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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 rebound as investors shrug off weak Chinese factory PMI The FTSE opened in positive territory on Wednesday, reversing the previous day's declines, as investors shrugged off disappointing Chinese manufacturing data.
Caixin's purchasing managers' index on China factory activity fell to 47 in September from 47.3 in August, below the 50 level that separates a contraction from expansion. It missed analysts' estimates for a reading of 47.5.
"Investor sentiment has been dealt another blow on Wednesday after the China Caixin manufacturing index slipped to a six-and-a-half-year low, fuelling Chinese growth fears at a time when concerns are already quite elevated," said Craig Erlam, senior market analyst at Oanda.
"Falling demand both domestically and abroad is only going to make the task of achieving 7% growth that much harder and in fact, there has already been a number of revisions to Chinese growth forecasts this year."
In the latest revision to economic growth in China, Asian Development Bank expects 6.8% growth this year and 6.7% next year.
In the Eurozone, Markit's manufacturing purchasing managers' index fell to 52 in September from 52.3 in August, as expected. Services PMI dropped to 54 this month from 54.4 in August, compared to forecasts of 54.2. The Composite PMI, which combines manufacturing and services activity, fell to 53.9 in September from 54.3 the prior month, below estimates of 54.
The market is now awaiting the release of manufacturing in the US, which is expected to drop to 52.8 this month from 53 in August. The US will also see the release of weekly mortgage application figures from the Mortgage Bankers' Association.
Meanwhile, European Central Bank president Mario Draghi will testify on monetary policy before the European Parliament Committee in afternoon trade amid speculation on the length of the quantitative easing programme.
Company-wise, Smiths Group jumped as the engineering group posted a 3% rise in full-year pre-tax profit and CEO Phil Bowman handed over his role to Andrew Reynolds Smith.
United Utilities Group climbed despite saying that revenue in the six months to 30 September is likely to remain flat and profit is expected to drop.
Johnson Matthey continued to slide on concerns the auto maker will suffer a fallout from the Volkswagen's diesel emissions scandal. Volkswagen is facing US investigations on claims it deceived regulators in exhaust emissions tests. The news puts further strain on the reputation of diesels in the US, which provides more than half of Johnson Matthey's annual sales.
BBA Aviation slumped after the aerospace support and aftermarket services provider announced the acquisition of US rival Landmark Aviation. |
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techMARK 2,995.85 +0.50%
FTSE 100 5,967.73 +0.54%
FTSE 250 16,523.50 -0.04%
FTSE 100 - Risers
Smiths Group (SMIN) 1,061.00p +3.11%
Coca-Cola HBC AG (CDI) (CCH) 1,364.00p +1.87%
International Consolidated Airlines Group SA (CDI) (IAG) 576.50p +1.68%
HSBC Holdings (HSBA) 494.90p +1.54%
Shire Plc (SHP) 4,605.00p +1.36%
easyJet (EZJ) 1,723.00p +1.35%
Legal & General Group (LGEN) 242.00p +1.34%
SABMiller (SAB) 3,515.00p +1.34%
Capita (CPI) 1,186.00p +1.02%
Royal Dutch Shell 'B' (RDSB) 1,559.50p +1.00%
FTSE 100 - Fallers
Johnson Matthey (JMAT) 2,260.00p -2.50%
Glencore (GLEN) 103.95p -2.26%
RSA Insurance Group (RSA) 402.10p -1.01%
St James's Place (STJ) 840.00p -1.00%
Travis Perkins (TPK) 1,971.00p -0.71%
Wolseley (WOS) 4,086.00p -0.68%
CRH (CRH) 1,794.00p -0.66%
Taylor Wimpey (TW.) 195.50p -0.56%
Babcock International Group (BAB) 873.50p -0.51%
Randgold Resources Ltd. (RRS) 3,721.00p -0.51%
FTSE 250 - Risers
Premier Oil (PMO) 70.80p +11.32%
Kaz Minerals (KAZ) 111.20p +6.51%
Petra Diamonds Ltd.(DI) (PDL) 93.95p +3.30%
Clarkson (CKN) 2,100.00p +3.24%
CLS Holdings (CLI) 1,913.00p +2.30%
UBM (UBM) 490.20p +1.89%
Aberforth Smaller Companies Trust (ASL) 1,157.00p +1.85%
Mitie Group (MTO) 278.60p +1.53%
Wood Group (John) (WG.) 591.50p +1.37%
Millennium & Copthorne Hotels (MLC) 516.00p +1.28%
FTSE 250 - Fallers
Zoopla Property Group (WI) (ZPLA) 201.80p -4.86%
BBA Aviation (BBA) 271.70p -4.57%
Greene King (GNK) 776.50p -3.60%
Capital & Counties Properties (CAPC) 417.00p -1.81%
Virgin Money Holdings (UK) (VM.) 379.60p -1.73%
Redefine International (RDI) 52.60p -1.59%
OneSavings Bank (OSB) 395.00p -1.50%
Unite Group (UTG) 636.00p -1.47%
