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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: Miners fall, but UK markets track US and Hong Kong stocks higher UK stocks advanced on Thursday morning following a decent performance on Wall Street and Hong Kong indices overnight. Reports that Greece will meet Thursday's deadline to pay back a €450m loan payment to the International Monetary Fund were also helping sentiment. "The payment has been scheduled and will go out later today," a government official told Reuters.
London's FTSE 100 was up 0.5% at 6,971.80 early on, though steep falls in the heavyweight mining sector were limiting upside.
US stocks finished in positive territory on Wednesday night after details of the 17-18 March Federal Open Market Committee meeting showed quite a large disparity among members on when to tighten policy. Some suggested moving as soon as June, while others preferred waiting until later in the year or even 2016, though the main consensus was that the pace of rate increases would likely be gradual.
What's more, that meeting took place before the release of the disappointing March employment report last week, which missed analysts' expectations by a long way and added to speculation that policymakers would hold off from hiking rates just yet.
"We view September as the likely timing for the first rate hike, with some probability that the committee waits until December should core inflation be dragged lower by falling import prices," said analyst Michael Gapen from Barclays.
Asian markets were mostly mixed on Thursday but Hong Kong's Hang Seng Index surged as much as 6.8% to its highest since January 2008 as investors from mainland China piled in.
BHP, Anglo lead miners lower
Shares in mining giants BHP Billiton and Anglo American slumped after the open after both Credit Suisse and Investec downgraded their ratings on both companies. Both banks expressed concerns about falls in iron ore and coal prices due to structural issues, namely a weaker Chinese economy, together with low cost supply.
Others in the sector such as Rio Tinto, Antofagasta and Glencore were also lower.
Burberry was heading higher as the British luxury brand had its target raised from 1,470p to 1,560p by JPMorgan Cazenove, though the bank maintained a 'neutral' rating.
The stock was also benefitting from positive readacross from sector peer Mulberry which said it expected full-year profits to be slightly ahead of forecasts following a series of warnings.
Hotels group IHG was in demand after Jefferies upgraded the stock to 'hold' and lifted its target from 2,000p to 2,400p.
Sausage-maker Cranswick impressed with a strong finish to its fiscal year, with total sales in the fourth quarter up 4% on the same period last year after its recent acquisition of Benson Park. Full-year underlying sales are expected to be flat, as City analysts expected.
Developer St Modwen Properties was higher after reporting that commercial contracts and planning agreements for the regeneration of the 57-acre New Convent Garden Market near Battersea have gone unconditional. Work is expected to start this summer. |
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| | Market Movers
techMARK 3,226.22 +0.72%
FTSE 100 6,971.80 +0.50%
FTSE 250 17,624.58 +0.36%
FTSE 100 - Risers
Burberry Group (BRBY) 1,804.00p +3.50%
Pearson (PSON) 1,470.00p +2.73%
InterContinental Hotels Group (IHG) 2,736.00p +2.32%
ARM Holdings (ARM) 1,147.00p +2.14%
Mondi (MNDI) 1,389.00p +2.13%
Compass Group (CPG) 1,202.00p +2.04%
Persimmon (PSN) 1,710.00p +1.79%
Hargreaves Lansdown (HL.) 1,206.00p +1.77%
HSBC Holdings (HSBA) 597.20p +1.74%
International Consolidated Airlines Group SA (CDI) (IAG) 600.50p +1.61%
FTSE 100 - Fallers
Anglo American (AAL) 991.30p -3.43%
BHP Billiton (BLT) 1,431.50p -2.55%
Standard Life (SL.) 470.10p -2.55%
Rio Tinto (RIO) 2,784.00p -2.44%
Aggreko (AGK) 1,571.00p -1.50%
Weir Group (WEIR) 1,740.00p -1.42%
Antofagasta (ANTO) 723.50p -1.30%
Intertek Group (ITRK) 2,572.00p -1.08%
Fresnillo (FRES) 680.00p -0.87%
St James's Place (STJ) 974.50p -0.81%
FTSE 250 - Risers
Euromoney Institutional Investor (ERM) 1,165.00p +2.73%
