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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: Stocks inch lower ahead of key Greek summit UK stocks were trading slightly lower on Tuesday morning as investors awaited news from a meeting of Eurozone officials to discuss Greece.
The FTSE 100 was down 0.17% at 6,524.60 early on with oil and gas stocks out of favour following the recent plunge in crude prices.
Stocks worldwide had slumped on Monday after the Greek public voted a resounding 'no' to creditors' bailout proposals, pushing the country further down the road to a potential Eurozone exit.
However, downside was limited following the surprise resignation of confrontational Greek Finance Minister Yanis Varoufakis, with analysts hopeful that future negotiations with creditors will run more smoothly.
Eurogroup finance ministers are set to meet at 13:00 CET to prepare for a Eurozone leaders summit at 18:00 CET.
"In a repeat of so many days over the past five months, a EU summit this evening preceded by a Eurogroup get together this afternoon is set to dominant the market discourse and bore investors to tears," said Spreadex analyst Connor Campbell.
French President Francois Hollande and German Chancellor have both urged Greek Prime Minister Alexis Tsipras to come up with a new plan to restart funding discussions. Hollande said Tsipras must "offer serious, credible proposals".
Oil stocks fall, ARM and M&S rise
Oil producers and energy services stocks such as BP, Shell, Wood Group, Amec Foster Wheeler and Nostrum Oil & Gas were trading lower after one of the steepest sell-offs in crude this year. West Texas Intermediate fell almost 8% on Monday, while Brent dropped over 6%.
Chipmaker ARM Holdings was a high riser after Morgan Stanley added the stock to its "Best Ideas" list in Europe and upgraded the stock to an 'overweight' rating. "Past the iPhone 6 upgrade cycle, we like the long duration of the revenue and earnings growth, in a context of slow global growth," it said.
Marks & Spencer gained after first-quarter sales were better than City analysts had feared, with clothing like-for-like sales down just 0.4% compared with the -1% forecast.
Construction and outsourcing firm Interserve edged lower despite saying its results were on track after it reported that UK construction conditions were still "challenging".
Technology group Smiths Group fell after appointing Andrew Reynolds Smith, the head of GKN's automotive division, as its new chief executive. GKN also fell.
Weir Group slumped after announcing the acquisition of US-based Delta Industrial Valves for an enterprise value of up to $47m.
Engine maker Rolls-Royce was extending losses after a profit warning on Monday, as Espirito Santo and JPMorgan both downgraded their recommendations on the stock.
Lloyds gained after Canacccord Genuity raised its rating on the stock from 'hold' to 'buy', highlighting that its capital ratio is "currently one of the strongest in the UK large bank listed space". |
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| | Market Movers
techMARK 3,106.45 +0.21%
FTSE 100 6,524.60 -0.17%
FTSE 250 17,442.11 -0.01%
FTSE 100 - Risers
ARM Holdings (ARM) 1,067.00p +2.99%
International Consolidated Airlines Group SA (CDI) (IAG) 495.30p +2.29%
easyJet (EZJ) 1,596.00p +1.27%
Land Securities Group (LAND) 1,243.00p +1.06%
Lloyds Banking Group (LLOY) 85.01p +1.02%
Old Mutual (OML) 205.50p +0.88%
AstraZeneca (AZN) 4,185.50p +0.88%
London Stock Exchange Group (LSE) 2,430.00p +0.83%
3i Group (III) 516.50p +0.78%
Capita (CPI) 1,265.00p +0.72%
FTSE 100 - Fallers
Rolls-Royce Holdings (RR.) 779.00p -2.93%
Weir Group (WEIR) 1,629.00p -2.22%
Smiths Group (SMIN) 1,122.00p -1.67%
BP (BP.) 423.25p -1.46%
Anglo American (AAL) 874.40p -1.00%
