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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 slip after strong start, Tesco gains despite weak results After a brief stint in positive territory, UK stock markets dropped on Wednesday morning as the FTSE 100 came close to a record high, despite a surprisingly positive reaction to Tesco's worse-than-expected annual results. The FTSE 100, which touched a high of 7,092.34 early on, had dropped 0.58% to 7,021.69 within the opening hour as financial stocks weakened. The index set a new all-time closing high of 7,096.78 last week.
Stocks had started on the front foot after a strong performance overnight in Japan, with the Nikkei benchmark index rising 1.1% to close above 20,000 for the first time in 15 years. Gains came the Japanese trade balance jumped to a surplus of 229.3bn yen (£1.3bn) in March from a deficit of 424.6bn yen previously.
"This is the first trade balance surplus for 12 years, showing strength has returned to the Japanese export market after the onset of a weaker Yen leading up to March," said TradeNext trader Rocky Muddar.
Wednesday's session will be quiet in terms of economic data, with only the Bank of England meeting minutes and US housing figures due for release.
Etoro analyst James Hughes said the BoE minutes "should be a non-event with no change expected in the voting" after members last month voted unanimously to maintain rates.
Tesco and Rolls-Royce rise
Full-year results from Tesco showed a larger-than-expected pre-tax loss of £6.4bn - the biggest in retail history - though the stock was in demand early on. Chief executive Dave Lewis said that the market was "still challenging" though the supermarket did see like-for-like sales trends improving in the fourth quarter.
"Luckily for Lewis, investors still believe in his ability to turn Tesco around, with the supermarket seeing mild gains after the bell," said Spreadex analyst Connor Campbell.
Sector peers Morrisons and Sainsbury's were both trading in the red.
Engine maker Rolls-Royce rose strongly 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 gained after saying group sales were up 7.2% in the first quarter despite strong comparators with last year.
Financials were providing a drag on markets early on with Hargreaves Lansdown, Standard Chartered, Schroders and HSBC among the worst performers. Jefferies was weighing on Hargreaves Lansdown after cutting its rating on the stock to 'hold'.
BHP Billiton was flat after announcing it would postpone some plans to increase an iron ore project. Nevertheless, the company revealed record levels of iron ore and coal production for the nine months of its financial year.
Media group Reed Elsevier declined despite saying in a first-quarter statement that it was confident of delivering "another year of underlying revenue, profit, and earnings growth in 2015". |
| Market Movers
techMARK 3,235.36 -0.03%
FTSE 100 7,021.69 -0.58%
FTSE 250 17,637.74 -0.42%
FTSE 100 - Risers
Rolls-Royce Holdings (RR.) 1,040.00p +3.28%
Tesco (TSCO) 239.55p +2.04%
Travis Perkins (TPK) 2,060.00p +2.03%
BT Group (BT.A) 462.70p +1.28%
Rio Tinto (RIO) 2,834.00p +0.78%
G4S (GFS) 303.10p +0.63%
Sage Group (SGE) 481.60p +0.61%
Hikma Pharmaceuticals (HIK) 2,107.00p +0.48%
Smith & Nephew (SN.) 1,170.00p +0.34%
3i Group (III) 504.00p +0.30%
FTSE 100 - Fallers
Hargreaves Lansdown (HL.) 1,193.00p -3.32%
Ashtead Group (AHT) 1,127.00p -3.10%
National Grid (NG.) 881.00p -1.77%
GlaxoSmithKline (GSK) 1,549.00p -1.65%
Pearson (PSON) 1,386.00p -1.63%
Burberry Group (BRBY) 1,792.00p -1.59%
SSE (SSE) 1,552.00p -1.52%
Schroders (SDR) 3,283.00p -1.38%
Intu Properties (INTU) 348.50p -1.30%
Standard Chartered (STAN) 1,051.50p -1.27%
FTSE 250 - Risers
Croda International (CRDA) 3,009.00p +3.54%
Playtech (PTEC) 836.50p +2.89%
Infinis Energy (INFI) 187.90p +2.12%
UDG Healthcare Public Limited Company (UDG) 519.00p +1.67%
Fidelity China Special Situations (FCSS) 170.00p +1.49%
COLT Group SA (COLT) 146.30p +1.46%
AO World (AO.) 186.60p +1.41%
Inmarsat (ISAT) 993.50p +1.33%
Ocado Group (OCDO) 351.70p +1.21%
Computacenter (CCC) 682.00p +1.19%
FTSE 250 - Fallers
Cairn Energy (CNE) 172.00p -3.48%
Britvic (BVIC) 726.00p -3.20%
Tate & Lyle (TATE) 624.00p -2.88%
Premier Oil (PMO) 161.70p -2.65%
Amec Foster Wheeler (AMFW) 923.50p -2.17%
Ophir Energy (OPHR) 153.20p -2.11%
Evraz (EVR) 186.40p -2.00%
RPS Group (RPS) 243.90p -1.93%
Ashmore Group (ASHM) 305.60p -1.89% |
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| | UK Event Calendar | | Wednesday 22 April
INTERIMS
Connect Group, Fenner, Punch Taverns
INTERIM DIVIDEND PAYMENT DATE
Close Brothers Group, Plexus Holdings
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Confidence Indicator (EU) (10:00)
Crude Oil Inventories (US) (15:30)
Existing Home Sales (US) (15:00)
House Price Index (US) (15:00)
MBA Mortgage Applications (US) (12:00)
GMS
Playtech, Rank Group
FINALS
Gaming Realms, Tesco
IMSS
Ladbrokes, Reed Elsevier, Travis Perkins
AGMS
Audioboom Group, Canadian General Investments Ltd., Croda International, Drax Group, Hammerson, Management Consulting Group, Petards Group
TRADING ANNOUNCEMENTS
Sports Direct International
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Minutes (09:30)
Q1
The Commercial Bank of Qatar (Q.S.C) GDR (Reg S), Torchmark Corp. |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Equities mostly higher as investors shrug off Greek debt woes European equities were mostly higher as the market shrugged off reports Greece is running out of cash as hopes of an imminent deal with creditors faded. Jeroen Dijsselbloem, Dutch finance minister and Eurogroup head, said an agreement between Athens and its creditors was expected in coming weeks but stressed that "money is starting to run out".
