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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 open: FTSE rises ahead of inflation reading London investors began in more optimistic mood than was expected on Tuesday, boosted by bullish comments from the European Central Bank.
The FTSE 100, which had been expected to move lower on worries of a US rate hike, spiked through the 7,000 mark for the third day running, standing at 7,001, up 0.46% or 32 points at 09:02.
Helping lift the mood were new records highs in the US and Asian advances overnight, as well as a Monday night speech in London by European Central Bank (ECB) board member Benoit Coeure, who said the ECB would front-load its asset purchase scheme over May and June due to lower normal market liquidity in July and August.
While reassuring that short-term interest rates going below zero were not a problem for monetary policy and that the recent European government bond market sell-off was a normal correction he did admit that "the rapidity of the reversal" worried him more as it was "yet another incident of extreme volatility in global capital markets showing signs of reduced liquidity".
Markets had been expected to be lower due to concerns about earlier interest rate hikes across the Atlantic, with the San Francisco Fed releasing a paper that stating first quarter growth has been understated and may be due for a significant upward revision in the second, putting a June rise back on the cards.
At 09:30 the UK consumer price index will become centre of attention, with the annual rate of inflation is expected to show a flat reading of 0% for April.
This would be well below the Bank of England's (BoE) target of 2% and the lowest rate of inflation since estimates of the measure began in 1988.
BoE Governor Mark Carney last week in his Quarterly Inflation Report said deflation could emerge during the year, amid lower energy and food prices, but that inflation was projected to pick up towards the end of the year as the benefits of cheaper fuel boost consumer spending power.
"A temporary period of falling prices should not be mistaken for widespread and persistent deflation," he said.
A host of data is due out elsewhere, including German economic sentiment figures from ZEW and the Eurozone CPI at 10:00 London time, and US building permits and US housing starts at 13:30.
London's gauge of blue chip was higher despite Vodafone, a heavy weighing in the index, which was down despite reporting a return to growth in the fourth quarter. Final results showed organic service revenue up 0.1%, beating consensus forecasts for the final three months of the year. The telecoms giant said it expected the 2016 financial year to see earnings before interest, tax, depreciation and amortisation of £11.5bn-£12bn, versus the consensus estimate of £11.9bn.
Property developer Land Securities was a big riser after it has raised its dividend by 3.7% to 31.85p following a surge in demand for commercial property which has boosted its adjusted net asset value 27.6% to 1,293p.
Top of the 350 leaderboard was Big Yellow, as the self storage company reported rising annual profits thanks to higher occupancy and prices.
Icap was also higher despite a 21% full year decline in profit and a warning that it expected headwinds to continue. But management said they had "materially re-engineered" the business, with a significant reshaping of the global broking division.
DCC was another riser after the FTSE 250 company made a €464m bid for one of Shell's Butagaz liquefied petroleum gas business.
Going the other way was Aveva as its adjusted pre-tax profits sank 21% to £62.1m as margins shrank to 29.8% from 33% a year ago. Shares in the company have been inflated recently due to intense bid speculation. |
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| Market Movers
techMARK 3,257.05 +0.19%
FTSE 100 7,002.22 +0.48%
FTSE 250 18,118.12 +0.53%
FTSE 100 - Risers
Land Securities Group (LAND) 1,349.00p +2.90%
Coca-Cola HBC AG (CDI) (CCH) 1,460.00p +2.89%
Shire Plc (SHP) 5,515.00p +2.60%
Burberry Group (BRBY) 1,816.00p +2.25%
Kingfisher (KGF) 362.50p +2.11%
GKN (GKN) 364.80p +2.07%
Admiral Group (ADM) 1,486.00p +2.06%
