| | | | | | | | Your complimentary trading guide
Make a consistent income with this simple, once a day trading strategy which made 7478 pips in 2014. For your free guide click here. | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London close: Equities end on the front foot after Chinese trade data UK equities rallied after a report showing declines in Chinese exports and imports spurred hopes of further stimulus and cast doubt on a US September rate hike.
China's exports dropped 5.5% in August from a year earlier in dollar terms after a 8.3% drop in July, according to the General Administration of Customs, more than the 6.6% decline that was expected by analysts.
Customs said China exports will continue to face "relatively big pressure" in the fourth quarter amid a slowing economy.
Imports last month decreased 13.8% in dollar terms compared to a year ago, more than the 7.9% dip that was forecast, after a 8.1% fall in July.
China's trade surplus widened in August to $60.2bn from $43.03bn in July, beating projections of $48bn.
Capital Economics said trade was "healthier than headlines suggest", adding the figures would likely have been stronger in August had it not been for temporary disruptions to industrial activity following the Tianjin warehouse blast and factory closures ahead of last week's WWII Victory Day parade.
"Looking ahead, we think trade growth ought to recover over the coming quarters," said China economist Julian Evans-Pritchard. "The drag from the Tianjin blast and Victory parade disruptions ought to have mostly faded this month. Meanwhile, stronger growth in China's main trading partners ought to shore up exports while a pick-up in investment spending will boost imports."
However, Oanda's senior market analyst Craig Erlam warned that "if the consumer cannot fill the void left my falling export demand, then the government has a big job on its hands to stop the economy slowing at a much faster pace".
The market volatility caused by China slowdown concerns has prompted some analysts to pull back their expectations for an interest rate hike by the Federal Reserve. The Fed meets on 16-17 September before making its latest policy announcement.
"A rate hike looks unlikely at this stage given the recent China-driven market volatility and the mixed data seen in recent months, but it is certainly not off the table so any data releases will be monitored closely," Erlam said.
For their part, analysts at Citi told clients the Fed might be on the cusp of committing a policy mistake if they raise rates come September.
The US market resumed trading on Tuesday after the Labor Day break a day earlier. The National Federation of Independent Business said its small-business optimism index rose 0.5 points to 95.9. Of the 10 components, five posted gains, three fell and two remained unchanged.
Still to come, Minneapolis Fed President Narayana Kocherlakota, a non-voting member of the FOMC, speaks on the outlook for US monetary policy at Northwestern University in Evanston, Illinois, at 2215 BST.
European data
Eurozone economic growth for the second quarter was revised higher following an improvement in exports. Eurostat said gross domestic product increased 0.4% in the second quarter from the first, compared to an earlier estimate of 0.3%. The first quarter was also revised higher to 0.5% from a previous forecast of 0.4%. GDP was 1.5% higher in the second quarter than in the same period a year ago, up from a previous estimate of 1.2%.
Germany's trade surplus narrowed to €22.8bn in July from €24.4bn a month earlier, slightly more than the €23.5bn expected by analysts, the Federal Statistics Office said. Exports rose 2.4% in July, compared to forecasts for a 1% gain and the previous month's 1.1% drop. Imports climbed 2.2% in July, smashing estimates for a 0.7% rise and better than June's 0.8% fall.
Closer to home, British retail spending stagnated in August due to poor weather and the later-than-usual date of a public holiday. The British Retail Consortium said retail spending in August was 0.1% higher than a year earlier, the smallest rise since April and down from 2.2% growth in July.
Meanwhile, ahead of Thursday's Bank of England policy announcement Citi analysts said they see no changes to interest rates.
"The MPC are still likely to signal that the first rate hike is on the horizon, consistent with Carney's warning at Jackson Hole that developments in China are unlikely to change the process of rate increases from limited and gradual to infinitesimal and inert," said analyst Michael Saunders. "However, we do not expect the MPC will seek to encourage markets to price in any urgency for the first hike."
Companies
Amlin surged after MS&AD Insurance Group Holdings said it was in talks to buy the group.
