| | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: Stocks gain despite hawkish Fed remarks Stocks recovered after opening in the red, despite rather hawkish comments over the weekend from at least two top-ranking officials at the US Federal Reserve.
Speaking on Saturday, the president of the San Francisco Fed, John Williams, said he believes it remains appropriate to raise short-term interest rates before year-end. His words were echoed by his peers at the Federal Reserve banks of Richmond and St.Louis.
The latter said that last Thursday's Fed decision had "created rather than reduced global macroeconomic uncertainty". Rate-setters in the US are "ready to go" next month, should conditions warrant.
As of 09:19 the Footsie was 7.14 points higher to reach 6,110.38.
For its part, the Shanghai Stock Exchange Composite Index advanced 1.89% to reach 3,156.54 by the end of trading on Monday.
Also over the weekend, Alexis Tsipras' Syriza party achieved an unexpectedly clean victory in Greece's elections, although it fell short of a majority. His party obtained 145 of the 300 seats in the Athenian parliament. That meant he would be forced into coalition with the small right wing party Independent Greeks which secured 10 seats in the election.
"There can be no confusion any more, the party now once again has a very clear mandate which it intends to implement over the full four-year term.
"While the victory ensures more years of painful austerity for the Greeks, it also brings back some welcome certainty and stability which is going to be extremely important for the country going forward. Grexit risks have now diminished and the Greeks have made their position perfectly clear, they want to remain in the euro, even if it means more pain in the short - term," wrote Craig Erlam, Senior Market Analyst at Oanda.
Zurich Insurance pulls out of talks for RSA
RSA Insurance has announced that Zurich Insurance has terminated discussions with the London-listed insurer regarding a possible offer. Zurich, which issued third-quarter results on Monday said in a statement that it has terminated talks with RSA due to the recent deterioration in the trading performance of its general insurance business. "The group's focus instead will be on taking the necessary actions to deliver on the required performance of the General Insurance business," it said.
Online white goods retailer AO World said it's on track to deliver on its long-term strategic objectives and expects overall revenue for the quarter ended September to grow by 20% to 21% year-on-year, driven by AO.com sales of over 30%. In a trading update ahead of its interim results on 24 November, AO said the UK business continues to grow and it has accelerated its investment in the AO.com brand over the quarter through TV advertising and other media.
O2 could once again become a listed company if a proposed merger with Three goes ahead. In an interview with the Financial Times, CK Hutchison co-group managing director Canning Fok said an initial public offering of the combined £15bn business has been discussed with external investors. "There is a liquidity requirement by our investor group and one way to provide will be an IPO, which we will support," he said.
Al Noor Hospitals has acquired Rochester Wellness for an undisclosed sum. The FTSE 250-lised Abu Dhabi private healthcare provider said in an announcement on Monday that it will expand the group's continuum of care by adding long term care services in Dubai and Oman.
Anita Frew has replaced Martin Flower as the chairman of Croda International, the chemical manufacturer confirmed on Monday. In March, the FTSE 250 company announced that Flower, who had chaired the group for 10 years, would step down from his role and would be succeeded by Frew, the then non-executive director and designate chairman. |
| | Spread Bet And Earn An Apple Watch With Spreadex |
| | Market Movers
techMARK 3,066.59 +0.22%
FTSE 100 6,123.71 +0.32%
FTSE 250 16,900.18 -0.30%
FTSE 100 - Risers
Shire Plc (SHP) 4,901.00p +3.29%
Inmarsat (ISAT) 1,006.00p +1.77%
SSE (SSE) 1,452.00p +1.68%
Smith & Nephew (SN.) 1,163.00p +1.66%
Taylor Wimpey (TW.) 201.80p +1.46%
Wolseley (WOS) 4,193.00p +1.38%
St James's Place (STJ) 883.50p +1.26%
Babcock International Group (BAB) 923.00p +1.26%
Severn Trent (SVT) 2,123.00p +1.19%
Reckitt Benckiser Group (RB.) 5,859.00p +1.09%
FTSE 100 - Fallers
RSA Insurance Group (RSA) 405.20p -20.47%
Standard Chartered (STAN) 699.10p -3.27%
Aberdeen Asset Management (ADN) 323.70p -2.26%
Glencore (GLEN) 123.45p -2.02%
International Consolidated Airlines Group SA (CDI) (IAG) 594.50p -1.00%
BT Group (BT.A) 410.85p -1.00%
Johnson Matthey (JMAT) 2,525.00p -0.82%
