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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 rise but weak US data dampens gains UK stocks rose on Wednesday but upside was only modest after data showed that American retail sales growth slowed to a standstill last month. The FTSE 100 finished 0.23% higher at 6,949.63, but settled firmly below the intraday high of 6,989.91.
Shares extended gains in morning trade after the Bank of England scaled back its GDP and wage growth forecasts in its inflation report, prompting economists to scale back their predictions for the first rate hike.
However, markets dipped into the red following a shaky start on Wall Street after the US Commerce Department said US retail sales flatlined in April. This compared with a 1.1% jump in March and the 0.2% increase analysts had expected.
"Investors were initially buoyed by the rate-hike delaying power of this retail miss, leading the US markets to slender gains, until disappointment set in," said Spreadex analyst Connor Campbell.
Economic data elsewhere came in broadly mixed on Wednesday, with UK unemployment dropping to a seven-year low, French economic growth beating forecasts and German expansion figures weaker than expected.
Meanwhile, a host of economic indicators overnight from China disappointed, with growth in fixed asset investment, industrial production and retail sales all coming in weaker than anticipated. Analysts said the data raised hopes for further easing measures from the People's Bank of China after last week's interest-rate cut.
Mondi, Barratt and SABMiller impress
Paper and packaging giant Mondi said profits rose 29% in the first quarter on the back of higher volumes and lower costs across Europe, causing shares to set a new all-time high on Wednesday.
Housebuilder Barratt Developments was higher as it raised expectations for housing completions and profits for the full year, giving others in the sector such as Persimmon and Taylor Wimpey a boost.
Full-year profits from brewer SABMiller were higher than market expectations as China returned to growth during the last three months of the year. Adjusted profits were down a less-than-expected 1%.
Catering company Compass Group was in the red despite saying its full-year guidance remains "positive and unchanged" as it reported an increase in first-half earnings.
Admiral was also weaker on the news that chief executive of the motor insurer, Henry Engelhardt, is stepping down in a year's time.
Mining stocks finished mostly lower, though rising gold prices on a weaker dollar lifted shares of precious metal producers Fresnillo, Randgold, Acacia Mining and Centamin.
Market Movers
techMARK 3,236.38 +0.43%
FTSE 100 6,949.63 +0.23%
FTSE 250 17,861.53 +0.97% |
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| | FTSE 100 - Risers
Mondi (MNDI) 1,414.00p +8.94%
Fresnillo (FRES) 749.50p +5.05%
Persimmon (PSN) 1,820.00p +4.12%
Barratt Developments (BDEV) 564.00p +3.39%
Randgold Resources Ltd. (RRS) 4,881.00p +2.95%
Ashtead Group (AHT) 1,171.00p +2.81%
Taylor Wimpey (TW.) 182.30p +2.42%
Dixons Carphone (DC.) 460.10p +2.11%
SABMiller (SAB) 3,576.00p +2.10%
Aberdeen Asset Management (ADN) 443.60p +2.09%
FTSE 100 - Fallers
Compass Group (CPG) 1,119.00p -3.78%
TUI AG Reg Shs (DI) (TUI) 1,207.00p -3.67%
Morrison (Wm) Supermarkets (MRW) 176.90p -2.37%
Admiral Group (ADM) 1,452.00p -1.56%
Aggreko (AGK) 1,624.00p -1.46%
Sainsbury (J) (SBRY) 275.50p -1.25%
Tesco (TSCO) 224.70p -1.21%
Smith & Nephew (SN.) 1,112.00p -1.07%
HSBC Holdings (HSBA) 614.00p -0.97%
National Grid (NG.) 882.10p -0.95%
FTSE 250 - Risers
Acacia Mining (ACA) 304.00p +6.00%
Centamin (DI) (CEY) 65.90p +5.52%
Ted Baker (TED) 2,872.00p +5.28%
Petrofac Ltd. (PFC) 892.00p +4.69%
Countrywide (CWD) 579.50p +4.41%
Crest Nicholson Holdings (CRST) 479.90p +4.33%
Premier Oil (PMO) 187.50p +3.88%
AL Noor Hospitals Group (ANH) 850.00p +3.79%
Just Eat (JE.) 458.50p +3.73%
NMC Health (NMC) 875.00p +3.61%
FTSE 250 - Fallers
Man Group (EMG) 169.50p -3.86%
Mitie Group (MTO) 292.30p -2.53%
Jardine Lloyd Thompson Group (JLT) 1,021.00p -2.02%
Grafton Group Units (GFTU) 805.00p -1.95%
Rank Group (RNK) 199.70p -1.72%
Enterprise Inns (ETI) 134.20p -1.32%
Pets at Home Group (PETS) 266.60p -1.15%
Nostrum Oil & Gas (NOG) 591.00p -1.09%
Zoopla Property Group (WI) (ZPLA) 216.00p -1.05% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Equities little changed after mixed data, Greek talks European equities were little changed following mixed economic data and as Greece tried to reach a compromise with creditors. Providing a boost to the market earlier in the session, the Office for National Statistics said UK unemployment fell by 35,000 people to 1.83m in the period from January to March, and the jobless rate declined to 5.5% from 5.6%. Average weekly earnings grew 1.9% in the year to March, up by 0.2 percentage points from a month earlier, smashing expectations for a 1.7% gain.
