| | | | | The Top 10 Stocks for Q4 | | Your guide to the best investments for the new quarter
Our latest Top 10 Stocks report takes a look at a fresh selection of blue chips that have the potential to offer exciting trading opportunities for the new quarter and into year-end.
Get your copy of this report and discover our top picks for the quarter.
Losses can exceed deposits | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London close: Footsie underperforms on weakness in commodities The top flight index underperformed as commodity markets weakened on the back of soft Chinese fixed asset investment and industrial production figures.
By the closing bell the Footsie was to be seen down by 25.71 points at 6,352.33.
In the commodities space meanwhile, three-month copper futures dropped by 1.3% to reach $5,201.00 per metric tonne out on the LME.
That came alongside a 3.3% hit to front month Brent crude futures which fell back to the $48.85 per barrel level on the ICE. Iran's nuclear negotiator Abbas Araqchi said he expected a deal to be implemented by year-end.
Figures from China's statistics office revealed the country's gross domestic product expanded at a 6.9% year-on-year clip in the three months ending in September, down a touch from the 7% pace seen over the first two quarters of 2015.
Economists had pencilled in growth of 6.8%.
The breakdown of the data suggested that stronger growth on the services side of the economy mostly offset weaker factory output, analysts at Capital Economics said in a research note sent to clients.
However, speaking on Bloomberg TV other economists such as Alberto Gallo at RBS emphasised the fact that when looking out over the medium-term Beijing might not have as much 'dry powder' as one might think.
For their part, economists from HSBC took aim at the highly credit intensive GDP growth in the Asian giant.
Shire, Compass lead gains
After US regulators on Friday said they did not have enough data to grant Shire's lifitegrast dry-eye treatment drug prescription status yet, chief executive Flemming Ornskov said a major study has now been completed and top-line data are expected before the end of the year. "If the study is positive, we plan to refile our liftegrast submission in the first quarter of 2016".
Compass Group was close to the top of the leaderboard as well after ratings agency Fitch changed sector peer Elior's outlook to positive and reaffirmed its BB- rating. That sent shares in Compass up over 1%.
Stock in Barclays was buoyed by a weekend report in the FT citing sources who said incoming chief Jes Staley would in fact speed up the lender's retreat from investment banking.
ITV will purchase UTV Media's television assets for £100m. It said once the deal is approved by regulators and shareholders ITV will hold 13 of the 15 regional licences for the Channel 3 network.
Broker Investec initiated coverage on Poundland with a 'hold' recommendation and a 300p price target, saying it sees "better opportunities elsewhere with less risk". The integration of the 99p Stores acquisition is expected to add 69% to full year pre-tax profit over the next three years and return Poundland to around 20% growth in the 2017 and 2018 financial years, but Investec had concerns about the quality of the sites, estimating "at least a third were bought from administration".
Inland Homes delayed the release of its financial results of the year to 30 June 2015. The AIM listed company said on Monday the delays stem from the consolidation of the results and financial position of Drayton Garden Village. |
| | The Top 10 Stocks for Q4 | | Your guide to the best investments for the new quarter
Towards the end of September, we've seen markets rally as buyers return to pick up some nicely discounted shares while inflation concerns look to be pushing a US interest rate rise further into the future. Our latest Top 10 Stocks report takes a look at a fresh selection of blue chips that have the potential to offer exciting trading opportunities for the new quarter and into year-end.
Download your copy of this report and discover our top picks for the quarter.
