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Nov 23, 2015

Morning Euro Markets Bulletin

 
ADVFN  Morning Euro Markets Bulletin
Daily world financial news Monday, 23 November 2015 10:29:50
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London Market Report
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London open: Mining stocks drag FTSE lower

UK stocks opened in the red on Monday, dragged down by mining shares, as investors weighed European manufacturing data and awaited the release of economic reports in the US.
Eurozone manufacturing activity rose to a 19-month high in November. Markit's purchasing managers' index increased to 52.8 from 52.3 in October, above the 50 level that indicates an expansion.

Markit's PMI on US manufacturing at 1445 GMT is expected to show a drop to 54 in November from 54.1 the previous month.

US existing home sales figures are then due at 1500 GMT, with analysts predicting a 2.7% drop to 5.40m in October compared to a month ago.

On the company front, miners were in the red, including Glencore, Anglo American and BHP Billiton, as metal prices declined.

Mitie Group slumped after half-year operating profits were hit by the deterioration of its performance in its healthcare arm and as it exited unprofitable contracts in that segment.

Going the other way, BAE Systems, Rolls Royce and Babcock International benefitted from news that the UK was set to announce an increase in defence spending.

Astrazeneca dipped after selling the US rights to Crohn's disease medicine Entocort to Perrigo Company for $380m.

Segro fell as the real estate investment trust bought a portfolio of three, fully-let logistics buildings in the Netherlands for €92.7m from Dutch private developer Dok Vast.

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Market Movers

FTSE 100 (UKX) 6,283.25 -0.81%
FTSE 250 (MCX) 17,108.82 -0.47%
techMARK (TASX) 3,174.59 -0.48%

FTSE 100 - Risers

BAE Systems (BA.) 498.10p 1.24%
Rolls-Royce Holdings (RR.) 558.00p 1.09%
Babcock International Group (BAB) 995.00p 0.61%
HSBC Holdings (HSBA) 532.30p 0.23%
Imperial Tobacco Group (IMT) 3,560.00p 0.20%
SABMiller (SAB) 4,019.00p 0.01%
Next (NXT) 7,785.00p 0.00%
Inmarsat (ISAT) 1,052.00p -0.00%
InterContinental Hotels Group (IHG) 2,501.00p -0.04%
Hikma Pharmaceuticals (HIK) 2,129.00p -0.05%

FTSE 100 - Fallers

Glencore (GLEN) 89.26p -3.33%
Anglo American (AAL) 431.80p -3.29%
Antofagasta (ANTO) 492.60p -3.03%
BHP Billiton (BLT) 859.00p -2.99%
BG Group (BG.) 998.20p -2.04%
Pearson (PSON) 809.50p -1.88%
GKN (GKN) 293.90p -1.84%
Morrison (Wm) Supermarkets (MRW) 153.60p -1.79%
Standard Chartered (STAN) 555.10p -1.78%
Rio Tinto (RIO) 2,255.50p -1.76%

FTSE 250 - Risers

Home Retail Group (HOME) 110.10p 6.48%
NMC Health (NMC) 781.50p 2.69%
OneSavings Bank (OSB) 391.10p 2.28%
Jardine Lloyd Thompson Group (JLT) 916.00p 2.12%
Ocado Group (OCDO) 359.00p 2.05%
esure Group (ESUR) 249.40p 1.80%
Jimmy Choo (CHOO) 147.20p 1.52%
Bank of Georgia Holdings (BGEO) 1,860.00p 1.03%
PayPoint (PAY) 1,012.00p 1.00%
Pace (PIC) 386.70p 0.94%

FTSE 250 - Fallers

Playtech (PTEC) 751.00p -11.80%
Evraz (EVR) 80.65p -6.00%
Nostrum Oil & Gas (NOG) 367.00p -5.78%
Kaz Minerals (KAZ) 87.35p -5.62%
Tullow Oil (TLW) 190.80p -3.29%
Mitie Group (MTO) 321.30p -3.25%
Vedanta Resources (VED) 371.60p -2.85%
Petrofac Ltd. (PFC) 739.50p -2.50%
Amec Foster Wheeler (AMFW) 444.60p -2.48%

UK Event Calendar

Monday 23 November

INTERIMS
Bonmarche Holdings, Kainos Group , Mitie Group, Sacoil Holdings (DI), Trakm8 Holdings

Q3
Bank of Georgia Holdings

GMS
Mirada

SPECIAL DIVIDEND PAYMENT DATE
TR European Growth Trust

EGMS
Goldenport Holdings Inc. (DI), Just Retirement Group, PME African Infrastructure Opportunities

AGMS
Aeorema Communications, JPMorgan Smaller Companies Inv Trust, Just Retirement Group, Volta Finance Limited

FINAL DIVIDEND PAYMENT DATE
Henderson EuroTrust, TR European Growth Trust


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Europe Market Report
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Europe open: Resources and energy stocks lead equity markets lower

European stocks fell in early trade, with natural resources and energy under the cosh as metals and oil prices declined.
At 0845 GMT, the benchmark Stoxx Europe 600 index was down 0.7%, Germany's DAX was 0.5% lower and France's CAC 40 was off 0.8%.

