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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 gain after Fed raises interest rates UK equities gained on Thursday after the Federal Reserve raised interest rates and chair Janet Yellen assured the market that further increases would be gradual.
The FTSE 100 rose 1.58% to 6,157 points at 0903 GMT.
The Fed hiked interest rates for the first time in nearly a decade on Wednesday evening by 25 basis points to 0.50%, as expected by analysts.
Speaking at a press conference after the policy announcement Yellen said the economy would continue to strengthen but it still has room for improvement. She said further action will depend on economic growth but any future interest rate hikes would be steady.
Yellen said if the Fed had continued to delay a rate rise it could have been forced to implement a more aggressive increase if economic growth soared and inflation suddenly jumped towards the 2% target.
"Overall, we believe Fed and Chair Janet Yellen succeeded in being neither too hawkish nor too dovish, which is reflected in the muted market reaction," according to Dankse Bank analysts.
"We stick to our view that the Fed will hike three times in 2016 and four in 2017."
On Thursday's agenda, the Office for National Statistics releases its report on UK retail sales at 0930 GMT. Analysts predict a 2.3% rise in November compared to a year ago, slowing from the previous month's 3% gain.
"This year, we think growth will not be as strong, with less intense discounting and reports of lower footfall than last year," according to HSBC analysts.
"Of course online shopping could be strong but non-store retailing accounts for just 7% of the retail sales basket."
In Germany, business confidence fell unexpectedly in December, according to the IFO. The business climate index fell to 108.7 from 109 in November.
Still to come, the US will see its weekly jobless claims data. Economists predict an increase to 274,000 in the week to 12 December from 282,000 the previous week.
On the company front, Astrazeneca rallied as it announced it would acquire a 55% stake in Acerta Pharma over its oncology treatment - a deal valued at $4bn (£2.7bn).
The London Stock Exchange Group was a high riser after saying equity capital raisings were down 2% to £40bn in 2015 due to "more challenging market conditions". New issues were down to 161 new issues from 193 last year
Ted Baker advanced as it said it was buying its currently rented London headquarters for £58.25m.
Oil stocks were under pressure, including Royal Dutch Shell and Premier Oil, as Brent crude dropped 1.13% to $36.97 per barrel and West Texas Intermediate fell 1.16% to $35.11 per barrel at 0859 GMT.
Miners were also under the cosh, including Fresnillo, Anglo American and Rio Tinto, as metal prices declined. Gold, silver and copper were down 0.96%, 1.46% and 1.47%, respectively. |
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| Market Movers
FTSE 100 (UKX) 6,156.15 1.57%
FTSE 250 (MCX) 17,256.41 1.06%
techMARK (TASX) 3,192.53 1.48%
FTSE 100 - Risers
Old Mutual (OML) 176.80p 7.15%
Sainsbury (J) (SBRY) 258.40p 4.11%
Intu Properties (INTU) 325.50p 4.03%
Mondi (MNDI) 1,359.00p 3.82%
St James's Place (STJ) 1,004.00p 3.29%
Standard Chartered (STAN) 529.40p 3.26%
Capita (CPI) 1,209.00p 3.07%
Morrison (Wm) Supermarkets (MRW) 151.70p 3.06%
International Consolidated Airlines Group SA (CDI) (IAG) 602.50p 2.99%
Ashtead Group (AHT) 1,152.00p 2.86%
FTSE 100 - Fallers
Berkeley Group Holdings (The) (BKG) 3,641.00p -3.09%
Fresnillo (FRES) 664.50p -1.34%
Anglo American (AAL) 276.85p -0.49%
Rio Tinto (RIO) 1,895.50p -0.21%
Next (NXT) 7,430.00p -0.20%
Randgold Resources Ltd. (RRS) 4,113.00p -0.17%
Royal Dutch Shell 'B' (RDSB) 1,475.00p 0.00%
Smiths Group (SMIN) 940.00p 0.27%
Coca-Cola HBC AG (CDI) (CCH) 1,491.00p 0.27%