Losses can exceed deposits |
| | Market Movers
FTSE 100 (UKX) 6,349.84 -0.44%
FTSE 250 (MCX) 16,919.76 0.16%
techMARK (TASX) 3,031.07 0.01%
FTSE 100 - Risers
Shire Plc (SHP) 4,616.00p 2.33%
Compass Group (CPG) 1,072.00p 1.71%
Hammerson (HMSO) 623.50p 1.46%
Hikma Pharmaceuticals (HIK) 2,100.00p 1.45%
Barclays (BARC) 254.15p 1.34%
easyJet (EZJ) 1,746.00p 1.33%
Carnival (CCL) 3,439.00p 1.30%
International Consolidated Airlines Group SA (CDI) (IAG) 604.00p 1.26%
Land Securities Group (LAND) 1,311.00p 1.16%
Sports Direct International (SPD) 659.50p 1.07%
FTSE 100 - Fallers
Anglo American (AAL) 624.40p -7.54%
Glencore (GLEN) 109.20p -5.86%
Fresnillo (FRES) 734.50p -3.29%
Antofagasta (ANTO) 560.50p -3.28%
BHP Billiton (BLT) 1,095.00p -3.05%
Rolls-Royce Holdings (RR.) 670.00p -2.26%
Rio Tinto (RIO) 2,436.50p -2.25%
Royal Dutch Shell 'B' (RDSB) 1,796.00p -2.10%
Royal Dutch Shell 'A' (RDSA) 1,770.50p -2.07%
BP (BP.) 376.55p -1.94%
FTSE 250 - Risers
NMC Health (NMC) 776.50p 6.22%
esure Group (ESUR) 250.40p 3.47%
Pace (PIC) 381.60p 3.33%
Ted Baker (TED) 2,870.00p 3.24%
Provident Financial (PFG) 3,448.00p 2.93%
OneSavings Bank (OSB) 377.10p 2.81%
Booker Group (BOK) 182.50p 2.76%
Brown (N.) Group (BWNG) 365.10p 2.56%
Big Yellow Group (BYG) 703.00p 2.40%
Shaftesbury (SHB) 902.50p 2.21%
FTSE 250 - Fallers
Nostrum Oil & Gas (NOG) 466.30p -10.67%
Kaz Minerals (KAZ) 126.10p -7.75%
Evraz (EVR) 86.75p -6.72%
Premier Oil (PMO) 80.25p -6.69%
Tullow Oil (TLW) 228.00p -6.37%
Vedanta Resources (VED) 544.00p -5.64%
Petrofac Ltd. (PFC) 889.00p -4.82%
Hunting (HTG) 409.40p -4.81%
Ophir Energy (OPHR) 93.65p -4.44%
Cairn Energy (CNE) 150.50p -3.40% |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks little changed as traders weigh Chinese data European equities were little changed on Monday as traders weighed a batch of Chinese data.
At close, the benchmark Stoxx Europe 600 index was up 0.24%, France's CAC 40 was 0.3% higher and Germany's DAX was up 0.59% while Spain's IBEX dropped 0.24% and London's FTSE 100 edged down 0.41%.
China's National Bureau of Statistics said gross domestic product rose 6.9% in the third quarter compared with 7% in the first two quarters. This was better than the 6.8% forecast by economists but still the worst rate of growth since the first quarter of 2009.
Meanwhile, Chinese industrial production rose 5.7% in September, missing economists' expectations of a 6% gain, while retail sales were up 10.9%, a touch ahead of the 10.8% increase expected.
"Overall, we see some nascent signs of growth stabilisation in the non-financial sector driven by fiscal stimulus but no evidence of a durable rebound in the coming months," said Nomura.
"We continue to expect moderate fiscal stimulus from the central government and continued monetary easing, with one more bank reserve requirement ratio cut in the fourth quarter and another four in 2016 (each by 50 basis points), together with two more benchmark interest rate cuts (each by 25bp) in 2016."
Earlier, a report realised by Eurostat showed construction output suffered a sharp slowdown in August.
Seasonally-adjusted construction output in the euro bloc declined 0.2% month-on-month in August from an upwardly revised 0.4% gain in July.
On a year-on-year basis, construction output slumped 6% compared with an upwardly revised 0.3% decline in the previous month.
Across the Atlantic, house builder confidence rose to its highest level in a decade in October, according to National Association of Home Builders/Wells Fargo. The housing market index climbed three points to 64, its highest level since October 2005 and higher than analysts' expectation for a 62 reading.
In company news, mining stocks were under the cosh after further evidence of a slowdown in China's economic growth. Anglo American, Glencore, Fresnillo and Antofagasta were among the fallers.
Oil producers were also lower, including Royal Dutch Shell, Premier Oil and Tullow Oil, after Moody's downgraded its 2016 price estimates for Brent and WTI. At 1637 BST Brent was down 3.1% to $48.93 per barrel and WTI fell 1.7% to $46.43 per barrel.
Deutsche Bank rallied after it announced a reshuffle of its senior management and the splitting of its investment bank into two separate units as part of a strategic overhaul.
Shares in German retailer Metro advanced after it expressed optimism over the Christmas trading period.
French dairy company Danone gained after its third-quarter sales beat expectations, with revenue up 4.6% on a like-for-like basis. |
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| | US Market Report | | US open: Equities get week off to a bad start amid disappointing earnings and poor Chinese data US stocks declined on Monday, as disappointing Chinese data and a series of unimpressive earnings report did little to lift morale among investors.
Shortly before 1500 BST, the Dow Jones Industrial Average was down 72 points to 17,143.75, while the S&P 500 and the Nasdaq were nine and 15 points lower respectively.
Chinese data disappoints
Asian stocks began the week on a mixed note, as data released on Monday showed the Chinese economy expanded at its slowest pace in six years.
