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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 set new record as Chinese slowdown fuels stimulus hopes UK stocks reached a new all-time high on Wednesday morning as a raft of weak economic figures from China gave shares in the heavyweight mining sector a boost on hopes of further stimulus from Beijing. Chinese economic growth slowed to a six-year low, while growth in fixed-asset investment, industrial production and retail sales all eased, further ramping up the pressure on policymakers to act.
The FTSE 100 was trading 0.38% higher at 7,101.87, having touched a new peak of 7,111.61 in morning trade. That surpassed the previous intraday all-time high of 7,095.36 reached last Friday.
Chinese gross domestic product expanded at an annual rate of just 7% in the first quarter of 2015, in line with estimates but down from 7.4% growth in the fourth quarter. This was the slowest rate of expansion since 2009 on the back of weakness in the property and manufacturing sectors.
Analysts at Danske Bank said growth could dip below the 7% rate targeted by the Chinese government in the second quarter. "With the government's growth target already challenged, the implications are that there will be more monetary easing and probably also some additional fiscal easing," they said.
Other Chinese data for March also released overnight showed that annual growth in fixed-asset investment slowed from 13.9% to 13.5%, industrial production from 6.8% to 6.4% and retail sales from 11.9% to 10.2%. All three indicators came in worse than forecast.
The European Central Bank (ECB) meeting at 12:45 and subsequent press conference at 13:30 are likely to keep market participants busy, with investors awaiting an update on how the ECB's quantitative easing programme is going.
Mining stocks edge higher
Following on from a strong performance on Tuesday, mining stocks were mostly higher early on due to hopes of Chinese stimulus. Anglo American, BHP Billiton, Glencore and Rio Tinto were all making gains.
Mexican precious metals producer Fresnillo was also in demand after making an impressive start to 2015 with both silver and gold output up significantly over last year, putting the company on track to hit its annual targets.
Next raced up the FTSE 100 index after JPMorgan lifted its rating on the high street retailer to 'overweight' from 'neutral', saying it sees scope for shares to recover some of its recent underperformance (stock down 13% year-to-date) between now and its upcoming trading update on 29 April.
Astrazeneca was higher after giving US regulatory updates on two pipeline products, with an encouraging review for a pair of diabetes treatments and granting of 'orphan drug' status for a cancer treatment that should ease its path to marketing approval.
High end fashion label Burberry also edged higher after strong demand for its iconic heritage trench coats and scarves helped second-half revenues rise 9%.
Business supplies distributor Bunzl underwhelmed after saying trading in the first quarter was in line with expectations with revenues up 6%. |
| Market Movers
techMARK 3,264.47 +0.20%
FTSE 100 7,101.87 +0.38%
FTSE 250 17,865.32 +0.04%
FTSE 100 - Risers
Next (NXT) 7,295.00p +2.60%
Ashtead Group (AHT) 1,137.00p +2.25%
AstraZeneca (AZN) 4,885.00p +1.77%
Dixons Carphone (DC.) 443.90p +1.70%
Smiths Group (SMIN) 1,142.00p +1.60%
Glencore (GLEN) 298.00p +1.59%
Weir Group (WEIR) 1,908.00p +1.49%
Fresnillo (FRES) 733.00p +1.45%
Royal Dutch Shell 'B' (RDSB) 2,114.00p +1.34%
Sports Direct International (SPD) 654.00p +1.32%
FTSE 100 - Fallers
Bunzl (BNZL) 1,885.00p -1.31%
SSE (SSE) 1,545.00p -1.21%
Reed Elsevier (REL) 1,156.00p -1.11%
Severn Trent (SVT) 2,150.00p -1.01%
Aberdeen Asset Management (ADN) 489.80p -0.81%
Hikma Pharmaceuticals (HIK) 2,207.00p -0.81%
Admiral Group (ADM) 1,579.00p -0.75%
National Grid (NG.) 899.20p -0.73%
easyJet (EZJ) 1,859.00p -0.64%
Reckitt Benckiser Group (RB.) 6,055.00p -0.59%
FTSE 250 - Risers