Reed Elsevier (REL) 1,123.00p +2.00%
Persimmon (PSN) 1,908.00p +1.81%
ARM Holdings (ARM) 1,131.00p +1.80%
FTSE 100 - Fallers
BHP Billiton (BLT) 1,424.50p -2.63%
Vodafone Group (VOD) 228.95p -2.20%
Glencore (GLEN) 291.65p -1.80%
Rio Tinto (RIO) 2,886.00p -1.33%
Anglo American (AAL) 1,064.50p -1.16%
Randgold Resources Ltd. (RRS) 4,855.00p -1.08%
Fresnillo (FRES) 784.50p -1.01%
HSBC Holdings (HSBA) 614.10p -0.73%
Weir Group (WEIR) 1,930.00p -0.31%
Standard Chartered (STAN) 1,050.50p -0.19%
FTSE 250 - Risers
DCC (DCC) 4,818.00p +9.75%
Big Yellow Group (BYG) 686.00p +4.65%
Intermediate Capital Group (ICP) 565.50p +2.82%
Alent (ALNT) 365.30p +2.61%
Fidelity China Special Situations (FCSS) 167.10p +2.39%
AL Noor Hospitals Group (ANH) 908.50p +2.31%
Allied Minds (ALM) 650.00p +2.12%
Euromoney Institutional Investor (ERM) 1,220.00p +2.09%
Greencore Group (GNC) 355.50p +1.98%
Booker Group (BOK) 152.70p +1.94%
FTSE 250 - Fallers
Moneysupermarket.com Group (MONY) 286.60p -5.26%
Aveva Group (AVV) 1,925.00p -3.75%
BTG (BTG) 759.00p -3.07%
Kaz Minerals (KAZ) 257.60p -2.87%
Drax Group (DRX) 405.70p -2.62%
Petra Diamonds Ltd.(DI) (PDL) 171.50p -2.61%
Hunting (HTG) 591.00p -2.56%
Premier Oil (PMO) 167.10p -2.28%
Interserve (IRV) 609.00p -2.17%
Serco Group (SRP) 134.00p -1.90%
FTSE TechMARK - Risers
BATM Advanced Communications Ltd. (BVC) 14.50p +1.75%
Skyepharma (SKP) 293.75p +1.29%
Filtronic (FTC) 12.50p +1.01%
Oxford Instruments (OXIG) 1,075.00p +0.94%
Sepura (SEPU) 149.75p +0.84%
IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 201.71 +0.83%
Anite (AIE) 92.75p +0.82%
KCOM Group (KCOM) 96.75p +0.78%
Ricardo (RCDO) 880.00p +0.57%
SDL (SDL) 444.50p +0.45%
FTSE TechMARK - Fallers
Oxford Biomedica (OXB) 10.25p -6.82%
Dialight (DIA) 740.50p -1.79%
Innovation Group (TIG) 28.00p -1.75%
Vectura Group (VEC) 162.25p -0.76% |
| | UK Event Calendar | | Tuesday 19 May
INTERIMS
Greencore Group, Impax Asset Management Group, Innovation Group, Intelligent Energy Holdings, Paragon Group Of Companies, Renew Holdings, Topps Tiles, Victrex plc, Zytronic
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (EU) (10:00)
Building Permits (US) (13:30)
Consumer Price Index (EU) (10:00)
Harmonised Index of Consumer Prices (EU) (10:00)
New Car Registrations (EU) (10:00)
ZEW Survey (EU) (10:00)
ZEW Survey (GER) (10:00)
Q4
Big Yellow Group
FINALS
Aveva Group, Big Yellow Group, Bloomsbury Publishing, BTG, DCC, Entertainment One Limited, Homeserve, ICAP, Land Securities Group, Premier Foods, Vodafone Group
EGMS
New World Oil And Gas
AGMS
Accesso Technology Group, ClearStar Inc. (Reg S), Cloudbuy, Computacenter, Crossrider , EKF Diagnostics Holdings , Essenden, Frenkel Topping Group, Impax Environmental Markets, Instem, Japan Residential Investment Co Ltd., JSC KazMunaiGaz Exploration Production GDR (Reg S), M Winkworth, Microsaic Systems, MyCelx Technologies Corporation (DI), MyCelx Technologies Corporation (Reg S), Partnership Assurance Group , Portmeirion Group, Regus, Rockhopper Exploration, Royal Dutch Shell 'A', Royal Dutch Shell 'B', SafeCharge International Group Limited (DI), Somero Enterprises Inc.(Reg S), Stock Spirits Group , Synectics, TBC Bank Joint Stock Company GDR (REGS)
TRADING ANNOUNCEMENTS
ICAP
UK ECONOMIC ANNOUNCEMENTS
Consumer Price Index (09:30)
Housing Starts (US) (13:30)
Producer Price Index (09:30)
Retail Price Index (09:30)
FINAL DIVIDEND PAYMENT DATE
Brady, Holders Technology, Lloyds Banking Group, Miton Group, Quixant, Rathbone Brothers, Standard Life, Stilo International, Unite Group, Wood Group (John) |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks make healthy gains as ECB's Coeure comments lift sentiment European stocks rose in early trade as investors welcomed comments from Benoit Coeure, an executive board member at the European Central Bank, who said that the bank would front-load asset purchases in May and June due to low market liquidity during the summer months.
Coeure's comments weighed on the euro, which traded down at $1.1178, but lifted stocks. By 0910 BST, the Stoxx Europe 600 index was up 1.6% at 404.38, while the CAC was 1.9% higher at 5,105.52 and Germany's Dax was up 1.7% at 11,795.49.
