| | | | | The Top Stock Picks for 2016 | | Who should you consider for the year ahead? This report has us take a look at some of the hottest prospects for the coming 12-months, helping you navigate the markets successfully in order to capitalise on the attractive volatility on offer. Get your copy of The Top Stock Picks for 2016 and start this New Year fully prepared. Losses can exceed deposits | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: Stocks fall on China woes, geopolitical tensions, oil price slump London stocks declined on Wednesday as Chinese service activity growth eased, oil prices continued drop and reports that North Korea has tested a nuclear weapon rocked markets.
Caixin's purchasing managers' index on China services fell to 50.2 in December from 51.2 the previous month. A reading above 50 signals an expansion while a level below that indicates a contraction.
The report follows weak manufacturing data on Monday, adding to concerns about a slowdown in the world's second largest economy.
Worries in Asia escalated after North Korea said it had successfully carried out an underground hydrogen bomb test. If confirmed, it would be the country's fourth nuclear test since 2006.
The news came after a 5.1 magnitude tremor was detected close to the nuclear test site at Punggye-ri, which monitors said was unlikely to be natural.
A slump in oil prices also continued to weigh on sentiment, with Brent crude down 1.98% to $35.71 per barrel and West Texas Intermediate down 1.2% to $35.51 per barrel at 0857 GMT.
"The dismal start to 2016 appears to have only intensified this Wednesday, with disappointing Chinese services data (sending the yuan to a 5 year low against the dollar even if the Shanghai Composite managed some counter-intuitive growth), a fresh 11 year low for Brent Crude AND reports of a fourth nuclear test from North Korea leading to an increasingly odious open from the European markets," said Connor Campbell, financial analyst at Spreadex.
Still to come, services PMIs in the UK and the US will be released.
In the US, a report on factory orders is expected to show a 0.2% drop in November, compared to the previous month's 1.5% increase.
The private payrolls report from ADP is forecast to reveal US employers added 198,000 jobs in December. It comes ahead of the official monthly non-farm payrolls report on Friday.
After the closing bell, the Federal Reserve will release minutes of its 15-16 December policy meeting, which will reveal more details behind the central bank's decision to raise interest rates for the first time in almost a decade.
On the company front, mining stocks were under the cosh amid woes in China and geopolitical tensions. Rio Tinto, BHP Billiton, Antofagasta and Glencore were in the red.
Oil producers, including Nostrum Oil & Gas and Ophir Energy, slipped on fears about the further fall in oil prices.
Next reversed Tuesday's decline after reporting disappointing sales in the final few weeks of last year.
Royal Mail continued to rally a day after Cantor Fitzgerald upgraded the stock 'buy' from 'hold' and raised the price target to 530p from 500p. |
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| Market Movers
FTSE 100 (UKX) 6,072.50 -1.05%
FTSE 250 (MCX) 17,079.39 -0.73%
techMARK (TASX) 3,191.64 -0.67%
FTSE 100 - Risers
Royal Mail (RMG) 444.20p 1.60%
Marks & Spencer Group (MKS) 438.00p 0.69%
BAE Systems (BA.) 497.20p 0.65%
RSA Insurance Group (RSA) 417.10p 0.55%
Kingfisher (KGF) 329.40p 0.52%
Imperial Tobacco Group (IMT) 3,545.50p 0.18%
Next (NXT) 6,865.00p 0.07%
United Utilities Group (UU.) 940.50p 0.00%
Sainsbury (J) (SBRY) 242.00p -0.04%
Worldpay Group (WI) (WPG) 303.90p -0.10%
FTSE 100 - Fallers
BHP Billiton (BLT) 715.40p -4.10%
Rio Tinto (RIO) 1,871.50p -3.51%
Antofagasta (ANTO) 433.00p -3.11%
Glencore (GLEN) 85.55p -3.07%
ARM Holdings (ARM) 975.50p -2.84%
Anglo American (AAL) 275.50p -2.72%
Burberry Group (BRBY) 1,092.00p -2.59%
Aberdeen Asset Management (ADN) 268.10p -2.58%
Direct Line Insurance Group (DLG) 377.70p -2.23%
GKN (GKN) 287.40p -2.18%
FTSE 250 - Risers
Acacia Mining (ACA) 184.40p 2.27%
Enterprise Inns (ETI) 109.30p 1.77%
