| | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: FTSE plunges as China slowdown concerns weigh The FTSE 100 index plunged 2.8% at Monday's open after China's market suffered the biggest fall since 2007 on concerns of the country's slowing growth.
The FTSE 100 came close to breaching the 6,000 mark in early trade but by just after 0900 BST was down just over 135 points at 6,052.29, a fall of 2.19%. The FTSE 250 was down 2.45% to 16,462.44.
Earlier, the Shanghai Composite closed down 8.5%, dragging down markets across the region. The Hong Kong Hang Seng index declined 4.9% while Japan's Nikkei 225 dropped 4.6%.
China's decision to devalue its currency two weeks ago has caused volatility in the global market, adding to fears that the world's second largest economy is set for a material tumble.
"The genesis of this recent sell-off has been the threat of the Fed raising rates next month, but China's confrontational move two weeks ago and the subsequent knock-on through EM have accelerated us towards something more serious," Deutsche Bank fixed income strategist Jim Reid said in a research note e-mailed to clients.
In contrast to the slowdown in China, the UK's economy is likely to grow more strongly this year than previously forecast and an interest rate hike will occur earlier than expected, according to forecasts from the Confederation of British Industry (CBI).
CBI predicted the economy will expand 2.6% in 2015, and 2.8% in 2016, up from forecasts 2.4% and 2.5% made in June.
Meanwhile, developments in Greece continue to be closely monitored after prime minister Alexis Tsipras stepped down last week, paving the way for snap elections that bring uncertainty back to the fore, just after Greece had secured its third bailout worth €86bn.
Elsewhere in the Eurozone, the European Central Bank will at 1445 BST publish the details of its quantitative easing programme.
In company news, Britain's government has cut its holding in Lloyds Banking Group to below 13%. The lender's shares declined 1.17% at open as it edged closer to full privatisation after being bailed out in the 2008/09 financial crisis.
No FTSE stocks were in positive territory, with the best performing stock on the FTSE 100 down 1.5%.
Some of the biggest slumps were at Randgold Resources, Rio Tinto, BHP Billiton and Anglo American as gold, silver and copper prices edged lower. Meanwhile, Rio said it expects to deliver 240 million tonnes of iron ore to China this year, up from 200 million tonnes in 2014.
BT Group was in the red as the Financial Times reported that the group's Americas unit president called on the US to require that telecoms rivals allow access to their networks at regulated prices.
Avocet Mining dipped after slashing its production forecast for 2015 as amid a strike at its mine in Burkina Faso.
Online gambling operator GVC Holdings fell after saying it has made "significant progress" in bid talks with larger rival Bwin . party as rumours emerged it had increased its proposed offer for the company last week. Bwin's shares were also lower.
Bunzl slipped despite posting an 11% rise in first half pre-tax profit as revenue grew and the distribution and outsourcing company made four acquisitions. |
| | SG Market Master 2015 | | Build the ultimate virtual portfolio from our range of Short & Leverage ETPs without risking a penny for real and you could win prizes that money can’t buy: Rugby World Cup 2015 signed shirts, balls, and match day tickets with hotel accommodation. Starting September 7th, contestants will have four weeks to invest £100,000 of virtual funds to create the highest overall return using Short & Leverage ETPs. Click here to register Losses can exceed a direct investment in the underlying asset. The value of the product can go up as well as down. Performance is compounded daily. |
| Market Movers
techMARK 2,968.63 -1.85%
FTSE 100 6,063.05 -2.01%
FTSE 250 16,471.49 -2.40%
FTSE 100 - Risers
FTSE 100 - Fallers
Anglo American (AAL) 695.70p -5.06%
Glencore (GLEN) 150.70p -4.95%
BHP Billiton (BLT) 1,015.00p -4.74%
Rio Tinto (RIO) 2,228.00p -3.76%
St James's Place (STJ) 882.50p -3.76%
Fresnillo (FRES) 656.00p -3.74%
Bunzl (BNZL) 1,720.00p -3.64%
Mondi (MNDI) 1,393.00p -3.60%
SABMiller (SAB) 2,914.50p -3.59%
