| | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: Sterling and Greenback jump versus euro Sterling was moving sharply higher versus the European single currency on Thursday morning, alongside the US dollar, as the market acknowledged the relatively greater scope for interest rate rises in both the UK and the US. That came ahead of a speech by Bank of England Governor Mark Carney, scheduled for 19:00 BST.
As of 08:52 London's top-flight index was 24.22 points higher at 6,777.97 and the FTSE 250 up by another 75.85 points to 17.712.93.
Overnight, Wall Street took a breather after four straights days of gains, as the strong US dollar weighed on oil and commodities prices more generally.
The main equity benchmarks in the Eurozone were all registering gains of over 1% on average on Thursday morning, egged on by the drop in the euro to 1.09 versus the Greenback.
Greek lawmakers overwhelmingly voted overnight to approve the package of reforms demanded by Brussels in exchange for further aid, so all eyes will now turn to the European Central Bank.
Following last night's vote in Athens the ECB will decide later today whether or not to increase crisis funding for Greek lenders. It may also announce a reduction in the 'haircut' it applies on the collateral those banks provide in exchange, some analysts had speculated over recent days.
Euro area integrity damaged
That comes amid an increased focus among Eurozone officials regarding just how much aid or debt forgiveness Greece is likely to require to be able to remain inside the euro area.
"The integrity of the Eurozone has probably been damaged rather than strengthened by the latest negotiations," analysts at Exane BNP said in a research note sent to clients.
"Soft debt restructuring is likely to occur as of the first ESM programme review, but a notional haircut has been ruled out. However, in our view, achieving debt sustainability through soft debt restructuring alone will be very challenging."
Temporary Grexit might be best
Speaking to Germany's Deutschlandfunk radio, Schaeuble objected to a haircut on the nominal value of Greece's debt, which many observers say would run into legal obstacles as it would be considered 'monetary financing'.
A 'haircut' is incompatible with the country's continued membership of the euro, he said, adding "but this would perhaps be the better way for Greece".
Companies news
UK communications regulator Ofcom has cited a break-up of BT as one of a range of possible measures to improve competitiveness in the digital communications market. The regulator said separating Openreach, BT's infrastructure division, from the main group "could deliver competition or wider benefits for end users" and "would remove BT's underlying incentive to discriminate against competitors".
Dixons Carphone posted a 21% rise in pre-tax profit in its final results and said its integration was progressing well. For the 13 months to 2 May 2015, pre-tax profit came in at £381m from £316m last year, on revenue of £9.9bn, up 6% from 2014 on a like-for-like basis. The numbers were better than analysts had expected.
Imperial Tobacco is setting out plans to sell a further stake in its Spanish logistics unit Cia. de Distribution Integral Logista Holdings SA, Bloomberg reported.
Credit services company Experian said full year expectations were unchanged, but warned of currency headwinds in an update. The FTSE 100 firm said in a first quarter update group organic revenue growth was 3% at constant exchange rates, but at actual exchange rates total revenue was down 6%. Experian said the difference related to foreign exchange movements against the US dollar.
Australian miner Rio Tinto scaled back its iron ore targets, citing weather disruption as impacting production. In a second quarter update Rio Tinto said iron ore production was 9% higher compared to the same quarter in 2014 and 7% above the first quarter of 2015.
