| | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London close: Stocks finish off lows but FTSE still drops 1.4% UK stocks suffered steep declines on Tuesday as volatility in sovereign debt markets and ongoing fears about Greece sent shares 1.4% lower, with Easyjet leading the fallers on a cautious outlook.
The FTSE 100 finished the session down 96.05 points, or 1.37%, at 6,933.80, though the index did finish firmly above its intraday low of 6,887.52 reached early on.
The late rally, albeit small, came as Wall Street stocks trimmed heavy losses - the Dow was down just 44 points after an earlier drop of nearly 200 points - on the back of a rebound in US Treasuries.
Yields on 10-year US Treasuries had surged to a six-month high of 2.36%, but immediately dropped to trade three basis points lower at 2.25% by the close in London.
Government bonds elsewhere, however, were sold off with borrowing costs rising sharply in Germany, the UK, France, Italy and Spain.
Greek 10-year bond yields, meanwhile, rose 13 basis points to 10.69% amid reports that the International Monetary Fund does not want to participate in a third bailout for the country.
The news came just a day after Greek finance minister Yanis Varoufakis admitted that Athens' liquidity problem is a "terribly urgent issue", saying that the country could run out of cash in "the next couple of weeks".
If that wasn't enough, concerns about a UK referendum on EU membership were also weighing on stocks after David Cameron suggested that the vote could be brought forward to 2016 from the expected 2017.
Easyjet sinks, miners buck the trend
Budget airline Easyjet met guidance after swinging to a small profit in the first half, though it faces tougher conditions in the latter part of the year. The company saw shares sink after saying that exchange-rate movements and air traffic control strikes in France are expected to hit second-half results.
Mining stocks held up well despite declines on the wider market as a weaker US dollar lifted metal prices across the board. Fresnillo, Antofagasta, Randgold Resources, Anglo American and BHP Billiton.
Credit-checking outfit Experian jumped after returning to organic revenue growth in the fourth quarter. For the full year, total revenue from continuing activities grew 1% to $4.81bn, with profit before tax slightly above flat at $751m.
Pubs group Enterprise Inns impressed the market with plans to increase direct management of pubs and grow its commercial property business, as it unveiled first-half results that met targets.
Lloyds Banking Group rose after the government sold £500m-worth of shares in the lender, taking its holding to below 20%. Analyst Michael Hewson from CMC Markets said the share sale reduces the government's influence on how the bank manages its day-to-day operations |
| | Wealth creation through asset backed investments... | | Take an alternative approach to investing with our latest high fixed return investment opportunity
No annual fees, flexible investment periods and income paid quarterly Click here to find out more! |
| | Market Movers
techMARK 3,222.47 -1.33%
FTSE 100 6,933.80 -1.37%
FTSE 250 17,689.23 -1.02%
FTSE 100 - Risers
Experian (EXPN) 1,214.00p +3.14%
Fresnillo (FRES) 713.50p +1.71%
Antofagasta (ANTO) 791.50p +1.15%
Randgold Resources Ltd. (RRS) 4,741.00p +0.85%
Lloyds Banking Group (LLOY) 87.02p +0.48%
Sports Direct International (SPD) 656.00p +0.38%
Anglo American (AAL) 1,132.00p +0.35%
Capita (CPI) 1,250.00p +0.32%
British Land Company (BLND) 846.50p +0.24%
BHP Billiton (BLT) 1,575.00p +0.19%
FTSE 100 - Fallers
easyJet (EZJ) 1,654.00p -9.77%
Kingfisher (KGF) 357.50p -3.53%
Aberdeen Asset Management (ADN) 434.50p -3.44%
Ashtead Group (AHT) 1,139.00p -3.23%
Hargreaves Lansdown (HL.) 1,198.00p -3.00%
Royal Mail (RMG) 483.50p -2.83%
AstraZeneca (AZN) 4,400.00p -2.83%
Sage Group (SGE) 541.00p -2.70%
Old Mutual (OML) 226.60p -2.62%
SABMiller (SAB) 3,502.50p -2.61%
FTSE 250 - Risers
Greene King (GNK) 830.00p +3.17%
Tullow Oil (TLW) 419.60p +3.15%
Synthomer (SYNT) 335.50p +3.07%
Spirit Pub Company (SPRT) 115.00p +2.95%
Hunting (HTG) 592.00p +2.78%
Brown (N.) Group (BWNG) 346.30p +2.73%
Enterprise Inns (ETI) 136.00p +2.72%
Thomas Cook Group (TCG) 156.10p +2.03%
Petra Diamonds Ltd.(DI) (PDL) 169.50p +1.80%
PayPoint (PAY) 876.50p +1.51%
FTSE 250 - Fallers
Ted Baker (TED) 2,728.00p -7.46%
Regus (RGU) 245.00p -6.77%
Indivior (INDV) 225.30p -6.05%
AL Noor Hospitals Group (ANH) 819.00p -5.70%
COLT Group SA (COLT) 150.20p -5.00%
Jardine Lloyd Thompson Group (JLT) 1,042.00p -3.87%
Euromoney Institutional Investor (ERM) 1,211.00p -3.51%
Marston's (MARS) 163.00p -3.49%
Greggs (GRG) 1,142.00p -3.47%
|
| | The Penny Share That's The Cream Of The Crop | | Don't buy another share until you’ve read this...