Standard Chartered (STAN) 753.40p -3.42%
FTSE 250 - Risers
Riverstone Energy Limited (RSE) 930.00p +2.48%
AO World (AO.) 125.40p +2.45%
Just Retirement Group (JRG) 186.40p +0.76%
PayPoint (PAY) 1,005.00p +0.70%
Vedanta Resources (VED) 462.90p +0.63%
Brown (N.) Group (BWNG) 299.90p +0.54%
HICL Infrastructure Company Ltd (HICL) 154.80p +0.32%
BH Macro Ltd. GBP Shares (BHMG) 2,088.00p +0.24%
International Public Partnerships Ltd. (INPP) 137.50p +0.22%
Millennium & Copthorne Hotels (MLC) 560.50p +0.09%
FTSE 250 - Fallers
Worldwide Healthcare Trust (WWH) 1,715.00p -6.64%
Fisher (James) & Sons (FSJ) 1,010.00p -6.05%
Scottish Mortgage Inv Trust (SMT) 230.20p -5.96%
Lonmin (LMI) 36.35p -5.56%
Polymetal International (POLY) 458.80p -5.46%
Bankers Inv Trust (BNKR) 564.50p -5.21%
Fidelity China Special Situations (FCSS) 110.60p -5.15%
Witan Inv Trust (WTAN) 699.00p -4.96%
Lookers (LOOK) 155.00p -4.91%
Henderson Group (HGG) 245.40p -4.88%
FTSE TechMARK - Risers
UCW Limited (UCW) A$0.01 +9.09%
IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 201.41 +0.05%
FTSE TechMARK - Fallers
BATM Advanced Communications Ltd. (BVC) 16.75p -8.84%
Sarossa (SARS) 1.77p -3.54%
NCC Group (NCC) 238.00p -2.46%
XP Power Ltd. (DI) (XPP) 1,600.00p -2.29%
Innovation Group (TIG) 34.00p -2.16%
Oxford Instruments (OXIG) 801.00p -1.84%
E2V Technologies (E2V) 234.50p -1.78%
Promethean World (PRW) 38.75p -1.59%
Triad Group (TRD) 35.00p -1.41% |
| | UK Event Calendar | | INTERIMS
Amlin, BATM Advanced Communications Ltd., FBD Holdings, Headlam Group, Industrial Mlulti Propety Trust , Kingspan Group
AGMS
CEB Resources, Collagen Solutions, Northern Bear
FINAL DIVIDEND PAYMENT DATE
Mountview Estates |
| | PROVEN Trading Strategy - Made 7478 pips in 2014 and 5176 by April 2015. | | Earn a tax free income trading, from just 20 minutes a day. Our simple to follow, rules based trading strategy will tell you exactly when to buy and sell with confidence.
Register for a FREE brochure and trading guide, Click Here. |
| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Equity markets take a beating after Asian selloff European equity markets took a battering in early trade, following on from a heavy selloff in Asia amid disappointment that the Chinese central bank did not intervene over the weekend despite an 11% slump in the country's stock market last week.
At 0900 BST, the benchmark Stoxx Europe 600 index was down 2.9% and France's CAC 40 was 2.2% lower. Meanwhile, Germany's DAX was 2.1% weaker, entering bear territory as it fell 21% from its peak in April.
In Asia, the Shanghai Composite closed a whopping 8.5% lower, while the Nikkei 225 tumbled 4.6% and the Hang Seng slumped just under 5%.
Over 600 stocks in China were suspended, after they fell the by the maximum 10% allowed in one session.
"There were expectations of some sort of action from the Chinese central bank overnight and markets are likely to remain on edge for some action, either in the form of a rate cut or a cut in the reserve ratio for banks," said Simon Smith, chief economist at FxPro.
"Otherwise, it's going to be a case of watching equities and the extent to which the sell-off follows through from Europe into the US, together with the weakness in commodity prices. The prospects of an increase in rates from the Fed in September look very slim indeed at this point in time."
Chinese authorities said over the weekend that they will allow pension funds to buy shares for the first time, but investors who had been expecting the People's Bank of China to cut interest rates or reduce the amount of capital banks are required to set aside were left disappointed.
Losses were across the board in Europe, although basic resources - demand for which is heavily dependent on China - suffered the brunt of the selling, with the Stoxx 600 index for the sector down 5.6%. Financial services followed close behind, with the corresponding index for that sector down 3.1%, while the index for oil & gas was also 3.1% lower.
Worries about a slowdown in the world's second-largest economy dented commodity prices, with West Texas Intermediate down 3.3% to $39.07 a barrel and Brent crude 2.5% lower at $44.39.
In terms of individual stocks, miners Anglo American fell 5.9%, BHP Billiton dropped 5.4% and Rio Tinto slid 4.6%.
