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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 decline after FOMC hints at December rate hike UK stocks declined on Thursday after the Federal Reserve hinted at the possibility of a December interest rate hike.
The Fed decided to keep interest rates unchanged on Wednesday at 0.25%, as expected by analysts, but left the door open to an increase in December.
The US central bank downplayed global economic headwinds in its statement on the decision, which was made after a two-day policy meeting, saying that it was monitoring developments abroad.
"We see this statement as a clear attempt by the FOMC to keep December on the table," analysts at Barclays said.
"In some sense, any softer of a statement would likely have pushed December out of consideration as the Fed would likely be hesitant to raise rates with very low market-implied probabilities of policy action."
Investors are now turning their attention to the release of US gross domestic product data at 1230 GMT which is expected to show a slowdown to an annualised 1.6% in the third quarter from 3.9% the previous quarter.
US personal consumption expenditure will also be released at the same time with analysts predicting a 1.4% quarter-on-quarter increase in the third quarter.
Pending US home sales will come at 1400 GMT. Economists predict a 7.4% rise in September after a 6.7% gain the previous month.
On this side of the pond, Nationwide revealed UK house prices rose 3.9% in the year to October, compared to expectations for a 3.8% gain in line with the previous month. Compared to a month ago, prices rose 0.6% in October, more than the 0.5% estimated.
At 0930 GMT net consumer credit and mortgage approvals reports are due in the UK.
German unemployment fell 5,000 in October, more than the 4,000 that was forecast following a revised 1,000 increase in September, Destatis revealed. The unemployment rate remained at 6.4%, as expected.
German inflation figures at 1300 GMT are expected to show an improvement in October, with analysts seeing a 0.1% month-on-month dip compared to the prior month's 0.2% fall. Year-on-year the consumer price index may have risen 0.2% in October following after zero growth in September, analysts estimate.
On the company front, Smith & Nephew was a top faller after posting a drop in third quarter reported revenue on currency headwinds and announcing the acquisition of robotics company Blue Belt Technologies.
Aviva jumped after Panmure Gordon reiterated its 'buy' rating on the insurer and the company reported a 25% increase in new business.
Barclays slumped after reporting a drop in third-quarter pre-tax profit as the cost of claims settlements weighed on results and revenues fell.
BT Group dipped after reporting a drop in operating profit in the second quarter due to the telecoms company's diversification into media and investing in sports broadcasting.
Playtech rallied after the gambling, software and services supplier reported strong trading in both of its divisions in the three months to September. |
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| Market Movers
FTSE 100 (UKX) 6,385.61 -0.81%
FTSE 250 (MCX) 17,098.82 -0.26%
techMARK (TASX) 3,081.83 -0.85%
FTSE 100 - Risers
Aviva (AV.) 484.50p 1.06%
Merlin Entertainments (MERL) 404.60p 1.05%
Hikma Pharmaceuticals (HIK) 2,127.00p 0.95%
Carnival (CCL) 3,631.00p 0.86%
InterContinental Hotels Group (IHG) 2,572.00p 0.74%
Associated British Foods (ABF) 3,495.00p 0.72%
St James's Place (STJ) 965.00p 0.68%
TUI AG Reg Shs (DI) (TUI) 1,211.00p 0.67%
Reckitt Benckiser Group (RB.) 6,388.00p 0.60%
Diageo (DGE) 1,880.00p 0.56%
FTSE 100 - Fallers
Smith & Nephew (SN.) 1,081.00p -6.00%
BHP Billiton (BLT) 1,045.00p -4.74%
Anglo American (AAL) 536.40p -4.72%
Randgold Resources Ltd. (RRS) 4,478.00p -4.44%
Meggitt (MGGT) 351.60p -4.20%
Fresnillo (FRES) 737.50p -3.97%
Barclays (BARC) 243.30p -3.89%
Antofagasta (ANTO) 516.50p -3.73%
Rio Tinto (RIO) 2,335.00p -3.31%
Glencore (GLEN) 111.95p -3.03%
FTSE 250 - Risers
Playtech (PTEC) 820.00p 3.47%
AO World (AO.) 164.30p 2.69%
Henderson Group (HGG) 286.50p 1.63%
Just Retirement Group (JRG) 170.60p 1.55%
Jimmy Choo (CHOO) 144.00p 1.41%
Booker Group (BOK) 187.40p 1.30%
P2P Global Investments C (P2P2) 982.00p 1.24%