United Utilities jumped amid reports that it could attract takeover interest due to its current valuation. Bernstein upgraded the stock to 'outperform', saying it is "an attractive acquisition target for a pension or infrastructure fund".
Berkeley Group climbed after the homebuilder reiterated its earnings guidance as it continued to expand its operations in the current financial year.
Hikma Pharmaceuticals was higher as it agreed to acquire almost the entire share capital of Egypt-based EIMC United Pharmaceuticals from a consortium of shareholders for an undisclosed sum.
RSA Insurance rose as it signed contracts to sell its operations in Latin America to Suramericana SA.
Standard Chartered reversed Monday's fall amid the prospect of facing Iran-related fines, the reported axing of senior staff, and the impact of China's slowdown on their Asian business.
Going the other way, Whitbread slumped as the owner of Costa coffee shops reported a slowdown in sales in the second quarter. |
| | 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 3,091.27 +0.54%
FTSE 100 6,146.10 +1.18%
FTSE 250 17,000.28 +0.94%
FTSE 100 - Risers
Glencore (GLEN) 137.60p +4.40%
Anglo American (AAL) 703.90p +3.87%
Aberdeen Asset Management (ADN) 317.40p +3.02%
Standard Chartered (STAN) 721.20p +2.82%
Fresnillo (FRES) 619.00p +2.74%
GKN (GKN) 276.70p +2.67%
Rio Tinto (RIO) 2,309.50p +2.60%
Johnson Matthey (JMAT) 2,696.00p +2.43%
BG Group (BG.) 983.80p +2.43%
Hargreaves Lansdown (HL.) 1,115.00p +2.39%
FTSE 100 - Fallers
Whitbread (WTB) 4,636.00p -1.59%
Next (NXT) 7,545.00p -0.92%
Ashtead Group (AHT) 974.50p -0.66%
Sports Direct International (SPD) 775.50p -0.64%
Reckitt Benckiser Group (RB.) 5,716.00p -0.02%
FTSE 250 - Risers
Amlin (AML) 655.00p +32.99%
AO World (AO.) 150.80p +10.07%
Ocado Group (OCDO) 338.40p +5.19%
Ashmore Group (ASHM) 257.10p +5.02%
Aggreko (AGK) 1,087.00p +4.92%
Lancashire Holdings Limited (LRE) 685.00p +4.90%
Henderson Group (HGG) 254.80p +4.60%
Serco Group (SRP) 109.20p +4.30%
Workspace Group (WKP) 945.00p +3.85%
CLS Holdings (CLI) 1,910.00p +3.80%
FTSE 250 - Fallers
Lonmin (LMI) 24.00p -4.84%
Wetherspoon (J.D.) (JDW) 716.00p -3.89%
Petra Diamonds Ltd.(DI) (PDL) 114.70p -3.69%
Supergroup (SGP) 1,402.00p -3.44%
FirstGroup (FGP) 103.50p -1.99%
Domino's Pizza Group (DOM) 837.00p -1.88%
Genus (GNS) 1,350.00p -1.82%
Dunelm Group (DNLM) 893.50p -1.81%
Rank Group (RNK) 257.20p -1.79%
Foxtons Group (FOXT) 237.50p -1.74%
FTSE TechMARK - Risers
Skyepharma (SKP) 369.50p +7.10%
NCC Group (NCC) 258.00p +3.20%
Oxford Biomedica (OXB) 8.15p +2.00%
E2V Technologies (E2V) 243.50p +1.88%
Spirent Communications (SPT) 80.00p +1.59%
RM (RM.) 172.62p +1.54%
Dialight (DIA) 610.50p +1.41%
Sepura (SEPU) 175.50p +1.15%
Consort Medical (CSRT) 965.00p +0.73%
Torotrak (TRK) 6.34p +0.24%
FTSE TechMARK - Fallers
Oxford Instruments (OXIG) 650.50p -18.69%
Filtronic (FTC) 6.50p -8.77%
Triad Group (TRD) 34.00p -6.85%
Ricardo (RCDO) 881.50p -0.79%
Promethean World (PRW) 39.38p -0.63%
Innovation Group (TIG) 39.75p -0.62%
SDL (SDL) 371.00p -0.54%
KCOM Group (KCOM) 93.50p -0.27% |
| | When Can You 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! |
| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Benchmarks edge into the black on hopes for Chinese stimulus European equity markets pushed higher on Tuesday, buoyed by the prospect of a fresh stimulus injection by China's central bank.