Sophos Group (SOPH) 244.70p -1.33%
Redrow (RDW) 454.40p -1.30%
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Spirent Communications (SPT) 75.50p +1.68%
Ricardo (RCDO) 905.00p +1.17%
KCOM Group (KCOM) 89.75p +1.13%
NCC Group (NCC) 268.75p +0.66%
Oxford Instruments (OXIG) 553.00p +0.45%
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Dialight (DIA) 630.00p -0.71%
Innovation Group (TIG) 39.50p -0.63%
Skyepharma (SKP) 343.75p -0.29%
IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 202.26 -0.05%
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| | UK Event Calendar | | Wednesday 23 September
INTERIMS
EG Solutions, Gresham House, Highland Gold Mining Ltd., JQW, NAHL Group, Styles & Wood Group
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
MBA Mortgage Applications (US) (12:00)
FINALS
Hansard Global, Smiths Group
AGMS
Alcentra Euorpean Floating Rate Income Fund Ltd Red Ord Shs, Arricano Real Estate (DI), Avarae Global Coins, Begbies Traynor Group, Best of the Best, Diageo, Eckoh, First Property Group, Imaginatik, Real Good Food , Scientific Digital Imaging, Twentyfour Income Fund Limited Ord Red
TRADING ANNOUNCEMENTS
United Utilities Group
UK ECONOMIC ANNOUNCEMENTS
BBA Mortgage Lending Figures (09:30)
FINAL DIVIDEND PAYMENT DATE
Bloomsbury Publishing
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks shrug off early losses to trade flat as investors digest China data European stocks shrugged off opening losses to trade flat as investors digested disappointing Chinese manufacturing figures and mixed data out of France and Germany.
At 0850 BST, the benchmark Stoxx Europe 600 index was up 0.1%, while France's CAC 40 and Germany's DAX were both unchanged.
According to data released on Wednesday, the slowdown in China's manufacturing sector accelerated moderately in September, although some economists were wary of reading too much into the latest figures.
Caixin's preliminary Chinese manufacturing sector purchasing managers' index for September dipped to a reading of 47.0 - a six-and-a-half year low - down from a print of 47.3 for August.
The median projection from economists had been for a reading of 47.5.
"This will just serve as affirmation of a troubled and slowing China and support the Fed's decision to hold interest rates at historic lows based on concerns related to growth in China, Emerging markets and globally," said Mike van Dulken, head of research at Accendo Markets.
Auto stocks were under pressure again as the Volkswagen emissions scandal gathered pace. According to press reports, a panel of senior supervisory board members at the German car maker will meet on Wednesday to discuss allegations by US authorities that it rigged emissions tests.
And it seems VW's woes will have much wider repercussions, as Deutsche Bank cut its 2015 and 2016 year-end targets for the DAX to adjust for news flow on the car maker.
The bank pointed out that news about VW's legal case on emissions in the US has erased DAX Autos' market cap by 15% in just two days, which it said was a "huge headwind" to its current view on the DAX, given the sector's 35% earnings per share and 25% market cap contribution to the German blue chips index.
Elsewhere, German media holding company Axel Springer SE was in focus following reports that it's in advanced talks to buy Business Insider in a deal that would value the US digital publisher at around $500m.
Swiss Re nudged just a touch lower after announcing that its business unit Admin Re has agreed to acquire Guardian Holdings Europe Limited, the holding company for operations trading under the name Guardian Financial Services, from Cinven for £1.6bn.
In London, diversified engineering company Smiths Group rose after posting a 3% increase in full-year pre-tax profit, despite a decline in revenue. The company also named Andrew Reynold Smiths as its new chief executive, with current CEO Philip Bowman stepping down at the close of business on 24 September.
Brewer Diageo was on the back foot. The company said the year had started well and performance was in line with its expectations, but warned that adverse exchange rate movements will hit 2016 operating profits by £150m as demand for premium spirits is impacted in emerging markets.
Data released earlier showed private-sector activity in France bounced back in September. The preliminary reading of the Markit Purchasing Managers Index for manufacturing rose to 50.4 from 48.3 in August, beating expectations for a reading of 48.5. The services PMI increased to 51.2 from 50.6.
