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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 close: Stocks reserve losses following Belgium attacks The FTSE 100 closed slightly higher on Tuesday, reversing losses from earlier in the session after explosions in Brussels hurt investor sentiment.
At least 34 people were killed and several others injured after suicide bombers launched twin attacks on Brussels Zaventem airport and the city's Maelbeek metro station on Tuesday morning.
The Islamic State of Iraq and the Levant claimed responsibility for the explosions, according to AMAQ, a news agency close to the extremist group.
"Markets recovered some of the losses as the afternoon came around. The sad reality is that the more frequent these kinds of events become, the more markets become immune and the response in prices becomes less dramatic," said Jasper Lawler, market analyst at CMC Markets.
Travel and leisure stocks plunged in response to the reports including International Consolidated Airlines, InterContinental Hotels Group, TUI AG, Carnival and Thomas Cook.
On another downside for the market, UK inflation remained depressed at low levels in February as rising food prices were offset by falling prices for second-hand cars and bicycles.
According to the Office for National Statistics, the consumer price index remained at 0.3% in February compared to the same month last year, which was shy of consensus forecasts for a slight rise to 0.4%.
Core inflation, a rate that excludes volatile prices such as for fuel and food, held at 1.2%, rather than nudging up to 1.3% as had been expected.
In its February Quarterly Inflation Report, the Bank of England forecast inflation to average 0.4% in the first quarter.
"Low inflation coupled with an anaemic outlook for the global economy, means there is little appetite from the Bank of England to raise UK rates any time soon," said Maike Currie, investment director for personal investing at Fidelity International.
Elsewhere, German investor confidence came in a weaker than expected for March, according to the latest survey from the ZEW Center for European Economic Research in Mannheim.
The index of investor and analyst expectations rose 3.3 points from the previous month to 4.3 points, but this was below economists' forecast of 5.4.
In the US, Markit's flash US manufacturing PMI nudged up to 51.4 in March from 51.3 the previous month, missing forecasts of 51.9. The reading was well below the post-crisis average of 54.1 but above the 50 mark that separates expansion from contraction.
US house prices nudged higher in January led by increases in the Northwest and Southeast. The Federal Housing Finance Agency´s monthly house price index rose 0.5% month-on-month in January to 230.7.
Meanwhile, oil prices were mixed with Brent crude rising 0.26% to $41.65 per barrel and West Texas Intermediate falling 0.41% to $41.35 per barrel.
On the corporate front, Randgold Resources rallied as investors sought a safe haven following the Brussels attacks.
Wolseley jumped as the plumbing and heating products group stressed the resilience of its first-half performance, lifting the dividend 10%.
Sports Direct plunged after founder Mike Ashley said the company was not trading well. Ashley told The Times he was concerned that the sportswear retailer was losing momentum and said he would refuse to appear before a Commons select committee in June.
IG Group gained after posting an 18% rise in third-quarter revenue and saying it was entering the fourth quarter in a strong position.
Bellway advanced as it reported a 42.6% jump in pre-tax profit for the six months to the end of January. |
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| Market Movers
FTSE 100 (UKX) 6,192.74 0.13%
FTSE 250 (MCX) 16,896.53 0.20%
techMARK (TASX) 3,105.10 0.89%
FTSE 100 - Risers
Johnson Matthey (JMAT) 2,676.00p 2.96%
Shire Plc (SHP) 3,942.00p 2.60%
Paddy Power Betfair (PPB) 9,240.00p 2.38%
Provident Financial (PFG) 3,027.00p 2.23%
Tesco (TSCO) 201.65p 2.13%
3i Group (III) 457.50p 2.05%
Old Mutual (OML) 196.80p 1.92%
DCC (DCC) 5,985.00p 1.70%
Wolseley (WOS) 3,928.00p 1.66%
Randgold Resources Ltd. (RRS) 6,540.00p 1.63%
FTSE 100 - Fallers
TUI AG Reg Shs (DI) (TUI) 974.50p -2.84%
Standard Life (SL.) 360.60p -2.36%
Capita (CPI) 1,023.00p -2.29%
Barclays (BARC) 157.20p -2.06%
InterContinental Hotels Group (IHG) 2,764.00p -1.81%
Merlin Entertainments (MERL) 450.90p -1.68%
Land Securities Group (LAND) 1,080.00p -1.64%
Dixons Carphone (DC.) 431.30p -1.53%
International Consolidated Airlines Group SA (CDI) (IAG) 549.50p -1.52%
Carnival (CCL) 3,462.00p -1.42%
FTSE 250 - Risers
IG Group Holdings (IGG) 803.00p 6.29%
Allied Minds (ALM) 450.50p 5.23%
Micro Focus International (MCRO) 1,537.00p 4.84%
Worldwide Healthcare Trust (WWH) 1,720.00p 3.61%
Woodford Patient Capital Trust (WPCT) 91.55p 3.45%
Bellway (BWY) 2,555.00p 3.32%
Acacia Mining (ACA) 278.60p 3.19%
Drax Group (DRX) 275.20p 3.03%
Supergroup (SGP) 1,466.00p 2.73%
Fidessa Group (FDSA) 2,378.00p 2.50%
FTSE 250 - Fallers
Sports Direct International (SPD) 378.80p -10.62%
Thomas Cook Group (TCG) 88.55p -4.27%
Evraz (EVR) 87.40p -3.96%
Sophos Group (SOPH) 220.20p -3.42%
Euromoney Institutional Investor (ERM) 876.50p -3.15%
Telecom Plus (TEP) 907.00p -2.79%
Dechra Pharmaceuticals (DPH) 1,196.00p -2.37%
Pets at Home Group (PETS) 273.40p -2.36%
G4S (GFS) 188.80p -2.33%
Pendragon (PDG) 35.30p -2.32% |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Markets shake-off early losses European equity markets shook off early losses, with travel and leisure stocks managing to close well above their intra-day lows despite the terror attacks in Brussels.