Ocado Group (OCDO) 364.30p 1.22%
Euromoney Institutional Investor (ERM) 955.50p 1.11%
Worldwide Healthcare Trust (WWH) 1,819.00p 1.06%
FTSE 250 - Fallers
Kaz Minerals (KAZ) 113.20p -5.35%
Millennium & Copthorne Hotels (MLC) 487.70p -5.30%
Premier Oil (PMO) 69.20p -5.08%
Pace (PIC) 366.70p -4.31%
Vedanta Resources (VED) 479.50p -4.04%
Nostrum Oil & Gas (NOG) 436.70p -3.79%
Evraz (EVR) 80.40p -3.71%
Centamin (DI) (CEY) 66.90p -2.90%
Acacia Mining (ACA) 200.00p -2.77% |
| | UK Event Calendar | | Thursday 29 October
INTERIMS
BT Group
INTERIM DIVIDEND PAYMENT DATE
BBGI SICAV S.A. (DI), Capital & Regional, Stilo International, TT Electronics
INTERIM EX-DIVIDEND DATE
Booker Group, Development Securities, Exova Group , Goals Soccer Centres, Hilton Food Group, ITV, Lombard Risk Management, Lookers, M&C Saatchi, Maven Income & Growth VCT, Moss Bros Group, Provident Financial, Quantum Pharma, TLA Worldwide
QUARTERLY EX-DIVIDEND DATE
Unilever
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Business Climate Indicator (EU) (10:00)
Continuing Claims (US) (13:30)
Economic Sentiment Indicator (EU) (10:00)
GDP (Advance) (US) (13:30)
Initial Jobless Claims (US) (13:30)
Pending Homes Sales (US) (15:00)
Unemployment Rate (GER) (08:55)
Q2
BT Group
Q3
COLT Group SA, Millennium & Copthorne Hotels, Royal Dutch Shell 'A', Royal Dutch Shell 'A', Royal Dutch Shell 'B', Royal Dutch Shell 'B', Samsung Electronics Co Ltd (ATT) GDR (Reg S), Smith & Nephew
GMS
Stanley Gibbons Group
FINALS
Matchtech Group
ANNUAL REPORT
Petra Diamonds Ltd.(DI)
IMSS
Aviva, Barclays, COLT Group SA, Henderson Group, Kaz Minerals , Laird, National Express Group
SPECIAL EX-DIVIDEND PAYMENT DATE
Barratt Developments
EGMS
Datang International Power Generation Co Ltd., Fondul Proprietatea S.A. GDR (Reg S), Societatea Nationala De Gaze Naturale Romgaz S.A. GDR (Reg S)
AGMS
Atlas Development & Support Services Limited , Genesis Emerging Markets Fund Ltd Ptg NPV, Goldplat, Ideagen, Mirada, Murgitroyd Group, Redde, Seeing Machines Ltd.
TRADING ANNOUNCEMENTS
Laird, Playtech
UK ECONOMIC ANNOUNCEMENTS
CBI Distributive Trades Surveys (11:00)
Consumer Credit (09:30)
M4 Money Supply (09:30)
M4 Sterling Lending (09:30)
Mortgage Approvals (09:30)
FINAL DIVIDEND PAYMENT DATE
Standard Life UK Smaller Companies Trust
FINAL EX-DIVIDEND DATE
AIREA, Barratt Developments, Dechra Pharmaceuticals, El Oro Ltd, Fidelity Asian Values, Go-Ahead Group, Ideagen, Mulberry Group, NWF Group |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks static as investors digest hawkish Fed statement European stocks were little changed in early trade amid a slew of corporate results, as investors digested a hawkish policy statement from the Federal Reserve and looked ahead to some key US data releases.
At 0900 GMT, the benchmark Stoxx Europe 600 and Germany's DAX were up 0.1%, while France's CAC was 0.3% weaker.
The Fed stood pat on interest rates on Wednesday as widely expected, but the accompanying statement suggested a rate hike in December may be on the cards.
"The FOMC left the door ajar. If markets don't tighten financial conditions for them, if the US data remain firm, if global events don't scare them and if the sun shines every day, the Fed will raise rates at their December meeting," said Societe Generale strategist Kit Juckes.
"All those caveats leave the market pricing the odds of a move at close to 50%, and the focus switches immediately to data-watching. Today that means jobless claims and 3Q GDP."
In corporate news, Barclays was in the red after it posted a drop in third-quarter pre-tax profit as the cost of claims settlements weighed on results and revenues fell. The company paid out £560m in compensation to customers who had been missold foreign exchange products and to settle claims over US mortgage-backed securities.
Deutsche Bank fell after saying it will scrap its 2015 and 2016 dividends as it looks to boost capital.
Smith & Nephew, a maker of artificial hips and knees, fell sharply in early trade. The company posted a small increase in underlying third-quarter revenue, maintained its full-year guidance and announced the acquisition of robotics company Blue Belt Technologies. Reported revenue, however, was down 4% due to currency headwinds.
