| | | | | | | | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London close: Stocks end higher despite negative services data UK stocks gained as the market proved resilient against a batch of negative services data on hopes the Federal Reserve will keep interest rates unchanged for longer.
The Markit/CIPS UK services purchasing managers' index fell to 53.3 in September from 55.6 in August, compared to analysts' estimates for a reading of 56. While it remained above the 50 level that separates expansion from contraction, it marked the third month of declines and the weakest rate of growth since April 2013.
"While the weak tone of the Markit/CIPS services survey in September brought more evidence of a soft end to the third quarter, we doubt that the economy is on the cusp of a renewed slowdown," according to Capital Economics.
In the Eurozone, the final Markit PMI composite output index fell from 54.3 to 53.6 in September, below the 'flash' estimate of 53.9 posted last month, as the average rate of expansion failed to pick up pace in the third quarter.
Eurozone retail sales were unchanged in August, according to Eurostat, compared with analysts' expectations for a 0.1% decline month-on-month, while July's rate was revised up from 0.4% to 0.6%.
Elsewhere in the euro-area, Greece was set to unveil a 2016 draft to satisfy international creditors. In July Greece agreed with its creditors to implement spending cuts and economic reforms in exchange for an €86bn bailout.
Across the Atlantic, the Institute for Supply Management revealed its services index declined from 59.0 in August to 56.9 last month, falling below the 57.5 reading analysts had expected.
Separately, the seasonally adjusted Markit US services PMI fell from 56.1 to 55.1 compared with the 55.6 flash estimate published last week.
The weak data follow's last Friday's worse-than-forecast US non-farm payrolls, which pushed back expectations for an interest rate hike.
"With inconclusive economic data in recent weeks, the Fed is now split on the timing of an interest rate rise," said Dennis de Jong, managing director at UFX.com. "That situation is unlikely to change in response to today's non-manufacturing figures, which aren't strong enough to sway Janet Yellen and Co. towards a clear decision."
Among corporate stocks, Glencore surged on reports the struggling mining company is in talks to sell its agricultural business. Singapore´s sovereign wealth fund, Japanese trading house Mitsui & Co. and a Canadian pension fund are among the parties who had expressed an interest in the unit, Bloomberg reported. In another boost to the stock, head of Glencore Ivan Glasenberg on Monday said he believes copper prices should rise as more companies cut back mine production, Bloomberg reported.
Lloyds Banking Group rallied on news the government will start offering portions of its stake in the lender to private investors in spring 2016.
Oil producers including Royal Dutch Shell, BP and BG Group, jumped as Brent and West Texas Intermediate crude rose 3.2% to $49.77 per barrel and 2.6% to $46.79 per barrel, respectively. "Oil has jumped as tension in the Middle East are rising as Russia is backing the President in Syria. As the violence continues oil will keep climbing higher," said IG analyst David Madden. Russia's oil minister Alexander Novak on Saturday said the nation is ready to meet with OPEC to discuss the situation facing oil producers.
Rolls Royce advanced after announcing plans to cut another 400 jobs in its marine business on top of the 600 job cuts already announced in May
Kaz Minerals shot higher as copper prices added 1% either side of the Pond.
Allied Minds posted healthy gains after saying its subsidiary, Precision Biopsy, has raised $33.6m to accelerate the commercial expansion of its ClariCore biopsy system.
Playtech was the standout loser after the company said it has received a letter from the Central Bank of Ireland opposing the proposed takeover of Ava Trade. |
| | How Can You Profit From The Low Price Of Oil? | | With oil prices at almost six year low, how low can it go!
