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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 stage late rally after positive US labour data After a negative start, UK stocks rallied into the close as improving labour-market data from the States lifted sentiment. After a choppy week, owing mainly to volatility on the government bond market, Wall Street indices opened higher following a Labor Department report which showed that US jobless claims unexpectedly declined last week.
The FTSE 100 finished the session up 23.41 points (+0.34%) at 6,973.04, well above the intraday low of 6,884.63 reached early on.
The Dow Jones Industrial Average was up 0.9% at 18,218 by the close in London, nearing a new record high after data showed that initial claims for unemployment benefits inched 1,000 lower to 264,000 in the week ended 9 May. Analysts had expected a rise to 273,000.
Meanwhile, the four-week moving average, which smoothes out week-to-week volatility, dropped 7,750 to a new 15-year low of 271,750.
The mood on the market was also supported by comments from Federal Reserve vice chair Donald Kohn who said that a June interest rate hike is off the table. He said that the Fed would likely tighten policy in either September or December.
UK equity markets had started on the back foot after reports that Greek finance minister Yanis Varoufakis has called for the European Central Bank to delay Athens' debt repayments, though downside was limited with trading volumes lower across Europe.
"As both France and Germany have enjoyed bank holidays, European equities have understandably had a particularly lethargic feel to them today," said IG analyst Alastair McCaig.
Earnings mostly well-received
Investment group 3i impressed with its annual results with a strong total return of 20% for the year.
Property giant British Land gained after meeting forecasts with a small increase in profits in the year ended 31 March. Diluted underlying earnings per share increased 4.1% to 30.6p, more or less in line with consensus estimates.
ITV declined as, despite net advertising revenue for the first quarter being ahead of guidance, sentiment was dampened by reports of a lower second quarter. Furthermore, staff are holding a 24-hour strike over pay with a protest at the broadcaster's annual shareholder meeting.
Alton Towers and Madame Tussauds owner Merlin Entertainments edged higher after a "satisfactory" start to 2015, boosted by favourable weather in Europe and helpful currency movements.
Pharmaceutical outfit Hikma advanced as it reiterated its guidance for full-year revenue growth of "around 6% in constant currency".
A number of blue-chip stocks were trading lower after going ex-dividend, including Aberdeen, Shell, Glaxosmithkline, Kingfisher and J Sainsbury.
Market Movers
techMARK 3,241.08 +0.15%
FTSE 100 6,973.04 +0.34%
FTSE 250 17,929.33 +0.38% |
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| | FTSE 100 - Risers
3i Group (III) 527.50p +3.03%
Mondi (MNDI) 1,453.00p +2.76%
Shire Plc (SHP) 5,295.00p +2.42%
Hikma Pharmaceuticals (HIK) 2,079.00p +2.41%
easyJet (EZJ) 1,690.00p +2.24%
Diageo (DGE) 1,786.50p +1.82%
St James's Place (STJ) 941.50p +1.78%
Smiths Group (SMIN) 1,148.00p +1.77%
Reckitt Benckiser Group (RB.) 5,767.00p +1.76%
Pearson (PSON) 1,323.00p +1.61%
FTSE 100 - Fallers
Kingfisher (KGF) 352.60p -2.33%
Sainsbury (J) (SBRY) 269.20p -2.29%
Anglo American (AAL) 1,110.50p -1.86%
Aberdeen Asset Management (ADN) 437.50p -1.38%
GlaxoSmithKline (GSK) 1,430.50p -1.38%
Royal Dutch Shell 'A' (RDSA) 2,018.50p -1.32%
BHP Billiton (BLT) 1,549.00p -1.31%
Royal Dutch Shell 'B' (RDSB) 2,055.00p -1.27%
Capita (CPI) 1,257.00p -1.18%
ITV (ITV) 257.30p -1.04%
FTSE 250 - Risers
Zoopla Property Group (WI) (ZPLA) 228.90p +5.97%
TalkTalk Telecom Group (TALK) 384.10p +5.75%
Dechra Pharmaceuticals (DPH) 1,060.00p +4.23%
RPS Group (RPS) 224.00p +3.66%
Saga (SAGA) 207.90p +3.43%
Jardine Lloyd Thompson Group (JLT) 1,054.00p +3.23%
Crest Nicholson Holdings (CRST) 494.40p +3.02%
Bwin.party Digital Entertainment (BPTY) 89.40p +3.00%
Workspace Group (WKP) 875.00p +2.76%
Man Group (EMG) 174.00p +2.65%
FTSE 250 - Fallers
Restaurant Group (RTN) 688.00p -4.38%
Keller Group (KLR) 987.00p -4.08%
Euromoney Institutional Investor (ERM) 1,209.00p -3.28%
Telecity Group (TCY) 1,080.00p -3.14%
AL Noor Hospitals Group (ANH) 824.00p -3.06%
Vesuvius (VSVS) 442.30p -2.96%
SIG (SHI) 205.30p -2.79%
Premier Oil (PMO) 183.00p -2.40%
Carillion (CLLN) 330.80p -2.39% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Dax jumps as Bunds stabilise, real money flows reported European stocks closed out the day with strong gains as sovereign bond yields retreated a tad despite better than expected economic data out Stateside. The Dax-30 gained 1.84% to end the day at 11,559.82 while the Cac-40 tagged along with an advance of 1.36% to finish at 5,029.31.
