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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: IAG, RBS and Schroders lead UK markets lower UK stock markets picked up where they left off on Thursday, falling for the third straight day on the back of mostly worse-than-expected corporate earnings and hawkish comments from the Federal Reserve. The FTSE 100 was trading 0.43% lower at 6,916.69 early on, with heavyweights IAG, RBS and Schroders providing a drag.
The index, which has not closed below current levels since 2 April, continued to pull back from its record closing high of 7,103.98 on Monday.
The Federal Open Market Committee was in focus for UK investors after the US central bank announced its policy decision after the close on Wednesday.
Policymakers issued a cautiously optimistic outlook on the economy in their statement, saying that the current economic slowdown is only temporary. Data on Wednesday showed that annualised US gross domestic product growth slowed to just 0.2% in the first quarter from 2.2% previously.
Analysts at Danske Bank reckon that the Fed is still on track to hike rates by 25 basis points in September.
However, Barclays said that the statement still left the door open for a rate hike as soon as June: "In our view, the lack of any specific calendar time suggests June will be a 'live' meeting, where rate hike deliberations will begin in more earnest."
IAG, RBS and Schroders fall
Airline conglomerate IAG underwhelmed despite making its first-ever profit in the first quarter. The company beat expectations with an operating profit of €25m, compared with a €150m loss the year before.
Royal Bank of Scotland made a £446m loss in the first quarter of the year, more than double what had been feared as it was hit by £453m of restructuring costs and set aside £856m for litigation and conduct charges.
Financial services giant Schroders also fell as profits for the first quarter missed forecasts. The company did however beat estimated with a 6.5% increase in assets under management to £319.5bn.
Royal Dutch Shell revealed a 56% drop in first-quarter earnings to $3.25bn but that wasn't as bad as expected, helping the stock higher early on. Shell also shaved its capital investment budget for 2015 by $2bn to "$33bn or less".
Medical services group Smith & Nephew edged higher as it reported a slight increase in first quarter revenue and reiterated its expectations for 2015.
Shares in RPS Group dropped sharply after the industrial consultancy outfit said the continuing volatility in the oil and gas sector meant its energy business had a slower-than-expected start to the year.
Zoopla, the residential property website group, soared after agreeing to acquire utility price comparison site uSwitch for up to £190m.
A number of stocks were trading lower after going ex-dividend, including Centrica, Fresnillo, ITV, Reed Elsevier and Travis Perkins. |
| | Market Movers
techMARK 3,164.56 -0.71%
FTSE 100 6,916.69 -0.43%
FTSE 250 17,379.37 -0.58%
FTSE 100 - Risers
Royal Mail (RMG) 456.10p +2.68%
CRH (CRH) 1,854.00p +1.70%
Associated British Foods (ABF) 2,829.00p +1.36%
Royal Dutch Shell 'B' (RDSB) 2,088.00p +0.92%
Royal Dutch Shell 'A' (RDSA) 2,068.00p +0.78%
Tesco (TSCO) 222.00p +0.70%
Smiths Group (SMIN) 1,156.00p +0.52%
National Grid (NG.) 882.30p +0.44%
BG Group (BG.) 1,170.00p +0.39%
Sainsbury (J) (SBRY) 269.30p +0.37%
FTSE 100 - Fallers
ITV (ITV) 249.80p -5.20%
Centrica (CNA) 256.90p -4.00%
International Consolidated Airlines Group SA (CDI) (IAG) 540.00p -3.40%
Royal Bank of Scotland Group (RBS) 340.20p -2.66%
Reed Elsevier (REL) 1,062.00p -2.48%
Meggitt (MGGT) 523.50p -2.15%
InterContinental Hotels Group (IHG) 2,787.00p -2.00%
Hargreaves Lansdown (HL.) 1,210.00p -1.71%
Schroders (SDR) 3,206.00p -1.63%
Experian (EXPN) 1,154.00p -1.45%
FTSE 250 - Risers