Marshalls (MSLH) 325.80p 1.56%
Ladbrokes (LAD) 121.80p 1.33%
Bwin.party Digital Entertainment (BPTY) 132.00p 1.07%
Card Factory (CARD) 362.30p 1.00%
Dechra Pharmaceuticals (DPH) 1,067.00p 0.95%
Temple Bar Inv Trust (TMPL) 1,040.00p 0.87%
Evraz (EVR) 73.30p 0.83%
Homeserve (HSV) 415.33p 0.76%
FTSE 250 - Fallers
Home Retail Group (HOME) 130.60p -6.25%
Nostrum Oil & Gas (NOG) 382.20p -4.33%
Amec Foster Wheeler (AMFW) 415.80p -4.17%
Ophir Energy (OPHR) 93.75p -3.45%
Senior (SNR) 219.00p -3.27%
Cairn Energy (CNE) 149.80p -3.17%
Vedanta Resources (VED) 266.60p -3.05%
Zoopla Property Group (WI) (ZPLA) 229.00p -3.05%
Rotork (ROR) 165.00p -3.00% |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks slide as worries over China intensify European stocks fell in early trade following another batch of disappointing data from China and amid rising geopolitical tensions.
At 0905 GMT, the benchmark Stoxx Europe 600 index was down 1.1%, while France's CAC 40 and Germany's DAX were both 1.2% weaker.
Caxin's service PMI dropped to a 17-month low of 50.2 in December from 51.2 the previous month, but still above the 50 that separates contraction from expansion.
Meanwhile, the composite index printed at 49.4 in December compared with 50.5 in November, moving into contraction.
Asian markets ended lower, with the exception of China, where the Shanghai Composite rallied amid reports that Beijing had spent billions buying shares following huge losses in the two previous sessions.
"News that the Chinese Caixin services PMI came in much lower than expected overnight has stirred fears that in addition to the already struggling manufacturing sector, services are also starting to be in trouble which would certainly not only deepen China's economic woes but also put the likelihood of a sustained economic rebound several months back," said Markus Huber, senior analyst at Peregrine & Black.
Sentiment was also dented by news that the People's Bank of China set a weaker midpoint for the yuan, adding to concerns about the health of the world's second-largest economy.
Claims from North Korea that it has successfully tested a miniaturised hydrogen nuclear device also weighed on the mood.
As geopolitical tensions mounted, defence stocks gained, with London-listed BAE Systems and France's Thales both in the black.
Elsewhere, ARM Holdings, whose chips are used in Apple devices, was under the cosh following reports the US tech giant is expected to cut production of the iPhone 6S and 6S Plus by around 30% in the January-March quarter as a result of mounting inventories.
Dialog Semiconductor, which derives a large part of its revenues from Apple, was also firmly in the red.
In terms of sectors, basic resources and energy-related shares were the worst performers.
The Stoxx 600 basic resources index fell 2.4% amid growing worries about China, on which the sector is highly dependent.
Meanwhile, the sub-index for oil and gas slid 1.2% as oil prices declined, with West Texas Intermediate down 1.5% at $35.45 a barrel and Brent crude 4.3% weaker at $35.62, trading near 11-year lows.
With so much going on, Markit's final Eurozone services purchasing managers' index for December came and went with little fuss, showing a reading of 54.2 versus expectations of 53.9.
Still to come on the macroeconomic calendar, Eurozone PPI is at 1000 GMT. In the US, investors will have a raft of figures to sink their teeth into. The ADP employment report is at 1315 GMT, while trade balance data is at 1330 GMT. Industrial new orders, ISM non-manufacturing and durable goods orders are all due at 1500 GMT. |
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| | US Market Report | | US close: Stocks mixed on China woes, oil price slump US stocks were mixed on Tuesday as oil prices slid and the People's Bank of China tried to soothe concerns on the slowdown in the world's second largest economy.
The Dow closed up 0.06% while the Nasdaq fell 0.25% and the S&P 500 rose 0.22%.
Oil prices were in the red on worries about an oversupply in the market. West Texas Intermediate crude fell 2.5% to $35.86 per barrel and Brent dropped 2.3% to $36.36 per barrel at 0936 GMT.
