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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: UK stocks gain ahead of BoE's Super Thursday UK stocks gained ahead of the Bank of England's so-called Super Thursday which includes the central bank's policy decision, meeting minutes and Inflation Report.
The BoE's Monetary Policy Committee is once again projected to vote 8-1 on maintaining the benchmark rate at 0.5% amid low inflation and weak global growth.
The minutes of the policy decision are expected to reveal Ian McCafferty remained the only member of the MPC to vote in favour of a rate hike.
Since the MPC is unlikely to deliver any surprises, focus will be on the meeting minutes and the Inflation Report for clues on the timing of the first interest rate increase.
"Whether the Bank of England acts on interest rates at all in 2016 currently looks touch and go," said Howard Archer, chief UK and European economist at IHS Global Insight.
"Governor Mark Carney's recent high profile speech indicated that UK growth and inflation since last summer has been weaker than the Bank of England had expected, and the conditions are not in place for an interest rate hike. His speech fuelled the view that the Bank of England could sit tight on interest rates through 2016."
People took advantage of low interest rates in January with high demand in the property market pushing house prices up in January, data from Halifax revealed.
UK house prices rose 1.7% in January compared to a month ago, surging past analysts' expectations for a 0.1% increase. House prices increased 2% month-on-month in December.
On the year house prices jumped 9.7% in January compared with a 9.5% annual increase in December. Analyst had predicted a 9% gain.
Meanwhile, oil prices advanced in morning trade amid reports of potential talks between global oil producers to curb the supply glut. Brent crude rose 0.53% to $35.23 per barrel and West Texas Intermediate climbed 0.89% to $32.57 per barrel at 0856 GMT.
"Yet Brent Crude has already begun to threaten to fall through that $35 per barrel level, so how long the morning's impressively positive trading can last is another matter entirely," said Connor Campbell, financial analyst at Spreadex.
"As we have seen since the New Year began, things can turn negative in the blink of an eye; all it takes is one reminder of the myriad of underlying fears currently plaguing the markets (a reminder likely taking the form of a Mark Carney speech later today) for the whole thing to come, quite literally, tumbling down."
Still to come, US initial jobless claims figures will be released at 1330 GMT, while reports on US durable goods orders and factory orders will be published at 1500 GMT.
In company news, oil producers were sitting higher on the increase in crude prices. Even Royal Dutch Shell rallied after posting an 80% drop in full year profit.
Astrazeneca dropped after warning that the expiry of the patent on its anti-cholesterol drug Crestor will cut its profits this year as cheaper, generic versions come to the market.
Smith & Nephew declined after saying full year revenue has remained flat for the year to 31 December 2015, while reported operating profit dipped.
Vodafone was in the red after reporting a 6.3% drop in revenue on a reported basis in the three months to 31 December 2015. |
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| | Market Movers
FTSE 100 (UKX) 5,911.78 1.28%
FTSE 250 (MCX) 16,109.67 0.73%
techMARK (TASX) 3,092.10 0.22%
FTSE 100 - Risers
Anglo American (AAL) 298.45p 9.04%
Glencore (GLEN) 92.56p 7.69%
Rio Tinto (RIO) 1,785.50p 5.96%
BHP Billiton (BLT) 680.20p 5.75%
Antofagasta (ANTO) 394.80p 5.11%
Compass Group (CPG) 1,233.00p 5.03%
Royal Dutch Shell 'A' (RDSA) 1,498.00p 4.17%
Standard Chartered (STAN) 431.00p 4.06%
Royal Dutch Shell 'B' (RDSB) 1,495.50p 4.03%
Old Mutual (OML) 158.20p 3.87%
FTSE 100 - Fallers
Coca-Cola HBC AG (CDI) (CCH) 1,344.00p -4.00%
AstraZeneca (AZN) 4,274.50p -3.12%
Imperial Tobacco Group (IMT) 3,685.50p -1.15%
Johnson Matthey (JMAT) 2,389.00p -0.75%
International Consolidated Airlines Group SA (CDI) (IAG) 520.00p -0.67%
Unilever (ULVR) 3,002.00p -0.60%
Smith & Nephew (SN.) 1,111.00p -0.45%
Worldpay Group (WI) (WPG) 309.20p -0.26%
Legal & General Group (LGEN) 217.70p -0.14%
Admiral Group (ADM) 1,758.00p -0.11%
FTSE 250 - Risers
Tullow Oil (TLW) 176.30p 9.37%
Allied Minds (ALM) 310.00p 5.08%
Countrywide (CWD) 350.50p 4.85%
Vectura Group (VEC) 177.00p 4.73%
Investec (INVP) 433.20p 4.21%
Ophir Energy (OPHR) 87.40p 4.17%
AA (AA.) 286.70p 4.03%
Weir Group (WEIR) 818.00p 3.87%
Evraz (EVR) 59.15p 3.68%
Polymetal International (POLY) 615.00p 3.54%
FTSE 250 - Fallers
Just Eat (JE.) 337.70p -1.89%
Victrex plc (VCT) 1,421.00p -1.80%
Paragon Group Of Companies (PAG) 305.30p -1.55%
Ibstock (IBST) 211.00p -1.40%
Millennium & Copthorne Hotels (MLC) 389.70p -1.19%
Britvic (BVIC) 686.50p -1.08%
Rightmove (RMV) 3,900.00p -0.99%
PayPoint (PAY) 754.00p -0.92%
Spire Healthcare Group (SPI) 318.90p -0.90%
Wetherspoon (J.D.) (JDW) 687.00p -0.72% |
| | UK Event Calendar | | Thursday 04 February
INTERIMS
Avanti Capital
INTERIM DIVIDEND PAYMENT DATE
Anglo Pacific Group, Tongaat-Hulett Ltd.