JD Sports Fashion (JD.) 537.00p +5.40%
Premier Oil (PMO) 171.90p +3.87%
Ophir Energy (OPHR) 166.90p +3.66%
Kaz Minerals (KAZ) 235.90p +2.65%
Amec Foster Wheeler (AMFW) 938.00p +1.96%
Tullow Oil (TLW) 375.80p +1.95%
Home Retail Group (HOME) 174.80p +1.81%
Enterprise Inns (ETI) 118.50p +1.54%
Jupiter Fund Management (JUP) 441.60p +1.47%
Infinis Energy (INFI) 187.20p +1.46%
FTSE 250 - Fallers
Virgin Money Holdings (UK) (VM.) 398.40p -5.59%
Vesuvius (VSVS) 472.60p -5.57%
Indivior (INDV) 217.20p -3.25%
Diploma (DPLM) 823.50p -1.96%
Soco International (SIA) 193.70p -1.87%
Riverstone Energy Limited (RSE) 1,065.00p -1.84%
Euromoney Institutional Investor (ERM) 1,130.00p -1.74%
Hellermanntyton Group (HTY) 334.90p -1.38%
Jimmy Choo (CHOO) 171.50p -1.38% |
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| | UK Event Calendar | | Wednesday 15 April
INTERIMS
Tracsis
INTERIM DIVIDEND PAYMENT DATE
Livermore Investments Group Ltd.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (EU) (10:00)
Beige Book Fed Survey (US) (19:00)
Capacity Utilisation (US) (14:15)
Consumer Price Index (GER) (07:00)
Crude Oil Inventories (US) (15:30)
ECB Interest Rate (EU) (12:45)
Industrial Production (US) (14:15)
MBA Mortgage Applications (US) (12:00)
GMS
Intu Properties, Personal Assets Trust
FINALS
Belvoir Lettings, JD Sports Fashion, Walker Greenbank
ANNUAL REPORT
Antofagasta, Bioquell, Miton Group, STM Group
SPECIAL DIVIDEND PAYMENT DATE
Lancashire Holdings Limited
EGMS
Central Asia Metals, Tritax Big Box Reit
AGMS
AFC Energy, Bunzl, Cambian Group, Dialight, Heavitree Brewery, Hoang ANH Gia Lai Joint Stock Company GDR (Reg S), Hunting, JPMorgan Claverhouse Inv Trust, Jupiter Fund Management , Maven Income & Growth 3 VCT, Savannah Resources, Tritax Big Box Reit
FINAL DIVIDEND PAYMENT DATE
Lancashire Holdings Limited |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Indices rise ahead of ECB's policy announcement Ahead of the European Central Bank's (ECB) policy decision, the main equity indices in the euro area opened in positive territory. All ears will be squared on ECB President Mario Draghi at the press conference after his policy announcement to hear what he has to say about the effectiveness of the quantitative easing programme.
Analysts expect no surprises from the ECB on policy and see Draghi hailing the progress of the €1.1trn QE package, which was implemented to help bring inflation back towards the target of just below 2%.
A report on Monday showed the ECB purchased €9.159bn in government bonds in the week to 10 April, compared with €11.506bn growth in the week before, bringing the total to €61.681bn. The pace of average daily purchases slowed down to €1,832m from €2,301m in the previous reporting period.
"Overall, we expect Draghi to show satisfaction with how QE is proceeding and its effect both on financial markets and the real economy," said Unicredit's chief economist Marco Valli.
ECB policymakers may use a report showing an improvement in German inflation as a sign that QE is working.
German consumer prices climbed 0.3% in March compared to a year earlier, as expected, Destatis confirmed. .Compared with February, consumer prices rose by 0.5% in March.
The euro fell 0.48% to $1.0604.
On the downside, the Chinese economy slowed in the first quarter with gross domestic product up 7% year-on-year, as expected, compared to 7.3% over the preceding three months.
A separate report showed industrial production in China rose 6.4% in March, missing the 6.9% gain expected.
Retail sales in the world's second largest economy grew 10.2% in March, trailing the estimate for a 10.9% increase.
Michael Hewson, chief market analyst at CMC Markets UK, said the poor data is "likely to result in further easing measures from Chinese authorities in the coming weeks and months, and it is this prospect which has, in the old bad news is good news kind of way that we've become used to, driven Hong Kong and Shanghai markets to multi year highs, over the past few days and weeks".