Henderson Group (HGG) 298.10p +2.40%
Smith (DS) (SMDS) 365.70p +2.09%
Fidelity China Special Situations (FCSS) 161.80p +2.02%
Rank Group (RNK) 189.70p +1.99%
Hays (HAS) 163.60p +1.93%
Ocado Group (OCDO) 357.60p +1.76%
PayPoint (PAY) 885.00p +1.72%
Cranswick (CWK) 1,424.00p +1.71%
BTG (BTG) 778.50p +1.70%
FTSE 250 - Fallers
RPS Group (RPS) 236.50p -3.43%
esure Group (ESUR) 213.40p -3.00%
Infinis Energy (INFI) 179.70p -2.86%
Hunting (HTG) 527.50p -2.41%
International Personal Finance (IPF) 478.80p -2.41%
PZ Cussons (PZC) 341.90p -2.37%
Catlin Group Ltd. (CGL) 704.50p -2.22%
Kaz Minerals (KAZ) 216.00p -2.17%
Rotork (ROR) 2,566.00p -2.06% |
| | UK Event Calendar | | Thursday 09 April
INTERIMS
Matchtech Group
INTERIM DIVIDEND PAYMENT DATE
JPMorgan Mid Cap Inv Trust, Oxford Instruments
INTERIM EX-DIVIDEND DATE
Animalcare Group, Begbies Traynor Group, Bioventix, Chrysalis VCT, Manchester & London Investment Trust, St Ives
QUARTERLY PAYMENT DATE
GlaxoSmithKline, XP Power Ltd. (DI)
QUARTERLY EX-DIVIDEND DATE
Albion Technology & General VCT, Marsh & Mclennan Cos Inc., Verizon Communications
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (GER) (07:00)
Continuing Claims (US) (13:30)
Current Account (GER) (07:00)
Industrial Production (GER) (11:00)
Initial Jobless Claims (US) (13:30)
Retail Price Index (GER) (07:00)
Wholesales Inventories (US) (15:00)
GMS
Highway Capital
FINALS
Eurasia Drilling Co Ltd GDR (Reg S), Gulf Keystone Petroleum Ltd.(DI), Netplay TV
ANNUAL REPORT
Hill & Smith Holdings, John Laing Group , Secure Trust Bank
IMSS
Hays
SPECIAL EX-DIVIDEND PAYMENT DATE
Catlin Group Ltd., Chrysalis VCT, GVC Holdings, Manchester & London Investment Trust, Next
AGMS
Athelney Trust, Intandem Films, Orange Polska S.A. GDR (Reg S), Smith & Nephew
UK ECONOMIC ANNOUNCEMENTS
Balance of Trade (09:30)
BoE Interest Rate Decision (12:00)
FINAL DIVIDEND PAYMENT DATE
Rio Tinto
FINAL EX-DIVIDEND DATE
4Imprint Group, Aberdeen UK Tracker Trust, Asian Total Return Investment Company, BBA Aviation, Berendsen, Chesnara, EMIS Group, esure Group, Fisher (James) & Sons, Friends Life Group Limited , GKN, Greggs, GVC Holdings, IDOX, IMI, International Personal Finance, Kerry Group 'A' Shares, Miton Group, Rotork, Shore Capital Group Ltd., Smurfit Kappa Group, St James's Place, Standard Life, Taylor Wimpey, Ultra Electronics Holdings, Vesuvius, Wood Group (John), XLMedia
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Equities up as German trade surplus expands more than forecast Better-than-expected German trade data and news that Greece will meet its debt obligations with the International Monetary Fund this week provided a boost to European equities in early morning trade. Germany's trade surplus jumped to €19.2bn in February from €15.9bn a month earlier, beating forecasts of €19bn, according to the Federal Statistic Office Destatis.
The surplus was supported by a 1.5% increase in exports while imports grew 1.8%, beating expectations for a 1% and 1.2% gain respectively.
A separate report showed German industrial production fell 0.3% in February, trailing estimates for a 0.6% rise.
The euro dropped 0.37% to $1.0741 following the report.
In other euro-area news, Greece will reportedly pay a €450m debt repayment to the International Monetary Fund (IMF) on Thursday.
A government official told Reuters the payment has been scheduled to go out later in the day.
Athens is in talks with the IMF and the EU on a package of reforms to unlock further aid.
In the UK, the Bank of England will release its latest policy decision at 11:00 GMT, but the market expects no surprises.
Stateside sees the publication of initial jobless claims in afternoon trade, which comes a day after minutes of the last Federal Reserve meeting showed policymakers were divided over the timing of the first interest rate hike since 2006.
Officials are monitoring data, including on the jobs market, to gauge whether the US economy is healthy enough to sustain a rate increase.
On the company front, Vivendi SA rallied after the French company agreed to pay an extra dividend of €2 per share to meet demands by Wall Street activist Peter Schoenfeld for more returns.
