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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 as BoE's Weale says interest rates must rise soon UK stocks gained as a Bank of England policymaker said interest rates must rise "relatively soon".
Monetary Policy Committee member Martin Weale said an increase in rates would give the central bank leg room to make cuts in the event of another financial crash.
"With wage growth remaining firm, the tightening labour market means that inflation is likely to rise above target in two to three years' time," Weale wrote in an article for The Scotland on Sunday newspaper.
"Policy needs to be set with reference to this, rather than the current rate of inflation. As a result, it seems likely to me that the Bank Rate will need to rise relatively soon."
Meanwhile, China was in focus after reports on industrial production and retail sales. Industrial production rose 6.1% in August compared to a year ago, falling short of analysts' expectations for a 6.5% increase and following the previous month's 6% gain. Retail sales climbed 10.8% in August, more than the forecast for a 10.6% rise and a 10.5% jump a month ago.
Michael Hewson, chief market analyst at CMC Markets, said the latest Chinese data over the weekend has fuelled concerns about the slowdown in the world's second largest economy.
"With investors still unsure about what is going on with respect to the Chinese economy after last week's much weaker than expected inflation data, there is still an expectation that Chinese authorities will have to take further steps to ease monetary policy further in the coming weeks, and it is this, along with a weaker Chinese currency, that is fuelling concerns that we could see China export further deflationary price pressures into the global economy in the coming months," he said.
On the company front, the Royal Bank of Scotland advanced following reports the lender hired Bank of America Merrill Lynch to prepare a spin-off of its Williams & Glyn-branded retail branches in the second half of 2016.
Trinity Mirror slumped after saying it was in talks to buy out the shares it does not already own in rival Local World Holdings Ltd.
Fastjet declined as it named Colin Child as non-executive chairman with effect from Oct 1.
Anglo American edged higher as it completed the sale of its copper business, Anglo American Norte SA, to an investor consortium led by Audley Capital Advisors LLP, with Orion Mine Finance as the principal co-investor.
Chemring Group rose as the protection solutions provider reiterated full-year expectations after reporting a sharp rise in revenue.
Shire climbed as the pharmaceutical company is reportedly mulling options to sweeten its multi-billion dollar, all-stock offer for US biotechnology group Baxalta by putting cash into shareholders' hands sooner. |
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| | Market Movers
techMARK 3,099.04 +0.78%
FTSE 100 6,174.53 +0.93%
FTSE 250 17,041.02 +0.43%
FTSE 100 - Risers
ARM Holdings (ARM) 966.00p +3.43%
Coca-Cola HBC AG (CDI) (CCH) 1,376.00p +2.38%
Hargreaves Lansdown (HL.) 1,194.00p +2.23%
BHP Billiton (BLT) 1,081.00p +2.22%
St James's Place (STJ) 891.50p +2.06%
Anglo American (AAL) 732.60p +1.98%
Randgold Resources Ltd. (RRS) 3,713.00p +1.92%
Relx plc (REL) 1,074.00p +1.90%
Rio Tinto (RIO) 2,427.00p +1.85%
Fresnillo (FRES) 606.50p +1.85%
FTSE 100 - Fallers
Morrison (Wm) Supermarkets (MRW) 162.90p -1.39%
FTSE 250 - Risers
Acacia Mining (ACA) 243.90p +3.17%
AL Noor Hospitals Group (ANH) 832.50p +2.21%
Henderson Group (HGG) 264.90p +2.16%
Man Group (EMG) 164.80p +2.11%
Ocado Group (OCDO) 318.30p +1.82%
Investec (INVP) 524.50p +1.55%
Lonmin (LMI) 22.68p +1.52%
Electrocomponents (ECM) 192.40p +1.42%
UBM (UBM) 489.40p +1.41%
Polar Capital Technology Trust (PCT) 554.00p +1.37%
FTSE 250 - Fallers
PayPoint (PAY) 980.00p -3.83%
NMC Health (NMC) 740.00p -2.63%
Rathbone Brothers (RAT) 2,159.00p -2.53%
Allied Minds (ALM) 475.10p -2.50%
John Laing Group (JLG) 207.00p -2.17%
Kaz Minerals (KAZ) 158.40p -2.10%
Home Retail Group (HOME) 134.50p -1.90%
Fidelity China Special Situations (FCSS) 114.10p -1.89%
Redefine International (RDI) 54.25p -1.18%
Big Yellow Group (BYG) 675.50p -1.17%
FTSE TechMARK - Risers