Initial US weekly unemployment claims, a closely followed leading indicator for the American labour market, slipped by 1,000 to reach 264,000. That was better than the 273,000 expected by markets. The four-week moving average for claims plumbed to its lowest level since April 2000.
Acting as a backdrop, 10-year German Bund yields finished the session down by five basis points at 0.70%. The yield on US Treasury notes of equivalent maturity ended the day four basis points lower at 2.24%.
On Wednesday, some traders reported real money flows on Wall Street were heading into sovereign bonds "on the dips", although the negative momentum was still too strong.
In a lecture delivered at the International Monetary Fund on Thursday, European Central Bank president Mario Draghi said the central bank's bond purchase programme would be carried out in full, as planned.
Earlier in the day, Greek finance minister Yanis Varoufakis reiterated his proposal for a debt swap with the European Central Bank on the €27bn in debt which will be outstanding once Greece repays €6.7bn falling due in July and August.
However, Mario Draghi will not consider this due to the opposition he would face from the German Bundesbank, Varoufakis claimed.
Within the DJ Stoxx 600 the best performance was to be seen in the following industrial groups: Automobiles&Parts (1.55%), Chemicals (1.44%) and Personal and Household goods (1.39%).
Front month Brent crude futures edged 0.22% higher to $66.96 per barrel on the ICE. |
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| | US Market Report | | US open: Dow gains in triple digit on the back of upbeat jobless claims US stocks staged a solid rebound early on Thursday, as investors were buoyed by a positive jobless claims report.
Just before 15:00 BST, the Dow Jones Industrial Average was up 116 points, while the S&P 500 and the Nasdaq gained 12 and 33 points respectively, having generally finished flat on Wednesday due to weak retail sales data.
The greenback was feeling the pinch on Thursday, losing 0.33% against the pound and 0.54% and 0.17% against the euro and the yen respectively, while gold futures climbed 0.02% to $1,218.50.
Initial weekly unemployment claims slipped by 1,000 in the week ending on 9 May to reach 264,000, according to the Department of Labour, compared with expectations of a 270,000 reading.
The four week moving average fell by 7,750 to hit 271,750, its lowest level since 22 April, 2000.
"The decline should reassure those worried about the strength of the US recovery," said Paul Ashworth, chief US economist at Capital Economics.
"While retail sales and non-farm payrolls are both coincident indicators, this is a genuine leading indicator."
Meanwhile, the slide in factory gate prices in the US accelerated in April due to a sharp fall in gasoline prices.
Final demand producer prices fell at a 1.3% year-on-year pace, in comparison to a 0.8% drop in March, according to the Bureau for Labour Statistics.
In company news, restaurant operator Shake Shack jumped 8.9% after reporting late on Wednesday that its first quarter results exceeded expectations.
IT group Cisco Systems gained 0.07% despite reporting a first quarter loss on Wednesday, while clothing maker Perry Ellis jumped 9.37% after reporting an increase in first quarter earnings.
The earnings season continue with fashion retailer Nordstrom, manufacturing equipment Applied Materials, King Digital Entertainment and restaurant group El Pollo Loco Holdings set to report after the close. |
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| | Broker Tips | | Broker tips: RBS, ITV, TUI Royal Bank of Scotland "remains on the right strategic track" despite its recent underperformance against the sector, according to analysts at JPMorgan Cazenove. The US broker said that a sell-down of the government's stake in RBS and the resolution of ongoing litigation charges will be "key milestones" for the bank's long-term turnaround. "However, in our view the attractions of the shares lie well beyond our 12-month time horizon, so we remain 'neutral'."
Numis Securities has shifted its rating on broadcaster and producer ITV from 'buy' to 'add' following the recent strong performance by the stock.
With the company to benefit from the Rugby World Cup in the autumn amid the positive UK macro backdrop, the broker said it sees upside to advertising revenue estimates for the full year. "We raise our target from 275p to 290p though after their strong recent run we now rate the shares as an 'add' (was 'buy')," Numis said.
First-half results from TUI Group were strong, though an absence of catalysts from the travel tour operator has prompted Exane BNP Paribas to cut its rating on the stock from 'outperform' to 'neutral'. | | |
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