Among companies, Danone gained after reporting first quarter sales that beat analysts' forecasts.
Hennes & Mauritz was a high riser after the fashion retailer reported a 10% increase in March sales.
Tryg slumped after the Nordic insurer posted first quarter pre-tax profits below expectations.
Alcatel Lucent plunged, snapping yesterday's surge, after agreeing a €15.6bn merger with Nokia. Nokia also declined. |
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| | US Market Report | | US close: stocks mostly higher on earnings results despite mixed data US stocks were mixed on Tuesday, a result of varied quarterly earnings results, underwhelming economic data and the International Monetary Fund's downgrade of US growth forecasts. The Dow Jones industrial average and S&P 500 closed higher by 59.66 and 3.41 points respectively, to 18,037 and 2,096, as energy stocks were bolstered by oil gains. Meanwhile the Nasdaq closed 10.96 points lower at 4,977, as Google and Apple's falls weighed.
"It's remarkable that we've had relatively weak economic data but the market has held up," said Mark Luschini, chief investment strategist at Janney Montgomery Scott. "And earnings are coming in negative. Investors are willing to look through that," he added.
Traders spent the session reacting to the IMF's latest move to reduce its forecast US economic growth this year to 3.1% from 3.6% previously. The estimate for 2016 was also lowered by 20% to 3.1%, according to the World Economic Outlook.
Data showing the biggest rise in US retail sales in a year, a reversal from three consecutive monthly declines, was also under scrutiny.
Despite March's data revealing a 0.9% jump after Febuary's 0.5% decline, the rebound was weaker then expected as the measure of core retail sales, which excludes cars and gasoline, was revised lower for January and February.
US producer prices climbed by a seasonally adjusted 0.2% in March after four straight monthly declines, the Labor Department said Tuesday.
The NFIB small-business index for March dropped to a nine-month low, while US February business inventories nudged 0.3% higher.
In company news, Google declined as news emerged that it is to face $6.6bn of antitrust charges from European regulators.
Johnson & Johnson reported an 8.6% decline in first-quarter profit and lowered its 2015 per-share earnings outlook. However, shares closed slightly higher, as earnings managed to surpass expectations.
Urban Outfitters was boosted by an upgrade to 'outperform' from 'market perform' by analysts at BMO Capital, who also raised their price target on the stock from $32 to $53.
Norfolk Southern plunged on Monday's profit warning, which cited lower-than expected coal production.
Intel and CSE corp both closed higher on expectations the companies will report first quarter earning of 41 and 44 cents per share respectively.
Oil prices continued higher on hopes that US shale oil production may have peaked and could begin to dip. Gold fell 0.58%, while the dollar traded lower 0.73% lower.
S&P 500 - Risers
Avon Products Inc. (AVP) $8.67 +8.24%
Ensco Plc. (ESV) $25.18 +6.65%
Diamond Offshore Drilling Inc. (DO) $30.83 +5.58%
Helmerich & Payne Inc. (HP) $75.69 +5.11%
Transocean Ltd. (RIG) $17.16 +4.89%
Range Resources Corp. (RRC) $57.73 +4.79%
Fastenal Co. (FAST) $41.79 +4.44%
United States Steel Corp. (X) $25.90 +4.18%
Nabors Industries Ltd. (NBR) $15.33 +3.79%
Freeport-McMoRan Inc (FCX) $18.95 +3.78%
S&P 500 - Fallers
Wynn Resorts Ltd. (WYNN) $127.53 -4.54%
Norfolk Southern Corp. (NSC) $100.49 -4.18%
Altera Corp. (ALTR) $42.55 -2.99%