Oxford Biomedica (OXB) 9.00p +3.45%
Dialight (DIA) 634.00p +2.26%
E2V Technologies (E2V) 248.00p +0.71%
KCOM Group (KCOM) 93.25p +0.54%
Consort Medical (CSRT) 965.00p +0.52%
Skyepharma (SKP) 358.00p +0.28%
SDL (SDL) 369.25p +0.20%
FTSE TechMARK - Fallers
Ricardo (RCDO) 880.00p -2.11%
NCC Group (NCC) 251.50p -1.76%
Innovation Group (TIG) 39.75p -0.62%
Sepura (SEPU) 180.00p -0.28%
Oxford Instruments (OXIG) 629.50p -0.08% |
| | UK Event Calendar | | Monday 14 September
INTERIMS
Applegreen, Central Asia Metals, Christie Group, Escher Group Holdings, Global Ports Investments GDR (REG S), Midatech Pharma
QUARTERLY PAYMENT DATE
Barclays
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Industrial Production (EU) (10:00)
GMS
Coal of Africa Ltd.
FINALS
Abcam, City of London Investment Group, Empiric Student Property , Kalibrate Technologies
AGMS
F&C Managed Portfolio Trust Growth Shares, F&C Managed Portfolio Trust Income Shares, Infrastructure India
FINAL DIVIDEND PAYMENT DATE
Games Workshop Group, Greene King, Pets at Home Group
|
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Shares push higher as investors eye Fed meeting European stocks rose in early trade, shrugging off soft Chinese data at the start of a week which could see the Federal Reserve raise interest rates for the first time in nearly a decade.
At 0850 BST, the benchmark Stoxx Europe 600 index was up 0.6%, while Germany's DAX and France's CAC 40 were both 0.8% firmer.
Shares in China fell as weak industrial output figures overshadowed better-than-expected retail sales data for August.
On Sunday, Beijing outlined a plan to improve the competitiveness of the country's state-owned enterprises by allowing them to add private investors, but even this wasn't enough to lift the overall mood.
The main focus this week will be on the Federal Reserve, as the two-day Open Market Committee meeting culminates on Thursday with a decision on interest rates. If the Fed does hike, it would the first major central bank in the Western world to do so since the global financial crisis of 2008.
"The Federal Reserve decision on interest rates this Thursday remains too close to call, creating significant uncertainty for investors," said Rebecca O'Keeffe, head of investment at Interactive Investor. "Markets, commentators and indeed Fed officials themselves remain divided over whether the Fed should raise rates this month. While events in China and emerging markets have created complications, the US economy is still growing strongly, with conditions in the labour market heading firmly in the right direction."
O'Keeffe said that should the Fed hold rates, it is likely markets will breathe a sigh of relief for now. "However, market response to a possible rate rise is more difficult to gauge, with the likelihood that reaction will be negative, but a possibility that investors might respond with relief that the decision has finally been made."
Spain's Banco de Sabadell nudged into the red following reports the bank is looking to make an €18bn bid for mortgage asset portfolios from Northern Rock and Bradford & Bingley.
Credit Suisse was also in the spotlight after a newspaper report said it intends to sell its US private bank.
Elsewhere, Airbus ticked higher on news it plans to overtake Boeing the in the US by opening its first jet production site there. |
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| | US Market Report | | US close: S&P advances most since July ahead of FOMC Investors were undaunted heading into the weekend, pushing stocks into the green in late trading ahead of next week's FOMC meeting and Chinese data scheduled for release on Sunday.
The S&P 500 ended the session higher by 0.45% at 1,961, for a weekly gain of 2.1% - its best showing since July. The Dow Jones Industrials was 0.63% at 16,433 by the closing bell and the Nasdaq Composite advanced another 0.54% to 4,822.
That came despite mixed data on the ecoonomic front; consumer sentiment plumbed a 12-month low while core factory gate prices came in well above market forecasts.
The VIX - Wall Street's so-called 'fear gauge' - was itself quite volatile, closing 4.8% lower at 23.20 points after having traded up by as much as 5.9% at one point in the session.
