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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: Early gains erased as US economic data disappoints UK stocks finished in the red on Friday after erasing earlier gains following some weaker-than-expected economic data from the States. Wall Street stocks were swinging between gains and losses after the open with both the S&P 500 and Dow Jones Industrial Average wavering near record highs.
Investors were attempting to predict the time-frame for a Federal Reserve rate hike in light of poor data on industrial production and consumer confidence.
The FTSE 100 settled 0.18% lower at 6,960.49, firmly above its intra-day low of 6,937.12 but well below the its daily high of 7,009.41.
US industrial production unexpectedly contracted last month, marking the fifth straight decline in output. According to figures from the Federal Reserve on Friday, US industrial production fell by a seasonally-adjusted 0.3% in April, after an upwardly-revised 0.3% fall in March, missing forecasts for no change.
Meanwhile, the University of Michigan said its gauge of US consumer sentiment fell to a seven-month low of 88.6 in May, compared with a final April level of 95.9. Analysts had expected a smaller dip to 94.5.
"Confidence has been hitherto strong among consumers, but it looks like the recent downturn in job creation and the rising oil price have taken some of the fight out of Americans," said analyst Chris Beauchamp from IG.
He said that the Fed minutes out next week will be "crucial" in determining the outlook for interest rates - "if the world's most important set of monetary policymakers still seem inclining to a 2015 rate hike then equities could take another beating".
Closer to home, data from the Office for National Statistics showed that UK construction output jumped 4% in March after a 0.3% decline in February, more or less in line with predictions.
Bwin surges, Coca-Cola HBC erases early gains
Coca-Cola bottler Coca-Cola HBC slipped into the red after an earlier positive start despite after beating forecasts slightly with an unexpected increase in first-quarter sales. The company did however say it "remains cautious" about operations in Greece amid a "fragile political environment".
Housebuilder Bovis Homes also erased gains even though it hiked its dividend plans following a strong start to the year. Bovis said it now planned to pay out 40p per share, up from the 35p it had previously indicated.
Product testing and quality certification group Intertek dropped into the red after saying it traded in line with expectations in the first four months of 2015 with revenue growth of 3.3%, helped by a stronger pound.
SABMiller pleased with a deal to buy London-based modern craft brewer Meantime Brewing Company for an unspecified sum as it looks to diversify from its mainstream beer brands.
Shares in online gaming group Bwin.party digital entertainment surged after confirming it has received several merger and acquisition proposals, including an audacious attempt by AIM-listed GVC Holdings to acquire its much larger rival.
Market Movers
techMARK 3,238.93 -0.07%
FTSE 100 6,960.49 -0.18%
FTSE 250 18,020.42 +0.51% |
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| | FTSE 100 - Risers
Carnival (CCL) 3,147.00p +2.27%
ITV (ITV) 262.00p +1.83%
Compass Group (CPG) 1,147.00p +1.77%
Shire Plc (SHP) 5,385.00p +1.70%
Aviva (AV.) 542.50p +1.69%
Hammerson (HMSO) 690.50p +1.69%
Standard Life (SL.) 481.00p +1.54%
Taylor Wimpey (TW.) 184.70p +1.48%
Whitbread (WTB) 5,325.00p +1.43%
British Land Company (BLND) 878.00p +1.33%
FTSE 100 - Fallers
Glencore (GLEN) 293.30p -1.81%
Anglo American (AAL) 1,090.50p -1.80%
Coca-Cola HBC AG (CDI) (CCH) 1,391.00p -1.77%
Babcock International Group (BAB) 1,081.00p -1.55%
AstraZeneca (AZN) 4,367.50p -1.51%
Royal Dutch Shell 'B' (RDSB) 2,026.00p -1.41%
Royal Dutch Shell 'A' (RDSA) 1,991.50p -1.34%
Tesco (TSCO) 224.50p -1.28%
Sainsbury (J) (SBRY) 265.90p -1.23%
GKN (GKN) 353.80p -1.20%
FTSE 250 - Risers
Bwin.party Digital Entertainment (BPTY) 99.45p +11.24%
Restaurant Group (RTN) 712.00p +3.49%
Cranswick (CWK) 1,588.00p +3.12%
Go-Ahead Group (GOG) 2,666.00p +3.05%
CLS Holdings (CLI) 1,938.00p +3.03%
Northgate (NTG) 654.00p +2.99%
Kaz Minerals (KAZ) 269.90p +2.90%
Rathbone Brothers (RAT) 2,272.00p +2.85%
Clarkson (CKN) 2,354.00p +2.84%
UDG Healthcare Public Limited Company (UDG) 549.50p +2.71%
FTSE 250 - Fallers
Evraz (EVR) 193.70p -6.11%
Premier Oil (PMO) 177.20p -3.17%
Hunting (HTG) 595.50p -2.46%
Drax Group (DRX) 414.90p -2.35%
Tullow Oil (TLW) 416.90p -2.25%
Wood Group (John) (WG.) 697.00p -2.18%
Ocado Group (OCDO) 382.20p -1.97%
Infinis Energy (INFI) 182.80p -1.77%
International Personal Finance (IPF) 495.20p -1.55% |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Weak US data weighs on stocks European stocks ended the day on a sour note following the release of mixed economic data Stateside, although the sovereign bond space seemed to find its feet following recent heavy selling. Germany's Dax-30 closed lower by 0.98% to 11,447.03 while the Cac-40 in Paris retreated 0.71% to 4,993.82.
