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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 ECB stimulus boost UK stocks rallied on Friday as investors continued to digest the European Central Bank's bigger-than-anticipated stimulus package.
The ECB took more action than expected on Thursday to help bring inflation back towards the target of just below 2%.
The ECB unexpectedly slashed its main interest rate by 5 basis points (bps) to 0.00% and increased quantitative easing (QE) by €20bn. The monthly purchases under the asset purchase programme will be expanded to €80bn starting in April. The market had priced in a €10bn increase.
The ECB also cut the deposit facility rate by 10bps to -0.40%, but the move was expected.
The decision to lower the marginal lending facility rate to 0.25% from 0.30%, however, was not anticipated.
Another surprise was that investment grade bonds issued by non-bank corporations will be included in the list of assets for regular purchases.
"Following yesterday's wild, oil and Draghi-inspired, trading the European markets seem to have slept on the ECB stimulus package and decided it wasn't so bad after all, swiftly lifting away from the month lows hit at Thursday's close," said Connor Campbell, financial analyst at Spreadex.
An increase in oil price also provided a boost to the FTSE 100, with Brent crude rising 1.5% to $40.67 per barrel and West Texas Intermediate increasing 1.9% to $38.60 per barrel at 0850 GMT.
On Friday's economic calendar it will be relatively quiet with the only notable release being data on UK trade and construction output.
In company news, Old Mutual's shares fell as the company said it will separate its four underlying businesses - Old Mutual Emerging Markets (OMEM), Nedbank, Old Mutual Wealth (OMW) and OM Asset Management (OMAM). The group also reported annual revenue fell 12% to £13.7bn and adjusted pre-tax operating profit rose 4% to £1.7bn, although it was up 11% at constant exchange rates.
JD Wetherspoon shares climbed as the pub operator reported a 6.2% increase in first half revenue to £790.3m, and a 2.9% rise in like-for-like sales.
Aviva continued to gain a day after reporting a 20% increase in full year operating profit that was better than expected.
Computacenter slumped as it posted a 0.3% dip in full year revenue to £3.05bn, although it achieved a rise in adjusted pre-tax profit to £86.9 from £81.1m - a touch above consensus estimates. |
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| | Friday 11 March
INTERIMS
Wetherspoon (J.D.)
INTERIM DIVIDEND PAYMENT DATE
City of London Investment Group, Conviviality, Foresight VCT Infrastructure Shares
QUARTERLY PAYMENT DATE
Carnival
FINALS
Computacenter, Old Mutual, Taylor Wimpey
ANNUAL REPORT
Heavitree Brewery, Herald Inv Trust, Johnson Service Group
SPECIAL DIVIDEND PAYMENT DATE
Impax Asset Management Group, JPMorgan Russian Securities
AGMS
Hyundai Motor Company GDR (Reg S)
TRADING ANNOUNCEMENTS
SThree
FINAL DIVIDEND PAYMENT DATE
Brewin Dolphin Holdings, Impax Asset Management Group, JPMorgan Russian Securities, Zytronic |
| | Friday 11 March
INTERIMS
Wetherspoon (J.D.)
INTERIM DIVIDEND PAYMENT DATE
City of London Investment Group, Conviviality, Foresight VCT Infrastructure Shares
QUARTERLY PAYMENT DATE
Carnival
FINALS
Computacenter, Old Mutual, Taylor Wimpey
ANNUAL REPORT
Heavitree Brewery, Herald Inv Trust, Johnson Service Group
SPECIAL DIVIDEND PAYMENT DATE
Impax Asset Management Group, JPMorgan Russian Securities
AGMS
Hyundai Motor Company GDR (Reg S)
TRADING ANNOUNCEMENTS
SThree
FINAL DIVIDEND PAYMENT DATE
Brewin Dolphin Holdings, Impax Asset Management Group, JPMorgan Russian Securities, Zytronic |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks bounce back as investors continue to digest ECB measures European stocks pushed higher in early trade, rebounding from the previous session's losses as investors continued to assess the implications of the European Central Bank's latest stimulus measures.