Sage Group (SGE) 589.00p 0.34%
FTSE 250 - Risers
Investec (INVP) 486.20p 7.33%
Jimmy Choo (CHOO) 121.50p 4.74%
Entertainment One Limited (ETO) 178.60p 4.63%
Man Group (EMG) 166.50p 3.74%
Henderson Group (HGG) 301.50p 3.22%
Capital & Counties Properties (CAPC) 448.50p 3.17%
Temple Bar Inv Trust (TMPL) 1,055.00p 3.03%
Evraz (EVR) 64.00p 2.89%
OneSavings Bank (OSB) 370.00p 2.86%
Ocado Group (OCDO) 341.10p 2.77%
FTSE 250 - Fallers
Elementis (ELM) 217.10p -8.28%
Marston's (MARS) 165.00p -2.71%
Halfords Group (HFD) 330.60p -2.10%
Premier Oil (PMO) 48.22p -1.85%
Acacia Mining (ACA) 164.50p -1.56%
Euromoney Institutional Investor (ERM) 935.50p -1.53%
Riverstone Energy Limited (RSE) 795.00p -1.30%
Pets at Home Group (PETS) 277.90p -1.07%
Zoopla Property Group (WI) (ZPLA) 231.80p -0.94% |
| | UK Event Calendar | | Thursday 17 December
INTERIMS
Miton UK Microcap Trust
INTERIM DIVIDEND PAYMENT DATE
E2V Technologies, Liontrust Asset Management, PayPoint
INTERIM EX-DIVIDEND DATE
Berkeley Group Holdings (The), Betfair Group, Bilby, Bonmarche Holdings, Greene King, Halfords Group, JPMorgan Euro Small Co. Trust, Mitie Group, Octopus AIM VCT, Plastics Capital, Severfield, Sirius Real Estate Ltd., Speedy Hire, United Utilities Group, Vianet Group, World Trust Fund
QUARTERLY EX-DIVIDEND DATE
Assura , Mercantile Investment Trust (The), XP Power Ltd. (DI)
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (US) (13:30)
Continuing Claims (US) (13:30)
Current Account (US) (13:30)
ECB Report (EU) (09:00)
IFO Business Climate (GER) (09:00)
IFO Business Climate (GER) (09:30)
IFO Current Assessment (GER) (09:00)
IFO Current Assessment (GER) (09:30)
IFO Expectations (GER) (09:30)
IFO Expectations (GER) (09:00)
Initial Jobless Claims (US) (13:30)
Leading Indicators (US) (15:00)
Philadelphia Fed Index (US) (13:30)
GMS
Harvest Minerals Limited (DI)
SPECIAL EX-DIVIDEND PAYMENT DATE
James Halstead, OMG
EGMS
Plaza Centers NV, RAB Special Situations Company Limited
AGMS
Amur Minerals Corporation NPV, British Empire Trust, Northern Venture Trust, Orchard Funding Group , Smart (J) & Co., Uranium Resources
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Surveys (11:00)
Internet Retail Sales (09:30)
Retail Sales (09:30)
FINAL DIVIDEND PAYMENT DATE
GETECH Group, MJ Gleeson
FINAL EX-DIVIDEND DATE
Carr's Group, Focusrite, Gooch & Housego, Hargreave Hale AIM VCT 1, Marston's, OMG, Qatar Investment Fund, Standard Life European Private Equity Trust, Zoopla Property Group (WI) |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rally as investors cheer Fed rate hike European stocks rallied in early trade, taking their cue from upbeat sessions in the US and Asia as investors welcomed the Federal Reserve's first rate hike in nearly a decade and reassurance that the tightening path will be gradual.
At 0850 GMT, the benchmark Stoxx Europe 600 index was up 2.1%, Germany's DAX was up 2.4% and France's CAC 40 was 2.3% higher.
Banks were among the top performers, with the Stoxx 600 index for the sector up 2.1%.
On Wednesday, the US central bank lifted the range for its benchmark interest rate to between 0.25% and 0.5% from 0% to 0.25%, as chairwoman Janet Yellen insisted the increase was part of a "gradual" process and reflective of an economy that is on a path of "sustainable improvement".
European government bonds also gained ground on the news, with the yield on the 10-year German Bund down four basis points, while yields on peripheral European debt such as Spain and Italy's 10-year government bonds, also fell. Yields move inversely to prices.
"Ahead of the decision the consensus view was that a 25 basis-point increase was factored in to equity markets, said SpreadCo analyst David Morrison, noting that the key takeaway from the accompanying FOMC statement was that the committee expects economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate.