Zoopla Property Group (WI) (ZPLA) 210.00p +13.51%
Countrywide (CWD) 525.00p +2.14%
Premier Oil (PMO) 177.90p +2.01%
Moneysupermarket.com Group (MONY) 280.20p +1.82%
Bellway (BWY) 1,973.00p +1.60%
AL Noor Hospitals Group (ANH) 896.00p +1.24%
Grafton Group Units (GFTU) 827.50p +1.22%
Amec Foster Wheeler (AMFW) 920.00p +1.21%
Galliford Try (GFRD) 1,486.00p +1.09%
Cairn Energy (CNE) 180.30p +1.01%
FTSE 250 - Fallers
Ophir Energy (OPHR) 141.50p -12.60%
Fisher (James) & Sons (FSJ) 1,179.00p -9.52%
RPS Group (RPS) 216.70p -8.22%
Berendsen (BRSN) 1,047.00p -3.86%
William Hill (WMH) 353.90p -3.49%
Booker Group (BOK) 144.00p -3.36%
Informa (INF) 542.00p -3.21%
Cobham (COB) 293.20p -3.04%
Card Factory (CARD) 320.40p -2.94% |
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| | UK Event Calendar | | Thursday 30 April
INTERIMS
Superglass Holdings
INTERIM DIVIDEND PAYMENT DATE
Abbey, Coral Products, Manchester & London Investment Trust, Wolseley
INTERIM EX-DIVIDEND DATE
BlackRock Greater Europe Inv Trust, Card Factory, Fidelity Special Values, Royal Bank of Scotland 11% Cum. Prf, Royal Bank of Scotland 5.5% Cum. Prf., SCS Group , Wetherspoon (J.D.)
QUARTERLY PAYMENT DATE
Albion Technology & General VCT, Assura , JP Morgan Chase & Co, Middlefield Canadian Income PCC, Schroder Income Growth Fund, TwentyFour Select Monthly Income Fund Limited
QUARTERLY EX-DIVIDEND DATE
City of London Inv Trust, JPMorgan Claverhouse Inv Trust
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Chicago PMI (US) (14:45)
Continuing Claims (US) (13:30)
Initial Jobless Claims (US) (13:30)
International Reserves (EU) (11:00)
Personal Consumption Expenditures (US) (13:30)
Personal Income (US) (13:30)
Personal Spending (US) (13:30)
Unemployment Rate (EU) (10:00)
Unemployment Rate (GER) (08:55)
Q3
Kofax Limited (DI)
GMS
Bank Pekao SA GDS (Reg S), BT Group, Sphere Medical Holding
FINALS
Access Intelligence, GLOBO, Goldenport Holdings Inc. (DI), Harvey Nash Group, JQW, Saga
ANNUAL REPORT
Kazakhstan Kagazy GDR (Reg S), Matomy Media Group Limited (DI) , Plaza Centers NV
IMSS
Berendsen, Fisher (James) & Sons, Howden Joinery Group, Kaz Minerals , Royal Bank of Scotland Group, Schroders, Schroders (Non-Voting), Synthomer, Tullow Oil
SPECIAL DIVIDEND PAYMENT DATE
Brit , Manchester & London Investment Trust
SPECIAL EX-DIVIDEND PAYMENT DATE
Foxtons Group , ITV
EGMS
Resource Holding Management Limited (DI)
AGMS
Aga Rangemaster Group, Alkane Energy, Anglo Pacific Group, ARM Holdings, BBGI SICAV S.A. (DI), BBGI SICAV S.A. (DI), Berendsen, BlackRock Latin American Inv Trust, COLT Group SA, Diamond Bank GDR (Reg S), Everyman Media Group , FDM Group (Holdings), Fisher (James) & Sons, Fyffes, GLI Finance Limited, Great Western Mining Corporation, H&T Group, Henderson Group, IndigoVision Group, International Personal Finance, Kalimantan Gold Corp Ltd. (DI), Kerry Group 'A' Shares, LSL Property Services, LSL Property Services, LSL Property Services, Modern Water, Moneysupermarket.com Group, RIT Capital Partners, Schroders, Schroders (Non-Voting), STV Group, Synthomer, Tullow Oil, Ultra Electronics Holdings, Unilever, Witan Inv Trust
TRADING ANNOUNCEMENTS
Smith & Nephew
UK ECONOMIC ANNOUNCEMENTS
Consumer Confidence (09:30)
GFK Consumer Confidence (00:05)
FINAL DIVIDEND PAYMENT DATE
Asian Total Return Investment Company, Brit , Dragon Oil, Wynnstay Group
FINAL EX-DIVIDEND DATE
Aer Lingus Group, Capital Drilling Ltd. (DI), Card Factory, Cello Group, Cenkos Securities, Centrica, Cobham, Croda International, Dialight, Dunedin Enterprise Investment Trust, F&C Private Equity Trust, Ferrexpo, Foxtons Group , Fresnillo, Henry Boot, Highland Gold Mining Ltd., Holders Technology, Hunting, Hydrogen Group, Informa, ITV, McColl's Retail Group , Merlin Entertainments , Morgan Sindall Group, National Express Group, Neptune-Calculus Income & Growth VCT, Polymetal International, Porvair, Quixant, Reed Elsevier, Regus, Rexam, SDL, Senior, Servelec Group , SIG, Spirax-Sarco Engineering, StatPro Group, SThree, Total Produce, Travis Perkins, Weir Group, William Hill