The benchmark DJ Stoxx Europe 600 index was down 0.15% to 340.30, Germany's DAX was higher by 0.42% at 9990.00, France's CAC 40 was 0.09% stronger and the the FTSE Mibtel finished with gains of 0.01% at 18,698.82. The Stoxx 600 travel & leisure index fell 0.75% to 152.15.
Among individual stocks, InterContinental, TUI and Thomas Cook were all on the back foot, but the likes of Ryanair, EasyJet and IAG managed to recoup earlier losses.
The mood was sombre as market participants took in news of the events in Brussels. At least 34 people were killed and 187 injured as suicide bombers launched twin attacks on Brussels' Zaventem airport and the city's Maalbeek metro station.
Belgian broadcaster RTBF, citing a federal prosecutor, confirmed the airport bombings were a suicide attack. The explosions came just days after the arrest in Brussels of a suspected participant in the November terror attacks that killed 130 people in Paris.
Agence France Presse cited Pierre Meys, a spokesman for the Brussels fire brigade, as saying at least 21 people were dead in the two attacks, with 11 killed at the airport.
The entire metro system has now been shut down and the Belgian capital is on its highest state of terror alert.
The earlier part of Tuesday's session saw investors pile in to safety, with the yen, gold and government bonds all making strong gains, but this was less apparent by the closing bell.
"Investors will be fearful of the knock-on to European traveller sentiment which was clearly dented in the wake of the Parisian attacks last November (as well as those in Tunisia and Egypt)," said Mike van Dulken, head of research at Accendo Markets.
"It's always a sad day when terrorism has to be the driver to kick markets from their state of calm. It's also a sign of times when the market response is - in relative terms - so muted. Investors have had to develop a thick skin for such horrific events over the years and their encouraging defiance may again result in near-term recovery for the stocks affected."
Oil prices were mixed. West Texas Intermediate was down 0.3% to $41.41 a barrel and Brent crude was up by 0.527% at $41.76.
A senior OPEC delegate hsaid Saudi Arabia was prepared to sign up to an oil output freeze next month even if Iran does not take part.
In corporate news, holiday operator Thomas Cook suffered a blow not just from the Brussels attacks but also after it cautioned that summer bookings will be below the previous year following terrorist attacks in Turkey and Egypt.
Anglo American gained after announcing the successful completion of its bond buyback programme.
With so much going on on the geopolitical front, mixed data releases took a back seat.
The latest survey from the ZEW Center for European Economic Research in Mannheim revealed that German investor confidence was weaker than expected in March.
However, the IFO Institute painted a cheerier picture, as its business climate index climbed to 106.7 from 105.7 a month ago, higher than the consensus forecast of 105.9. |
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| | US Market Report | | US open: Stocks mixed as traders assess risks after Brussels attacks US stocks were mixed on Thursday as traders weighed economic data and assessed the risks following explosions in Belgium.
At 1529 GMT, the Dow Jones Industrial Average fell 0.11%, the S&P 500 dipped 0.02% but the Nasdaq rose 0.22%.
At least 34 people were killed and others injured as suicide bombers attacked launched twin attacks on Brussels Zaventem airport and the city's Maelbeek metro station on Tuesday morning.
Maggie de Block, the Belgian health minister, said 14 people died and 81 were injured in the airport explosions at 0700 GMT, which the Belgian prosecutor, cited by Belgian broadcaster RTBF, said were a suicide attack. The blasts come four days after the capture in Brussels of Salah Abdeslam, the main suspect in the jihadist attacks in Paris on 13 November 2015 that killed more than 130 people.