Royal Dutch Shell slipped after the company slumped to a third-quarter loss of $6.1bn (£4bn), with earnings well short of forecasts.
BT Group was also on the back foot after posting a drop in second-quarter operating profit.
On the upside, UK insurer Aviva advanced after saying the value of its new business rose 25% in the first nine months of the year to £823m, marking the eleventh consecutive quarter of growth. |
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| | US Market Report | | US close: Stocks rally as Fed hints at possible rate hike in December US stocks rallied on Wednesday, after the Federal Reserve signalled its intention to keep interest rates unchanged but hinted a hike would be possible at the December meeting.
The Dow Jones Industrial Average closed up 198 points to 17,779.52, while the S&P 500 and the Nasdaq closed 24 and 39 points higher respectively.
The Fed opted to keep interest rates unchanged at 0.25%, as most analysts' expected, and left the door open to an increase in December.
The US central bank downplayed global economic headwinds in its statement on the decision, which was made after a two-day policy meeting, saying that it was monitoring developments abroad.
"We see this statement as a clear attempt by the FOMC to keep December on the table," analysts at Barclays said.
"In some sense, any softer of a statement would likely have pushed December out of consideration as the Fed would likely be hesitant to raise rates with very low market-implied probabilities of policy action."
Trade gap narrows
On the economic data front, the US trade gap in goods narrowed more than expected in September to reach a seven-month low, figures released on Wednesday showed.
According to official government data, the trade gap in goods, excluding services, declined 13% month-on-month to $58.6bn compared with analyst expectations for a $64.3bn figure.
"We continue to see a large drag from private inventory investment as trimming headline growth, but with a smaller drag from net trade and more modest equipment investment, the composition of third quarter GDP is likely to be more balanced," said analysts at Barclays.
Meanwhile, the Mortgage Bankers Association said its seasonally-adjusted index of application activity, which covers home purchase demand and refinancing demand, declined 3.5% in the week ended 23 October.
Apple gains, Twitter disappoints
In company news, Apple climbed 4.12% after the iPhone and iPad maker said late on Tuesday that its fourth quarter profit surged 31%.
"Regardless of the worries markets might have about Chinese growth this has not negatively affected sales of iPhones to the Asian powerhouse as once again Apple have been able to post much better figures that had been expected," said IG's senior market analyst Alastair McCaig.
There was less positive news for Twitter, however, with the social media giant sliding 1.50% after delivering a lower-than-expected outlook late on Tuesday, when it also reported its active user growth was smaller than expected.
Akamai Technologies slumped 16.7% after its quarterly results missed expectations, while chocolate maker Hershey had bitter news for investors, as it reported a 31% drop in earnings ahead of the bell, which dragged shares down 4.07%.
Newly-listed Ferrari fell 4.09% despite reporting a rise in profit and revenue, while Walgreens Boots Alliance tumbled 10.7%, despite swinging to a profit in the fourth quarter, as earnings beat forecast.
Sector peer Rite Aid dropped 7.04% after agreeing to a takeover from Walgreens worth $17.2bn in cash.
The majority of Asian stocks were firmly in the red on Wednesday, while European stocks rebounded from the previous session's dip and were mostly higher.
The dollar rose 1.044% against the euro and gained 0.33% and 0.57% against the pound and the yen respectively, while gold futures declined 0.84% to $1,157.05.
Oil prices surged, with West Texas Intermediate climbing 6.03% to $45.97 a barrel and Brent crude rising 4.59% to $49.05 a barrel.