Residential developer Telford Homes said it expected strong demand for London housing after it reported forward sales of more than half its development pipeline. The home builder said the total value of all forward sales secured and due for completion in the year to 31 March 2016 onwards exceeded £620 million, more than three and a half times the revenue reported last year. Its development pipeline through to 2019 remained at about £1.1bn. |
| | Is Your Pension Enough to Retire? | | If you have £250,000, download the guide for retirees written by Forbes columnist and money manager Ken Fisher's firm. Even if you have something else in place, this must-read guide includes research and analysis you can user right now. Don't miss it! |
| | Market Movers
techMARK 3,188.44 +0.34%
FTSE 100 6,780.39 +0.39%
FTSE 250 17,726.23 +0.51%
FTSE 100 - Risers
Pearson (PSON) 1,249.00p +1.71%
InterContinental Hotels Group (IHG) 2,738.00p +1.41%
Weir Group (WEIR) 1,616.00p +1.38%
St James's Place (STJ) 991.50p +1.28%
Hammerson (HMSO) 667.00p +1.21%
Shire Plc (SHP) 5,505.00p +1.19%
Wolseley (WOS) 4,354.00p +1.16%
Ashtead Group (AHT) 1,069.00p +1.14%
Schroders (SDR) 3,203.00p +1.14%
Land Securities Group (LAND) 1,322.00p +1.07%
FTSE 100 - Fallers
G4S (GFS) 270.10p -0.92%
Burberry Group (BRBY) 1,564.00p -0.89%
Sports Direct International (SPD) 728.50p -0.82%
Anglo American (AAL) 869.50p -0.56%
Randgold Resources Ltd. (RRS) 4,086.00p -0.39%
Fresnillo (FRES) 674.00p -0.37%
BG Group (BG.) 1,073.50p -0.33%
BHP Billiton (BLT) 1,230.50p -0.24%
Antofagasta (ANTO) 653.00p -0.23%
BT Group (BT.A) 468.65p -0.17%
FTSE 250 - Risers
Grafton Group Units (GFTU) 733.00p +2.66%
RPC Group (RPC) 677.50p +2.19%
Card Factory (CARD) 324.10p +2.08%
Just Eat (JE.) 440.00p +2.02%
Fidelity China Special Situations (FCSS) 141.70p +1.94%
Bank of Georgia Holdings (BGEO) 2,000.00p +1.73%
Petrofac Ltd. (PFC) 909.50p +1.73%
SIG (SHI) 205.60p +1.73%
Diploma (DPLM) 798.00p +1.59%
Derwent London (DLN) 3,697.00p +1.57%
FTSE 250 - Fallers
Allied Minds (ALM) 480.00p -5.88%
Mitchells & Butlers (MAB) 412.80p -2.23%
Evraz (EVR) 116.10p -1.69%
OneSavings Bank (OSB) 296.90p -1.36%
Kaz Minerals (KAZ) 198.50p -1.34%
Restaurant Group (RTN) 685.00p -1.01%
Worldwide Healthcare Trust (WWH) 2,035.00p -0.73%
Daejan Holdings (DJAN) 6,355.00p -0.70%
Ophir Energy (OPHR) 114.40p -0.69% |
| | UK Event Calendar | | Thursday 16 July
INTERIM EX-DIVIDEND DATE
Crystal Amber Fund Ltd., Sanderson Group, WH Smith
QUARTERLY EX-DIVIDEND DATE
Merchants Trust, Middlefield Canadian Income PCC, TwentyFour Select Monthly Income Fund Limited
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (EU) (10:00)
Consumer Price Index (EU) (10:00)
Continuing Claims (US) (13:30)
ECB Interest Rate (EU) (12:45)
Harmonised Index of Consumer Prices (EU) (10:00)
Initial Jobless Claims (US) (13:30)
New Car Registrations (EU) (10:00)
Philadelphia Fed Index (US) (15:00)
Q2
Schlumberger Ltd.
GMS
Plus500 Ltd (DI)
FINALS
Dixons Carphone , Sports Direct International
IMSS
Experian
SPECIAL DIVIDEND PAYMENT DATE
Jarvis Securities
SPECIAL EX-DIVIDEND PAYMENT DATE
Homeserve
EGMS
Aer Lingus Group
AGMS
Aurora Investment Trust, Burberry Group, Caledonia Investments, Dekeloil Public Ltd, FirstGroup, Hansa Trust, Hansa Trust 'A' Non Voting Shares, Infinis Energy, LondonMetric Property, Mckay Securities, Octopus AIM VCT, RAB Special Situations Company Limited, Telford Homes, Wynnstay Properties
TRADING ANNOUNCEMENTS
Hilton Food Group
FINAL DIVIDEND PAYMENT DATE
Aberdeen Japan Investment Trust
FINAL EX-DIVIDEND DATE
Anpario, Bacit Limited, Downing One VCT , Energy Technique, F&C Global Smaller Companies, Halma, Invesco Asia Trust, IS Solutions, Martin Currie Pacific Trust, Quantum Pharma, Walker Crips Group, Walker Greenbank
|
| | Is Lloyds About To Be Sold Off Cheaply? | | Dear Subscriber,
It’s official…
The last of the government’s stake in Lloyds is to be sold off.