At 0900 GMT, the benchmark Stoxx Europe 600 index was up 1.6%, Germany's DAX was 2% higher and France's CAC 40 was 2.1% firmer.
At the same time, West Texas Intermediate was up 2.2% to $38.66 a barrel and Brent crude was up 1.6% at $40.68. The Stoxx 600 oil and gas index advanced 1.7%.
"Traders who managed to hold their nerve through yesterday's late rout will be thanking their lucky stars this morning," said Mike McCudden, head of derivatives at Interactive Investor.
"Despite the ECB evidently running out of options, US equities managed a late surge and Asian markets largely ignored the panic. Commodities such as oil are lending their support as we see out the week, but one thing looks likely, as the VIX Index slowly starts to trend higher, we may be in for more volatility in the short - term."
On Thursday, the European Central Bank slashed its main interest rate by 5 basis points to 0.00% and increased quantitative easing by €20bn to €80bn from April. Market participants had been expecting a €10bn increase.
In addition, the central bank cut the deposit facility rate by 10bps to -0.40% and lowered the margin lending facility rate to 0.25% from 0.30%.
Stocks initially flew higher on the news but ended in the red as ECB chief Mario Draghi said in the press conference that policymakers were concerned that pushing rates too low could impact balance sheets, pouring cold water over prospects for further rate cuts.
In corporate news, Old Mutual fell after the financial services company said it was splitting up into four main businesses and posted a 5% increase in 2015 profit.
Deutsche Bank was on the front foot despite warning of a challenging first quarter, while London-listed pub chain JD Wetherspoon gained despite reporting a 3.9% decline in first half profit. |
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| | US Market Report | | US close: Wall Street runs in circle to end flat Wall Street was all mouth and no trousers on Thursday, ending the day back where it started despite bustling hither and thither against a backdrop of falling oil and bold action from the European Central Bank.
By the close, the Dow Jones Industrials was just on the wrong side of flat back at five points below the 17,000 level, down 0.02%, while the S&P 500 was marginally in the green, up 0.31 point or 0.02% to close at 1,989.57. The Nasdaq composite lost 12.2 points, or 0.26% to end the session at 4,662.16.
Earlier the indices had all moved higher after the ECB surprised strategists and economists with a barrage of stimulus measures, slashing its main 'refi' rate by five basis points (bps) to 0.00%, increasing quantitative easing (QE) by €20bn to €80bn until at least March 2017.
Another surprise was that investment grade bonds issued by non-bank corporations will be included in the list of assets for regular purchases.
Initially the euro dipped sharply against the dollar, but in his press conference after the measures were unveiled the central bank President Mario Draghi said the said he did not see the ECB cutting interest rates again, unless "new facts [...] change the situation and the outlook".
This sent the euro reversing aggressively back up against the dollar, for a gain of 1.7% by 2130 GMT.
Meanwhile, oil futures shed their spectacular overnight gains as US crude inventory data weighed on trading sentiment.
West Texas Intermediate crude oil futures were down 0.9% to $37.95 a barrel and Brent crude was 2.2% lower at $40.17.
Not only did US government data released late on Wednesday showed the country's crude stockpiles rose in line with analysts' expectations, but Reuters reported Iran was blocking a meeting between several of the world's major oil producers that was scheduled to take place in Russia on 20 March.
Moreover, Goldman Sachs said the recent surge in prices was not sustainable and the rout was by no means over. "In the current supply-driven market, demand hasn't really changed, it takes lower prices to push and keep supply below demand to create a deficit. As a result, higher prices are much harder to sustain in a supply-driven market since supply is primed to return with higher prices," the investment bank advised its clients.
Jobs data was also disappointing, with weekly initial unemployment claims in the States dropping 18,000 over the week ending on 5 March to reach 259,000, according to the Department of Labor. That was well below the 275,000 the consensus was expecting.