Glencore (GLEN) 245.15p -0.99%
Antofagasta (ANTO) 662.50p -0.97%
Associated British Foods (ABF) 2,884.00p -0.96%
Fresnillo (FRES) 680.50p -0.95%
Royal Dutch Shell 'A' (RDSA) 1,772.00p -0.89%
FTSE 250 - Risers
AO World (AO.) 134.40p +3.38%
Big Yellow Group (BYG) 635.00p +1.93%
Barr (A.G.) (BAG) 615.00p +1.82%
Scottish Inv Trust (SCIN) 639.00p +1.59%
Supergroup (SGP) 1,289.00p +1.50%
Virgin Money Holdings (UK) (VM.) 441.00p +1.45%
Ocado Group (OCDO) 454.80p +1.43%
Euromoney Institutional Investor (ERM) 1,216.00p +1.33%
Auto Trader Group (AUTO) 319.20p +1.27%
Provident Financial (PFG) 2,956.00p +1.27%
FTSE 250 - Fallers
Evraz (EVR) 112.00p -3.53%
Wood Group (John) (WG.) 611.00p -3.48%
Petrofac Ltd. (PFC) 867.50p -2.64%
Tullow Oil (TLW) 311.90p -2.47%
Nostrum Oil & Gas (NOG) 603.00p -2.43%
Aldermore Group (ALD) 308.50p -2.37%
Amec Foster Wheeler (AMFW) 791.00p -2.35%
Vesuvius (VSVS) 407.70p -2.21%
Lonmin (LMI) 104.20p -2.16% |
| | UK Event Calendar | | INTERIM DIVIDEND PAYMENT DATE
Marston's
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (US) (13:30)
Consumer Credit (US) (20:00)
Industrial Production (GER) (11:00)
GMS
Mattioli Woods
FINALS
Bacit Limited, Omega Diagnostics Group, Sepura, Solid State
IMSS
Connect Group, Marks & Spencer Group
SPECIAL DIVIDEND PAYMENT DATE
Spirit Pub Company
EGMS
3i Infrastructure, Establishment Inv Trust
AGMS
3i Infrastructure, Ambrian , LGO Energy, Marks & Spencer Group, Northern Investors Co, Northern Investors Co, Summit Germany Limited, Totally, Young & Co's Brewery 'A' Shares, Young & Co's Brewery (Non-Voting)
TRADING ANNOUNCEMENTS
Mcbride, Robert Walters
UK ECONOMIC ANNOUNCEMENTS
Industrial Production (09:30)
Manufacturing Production (09:30)
FINAL DIVIDEND PAYMENT DATE
Management Consulting Group |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks nudge up as investors keep a close eye on Greece European stocks nudged higher in early trade on Tuesday, bouncing back from heavy losses in the previous session, as investors kept a watchful eye on Greece.
By 0850 BST, the benchmark Stoxx Europe 600 index and France's CAC 40 were 0.1% higher, while Germany's DAX was up 0.2%.
In the periphery, Italy's FTSE Mib was 0.8% firmer, while Spain's IBEX 35 was up 0.2%.
The euro, meanwhile, was 0.5% weaker against the greenback at $1.1000. Societe Generale analyst Kit Juckes expects EUR/USD to re-test the 1.0950 level.
Later in the day, Eurozone leaders will gather in Brussels for an emergency meeting, during which Greek Prime Minister Alexis Tsipras is expected to unveil new proposals to his creditors.
The European Central Bank has kept the ceiling on its Emergency Liquidity Assistance for Greek banks unchanged, but raised the haircuts for debt need to post as collateral when applying for ELA.
"Traders are eagerly awaiting today's Eurogroup meeting in Brussels with EU finance ministers meeting this afternoon followed by EU leaders early evening," said Markus Huber, senior analyst at Peregrine & Black.
"Whilst nobody expects a deal to be clinched between Greece and its creditors today, Greek Prime Minister Tsipras will have to table some sort of offer which would constitute a 'real' basis to resume negotiations for a third bailout package."
Huber added: "Only if this is the case will it enable the ECB to provide Greek banks with much needed additional ELA and prevent them from running out of cash within the next few day."
He expects intraday trading to be dominated by comments from central bankers and politicians close to the Eurogroup meeting.
"In light of the ongoing elevated uncertainty where Greece and the Eurozone is concerned, markets have been holding up reasonably well, suggesting that the fallout of a possible Greek exit will be limited and manageable," said Huber.