And this time, the ‘little guy’ can get involved.
There’s rumours of a big discount, but we think there could be a bigger opportunity…
Download Your Free Report Now |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Equities gain as Greek parliament approves austerity measures European equities rose on Thursday as investors welcomed news that Greek lawmakers have approved the austerity measures needed for Athens to enter formal negotiations over its third bailout. In the Athens parliament, 229 lawmakers voted in favour while 64 rejected the plan and six abstained.
By 0900 BST, the benchmark Stoxx Europe 600 index and France's CAC 40 were both up 1%, while Germany's DAX was 1.1% firmer.
Spain's IBEX 35 and Italy's FTSE Mib were both up 1.1%.
It's not a done deal, however, as MPs in euro states now need to vote on the plan, with Germany's Bundestag due to vote on Friday. The French national assembly has already voted in favour.
In the meantime, the European Commission formally proposed on Wednesday to provide a short-term €7bn bridge gap for Greece through the European Financial Stability Mechanism.
With the Greek debt saga still far from over, investors digested comments from German finance minister Wolfgang Schaeuble, who said it might be best if Greece temporarily freed itself from the constraints of the euro bloc.
Speaking to broadcaster Deutschlandfunk radio, Schaeuble objected to a haircut on the nominal value of Greece's debt, which many observers say would run into legal obstacles as it would be considered 'monetary financing'.
Nevertheless, he said Wednesday night's approval of a package of economic reforms by the parliament in Athens means "we are a step further" and marks an important step, and said he would ask the German parliament to reopen negotiations on a third bailout package for Greece "with full conviction".
In currency markets, the euro fell 0.5% against the greenback to $1.0900.
Societe Generale said: "With the debate about debt restructuring well and truly opened, with the Greek government in chaos and with implementation of the terms of the bailout far harder than agreeing to them in Parliament, the uncertainty which can weaken the euro won't go away any time soon. Secondly, all of this uncertainty will require the ECB to maintain super-easy policies for even longer than was the case already."
In corporate news, Alfa Laval surged after it posted a better-than-expected rise in second-quarter earnings.
Swatch Group was also firmly in the lack after sounding an upbeat note on its full-year outlook, although it posted a near-20% fall in first-half net profit.
Shares in French supermarket retailer Carrefour rose after it said second-quarter sales were given by a boost by strong international growth and a good performance in its home market.
In London, Sports Direct fell into the red despite posting a 31% rise in pre-tax profit, as investors were disappointed that the company has decided to cuts its bonus scheme earnings target for 2016 after failing to make the acquisitions necessary to lift sales.
In terms of overall sectors, the Stoxx Europe 600 autos index was the standout gainer, up 1.3% after data showed that European car sales growth rose to its fastest pace in over five years in June.
On the economic calendar, the European Central bank rate announcement us due at 1245 BST and the focus is expected to remain firmly on Greece, as market participants reckon the ECB may extend emergency loans to Greek banks. |
| | Are You Confused About Your Pension? | | If you have £250,000, download the guide for retirees written by Forbes columnist and money manager Ken Fisher's firm. Even if you have something else in place, this must-read guide includes research and analysis you can user right now. Don't miss it! |
| | US Market Report | | US close: Stocks struggle for direction after Yellen's testimony and bulk of data US stocks fluctuated on Wednesday as investors digested comments from Federal Reserve chairwoman Janet Yellen and a raft of economic data. The Dow Jones Industrial Average closed down three points to 18,050.17, while the S&P 500 lost two points and the Nasdaq and gained five points respectively.
Yellen speech
An increase in short-term interest rates is likely at some point this year, Yellen told congressmen on Wednesday afternoon. Yellen said the prospects for "further improvement" in the US labour market and economy more broadly were favourable.
However, some market gauges indicate "there is still some slack in labour markets".
"Although there are tentative signs that wage growth has picked up, it continues to be relatively subdued, consistent with other indications of slack," she said.
Yellen's message was met with a lukewarm reception, with analysts indicating that the Fed chairwoman's testimony provided little new insight into her latest thinking.
"Regardless of her current assessment of economic conditions, what will determine the timing of the first rate hike and the pace of tightening after that is economic conditions, particularly the pace of wage growth and core inflation," said Paul Ashworth, chief US economist at Capital Economics.