"The continued strong performance of the UK's labour market highlights that consumers will remain the main drivers of the economic recovery in 2015 and that the risk of near-zero inflation becoming ingrained is very low," said Samuel Tomb, senior UK economist at Capital Economics.
However, a disappointing report on US retail sales saw stocks reverse in afternoon trade. Retail sales came in flat for April, compared to expectations for a 0.2% increase. That led Barclays to lower its tracking estimate for second quarter US GDP growth to 2.6% from 3%.
Eurozone industrial production also missed forecasts, climbing 1.8% year-on-year in March, compared to projections for a 1.9% rise.
Euro-area gross domestic product data showed the economy grew 1% year-on-year in the first quarter, as expected, picking up from the previous quarter's 0.9% pace. The expansion was supported by a return to growth in France and Italy.
Greece, on the other hand, slipped back into recession in the first three months of 2015, as the country struggled to reach an agreement with its creditors.
The country's gross domestic product (GDP) shrank 0.2% in the quarter to March after contracting 0.4% in the previous three months.
The Greek government on Wednesday said it would try to reach a compromise with lenders by the end of the month rather than turn to a referendum.
Benoit Coeure, a member of the European Central Bank executive board, said he hoped Greece could reach a deal with its creditors.
"Let's be clear, all those involved in the discussions want Greece to stay in the Eurozone [...] a Greek exit from the Eurozone is not a working scenario," he told French policymakers.
The euro rose 1.5% to $1.1381.
Back in the UK, in its Quarterly Inflation Report the Bank of England lowered its 2015 economic growth forecast from 2.9% to 2.5%, and for next year from 2.9% to 2.6%. Governor Mark Carney said deflation could emerge during the year but inflation was expected to pick up towards the end of the year. He also said an interest rate increase would happen within about a year's time.
In commodities, Brent crude rose 1.2% to $67.73 per barrel, according to the ICE.
Corporate stocks
Mondi rallied after the paper and packaging group posted a jump in first quarter earnings.
UBS Group AG slipped on reports the US Justice Department will go against an agreement to prosecute the Swiss lender for rigging.
Compass Group went south after the caterer reported first-half earnings that missed projections.
Moncler SpA was a high riser after the Italian luxury outwear maker reported better-than-expected first quarter sales and profit. |
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| | US Market Report | | US open: Dow and S&P 500 edge forward after retail data US stocks advanced early on Wednesday, as investors recovered from turbulence in the bond market and digested uninspiring retail data. Just before 15:00 BST. the Dow Jones Industrial Average was up 64 points, while the S&P 500 and the Nasdaq gained 10 and 34 points respectively.
US retail sales volumes were flat month-on-month in April at $436.8bn, according to the US Department of Commerce, while economists had been expecting a 0.2% increase.
"Even though we haven't yet seen the sort of spring rebound in sales that we were originally looking for, all the other evidence still appears to suggest an acceleration in consumption growth is coming," said Paul Ashwort, chief US economist at Capital Economics.
"Nevertheless, alongside the surge in long-term interest rates over the past few weeks, the ongoing softness of retail sales is another reason to believe that the Fed will delay the first rate hike until September at least."
Meanwhile, US import prices declined unexpectedly in April led by a drop in prices of non-fuel imports.
Prices of goods purchased from overseas fell by 0.3% and by another 10.7% in comparison to the year ago level, according to the Bureau of Labor Statistics.
Analysts had forecast a 0.2% rise month-on-month.
Shares of Hortonworks Inc. jumped 6% after the data-software company reported a smaller-than-expected loss for the quarter. late on Tuesday.
Filtration, separation and purification company Pall Corp. rose 4.95% after announcing a deal to be acquired by Danaher Corp, which rose 2.94%
Williams Partners L.P. soared 23.1% after gas infrastructure group Williams Companies Inc, which gained 6.31%, announced an a deal to buy the public equity of Williams Partners in $13.8bn deal.
The earnings season continues with restaurant operator Shake Shack, IT giant Cisco and department store set to report after the close.
Elsewhere, European markets edged higher as they recovered from a bond sell-off on Tuesday, while gross domestic product data showed France and Italy returned to expansion in the first quarter of 2015.
The dollar lost 0.13% against the pound and fell 0.46% against the yen and 0.88% against the euro, while gold futures advanced 0.13% to 1,194.00. |
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| | Broker Tips | | Broker tips: Easyjet, Compass Group, Burberry Numis Securities has lowered its recommendation for budget airline Easyjet from 'buy' to 'add' on the back of "near-term uncertainty".
The broker said the "underlying investment case remains intact" but cut earnings estimates, saying that revenue per seat growth expectations are being tempered.
Berenberg has maintained a positive view on Compass Group despite the catering giant's first-half results receiving a cool reaction from the market on Wednesday.
The broker kept a 'buy' rating and 1,300p target for the stock, saying: "We believe that it will continue to enjoy strong organic growth, driven by the underpenetration of the outsourcing market and positive employment rates."
All eyes will be on the outlook at luxury fashion house Burberry when it reports its full-year results next week, according to broker Nomura which reiterated its 'buy' rating on the stock on Wednesday. | | |
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