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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: Mining stocks list FTSE on PBoC stimulus UK stocks rose strongly on Monday morning as markets rebounded after a heavy sell-off the previous session, as sentiment recovered over the weekend following stimulus measures in China.
"The markets were buoyed this morning by the news that China's central bank has taken fresh, if tentative, steps in combatting the economic slowdown," said Spreadex analyst Connor Campbell.
The FTSE 100 was up 0.84% at 7053.61 in early deals, with mining stocks leading the rise.
The index dropped 0.9% on Friday to 6,994.63, its first close below 7,000 since 8 April, as a Bloomberg terminal outage and a change to short-selling regulations in China sparked volatility across global financial markets.
The People's Bank of China, under pressure to boost growth following a recent batch of weak economic data, this weekend lowered its reserve requirement ratio by one percentage point, the most aggressive cut since 2008.
However, the bigger-than-expected move, intended to boost bank lending, failed to spark a rally on Asian indices with stocks across the continent firmly in the red on Monday.
Developments in Greece continue to be in focus as the Eurogroup meets this week to discuss the reform package Athens needs to present in exchange for a further €7.2bn bailout tranche.
The International Monetary Fund said on Monday that it is "hopeful" of a solution to discussions.
Mining stocks jump, Petrofac slumps
Miners such as Anglo American, Rio Tinto, BHP Billiton, Glencore and Vedanta Resources were rising strongly as stimulus measures in China spurred buying across the sector.
Russia-focused steel producer Evraz gained after reporting stable output levels in the first quarter of 2015, though it did warn that production will drop over the next three months due to scheduled maintenance works.
Oilfield services outfit Petrofac dropped 12% after saying it expects to recognise a further loss of $195m in 2015 for the Laggan-Tormore gas plant project on Shetland. The company, which had already recognised a $230m loss on the project in 2014, told investors earlier this year that it did not foresee a further profit or loss over the remainder of the contract duration.
Engineering software group Aveva impressed with a short, albeit positive, pre-close trading update which said annual results should meet analysts' forecasts. Aveva said the annual report "positively reflects the resilience of the underlying business model".
Polymer products group Victrex was advancing after Exane BNP Paribas lifted its rating on the stock to 'outperform'. |
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| Market Movers
techMARK 3,215.88 +0.66%
FTSE 100 7,053.61 +0.84%
FTSE 250 17,645.31 +0.41%
FTSE 100 - Risers
Anglo American (AAL) 1,038.00p +2.72%
InterContinental Hotels Group (IHG) 2,785.00p +2.31%
Pearson (PSON) 1,379.00p +1.77%
Mondi (MNDI) 1,382.00p +1.77%
Rio Tinto (RIO) 2,850.00p +1.75%
Ashtead Group (AHT) 1,131.00p +1.71%
Prudential (PRU) 1,663.00p +1.62%
AstraZeneca (AZN) 4,827.00p +1.62%
BHP Billiton (BLT) 1,468.50p +1.56%
HSBC Holdings (HSBA) 608.60p +1.43%
FTSE 100 - Fallers
Coca-Cola HBC AG (CDI) (CCH) 1,343.00p -1.10%
Sky (SKY) 1,044.00p -0.76%
Persimmon (PSN) 1,723.00p -0.58%
G4S (GFS) 297.10p -0.37%
easyJet (EZJ) 1,819.00p -0.22%
Capita (CPI) 1,119.00p -0.18%
Hargreaves Lansdown (HL.) 1,207.00p -0.17%
FTSE 250 - Risers
Victrex plc (VCT) 2,074.00p +3.80%
Vedanta Resources (VED) 570.00p +3.35%
Evraz (EVR) 197.00p +2.76%
Kaz Minerals (KAZ) 233.20p +2.37%
Petra Diamonds Ltd.(DI) (PDL) 163.50p +2.12%
AO World (AO.) 189.30p +1.94%
Ocado Group (OCDO) 355.40p +1.86%
Mitchells & Butlers (MAB) 437.40p +1.77%
Home Retail Group (HOME) 173.10p +1.70%
Spire Healthcare Group (SPI) 325.20p +1.62%
FTSE 250 - Fallers
Petrofac Ltd. (PFC) 894.00p -11.83%
RPS Group (RPS) 233.10p -2.51%
Just Retirement Group (JRG) 173.30p -1.98%
Fidessa Group (FDSA) 2,285.00p -1.97%
Polymetal International (POLY) 552.50p -1.52%
Zoopla Property Group (WI) (ZPLA) 185.50p -1.43%
SSP Group (SSPG) 299.10p -1.35%
Card Factory (CARD) 312.80p -1.26%
TR Property Inv Trust (TRY) 316.80p -1.03% |
| | UK Event Calendar | | Monday 20 April
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Producer Price Index (GER) (07:00)
GMS
Fastjet
FINALS
HSS Hire Group , North Midland Construction
AGMS
CityFibre Infrastructure Holdings , JPMorgan US Smaller Co. Inv Tst, Juridica Investments Ltd., PPHE Hotel Group Ltd |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Equities climb on back on China's RRR cut European equities opened in positive territory after China's central bank signalled further stimulus measures to boost growth.
