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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: Stocks erase gains despite Greek repayment, China rate cut After a positive start, UK stocks dropped into the red by the close on Monday despite positive news emanating from Greece, which has come good on its debt repayment to the International Monetary Fund.
The FTSE 100 retreated 0.24% to 7,029.85 by the end of the session, having risen as high as 7,083.72 early on. The index was pulling back after a 2.3% surge on Friday following the Conservative victory in the general elections.
Mining stocks were doing their best to keep the Footsie afloat for most of the day after top metals consumer China lowered interest rates for the third time in six months in an effort to avert a slowdown. The People's Bank of China lowered its benchmark lending and deposit rates by 25 basis points each, following weaker-than-expected trade and inflation figures released last week.
However, markets fell in afternoon trade as investors shrugged off the news that Greece made a €754m repayment to the IMF ahead of its Tuesday deadline. The transaction came came ahead of Monday afternoon's meeting of Eurozone finance ministers.
"The repayment by Greece is good news for all involved but you wouldn't think it by looking at the markets' muted reaction," said IG analyst David Madden. "The move by Athens can hardly been seen as a victory Today's repayment is by far the smallest that the nation must make within the next few months," he said.
The Eurogroup convened to discuss a cash-for-reforms deal with Greece, though most analysts don't anticipate an agreement on releasing further bailout funds to be made.
Closer to home, the Bank of England maintained its Bank Rate at 0.5% and the size of its asset purchase programme at £375bn at its policy meeting on Monday, as expected.
Royal Mail, housebuilders and miners rise
Royal Mail topped the risers after rival postal firm Whistl revealed it has halted deliveries because private equity backer LDC had pulled out of funding to help expansion efforts.
Property stocks extended Friday's gains, driven by the outcome of the general election. With the threat of Labour's mansion tax eliminated, hopes for planning permission were boosted, sending Taylor Wimpey, Barratt Developments and Persimmon higher.
The election results were also lifting Centrica after Deutsche Bank upgraded the British Gas owner to 'hold', saying that Labour's intended energy-price cap was no longer a threat.
Mining stocks were buoyed by the interest rate cut in top metals consumer China, with Anglo American, BHP Billiton, Glencore and Rio Tinto all making decent gains.
However, platinum miner Lonmin dipped after revealing plans to cut up to 3,500 jobs on predictions that metal prices will remain low for at least the short - term.
Financials were mostly lower, including St James's Place, HSBC and Aberdeen, with the latter pulled lower by a Societe Generale downgrade to 'hold'.
Meanwhile, stock in Sage gained ground on the heels of a price target upgrade out of analysts at Goldman Sachs. |
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| | Market Movers
techMARK 3,266.00 -0.10%
FTSE 100 7,029.85 -0.24%
FTSE 250 17,870.64 -0.36%
FTSE 100 - Risers
Royal Mail (RMG) 497.60p +3.90%
Taylor Wimpey (TW.) 180.40p +2.67%
3i Group (III) 515.50p +2.59%
Sage Group (SGE) 556.00p +2.30%
Hikma Pharmaceuticals (HIK) 2,054.00p +2.19%
Weir Group (WEIR) 1,917.00p +1.91%
TUI AG Reg Shs (DI) (TUI) 1,270.00p +1.84%
Experian (EXPN) 1,177.00p +1.82%
Hargreaves Lansdown (HL.) 1,235.00p +1.81%
Schroders (SDR) 3,377.00p +1.72%
FTSE 100 - Fallers
CRH (CRH) 1,837.00p -2.86%
St James's Place (STJ) 940.50p -2.29%
Mondi (MNDI) 1,322.00p -1.86%
Associated British Foods (ABF) 2,879.00p -1.67%
Shire Plc (SHP) 5,245.00p -1.59%
Smiths Group (SMIN) 1,145.00p -1.46%
easyJet (EZJ) 1,833.00p -1.45%
HSBC Holdings (HSBA) 632.30p -1.37%
Unilever (ULVR) 2,855.00p -1.35%
Randgold Resources Ltd. (RRS) 4,701.00p -1.32%
FTSE 250 - Risers
NMC Health (NMC) 860.00p +5.26%
Home Retail Group (HOME) 172.90p +5.17%
Indivior (INDV) 239.80p +4.81%
AO World (AO.) 179.90p +3.99%
Man Group (EMG) 182.60p +2.76%
FirstGroup (FGP) 112.20p +2.75%
Fisher (James) & Sons (FSJ) 1,295.00p +2.70%
Allied Minds (ALM) 631.50p +2.52%
Vedanta Resources (VED) 675.00p +2.51%
SIG (SHI) 206.30p +2.48%
FTSE 250 - Fallers
Diploma (DPLM) 792.00p -6.49%
Spirax-Sarco Engineering (SPX) 3,329.00p -6.01%
Smith (DS) (SMDS) 357.50p -3.92%
Hunting (HTG) 576.00p -3.36%
Inchcape (INCH) 847.50p -3.03%
Zoopla Property Group (WI) (ZPLA) 225.00p -3.02%
Beazley (BEZ) 283.80p -2.27%
Synergy Health (SYR) 2,201.00p -2.22%
Victrex plc (VCT) 1,994.00p -2.16%
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks little changed as Eurogroup tackles Greece European stocks were little changed after Greece reportedly made a debt repayment to the International Monetary Fund (IMF) ahead of its deadline as the Eurogroup met to tackle the country's bailout.