S&P 500 - Risers
Genworth Financial Inc. (GNW) $5.27 +10.25%
L-3 Communications Holdings Inc. (LLL) $125.63 +9.67%
Boston Scientific Corp. (BSX) $18.40 +9.39%
CBRE Group Inc (CBG) $37.59 +8.99%
Fluor Corp. (FLR) $47.21 +7.35%
Tenet Healthcare Corp. (THC) $31.84 +7.28%
Starwood Hotels & Resorts Worldwide Inc. (HOT) $79.56 +6.35%
Total System Services Inc. (TSS) $54.73 +5.96%
Noble Energy Inc. (NBL) $34.84 +5.64%
Northrop Grumman Corp. (NOC) $190.45 +5.45%
S&P 500 - Fallers
Akamai Technologies Inc. (AKAM) $62.82 -16.85%
Verisk Analytics Inc. (VRSK) $72.62 -9.60%
Hershey Foods Corp. (HSY) $88.25 -6.45%
Edison International (EIX) $61.22 -4.91%
Owens-Illinois Inc. (OI) $21.75 -4.02%
FLIR Systems Inc. (FLIR) $26.01 -3.67%
CH Robinson Worldwide Inc (CHRW) $68.01 -2.83%
Automatic Data Processing Inc. (ADP) $87.91 -2.68%
PPL Corp. (PPL) $33.40 -2.62%
Gilead Sciences Inc. (GILD) $108.13 -2.55%
Dow Jones I.A - Risers
Apple Inc. (AAPL) $119.28 +4.13%
Merck & Co. Inc. (MRK) $55.11 +3.07%
JP Morgan Chase & Co. (JPM) $65.49 +2.91%
Goldman Sachs Group Inc. (GS) $191.36 +2.71%
Chevron Corp. (CVX) $89.78 +2.37%
Caterpillar Inc. (CAT) $71.97 +2.24%
International Business Machines Corp. (IBM) $140.82 +2.15%
E.I. du Pont de Nemours and Co. (DD) $63.37 +2.13%
Visa Inc. (V) $78.86 +1.73%
Exxon Mobil Corp. (XOM) $82.25 +1.43%
Dow Jones I.A - Fallers
Procter & Gamble Co. (PG) $76.49 -1.04%
Home Depot Inc. (HD) $123.86 -0.49%
Boeing Co. (BA) $147.88 -0.39%
General Electric Co. (GE) $29.40 -0.20%
Nasdaq 100 - Risers
PACCAR Inc. (PCAR) $53.73 +4.94%
Avago Technologies Ltd. (AVGO) $127.09 +4.61%
Wynn Resorts Ltd. (WYNN) $67.32 +4.28%
Apple Inc. (AAPL) $119.28 +4.13%
Vimpelcom Ltd Ads (VIP) $4.05 +3.85%
Broadcom Corp. (BRCM) $52.65 +3.17%
Dish Network Corp. (DISH) $63.64 +2.88%
Discovery Communications Inc. Class C (DISCK) $27.68 +2.75%
Biomarin Pharmaceutical Inc. (BMRN) $113.69 +2.69%
Netflix Inc. (NFLX) $105.80 +2.65%
Nasdaq 100 - Fallers
Akamai Technologies Inc. (AKAM) $62.82 -16.85%
Walgreens Boots Alliance, Inc. (WBA) $84.95 -10.73%
Verisk Analytics Inc. (VRSK) $72.62 -9.60%
CH Robinson Worldwide Inc (CHRW) $68.01 -2.83%
Automatic Data Processing Inc. (ADP) $87.91 -2.68%
Gilead Sciences Inc. (GILD) $108.13 -2.55%
Expeditors International Of Washington Inc. (EXPD) $49.45 -2.00%
American Airlines Group (AAL) $45.85 -1.31%
Baidu Inc. (BIDU) $172.54 -0.76% |
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| | Newspaper Round Up | | Thursday newspaper round-up: Pfizer, Brexit, BBC, women on FTSE boards Pfizer has held preliminary talks about taking over Allergan, in a deal that would create the world's largest drugmaker with a market capitalisation of more than $300bn, according to two people familiar with the situation. Ian Read, Pfizer's chief executive, recently contacted his counterpart at Allergan, Brent Saunders, the people said, although they cautioned the discussions were still at a very early stage. - Financial Times
A British exit from the EU would see it lose its chance to strike a preferential trade relationship with the US, and leave it facing the same tariffs and other restrictions as emerging economies such as Brazil, China and India, the top US trade official has warned. Advocates of a "Brexit" - over which the UK is due to vote by the end of 2017 - have argued that were the UK to leave the EU it could negotiate its own trade agreements with the US and other major trading partners. - Financial Times
Living standards in Britain have finally returned to pre-recession levels because of the rising incomes of the nation's retirees, the Office for National Statistics (ONS) has said. The latest snapshot of household incomes showed that, more than seven years after the financial crisis, the losses suffered in the most severe downturn of the modern age had finally been recouped. - Guardian
The BBC has been accused by ITV of breaking promises it would not chase ratings and failing to justify its £3.7bn in public funding by relying on jaded formats such as Bargain Hunt. Britain's biggest commercial broadcaster has waded into the debate over the future of the licence with a fierce attack on BBC One's alleged lack of distinctiveness and growing dependence on returning series. - Telegraph
British companies should appoint women to at least a third of all boardroom positions, a key report will urge today. Lord Davies will use his final Women On Boards review to call for a rise in the level of female representation at board level from the current 25% to 33% by the end of the decade. He will also expand his recommendations to include firms in the FTSE 350, rather than just Britain's top 100 companies. - Telegraph
One of Britain's biggest housing associations plans to cut the number of affordable homes it builds each year and double the amount of properties it will sell after George Osborne said he would cut social rents. Neil Hadden, the chief executive of Genesis Housing Association, which operates in London and the East of England, said it would cut the number of affordable homes it builds each year and those for social rent to about 100, while it will construct about 500 for shared ownership and 400 for market rent and sale. - The Times |
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