"The key point here is that claims remain close to their cycle - and all-time - lows, signalling no distress at all in the labor market, despite the obvious severe weakness in the energy sector and related manufacturing. These sectors are very small and their woes are being offset by strength elsewhere," wrote economist Ian Shepherdson of Pantheon Macroeconomics.
In corporate news, Box, an online file sharing and content management service, posted a smaller-than-expected loss of 26 cents per share for the fourth quarter, on revenue of $85m.
Meanwhile, mobile payments company Square said gross payment volume increased 47% in the fourth quarter to $10.2bn.
Nasdaq said it would acquire International Securities Exchange for $1.1bn.
The yield on the benchmark 10-year US Treasury note was higher by two basis points to 1.8989.
S&P 500 - Risers
United States Steel Corp. (X) $14.37 +14.68%
Dollar General Corp (DG) $83.23 +10.66%
Peabody Energy Corp. (BTU) $6.39 +8.49%
Freeport-McMoRan Inc (FCX) $9.60 +4.92%
Ensco Plc. (ESV) $10.97 +4.68%
Newmont Mining Corp. (NEM) $27.35 +4.63%
NRG Energy Inc. (NRG) $12.89 +4.29%
Dollar Tree Inc (DLTR) $79.82 +4.03%
ONEOK Inc. (OKE) $27.43 +3.63%
EQT Corp. (EQT) $59.99 +3.61%
S&P 500 - Fallers
Williams Companies Inc. (WMB) $15.89 -11.53%
CF Industries Holdings Inc. (CF) $33.64 -5.03%
Genworth Financial Inc. (GNW) $2.68 -3.94%
Endo International Plc (ENDP) $40.40 -3.33%
Vertex Pharmaceuticals Inc. (VRTX) $82.28 -2.78%
Tesoro Corp. (TSO) $86.08 -2.73%
GameStop Corp. (GME) $30.44 -2.72%
Alexion Pharmaceuticals Inc. (ALXN) $136.76 -2.68%
Whole Foods Market Inc. (WFM) $33.07 -2.51%
Legg Mason Inc. (LM) $31.19 -2.50%
Dow Jones I.A - Risers
Merck & Co. Inc. (MRK) $53.04 +1.30%
Intel Corp. (INTC) $31.25 +1.25%
Chevron Corp. (CVX) $93.94 +1.21%
Nike Inc. (NKE) $58.88 +0.94%
Coca-Cola Co. (KO) $45.23 +0.94%
Unitedhealth Group Inc. (UNH) $122.09 +0.82%
Goldman Sachs Group Inc. (GS) $151.02 +0.74%
McDonald's Corp. (MCD) $119.98 +0.28%
Johnson & Johnson (JNJ) $107.14 +0.28%
Travelers Company Inc. (TRV) $111.53 +0.18%
Dow Jones I.A - Fallers
E.I. du Pont de Nemours and Co. (DD) $62.16 -2.03%
Microsoft Corp. (MSFT) $52.05 -1.50%
JP Morgan Chase & Co. (JPM) $58.61 -0.86%
Cisco Systems Inc. (CSCO) $27.38 -0.83%
Procter & Gamble Co. (PG) $82.28 -0.82%
Caterpillar Inc. (CAT) $71.36 -0.71%
Visa Inc. (V) $70.22 -0.65%
Walt Disney Co. (DIS) $97.04 -0.63%
American Express Co. (AXP) $58.75 -0.51%
Pfizer Inc. (PFE) $29.59 -0.50%
Nasdaq 100 - Risers
Dollar Tree Inc (DLTR) $79.82 +4.03%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $163.39 +2.75%
Tractor Supply Company (TSCO) $88.84 +2.31%
Seagate Technology Plc (STX) $34.95 +2.16%
Applied Materials Inc. (AMAT) $19.57 +2.09%
Lam Research Corp. (LRCX) $75.23 +1.92%
Broadcom Limited (AVGO) $144.42 +1.73%
Mylan Inc. (MYL) $47.29 +1.59%
Texas Instruments Inc (TXN) $55.49 +1.35%
Illumina Inc. (ILMN) $155.06 +1.35%
Nasdaq 100 - Fallers
Endo International Plc (ENDP) $40.40 -3.33%
Vertex Pharmaceuticals Inc. (VRTX) $82.28 -2.78%
Alexion Pharmaceuticals Inc. (ALXN) $136.76 -2.68%
Whole Foods Market Inc. (WFM) $33.07 -2.51%
Liberty Global plc Series A (LBTYA) $35.17 -2.06%
Yahoo! Inc. (YHOO) $32.82 -2.06%
Bed Bath & Beyond Inc. (BBBY) $50.10 -2.01%
Liberty Global plc Series C (LBTYK) $34.46 -1.94%
Biomarin Pharmaceutical Inc. (BMRN) $83.60 -1.90% |