Coeure made the comments in a speech delivered on Monday at a conference in London.
The European session was also underpinned by a strong performance in the US, where the Dow and S&P 500 hit all-time highs on Monday as dovish comments from Federal Reserve member Charles Evans underpinned hopes that the Fed will hold off on any rate hikes for a while longer.
Greece was still firmly in focus on Tuesday. Finance minister Yanis Varoufakis said in an interview with Star TV Channel on Monday that his government is "very close" to an agreement to unlock more creditor aid, but market participants are sceptical.
"A Greek bailout deal is still wayward as sentiment among creditors and observers remains unconvinced in stark contrast to the mood of the Greek government which is confident that talks are 'in their final stage.' Whether the outcome will be good or bad remains to be seen and depends on whom you ask," said Michael Van Dulken, head of research at Accendo Markets.
In corporate news, Unilever shares rose 1% after the company announced that its chief financial officer Jean-Marc Huet has decided to step down from his role after four and a half years, to be replaced by Graeme Pitkethly, the executive vice president of Unilever's UK and Ireland business.
Julius Baer gained 1% after the company reported a 1% drop in assets under management for the first four months of the year.
Vodafone bucked the trend, off 2% after posting a drop in adjusted operating profit and delivering a more cautious outlook than investors had expected.
Interdealer broker ICAP was also on the back foot after posting a 21% fall in full-year profit and saying it expect headwinds to continue.
In terms of sectors, car makers fared well after data showed that European car sales rose for a 20th consecutive month in April. BMW rose 2% while Daimler and Renault were up 3%.
On the economic front, investors are likely to eye the release of trade balance figures for the euro zone and the German ZEW survey at 1000 BST. |
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| | US Market Report | | US close: Stocks rally as Dow and S&P 500 notch record highs US stocks rallied on Monday, after dovish comments from a Federal Reserve member called for a postponement in the first hike in interest rates.
The Dow Jones Industrial Average and the S&P 500 both notched intraday records closing respectively 26.32 and 6.47 points higher, while the Nasdaq climbed 18.66 points.
The outlook for economic growth and the jobs market in the US is "good" but inflation is "too low" and has been so for the last six years, the president of the Federal Reserve Bank of Chicago, Charles Evans, said in a speech in Stockholm.
"The Fed should refrain from raising the federal funds rate until there is much greater confidence that inflation one or two years ahead will be at our 2% target," he said.
"I see no compelling reason for us to be in a hurry to tighten financial conditions until then."
The release of the minutes of the Federal Open Market Committee meeting from 29 April on Wednesday and could shed light on the timing of the first rate hike.
"In the Fed's last meeting it rightfully downgraded its view on the economy but still implied a rate hike could happen as early as June," said Jasper Lawler, analyst at CMC Markets.
"It seems pretty unlikely now that the Fed would risk a move in June but depending on the minutes, September could still be on.
"A determination to hike rates despite the poor data could rattle markets, but given the minutes are two-weeks old, investors may just look through them. "
Meanwhile, the National Association of Home Builders index, a gauge of confidence among homebuilders in the US, dropped two points to 54 in May, led lower by views on current sales of single-family homes.
The reading represents a nine point increase from the May 2014 reading of 45.
"Consumers are exhibiting caution, and want to be on more stable financial footing before purchasing a home," said NAHB Chief Economist David Crowe.
Women's apparel retailer Ann surged 19.87% after receiving a $2bn takeover offer from AscenaRetail Group, which would value Ann shares at $47 each, representing a 21% premium on Friday's closing price, while Ascena shares shed 0.99%.
Healthcare group Endo International fell 5.57% after announcing plans to purchase privately-held Par Pharmaceuticals in a $8bn deal.
Elsewhere, European stocks eked out gains, with the German DAX gaining 1.3%, while over in Asia the Nikkei 225 Index climbed 0.8% but Chinese stocks slid.
Oil prices fell, with West Texas Intermediate losing 0.49% to $59.40 a barrel, while Brent shed 0.74% to $66.32 a barrel.
The dollar climbed 0.5% against both pound and yen and rallied 1.2% against the euro, while gold futures slid 0.02% to $1,225.10.