"This week commences on a soft note for European indices following a good month that saw the best weekly performance from global stocks in just over a month," said Simon Smith, chief economist at FXPro.

"Increased security tensions across Europe and a continued downward spiral of commodity prices means...sentiment is likely to be tested further with a very quiet week ahead on both the economic and corporate data front, culminating in the-two day Thanksgiving celebrations in the US."

The Stoxx 600 basic resources index was down 2.5% as metals prices slumped on concerns about a slowdown in demand from China, while the Stoxx 600 oil and gas index was down 1.5% as oil prices fell.

West Texas Intermediate was 2.9% lower at $40.69, while Brent crude was 1.8% weaker at $43.88 amid a stronger US dollar and concerns about a supply surplus.

Credit Suisse slid after the bank said it has raised 1.32bn Swiss francs from the first phase of a CHF6bn capital increase.

AstraZeneca nudged lower after announcing that it has sold the US rights to Crohn's disease medicine Entocort to Perrigo Company for $380m (£250.8m).

Aside from corporate and macroeconomic news flow, investors were also keeping an eye on developments in Europe after Belgian police made 16 arrests in late-night raids related to the Paris terrorist attacks, but failed to find a prime suspect.

Brussels was on lockdown for the third day in a row on Monday due to a "serious and imminent" threat of attack.

Meanwhile, in the UK, the government said it will make the case to parliament to join air strikes against the Islamic State in Syria, as prime minister David Cameron prepared to announce a £12 billion increase to the defence budget.


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US Market Report

US close: S&P closes out best week in 2015

A benchmark for US shares finished the week with its largest gains in a year, bolstered by so-called consumer discretionary and healthcare stocks, as investors continued to react positively to indications from earlier in the week that the pace of interest rate hikes in 2016 will be quite gradual.
That message appeared to be reinforced to a small degree on Thursday night and Friday in fresh remarks from three US rate-setters.

The Dow Jones Industrials Average ended the Friday session up by 91.06 points to end at 17,823.81, while the S&P 500 and the Nasdaq moved higher by 7.93 and 31.28 points each, to end the week at 2,089.17 and 5,104.92, respectively.

For the week as a whole, the S&P 500 was left sporting gains of 3.3%, alongside falling levels of volatility.

Boom times ahead, says Fed´s Bullard

Speaking on Friday, St.Louis Fed President James Bullard said: "I think we are going to return to an era where there is a bit more uncertainty about what the (Fed's policy-setting) committee is going to do meeting to meeting."

In the 2004-2006 interest rate cycle the Fed jacked up the Fed funds rate at 17 consecutive meetings.

Monetary policy should be more data-dependent and the central bank must be ready to be flexible, Bullard reportedly added.

The economy is headed into a 'boom' period, the rate-settered also said.

Overnight on Thursday, Fed Vice Chairman Stanley Fischer said that Fed policymakers had done everything "we can to avoid surprising the markets and governments when we move."

Nevertheless, a final decision had not yet been taken, Fischer said.

A decision to raise rates in December will be data-dependent, New York Fed president William Dudley added.

Retailers, healthcare pace gains

In company news, Gap jumped 7.53% despite cutting its profit guidance for the year late on Thursday, as quarterly sales fell more than expected.

From a sector standpoint the best performance was seen in the following industrial groups: Footwear (5.03%), Apparel retailers (3.88%), Home improvement retailers (2.77%) and Healthcare providers (2.37%).

Allergan jumped 3.5% on reports Pfizer was in advanced talks to buyout the company, possibly for as much as $380 per share.

Software maker Intuit rose 5.93% after posting better-than-expected quarterly results on Thursday, while Foot Locker advanced 5.67% after better-than-expected sales numbers and Abercrombie & Fitch soared 25.04% after it said its quarterly profit rose because the company offered less discounts during the period.

Railroad and defence stocks continued to see some buying momentum.

S&P 500 - Risers
Ross Stores Inc. (ROST) $50.84 +10.04%
Gap Inc. (GPS) $26.98 +7.53%
Intuit Inc. (INTU) $103.20 +5.93%
Genworth Financial Inc. (GNW) $5.06 +5.86%
Nike Inc. (NKE) $132.65 +5.46%
Aetna Inc. (AET) $104.43 +4.55%
Equinix, Inc. (EQIX) $298.60 +4.37%
VeriSign Inc. (VRSN) $90.30 +4.27%
Kohls Corp. (KSS) $47.04 +4.12%
TJX Companies Inc. (TJX) $70.15 +3.62%

S&P 500 - Fallers
Chipotle Mexican Grill Inc. (CMG) $536.19 -12.32%
United States Steel Corp. (X) $8.70 -9.66%
Southwestern Energy Co. (SWN) $9.04 -7.57%
Chesapeake Energy Corp. (CHK) $5.08 -5.93%
CF Industries Holdings Inc. (CF) $43.90 -5.73%
Murphy Oil Corp. (MUR) $28.66 -5.04%
Peabody Energy Corp. (BTU) $11.29 -4.65%
CenturyLink Inc. (CTL) $27.23 -4.36%
Range Resources Corp. (RRC) $30.41 -4.07%
Akamai Technologies Inc. (AKAM) $56.92 -3.87%