"We still believe that a pick-up in both will prompt the Fed into a much more aggressive series of rate hikes next year."
A weak reading on June retail sales out on Tuesday sparked speculation the Fed may delay its first rate hike, which pushed the main stock averages higher for a fourth straight day.
Wednesday data
Manufacturing activity in the US picked up slightly in July, a leading indicator for activity in the sector showed.
The Federal Reserve bank of New York's manufacturing sector gauge rose to 3.9 for July from -2 in the previous month, exceeding expectations of a 3.3 reading.
Meanwhile, US factory gate prices increased by 0.4% month-on-month in June, ahead of consensus forecasts of a 0.2% rise.
"We expect PPI inflation to continue to rise, as the significant drag from the energy component is likely behind us and we expect the impact of the dollar appreciation on domestic inflation to largely dissipate by the second half of this year," Barclays analysts said in a note.
According to the Federal Reserve, industrial output grew 0.3% month-on-month in June, compared with analysts' expectations of a 0.1% increase, while capacity utilisation rose to 78.4% last month from an upwardly revised 78.2%, beating forecatsts of a 78.1% reading.
Earnings in focus
In company news, Bank of America rose 3.21% after its second-quarter earnings and revenue beat expectations.BlackRock climbed 1.10% after posting better-than-expected second-quarter earnings and revenue.
Biotech group Celgene jumped 6.81% after announcing late on Tuesday that it was in talks to buy Receptos, whose shares surged 11.2%.
Meanwhile, Delta Air Lines climbed 0.76% after posting better-than-expected quarterly results, while Netflix jumped 8% in after hour trading after its quarterly results impressed.
Elsewhere, European stocks fluctuated as investors waited for Greece's parliament to vote on the bailout deal, while Asian markets closed on a mixed note, with Chinese stocks ending lower, despite solid economic data.
The dollar climbed 0.36% against the yen, gaining 0.49% against the euro but it was flat against the pound, while gold futures fell 0.47% to $1,148.10.
Oil prices tumbled, with West Texas Intermediate losing 3.13% to $51.43 a barrel, while Brent dropped 2.49% to $57.09 a barrel.
S&P 500 - Risers
Macy's Inc. (M) $72.02 +7.92%
Celgene Corp. (CELG) $131.43 +6.98%
US Bancorp (USB) $45.53 +3.76%
Bank of America Corp. (BAC) $17.69 +3.30%
Vertex Pharmaceuticals Inc. (VRTX) $133.50 +3.14%
Windstream Holdings Inc (WIN) $5.56 +2.77%
Cablevision Systems Corp. (CVC) $27.49 +2.57%
Hartford Financial Services Group Inc. (HIG) $46.67 +2.12%
Assurant Inc. (AIZ) $73.15 +1.68%
Harris Corp. (HRS) $82.10 +1.62%
S&P 500 - Fallers
United States Steel Corp. (X) $18.52 -7.03%
Nabors Industries Ltd. (NBR) $12.84 -7.02%
Allegheny Technologies Inc. (ATI) $26.21 -6.92%
Peabody Energy Corp. (BTU) $1.52 -6.17%
Ensco Plc. (ESV) $20.00 -5.62%
CONSOL Energy Inc. (CNX) $18.93 -5.50%
Diamond Offshore Drilling Inc. (DO) $24.00 -4.95%
Helmerich & Payne Inc. (HP) $62.74 -4.85%
Newfield Exploration Co (NFX) $34.78 -4.79%
Rowan Companies plc (RDC) $18.67 -4.77%
Dow Jones I.A - Risers
Apple Inc. (AAPL) $126.82 +0.96%
Unitedhealth Group Inc. (UNH) $125.98 +0.78%
Johnson & Johnson (JNJ) $100.44 +0.66%
General Electric Co. (GE) $26.78 +0.47%
Goldman Sachs Group Inc. (GS) $213.07 +0.43%
Walt Disney Co. (DIS) $118.31 +0.39%
Microsoft Corp. (MSFT) $45.76 +0.31%
McDonald's Corp. (MCD) $99.08 +0.30%
Cisco Systems Inc. (CSCO) $28.11 +0.29%
Home Depot Inc. (HD) $115.61 +0.22%
Dow Jones I.A - Fallers
Chevron Corp. (CVX) $94.24 -1.37%
E.I. du Pont de Nemours and Co. (DD) $59.00 -0.72%
American Express Co. (AXP) $78.51 -0.58%
