| | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London close: Tesco leads the decline as hawkish BoE spooks markets A record loss from the UK's largest retailer and hawkish comments from the Bank of England combined to push stocks in London lower on Wednesday. The FTSE 100 finished the session down 0.49% at 7,028.24, pulling back after rising to a high of 7,092.34 early on. The index came close to its intraday high of 7,119.35 reached last week.
Tesco was leading the blue-chip index lower after reporting its steepest annual loss in the supermarket's 97-year history, spreading weakness across the wider retail sector. Financial stocks were also out of favour.
Minutes from the Bank of England's meeting earlier this month also caused some concern among investors. While the decision to hold interest rates was unanimous, as expected, policymakers did highlight that recent moves in sterling could raise inflation sooner than expected.
"This pushes rate hike expectations forward and shows that central bankers are possibly willing to somewhat overlook the influence the oil price is having on inflation levels," said IG analyst Joshua Mahony.
Economic data was relatively thin on the ground on Wednesday, though figures did show that Eurozone consumer confidence declined in April as uncertainty surrounding Greece hit sentiment. Meanwhile, US existing home sales rose at their fastest pace in 18 months in March.
Tesco under the spotlight
Tesco jumped in early deals after its results, though the swift realisation that a £6.4bn annual loss was not something to be taken lightly saw its share price drop over 5% by the close.
"To say that Tesco had a nightmare year in FY2015 would be an understatement, an out-turn that would simply have been unfathomable in days gone by," Shore Capital's Clive Black and Darren Shirley said.
The results took out grocery rivals Sainsbury's and Morrisons too, who were both nursing losses of around 4% by the end of trading, while other retailers such as Sports Direct, M&S and Next all weakened.
Stocks in the financial sector were also weighing on the market, including Hargreaves Lansdown after being downgraded to 'hold' by Jefferies. Schroders, Prudential, Legal & General, Lloyds and HSBC also fell.
Meanwhile, Credit Suisse lowered its target on Standard Chartered from 880p to 850p and kept an 'underperform' rating, saying the company is "prioritising building capital by holding back growth".
Among the risers was engine maker Rolls-Royce after chief executive John Rishton announced plans to retire this summer. He will be succeeded by former ARM Holdings boss Warren East.
UK timber and builders merchant Travis Perkins also advanced after saying group sales were up 7.2% in the first quarter despite strong comparators with last year.
Shares in BHP Billiton gained after revealing record levels of iron ore and coal production for the nine months of its financial year. The miner however also announced it would postpone some plans to increase an iron ore project.
Market Movers
techMARK 3,236.91 +0.02%
FTSE 100 7,028.24 -0.49%
FTSE 250 17,635.55 -0.43% |
| | Wealth creation through asset backed investments... | | Take an alternative approach to investing with our latest high fixed return investment opportunity
No annual fees, flexible investment periods and income paid quarterly Click here to find out more! |
| | FTSE 100 - Risers
Rolls-Royce Holdings (RR.) 1,048.00p +4.07%
Travis Perkins (TPK) 2,074.00p +2.72%
Rio Tinto (RIO) 2,863.50p +1.83%
Hikma Pharmaceuticals (HIK) 2,135.00p +1.81%
BHP Billiton (BLT) 1,483.00p +1.37%
Shire Plc (SHP) 5,645.00p +1.26%
Associated British Foods (ABF) 2,745.00p +1.22%
G4S (GFS) 304.00p +0.93%
BT Group (BT.A) 460.55p +0.81%
Aggreko (AGK) 1,672.00p +0.72%
FTSE 100 - Fallers
Tesco (TSCO) 222.65p -5.15%
Morrison (Wm) Supermarkets (MRW) 190.40p -4.08%
Sainsbury (J) (SBRY) 263.00p -3.73%
Sports Direct International (SPD) 631.00p -3.37%
Hargreaves Lansdown (HL.) 1,198.00p -2.92%
Babcock International Group (BAB) 1,014.00p -2.50%
Royal Mail (RMG) 439.30p -2.14%
Ashtead Group (AHT) 1,139.00p -2.06%
GlaxoSmithKline (GSK) 1,548.50p -1.68%
Admiral Group (ADM) 1,603.00p -1.60%
FTSE 250 - Risers
Ophir Energy (OPHR) 164.00p +4.79%