We've discovered a UK stock with explosive price potential. This tiny company is an emerging player in "natural crop enhancement" having secured 9 worldwide patents.
It's a global market literally worth BILLIONS.
Take a look at this opportunity now. Click Here. |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks fall on government bond sell-off, Greek debt woes European markets ended the session off their intra-day lows after reports broke the ECB was to increase its emergency funding for the stricken nation's lenders.
Nonetheless, the fact that Greece was forced to tap into emergency funds to repay the International Monetary Fund (IMF) today was not lost on traders as it underlined the country's quandary.
A Bank of Greece official said the debt repayment to the IMF was taken from an emergency account held by the central bank following two meetings last week between Governor Yannis Stournaras, Deputy Prime Minister Giannis Dragasakis and Deputy Foreign Minister Euclid Tsakalotos and the Washington-based lender.
"In order for money to be taken from this account, the IMF had to approve it. It was given," the Bank of Greece official said.
The confirmation of the payment on Tuesday came after finance minister Yanis Varoufakis admitted that Greece may only have enough cash to meet its financial obligations for a "couple of weeks".
Greece has a raft of debt to pay back over the coming weeks, with another €1.5bn owed to IMF in June and another €3bn to the European Central Bank in July and August.
The ECB will increase its liquidity provision to the Mediterranean country's lenders by €1.1bn to reach €80bn, according to a report late in the afternoon citing Bloomberg News hit the wires.
The euro rose 0.81% to $1.1245 amid sharp volatility across all asset classes.
The worldwide sell-off in government bonds continued although it had died down a little by the close of trading. In morning trade the yield on 10-year Bunds was up by 12 basis points to 0.73% but by the time of the closing bell was up by a lesser seven basis points.
However, as of 17:15 the yield on Italian government debt of a similar maturity was still higher by 12 basis points to 1.88% near its highest level of the day.
In economic data, UK industrial production rose 0.7% in March, more than the 0.1% gain that was predicted. Manufacturing production rose 1.1% year-on-year in March compared to a year ago, beating expectations for a 1% increase.
NIESR reported that economic growth in the UK picked up slightly in April and forecast a further re-acceleration through the rest of the year. Britain's gross domestic product (GDP) expanded at a 0.4% year-on-year pace in the three months to April, the think-thank estimated.
The research outfit expects the slight softening of GDP growth experienced in the first quarter of this year to be temporary. The fresh estimate from the think-tank follows forecasts earlier in the year the UK economy would expand by 2.5% in 2015.
Moody's said the divergence between the major economies is likely to widen over the next 12 months driven on by global currency shifts. In a note to clients, the ratings agency suggested that anticipated tightening of US monetary policy was likely to come at a time when most other central banks are easing policy or maintaining their loose stance except the Federal Reserve.
Oanda Senior Market Analyst Craig Erlam said: "The recent sell-off in bonds doesn't appear to have been driven by Greek uncertainty, instead by changing inflation expectations as rising oil prices offers the prospect of higher inflation in the coming months."
Companies: Altice, Easyjet
Altice SA gained after reporting an increase in first-quarter earnings. ThyssenKrupp AG rallied after the German steelmaker raised its full-year profit forecast.
EasyJet slumped after saying flight cancellations in April stemming from French strikes would impact annual pre-tax profit by about £25m.
