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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 close: Markets shrug off weak data as Lloyds and miners surge Strong gains from mining stocks and an impressive first-quarter performance from UK lender Lloyds helped UK markets to rise on Friday, as investors shrugged off mostly worse-than-expected economic data. "With Europe mostly out of action for May Day, it was a quiet day in London, but at least the traditionally weak period for equities has started off on the right foot," said Chris Beauchamp from IG.
The FTSE 100 finished 25.32 points higher (+0.36%) at 6,985.95, after clawing back earlier losses which sent it to an intraday low of 6,919.39.
Stocks received an extra boost in afternoon trade after Wall Street equities opened positively, rebounding after a sharp drop the previous session.
In economic data, the UK manufacturing purchasing managers' index (PMI) unexpectedly dropped to 51.9 in April from a revised 54 in March, surprising analysts who expected an increase to 54.6. This was the lowest rate of growth (measured by figures over 50) since September 2014.
"This is a disappointing survey that adds to the evidence that the economy has recently lost momentum," said economist Howard Archer from IHS Global Insight.
Elsewhere, the official Chinese manufacturing PMI remained unchanged at 50.1 in April, while the non-manufacturing PMI declined from 53.7 to 53.4.
Meanwhile, two separate US manufacturing PMIs disappointed: the final reading of Markit's April manufacturing PMI was revised from 54.2 to 54.1, while the ISM manufacturing index unexpectedly remained unchanged at 52.
One bright spark on the macro front was from Britain where UK lending figures came in strong, with consumer credit growth of £1.2bn in March. This was a surprise increase from £0.8bn the previous month and the strongest rate of growth since 2006.
Lloyds and mining stocks surge
Lloyds saw shares jump over 7% after the bank delivered a bigger-than-forecast 21% increase in underlying profits in the first quarter as impairment charges more than halved. The UK lender also lifted its net interest margin guidance for the full year and improved its capital position.
However, sector peer Barclays was extending losses after disappointing on Wednesday with its own results. Berenberg lowered its rating on the stock to 'sell' on Friday.
Mining stocks surged as PMI data from China showed that growth remained tepid, raising hopes for further stimulus from Beijing to boost the world's top metals user. Anglo American, Rio Tinto and BHP Billiton all rose at least 3%.
Insurers Admiral and Esure were in demand after Barclays Capital lifted its ratings on the stocks to 'equal weight' and 'overweight' respectively.
However, other financials were providing a drag, such as Aberdeen Asset Management, Hargreaves Lansdown and 3i Group.
Market Movers
techMARK 3,192.66 +0.19%
FTSE 100 6,985.95 +0.36%
FTSE 250 17,468.27 -0.04% |
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| | FTSE 100 - Risers
Lloyds Banking Group (LLOY) 82.87p +7.09%
Anglo American (AAL) 1,165.00p +5.43%
Rio Tinto (RIO) 2,997.00p +3.88%
BHP Billiton (BLT) 1,607.50p +2.98%
Admiral Group (ADM) 1,596.00p +2.44%
Reed Elsevier (REL) 1,108.00p +2.40%
Smith & Nephew (SN.) 1,143.00p +2.33%
International Consolidated Airlines Group SA (CDI) (IAG) 557.50p +2.29%
Ashtead Group (AHT) 1,147.00p +1.86%
Capita (CPI) 1,165.00p +1.84%
FTSE 100 - Fallers
Aberdeen Asset Management (ADN) 463.10p -2.53%
Hargreaves Lansdown (HL.) 1,199.00p -2.52%
Severn Trent (SVT) 2,084.00p -1.93%
TUI AG Reg Shs (DI) (TUI) 1,200.00p -1.88%
3i Group (III) 497.90p -1.70%
Land Securities Group (LAND) 1,229.00p -1.60%
Dixons Carphone (DC.) 418.10p -1.46%
United Utilities Group (UU.) 958.00p -1.34%
British Land Company (BLND) 821.50p -1.32%
Intu Properties (INTU) 338.90p -1.20%
FTSE 250 - Risers
Vedanta Resources (VED) 656.50p +4.46%
esure Group (ESUR) 227.70p +4.35%
IP Group (IPO) 205.10p +4.11%
Rank Group (RNK) 195.50p +2.36%
Soco International (SIA) 185.50p +2.26%
Centamin (DI) (CEY) 64.90p +2.20%
Essentra (ESNT) 982.00p +2.19%
Spire Healthcare Group (SPI) 326.60p +1.90%
Aveva Group (AVV) 1,722.00p +1.83%
Saga (SAGA) 196.60p +1.81%
FTSE 250 - Fallers
RPS Group (RPS) 204.70p -3.90%
AL Noor Hospitals Group (ANH) 870.00p -3.12%
Greggs (GRG) 1,156.00p -2.78%
Allied Minds (ALM) 635.00p -2.76%
Jardine Lloyd Thompson Group (JLT) 1,034.00p -2.73%
AO World (AO.) 181.50p -2.68%
Countrywide (CWD) 511.50p -2.57%
Supergroup (SGP) 1,004.00p -2.52%
Home Retail Group (HOME) 163.00p -2.34% |
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| | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Week ahead: Elections and US non-farm payrolls in focus Without out a doubt next week's main event, both at home and abroad, will be the result of the UK elections, given the current debate regarding the future of Britain within the European Union and the country's weight geopolitically. The result of the electoral contest remains too close to call with just under a week to go, with a coalition or minority Conservative or Labour government thought to be the most likely outcomes. The uncertainty which may unfold after the elections could well weigh on economic activity domestically.