Greece owes the International Monetary Fund debt repayments on 1 May and 12 May.
"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," said Connor Campbell, financial analyst at Spreadex.
The euro rose 0.15% to $1.0752.
In the UK, the Bank of England at 09:30 BST releases minutes of its 9 April meeting when policymakers decided to maintain key interest rates at 0.5% and asset purchases at £375bn. The minutes will reveal the reasoning behind the decision and how many policymakers supported the move.
A report at 15:00 BST is forecast to show Eurozone consumer confidence improved in April. The index is expected to rise to -2.5 from -3.7 in March.
US existing home sales may have increased 3.1% in March, another report at 15:00 BST is expected to reveal.
Company-wise Tesco suffered 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. Shares rose in early morning trade.
Volvo AB and Rolls-Royce Holdings jumped after the companies named new chief executive officers.
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.
Kering SA slumped as it reported a fall in sales at its Gucci brand that was worse than forecast.
Cie Financiere Richemont SA dropped after saying it expects a profit decline for the year ended in March. |
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| | US Market Report | | US close: stocks mixed on influx of earnings reports US stocks were mixed on Tuesday, largely unable to maintain Monday's gains as as investors grappled with a plethora of earnings reports. At close, The Dow Jones Industrial Average was down 85.3 points and the S&P 500 down 3.11. Meanwhile, the Nasdaq gained 19.5 points, buoyed by merger activity in the biotechnology industry.
Corporate reports were varied, with analysts commenting that the trend of strong earnings offset by weaker revenues was damaging in the long term.
"I think the trend is clear. The strong dollar and mediocre global growth are having an impact," warned Peter Boockvar, chief market analyst at The Lindsey Group.
Jerry Braakman, chief investment officer at First American Trust, pointed out that many portfolio managers are concerned high valuations in the face of deteriorating earnings, as they question the longevity of current growth.
"Gains in U.S. equities since the start of 2009 have been largely due to multiple expansion and any further expansion will put equities into dangerous territory," he said.
The CBOE Volatility Index (VIX), generally held to be the best gauge of fear in the market, traded near 13.
In international markets, Japanese and Chinese stocks closed in positive terrirtory, joined by Europe.
However, Greece's Athex Composite Index was a an exception, declining on fears Greece could soon find itself out of cash. Consequentially, the European Central Bank (ECB) is considering measures to restrict support for Greek banks as part of its emergency liquidity assitance.
Over 32% of the S&P 500 companies will publish results during the week, including tech giants Microsoft, Apple and Google.
In earnings news, Harley Davidson was in the red after slashing its shipment outlook for the year.
Under Armour shares were also trading lower, as sales dropped below expectations due to acquisition costs and currency volatility.
DuPont & Co slumped after reporting weaker first-quarter earnings, a result of a stronger dollar that is likely to also impact full year earnings.
Teva Pahramceuticals was boosted after announcing it is offering to buy Mylan N.V., which also surged, for $82 per share in cash and stock.
Crude oil futures slipped on concerns about production levels in the US and in the Organization of the Petroleum Exporting Countries, while gold futures edged higher and the ICE dollar index remained flat.