An hour later, 20 people were killed and 55 injured at Maelbeek metro station in central Brussels near the European Union buildings, metro operating firm Brussels Intercommunal Transport Company said, adding that the entire system is shut as a result.
The news sent shockwaves across global equity markets while safety plays such as gold and US Treasurys rose after the incident.
In economic data, Markit's flash US manufacturing PMI nudged up to 51.4 in March from 51.3 the previous month, missing forecasts of 51.9. The reading was well below the post-crisis average of 54.1 but above the 50 mark that separates expansion from contraction.
"While some comfort might be drawn from the marginal rise in the PMI compared to February, the rate of growth remains worryingly weak and the lack of a stronger rebound is a disappointment, given that many companies reported bad weather to have hit activity in the first two months of the year," said Markit's chief economist, Chris Williamson.
Separately, a measure of manufacturing activity in the lower US Atlantic region rose in March to its strongest level in nearly six years, the Richmond Federal Reserve said. The Richmond Federal Reserve's composite factory index rose to +22 points in March from -4 in February, surpassing expectations of 0.
US house prices nudged higher in January led by increases in the Northwest and Southeast. The Federal Housing Finance Agency´s monthly house price index rose 0.5% month-on-month in January to 230.7.
Meanwhile, oil prices wavered with West Texas Intermediate crude falling 0.16% to $41.45 per barrel and Brent rising 0.36% to $41.69 per barrel at 1541 GMT.
In company news, American Airlines declined after the company refuted earlier reports that the two explosions at Brussels international airport happened next to its check-in desk.
Other travel and leisure stocks including Expedia, Priceline and Carnival Corp. were also under pressure in the wake of the attacks. |
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| | Broker Tips | | Broker tips: Barclays, IAG, Bellway HSBC downgraded Barclays to 'hold' from 'buy' and cut the price target to 190p from 230p to reflect disappointment over the bank's dividend decision and the uncertain background for investment banking earnings.
"The restructuring story has been clouded by management's decision to cut 2016-17 dividends to 3p, which is less than half the current year payout," HSBC said.
Earlier this month, Barclays confirmed plans to sell its African business as it announced a 2% drop in full year profit and said it would slash its dividend.
Nevertheless, HSBC said Barclays' restructuring plan is coherent and will ultimately deliver a slimmed down group with acceptable profitability.
It argued that the proposed divestment of Barclays Africa Group Limited, whilst creating a void in the earnings line, should at least remove uncertainty regarding capital adequacy.
"Theoretically at least the upside from the elimination of non-core businesses should be considerable, but it doesn't look imminent," said HSBC.
HSBC cut its earnings per share forecasts for 2016-2017 to 11p and 23p from 24p and 33p, respectively.
Goldman Sachs said it expects International Consolidated Airlines to generate strong free cash flow (FCF) over the next two years.
The British Airways owner's valuation is attractive in the context of growth and returns, according to GS analysts.
The analysts said the company's growth would be driven by an improving load factor and premium volumes, higher first quarter margins and moderating industry summer capacity growth.
"IAG continues to strengthen its competitive position and medium-term return on capital prospects by improving its unit costs (fourth quarter unit cost excluding fuel -3.9%), increasing its exposure to concentrated markets (North Atlantic, Heathrow) and playing an active role in industry consolidation," the bank said in a note to investors.
"We expect strong FCF generation over 2016 to 2018 (average 9.5%) to underpin its dividend policy (25% payout; 4% yield) and support progressive deleveraging, thus strengthening further its balance sheet (2017E adjusted net debt/EBITDAR of 1.5x)."
Goldman reiterated its 'buy' rating and raised its target to 810p from 775p.
Bellway's shares gained on Tuesday as Canaccord Genuity reiterated its 'buy' rating and 3,390p target after the housebuilder's first half profits beat expectations.
In the six months to the end of January, pre-tax profit rose 42.6% to £226.6m, beating Canaccord's forecast of £216m.
Revenue rose 30.5% to £1.08bn as the number of homes sold was increased 11.6% to 4,188 compared with 3,754 the year before, while the average selling price increased 17.3% to £257,280.
Earnings per share came in at 148.7p from 103.5p in the same period a year ago and the company lifted its interim dividend 36% to 34p per share.
The interim dividend was raised 36% to 34.0p.
Bellway said the outlook was positive and housing completions for the full year are expected to increase by at least 10%, as is the average selling price. The operating margin, meanwhile, should approach 22% for the full year.
"We would expect consensus PBT to move up by around +5% on the back of these results. Reassuring set of results and outlook comments overall," said Canaccord analysts Aynsley Lanmin and Matthew Walker. |
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