GKN (GKN) 271.70p -0.77%
ARM Holdings (ARM) 955.00p -0.57%
BHP Billiton (BLT) 1,092.00p -0.55%
FTSE 250 - Risers
Redefine International (RDI) 53.95p +2.57%
Cranswick (CWK) 1,647.00p +2.17%
Northgate (NTG) 489.80p +2.11%
Card Factory (CARD) 361.40p +1.63%
Clarkson (CKN) 2,163.00p +1.45%
Daejan Holdings (DJAN) 6,060.00p +1.42%
Acacia Mining (ACA) 253.30p +1.32%
Crest Nicholson Holdings (CRST) 575.00p +1.23%
JD Sports Fashion (JD.) 931.00p +1.20%
NMC Health (NMC) 775.50p +1.17%
FTSE 250 - Fallers
Rotork (ROR) 174.80p -6.32%
Vesuvius (VSVS) 359.70p -5.24%
Petra Diamonds Ltd.(DI) (PDL) 106.20p -4.32%
PayPoint (PAY) 1,055.00p -3.30%
AO World (AO.) 164.40p -3.24%
Sophos Group (SOPH) 254.50p -3.14%
Evraz (EVR) 66.60p -3.13%
Polymetal International (POLY) 533.50p -3.09%
Ashmore Group (ASHM) 256.00p -3.07%
Bodycote (BOY) 584.00p -2.91% |
| | UK Event Calendar | | Monday 21 September
INTERIMS
Cdialogues , Digital Globe Services Ltd (DI), Lifeline Scientific Inc., Nasstar, NetDimensions (Holdings) Limited (DI), XLMedia
INTERIM DIVIDEND PAYMENT DATE
First Quantum Minerals Ltd., GKN
QUARTERLY PAYMENT DATE
Brunner Inv Trust, Royal Dutch Shell 'A', Royal Dutch Shell 'B'
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Existing Home Sales (US) (15:00)
Producer Price Index (GER) (07:00)
FINALS
Allergy Therapeutics, Castleton Technology, DX (Group), Finsbury Food Group, Purecircle Limited (DI), Seeing Machines Ltd.
EGMS
B.S.D Crown Ltd (DI)
AGMS
Abzena, PZ Cussons
|
| | 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. |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Equity markets mixed; Volkswagen and RSA Insurance tumble European stocks were mixed early on Monday as investors continued to digest the Federal Reserve's latest policy announcement and awaited fresh catalysts.
At 0850 BST, the benchmark Stoxx Europe 600 index and France's CAC 40 were both up 0.4%, but Germany's DAX was down 0.6%.
Greece's Athex Composite, meanwhile, was 1.3% lower as the country's leftwing leader Alexis Tsipras emerged triumphant from a snap general election.
"European markets are trying to rally, but investor sentiment remains cautious on concerns of lower global growth," said Rebecca O'Keeffe, head of investment at Interactive Investor.
"Many investors had been hoping that the Federal Reserve would finally raise rates in order to draw a line under the matter and remove some of the uncertainty - however, in not taking action, the Fed has extended the ambiguity for investors and called into question the strength of the US economy. With China also in the spotlight amid continuing concerns that their economy will not meet its target growth rate, there is little to drive markets higher."
As far as Greece is concerned, O'Keeffe said investors may have been hoping for a more moderate Greek government, so perpetuation of the status quo may be a disappointment.
In corporate news, shares in RSA Insurance tumbled after Zurich Insurance said it has terminated discussions with the London-listed company regarding a possible £5.6bn offer. Zurich, which issued third-quarter results on Monday said in a statement that it has abandoned its bid for RSA due to the recent deterioration in the trading performance of its general insurance business.
Elsewhere, Volkswagen tanked as the German car maker told US dealers to halt sales of some of its 2015 diesel cars after regulators found that some of its vehicles gave false emissions data, disguising pollution levels.
Pharmaceuticals company Shire was a high riser after it announced that Intuniv has been awarded European approval for use as a non-stimulant drug for attention deficit hyperactivity disorder in children and adolescents. It also benefited from an upgrade to 'overweight' from 'equalweight' by Barclays.
Figures released early on Monday showed producer prices in Germany fell more than expected in August, dragged lower by energy prices.
Prices were down 0.5% on the month and 1.7% lower on the year, according to Destatis. Economists had been expecting a 1.6% drop for the month.
Still to come on the macroeconomic calendar, US existing home sales are at 1500 BST. |
| | 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. |
| | US Market Report | | US close: Stocks finish lower as Fed fuels global growth concerns US stocks finished Friday's session in the red as concerns about global economic growth grew after the Federal Reserve decided to keep interest rates unchanged.
The Dow closed down 1.74%, the Nasdaq dropped 1.37% and the S&P 500 dipped 1.62%.
The Federal Open Market Committee on Thursday announced it would maintain rates at 0.25% amid low inflation and worries about the impact of China's slowdown on the international market.
"Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term," the Fed said in a statement.
Fed Chair Janet Yellen said in light of heightened uncertainty abroad the Fed decided to wait for a rate hike. An interest rate hike in future will depend on a wide range of economic and financial indicators, she added.
Connor Campbell, financial analyst at Spreadex, said US stocks were sent lower on Yellen's "growth-doubting, China-fearing comments most relevant to American traders".
"If investors weren't happy about the contents of Thursday's Fed statement this morning, then they really weren't happy this afternoon, as the markets began to post Greek-saga/China-chaos style losses," he said.
The expectation is now that the Fed will hold off until 2016, with traders putting a 52% chance of a rate hike in January, according to CME FedWatch. The FOMC is scheduled to meet 26-27 January.
Japan's finance minister Taro Aso said the Fed's decision reflected lobbying by emerging economies. Aso said the US central bank should raise interest rates slowly in the future to avoid the risk of sparking capital flight.
"A lot of countries would face depreciation of their own currencies if the U.S. raises rates rapidly just because of improvements in its own economy, which would cause a reversal of capital back to the US," he said. In other US news, the Conference Board's leading economic indicators edged slightly higher in August to 0.1% from a -0.2% reading in the previous month, but short of forecast calling for a 0.2% increase.
Oil prices fell, with West Texas Intermediate slumping 4.3% to $44.95 a barrel, while Brent shed 2.7% to $47.76 a barrel.
In company news, Apple declined after winning a patent ruling in a case against Samsung, with a federal appeals court ruling the iPad manufacturer was to be granted an injunction barring its rival from using specific phone features that violated Apple's patents.
Natural resources group Freeport-McMoRan tumbled after raising $1bn through selling stocks and unveiling plans to raise further funds.
Adobe Systems Inc. gained after the company reported a jump in third-quarter profit.
Medical-device maker Penumbra Inc. surged 37.67% to $41.40 in its trading debut, after the group priced its initial public offering at $30 per share. |
| | Blue Chip Opportunities - Morgan Stanley issues 'full house' buy alert | | Morgan Stanley recently put out a 'full house' buy alert, effectively calling the bottom of 2015's late summer equity slump. The last time it issued such a bullish signal, back in 2009 following a massive financial crash, the FTSE100 promptly commenced an uptrend that's still valid today. Download your copy of this report in which we discuss reasons for the August sell-off and why you should seriously consider investing in our five September picks. Losses can exceed deposits |
| | Newspaper Round Up | | Monday newspaper round-up: Pensions, Anglo American, China Boris Johnson's pensions tsar has warned that the National Health Service faces a half-trillion-pound pension deficit and urged the government to tackle generous public sector retirement packages that have become unaffordable. In a report to the Treasury being submitted today, Edi Truell, the millionaire City financier who was appointed last month to advise the mayor of London on pensions and investments, said that the cost to the taxpayer of funding the retirement of 1.3 million former and present NHS staff was close to topping £500bn. - The Times
The biggest shareholder in Anglo American has suggested that it may accept a cut in the company's dividend, the first since payments were suspended in 2009, as the mining industry wrestles with continuing low commodity prices. There was speculation in the summer that Anglo's half-year payment could be reduced, but in the event it was maintained. The dividends cost the company $1bn a year. - The Times
House sales are rising at an explosive pace in China across most regions of the country as stimulus measures kick in and the Communist authorities launch yet another cycle of credit growth. Fresh data collected by JL Warren Capital show that sales of existing homes surged by 115% from a year earlier in the second week of September, rising to 135% for the so-called 'tier two' group of mid-to-large size cities. - The Daily Telegraph
George Osborne has urged Chinese leaders to press on with economic reforms as he played down fears that China's recent stock market turmoil and economic slowdown will endanger the global economy. Speaking on Sunday the chancellor insisted that even with its economy slowing, China would continue to be "a massive source of growth going forward". - The Guardian
Cenkos is canvassing opinion among investors for a change of management at the top of Debenhams and the ousting of the chairman. Sources close to the City broker have indicated that it is acting on behalf of institutions that own upwards of 20% of the department store chain, although this could not be confirmed over the weekend. One source claimed that Nigel Northridge had been "asleep at the wheel for some time". - The Times
The average price of a house in Britain is set to reach a staggering £300,000 by the end of the year, if price growth in the property market continues at its current pace, new research has revealed. Rightmove's House Price Index showed the average house price hit a new national high this month amid a supply shortage. The increase of £2,550 to £294,834 is the biggest September rise in 13 years, and if property prices continue to rise at this astounding rate, property coming to the market will have a price tag of £302,484 by December. - The Daily Telegraph |
| | 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