Investors also continued to weigh tensions between Iran and Saudi Arabia and the effect it might have on oil.
Meanwhile, the PBoC tried to calm nerves as it injected 130bn yuan (£13.6bn) into the financial system via reverse repurchase agreements and fixed the yuan stronger to the dollar in reaction to the currency hitting four-and-a-half month lows. "
The PBoC's offer of 130bn yuan (almost $20bn) of reverse repurchase agreements appears to have eased liquidity concerns in
Chinese money markets and offered some layer of comfort for equity investors," said Jasper Lawler at CMC Markets.
"With rising capital outflows thanks to the weakening currency, tight liquidity has forced the PBOC to offer alternative funding."
Elsewhere in the nation, the China Securities Regulatory Commission said on Tuesday that shareholders should not sell shares when the six-month ban expires on Friday.
Furthermore, several large Chinese companies said their major shareholders and senior executives would voluntarily extend a ban on sales of shares in the secondary market, Reuters reported.
Among corporate stocks, oil producers tumbled including Ensco, Transocean and Diamond Offshore Drilling.
Gun shares advanced, including Smith & Wesson and Sturm, Ruger & Bo., amid speculation that new restrictions announced by President Barack Obama would boost sales.
Apple was on the back foot on fears about slowing demand for the iPhone and weakness in China.
The dollar rose 0.29% against the pound, increased 0.73% against the euro and fell 0.34% against the yen.
S&P 500 - Risers
First Solar Inc. (FSLR) $72.03 +7.96%
FLIR Systems Inc. (FLIR) $30.31 +5.43%
Macerich Co (MAC) $82.50 +3.85%
NRG Energy Inc. (NRG) $11.97 +3.82%
Micron Technology Inc. (MU) $14.82 +3.42%
Macy's Inc. (M) $36.96 +3.27%
Kimco Realty Corp. (KIM) $26.56 +3.15%
Harman International Industries Inc. (HAR) $96.00 +3.10%
Reynolds American Inc. (RAI) $46.57 +3.03%
Gap Inc. (GPS) $26.28 +3.02%
S&P 500 - Fallers
Ensco Plc. (ESV) $14.89 -6.29%
Qorvo, Inc. (QRVO) $47.53 -6.29%
Skyworks Solutions Inc. (SWKS) $73.29 -5.95%
Rowan Companies plc (RDC) $16.19 -5.27%
Diamond Offshore Drilling Inc. (DO) $20.80 -4.81%
Owens-Illinois Inc. (OI) $16.28 -4.57%
Alcoa Inc. (AA) $9.27 -4.53%
Genworth Financial Inc. (GNW) $3.64 -4.21%
Quanta Services Inc. (PWR) $19.46 -4.19%
Goodyear Tire & Rubber Co. (GT) $30.70 -4.09%
Dow Jones I.A - Risers
Wal-Mart Stores Inc. (WMT) $62.92 +2.38%
E.I. du Pont de Nemours and Co. (DD) $64.28 +1.92%
Nike Inc. (NKE) $62.38 +1.40%
McDonald's Corp. (MCD) $119.20 +1.38%
Verizon Communications Inc. (VZ) $46.50 +1.37%
Merck & Co. Inc. (MRK) $53.15 +1.28%
Chevron Corp. (CVX) $89.61 +0.86%
Exxon Mobil Corp. (XOM) $78.12 +0.85%
Visa Inc. (V) $76.27 +0.75%
Pfizer Inc. (PFE) $32.18 +0.72%
Dow Jones I.A - Fallers
Apple Inc. (AAPL) $102.71 -2.51%
Walt Disney Co. (DIS) $100.90 -2.02%
Goldman Sachs Group Inc. (GS) $174.09 -1.72%
American Express Co. (AXP) $66.55 -1.54%
Caterpillar Inc. (CAT) $67.28 -1.04%
Home Depot Inc. (HD) $130.43 -0.49%
Intel Corp. (INTC) $33.83 -0.47%
Cisco Systems Inc. (CSCO) $26.29 -0.45%
International Business Machines Corp. (IBM) $135.85 -0.07%
Nasdaq 100 - Risers
Vimpelcom Ltd Ads (VIP) $3.41 +3.96%
Micron Technology Inc. (MU) $14.82 +3.42%
CH Robinson Worldwide Inc (CHRW) $63.47 +2.72%
Yahoo! Inc. (YHOO) $32.20 +2.55%
Stericycle Inc. (SRCL) $120.53 +2.26%
Staples Inc. (SPLS) $9.70 +1.89%
Wynn Resorts Ltd. (WYNN) $70.07 +1.89%
Baidu Inc. (BIDU) $187.36 +1.81%
Intuit Inc. (INTU) $95.95 +1.66%
Nvidia Corp. (NVDA) $32.89 +1.61%
Nasdaq 100 - Fallers
Skyworks Solutions Inc. (SWKS) $73.29 -5.95%
Avago Technologies Ltd. (AVGO) $137.52 -3.35%
Priceline Group Inc (PCLN) $1,210.69 -2.78%
Walgreens Boots Alliance, Inc. (WBA) $80.87 -2.62%