Get your report now |
| | Market Movers
techMARK 3,079.94 +2.06%
FTSE 100 6,287.73 +2.57%
FTSE 250 17,096.93 +1.79%
FTSE 100 - Risers
Glencore (GLEN) 110.90p +16.74%
Standard Chartered (STAN) 706.40p +5.95%
Antofagasta (ANTO) 536.50p +5.30%
Aberdeen Asset Management (ADN) 322.20p +5.12%
Royal Dutch Shell 'A' (RDSA) 1,686.00p +4.85%
Royal Dutch Shell 'B' (RDSB) 1,700.50p +4.84%
St James's Place (STJ) 897.50p +4.73%
Anglo American (AAL) 579.40p +4.66%
BG Group (BG.) 1,033.00p +4.58%
BP (BP.) 367.00p +4.42%
FTSE 100 - Fallers
National Grid (NG.) 931.40p -0.06%
FTSE 250 - Risers
Kaz Minerals (KAZ) 104.20p +13.57%
Premier Oil (PMO) 78.75p +11.86%
AL Noor Hospitals Group (ANH) 933.00p +9.25%
Petra Diamonds Ltd.(DI) (PDL) 94.00p +8.48%
Tullow Oil (TLW) 208.50p +8.14%
Petrofac Ltd. (PFC) 792.50p +6.81%
Weir Group (WEIR) 1,299.00p +6.13%
Aggreko (AGK) 1,017.00p +5.55%
Cairn Energy (CNE) 154.80p +5.23%
Ashmore Group (ASHM) 267.80p +5.23%
FTSE 250 - Fallers
Playtech (PTEC) 807.50p -2.48%
Tate & Lyle (TATE) 580.50p -1.28%
Clarkson (CKN) 2,258.00p -1.01%
Bank of Georgia Holdings (BGEO) 1,813.00p -0.82%
Nostrum Oil & Gas (NOG) 523.00p -0.76%
Ted Baker (TED) 3,266.00p -0.73%
B&M European Value Retail S.A. (DI) (BME) 334.50p -0.71%
Telecom Plus (TEP) 1,083.00p -0.64%
Acacia Mining (ACA) 261.60p -0.57%
Dignity (DTY) 2,391.00p -0.46%
FTSE TechMARK - Risers
Oxford Instruments (OXIG) 604.50p +6.71%
Filtronic (FTC) 6.88p +5.77%
E2V Technologies (E2V) 233.50p +3.09%
XP Power Ltd. (DI) (XPP) 1,662.00p +2.28%
KCOM Group (KCOM) 91.50p +1.10%
Spirent Communications (SPT) 76.25p +0.99%
Ricardo (RCDO) 893.50p +0.96%
Gresham Computing (GHT) 110.00p +0.92%
Innovation Group (TIG) 39.50p +0.64%
Consort Medical (CSRT) 933.00p +0.48%
FTSE TechMARK - Fallers
Triad Group (TRD) 31.00p -3.12%
RM (RM.) 162.25p -2.84%
Oxford Biomedica (OXB) 7.75p -1.77%
Dialight (DIA) 664.50p -1.63%
BATM Advanced Communications Ltd. (BVC) 19.75p -1.25%
IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 203.50 -0.27%
NCC Group (NCC) 276.75p -0.27%
Sepura (SEPU) 173.75p -0.14%
Skyepharma (SKP) 344.75p -0.07% |
| | Get Paid For Your Trading Expertise | | Run a community of subscribers to your portfolio and monetise your knowledge.
Sign Up for your Free Account Now |
| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Equity markets rally as oil and gas stocks lead the way European stocks rallied on Monday, as a surge in oil and gas and basic resources stocks offset disappointing economic data from the US.
The benchmark Stoxx Europe 600 index closed up 2.94%, while Germany's DAX rose 2.74% and France's CAC 40 jumped 3.54%.
The euro was broadly flat against the pound and the dollar but gained 0.13% against the yen, while Brent crude rose 2.55% to $49.39 a barrel.
"The Fed and Bank of England on hold at zero rates and pressure on the European Central Bank to consider more stimulus has been, on balance, enough to outweigh growth fears," said CMC Markets' analyst Jasper Lawler.
On the data front, figures from Markit showed the Eurozone economy continued to grow in September, although the rate of expansion eased to a four-month low.
The final Markit purchasing managers' index composite output index fell from 54.3 to 53.6 in September, below the 'flash' estimate of 53.9 posted last month, as the average rate of expansion failed to pick up pace in the third quarter.
Meanwhile, figures released by Eurostat showed retail sales in the euro bloc were flat in August, compared with analysts' expectations for a 0.1% decline month-on-month. July's rate was revised up from 0.4% to 0.6%.
Elsewhere, data released by German think tank Sentix showed investor confidence in the bloc fell to an eight-month low in October.
Across the Atlantic, the Institute for Supply Management revealed its services index declined from 59.0 in August to 56.9 last month, falling below the 57.5 reading analysts had expected.
"The September survey data show that US service sector growth has moderated in the recent months but remains solid," analysts at Barclays said.
Energy stocks surge
In company news, ArcelorMittal rallied 8.65% after Citigroup upped the stock to 'buy' from 'sell', while Rio Tinto and Glencore also benefited from a bullish note by Societe Generale.
The latter jumped 21%, tracking a surge in its Hong-Kong-listed shares, amid media reports of healthy interest in the company's agricultural business.
Singapore´s sovereign wealth fund, Japanese trading house Mitsui&Co. and a Canadian pension fund were among the parties who had expressed an interest in the unit, according to Bloomberg. |
| | When Can You Retire? | | If you have £250,000, download the guide for retirees written by Forbes columnist and money manager Ken Fisher's firm. Even if you have something else in place, this must-read guide includes research and analysis you can user right now. Don't miss it! |
| | US Market Report | | US stock futures pointed to a positive open on Monday, with investors buoyed by strong performances by equity markets worldwide.