The benchmark Stoxx Europe 600 index closed up 1.18%, while France's CAC 40 rose 1.07% and Germany's DAX advanced 1.64%.
The euro gained 0.25% and 0.46% against the dollar and the yen respectively, but rereated 0.40% against the pound, while Brent crude futures surged 3.5% to $49.38 a barrel.
Tuesday Eurozone data impresses
Growth in the Eurozone in the second quarter was stronger than originally estimated, according to figures released by Eurostat.
Gross domestic product expanded 0.4% from the first quarter, up from an initial estimate of 0.3% as a slowdown in household consumption and a drop in investment spending was offset by stronger exports.
On the year, GDP was 1.5% higher, up from a previous estimate of 1.2%.
"The conditions remain in place for a modest Eurozone cyclical upturn, and it some encouragement can be taken from the fact that overall Eurozone business and consumer confidence rose to a four-year high in August according to the European Commission," said Howard Archer, chief UK and European economist at IHS Global Insight.
Figures out of Germany were also encouraging, showing the trade balance hit its highest surplus on record in July. It grew to €22.8bn from a revised €22.1bn in June, according to data from the federal statistics office, to mark the highest level since records began in 1991 and better than forecasts.
Elsewhere, Hong Kong's Hang Seng and China's Shanghai Composite both posted strong gains despite the release of mixed data, which showed exports shrank for the second month, although not as much as feared. China's exports declined by 5.5% in August in dollar terms compared to the same month last year, better than consensus for a 6.6% fall and further decelerating following a decrease of 8.3% in July.
Imports from abroad were much weaker, with purchases decreasing at a significant 13.8% year-on-year rate in dollar terms, far exceeding the 7.9% consensus and the fall of 8.1% in July, casting some further doubt on domestic demand.
This left the trade balance surging to a $60.24bn surplus, larger than the $48bn estimated by analysts and the previous month's reading of $43.0bn.
"For all the statements and reports to the contrary, the Chinese government is going to continue to get its select band of market warriors to buoy the index and keep up the artifice of a healthy stock market," said Spreadex's financial analyst Connor Campbell.
Car makers lead the charge
In company news, shares of car makers were among the main risers, with Daimler AG gaining 2.67%, while BMW AG and Volkswagen AG rose 4.13% and 2.82% respectively.
French energy group Alstom SA climbed 1.40% after the European Union gave the green light to a proposed $17bn takeover of its power business by energy giant General Electric. |
| | China Meltdown: The UK Stocks to avoid | | In July, Chinese shares had their worst month in 6 years..
Yet right now many UK investors are blissfully unaware. Discover:How the Chinese markets could be ‘rigged’ and the 7 UK stocks to avoid Download Your Free Report Now |
| | US Market Report | | US open: Dow jumps 280 points as Wall Street pins hopes on new Chinese stimulus US stocks rallied early on Tuesday as investors returned from the Labor Day bank holiday buoyed by expectations of further stimulus measures from the People's Bank of China.
Just after 1500 BST, the Dow Jones Industrial Average was up 281 points to 16,383.65, while the S&P 500 and the Nasdaq gained 38 and 100 points respectively.
However, Japanese stocks slumped to a seven-month low, as the Nikkei Stock Average relinquished its gains for the year after declining 2.43% on the day, bringing its monthly drop to approximately 8%.
Tuesday data
In what is a largely quiet session on the data front, investors will focus on a reading on consumer credit numbers for July, which are released at 2000 BST.
Meanwhile, the National Federation of Independent Business said its small-business optimism index rose 0.5 points to 95.9.
Of the 10 components, five posted gains, three fell and two remained unchanged. With just over a week to go until the next Federal Open Market Committee meeting, traders are still looking for clues over the timing of the first hike in interest rates.