Lafarge SA and Holcim Ltd. gained as the cement makers agreed to appoint Eric Olsen to lead their soon-to-be merged company.
Oil benchmarks began Asian trading in the green on Thursday following overnight losses as record March production data from Saudi Arabia and a rise in US inventories knocked the prices down by nearly 3% overnight.
At 07:25 BST on Thursday, the WTI front month futures contract was trading up 1.07% or 54 cents at $50.96 per barrel while Brent was trading up 0.94% or 52 cents at $56.07. |
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| | US Market Report | | US close: Dow and S&P edge higher after release of Fed minutes US stocks edged slightly higher on Wednesday, after the minutes from the latest Federal Reserve meeting showed policymakers were split over the timing of a first hike in interest rates. The Dow Jones Industrial Average closed up 27.09 points to 17,902.51, while the S&P 500 and the Nasdaq closed up 5.57 and 31.88 points respectively.
The minutes of the Federal Open Market Committee's deliberations on 17 and 18 of March showed that several rate-setters preferred a June lift-off for the Fed funds rate, whereas others argued for delaying an increase further, while two members of the FOMC wanted to wait until 2016.
However, markets initially seemed to focus on the fact that "several participants judged that the economic data and outlook were likely to warrant beginning normalisation at the June meeting."
"The labour market data will play the key role in determining the exact liftoff date," said Paul Ashworth, chief US economist at Capital Economics.
"If we are right and employment growth rebounds in April and May, then a June rate hike might not be out of the question."
Ashworth added that the way Treasury yields reacted to a first rate hike could determine the Fed's policy in the medium to long term future.
"If Treasury yields soar in response to the first rate hike, then the Fed might pause for quite a while," he said.
"In contrast, if yields barely budge, which we think is the more likely reaction, then the Fed might gain the confidence to begin a more normal tightening cycle."
However, analysts at Barclays insisted that a hike in September was likelier.
"We view September as the likely timing for the first rate hike, with some probability that the committee waits until December should core inflation be dragged lower by falling import prices," they said in a note.
Meanwhile, the Mortgage Bankers Association said its seasonally adjusted index of application activity, which covers home purchase demand and refinancing demand, climbed 0.4% in the week ended 3 April.
Oil prices plummeted after data showed US oil inventories posted the largest one-week increase in 14 years, with West Texas Intermediate falling 5.9% to $50.97 a barrel, while Brent crude dropped 5.3% to $56.11 a barrel.
In company news, Royal Dutch Shell Group fell 3.42% after announcing it would buy BG Group in a deal worth almost $70bn, while the British company jumped 38.03%.
Internet TV network Netflix rose 4.22% after analysts at Wedbush said they expected "upside" to first-quarter earnings from international growth and cost reduction efforts.
Apple fell 0.48% after analysts at Societe Generale downgraded their rating on the stock to 'hold'.
Lightweight material manufacturer Alcoa unofficially kicked off the earnings the season after the close and rose 0.% in after hour trading after reporting better-than-expected first quarter earnings, while revenue grew 7% year-on-year.
The dollar slid back 0.13% against the yen after the Bank of Japan held its policy steady and fell 0.31% against the pound, but gained 0.32% against the euro, while gold futures fell 0.69% to $1,202.30.
