU.) 908.00p -1.84%
Kingfisher (KGF) 356.70p -1.84%
RSA Insurance Group (RSA) 411.00p -1.67%
Marks & Spencer Group (MKS) 502.50p -1.66%
Aviva (AV.) 554.00p -1.60%
Friends Life Group Limited (FLG) 422.70p -1.58%
Smith & Nephew (SN.) 1,126.00p -1.57%
Barratt Developments (BDEV) 511.00p -1.54%
FTSE 250 - Risers
Infinis Energy (INFI) 196.80p +2.56%
Vedanta Resources (VED) 583.50p +2.19%
IP Group (IPO) 243.10p +2.14%
Ophir Energy (OPHR) 140.60p +2.11%
Soco International (SIA) 261.30p +1.99%
JD Sports Fashion (JD.) 501.50p +1.85%
PayPoint (PAY) 842.50p +1.44%
Bank of Georgia Holdings (BGEO) 1,847.00p +1.32%
Supergroup (SGP) 940.50p +1.29%
Hunting (HTG) 504.00p +1.27%
FTSE 250 - Fallers
Allied Minds (ALM) 550.00p -4.93%
St. Modwen Properties (SMP) 446.80p -3.48%
Capital & Counties Properties (CAPC) 398.00p -2.57%
Man Group (EMG) 189.90p -2.37%
Workspace Group (WKP) 830.00p -2.35%
Riverstone Energy Limited (RSE) 1,009.00p -1.94%
Evraz (EVR) 189.90p -1.91%
Spire Healthcare Group (SPI) 318.90p -1.88%
Hansteen Holdings (HSTN) 114.60p -1.72% |
| | UK Event Calendar | | Monday March 09
INTERIMS
Abcam, Gemfields, Pure Wafer
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (GER) (07:00)
Current Account (GER) (07:00)
Harmonised Competitiveness Indicators (EU) (09:00)
Retail Price Index (GER) (07:00)
FINALS
Clarkson, Escher Group Holdings, Hansteen Holdings, HGCapital Trust, Mincon Group , WPP
ANNUAL REPORT
Law Debenture Corp.
EGMS
24/7 Gaming Group Holdings, Starwood European Real Estate Finance Ltd
AGMS
Hazel Renewable Energy VCT 1, Hazel Renewable Energy VCT 2
FINAL DIVIDEND PAYMENT DATE
Fenner |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks mixed as ECB's QE set to kick-off European stocks were little changed as the European Central Bank prepared to begin its quantitative easing package.
The ECB last week revealed that it would begin its €1.1trn QE programme on Monday to help turn the euro-area economy around and bring inflation back towards to target of just below 2%.
ECB President Mario Draghi said the bond-buying will run through September 2016 and thereafter if needed at €60bn a month.
As of 08:40 the yield on 10-year German bunds was lower by four basis points and that on equivalent French debt by five basis points. Greek 10-year sovereign bond yields on the other hand could be seen higher by 18 basis points to 9.28%, according to Bloomberg data.
Meanwhile, a report showed Germany's trade surplus contracted to €19.7bn in January, just below forecasts for €19.8bn..
Exports fell 2.1% in January to a seasonally adjusted €96.3bn, according to Destatis. Imports dropped just 0.3% to €76.6bn.
The seasonally adjusted trade surplus decreased to €19.7bn in January from €21bn in December.
In China, the monthly trade surplus hit a record $60.6bn in February, as exports grew and imports slid. Exports grew 48.3% year-on-year to $169.2bn, and the value of imports declined by a fifth to $108.6bn.
Greek referendum
Greek Finance Minister Yanis Varoufakis has said Greece could call a referendum or have early elections if Eurozone partners reject its debt plans.
In an interview with Italian newspaper Corriere della Sera he said: "There could be problems. But, as my prime minister has said, we are not yet glued to our chairs. We can return to elections, call a referendum."
Alexis Tsipras's government won an election in January, promising to renegotiate a bailout agreed with the International Monetary Fund and its European Union partners.
The new government agreed a temporary deal last month to extend its bailout by four months and has until the end of April to provide reforms needed in exchange for more aid.
Eurozone finance ministers are meeting on Monday in Brussels to reforms sent by Athens last week.
In company news, speaking to SonntagsZeitung Holcim's largest stakeholder, Thomas Schmidheiny, said he wanted a better deal for the Swiss cement maker in any merger with France's Lafarge.
Traders at Barclays and Deutsche Bank are being interviewed by the Serious Fraud Office as part of its investigation into the alleged rigging of the Euribor market, the FT reported. |
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| | US Market Report | | US close: Jump in yields brings equities off highs Upbeat news about the labour market weighed on stocks on Friday morning on Wall Street, as a forecast-smashing jobs report on headline figures led some economists to bring forward their expectations for the first rate rise by the Federal Reserve.
The Dow Jones Industrial Average ended the day down 1.54% to 17,857 points while the S&P 500 fell 1.43% to hit the 2,071 point level. The Nasdaq Composite 1.12% lower by the closing bell at 4,927.
Some 295,000 non-farm payrolls were added in February, according to the Labor Department, smashing the consensus estimates of 235,000 despite the recent severe winter weather that has hit the Northeast. This was also ahead of January's reading of 239,000, though this was revised down from the preliminary 257,000 estimate.
The unemployment rate nudged lower to 5.5% versus estimates of 5.6% and below 5.7% in January, as a result of the participation rate dropping again from 62.9% to 62.8%. The jobless rate has not been this low in nearly seven years.
As a result, the yield on 10-year US Treasuries pushed higher by 13 basis points to 2.24%.