Greece repaid a €750m loan instalment to the IMF on Monday, a day before the Tuesday deadline, sources told Reuters.
The news came as Eurozone finance ministers continued discussions on Greece's finances in Brussels. The Eurogroup was said to have made progress in the talks but still had to overcome sticking points including pension and labour market reforms, according to Reuters.
Earlier, France's finance minister Michel Sapin warned that it could take a few more days or weeks to reach an agreement that would unlock further aid for Greece to avoid a debt default.
The euro dropped 0.44% to $1.1150.
PBoC, BoE policy decisions
The People's Bank of China on Sunday announced it was reducing the benchmark lending and deposit rates by 0.25 percentage points, effective on Monday. It marked the third interest rate cut in six months and came amid a slowdown in the world's second largest economy.
"We have opined for some time now that the Chinese government had been showing signs of concern about slowing economic momentum. We believe that further easing by the country's central bank remains on the cards in 2015," said analyst Yuen Low from Shore Capital.
The Bank of England announced it is keeping interest rates and its asset purchase programme unchanged at 0.5% and £375bn, respectively. The move was widely expected by analysts. Investors are now turning to Governor Mark Carney's Inflation Report to be released on Wednesday.
Commodity producers rally
Commodity producers, including Rio Tinto Group and BHP Billiton, climbed after China's interest rate cut.
Intesa Sanpaolo SpA jumped after revealing first-quarter profit doubled, ahead of analysts' expectations.
Centrica edged up after Deutsche Bank lifted its recommendation on the British gas firm from 'sell' to 'hold', saying that the risk that a Labour government posed to the group has now been removed with the Conservatives winning the general election.
Delhaize gained on reports that the Belgian supermarket chain has started talks with Dutch retailer Ahold on a possible merger.
Airbus Group slumped after one of its new military transport aircraft crashed on Saturday in Spain, killing four people.
Banca Monte dei Paschi di Siena Spa advanced after the Italian lender swung to a profit after nearly three years of quarterly losses. |
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| | US Market Report | | US open: Equities gain as non-farm payrolls rise, unemployment rate falls US equities advanced at the opening bell on Friday after non-farm payrolls rose broadly in line with expectations.
Employers added 223,000 jobs in April, compared with a consensus forecast for an increase of 220,000. The unemployment rate was bang in line with estimates, falling to 5.4% last month from 5.5% in March.
"The return to more normal jobs growth in April will relieve Fed policy makers, providing tentative evidence that the Q1 economic weakness was mostly a blip," said Christian Schulz, senior economist at Berenberg.
"Falling unemployment points to a continuing erosion of slack in the economy, which warrants policy rate normalisation rather sooner than later. Weak wage growth and headline inflation rates around zero still allow the Fed some time, but today's release has kept chances for a September rate hike alive, especially if other indicators such as the ISM rebound as well."
The US 10-year Treasury yield fell seven basis points to 2.11% following the report.
At 14:00 London time US wholesale inventories data for March will be released with analysts' predicting a 0.3% increase.
In China, data showed exports and imports fell in April, fuelling hopes of further stimulus. "Trade data from China overnight was pretty horrible with exports and imports plunging again over the year, Asian equities responded well on the prospect for further government stimulus but the data doesn't bode well for world growth," said Jasper Lawler, market analyst at CMC Markets.
Among corporate stocks, AOL jumped after its first quarter results impressed investors. It reported a better-than-expected 7.2% increase in revenue amid stronger advertising.
McDonald's was a high riser after reporting April sales that beat analysts' projections , supported by a slower decline at its US business. |
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| | Broker Tips | | Broker tips: Aberdeen, Centrica, Diploma Aberdeen Asset Management shares were hit by a downgrade at Societe Generale on Monday from 'buy' to 'hold' on the back of weaker fund flows in the first half.
The bank has lowered its earnings per share estimates for 2015 and 2016 by 4-6% and cut its target from 490p to 485p. While SocGen forecasts a reduction the rate of outflows from the £11.3bn reported in the first half, it still expects outflows to total £18.3bn over the year - £7bn in the second half - "due to the ongoing redemption profile from both SWIP and a number of equities products".
Deutsche Bank has lifted its recommendation on British Gas owner Centrica from 'sell' to 'hold', saying that the risk that a Labour government posed to group has now been removed.
"The Conservative election victory removes a significant political risk from the UK energy retailers and Centrica in particular," Deutsche Bank said. With the Tories likely to form a majority government lasting through to 2020, the threat of Labour legislation to freeze energy bills and replace Ofgem with a tougher regulator have now disappeared.
Shares in technical products group Diploma were trading in the red on Monday after the company cautioned about headwinds to organic growth, prompting Numis Securities to lower its rating on the stock from 'add' to 'hold'. | | |
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