China's National Bureau of Statistics said gross domestic product rose 6.9% in the third quarter compared with 7% in the first two quarters.
This was better than the 6.8% forecast by economists but still the worst rate of growth since the first quarter of 2009.
"Today's data suggest that while the official GDP figures continue to overstate the actual pace of growth in China by a significant margin, underlying conditions are subdued but stable," said Julian Evans-Pritchard, China economist at Capital Economics.
"Looking ahead, our view continues to be that stronger fiscal spending and more rapid credit growth will limit the downside risks to growth over the coming quarters."
Meanwhile, Chinese industrial production rose 5.7% in September, missing economists' expectations of a 6% gain, while retail sales were up 10.9%, a touch ahead of the 10.8% increase expected.
Mixed earnings
Among the companies that reported quarterly earnings before the opening bell, Morgan Stanley slumped 6.30% after the banking giant said its third quarter profit fell 40% year-on-year and missed forecasts.
Oil giant Halliburton slid 1.22% after saying it swung to a third quarter loss driven by asset write-downs and acquisition-related expenses, as its business in North America continued to suffer from sluggish demand.
GoPro fell 1.26% after analysts at Wedbush Securities cut its target on the stock from $76 to $50
Abercrombie & Fitch climbed 3.63% after analysts at Wunderlich Securities upgraded their rating on the stock from 'sell' to 'hold' and lifted their target from $15 to $21, while Urban Outfitters slid 0.95% after the same brokerage downgraded the stock from 'buy' to 'hold'.
There was more positive news for Weight Watchers, which surged 60.82% after popular talk show host Oprah Winfrey announced she bought a stake in the company, while IBM will report after the close.
The economic calendar has little to offer on Monday, with a reading for the NAHB housing market index for September released at 1500 BST, while Richmond Federal Reserve's president Jeffrey Lacker will speak at 1700 BST.
Elsewhere, European stocks edged higher, while oil prices declined, as West Texas Intermediate shed 2.34% to $46.18 a barrel, while Brent tumbled 2.58% to $49.19 a barrel. |
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| | Broker Tips | | Broker tips: AB Foods, Vodafone, Oxford Instruments Berenberg downgraded Associated British Foods to 'hold' from buy', keeping the target at 3,450p.
It noted that since it upgraded the stock to 'buy' in February, the share price has increased by 10% while consensus forecasts for 2016 earnings per share have fallen 15% due to a mix of FX translation and impact on margins in the short - term for Primark.
Berenberg said it remained confident about the group's long-term potential, in particular from the roll-out of the Primark concept across Europe, which it reckons is worth 2,750p per share standalone with further upside potential in the US.
However, with just 1% growth forecast for 2016, Berenberg said it was hard to see a catalyst for a trading stock on 31.5x calendar 2016 price-to-earnings that is still subject to volatility in commodities, with excitement over US Primark opening priced in.
"While we do not doubt ABF's quality, the net downgrades (from commodity exposures and FX) have been frustrating and it will be another 12 months at least until we see the full benefits of solid double-digit EPS growth (fuelled by Primark) come through."
Macquarie upgraded Vodafone to 'outperform' from 'neutral' and reiterated its 235p price target, saying the company was turning a corner.
"At last the operational outlook for Vodafone is constructive on a 12-18 months view. We believe the positive combination of European improving service revenue trends, growth returning to Europe, the end of Project Spring and a cost focus are likely to drive the share price."
Macquarie said that in a continued low interest rate environment and after the FX turmoil of the third quarter, the outlook is more constructive.
The Australian bank said its target reflects its outlook that Vodafone will be delivering 3.3% revenue growth in full-year 2015/16.
In the long term, Macquarie reckons capital intensity will be maintained at higher levels in order to sustain revenue growth, but said this will necessitate a change in the dividend policy.
Rather than the current 5.5% yield and 2% growth, it expects a move to 8p in full-year 2016/17 with a 3.9% yield, but with 5% growth thereafter.
Shares in Oxford Instruments fell sharply after Goldman Sachs downgraded the stock to 'neutral' from 'buy', noting it's trading close to the bank's unchanged 700p price target.
The brokerage said that since being added to the 'buy' list on 26 September 2012, the stock is down 49.4%, compared to the FTSE World Europe up 19.9%.
For full-year 2016, Goldman said it expects adjusted earnings before interest and tax of £43m, compared to Reuters consensus of £45m.
"Weak demand in both the nanotech tools and industrial products business have impacted the shares, and more recently signs of price pressure related to overcapacity in superconducting wire," it said. |
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