Germany's manufacturing PMI for September missed forecasts, however, falling to 52.5 from 53.3 in August. The services PMI nudged down to 54.3 from 54.9. |
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| | US Market Report | | US close: Weak technical picture keeps investors at bay More negative headlines on the Chinese economy sent traders scurrying for the exits yet again, as investors continued to cast a wary eye towards equities amid what some market commentary described as a weak 'technical' picture.
The Standard&Poor's 500 ended the day down by 1.22% or 24 points to 1,943 - a two-week low. In parallel, the Nasdaq was 1.49% or 72 points lower at 4,757 while Dow Jones Industrials retreated 1.04% or 180 points to 16,330.
For one, the former benchmark continued to trade comfortably below its so-called 50 and 200-day moving averages, having failed thus far to recover from the wave of selling that broke over markets in August.
"With the FOMC meeting and Greek elections both resolving in a positive manner for financial markets and global stability, it would make sense that we saw some form of relief rally in response," said IG's market analyst Joshua Mahony.
"However, the weakness seen since Thursday's Federal Reserve decision is highlighting a high possibility that we are due to embark on yet another major selloff in global indices."
On a more positive (and medium-term) note, in a research report sent to clients Barclays's Global Equity Strategy team said: "if our earnings projections are right, today's extremely negative sentiment towards equities should unwind, with global equities able to recover the bulk of their recent losses over time."
The analysts, led by Ian Scott, explained: "The key to the outlook for global equities is earnings, with global valuations in line with historical averages, a supportive monetary policy backdrop, and very bearish sentiment, a major hit to EPS is the main risk for the market."
Dow Jones Transports, commodity sectors weakest
Overnight the Asian Development Bank trimmed its forecast for the rate of growth in Chinese gross domestic product in 2015 and 2016. That appeared to trigger another wave of selling in commdity markets. Three-month futures on the LME dropped nearly 4%, although over on COMEX the industrial metal ended the day with losses of just 0.7%.
The Manila-based multilateral lender lowered its GDP projection for this year to 6.8%, down from a previous stab of 7.2%.
Semiconductor and biotechnology were some of the weakest sectors, but some observers emphasised the sharp drop seen in the Dow Jones Transports in particular, which lost 2.51%.
The worst performance was seen in the following industial groups: Coal (-6.24%), Gold (-5.25%) and Mining (-4.72%).
The above came amid poor seasonals and trading volumes that were in-line with their rolling three-month averages. The passing of the Jewish feastday of Yom Kippur was little mentioned amid the din, although some old hands might see that as one small positive. "Sell on Rosh Hashanah and buy on Yom Kippur," holds one old Wall Street adage.
Housing data in line with expectations
According to the Federal Housing Finance Agency, home prices in the US rose 0.6% month-on-month in July, compared with a 0.2% increase in the previous month and with the 0.4% hike analysts had expected.
The increase took the year-on-year gain to 5.8%, the report added.
As of Friday's close, Fed funds futures were assigning a probability of just 41% to a rate hike from the Fed come December.
Darden Restaurants lifted its outlook for the year and reported better than-expected revenues but shares fell 0.83%, while Goldman Sachs' shed 1.98% after Chief Executive Lloyd Blankfein said he had lymphoma, albeit curable.
CarMax Inc. slumped 4.69%, despite posting a better-than-expected 11% increase in profit for its August quarter, as sales missed estimates. Thw wider US autmobile sector was also left reeling in the aftermath of the recent scandal at Volkswagen.
Front month West Texas crude futures ended the session down by 1.09% at $46.17 per barrel on NYMEX.
Ten-year US treasury yields were seven basis points lower at 2.14% by the time of the closing bell on 11 Wall Street.