From a sector standpoint, the best performance was seen in the following industrial groups: Gold (3.21%), retail REITS (2. 21%) and residential REITs (2.20%). On the S&P 500 itself, consumer discretionary and healthcare put in the strongest showing on Friday.
"Global volatility appears to be on the wane as we approach the end of the week, with fundamental releases somewhat thin on the ground ahead of an absolutely crucial week to come in financial markets," said IG's market analyst Joshua Mahony.
Acting as a backdrop, on Thursday Goldman Sachs told clients recent volatility in stocks, dearer corporate borrowing costs and the strengthening Greenback had contributed to a tightening of financial conditions equivalent to almost three 25 basis-point hikes in the federal funds rate.
Grocery chain Kroger rose 5.3% after posting better-than-expected second quarter earnings, while Pfizer rose 1% even after a UK judge ruled against the drug maker in a patent case involving its Lyrica drug.
Mattress Firm Holding Corp. cratered 23%. The Houston-based chain of bedding stores referenced poor demand from markets hurt by volatility in the price of crude.
Consumer sentiment Stateside takes a hit
US consumer confidence declined to its lowest level in a year in September. The University of Michigan index fell to 85.7 in September from 91.9 in the previous month, falling short of analysts' expectations for a 91.1 reading.
Despite the large drop in a sub-index of consumer expectations, which printed at 76.4 versus 83.4 in the prior month, economists at Capital Economics pointed out that: "Historically, a reading at that level has been consistent with real consumption growth of about 3% annualised. i.e. in line with what we expect over the second half of this year."
The US producer price index, which measures the prices companies receive for goods and services, was unchanged month-on-month in August (consensus: -0.1%) after rising 0.2% in July, according to data released by the Bureau of Labor Statistics.
Excluding food and energy, core prices were up 0.3% in August, versus consensus expectations for a 0.1% gain month-on-month. Over the year, prices were down 0.8% (consensus: -0.9%).
"The August report suggests a split in producer price pressures, with goods prices and in particular energy goods being a drag," analysts at Barclays said in a note.
"Services prices, which are probably a better measure of domestically driven price pressures, were solid, however."
Asia mixed as gold slides
Elsewhere, Asian stocks ended mostly lower, as energy companies slid after Goldman Sachs warned oil prices could hit as low as $20 per barrel.
Hong Kong's Hang Seng index fell 0.27% and Japan's Nikkei 225 dropped 0.19% while the Shanghai composite rose 0.07%.
Oil prices fell sharply, after Saudi Arabia officials intimated they will not back an emergency OPEC meeting.
West Texas Intermediate lost 2.48% to $44.78 a barrel, while Brent dropped 2.62% to $47.64 a barrel. Gold futures slipped 0.12% to $1,108 per ounce. |
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| | Newspaper Round Up | | Monday newspaper round-up: Tesco, Migrants, Debt ratios The entire board of Tesco has bought less than £350,000 of shares in the supermarket chain, and chief executive Dave Lewis has yet to buy any, despite being in charge for a year. The lack of share purchases by Lewis and Alan Stewart, the finance director, has raised eyebrows among corporate governance pressure groups and shows that the Tesco executives have not been willing to back their turnaround plan by putting their own money into the retailer. - The Guardian
Germany introduced controls on its frontier with Austria last night as the unprecedented influx of migrants pushed the European Union's passport-free travel zone to the brink of collapse. In a blow to the EU's Schengen borderless area, Thomas de Maizière, the German interior minister, announced the move as a temporary response to the crisis. - The Times
Debt ratios have reached extreme levels across all major regions of the global economy, leaving the financial system acutely vulnerable to monetary tightening by the US Federal Reserve, the world's top financial watchdog has warned. The Bank for International Settlements said the wild market ructions of recent weeks and capital outflows from China are warning signs that the massive build-up in credit is coming back to haunt, compounded by worries that policymakers may be struggling to control events. - The Daily Telegraph
Challenger banks have urged the competition watchdog to have a "major rethink" about high street giants Lloyds and RBS as part of their probe into the current account and small business banking markets. The CMA's investigation is believed to lack rigour and is unlikely to lead to any significant changes in the market. - The Daily Telegraph |
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