No time to waste, some say
Digging deeper into the numbers, the change in average hourly earnings came in at 0.1%, missing expectations of 0.2%, and sliding from 0.5%. Some believe that may be enough for the Fed to hold back from raising rates until average earnings pick up in a decent manner to truly reflect the improvement in the labour market.
However, economist Paul Dales from Capital Economics, said that "even if wage growth is still subdued, the Fed can't hang around before raising rates". He said if the Fed waits until wage growth accelerates, "they will be well behind the curve".
Furthermore, reports on Friday suggested that the snow storm that has prompted record-low temperatures across the States has moved out to sea. Even with bad weather, the US labour market managed to grow strongly in February, which bodes well for March's figure.
On the other side of the spectrum, speaking on CNBC Goldman Sachs's Jan Hatzius said he expects the Fed to start raising rates in September.
In FX markets, the US dollar surged against the euro and the British pound after the jobs report. The greenback spiked 1.7% to change hands with the euro at 1.084 per dollar, its weakest level since 2004.
Front month West Texas crude futures slumped 1.93% to $49.78 in the face of a stronger dollar.
The US dollar index finished 1.2% higher.
Staples slips, Foot Locker gains
Retailer Staples reported lower-than-expected fourth-quarter sales, hurt by a strong dollar and weak demand for electronics, however the company did post better-than-expected profit.
Sector peer Foot Locker impressed as quarterly earnings surged 20.6% to $146m, helped by a strong sales performance over Christmas.
AT&T was lower on the day it was revealed that Apple would kick the telecoms giant out of the Dow later this month.
S&P 500 - Risers
E*TRADE Financial Corp. (ETFC) $27.85 +3.26%
Charles Schwab Corp. (SCHW) $31.04 +2.75%
ONEOK Inc. (OKE) $47.13 +2.48%
Comerica Inc. (CMA) $47.10 +2.44%
Prudential Fincl Inc. (PRU) $82.60 +1.96%
Juniper Networks Inc. (JNPR) $23.57 +1.81%
Textron Inc. (TXT) $44.78 +1.75%
MetLife Inc. (MET) $52.64 +1.74%
SunTrust Banks Inc. (STI) $41.92 +1.70%
Keycorp (KEY) $14.31 +1.63%
S&P 500 - Fallers
Newmont Mining Corp. (NEM) $23.30 -7.91%
Fossil Group Inc (FOSL) $81.13 -5.30%
PPL Corp. (PPL) $31.74 -5.00%
Noble Corporation plc (NE) $15.19 -4.88%
Chesapeake Energy Corp. (CHK) $15.17 -4.71%
Reynolds American Inc. (RAI) $70.43 -4.67%
PulteGroup Inc. (PHM) $21.22 -4.59%
Public Service Enterprise Group Inc. (PEG) $39.63 -4.39%
Ensco Plc. (ESV) $22.85 -4.35%
CMS Energy Corp. (CMS) $33.15 -4.27%
Dow Jones I.A - Risers
Dow Jones I.A - Fallers
Johnson & Johnson (JNJ) $100.11 -2.35%
Procter & Gamble Co. (PG) $82.66 -2.33%
Coca-Cola Co. (KO) $41.52 -2.08%
McDonald's Corp. (MCD) $97.13 -2.00%
Merck & Co. Inc. (MRK) $56.84 -1.97%
3M Co. (MMM) $164.36 -1.92%
JP Morgan Chase & Co. (JPM) $60.89 -1.79%
Caterpillar Inc. (CAT) $80.06 -1.78%
Visa Inc. (V) $269.34 -1.75%
Microsoft Corp. (MSFT) $42.36 -1.74%
Nasdaq 100 - Risers
eBay Inc. (EBAY) $59.87 +1.34%
QUALCOMM Inc. (QCOM) $71.50 +0.81%
Dish Network Corp. (DISH) $76.06 +0.33%
Dollar Tree Inc (DLTR) $79.61 +0.23%
Maxim Integrated Products Inc. (MXIM) $35.67 +0.17%
Apple Inc. (AAPL) $126.60 +0.15%
Comcast Corp. (CMCSA) $60.37 +0.07% |
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| | Newspaper Round Up | | Monday newspaper round-up: Euribor probe, Greece, Tesco Former traders from Barclays and Deutsche Bank will be interviewed by UK fraud investigators in an ongoing criminal probe into the alleged rigging of Euribor, writes the Financial Times. "The move raises the prospect for the banks that investigations into alleged manipulation of interbank rates will drag on for several more years," the paper said.
According to The Guardian, Greece's government has warned that a referendum or new election on fiscal policy is possible if the Eurozone rejects proposed reforms.
Michael Holmes, the head of Tesco's in-store restaurants and coffee shops, has left the supermarket, reports The Telegraph. The paper said it was a "clear sign that one of former boss Philip Clarke's key initiatives has failed".
A report from recruitment firm Astbury Marsden has found that around 3,000 City payrolls were added in February, up 17% on the same point last year, writes the City AM.
The Times said that former Morrisons boss Dalton Phillips is set to pocked £3m in lieu of his 12-month notice despite the bank expected to reveal that profits more than halved last year.
Some 20.2% of enterprise finance guarantee loans have defaulted, reports The Times, "raising fresh questions about a scheme that is the subject of an internal investigation by Royal Bank of Scotland".
Edinburgh Airport has commissioned a report which found that 4,000 jobs in Scotland could be created over the next five years if air passenger duty is halved, delivering a £1bn boost to the Scottish economy, writes The Scotsman. | | |
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