Apple Inc. (AAPL) $102.71 -2.51%
Nxp Semiconductors Nv (NXPI) $82.39 -2.43%
NetApp Inc. (NTAP) $25.40 -2.38%
Netflix Inc. (NFLX) $107.66 -2.09%
Liberty Interactive Corporation - Series A Liberty Ventures (LVNTA) $42.45 -2.08% |
| | The Top Stock Picks for 2016 | | Who should you consider for the year ahead? With 2015 a notably volatile year and many a stock now trading at heavily discounted levels, we’re approaching what could be a turning point. Not only do we have a couple of potentially exciting drivers moving forward, we’ve also got some very reasonably priced stocks. That’s what makes 2016 a real year of opportunity. Download The Top Stock Picks for 2016 and discover our selection of stocks to watch in 2016. Losses can exceed deposits |
| | Newspaper Round Up | | Wednesday newspaper round-up: China, Twitter, hedge funds China is to extend a ban on stock sales by large shareholders until permanent rules to restrict such sales take effect, as authorities seek to calm market fears over the lock-up that was due to expire on Friday. China's blue-chip stock index, the CSI 300, tumbled 7 per cent on Monday, raising the spectre of a return to the panic selling of last summer when the main index was down 45 per cent at one stage. Analysts blamed Monday's fall on fears over the impending end of the ban, which was imposed in early July. - Financial Times
Twitter is considering abandoning its 140-character limit on the length of tweets, as chief executive Jack Dorsey plays with ways to revive user growth at the messaging platform. Shares fell 3 per cent to $21.89 after a report that Twitter was working on extending the length of a tweet to up to 10,000 characters, with investors unsure about how this would change the social site. - Financial Times
Princess Yachts, Britain's largest boatbuilder, is cutting hundreds of jobs as the global economy continues to struggle. The Plymouth-based business will make 350 of its 2,300 workers redundant, with job losses expected to come in March. The timing of the news is unfortunate for the business, coming just days before the the start of the London Boat Show, where Princess will be the largest exhibitor. - Telegraph
Global stock markets could suffer further turmoil if China's slowdown continues, the International Monetary Fund's chief economist has warned. Markets across the world slumped on Monday, with the FTSE 100 recording its worst start to a year since 2000, after weak economic data from the Asian country. Maurice Obstfeld, who joined the IMF in September, said that further disappointing data from China could cause markets to fall again. - Telegraph
A collection of hedge funds have lost more than £30m in a single afternoon after shares in Home Retail Group, the owner of Argos and Homebase, rose on the news that Sainsbury's had made a takeover approach. Hedge funds have bet heavily against Home Retail by shorting the shares, gambling that Argos will come under pressure from Amazon and fierce competition on the high street. - Guardian
A key lieutenant to Angela Merkel has claimed that the US government's multibillion-dollar legal action against Volkswagen is aimed at destabilising the German carmaker in favour of American rivals. - The Times
Revelling in its new-found feelgood factor of rising wages and falling prices, Britain appears to have rediscovered a taste for enjoying itself. After enduring a decade-long slump, the entertainment sector has bounced back to deliver a record high in sales. Moreover, it appears to have reached a point where people are happy to pay for content - a Shangri-La for music and film companies that have long battled piracy and an anarchic online marketplace. - The Times | | |
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