| | | | | 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.
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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 close: Stocks close higher as ECB leaves door open to more QE London stocks closed higher after earlier declines as the European Central Bank's president fuelled hopes of further stimulus.
Mario Draghi said the ECB will re-examine its quantitative easing programme in December and would consider extending €60bn monthly purchases past the planned 2016 September if needed.
Draghi also revealed that the ECB had discussed furthering lowering the deposit rate, which sent the euro below $1.12 for the first time since early October.
However, he said there was "no specific preference to one instrument or the other, they were all considered".
The president noted that falling commodity prices and concerns about emerging markets meant inflation pressures remained negative.
"We have tasked relevant committees to work on different monetary policies to monitor pros and cons of different instruments," he told journalists at a press conference following the ECB's announcement that it would keep policy unchanged.
As expected, the ECB decided to maintain interest rates, the deposit facility and the marginal lending facility unchanged at 0.05%, -0.20% and 0.30%, respectively.
"We believe the ECB could very well deliver on more Quantitative Easing in December," said Howard Archer, chief UK and European economist at IHS Global Insight.
Economic data
UK retail sales rose 6.5% year-on-year in September, well above analysts' expectations of 4.7%, according to the Office for National Statistics. Sales were boosted by promotions around the Rugby World Cup.
"Following a feeble performance in previous months, the renewed vigour in the pace of UK retail spending in September might help to stop overall GDP growth slowing too much in Q3," according to Capital Economics.
Figures from the European Commission showed consumer confidence fell more than expected in October. The report showed consumers in the 19-country bloc became less optimistic, as the index slid 0.6 points to -7.7. Analysts had expected a reading of -7.4.
Stateside the National Association of Realtors revealed existing home sales climbed 4.7% month-on-month to a seasonally-adjusted annual rate of 5.55m, compared with consensus for a reading of 5.37m.
The Department of Labor said US jobless claims rose by 3,000 to 259,000 in the week to 17 October, compared with analysts' expectations for a 265,000 reading.
Companies
Vodafone jumped after French peer Orange lifted its 2015 earnings forecast and posted third-quarter revenue that beat analysts' expectations. Sales at the telecom company were up 4.9% from the same period a year ago to €10.3bn.
Equipment rentals firm Ashtead got a boost from US peer United Rentals, which reported better-than-expected third-quarter results after the close on Wednesday.
Shares in engineering firm GKN advanced after its revenue for the nine months to 30 September beat analysts' expectations, rising a touch to £5.68bn from £5.62bn.
Travis Perkins slumped after the housebuilder warned that full-year EBITA will now be at the lower end of market expectations due to recent sector weakness.
Pearson was on the back foot for the second day in a row as JPMorgan Cazenove downgraded the stock to 'neutral' from 'overweight' and slashed the price target to 1,080p from 1,365p following the company's interim management statement on Wednesday.
Anglo American declined after saying it was postponing major project decisions at its platinum unit until at least 2017 and had cut diamond production due to soft demand.
Foxtons dropped after saying transactions in central London remained at a low level following recent strong price growth and stamp duty changes.
Debenhams gained after posting growth in annual pre-tax profit thanks to solid progress made against its strategic targets.