Dow Jones I.A - Risers
Nike Inc. (NKE) $132.65 +5.46%
Home Depot Inc. (HD) $130.21 +2.64%
Unitedhealth Group Inc. (UNH) $112.97 +2.12%
Caterpillar Inc. (CAT) $71.14 +1.60%
General Electric Co. (GE) $30.66 +1.29%
International Business Machines Corp. (IBM) $138.50 +1.29%
Walt Disney Co. (DIS) $120.07 +1.15%
Intel Corp. (INTC) $34.66 +1.05%
Cisco Systems Inc. (CSCO) $27.57 +0.73%
Travelers Company Inc. (TRV) $115.83 +0.70%

Dow Jones I.A - Fallers
Chevron Corp. (CVX) $89.01 -2.00%
Coca-Cola Co. (KO) $42.43 -1.58%
Wal-Mart Stores Inc. (WMT) $60.07 -1.04%
Verizon Communications Inc. (VZ) $45.39 -0.81%
Goldman Sachs Group Inc. (GS) $191.47 -0.81%
Exxon Mobil Corp. (XOM) $79.79 -0.64%
Procter & Gamble Co. (PG) $75.82 -0.52%
American Express Co. (AXP) $72.42 -0.44%
E.I. du Pont de Nemours and Co. (DD) $66.70 -0.43%
Pfizer Inc. (PFE) $32.18 -0.34%

Nasdaq 100 - Risers
Ross Stores Inc. (ROST) $50.84 +10.04%
Intuit Inc. (INTU) $103.20 +5.93%
Citrix Systems Inc. (CTXS) $75.05 +3.35%
JD.com, Inc. (JD) $29.99 +3.24%
Netflix Inc. (NFLX) $123.84 +3.01%
QUALCOMM Inc. (QCOM) $49.62 +2.54%
Alphabet Inc. Class C (GOOG) $756.60 +2.46%
Intuitive Surgical Inc. (ISRG) $516.57 +2.46%
Alphabet Inc. Class A (GOOGL) $777.00 +2.24%
Staples Inc. (SPLS) $12.29 +1.99%

Nasdaq 100 - Fallers
Biomarin Pharmaceutical Inc. (BMRN) $97.00 -5.93%
Akamai Technologies Inc. (AKAM) $56.92 -3.87%
Wynn Resorts Ltd. (WYNN) $59.56 -3.59%
Autodesk Inc. (ADSK) $60.55 -2.95%
Incyte Corp. (INCY) $113.13 -2.83%
Micron Technology Inc. (MU) $15.43 -2.77%
Sba Communications Corp. (SBAC) $103.02 -2.10%
Nxp Semiconductors Nv (NXPI) $79.77 -1.42%
Mondelez International Inc. (MDLZ) $43.95 -1.41%


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Newspaper Round Up

Monday newspaper round-up: UK defence, Made.com, Rolls-Royce

David Cameron will today pump an extra £12bn into strengthening Britain's defences against Isis and Russia, but the bill will be met by spending cuts elsewhere with police, welfare and business grants in the line of fire. Mr Cameron will set out a five-year defence review with a focus on tackling Isis, including a 30% increase in the counter-terrorism budget, £2bn on special forces and a new emphasis on cyber defences. - Financial Times
A surge in finance and accounting jobs across the UK is leading a rise in job prospects in all professional industries, according to new figures. The data shows a 6pc rise in professional vacancies compared to a year ago, with both permanent and contract jobs on the increase. Finance and accounting openings rose 16pc on last year, while vacant engineering roles grew by a more modest 8pc, and jobs in media and marketing were up 2pc. - Telegraph

Upmarket furniture retailer Made.com has launched a new online mattress shop in a bid to shake up the £1bn UK bed market. The company has created a hi-tech mattress, dubbed "the One", which aims to suit the majority of consumers, and goes on sale today [Monday]. "We're always looking for ways to disrupt new categories," Julien Callede,Made.com co-founder told the Daily Telegraph. "Mattresses are complicated to sell and we've been looking at how to address the market for a year." - Telegraph

Rolls-Royce will fly into the City for the second time in a fortnight tomorrow to avert a crisis that has caused investors to lose confidence in the group and prompted an American activist to demand a say in how the company is run. The company, which makes engines for the Airbus A380 superjumbo and the Boeing Dreamliner, as well as for the Eurofighter Typhoon and Britain's nuclear submarines, has issued five profit warnings in 20 months, prompting a £12 billion crash in the value of the company. -The Times

New director-general may waver over pay but Europe is still a sticking point. The new head of the CBI is seeking a truce with government by dropping claims that the £9 national living wage will cost jobs. - The Times

MPs are to look into the sale of £13bn of former Northern Rock mortgages to the US private equity group Cerberus Capital, to examine whether the deal was in the public interest. The Treasury select committee of MPs, led by Andrew Tyrie, has not decided whether to launch a formal inquiry but will take advice about the sale after hearing concerns. - Guardian

 

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