"This was a change from when the Fed talked about 'measured' increases and convinced the markets that the Fed would be cautious going forward and would consider incoming data rather than having a fixed plan in place.
Morrison said the market reaction suggests relief on two counts: firstly that the Fed didn't flunk it and duck tightening monetary policy. The second is that the Fed is telling the markets that it is upbeat about the outlook for the US economy, and also confident that its 2% inflation target will soon be achieved.
"So for now it looks like we can finally enjoy a 'Santa Rally'," he said.
In currency markets, the dollar rose against its major rivals after the rate hike, trading up 0.5% versus the pound, 0.4% against the euro and 0.1% versus the yen.
"If the Fed raises rates by 1% next year - in line with the path implied by the FOMC's forecasts - the dollar will be significantly stronger by December 2016. In practise, they'll tighten less, in part because of further dollar strength," said Societe Generale strategist Kit Juckes.
In corporate news, pharmaceuticals giant AstraZeneca was on the front foot after announcing the acquisition of a majority stake in US and Netherlands-based Acerta Pharma in a deal valued at $4bn (£2.7bn).
Standard Chartered was also in the black following a report that Temasek, one of its top shareholders, was willing to give the company time to work on its turnaround before deciding on the fate of its stake in the bank.
French oil company Total gained after it named chief executive Patrick Pouyanne as chairman of the board. |
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| | US Market Report | | US close: Stocks end at day´s highs after Fed hikes rates Wall Street closed higher and at the day´s highs after the US central bank raised its benchmark interest rate, as had been widely anticipated.
The Dow Jones Industrials closed up by 224 points or 1.28% to reach 17,749 points while the S&P 500 advanced by 30 points or 1.45% and the Nasdaq climbed another 76 points or 1.51%.
"The FOMC yesterday did what it had to do, and said what it had to say. The super-doves were kicked into line, with a unanimous vote, though two members' blue dots showed they think rates should not have been raised. In our view, though, Dr. Yellen's avowed intention to raise rates gradually sits uneasily with her - correct - assertion that policy remains very accommodative, bearing in mind that the unemployment rate is now at the Fed's estimate of the Nairu, while evidence ofaccelerating wage gains is burgeoning," said Ian Sheperdson, chief economist at Pantheon Macroeconomics.
By industrial sectors, Gambling (4.51%), Platinum (4.01%) and Consumer electronics (3.68%) registered the sharpest gains.
The yield on the 10-year US Treasury note retreated by three basis points to 2.27%.
In other events, US mortgage applications fell 1.1% in the week to 11 December, following a 1.2% increase over the previous week, according to the Mortgage Bankers' Association.
Housing starts rebounded in November from a seven-month low, rising 10.5% to 1.17m units, the Commerce Department revealed. Analysts had expected 1.13m units. October's starts were largely unchanged at 1.06m.
Factory output Stateside fell by 0.6% in November, worse than forecasts for a 0.2% drop and the previous month's 0.3% decrease, although economists were mixed in the degree of concern aired in reaction to the data.
Elsewhere, the People's Bank of China said economic growth in the world's second-largest economy was expected to slow to 6.8% in 2016. The PBoC attributed the slight slowdown to industrial overcapacity, rising bad loans from banks and sluggish demand for the nation's goods.
In company news, Walt Disney rallied as Star Wars hit screens worldwide and was well received by critics.
Payment processor Heartland Payment saw a huge advance in its shares after agreeing to be bought by Global Payments for $4.3bn.
CVS Health Corp. jumped after it revised up its 2016 adjusted earnings-per-share outlook to between $5.73 and $5.88 from between $5.68 and $5.88.
Chipotle Mexican Grill advanced after it said it plans to decrease its use of locally sourced ingredients to try and win back customers scared off by an E.coli outbreak.
In commodities, West Texas Intermediate futures were flat at $36.88 per barrel and Brent crude fell 3.42% to $37.18 per barrel.
Metals prices´, on the other hand, were sitting higher on the Comex with gold up 0.89%, silver advancing 2.21% and copper higher by 1.39%.
The dollar was down 0.4% against the euro but up 0.06% against the pound and up 0.15% against the yen.