The yield on the 10-year German Bund was eight basis points lower to 0.63% and borrowing costs on Italian government debt of the same maturity fell six basis points to 1.78%.
On Friday morning analyst Laurence Mutkin at BNP Paribas told clients that "the sell-off [in sovereign bonds] should be approaching its end. We expect vulnerability in the near term, and a more positive tone by the end of May or early June".
Late in the afternoon the University of Michigan's reported that its gauge of US consumer confidence retreated to a seven-month low of 88.6 in May after a print of 95.9 in the month before (consensus: 95.9). The figures immediately sent the euro higher and crude futures lower.
"It is hard to know just exactly what spooked households this month. [...] Nevertheless, regardless of the explanation, the decline in confidence suggests that the weakness of consumption in recent months may be more than just a temporary blip," wrote Capital Economics's chief US economist Paul Ashworth.
The latest tracking estimate from Barclays on 14 May pointed to an annualised contraction of 1.1% in US gross domestic product over the first three months of 2015.
S&P reaffirms rating on long-term Italian debt
After the close of trading Standard & Poor's affirmed its rating on the long-term sovereign debt of Italy at BBB- with a stable outlook.
The ratings agency said believes the country's economic recovery is on track, but pointed out that is mainly due to external factors such as the depreciation in the single currency and the drop in the oil price.
However, more work needs to be done on improving the primary surplus.
European Union expands anti-trust probe
A jump in shares of chemicals-maker Royal DSM was attributed to takeover speculation.
Stainless-steel maker Outokumpu Oyj gained after an expanded competition probe by European authorities raised hopes of tariffs being imposed on foreign rivals.
Within the DJ Stoxx 600 the biggest losses were seen in the following industrial groups: Automobiles&Parts (-1.56%), Oil&Gas (-1.55%) and Basic Resources (-0.85%).
Euro/dollar advanced 0.23% to 1.1434. |
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| | US Market Report | | US open: Stocks slide on the back of disappointing consumer confidence data US stocks slid on Friday, on the back of disappointing consumer sentiment data and mixed earnings reports. Just after 15:00 BST, the Dow Jones Industrial Average was down 25 points, while the S&P 500 and the Nasdaq lost four and 13 points, respectively.
US consumer sentiment fell to a reading of 88.6 in May, a seven-month low, compared with a final April level of 95.9, a report from the University of Michigan said on Friday.
Analysts had expected the closely-monitored index to fall to 94.5 in May's preliminary reading.
On the back of the disappointing reading, the dollar fell 0.15% against the euro and 0.12% against the pound, although it was broadly stable against the yen, while gold futures slid 0.58% to $1,218.10.
Manufacturing activity in the New York Fed's jurisdiction rebounded slightly in May, but not by as much as analysts had hoped for, as the so-called Empire State factory gauge increased to 3.1 this month, according to the New York Federal Reserve.
This marked an improvement from April's reading of -1.2, the index's first reading below zero since December.
Meanwhile, US industrial production unexpectedly dropped 0.3% month-on-month in April after a revised 0.3% decline in March, compared with the consensus forecast for no change and marking a fifth straight decline.
"The April industrial production report reflects the continued headwinds the US manufacturing sector faces from a strong dollar, lower oil prices and softness in international demand," Barclays analysts said in a note.
Netflix in China talks
In company news, Netflix rose 3.06% on the heels of reports the Internet TV network was in talks with a Chinese media group to enter the country's on-demand streaming market.
Fast food retailer Yum! Brands gained 1.5%after the fast-food company was upgraded to overweight from neutral at JP Morgan, while sector peer El Pollo Loco plunged 14.45% after reporting sales that fell below forecasts at the end of the previous session.
King Digital Entertainment fell 4.60% after the "Candy Crush" maker reported a decline in revenue late Thursday, while retailer Nordstrom slid 0.07% after its results fell short of estimates
Elsewhere, almost all European stocks built on Thursday's gains to edge higher, while Hong Kong's Hang Seng index closed up 2%, following speculation that a stock-connect programme between Hong Kong and Shenzhen could be announced in the next 48 hours. |
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| | Broker Tips | | Broker tips: British Land, ITV, Wood Group British Land was extending gains made the previous session following a solid annual report, Goldman Sachs and Canaccord Genuity both raised their targets for the shares and kept 'buy' ratings, while Numis Securities reiterated an 'add' recommendation and Exane BNP Paribas left its 'outperform' stance unchanged. As for Goldman, which lifted its target from 975p to 985p, it said the results showed a "source of opportunity" for the real estate investment trust. It highlighted a "variety of positive catalysts" for the stock going forward.
ITV's share price rebounded slightly on Friday after an underwhelming first-quarter update the previous day which caused Barclays Capital to cut its rating on the stock from 'overweight' to 'equal weight'.
The broker increased its target for the shares slightly from 250.4p to 260p to integrate numbers from the recent acquisition of Talpa Media. However, BarCap said that 'in-line' results from the broadcaster and producer were "not good enough" for it to maintain a positive recommendation.
Canaccord Genuity has downgraded energy services outfit Wood Group from 'hold' to 'sell' and cut its target from 650p to 625p following the recent strong gain in the shares. | | |
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