Q1
First Quantum Minerals Ltd., International Consolidated Airlines Group SA (CDI), Lancashire Holdings Limited, Royal Dutch Shell 'A', Royal Dutch Shell 'A', Royal Dutch Shell 'B', Royal Dutch Shell 'B', Shire Plc, Smith & Nephew
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Equities decline ahead of Eurozone inflation figures European equities declined following a mixed message from the US Federal Reserve on interest rates.
The Fed decided to keep interest rates unchanged, as expected, and remained vague about the timing of the first hike.
The US central bank indicated it will raise rates soon so long as the economy continued to grow. The statement said the slowdown in economic growth was "transitory" and said it expects inflation to gradually rise towards 2% over the medium-term.
"As always, people are going to drill into the statement and interpret it in whatever way supports their own particular views," said Craig Erlam, senior market analyst at Oanda.
"This month's statement makes that very easy because the more dovish among us will focus on the acknowledgement that growth slowed in the winter months and inflation continues to run below the longer term objective."
Turning to Thursday's agenda, Eurozone inflation at 10:00 BST will be in focus with analysts expecting an improvement. The consumer price index is forecast to come in a zero growth in April compared to a year ago, up from a decline of 0.1% in March.
The European Central Bank has been trying to bring inflation back towards its target of just below 2% through its quantitative easing programme.
Eurozone labour market figures at 10:00 are also expected to show improvement with economists estimating the unemployment rate to have fallen to 11.2% in March from 11.3% in February.
The German unemployment fell 8,000 in April, less than the 15,000 drop predicted, while the jobless rate remained at 6.4%. German retail sales rose 3.5% year-on-year in March, better than the 3.1% increase that was forecast.
Meanwhile, euro-area officials have reportedly agreed to pursue negotiations on Greece on Thursday with the target of a preliminary deal by 3 May. It comes after Prime Minister Alexis Tsipras said he expected a deal by the end of next week after reshuffling the negotiating team.
The euro was up 1.05% to $1.1245.
Later the US sees the release of initial jobless claims and personal income figures.
RBS slides after quarterly loss
Royal Bank of Scotland slumped after posting a larger quarterly loss than analysts' estimated, mainly due to restructuring costs.
Sanofi rallied after reporting quarterly profit and sales that beat forecasts.
BASF SE gained after delivering first-quarter profit that exceeded consensus expectations.
Nokia Oyj edged lower after posting first-quarter profit at its networks unit that trailed projections.
STMicroelectronics NV dropped after giving guidance on revenue and profit margins that was less than analysts' estimates. |
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| | US Market Report | | US close: Stocks slide after Fed's statement and disappointing GDP US stocks slid on Wednesday after the Federal Reserve said in a statement following its two-day policy meeting left open the chance of an interest-rate hike as early as June. The Dow Jones Industrial Average closed down 74.61 points to 18,035.53, while the S&P and the Nasdaq lost eight and 27 points respectively.
At the end of its two-day meeting, the Fed said it anticipates a rebound in the US economy after the sluggish winter months, remaining open to the possibility of an interest-rate increase as early as June.