The People´s Bank of China lowered the amount of cash that lenders must hold as reserves will help keep liquidity stable. The reserve requirement ratio (RRR) for all banks by cut by 100 basis points to 18.5%effective from 20 April.
The reduction was twice the amount expected by analysts at Capital Economics and marked the largest decrease since late 2008.
"Sunday's cut to the RRR for China's banks signals a stepping-up of policy support," said Mark Williams, chief Asia economist at Capital Economics.
"It also suggests that any concerns policymakers have about the rapid gains in equity prices have been put on the back burner for now."
Back in the Eurozone, Greek bonds were weakening as fears of a default grew after International Monetary Fund (IMF) chief Poul Thomsen said talks have gathered momentum but still have a long way to go.
Greece is trying to convince the IMF and the EU to agree to its economic reforms in order to unlock further aid. Greece owes the IMF debt repayments on 1 May and 12 May.
The euro fell 0.14% to $1.0791 in morning trade.
In commodities, Brent crude was up 0.42% to $63.72 per barrel while Wset Texas Intermediate grew 0.83% to $56.21, ICE data revealed.
Companies: Telenet, Tesco
Telenet Group Holding jumped after agreeing to buy Royal KPN NV's Belgian mobile-phone business Base for €1.33bn. KPN gained.
Tesco dropped after the Financial Times reported the grocer may post an annual loss of as much as £5bn on Wednesday.
Anglo American and Outokumpu Oyj rose to lead mining stocks higher as industrial metals increased on the back of China's RRR cut.
Petrofac slumped after saying it expects a further loss on its Shetland gas project this year, due to delays and higher costs. |
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| | US Market Report | | US close: stocks close lower on Chinese regulations and inflation concerns US stock plummeted on Friday as new Chinese stock-market regulations, rising inflation and fears of a Greek default spooked investors.
At close, the Dow Jones Industrial Average was down 279.67 points at 17,826.1, while the S&P 500 lost 23.83 points to 2,081.16 and the Nasdaq declined 75.98 points to 4,931.81.
The Securities Association of China clamped down on the use shadow financing to buy equities and increased the supply of shares for short sellers. Regulators also banned the involvement of the margin trading business of brokerages in umbrella trusts and said that fund managers can lend shares for short selling.
"The China news shows there was a lot of leverage in that market and there's a lot of leverage in ours, it shows how vulnerable the market can be when that's the case," said Matt Maley, an equity strategist at Miller Tabak & Co.
An outage of Bloomberg terminals coinciding with the close of Asian markets also caused chaos among traders.
In economic data, the US consumer price index (CPI) slipped by 0.1% year-on-year in March, dragged down by lower electricity and gas prices, though it registered a 0.2% increase from the previous month. Economists had been calling for increases of 0.3% month-on-month and 0.1% year-on-year.
Figures released by the US Bureau of Labor Statistics showed the core rate of inflation, which strips out the often volatile food and energy categories, rose by 0.2%.
American Express plummeted to its lowest level since 2013 in early trading, after quarterly revenue fell short of forecasts, but the stock ended flat.
Advanced Micro Systems shares plunged after the chip-maker posted weaker revenue and a wider-fiscal loss in the first quarter.
Mattel shares were initially boosted as the toy maker revealed sales declines in its Barbie and Fisher-Price products had slowed and first quarter losses were narrower than expected, but said gains disappeared in later trading.
Oil futures were under pressure, but were on track to record a hefty weekly gains. Meanwhile, gold prices were higher as investors sought safer territory.