In corporate news, Technip slid after issuing a profit warning and saying it plans to cut around 16% of its global workforce.
Axel Springer surged on media reports that it's in merger talks with ProSiebenSat.1.
In London, Marks & Spencer was on the front foot after its first-quarter trading update came in a little better than expected.
Online fashion retailer ASOS was also in the black after posting a 20% rise in retail sales in the four month to end of June.
In economic news, data released earlier by the Federal Statistical Office showed that industrial production in Germany stalled in May on the back of falls in energy and construction output.
On a price-, seasonally- and working day-adjusted basis, production in Europe's largest economy was unchanged from the previous month, versus a consensus forecast for growth of 0.1%.
Meanwhile, April's initially-estimated 0.9% growth was revised down to +0.6%.
The year-on-year growth rate picked up to 2.1% in May from 1.1% in April, but missed the 2.6% increase predicted by analysts. |
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| | US Market Report | | US close: Stocks slip after Greek vote, oil sector hit by crude plunge US stocks finished lower on Monday after Greek voters rejected creditors' bailout proposals, pushing the country further down the road towards a potential exit from the Eurozone.
A near-8% plunge in the price of oil also weighed heavily on energy shares on Wall Street.
However, losses were only modest with a negative outcome from the referendum largely priced into US markets ahead of the three-day weekend.
By the close, the Dow Jones Industrial Average was down 46 points at 17,684 (-0.26%), the Nasdaq fell 17 to 4,992 (-0.34%) and the S&P 500 declined eight to 2,069 (-0.37%).
The result of Sunday's Greek referendum showed that 61.3% voted 'no' to the latest bailout terms, prompting Eurozone officials to hold an emergency summit for Tuesday evening.
Nevertheless, downside on markets was limited following the surprise resignation of confrontational Finance Minister Yanis Varoufakis. Varoufakis, who had been a staunch opponent of the spending cuts and tax increases proposed by Greece's lenders, decided to step down in an effort to make negotiations run more smoothly.
In economic data, the US services sector expanded at a slightly slower-than-expected rate in June, according to figures from the Institute for Supply Management. The ISM non-manufacturing purchasing managers' index nudged up to 56.0 in June from 55.7 in May, a touch lower than analysts' estimates for a reading of 56.4.
Energy stocks drop
Stocks in the oil sector were sold off sharply as crude prices dropped on the back of demand fears in Europe and the prospect of higher supply as a result of a potential Iranian nuclear deal.
West Texax crude futures for August delivery sank 7.7% to a three-month low of $52.53 a barrel on the New York Mercantile Exchange, dragging shares of Exxon Mobil, Chevron, ConocoPhillips and Occidental Petroleum into the red.
Financial stocks were also out of favour including New York, with Bank of America, Goldman Sachs and JPMorgan Chase & Co.
American Apparel slid sharply after the clothing retailer revealed plans to cut costs by closing stores and streamlining its workforce. |
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| | Newspaper Round Up | | Tuesday newspaper round-up: Greece, UK banks, Sainsbury's "The European Central Bank has tightened liquidity conditions for the Greek banking system following the landslide victory for the Leftist government in Sunday's referendum," writes The Telegraph.
Greece has appointed Oxford-educated economist Euclid Tsakalotos as its new Finance Minister, reports The Wall Street Journal. Tsakalotos has been in charge of the country's team negotiating with lenders since April.
UK high street banks are launching digital payment services through the Zapp application in an effort to fend off growing competition from technology group Apple, the Financial Times writes.
Eagle Eye, the virtual voucher business backed by former Tesco boss Sir Terry Leahy, is expected to unveil a "game-changing" contract with Sainsbury's, according to The Guardian. The contract will reportedly change the way the grocer runs promotions and handles online vouchers.
George Osborne is expected to shake up Sunday trading laws in this week's budget, allowing local authorities and mayors to decide how long large stores can stay open, ending the six-hour limit, reports The Guardian.
"The BBC has agreed to a funding settlement, allowing the licence fee to rise by inflation in exchange for the corporation covering the £650m annual cost of free television licences for the elderly," the Financial Times writes. | | |
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