However, the latest statement following Wednesday's meeting could indicate that the central back may want to delay the move, possibly until September.
Paul Ashworth, chief US economist at Capital Economics, maintained a positive outlook.
"We still think the Fed will start to raise rates in the second half of this year and, as wage growth and price inflation rebound, we anticipate that rates will rise much more rapidly next year than either the markets or the Fed currently expect," he said.
Analysts at Barclays claimed Wednesday's statement was in line with expectations and that an first rate hike in September remained the more plausible option.
"Our view remains that September is a more likely time for the first rate hike, but we expect several on the committee to argue for a rate hike in June, including Richmond Fed President Jeffrey Lacker, who is a voting member in 2015," they said in a note.
US gross domestic product (GDP) expanded by far less than expected over the first three months of the year, although some activity gauges had been hinting at just such an outcome.
GDP expanded at a 0.2% quarter-on-quarter annualised pace in the first three months of the year, well below the 1% expected by analysts and the 2.2% growth seen in the fourth quarter.
"The slowdown looks temporary, as a rebound from the first-quarter weakness is already being signalled by forward-looking survey data, but the sustainability of any upturn is by no means convincing yet," said Chris Williamson, chief economist at Markit.
"Policymakers will probably want to see how the economy performs in the second quarter before passing judgement on whether the time is right to start the process of normalising policy.
"That leaves September as the first realistic possibility of rates being hiked, providing of course that the economy bounces back in coming months."
US pending home sales rose for the third consecutive month in March, reaching the highest level since June 2013.
Figures released by the National Association of Realtors, showed the index rose 1.1% month-on-in March to a seasonally adjusted 108.6, in line with consensus expectations.
In corporate news, Twitter fell 8.94% after the group reported a wider-than-expected loss and sales missed estimates late on Tuesday.
The social media giant saw its target cut from $50 to $40 by analysts at Wedbush, while analysts at JP Morgan slashed their target from $67 and $55.
Time Warner rose 0.55% after its first-quarter profit and sales beat expectations, while wearable video cameras-maker GoPro soared 12.65% after it reported late on Tuesday that its first-quarter profit had jumped 52%.
Hilton Worldwide Holdings climbed 1.09% after reporting a 25% increase in first-quarter earnings, while sector peer Wynn Resorts plunged 16.49% after revealing on Tuesday it had swung to a loss.
Yelp plunged 13.8% in after-hour market after the group posted a $1.3m loss in the first quarter, even though revenue rose 55% year-on-year.
The dollar fell 0.64% and 1.3% against the pound and euro respectively and gained 0.18% against the yen, while gold futures slid 0.86% to $1,203.40.
Oil prices rebounded, with West Texas Intermediate jumping 2.4% to $58.48 a barrel, while Brent gained 1.4% to $65.58 a barrel.
S&P 500 - Risers
Genworth Financial Inc. (GNW) $8.92 +11.64%
Starwood Hotels & Resorts Worldwide Inc. (HOT) $87.53 +8.33%
Denbury Resources Inc. (DNR) $8.81 +7.97%
CONSOL Energy Inc. (CNX) $30.87 +6.78%
Transocean Ltd. (RIG) $17.55 +6.43%
Diamond Offshore Drilling Inc. (DO) $31.60 +5.37%
Avery Dennison Corp. (AVY) $54.61 +5.34%
Mondelez International Inc. (MDLZ) $38.70 +5.16%
Salesforce.Com Inc. (CRM) $70.28 +5.07%