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| | Newspaper Round Up | | Friday newspaper round-up: LLoyds Bank, NZ zero hour contracts, Libor traders The US has been handed a proposal that would end the last vestiges of its control over the internet, touching off a potentially contentious political debate in Washington over the future of cyber space. The proposal was put forward on Thursday by the Internet Corporation for Assigned Names and Numbers (Icann), the international body that oversees the internet's addressing system. It would lead to the US handing over its role as the ultimate authority for internet naming, in return for an overhaul of Icann's governance arrangements intended to protect it from government meddling in future. - Financial Times
In 2009, Newham Council took what it thought was a canny financial bet: that interest rates would rise. The east London borough, the second most deprived local authority in England at the time, was an unlikely participant in the complicated world of structured finance. The council took out six loans worth £150m on which the rate of interest would fall if long-term interest rates rose: and vice-versa. But interest rates did not go up: they fell to an historic low. And now the council is facing mounting questions about its gamble. - Financial Times
Lloyds Bank has launched a new £1bn fund to help owners of commercial real estate improve the energy efficiency of their buildings. The bank claims that over the life of the fund, the amount of energy saved could be as much as 110,000 tonnes of carbon - equivalent to the output of more than 22,000 homes. Property owners will be able to access the fund, which is the first of its kind, after undergoing a test to assess how much energy efficiency a borrower can achieve. - Telegraph
Paintbox, the company that uses robots to paint Rolls-Royce, Bentley, Jaguar Land Rover and Aston Martin cars, has sealed a multi-million-pound deal with the Business Growth Fund (BGF), the venture capital fund backed by Barclays, HSBC, Lloyds and RBS. The Midlands-based company uses hi-tech machines to paint a host of luxury cars and turns over £50m a year, but has sought backing from venture capitalists and the banks to fund new robotic paint plants, with the first opening in Birmingham in the autumn. - Telegragh
Labour would borrow billions of pounds to fund public investment projects, while exerting an "iron discipline" over day-to-day spending, shadow chancellorJohn McDonnell has said, as he seeks to win back the party's reputation for economic competence. In an interview with the Guardian, he described shoring up Labour's fiscal credibility as "the struggle of a generation", but insisted that exerting tight control over spending did not signal the abandonment of Jeremy Corbyn's anti-austerity stance. - Guardian
Zero-hour contracts have been outlawed in New Zealand after parliament unanimously passed a bill to ban the controversial practice. Political parties across the board supported the ban, which is being hailed as a major victory for minimum wage workers, particularly in the fast-food industry. - Guardian
Two British citizens were sentenced to prison in New York last night after being convicted in the first US trial arising from a global investigation into manipulation of Libor, the leading benchmark for pricing financial transactions. Anthony Allen, Rabobank's former global head of liquidity and finance, was sentenced to two years in jail. Anthony Conti, a former senior trader, was sentenced to one year in prison. - The Times |
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