INTERIM EX-DIVIDEND DATE
Cohort, CPL Resources, Daejan Holdings, Downing One VCT , Drum Income Plus Reit, NB Private Equity Partners Ltd., Puma VCT 10 , Puma Vct 8, Puma VCT 9, Puma Vct VII, Stagecoach Group
QUARTERLY EX-DIVIDEND DATE
Custodian Reit , JPMorgan Claverhouse Inv Trust, SQN Asset Finance Income Fund Limited, Toro Limited , Unilever
Q4
Royal Dutch Shell 'A', Royal Dutch Shell 'B'
FINALS
AstraZeneca, Primary Health Properties, Royal Dutch Shell 'A', Royal Dutch Shell 'B', Smith & Nephew
SPECIAL DIVIDEND PAYMENT DATE
Scottish Inv Trust
EGMS
Glenwick
AGMS
Compass Group, Connect Group
TRADING ANNOUNCEMENTS
Compass Group
FINAL DIVIDEND PAYMENT DATE
Scottish Inv Trust, Topps Tiles, WH Smith
FINAL EX-DIVIDEND DATE
CVC Credit Partners European Opportunities Ltd EURO, CVC Credit Partners European Opportunities Ltd GBP, Imperial Tobacco Group, P2P Global Investments C, Terra Capital, Urban&Civic , Victrex plc |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks push higher as investors sift through earnings European stocks rose in early trade, boosted by a late recovery on Wall Street and steadying oil prices.
At 0900 GMT, the benchmark Stoxx Europe 600 index and France's CAC 40 were both up 0.8%, while Germany's DAX was 0.9% firmer.
Oil prices were in the black but well off the highs reached on Wednesday on the back of dollar weakness and growing hopes that an emergency meeting will lead to a production cut deal between OPEC and non-OPEC countries.
West Texas Intermediate was up 0.5% at $32.45 a barrel and Brent crude was 0.3% higher at $35.14.
In corporate news, EasyJet flew higher after the budget airline said passenger numbers rose 6.3% in January compared with the same month in 2015 to 4.28m.
Oil major Shell posted strong gains despite reporting an 80% drop in full year profit amid plunging oil prices.
Vodafone shares edged higher after it posted an improvement in third quarter revenue growth.
On the downside, Credit Suisse was sharply lower after announcing its first annual loss since 2008.
Daimler was also under pressure after the car maker said it expects growth to slow down this year and forecast only moderate gains in revenue and earnings.
Pharmaceuticals giant AstraZeneca was under the cosh after it cautioned that earnings per share and revenue for the year will drop.
Investors were also digesting comments from European Central Bank chief Mario Draghi, who said acting too late on low inflation was more risky than acting too early.
Speaking at a conference at the Bundesbank, Draghi said: "Adopting a wait-and-see attitude and extending the policy horizon brings with it risks: namely a lasting de-anchoring of expectations leading to persistently weaker inflation."
"Draghi put on his best Braveheart impression as he said that he would not surrender to low inflation without stating what or when new measures would be put in place. That's the big piece of news that the global markets want to hear, and it would also have helped out Mark Carney who is due to give press conference with the BoE rate announcement later today," said James Hughes, chief market analyst at GKFX.
"Speculation will grow on a move to take more rates negative by the ECB, and expectations are growing that we could well see more movement at the March meeting."
The Bank of England rate announcement and Inflation Report are due at 1200 GMT. In the US, non-farm productivity is at 1330 GMT, along with initial jobless claims, while industrial new orders are at 1500 GMT. |
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| | US Market Report | | US close: stocks rebound as oil prices soar 8% US stocks rebounded on Wednesday, responding to an 8% jump in oil prices.
The Dow Jones Industrial Average finished the day up 183.19 points, or 1.1%, at 16,366.73, and the S&P 500 closed 9.5 points, or 0.5% higher at 1,912.53.
It was the Nasdaq Composite that bucked the trend, down 12.71 points, or 0.3% at 4,503.24.
Data from the Energy Information Administration (EIA) during the day said commercial crude oil inventories increased 7.8m barrels to 502.7m barrels last week, compared to analysts' estimates for a rise of 4.0m barrels.
