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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 rise ahead of budget, but China and Greece a concern London stocks bounced slightly on Wednesday after settling at their lowest in nearly six months, though gains were modest as investors focused on a sell-off in China overnight, the upcoming UK budget and news flow on Greece.
The FTSE 100 was up 0.38% at 6,456.90 early on, after settling at 6,432.21 on Tuesday, its lowest since 16 January.
Chinese stocks suffered another bout of panic selling on Wednesday with the Hang Seng down 7.5% and the Shanghai Composite dropping 5.9% despite measures by the government to stabilise markets.
A fresh wave of China-listed companies announced trading halts before the open, taking the total to around 1,300 or 45% of the country's listed stocks.
"Yet another calamitous fall in the Chinese stock market is continuing to lay waste to the commodity sector, with gold, silver, copper and Brent crude all in line for another day of hefty losses," said Spreadex analyst Connor Campbell. "The drag this causes on the FTSE's commodity stocks is obvious, so the UK index will be up against it if it wants to climb to some gains this Wednesday," he said.
Chancellor George Osborne is expected to unveil £12bn in welfare cuts and changes to taxation in an "emergency" budget statement to the House of Commons, scheduled to start at 1100 BST.
Measures to improve housebuilding could see construction stocks move, while investors of listed banks will be watching out for any potential movement on the controversial bank levy imposed in the wake of the global financial crisis. Retail stocks could also be boosted by a move to allow shops in England and Wales to be open for longer on Sundays by handing the responsibility to local towns and cities.
Meanwhile, Eurozone leaders have warned Greece that a new bailout deal should be struck within the next five days or the country would face a banking collapse as well as a potential exit from the Eurozone.
European Commission President Jean-Claude Juncker said that although he was "strongly" against Grexit, there was a "Grexit scenario prepared in detail".
Barclays jumps on CEO exit
Barclays was a high riser after the departure of chief executive Antony Jenkins, with the bank saying that "a change in leadership is required" and the search for his successor was underway. Chairman John McFarlane will become executive chairman pending the appointment of a new CEO.
Sector peers Standard Chartered and HSBC, however, were trading firmly lower following the sell-off on Chinese markets overnight.
Mining stocks were also in the red, including Rio Tinto, Antofagasta and BHP Billiton.
Wholesaler Booker inched lower after sales were underwhelming in the first quarter, with just 0.2% revenue growth for the first 12 weeks of the financial year, compared to 1% in the preceding quarter. |
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| | Market Movers
techMARK 3,073.33 +0.23%
FTSE 100 6,456.90 +0.38%
FTSE 250 17,216.03 +0.02%
FTSE 100 - Risers
Barclays (BARC) 260.20p +3.19%
Tesco (TSCO) 204.40p +1.87%
SSE (SSE) 1,569.00p +1.82%
BG Group (BG.) 1,049.00p +1.40%
Unilever (ULVR) 2,751.00p +1.36%
Royal Dutch Shell 'A' (RDSA) 1,776.50p +1.34%
Glencore (GLEN) 233.65p +1.32%
Royal Dutch Shell 'B' (RDSB) 1,784.00p +1.28%
CRH (CRH) 1,752.00p +1.27%
Sainsbury (J) (SBRY) 260.40p +1.17%
FTSE 100 - Fallers
Standard Chartered (STAN) 980.10p -1.86%
Aberdeen Asset Management (ADN) 383.20p -1.74%
Prudential (PRU) 1,488.00p -1.62%
HSBC Holdings (HSBA) 550.20p -1.50%
GKN (GKN) 313.30p -1.20%
Rio Tinto (RIO) 2,462.50p -1.20%
Antofagasta (ANTO) 636.50p -0.93%
Pearson (PSON) 1,201.00p -0.91%
Johnson Matthey (JMAT) 2,915.00p -0.65%
Mondi (MNDI) 1,346.00p -0.59%
FTSE 250 - Risers
Daejan Holdings (DJAN) 6,035.00p +4.23%
Just Retirement Group (JRG) 177.30p +3.02%
Cairn Energy (CNE) 166.00p +2.47%
Dairy Crest Group (DCG) 530.50p +2.41%
Clarkson (CKN) 2,832.00p +2.35%
Tate & Lyle (TATE) 515.00p +2.28%
Dignity (DTY) 2,188.00p +2.15%
Enterprise Inns (ETI) 123.60p +2.06%
PayPoint (PAY) 1,000.00p +2.04%
Telecom Plus (TEP) 975.00p +1.93%
FTSE 250 - Fallers
Fidelity China Special Situations (FCSS) 123.70p -9.24%
UBM (UBM) 500.50p -3.38%
Nostrum Oil & Gas (NOG) 585.00p -2.90%
Bwin.party Digital Entertainment (BPTY) 97.70p -2.88%
Jupiter Fund Management (JUP) 413.50p -2.32%
Foxtons Group (FOXT) 216.70p -1.90%
Evraz (EVR) 111.30p -1.85%
Michael Page International (MPI) 520.00p -1.79%
Morgan Advanced Materials (MGAM) 311.80p -1.76% |
| | UK Event Calendar | | Wednesday 08 July
INTERIM DIVIDEND PAYMENT DATE
Cardiff Property
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
FOMC Interest Rate Minutes (US) (19:00)
MBA Mortgage Applications (US) (12:00)
FINALS
Micro Focus International
SPECIAL EX-DIVIDEND PAYMENT DATE
3i Infrastructure
AGMS
Active Energy Group, Biotech Growth Trust (The), Booker Group, Capital Gearing Trust, Great Portland Estates, Northern 3 VCT, Palace Capital , Sainsbury (J), Shires Income, UK Mail Group
TRADING ANNOUNCEMENTS
Booker Group, Galliford Try, Taylor Wimpey
UK ECONOMIC ANNOUNCEMENTS
BRC Shop Price Index (00:01)
FINAL DIVIDEND PAYMENT DATE
Air China Ltd., London Security, Restaurant Group, Tarsus Group |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks flitting but flat as Greece firmly in focus European stocks flitted between small gains and losses, with investors reluctant to make any big bets either way after Eurozone leaders gave Greece a final deadline of Sunday to agree on new economic proposals for a bailout deal. By 0900 BST, the benchmark Stoxx Europe 600 index was down 0.2%, France's CAC 40 was up 0.1% and Germany's DAX was 0.1% lower.