They could get some more details when Minneapolis Fed President Narayana Kocherlakota, a non-voting member of the FOMC, speaks on the outlook for US monetary policy at Northwestern University in Evanston, Illinois, at 2215 BST.
Apple edges higher ahead of iPhone 6S unveiling
In company news, Apple rose 2.69% as investors eagerly awaited the unveiling of the tech giant's iPhone 6S and iPhone 6S Plus models at an event on 9 September.
General Electric gained 1.67%on news the European Union is set to give the green light to its $17bn takeover of Alstom SA's power business.
Coca Cola Enterprises climbed 1.02%, although analysts at RBC Capital downgraded their rating on the stock from 'outperform' to 'sector perform' and cut the target from $54 to $48.
Earnings from digital-video recorder maker TiVo Inc, restaurant chain Dave & Buster's Entertainment and retailer Men's Wearhouse are all on tap after the close.
Elsewhere, European stocks rallied after Eurozone economic growth was revised higher and German trade data provided further encouragement, while oil prices rebounded. West Texas Intermediate rose 1.31% to $44.88 a barrel, while Brent gained 1.41% to $48.31 a barrel. |
| | Avoid NHS waiting lists with private medical insurance from AXA PPP healthcare from £1.33 a day* The NHS is under pressure to meet people's healthcare demands. ADVFN are working with AXA PPP healthcare to bring you low cost private healthcare cover. |
| | Broker Tips | | Broker tips: Glencore, Amlin, United Utilities JPMorgan Cazenove upgraded Glencore to 'neutral' from 'underweight' and lifted its price target to 150p from 130p.
It said the miner's debt-reduction measures announced on Monday broadly address concerns over the sustainability of the investment grade credit rating.
The bank now estimates a more modest shortfall of around $3bn against S&P's 'BBB' metrics which would be eliminated with a 2.5% increase in commodity prices, although any downward move in spot prices would see pressure re-emerge.
Last Thursday, ratings agency Standard & Poor's cut its outlook on Glencore to 'negative' from 'stable' as it downgraded its forecasts for metals on the back of uncertainty over China, but kept its corporate rating at 'BBB'.
JPM said a number of the initiatives outlined on Monday, including working capital reduction and reducing long-term receivables, were already captured in the bank's forecasts.
It estimated a $4.7bn improvement against its previous net debt forecast, or around $5.6bn on a constant price basis, driven by the proposed and underwritten $2.5bn equity raising and $2.0bn of targeted asset sales.
RBC Capital Markets upgraded Amlin to 'sector perform' from 'underperform' and raised its price target to 675p from 435p on news the insurer has agreed to be bought by Japan's Mitsui Sumitomo Insurance Company for £3.47bn.
RBC said: "The recommended cash offer for Amlin by Mitsui Sumitomo represents strong value for shareholders, in our view, at the highest takeout multiple seen in the sector in recent times."
The Canadian bank said it doesn't see any obstacles to the deal going through as it's backed by some of Amlin's largest shareholders.
It noted that Mitsui Sumitomo has received irrevocable undertakings to vote or procure votes in favour of the deal representing 15.2% of Amlin's issued share capital.
RBC lifted its 2015 earnings per share estimate by 7.6% and said it no longer sees any reason for the stock to underperform.
It based its valuation on the recommended offer price of 670p rounded to the nearest 25p increment.
Shares in United Utilities spiked after Societe Generale upgraded the stock to 'buy' from 'hold', keeping the target unchanged at 940p.
The bank said the recent fall in the share price has resulted in a bare 14% premium to march 2015 market value debt versus 16% for Pennon and 29% for Severn Trent, combined with a 4.6% dividend yield and 17% prospective 12-month total shareholder return.
SocGen said that while the shares have outperformed the Eurofirst 300 by 7% through the general selloff over the past month, they have still underperformed the market by 4% and Severn Trent by 6% over the past year
"Given that UU's enterprise value is only marginally greater than that of Severn Trent (£11.5bn versus £10.2bn), we think the low RCV premium could fuel conjecture of an infrastructure fund bid approach, particularly as UU possesses the strongest balance sheet of the three listed UK water companies," SocGen said. |
| | 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