Ladbrokes raced higher as the bookmaker's third-quarter results met forecasts . |
| | 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) 6,380.65 0.51%
FTSE 250 (MCX) 17,035.30 -0.01%
techMARK (TASX) 3,054.14 0.74%
FTSE 100 - Risers
Glencore (GLEN) 117.45p 6.24%
Ashtead Group (AHT) 988.00p 4.00%
Vodafone Group (VOD) 216.20p 3.92%
GKN (GKN) 287.30p 3.38%
Antofagasta (ANTO) 562.50p 3.12%
Burberry Group (BRBY) 1,302.00p 2.76%
Admiral Group (ADM) 1,649.00p 2.55%
Standard Chartered (STAN) 739.30p 2.50%
London Stock Exchange Group (LSE) 2,494.00p 2.34%
Rio Tinto (RIO) 2,475.00p 2.02%
FTSE 100 - Fallers
Travis Perkins (TPK) 1,851.00p -5.71%
Pearson (PSON) 948.50p -5.01%
Kingfisher (KGF) 352.00p -3.93%
Smiths Group (SMIN) 985.50p -2.52%
Wolseley (WOS) 3,733.00p -1.81%
Rolls-Royce Holdings (RR.) 670.00p -1.69%
Hikma Pharmaceuticals (HIK) 2,017.00p -1.61%
HSBC Holdings (HSBA) 506.00p -1.33%
Anglo American (AAL) 596.60p -1.32%
Royal Dutch Shell 'B' (RDSB) 1,804.00p -1.20%
FTSE 250 - Risers
Zoopla Property Group (WI) (ZPLA) 255.00p 8.83%
Ladbrokes (LAD) 109.70p 8.51%
Evraz (EVR) 88.75p 7.12%
Nostrum Oil & Gas (NOG) 475.40p 5.81%
Kaz Minerals (KAZ) 124.10p 5.53%
Sophos Group (SOPH) 262.60p 5.38%
Drax Group (DRX) 282.80p 5.13%
Debenhams (DEB) 84.10p 3.64%
Inchcape (INCH) 789.00p 3.20%
Riverstone Energy Limited (RSE) 870.00p 3.20%
FTSE 250 - Fallers
SIG (SHI) 141.10p -20.95%
Foxtons Group (FOXT) 204.60p -7.63%
Senior (SNR) 241.50p -7.47%
Howden Joinery Group (HWDN) 445.10p -5.32%
Home Retail Group (HOME) 119.80p -4.92%
Grafton Group Units (GFTU) 662.50p -4.06%
Countrywide (CWD) 466.30p -4.03%
Galliford Try (GFRD) 1,504.00p -3.71%
Dignity (DTY) 2,230.00p -3.59%
Hays (HAS) 136.50p -2.57% |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Equities push firmly higher as ECB hints to more stimulus European stocks rallied on Thursday, after European Central Bank President Mario Draghi hinted that more economic stimulus was on the way.
The benchmark Stoxx Europe 600 index closed up 2.02%, while Germany's DAX surged 2.48% higher and France's CAC rose 2.28%
As of 1630 BST, the euro plunged 1.70% against both the dollar and the pound and lost 1.23% against the yen, while Brent crude gained 0.87% to $48.27 a barrel.
ECB opens door to more stimulus
The European Central Bank will re-examine its asset-purchase programme in December, President Mario Draghi said on Thursday.
Draghi reiterated that the ECB was monitoring risks to the economy and would consider extending the monthly €60bn quantitative easing programme past the planned 2016 September if needed.
The president noted that falling commodity prices and concerns about emerging markets meant inflation pressures remained negative.
"We have tasked relevant committees to work on different monetary policies to monitor pros and cons of different instruments," he told journalists at a press conference following the ECB's announcement that it would keep policy unchanged.
Draghi also revealed that the ECB had discussed furthering lowering the deposit rate, which sent the euro below $1.12 for the first time since early October.
"With 'emerging markets' commodity prices and inflation leading a line of reasons for a more accommodative stance, Draghi made it clear there is an appetite among the committee to push the boat out," said IG's market analyst Joshua Mahony.
"December certainly seems the most likely time for Eurozone monetary policy to be ramped up, when the ECB has to determine whether to raise the rate of purchases from the current €60bn per month, cut the deposit rate yet further, or else push back the end date beyond the current September 2016 deadline."
Earnings in focus
In company news, Danish enzyme maker Novozymes surged 10.8% after its third-quarter earnings came in a touch higher than consensus expectations.
Shares in Eurotunnel advanced 4.38% as it posted a jump in third-quarter revenue despite pressure from the migrant crisis.
Orange rallied 7.54% after the telecoms operator reported a 3% rise in third-quarter revenue.
Spirits maker Pernod Ricard gained 5.22% after it said sales in the third quarter were up 3% on last year. Akzo Nobel was 5.28% higher after the Dutch paint and chemicals maker posted a 39% increase in third-quarter net profit.
Swiss pharmaceutical company Roche climbed 3.04% after lifting its full-year outlook and reporting a rise in third-quarter sales.
On the downside, French advertising group Publicis tumbled 7.03% as it cut its full-year sales outlook.
On the economic data front, Eurozone consumer confidence declined from -7.1 to -7.7 in October compared with analysts' expectations for -7.4 reading.