Nabors Industries Ltd. (NBR) $16.47 +4.90%
S&P 500 - Fallers
Wynn Resorts Ltd. (WYNN) $108.77 -16.64%
United States Steel Corp. (X) $23.67 -11.61%
Windstream Holdings Inc (WIN) $10.99 -7.69%
Humana Inc. (HUM) $168.05 -7.21%
Adt Corp (ADT) $37.93 -5.01%
Waste Management Inc. (WM) $49.88 -4.94%
Garmin Ltd. (GRMN) $45.54 -4.11%
CIGNA Corp. (CI) $126.68 -3.82%
Owens-Illinois Inc. (OI) $24.19 -3.78%
Unitedhealth Group Inc. (UNH) $113.61 -3.38%
Dow Jones I.A - Risers
Caterpillar Inc. (CAT) $87.50 +1.51%
JP Morgan Chase & Co. (JPM) $63.60 +1.34%
Visa Inc. (V) $67.34 +0.85%
Chevron Corp. (CVX) $111.73 +0.55%
Goldman Sachs Group Inc. (GS) $198.56 +0.54%
Nike Inc. (NKE) $100.17 +0.31%
International Business Machines Corp. (IBM) $174.40 +0.28%
McDonald's Corp. (MCD) $97.02 +0.20%
Exxon Mobil Corp. (XOM) $87.87 +0.08%
Dow Jones I.A - Fallers
Unitedhealth Group Inc. (UNH) $113.61 -3.38%
Home Depot Inc. (HD) $108.71 -1.69%
Wal-Mart Stores Inc. (WMT) $77.88 -1.54%
Apple Inc. (AAPL) $128.64 -1.47%
Boeing Co. (BA) $146.15 -0.92%
Cisco Systems Inc. (CSCO) $29.05 -0.92%
3M Co. (MMM) $156.97 -0.86%
E.I. du Pont de Nemours and Co. (DD) $74.18 -0.86%
Travelers Company Inc. (TRV) $102.85 -0.80%
Procter & Gamble Co. (PG) $79.85 -0.71%
Nasdaq 100 - Risers
Verisk Analytics Inc. (VRSK) $76.85 +5.80%
Mondelez International Inc. (MDLZ) $38.70 +5.16%
Charter Communications Inc. (CHTR) $188.30 +3.29%
Mylan Inc. (MYL) $74.50 +2.46%
Biogen Inc (BIIB) $383.78 +2.43%
Discovery Communications Inc. Class A (DISCA) $32.19 +1.55%
Citrix Systems Inc. (CTXS) $68.52 +1.50%
Alexion Pharmaceuticals Inc. (ALXN) $173.61 +1.48%
Altera Corp. (ALTR) $40.72 +1.42%
Viacom Inc. Class B (VIAB) $72.27 +1.35%
Nasdaq 100 - Fallers
Wynn Resorts Ltd. (WYNN) $108.77 -16.64%
Garmin Ltd. (GRMN) $45.54 -4.11%
Dollar Tree Inc (DLTR) $77.47 -3.13%
Express Scripts Holding Co (ESRX) $84.79 -3.10%
Yahoo! Inc. (YHOO) $43.28 -2.39%
O'Reilly Automotive Inc. (ORLY) $220.96 -2.34%
Western Digital Corp. (WDC) $95.83 -2.11%
Ross Stores Inc. (ROST) $99.76 -2.03%
Autodesk Inc. (ADSK) $59.54 -1.85% |
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| | Newspaper Round Up | | Thursday newspaper round-up: Federal Reserve, Greece, Apple Watch "The economy's sharp first-quarter slowdown is giving Federal Reserve officials pause," writes the Wall Street Journal. At the Fed's policy meeting on Wednesday, the central bank's officials showed uncertainty about when the economy will rebound and clouded the outlook for the first rate hike. Greece's deputy prime minister Yannis Dragasakis has said the country could seal deal with creditors in early May, but said it was only likely to be a "minimum agreement" to unlock funds, the Guardian said.
According to the Wall Street Journal, a key component of the Apple Watch has been found to be defective, meaning that the tech giant will limit the availability of the new product. The so-called taptic engine component is made by China-based AAC Technologies.
Brazil has raised interest rates to a six-year high, lifting the Selic rate by 50 basis points to 13.25%, the Financial Times reports.
The Times has said that UK Oil & Gas and Evocutis, two companies led by David Lenigas, bought stakes in the Horse Hill development at elevated prices from a business with links to the well-known oil mogul.
Apple has warned the "material" impact from the European Commission's probe into Ireland's tax treatment of multinationals if it was found that Dublin's policies represented unfair state aid, the Telegraph reports.
Gatwick chairman Sir Roy McNulty told the Times that a close election or hung parliament will scupper Heathrow expansion plans. | | |
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