The Dow Jones Industrial Average is expected to open up approximately 84 points, while the S&P 500 and the Nasdaq are set to begin the first session of the week 10 and 26 points higher respectively.
Asian and European markets rally
Asian equity markets advanced, led higher by expectations the Chinese government will implement further stimulus measures, while European stocks were firmly in the black.
On Friday, Wall Street brushed off a largely disappointing non-farm payrolls report, which all but ruled out an October interest rates hike by the Federal Reserve.
"The prospect of a longer period of low interest rates and perhaps a lower dollar would be a boon for US multinationals who have seen revenues drop thanks to a strengthening of the dollar in the past year," said Jasper Lawler, analyst at CMC Markets.
However, Boston Fed President Eric Rosengren said the US central bank still had a case to raise interest rates this year, despite a "weak" employment report for September.
"If this is an anomalous report, then, if the data came in sufficiently, I would be comfortable possibly raising rates by the end of the year," he said.
Monday data
On the economic data front, at 1445 BST, investors will analyse the final reading for September's Markit composite and services purchasing managers' index.
The highlight of the session comes shortly after, with the ISM non-manufacturing composite reading for September on tap at 1500 BST, with the labour market conditions index change for September out at the same time.
"Though the markets did eventually fall in the face of last Thursday's weak manufacturing PMIs, it wasn't until the US figure was revealed that the decline actually set in, something that could happen again if America joins the rest of the world with its own disappointing services data," said Spreadex's financial analyst Connor Campbell.
In company news, American Apparel tumbled 6.34% in pre-market trading after the company filed for bankruptcy earlier on Monday.
General Electric gained 2.75% ahead of the bell, after activist shareholder Nelson Peltz's Trian Fund Management LP said it has accumulated a 1% stake in the group, for a total value of approximately $2.5bn.
Elsewhere, the dollar lost 0.24% against the euro but gained 0.15% against the yen and was broadly flat against the pound, while gold futures slid 0.44% to $1,133.64.
Oil prices rose, with West Texas Intermediate gaining 0.89% to $45.95 a barrel, while Brent advanced 1.11% to $48.67 a barrel. |
| | 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 |
| | Broker Tips | | Broker tips: Barclays, Lloyds, Rio Tinto, Glencore, BHP Billiton The FCA´s move on Friday to draw a line under the Payment Protection Insurance scandal is positive overall for the industry, with Lloyds likely to be the most favourably impacted, followed by Barclays, according to JP Morgan.
Furthermore, analysts Raul Sinha and Vivek Gautam highlight the market regulator´s indications that the rules and guidance arising from the Supreme Court´s decision on the Plevin case will only apply in cases where the payments within the credit agreement are on or after 6 April.
That means the impact of the decision, in the case of Lloyds , for example, will be small - approximately 1.2bn pounds - in the context of the issue (13bn pounds).
Sinha and Gautam maintained their overweight stance in the wake of the announcement.
The UK government confirmed it would continue to forge ahead with the re-privatisation of Lloyds via a retail sale of at least 2bn pounds in spring 2016, news which should please investors, Investec said.
That amount is slightly less than expected. Nonetheless, the government has already reduced its stake in Lloyd´s from 43% in 2009 to 12% at present so its plans appear "well on track".
Indeed, the manner in which the "drip" of the disposal is proceeding shows the state is intent on moving ahead quickly.
As an inducement, the government will offer a 5% discount to the market price and a 1-for-10 bonus share for 12-month retention.
One small advantage of those perks is that it is attracting "new money" to the re-privatisation of the lender, Investec analyst Ian Gordon pointed out.
Finally, the FCA´s consultation on the possibility of a time-bar for final submission of PPI-related complaints should be cautiously welcomed, Gordon added.
The analyst reaffirmed his 'buy' recommendation and 86p target on the lender´s shares.
Societe Generale reviewed its ratings on Rio Tinto, Glencore and BHP Billiton as it took a look at the metals and mining sector, which it rates at 'neutral'.
The bank lifted Rio Tinto to 'buy' from 'hold', albeit with a lower price target of 2,450p from 3,100p. It said the shares combined cash flow and balance-sheet resilience with an attractive valuation in both a spot and SocGen base-case scenario.
SocGen said iron ore has proven more resilient than it expected, with prices solidly anchored at $55 a tonne against market expectations of a crash below $50.
It upgraded Glencore to 'buy' from 'hold', saying fears of bankruptcy are overblown and the stock is undervalued. It cut the price target to 130p from 175p. |
| | 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 advertise@advfn.com |
| | | | | | | 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