Shares in London-listed distribution and outsourcing company Bunzl fell sharply. Although it posted an 11% rise in first-half pre-tax profit as revenue grew and announced four acquisitions, analysts noted concerns over the group's emerging markets businesses.
Shares in Lloyds Banking Group fell after it said the UK government has reduced its stake in the bank to just under 13%.
Spain's Abengoa was the only stock on the Stoxx 600 in the black, after the renewable energy company said it won a $93m contract to build a new port terminal in Uruguay. |
| | Open a new account & trade online for just £5.95 for your first 3 months | | Better platform, Better tools, Better welcome, Better trading - TD Direct Investing. Find out more
You may not get back all the money you invest  |
| | US Market Report | | US close: Stocks end lower after disappointing manufacturing data Worse-than-expected manufacturing data sent US stocks into negative territory at Friday's close.
The Dow finished down 3.12% while the Nasdaq dropped 3.52% and the S&P 500 fell 3.18%.
Weak Chinese manufacturing data fuelled concerns of a slowdown in the world's second largest economy. The flash Caixin/Markit manufacturing PMI reading of 47.1 was well down on the 48.2 expected and the 47.8 final reading in July. A reading below 50 signals a contraction in the sector while a level above that indicates an expansion.
"Uncertainty concerning the Chinese economy continues to rattle stocks," said Markus Huber, senior analyst at Peregrine & Black. "At the moment the Chinese economy is in the middle of a moderate slow-down, however Chinese GDP is still estimated to be growing around 6.6% and therefore the scale of the slowdown doesn't necessarily justify the negative impact it is having on stock markets around the world ."
Equally the US saw disappointing manufacturing data. The Markit flash PMI declined from 53.8 in July to 52.9 in August, compared with expectations for an unchanged reading.
"August's survey highlights a lack of growth momentum and continued weak price pressures across the U.S. manufacturing sector, which adds some fuel to the dovish argument as policymakers weigh up tightening policy in September," said Markit's senior economist Tim Moore.
The dollar was sitting lower against the pound, the euro and the yen by 0.03%, 1.28%, and 1.10% respectively.
Oil prices declined, with the West Texas Intermediate losing 0.44% to $40.27 a barrel, and Brent down 0.06% to $45.43 a barrel.
In company news, software provider Salesforce.com jumped after lifting its full-year outlook late on Thursday.
The group also posted earnings that topped analysts' expectations.
Clothing retailer Gap slid despite posting in line with expectations, while computer maker Hewlett Packard reversed earlier falls after revealing a 15th decline in revenue in the last 16 quarters. |
| | Successful Property Investng | | Find out how to build your own specialist buy-to-let property portfolio that gives you an income for life. Sign up to our newsletter. Click Here |
| | Newspaper Round Up | | Monday newspaper round up: business rates, Clydesale Bank, CBI The Government's "business tsar" has backed an emphatic call from the nation's retailers for a fundamental reform of business rates to boost Britain's productivity. Sir Charlie Mayfield, chairman of the John Lewis Partnership and president of the British Retail Consortium (BRC), has thrown his weight behind a chorus of complaints from the bosses of Britain's high street traders that the hefty business rates tax is hampering investment in the sector. - The Daily Telegraph
The boss of Clydesdale Bank has denied suggestions that its £2.5 billion stock market listing could be in trouble as he confirmed that the Australian-owned lender had already held talks with more than 20 key investors. David Duffy, the chief executive of Clydesdale and Yorkshire banks, said that he was confident the lender was safely on course to complete its IPO by January at the latest, amid speculation that some fund managers had balked at the potential price of shares in the bank. - The Times
In its latest health check of the economy, and in advance of the chancellor's spending review in November, the Confederation of British Industry upgraded its estimate for growth this year from 2.4 per cent to 2.6 per cent, and from 2.5 per cent to 2.8 per cent for next year. If these figures materialise, it will mean that growth will average 0.7 per cent a quarter until the end of next year and will beat the Office for Budget Responsibility's forecast for growth of 2.4 per cent and 2.3 per cent respectively for this year and next. - The Times
Average rents in the UK reached £937 per month in July as the pace of increases took a significant step up amid a shortage in the supply of housing. Rents were up 4.6% on a year before, compared with a 3.8% rise in June, according to research by Countrywide, the UK's largest property services company. Central London saw by far the biggest increase in the cost of newly rented properties at 6.8%, but there were also strong rises in Scotland (4.5%) and the east of England (4.3%). - The Guardian |
| | Central London Property Investment Paying 15% Per Annum | | Limited availability, serious investors only click here | | |
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