S&P 500 - Risers
Altera Corp. (ALTR) $46.93 +5.65%
Discovery Communications Inc. Class A (DISCA) $32.98 +3.86%
Tenet Healthcare Corp. (THC) $50.14 +3.49%
Newfield Exploration Co (NFX) $36.74 +3.38%
Pepco Holdings Inc. (POM) $26.98 +3.33%
Avon Products Inc. (AVP) $7.18 +3.23%
Symantec Corp. (SYMC) $25.19 +2.90%
E*TRADE Financial Corp. (ETFC) $29.84 +2.86%
Urban Outfitters Inc. (URBN) $40.72 +2.85%
Graham Holdings Co. (GHC) $1,017.00 +2.54%
S&P 500 - Fallers
Peabody Energy Corp. (BTU) $3.93 -8.39%
Keurig Green Mountain Inc (GMCR) $90.42 -4.07%
Transocean Ltd. (RIG) $20.14 -3.13%
Freeport-McMoRan Inc (FCX) $22.14 -3.02%
Windstream Holdings Inc (WIN) $8.36 -2.90%
Rowan Companies plc (RDC) $22.63 -2.83%
Mattel Inc. (MAT) $26.28 -2.49%
Range Resources Corp. (RRC) $59.77 -2.27%
United States Steel Corp. (X) $25.48 -2.26%
Murphy Oil Corp. (MUR) $43.53 -2.22%
Dow Jones I.A - Risers
Intel Corp. (INTC) $33.40 +1.24%
Apple Inc. (AAPL) $130.19 +1.10%
Johnson & Johnson (JNJ) $103.42 +1.09%
Home Depot Inc. (HD) $114.33 +0.86%
Wal-Mart Stores Inc. (WMT) $79.90 +0.83%
JP Morgan Chase & Co. (JPM) $66.42 +0.82%
Goldman Sachs Group Inc. (GS) $204.55 +0.78%
Cisco Systems Inc. (CSCO) $29.76 +0.71%
Visa Inc. (V) $69.97 +0.57%
Travelers Company Inc. (TRV) $103.17 +0.48%
Dow Jones I.A - Fallers
Chevron Corp. (CVX) $106.65 -1.28%
Exxon Mobil Corp. (XOM) $86.83 -0.60%
Microsoft Corp. (MSFT) $48.01 -0.59%
Coca-Cola Co. (KO) $41.31 -0.51%
Procter & Gamble Co. (PG) $80.71 -0.42%
Verizon Communications Inc. (VZ) $49.59 -0.40%
E.I. du Pont de Nemours and Co. (DD) $69.99 -0.37%
Merck & Co. Inc. (MRK) $60.03 -0.33%
3M Co. (MMM) $162.82 -0.29%
Nike Inc. (NKE) $104.75 -0.22%
Nasdaq 100 - Risers
Altera Corp. (ALTR) $46.93 +5.65%
Discovery Communications Inc. Class A (DISCA) $32.98 +3.86%
Symantec Corp. (SYMC) $25.19 +2.90%
Xilinx Inc. (XLNX) $46.60 +1.98%
Tractor Supply Company (TSCO) $90.13 +1.86%
Ross Stores Inc. (ROST) $102.35 +1.86%
Cognizant Technology Solutions Corp. (CTSH) $64.74 +1.84%
Avago Technologies Ltd. (AVGO) $130.17 +1.80%
Micron Technology Inc. (MU) $26.76 +1.63%
Alexion Pharmaceuticals Inc. (ALXN) $163.16 +1.62%
Nasdaq 100 - Fallers
Keurig Green Mountain Inc (GMCR) $90.42 -4.07%
Mattel Inc. (MAT) $26.28 -2.49%
NetApp Inc. (NTAP) $34.80 -1.69%
Vodafone Group Plc ADS (VOD) $36.50 -1.46%
Mondelez International Inc. (MDLZ) $40.00 -1.11%
PACCAR Inc. (PCAR) $65.77 -1.02%
Twenty-First Century Fox Inc Class A (FOXA) $33.67 -0.93%
QUALCOMM Inc. (QCOM) $70.42 -0.90%
Baidu Inc. (BIDU) $191.25 -0.90% |
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| | Newspaper Round Up | | Greencore first half profit and revenue rise despite difficult UK market Food group Greencore encouraged with news that operating profit had been lifted by growth in the food to go market, despite the difficult retail environment in the UK.
First-half operating profits rose 7.8% to £40.1m on revenue of £639.8m, which is up 3.2% from the same period last year.
"The UK grocery retail environment remains difficult with profound changes taking place amongst our customers, together with net price deflation. Our business has continued to trade well despite these challenges given its focus on convenience offerings which continue to exhibit volume growth," said the company.
Adjusted earnings per share rose 8.6% to 7.6p and Greencore posted an interim dividend of 2.4p per share.
The company said it was planning a significant increase in capital investment to support customer business wins, with the Phase 1 extension of its Northampton facility successfully completed and the second phase well under way. | | |
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