Tiffany & Co. (TIF) $87.40 -1.89%
Analog Devices Inc. (ADI) $62.57 -1.85%
Whole Foods Market Inc. (WFM) $50.99 -1.78%
Sealed Air Corp. (SEE) $45.22 -1.78%
Macy's Inc. (M) $68.00 -1.66%
Google Inc. Class C (GOOG) $530.39 -1.63%
Google Inc. (GOOGL) $539.78 -1.61%
Dow Jones I.A - Risers
Chevron Corp. (CVX) $108.84 +2.20%
Merck & Co. Inc. (MRK) $57.76 +1.82%
JP Morgan Chase & Co. (JPM) $63.04 +1.56%
Exxon Mobil Corp. (XOM) $86.63 +1.51%
Goldman Sachs Group Inc. (GS) $197.72 +1.09%
Caterpillar Inc. (CAT) $83.00 +1.05%
Unitedhealth Group Inc. (UNH) $119.92 +0.46%
E.I. du Pont de Nemours and Co. (DD) $72.26 +0.42%
General Electric Co. (GE) $27.73 +0.36%
Verizon Communications Inc. (VZ) $49.18 +0.29%
Dow Jones I.A - Fallers
Intel Corp. (INTC) $31.49 -0.76%
Cisco Systems Inc. (CSCO) $27.81 -0.61%
Coca-Cola Co. (KO) $40.51 -0.47%
Apple Inc. (AAPL) $126.30 -0.43%
Home Depot Inc. (HD) $114.05 -0.34%
Microsoft Corp. (MSFT) $41.65 -0.26%
Wal-Mart Stores Inc. (WMT) $80.15 -0.17%
Pfizer Inc. (PFE) $35.03 -0.17%
Visa Inc. (V) $65.53 -0.12%
Travelers Company Inc. (TRV) $107.79 -0.07%
Nasdaq 100 - Risers
Fastenal Co. (FAST) $41.79 +4.44%
Vodafone Group Plc ADS (VOD) $33.94 +1.77%
Yahoo! Inc. (YHOO) $45.53 +1.69%
Cognizant Technology Solutions Corp. (CTSH) $62.62 +1.44%
NetApp Inc. (NTAP) $35.87 +1.30%
Check Point Software Technologies Ltd. (CHKP) $83.77 +1.04%
Mattel Inc. (MAT) $24.56 +1.03%
Charter Communications Inc. (CHTR) $190.89 +0.99%
Vimpelcom Ltd Ads (VIP) $5.84 +0.86%
Netflix Inc. (NFLX) $478.71 +0.85%
Nasdaq 100 - Fallers
Wynn Resorts Ltd. (WYNN) $127.53 -4.54%
Altera Corp. (ALTR) $42.55 -2.99%
Analog Devices Inc. (ADI) $62.57 -1.85%
Whole Foods Market Inc. (WFM) $50.99 -1.78%
Nxp Semiconductors Nv (NXPI) $98.63 -1.66%
Google Inc. Class C (GOOG) $530.39 -1.63%
Google Inc. (GOOGL) $539.78 -1.61%
Monster Beverage Corp (MNST) $135.80 -1.44%
Kraft Foods Group, Inc. (KRFT) $87.15 -1.37% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: Chinese GDP, Google, HSBC Economic growth in China slowed down to just 7% in the first quarter, representing the lowest pace of expansion in six years, according to the Financial Times. This compared with 7.3% growth in the fourth quarter.
Europe is set to file formal charges against Google for violating antitrust laws, The Wall Street Journal reports. The case is likely to become the "biggest competition battle here since the European Union's pursuit of Microsoft Corp. a decade ago", the paper said.
HSBC is looking to "refresh" its board after the recent scandal regarding tax evasion at its Swiss arm, reports the Financial Times. The bank has reportedly hired headhunters to find replacements for as many as give longstanding non-executive directors in the next couple of years.
Greek foreign minister Euclid Tsakalotos has expressed confidence that Athens will be able to reach a deal with creditors before the 24 April deadline to unlock €7.2bn of financial aid, The Guardian reports.
Facebook founder Mark Zuckerberg has said he will bring the company's free internet project, Internet.org, to Europe, reports The Telegraph.
GlobalData's head of oil and gas research and consulting has slammed claims by UK Oil & Gas Investments that the Horse Hill project near Gatwick contains 100bn barrels of oil, saying that estimates were "wildly optimistic" and "misleading", The Telegraph said.
The former chief financial officer of Supergroup who was forced to leave after being declared bankrupt has had the ruling annulled after he paid back money to the taxman, The Times writes. | | |
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