Playtech (PTEC) 840.50p +3.38%
Fisher (James) & Sons (FSJ) 1,346.00p +3.30%
AA (AA.) 405.00p +2.79%
UDG Healthcare Public Limited Company (UDG) 524.50p +2.74%
Infinis Energy (INFI) 188.40p +2.39%
Fidelity China Special Situations (FCSS) 171.40p +2.33%
Unite Group (UTG) 604.50p +2.20%
Croda International (CRDA) 2,964.00p +2.00%
Inmarsat (ISAT) 998.50p +1.84%
FTSE 250 - Fallers
Tate & Lyle (TATE) 608.50p -5.29%
Serco Group (SRP) 133.30p -3.75%
Ladbrokes (LAD) 102.70p -3.20%
Rotork (ROR) 2,459.00p -2.96%
Petra Diamonds Ltd.(DI) (PDL) 161.00p -2.78%
SSP Group (SSPG) 301.90p -2.68%
Ashmore Group (ASHM) 303.50p -2.57%
Booker Group (BOK) 147.10p -2.52%
Evraz (EVR) 186.10p -2.16% |
| | Free Expert Signals & Exclusive Bonus | | It’s common knowledge that successful trading requires being connected to professional analysts. Sunbird FX is excited to offer you FREE market signals today with your registration, and exclusively for ADVFN users an added 30% start up bonus Click here to get started! |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks mixed as Eurozone consumer confidence falls amid Greek crisis European stocks were mixed as a report showed Eurozone consumer confidence unexpectedly fell on Greek debt concerns. An index measuring Eurozone consumer sentiment dropped to -4.6 from -3.7 a month earlier, compared to analysts' forecasts of -2.5.
"April's decline in the EC measure of consumer confidence suggests that concerns about Greece may have begun to take a toll on the Eurozone's household sector," said Capital Economics assistant economist Jack Allen.
"Nevertheless, the small fall in the index [...] left it well above the levels seen even towards the end of last year."
Fears over Greece's debt continued to weigh as Thomas Wieser, who heads the Eurogroup Working Group, said Athens will not present a list of economic reforms to Eurozone finance ministers at Friday's meeting in Riga.
"The clock is ticking. There won't be a new list in Riga, but over the course of May it must finally be reached," he told Austrian broadcaster ORF late on Tuesday.
"The liquidity situation in Greece is already a little tight, but it should be sufficient into June."
Connor Campbell, financial analyst at Spreadex, said: "With no chance of a deal at Friday's Eurogroup meeting in Riga, Greece has missed its latest chance to show genuine intent in regards to reforms, leaving it friendless, penniless, and pretty much hopeless."
The euro fell 0.06% to $1.0730.
In the UK, the Bank of England's minutes of its 9 April meeting showed policymakers saw an increase in the Bank Rate as "more likely than not" over the coming three years.
All BoE officials voted in favour of keeping key interest rates at 0.5% and asset purchases at £375bn at the last meeting, the minutes revealed.
Members of the Monetary Policy Committee also turned more positive on the Eurozone, saying if economic recovery continued it would have a positive effect on the UK despite the strengthening in the pound.
In the US, a report revealed existing home sales rose 6.1% in March, smashing estimates for a 3.1% increase, amid an increase in employment and low interest rates.
Volvo and Rolls-Royce rally on CEO appointments
Volvo AB and Rolls-Royce Holdings jumped after the companies named new chief executive officers.
Tesco declined after suffering a record annual loss of £6.4bn, compared to the £5bn at the worse end of expectations, amid a supermarket price war and an accountancy scandal.
Kering SA slumped as it reported a fall in sales at its Gucci brand that was worse than forecast.
Roche Holding AG rallied after reporting first-quarter revenue that exceeded analysts' forecasts.
ASML Holding NV gained after the European chip-equipment maker said it signed a deal with a US customer to deliver at least 15 of its extreme ultraviolet lithography systems. |
| | Will you be able to retire in comfort? | | Download the 15-Minute Retirement Plan by Fisher Investments UK.
Click here to download! |
| | US Market Report | | US open: Stocks for choppy session as investors await raft of earnings US stock fluctuated early on Wednesday, as investors digested another raft of earnings and awaited more corporate reports at the end of the session.