S&P 500 - Risers
Mattel Inc. (MAT) $26.75 +5.84%
Mylan Inc. (MYL) $69.82 +4.46%
Southwestern Energy Co. (SWN) $27.14 +2.80%
CSX Corp. (CSX) $33.30 +2.71%
Seagate Technology Plc (STX) $57.43 +2.63%
Bristol-Myers Squibb (BMY) $65.35 +2.62%
Hudson City Bancorp Inc. (HCBK) $9.50 +2.15%
EMC Corp. (EMC) $26.61 +2.15%
Host Hotels & Resorts Inc. (HST) $20.60 +1.78%
Netflix Inc. (NFLX) $571.81 +1.74%
S&P 500 - Fallers
Time Warner Cable Inc. (TWC) $149.61 -5.43%
American Express Co. (AXP) $77.35 -4.40%
Denbury Resources Inc. (DNR) $9.03 -4.04%
Nabors Industries Ltd. (NBR) $14.73 -3.91%
PVH Corp. (PVH) $103.74 -3.62%
Transocean Ltd. (RIG) $17.98 -3.33%
Noble Corporation plc (NE) $16.93 -3.20%
GameStop Corp. (GME) $39.66 -3.13%
Lennar Corp. Class A (LEN) $48.59 -3.11%
Salesforce.Com Inc. (CRM) $65.82 -3.08%
Dow Jones I.A - Risers
Dow Jones I.A - Fallers
American Express Co. (AXP) $77.35 -4.40%
Travelers Company Inc. (TRV) $105.40 -3.01%
3M Co. (MMM) $161.72 -2.51%
Cisco Systems Inc. (CSCO) $27.92 -2.40%
Unitedhealth Group Inc. (UNH) $118.71 -2.38%
United Technologies Corp. (UTX) $115.11 -2.02%
Visa Inc. (V) $64.52 -1.72%
Wal-Mart Stores Inc. (WMT) $77.88 -1.72%
Merck & Co. Inc. (MRK) $56.90 -1.63%
Boeing Co. (BA) $149.60 -1.56%
Nasdaq 100 - Risers
Mattel Inc. (MAT) $26.75 +5.84%
Mylan Inc. (MYL) $69.82 +4.46%
Seagate Technology Plc (STX) $57.43 +2.63%
Netflix Inc. (NFLX) $571.81 +1.74%
Western Digital Corp. (WDC) $99.45 +1.66%
Altera Corp. (ALTR) $44.02 +1.55%
Tractor Supply Company (TSCO) $87.00 +0.61%
Baidu Inc. (BIDU) $207.92 +0.49%
Micron Technology Inc. (MU) $28.03 +0.07%
Sigma-Aldrich Corp. (SIAL) $138.37 +0.05%
Nasdaq 100 - Fallers
Vimpelcom Ltd Ads (VIP) $5.67 -4.71%
Check Point Software Technologies Ltd. (CHKP) $81.75 -3.55%
Vertex Pharmaceuticals Inc. (VRTX) $125.07 -3.00%
Ross Stores Inc. (ROST) $100.40 -2.96%
Yahoo! Inc. (YHOO) $44.45 -2.91%
Cognizant Technology Solutions Corp. (CTSH) $60.70 -2.80%
Avago Technologies Ltd. (AVGO) $121.85 -2.78%
Amazon.Com Inc. (AMZN) $375.52 -2.73%
Adobe Systems Inc. (ADBE) $73.16 -2.65% |
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| | Newspaper Round Up | | Monday newspaper round-up: Greece, China, Deutsche Bank ECB president Mario Draghi has said that while a potential Grexit would be damaging to the Eurozone, the currency bloc is "no longer vulnerable to the immediate chain-reaction seen in earlier phases of the debt crisis", writes The Telegraph.
The decision by the People's Bank of China to cut the reserve requirement ratio by one percentage point failed to spark a rally among Asian markets on Monday, the Financial Times reports.
Deutsche Bank is reportedly considering selling it mass-market retail operation, Postbank, and cutting €200bn in investment-banking assets, The Wall Street Journal said.
HSBC's annual meeting this week comes amid increasing pressure from investors who want the bank to leave London because of rising British taxes, The Times said.
According to Rightmove, the average asking price of a home across the UK rose in April to an all-time high of just over £286,000, reports The Guardian.
Tesco's former corporate broker, JPMorgan Cazenove, has claimed that the supermarket will have to raise cash to drive sales and plug a £5bn pension deficit, The Times writes.
According to The Guardian, Co-op chairman Allan Leighton has said its food division cannot fully commit to Fairtrade given the tough competition in the supermarket industry and its shift towards convenience stores. | | |
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