Crude oil refinery inputs in the US averaged more than 15.6m barrels per day (bpd) during the period, 24,000 bpd less than the prior week's average.
The American Petroleum Institute had said late Tuesday that the US crude stockpiles rose 3.8 million barrels last week by its count, less than gains in the previous week.
After the closing bell in New York, Brent crude was up 7.23% to $35.27 a barrel, and West Texas Intermediate was up 8.2% to $32.55.
The lift in oil led to upward movements in the energy and material sectors in particular. ExxonMobil led the risers, up 5.2%, while Chevron was up 4.17%.
Meanwhile, the dollar suffered its worst day in the seven years since the Federal Reserve announced the start of its Treasury bond-buying programme.
It was 1.78% weaker against the yen, at JPY 117.84, 1.69% down against the euro, at EUR 0.9003, and slipped 1.3% against the pound sterling, at £0.6848.
On the companies front, Edwards Lifesciences finished the day up 8.3% after reporting better-than-expected fourth quarter numbers, including sales growth of 17% to $2.5bn.
Cadbury and Kraft Foods owner Mondelez was blaming the economy and currency fluctuations on Wednesday for its 17% drop in sales to $17bn, sending stocks tumbling down 6.48%.
S&P 500 - Risers
Chesapeake Energy $3.36 +12.37%
Freeport-McMoRan $2.85 +11.49%
Newmont Mining $22.34 +11.31%
Murphy Oil $19.26 +10.50%
Southwestern Energy $8.97 +9.79%
Hess $42.99 +9.22%
Consol Energy $8.48 +8.58%
Spectra Energy $28.41 +8.48%
Edwards Lifesciences $83.32 +8.33%
Alcoa $7.55 +8.32%
S&P 500 - Fallers
National-Oilwell Varco $28.00 -8.71%
Marathon Petroleum $37.20 -7.62%
Valero Energy $60.94 -6.65%
Robert Half International $39.24 -6.59%
Mondelez International $39.23 -6.48%
Lowes Companies $67.42 -6.19%
Alpabet $726.95 -4.93%
Yahoo $27.68 -4.75%
Amazon.com $531.07 -3.81% |
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| | Newspaper Round Up | | Thursday newspaper round-up: Hutchison, house prices, Sports Direct, SSE Mobile phone prices for tens of millions of UK customers would be frozen for five years as part of a £5bn investment drive by Li Ka-shing's CK Hutchison to win over competition watchdogs to its £10.5bn acquisition of O2. The merger of Hutchison's Three and O2 would create the country's largest mobile group, with control over about 40 per cent of the market. That has raised concerns among regulatory authorities in the UK and Brussels, who worry that reducing the number of mobile operators from four to three could lead to skyrocketing prices and falling investment. - Financial Times
It is a staple of pub conversations for London's young professionals: if I move to (insert name of formerly down-at-heel but now up-and-coming area here) will I be able to afford to buy? Increasingly, the answer is "no". Fresh analysis of official data shows that in more than half of London's postcodes, the average property now costs in excess of £500,000. - Financial Times
Sports Direct has dramatically backed down from its legal battle with Rangersfootball club and abandoned efforts to prevent disclosure of the pair's joint venture, which has made the Old Firm club about 4p from every pound spent in its Ibrox store. An interim gagging order was imposed last summer, blocking Rangers from publicly revealing details of its agreement with the retailer, which contains swingeing clauses and was already subject to commercial confidentiality agreements. By continuing with efforts to extend the order, Sports Direct's founder, Mike Ashley, who owns 55% of the nationwide chain and about 9% of Rangers, faced being called to the high court to give evidence. - Guardian
EasyJet founder Sir Stelios Haji-Ioannou's budget food store, which charges just 25p each for everyday groceries, has been forced to close temporarily after less than two days as it has run out of stock. EasyFoodstore closed on Wednesday afternoon and is expected to reopen on Friday morning after it has re-stocked the shelves. - Guardian
SSE has announced plans to shut most of its Fiddler's Ferry coal-fired power plant in April, wiping 1.5 gigawatts of power capacity from the UK grid and worsening the looming energy crisis next winter. The energy giant said it intended to shut three out of four units at the loss-making Cheshire power station, reneging on a Government subsidy contract to keep them running until 2018-19 and putting 213 jobs at risk. - Telegraph
A British exit from the European Union will not open the door to a "golden world" of deregulation, according to the deputy governor of the Bank of England. Andrew Bailey said prime minister David Cameron's renegotiations with Brussels had "a way to go" before the government could say safeguards for Britain's financial services industry had been secured. - Telegraph
Oil prices will rebound by up to 50 per cent by the end of the year as slumping American output helps to rebalance the global market, according to a consensus forecast by analysts. They are predicting that the price of a barrel of Brent crude will rise by more than $15 per barrel by the end of the year to between $46 and $48, according to a median of 17 estimates released yesterday by Bloomberg. - The Times | | |
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