Just before 15:00 BST, the Dow Jones Industrial Averagewas up 35 points, while the S&P 500 and the Nasdaq declined two and seven points respectively.
US stocks were mixed on Tuesday, largely unable to maintain Monday's gains as investors digested a plethora of earnings reports.
"Since the tech sector has become such a dominant source of profit growth, the next few days which include earnings from Facebook, Google, Apple and Twitter are an especially sensitive part of the earnings season," said Jasper Lawler, analyst at CMC Markets.
On Wednesday, investors will closely monitor corporate earnings from a host of Wall Street's heavyweights, with AT&T, eBay and Facebook set to report after the close.
"Facebook is expected to post a jump in its year-on-year Q1 figures of 67% to $1.79bn, once again setting the standard for social media companies when it comes to monetising their user base," said IG's market analyst Alastair McCaig.
McDonald's rose 2.99%, despite the burgers-and-milkshakes chain reporting "negative guest traffic in all major segments" during the first quarter.
Boeing slid 0.87% after reporting before the bell that its first quarter revenue climbed from a year ago but missed expectations, while earnings rose to $1.97 per share from $1.76 a year ago, better than the $1.81 predicted by the market.
Coca-Cola climbed 1.10%on the back of a slight increase in first quarter revenue, which rose1% to $10.7bn, while gross profit climbed 2% to $6.6bn. However, income before taxes declined by 10% to $1.56bn.
Yahoo! declined 0.3% after reporting late on Tuesday that its first quarter earnings had missed estimates.
Harley Davidson rose 0.3% after closing the previous session down 9.8% on news that it had slashed its shipment outlook for the year.
Sports apparel retailer Under Armour gained 0.06% despite posting a wider-than-expected drop in sales on Tuesday.
Meanwhile, applications for US home mortgages grew last week, data released on Wednesday showed.
The Mortgage Bankers Association said its seasonally adjusted index of application activity, which covers home purchase demand and refinancing demand, climbed 2.3% in the week ended 17 April.
Elsewhere, in Japan, the Nikkei 225 gained 1.13% above 20,000 for the first time in 15 years, driven by a jump in trade balance to £229.3bn (£1.3bn) in March from a decline of £424.6bn the month before.
The dollar slid 0.7% against the pound but was stable against the yen and the euro, while gold futures slid 0.54% to $1,196.60.
|
| | Access property investments usually reserved for the largest investors | | Cogress is a property investment firm that give qualified investors access to unique real estate investments. Past investments made by our management team showed an average of 22.7% returns annually. Receive our FREE Investment Pack. |
| | Broker Tips | | Broker tips: Tesco, StanChart, BT Group, Tate & Lyle Record annual losses from Tesco were widely attacked by financial analysts and City traders but there was optimism that the results showed several hints of a turnaround. Deutsche Bank took an optimistic view: "While there are arguably a few more downward pressures than upward pressures, we don't expect 2015/16 consensus numbers to move materially on these results. The confirmation of an agreed funding plan for the pension deficit, which isn't materially more onerous than our current forecasts, is a positive."
Credit Suisse has lowered its price target for emerging markets-focused lender Standard Chartered from 880p to 850p and kept an 'underperform' rating, causing shares to slip on Wednesday.
"The company is now prioritising building capital by holding back growth, but we think that gives up future earnings," warned analyst Carla Antunes-Silva.
BT Group was dialling the right numbers with investors on Wednesday after Nomura lifted its target on the stock from 520p to 550p and kept a 'buy' rating.
"Following the acquisition of EE, BT has secured a strong network position at a time when European regulators (and Ofcom) are incentivising network investment; and it will stand alone as the only integrated operator in the UK with the benefit of network economics on both fixed and mobile services," said analyst James Britton.
Shares in sugar, sweetener and food ingredients group Tate & Lyle were losing their flavour on Wednesday after analysts at Credit Suisse lowered their rating on the stock from 'neutral' to 'underperform'. | | |
New ADVFN Service - FREE Reports Get your free report on Isa's, Investment Trusts, Funds,
Sipps Travel and Cars - FREE and Easy service CLICK HERE
To advertise in the Euro Markets Bulletin please contact patrick@advfn.co.uk |
| | | | | | | To unsubscribe from this news bulletin or edit your mailing list settings click here. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +44 (0) 207 0700 961. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49 | |
No comments:
Post a Comment