Some observers believe that a re-run of the elections is a real possibility.
The above aside, the US non-farm payrolls report on Friday will be the most closely watched piece of economic data. Markets will be anxious to avoid a repeat of March's surprisingly weak reading on the state of the US labour market.
Final readings on the Eurozone's manufacturing and service sector purchasing managers' indices (PMI), courtesy of Markit, which are scheduled for release on Monday and Wednesday, will also be closely monitored.
Monday 4 May
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Factory Orders (US) (15:00)
Goods Orders (US) (15:00)
PMI Manufacturing (EU) (09:00)
PMI Manufacturing (GER) (08:55)
Retail Sales (GER) (07:00)
GMS
Argos Resources Ltd. (DI)
FINALS
DDD Group
AGMS
PJSC Magnit GDR (REG S) |
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| | US Market Report | | US open: Dow jumps 130 points despite mixed data US stocks rebounded on Friday as investors looked to put the previous session's losses behind them. Just after 15:00 BST, the Dow Jones Industrial Average was up 134 points, while the S&P 500 and the Nasdaq gained 12 and 37 points respectively.
US stock indices plunged on Thursday, as investors digested a mixed bag of 'B-list' economic data and earnings.
Analysts believe Wednesday's minutes from the Federal Reserve's meeting really appear to have worried investors.
"People had begun to believe that the Fed would hold off on rate hikes until next year because of the weakness experienced in the first quarter but Wednesday's statement suggests that is far from the case," said Oanda's senior market analyst Craig Erlam.
"When rate hikes are being discussed alongside weak earnings reports, it's not surprising that investors are getting a little anxious."
Consumer confidence in the States rose to its second-highest level since 2007 in April, according to the data on Friday.
The final reading of the widely-followed University of Michigan consumer sentiment index confirmed the preliminary reading of 95.9, up from 93 in March.
US manufacturing activity growth unexpectedly remained unchanged April, data from the Institute for Supply Management showed
The purchasing managers' index (PMI) held at 51.5 last month, compared to analysts' estimates for a reading of 52.
"The slowing in the economy is accompanied by a renewed weakening of price pressures, linked to the exchange rate bringing down the cost of imports," said Markit chief economist Chris Williamson.
"Input prices showed one of the steepest falls seen since the recession, a cost-saving which producers often passed on to customers."
Meanwhile, the ISM manufacturing index was unchanged at 51.2 in April.
LinkedIn slumped 20.14% after the professional networking group issued a profit forecast well short of analysts' estimates, while Visa fell 0.89% after saying late on Thursday that its second quarter earnings were hit by currency headwinds.
Chevron fell 1.69% as first quarter profits of the oil, mineral and chemical giant were affected by the tumbling oil prices, although they fell less than expected.
Insurance American International Group rose 1.60% despite reporting a 53.4% jump in first quarter profit, while Ford edged forward 0.32% after its US sales climbed 5% in April.
The earnings season continues after the close with Warren Buffett's Berkshire Hathaway set to report after the close.
The dollar gained 0.54% and 1.21% against the yen and the pound respectively and was largely unchanged against the euro, while gold futures declined 0.63% to $1,174.90. |
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| | Broker Tips | | Broker tips: Lloyds, Barclays, Zoopla Lloyds impressed investors and analysts alike with its first-quarter results on Friday, though some brokers highlighted uncertainty ahead of the election and regarding the government's stake. Gary Greenwood from Shore Capital said he expected the shares to react positively, but material upside "may be limited by market concerns about the outcome of the election". Greenwood reckons that a Labour government or Labour-led coalition is likely to be "a more challenging outcome for banks" than a Conservative or Conservative-led one.
Meanwhile, Augustin Eden from Accendo Markets said investors will be "watching Lloyds like hawks" ahead of the elections next week. He said that at current levels, "Lloyds Banking Group could be the bargain of the decade" if the government offloads its final holding.
Berenberg has recommended investors to 'sell' shares of Barclays, saying that positive catalysts at the bank "seem further away than we hoped".
The broker lowered its rating on the stock from 'hold' and cut its target from 220p to 200p.
Zoopla's purchase of uSwitch is "highly attractive" and offers significant upside, according to UBS which hiked its target for the property website group from 225p to 260p. | | |
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