Carlsberg A/S dropped after saying the Russian beer market fell in the first quarter.
Total SA and BP declined among a gauge of energy shares after the Organization of the Petroleum Exporting Countries said it doesn't see oil prices consistently trading at $100 a barrel again in the next decade. Brent crude climbed 3% to $66.95 per barrel, according to the ICE. |
| | Free Expert Signals & Exclusive Bonus | | It’s common knowledge that successful trading requires being connected to professional analysts. Sunbird FX is excited to offer you FREE market signals today with your registration, and exclusively for ADVFN users an added 30% start up bonus Click here to get started! |
| | US Market Report | | US open: Dow suffers triple digit slide amid bond sell-off US stocks took a sharp turn south on Tuesday, with a sell-off in bond markets piling pressure on equities.
Just after 15:00 BST, the Dow Jones Industrial Average was down by 141 points, while the S&P 500 and the Nasdaq shed 15 and 49 points respectively.
On Monday, US bond yields reached their highest level since December and the sell-off in the government bonds continued on Tuesday, with the yield on 10-year Bunds and Australian 10-year note climbing by 12 and 13 basis points respectively.
"German bunds yields are rising faster than US treasuries and closing the yield advantage of US debt over European debt," said CMC Markets analyst Jasper Lawler.
"US dollar-denominated assets are now becoming relatively less appealing than the equivalent European assets."
Figures released by the Labor Department showed US job openings declined to 4.99m in March from 5.14m in the previous month, falling short of analysts' expectations that called for a largely unchanged reading.
Meanwhile, US small-businesses sentiment improved in April, the National Federation of Independent Business said.
According to figures released on Tuesday, the NFIB index rose 1.7 points to 96.9, although the reading was the second-worst on record since October.
Later on Tuesday, investors will focus on the Federal Reserve's report on first-quarter household debt and credit, set to be released at 16:00 BST.
At 17:45 BST, Fed member John Williams will assess the prospects of the US economy during a speech at the NY Association for Business Economics in New York.
In company news, telecoms giant Verizon Communications slid 0.32% after revealing it had agreed a $4.4bn deal to acquire media and tech group AOL, which jumped 18.2% following the news.
Web-hosting firm Rackspace Hosting plunged 12.6% after its second quarter revenue, published late on Monday, fell below estimates.
Clothing firm Gap, lost 2.91% after reporting late on Monday that its first quarter revenue had missed expectations.
The dollar fell 0.54% against the pound and lost 0.13% and 1% against the yen and the euro respectively, while gold futures climbed 0.66% to $1,190.80. |
| | FCA regulated advice in FX, Gold and Silver | | Beta 2 is proud to offer personalised FCA regulated advice, completely tailored to your requirements. Attempting to yield returns in any climate, this is exclusive to ADVFN users! Click here to learn more! |
| | Broker Tips | | Broker tips: Easyjet, Royal Mail, Thomas Cook Easyjet's share price dropped back down to earth on Tuesday after the budget airline delivered a cautious outlook, with the market consensus stance on the stock as a 'buy' likely to come under pressure.
"Given that the shares have risen 19% over the last six months alone, as compared to a 6% hike for the wider FTSE100, there may also be an element of profit taking in today's share price nosedive. It remains to be seen whether the current market consensus of the shares as a strong buy will equally be disturbed," said Hargreaves Lansdown Stockbrokers.
Credit Suisse said it sees an attractive risk-reward balance at Thomas Cook Group as it upgraded its rating on the travel tour operator from 'neutral' to 'outperform'.
The bank pointed out that TCG has underperformed sector rival TUI by around 45% since September last year and now trades at a 30% discount on a price-to-earnings basis. It has lifted its target for the shares from 159p to 180p, which implies 18% upside potential from current prices.
Goldman Sachs has reiterated its 'buy' recommendation on Royal Mail Group's stock after competitor Whistl said it would suspend all end-to-end mail deliveries in the UK. | | |
New ADVFN Service - FREE Reports Get your free report on Isa's, Investment Trusts, Funds,
Sipps Travel and Cars - FREE and Easy service CLICK HERE
To advertise in the Euro Markets Bulletin please contact patrick@advfn.co.uk |
| | | | | | | To unsubscribe from this news bulletin or edit your mailing list settings click here. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +44 (0) 207 0700 961. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49 | |
No comments:
Post a Comment