In the periphery, Spain's IBEX 35 was down 0.2% and Italy's FTSE Mib was 0.4% firmer. The Athens stock exchange will remain closed until Thursday, along with the country's banks.
Bond markets were fairly calm, with yields on German and sovereign bonds all fairly steady.
"It looks like Greece has finally been given an ultimatum by its creditors in a last-ditch attempt to save the country from leaving the Eurozone," said Angus Campbell, senior analyst at FxPro.
"A deal must be presented by Thursday with the deadline of Sunday to thrash out the details and agree on a new bailout. But given the Greek government's approach to negotiations since it came to power in January, anything can happen in that time.
"The ECB has made it clear that their support for Greek banks will end next week and the Eurogroup has 'a Grexit scenario prepared in detail' if a deal is not struck. The odds of a new deal being agreed are heavily stacked against the optimists, if indeed there are any optimists left. We can expect volatility to remain high going into the weekend and certainly next week if Grexit ensues."
If Greece fails to secure fresh funds, it will be unable to make its €3.5bn repayment to the European Central Bank on 20 July.
In corporate news, Barclays rose 3% after the company announced the departure of its chief executive Antony Jenkins, saying that "a change in leadership is required".
Tate & Lyle was also on the front foot following a rating upgrade by Credit Suisse.
On the downside, shares in French catering group Sodexo slipped after it cuts its target for full-year 2015 revenue growth. |
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| | US Market Report | | US close: Markets stage late rebound on Greek hopes US stocks erased earlier losses to finish higher on Tuesday after a late rally on hopes that Greece will be able to secure new funds to avert a banking collapse and euro exit. The Dow Jones Industrial Average gained 0.53% to 17,777, the Nasdaq rose 0.10% to 4,997, while the S&P 500 advanced 0.59% to 2,081. After a weak start, Wall Street equities jumped following reports that Greek Prime Minister Alexis Tsipras had proposed an interim financing until the end of July. The funds would be in exchange for “some of the overhauls demanded by the country's international creditors from the Greek parliament”, a senior government official was cited as saying. Stocks across Europe had finished lower on Tuesday after Greek officials turned up at an emergency meeting with Eurozone finance ministers in Brussels without a fresh proposal. Many had expected Greek officials to come to the meeting with a new cash-for-reforms plan following Sunday's referendum which saw the Hellenic Republic vote a resounding 'no' to the terms of a previous bailout proposal by creditors. On the economic front, data released earlier showed the US trade deficit increased slightly in May, reaching $41.87bn after a downwardly revised print of -$40.7bn for the prior month, on the back of lower aircraft sales. Analysts had expected a deficit of $42.70bn. Meanwhile, US job openings jumped from 5.33m in April to a record 5.36m in May. AMD plummets Shares of Advanced Micro Devices plunged over 15% after the company lowered its revenue forecast for the second quarter late on Monday. Meanwhile, shares in plastic manufacturer A. Schulman Inc fell sharply after saying late on Monday that it swung to a loss in the third quarter. On the upside, though, Depomed surged 39% as Horizon Phama said it was taking its bid for the company hostile, after revealing that the offer it made to acquire all of Depomed’s outstanding shares in May was rejected. |
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| | Newspaper Round Up | | Wednesday newspaper round-up: Greece, Bwin.party, Chinese stocks European Commission president Jean-Claude Juncker has said "we have a Grexit scenario prepared in detail" as leaders urged Athens to present a new proposal in the next few days, according to The Guardian.
GVC has teamed up with Amaya to offer £900m for Bwin.party in an attempt to see off rival bidder 888 Holdings, The Telegraph reports.
The Financial Times says that another 173 Chinese companies halted trading in their shares after markets closed on Tuesday, bringing the total to 940, amid the country's steepest equity decline in over 20 years.
The boss of British Gas owner Centrica has said that the CMA's claim that the Big Six energy suppliers are overcharging was "not credible", writes The Telegraph.
Shop prices fell for the 26th straight month in June, dropping 1.3% due to heavy discounting by food and furniture retailers, writes The Guardian.
The global asset management industry expanded to a record size last year with assets under management rising to $74trn, the Financial Times says. | | |
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