S&P 500 - Risers
Perrigo Company plc (PRGO) $195.00 +18.39%
Mylan Inc. (MYL) $68.36 +14.76%
Netflix Inc. (NFLX) $441.35 +4.22%
Delta Airlines Inc. (DAL) $43.28 +3.94%
Dollar Tree Inc (DLTR) $83.53 +3.66%
Southwest Airlines Co. (LUV) $42.85 +3.65%
Yahoo! Inc. (YHOO) $45.17 +3.58%
Jabil Circuit Inc. (JBL) $23.93 +2.92%
Dollar General Corp (DG) $76.07 +2.88%
Vertex Pharmaceuticals Inc. (VRTX) $123.79 +2.76%
S&P 500 - Fallers
Peabody Energy Corp. (BTU) $5.08 -4.87%
Nabors Industries Ltd. (NBR) $14.21 -4.50%
Pentair plc (PNR) $62.21 -3.49%
Allegheny Technologies Inc. (ATI) $30.06 -3.33%
Ensco Plc. (ESV) $22.73 -3.32%
QEP Resources Inc (QEP) $22.19 -3.18%
Southwestern Energy Co. (SWN) $24.10 -2.98%
Murphy Oil Corp. (MUR) $49.03 -2.76%
Newfield Exploration Co (NFX) $36.10 -2.46%
Helmerich & Payne Inc. (HP) $71.28 -2.38%
Dow Jones I.A - Risers
Nike Inc. (NKE) $100.84 +1.23%
Home Depot Inc. (HD) $115.59 +1.13%
Visa Inc. (V) $66.51 +1.08%
Walt Disney Co. (DIS) $106.36 +0.88%
Unitedhealth Group Inc. (UNH) $118.16 +0.69%
Boeing Co. (BA) $153.36 +0.68%
Wal-Mart Stores Inc. (WMT) $81.03 +0.66%
Cisco Systems Inc. (CSCO) $27.55 +0.58%
McDonald's Corp. (MCD) $96.85 +0.52%
Procter & Gamble Co. (PG) $82.77 +0.46%
Dow Jones I.A - Fallers
Exxon Mobil Corp. (XOM) $84.06 -1.97%
Chevron Corp. (CVX) $106.66 -1.73%
Merck & Co. Inc. (MRK) $57.15 -0.49%
Apple Inc. (AAPL) $125.60 -0.33%
Coca-Cola Co. (KO) $40.89 -0.29%
Verizon Communications Inc. (VZ) $49.13 -0.28%
Microsoft Corp. (MSFT) $41.42 -0.26%
International Business Machines Corp. (IBM) $161.80 -0.17%
Caterpillar Inc. (CAT) $80.44 -0.12%
General Electric Co. (GE) $25.01 -0.04%
Nasdaq 100 - Risers
Mylan Inc. (MYL) $68.36 +14.76%
Baidu Inc. (BIDU) $212.93 +4.44%
Netflix Inc. (NFLX) $441.35 +4.22%
Dollar Tree Inc (DLTR) $83.53 +3.66%
Yahoo! Inc. (YHOO) $45.17 +3.58%
Vertex Pharmaceuticals Inc. (VRTX) $123.79 +2.76%
Regeneron Pharmaceuticals Inc. (REGN) $453.19 +2.61%
Keurig Green Mountain Inc (GMCR) $117.70 +2.59%
Celgene Corp. (CELG) $115.18 +2.18%
Tesla Motors Inc (TSLA) $207.67 +2.17%
Nasdaq 100 - Fallers
Vimpelcom Ltd Ads (VIP) $5.71 -2.73%
Sba Communications Corp. (SBAC) $118.05 -1.30%
Kraft Foods Group, Inc. (KRFT) $88.38 -1.07%
Seagate Technology Plc (STX) $53.31 -0.82%
Broadcom Corp. (BRCM) $42.97 -0.47%
Twenty-First Century Fox Inc Class A (FOXA) $34.13 -0.35%
Whole Foods Market Inc. (WFM) $51.35 -0.34%
Apple Inc. (AAPL) $125.60 -0.33%
Adobe Systems Inc. (ADBE) $75.44 -0.28% |
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| | Newspaper Round Up | | Thursday newspaper round-up: FOMC minutes, Glencore/Rio Tinto, Greece Minutes from the latest FOMC meeting released on Wednesday showed that policymakers were split several ways over when to start tightening monetary policy, the Financial Times said. Some suggested a hike as soon as June, while others preferred waiting until later this year or into 2016. Australian treasurer Joe Hockey has said he would block a potential takeover of Rio Tinto by Glencore because Australia would lose too much tax revenue if the deal went through, writes The Times.
Vladimir Putin has confirmed that Greece has not asked Russia for financial aid following a meeting with Greek prime minister Alexis Tsipras in Moscow, The Guardian said. However, he did say that Russia is willing to talk about investing in projects in Greece.
The Hang Seng Index surpassed 27,000 for the first time since January 2008 on Thursday, rising as much as 6.8%, as investors from mainland China poured in, reports the Financial Times. "Trading volumes in the first half-hour were 400 per cent higher than the 30-day average as retail investors from mainland China's market piled in via the Shanghai-Hong Kong Stock Connect," the paper said.
The British Chambers of Commerce quarterly economic survey found "somewhat weaker" activity in most areas of the UK economy in the first three months of the year, according to The Scotsman.
"Takeovers are booming as companies gain more confidence about the economy, use stockpiles of cash to reach for future growth and get boosts from low interest rates and the surging stock market," The Wall Street Journal writes. At the current pace, M&A volumes for the full year would top $3.7trn, making it the second-biggest year in history after 2007.
A Bank of England survey has showed that risky mortgages are back on the rise, with loans worth more than 90% of the property's value rising for the first time in nine months, write The Telegraph. | | |
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