S&P 500 - Risers
Dollar Tree Inc (DLTR) $69.18 +1.96%
Adobe Systems Inc. (ADBE) $84.66 +1.61%
Pentair plc (PNR) $51.27 +1.61%
Transocean Ltd. (RIG) $14.49 +1.05%
Allergan plc (AGN) $287.76 +0.75%
Leucadia National Corp. (LUK) $20.26 +0.75%
Gilead Sciences Inc. (GILD) $106.51 +0.73%
Tesoro Corp. (TSO) $94.36 +0.73%
E.I. du Pont de Nemours and Co. (DD) $48.57 +0.68%
Biogen Inc (BIIB) $299.06 +0.64%
S&P 500 - Fallers
Peabody Energy Corp. (BTU) $1.19 -13.14%
United States Steel Corp. (X) $11.82 -8.37%
Borg Warner Inc. (BWA) $39.37 -7.60%
ConAgra Foods Inc. (CAG) $39.40 -7.08%
Mosaic Company (MOS) $33.88 -7.03%
Chesapeake Energy Corp. (CHK) $8.00 -6.76%
Exelon Corp. (EXC) $28.46 -6.75%
NRG Energy Inc. (NRG) $15.36 -6.34%
CONSOL Energy Inc. (CNX) $12.04 -6.30%
Newmont Mining Corp. (NEM) $15.59 -6.25%
Dow Jones I.A - Risers
E.I. du Pont de Nemours and Co. (DD) $48.57 +0.68%
Johnson & Johnson (JNJ) $93.24 +0.12%
General Electric Co. (GE) $25.11 +0.08%
Dow Jones I.A - Fallers
United Technologies Corp. (UTX) $88.20 -3.63%
Goldman Sachs Group Inc. (GS) $179.72 -1.98%
Intel Corp. (INTC) $28.67 -1.68%
Apple Inc. (AAPL) $113.40 -1.57%
Cisco Systems Inc. (CSCO) $25.14 -1.57%
Travelers Company Inc. (TRV) $98.98 -1.53%
Boeing Co. (BA) $133.99 -1.49%
3M Co. (MMM) $138.02 -1.44%
International Business Machines Corp. (IBM) $144.43 -1.40%
American Express Co. (AXP) $75.71 -1.34%
Nasdaq 100 - Risers
Dollar Tree Inc (DLTR) $69.18 +1.96%
Adobe Systems Inc. (ADBE) $84.66 +1.61%
Gilead Sciences Inc. (GILD) $106.51 +0.73%
Biogen Inc (BIIB) $299.06 +0.64%
KLA-Tencor Corp. (KLAC) $49.40 +0.41%
Regeneron Pharmaceuticals Inc. (REGN) $530.18 +0.15%
Sirius XM Holdings Inc (SIRI) $3.85 +0.13%
Intuit Inc. (INTU) $86.85 +0.05%
Maxim Integrated Products Inc. (MXIM) $33.12 +0.00%
Nasdaq 100 - Fallers
Vimpelcom Ltd Ads (VIP) $4.67 -6.04%
Staples Inc. (SPLS) $12.75 -5.83%
Western Digital Corp. (WDC) $72.05 -5.52%
Seagate Technology Plc (STX) $43.79 -5.22%
Nxp Semiconductors Nv (NXPI) $86.35 -4.43%
Wynn Resorts Ltd. (WYNN) $63.93 -3.95%
NetApp Inc. (NTAP) $30.07 -3.68%
Illumina Inc. (ILMN) $193.09 -3.55%
Discovery Communications Inc. Class A (DISCA) $27.81 -3.47% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: European Oil and Gas, Volkswagen, Santander KKR, the American private equity giant, is set to invest hundreds of millions of dollars buying up European oil and gasfields, as it seeks to take advantage of depressed valuations in the industry after the collapse of world oil prices. KKR said yesterday that it was launching a new company, Trans European Oil and Gas, to invest in the sector, which has been battered by a slide in crude prices to below $50 from over $100 a year ago. - The Times
The global car industry was thrown into turmoil yesterday as Volkswagen said up to 11m of its vehicles might be affected by the growing diesel emissions scandal and governments around the world launched investigations into the company. Shares in carmakers in Europe and the US tumbled, as investors worried the allegations could draw in other carmakers and threaten the future of diesel technology. - Financial Times
It is five years since Ana Botin took over as Santander's UK chief, in a move that had been expected to herald the flotation of the bank on the stock market. Yet the years have passed, Ms Botin has inherited her late father's placeas chairman of the global Santander group in Spain, and the UK arm is still firmly under its parent's ownership. But today she is back in London, hosting a two-day investor event that may at long last give us some fresh hints on the future ownership of the UK arm. - The Daily Telegraph
The price of good quality English farmland has doubled over the past five years, making it the most expensive in the world and offering a better return than prime London property, the FTSE 100 or gold. According to agents Knight Frank demand from wealthy private individuals as well as pension funds, has driven up the average price for an acre of "investment grade" English farmland (large plots with economies of scale) to £12,500, up 100% since 2010. - The Guardian
Germany and France united against the minnows of eastern Europe yesterday to push through quotas that will force them to accept thousands of migrants. After days of diplomacy failed to find consensus, EU interior ministers held a majority vote to overrule the Hungarian, Romanian, Czech and Slovakian opposition to quotas relocating 120,000 migrants, principally from Italy and Greece, across the EU. Britain has an opt-out from the quotas. - The Times |
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