S&P 500 - Risers
Allegheny Technologies Inc. (ATI) $34.68 +14.46%
Mylan Inc. (MYL) $73.87 +8.56%
Lam Research Corp. (LRCX) $78.09 +8.47%
Vertex Pharmaceuticals Inc. (VRTX) $132.39 +5.45%
Kimberly-Clark Corp. (KMB) $113.04 +5.29%
PACCAR Inc. (PCAR) $66.83 +4.62%
Gilead Sciences Inc. (GILD) $105.19 +4.51%
Harris Corp. (HRS) $81.97 +3.37%
CenturyLink Inc. (CTL) $36.33 +3.14%
Electronic Arts Inc. (EA) $59.01 +3.00%
S&P 500 - Fallers
Harley-Davidson Inc. (HOG) $55.66 -9.89%
Denbury Resources Inc. (DNR) $8.47 -5.78%
Transocean Ltd. (RIG) $17.00 -5.63%
Peabody Energy Corp. (BTU) $4.80 -5.60%
Chesapeake Energy Corp. (CHK) $14.59 -4.64%
Noble Corporation plc (NE) $16.02 -4.59%
Under Armour Inc. Class A (UA) $83.74 -4.59%
FMC Technologies Inc. (FTI) $37.80 -4.30%
Travelers Company Inc. (TRV) $101.66 -4.22%
International Paper Co. (IP) $52.55 -3.85%
Dow Jones I.A - Risers
Visa Inc. (V) $65.42 +1.08%
Cisco Systems Inc. (CSCO) $28.74 +0.90%
Unitedhealth Group Inc. (UNH) $119.31 +0.62%
Boeing Co. (BA) $153.46 +0.52%
United Technologies Corp. (UTX) $117.03 +0.45%
Nike Inc. (NKE) $100.29 +0.30%
Coca-Cola Co. (KO) $40.78 +0.30%
Home Depot Inc. (HD) $113.17 +0.27%
Procter & Gamble Co. (PG) $83.08 +0.25%
American Express Co. (AXP) $77.33 +0.13%
Dow Jones I.A - Fallers
Travelers Company Inc. (TRV) $101.66 -4.22%
E.I. du Pont de Nemours and Co. (DD) $70.61 -3.06%
General Electric Co. (GE) $26.61 -1.50%
JP Morgan Chase & Co. (JPM) $62.34 -1.42%
McDonald's Corp. (MCD) $94.89 -1.34%
International Business Machines Corp. (IBM) $164.30 -1.12%
Intel Corp. (INTC) $32.39 -1.04%
Caterpillar Inc. (CAT) $83.87 -0.86%
Goldman Sachs Group Inc. (GS) $196.91 -0.60%
Microsoft Corp. (MSFT) $42.65 -0.59%
Nasdaq 100 - Risers
Mylan Inc. (MYL) $73.87 +8.56%
Vertex Pharmaceuticals Inc. (VRTX) $132.39 +5.45%
PACCAR Inc. (PCAR) $66.83 +4.62%
Gilead Sciences Inc. (GILD) $105.19 +4.51%
Illumina Inc. (ILMN) $199.41 +3.22%
Applied Materials Inc. (AMAT) $22.31 +2.53%
Tractor Supply Company (TSCO) $90.66 +2.41%
Akamai Technologies Inc. (AKAM) $75.21 +2.38%
Regeneron Pharmaceuticals Inc. (REGN) $462.92 +2.32%
Vimpelcom Ltd Ads (VIP) $5.77 +2.12%
Nasdaq 100 - Fallers
Western Digital Corp. (WDC) $99.67 -1.88%
Wynn Resorts Ltd. (WYNN) $126.80 -1.67%
Discovery Communications Inc. Class A (DISCA) $33.49 -1.39%
Mondelez International Inc. (MDLZ) $36.51 -1.31%
Seagate Technology Plc (STX) $58.43 -1.19%
Netflix Inc. (NFLX) $560.78 -1.16%
Intuitive Surgical Inc. (ISRG) $546.91 -1.10%
Intel Corp. (INTC) $32.39 -1.04%
Keurig Green Mountain Inc (GMCR) $112.32 -0.71% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: BP, Yahoo!, Labour BP chief executive Bob Dudley has quashed speculation that he is looking for a megamerger, according to the Financial Times, cooling rumours that Shell's BG Group takeover could trigger a wave of massive deals in the oil industry. Profits at internet giant Yahoo! declined in the quarter ended 31 March with results missing analysts' forecasts as growth in online advertising was offset by higher payments to websites that send readers to the site, reports The Telegraph.
According to Goldman Sachs, a Labour-led government is likely to spark a sell-off on financial markets given the party's plans to freeze energy bills, raise taxes and curb zero-hour contracts, the Financial Times writes.
Navinder Singh Sarao, a London-based futures trader, was arrested on Tuesday and faces extradition to the US after being accused of helping to cause the 'flash crash' five years ago, reports The Guardian.
"Companies that pursue bumper merger and acquisitions in Britain will have to pay more to go formal with their offers under a new set of charges being pushed through by the Takeover Panel," The Times writes.
Pay-day lender Wonga is reportedly looking at a possible name change to overhaul its brand after a series of scandals and tougher regulation let to a £37m loss in 2014, according to The Guardian. | | |
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