Across the Atlantic, the Department of Labor said new unemployment claims rose by 3,000 to 259,000 in the week to 17 October, compared with analysts' expectations for a 265,000 reading. |
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| | US Market Report | | US open: Stocks surge amid strong earnings and prospect of ECB stimulus US stocks looked poised to break a three-day losing streak on Thursday, as investors analysed a number of corporate earnings and were buoyed by news from across the Atlantic.
Shortly before 1500 BST, the Dow Jones Industrial Average was up 123 points to 17,292.37, while the S&P 500 and the Nasdaq were 14 and 40 points higher respectively.
Earnings in focus
Dunkin' Brands, which reported ahead of the bell, slid 0.7% despite posting a rise in third quarter revenue and adjusted earnings per share from a year ago.
Construction and mining equipment manufacturer Caterpillar climbed 0.80% even though its earnings missed forecast and the company revealed it expects to book $800m in restructuring costs.
Natural resource company Freeport-McMoran rose 1.71% despite swinging to a quarterly loss, while McDonald's surged 7.38% after its third quarter earnings beat estimates.
Under Armour slid 0.46% despite posting better-than-expected quarterly earnings.
After the market closes,Microsoft, Capital One Financial, Amazon and Google spin-off Alphabet are all scheduled to report.
In other company news, eBay jumped 8.88% after reporting better-than-expected earnings late on Wednesday, while Texas Instruments rose 7.90% after its quarterly profit and revenue beat expectations.
Unemployment claims rise for first time in three weeks
According to the Department of Labor, new claims rose by 3,000 to 259,000 in the week to 17 October, compared with analysts' expectations for a 265,000 reading.
Meanwhile, the average of new claims over the last four weeks fell by 2,000 to a seasonally adjusted 263,250, marking its lowest level since December 1973, the report added.
"We take positive signal from declining labor market separations, which suggest US labor market strength remains intact," analysts at Barclays said.
Still to come on the data front, a report on existing home sales for September is scheduled for release at 1500 BST.
Elsewhere, Asian stocks struggled for direction, as concerns over the health of the Chinese economy continued to worry investors, while European stocks surged after European Central Bank president Mario Draghi revealed more stimulus was on the way.
"We have tasked relevant committees to work on different monetary policies to monitor pros and cons of different instruments," he told journalists at a press conference following the ECB's announcement that it would keep policy unchanged.
"There was a very rich discussion about all monetary instruments that might be used... and the conclusion was: we are ready to act if needed."
The dollar was broadly flat against the pound and gained 0.22% against the yen, surging 1.36% against the euro, while gold futures edged 0.22% lower to $1,164.60. |
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| | Broker Tips | | Broker tips: Pearson, Lonmin Education group Pearson was under the cosh for the second day in a row as JPMorgan Cazenove downgraded the stock to 'neutral' from 'overweight' and slashed the price target to 1,080p from 1,365p following the company's interim management statement on Wednesday.
JPM attributed the downgrade to weaker industry trends and low visibility in trends.
It said the announcement on Wednesday highlighted three incremental concerns: lower-than-expected US community college enrolments, higher returns from US book retailers and lower-than-expected textbook sales in South Africa.
The bank cut its 2015 earnings per share estimate to 70p from 73.6p and its 2015 estimate to 63.3p from 71p.
"We expect a wide consensus earnings range for 2016, and think improving and consistent underlying growth trends are needed for the shares to outperform," it said.
Still, the bank said the nine-month announcement from Pearson does not change its view regarding the potential long-term growth opportunity in education, including the potential for the company to sell more products/services to more customers.
JPMorgan Cazenove upgraded Lonmin to 'overweight' from 'neutral' and lifted the price target to 35p from 30p following the company's announcement on Wednesday of a rights issue and debt restructuring.
"Lonmin disclosed a revised business plan and funding strategy with its full-year 2015 trading update that should see the group survive low platinum group metal prices over the ensuing three financial years at least, in our view.
"Essentially, the group must address a liquidity crunch to see it benefit from higher PGM prices we see from 2017."
The bank said that assuming the proposed $400m rights issue is successful and the company secures amended debt facilities as planned, the stock is undervalued on its base-case numbers. |
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