Boeing Co. (BA) $146.92 -0.56%
3M Co. (MMM) $156.05 -0.47%
Exxon Mobil Corp. (XOM) $82.76 -0.42%
Nike Inc. (NKE) $111.92 -0.37%
Caterpillar Inc. (CAT) $84.17 -0.34%
United Technologies Corp. (UTX) $111.21 -0.27%
Pfizer Inc. (PFE) $34.99 -0.26%
Nasdaq 100 - Risers
Celgene Corp. (CELG) $131.43 +6.98%
Vertex Pharmaceuticals Inc. (VRTX) $133.50 +3.14%
Charter Communications Inc. (CHTR) $181.00 +2.21%
Liberty Global plc Series A (LBTYA) $51.75 +2.01%
Liberty Interactive Corporation QVC Group (QVCA) $29.04 +1.11%
Apple Inc. (AAPL) $126.82 +0.96%
Fastenal Co. (FAST) $41.49 +0.92%
Comcast Corp. (CMCSA) $63.77 +0.84%
NetApp Inc. (NTAP) $31.14 +0.81%
Twenty-First Century Fox Inc Class A (FOXA) $33.93 +0.80%
Nasdaq 100 - Fallers
Micron Technology Inc. (MU) $18.88 -3.72%
Wynn Resorts Ltd. (WYNN) $103.42 -3.58%
Vimpelcom Ltd Ads (VIP) $4.93 -3.33%
Baidu Inc. (BIDU) $186.58 -2.46%
Netflix Inc. (NFLX) $97.95 -2.41%
CH Robinson Worldwide Inc (CHRW) $63.04 -1.99%
Nxp Semiconductors Nv (NXPI) $92.88 -1.96%
Mylan Inc. (MYL) $70.06 -1.90%
Applied Materials Inc. (AMAT) $18.57 -1.69% |
| | Save Money on your Energy Bills | | ADVFN have partnered with the UK’s largest independent energy supplier First Utility to bring you lower energy bills: the average First Utility customer saves £229 per year on their energy. Click here to see how much you could save |
| | Newspaper Round Up | | Thursday newspaper round-up: Capital requirements, UK, Barclays Senior officials in Brussels have said that European banks could have their capital requirements slashed, only six years after a financial crisis during which lenders collapsed or needed multibillion-pound state rescues because of their lack of an adequate loss buffer. Lord Hill of Oareford, the European commissioner for financial stability, said that the commission would review the amount of capital held by lenders as part of a plan to encourage growth that some say has been stymied by the push to make banks safer. - The Times A Brussels legal manoeuvre has dragged the UK into the Eurozone's efforts to rescue Greece and complicated David Cameron's attempt to renegotiate UK membership terms. Brussels has proposed using an EU-wide rescue fund to furnish Greece with the €7bn it needs to cover debt repayments on Monday. - Financial Times
Sir Mike Rake is to step down as deputy chairman of Barclays this year to become chairman of Worldpay, the payments processing company, having last week orchestrated the sacking of the bank's chief executive. His departure comes after Barclays said that he was the main instigatopr behind the ousting of Antony Jenkins and the appointment of chairman John McFarlane as interim chief. - Financial Times
Greek prime minister Alexis Tsipras was ready to stand down from office on Wednesday night, as a Leftist rebellion erupted within his Syriza party over the punishing austerity measures the country needs to stay in the Eurozone. Greece's lawmakers gathered for a midnight vote on reforms that would raise VAT, cut pensions spending and reform the country's statistics body. The measures were passed with the support of Greece's main opposition parties, with 229 voting "yes" and 64 voting "no". - The Daily Telegraph
A Singaporean investor is to buy a 20% stake in house builder Galliard in a deal that highlights continued Asian interest in London's booming property market. Oxley Holdings is due to invest £50m into Galliard Group, one of the capital's most prolific residential property developers. The deal, expected to be announced on the Singaporean stock market overnight, values Galliard at £250m. - The Daily Telegraph | | |
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