S&P 500 - Risers
Peabody Energy Corp. (BTU) $8.00 +11.89%
First Solar Inc. (FSLR) $65.62 +9.68%
Honeywell International Inc. (HON) $104.08 +5.70%
Whirlpool Corp. (WHR) $153.10 +5.56%
CVS Health Corp (CVS) $97.56 +5.37%
Genworth Financial Inc. (GNW) $3.99 +5.00%
NextEra Energy Inc. (NEE) $103.65 +4.99%
Ryder System Inc. (R) $59.26 +4.90%
Frontier Communications Co. (FTR) $4.74 +4.87%
Wynn Resorts Ltd. (WYNN) $68.99 +4.47%
S&P 500 - Fallers
Pioneer Natural Resources Co. (PXD) $134.40 -7.04%
Marathon Oil Corp. (MRO) $13.78 -4.70%
Cimarex Energy Co (XEC) $100.56 -4.31%
Devon Energy Corp. (DVN) $30.57 -4.08%
Nucor Corp. (NUE) $38.66 -3.76%
Baker Hughes Inc. (BHI) $44.76 -3.74%
Halliburton Co. (HAL) $35.86 -3.34%
Leucadia National Corp. (LUK) $16.49 -2.77%
Ensco Plc. (ESV) $16.00 -2.44%
PACCAR Inc. (PCAR) $46.72 -2.42%
Dow Jones I.A - Risers
Goldman Sachs Group Inc. (GS) $186.21 +2.31%
General Electric Co. (GE) $30.98 +2.18%
JP Morgan Chase & Co. (JPM) $67.53 +2.16%
Merck & Co. Inc. (MRK) $54.02 +2.12%
Verizon Communications Inc. (VZ) $46.51 +2.11%
United Technologies Corp. (UTX) $95.13 +2.01%
Nike Inc. (NKE) $130.93 +1.80%
Coca-Cola Co. (KO) $43.84 +1.79%
Microsoft Corp. (MSFT) $56.13 +1.68%
Procter & Gamble Co. (PG) $80.99 +1.64%
Dow Jones I.A - Fallers
E.I. du Pont de Nemours and Co. (DD) $66.23 -0.41% |
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| | Newspaper Round Up | | Thursday newspaper round-up: Uber, Heathrow, house prices, Sports Direct Uber users can now book taxis via Facebook Messenger after the two digital giants teamed up. The social network revealed on Wednesday that it has launched a Transportation option on its messaging service. This will allow people to hail a cab from Uber without them having to download and use the taxi-hailing app's own site. - Telegraph
The bosses of some of Britain's biggest companies have called on the Government to decide on Heathrow expansion by the end of May, amid growing fears a third runway will be mired in political wrangling and never built. More than 50 business leaders and lobbyists, including British Land chief Chris Grigg, Legal & General chairman John Stewart and WPP boss Sir Martin Sorrell, have put their names to an open letter to David Cameron that urges the Prime Minister to commit to delivering a "clear and final" decision to expand Heathrow "no later" than May. - Telegraph
Hilton is aiming to spin off its hotels into a real estate investment trust, the latest in a wave of companies seeking to capitalise on high property valuations as the industry shifts attention to managing, rather than owning, hotels. Shares in Hilton, whose hotel portfolio could be worth about $12bn, according to analysts, jumped 5.3 per cent to $22.47 late on Wednesday. Its shares have slipped 14 per cent this year. - Financial Times
For Kensington and Chelsea, read Walthamstow and Forest Gate. London's booming housing market has created a new breed of east London property millionaire, according to a new study which reveals that more than 200 Britons a day are waking up to find their home is now worth a seven-figure sum. Across Britain, more than 620,000 people now own a house or flat worth £1m or more, which is an increase of 75,000 on January's total, said researchers at Zoopla, the property website. Outside London, it is east England, Yorkshire and the Humber that have seen the largest increases in million-pound properties - up 28% and 24% respectively since the start of this year. - Guardian
A group of Labour MPs are to write to the prime minister to demand a cross-departmental investigation into the retailer Sports Direct, following revelations made by the Guardian last week. The latest effort to increase the pressure on the retailer came as the Institute of Directors weighed into the debate over working practices there. Iain Wright MP, chair of the business, innovation and skills select ommittee, said he would be writing to the group's billionaire founder, Mike Ashley, to discuss last week's reports. - Guardian | | |
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