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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 dovish Yellen speech UK stocks rose on Wednesday as oil prices recovered and the markets assessed dovish remarks from Federal Reserve Chair Janet Yellen.
Yellen on Tuesday said the central bank should proceed with caution on raising interest rates amid looming global risks to the US economy, including low oil prices and a slowdown in China.
Speaking at the Economic Club of New York, she said the Fed will monitor a number of factors in its policy decision such as the pace of global growth, inflation, the strength of the dollar and commodities.
"It seems that the markets interpreted Yellen's goals as somewhat unrealistic and reacted accordingly," said Rabobank.
"The odds that the Fed may hike in April fell to virtually zero from already low 6% before her speech."
Meanwhile, oil prices rebounded from the previous day's lows. Brent crude increased 1.4% to $39.73 per barrel and West Texas Intermediate rose 1.7% to $38.98 per barrel at 0857 GMT.
Weekly US crude oil inventory data from the Department of Energy at 1630 BST will be closely followed amid concerns about the market.
The US will see the private payrolls report from ADP at 1415 BST. The report comes ahead of the all-important non-farm payrolls on Friday.
On the corporate front, mining stocks reversed declines from the prior day with Anglo American, BHP Billiton and Glencore among the biggest risers.
William Hill was under the cosh after Morgan Stanley downgraded the stock to 'underweight' from equalweight' and cut the target to 290p from 425p following the group's profit warning last week.
Premier Foods rallied after US spice giant McCormick increased its offer for the company from 60p to 65 per share, valuing the Mr Kipling to Oxo Cubes group at £1.5bn. |
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| | Market Movers FTSE 100 (UKX) 6,184.40 1.29%
FTSE 250 (MCX) 16,931.37 1.04%
techMARK (TASX) 3,126.05 1.04% FTSE 100 - Risers Anglo American (AAL) 512.60p 6.99%
Standard Chartered (STAN) 467.80p 6.45%
BHP Billiton (BLT) 788.80p 5.17%
Rio Tinto (RIO) 1,956.00p 4.99%
Glencore (GLEN) 150.85p 4.90%
Fresnillo (FRES) 942.50p 3.06%
BP (BP.) 354.20p 2.43%
Antofagasta (ANTO) 464.90p 2.40%
Johnson Matthey (JMAT) 2,747.00p 2.31%
Old Mutual (OML) 195.60p 2.30% FTSE 100 - Fallers Marks & Spencer Group (MKS) 399.40p -1.26%
Informa (INF) 692.50p -0.43%
Legal & General Group (LGEN) 232.50p -0.04%
SABMiller (SAB) 4,248.50p -0.04%
easyJet (EZJ) 1,525.00p 0.00%
Carnival (CCL) 3,550.00p 0.00%
Babcock International Group (BAB) 949.00p 0.05%
ITV (ITV) 243.50p 0.08%
Next (NXT) 5,640.00p 0.09%
Sky (SKY) 1,030.00p 0.19% FTSE 250 - Risers Aberdeen Asset Management (ADN) 272.00p 6.00%
Centamin (DI) (CEY) 89.00p 5.89%
Evraz (EVR) 87.05p 5.39%
Ashmore Group (ASHM) 289.50p 4.25%
Petrofac Ltd. (PFC) 906.50p 4.20%
Vedanta Resources (VED) 324.00p 3.51%
Kaz Minerals (KAZ) 163.50p 3.48%
Tullow Oil (TLW) 199.70p 3.36%
Investec (INVP) 502.50p 3.35%
Weir Group (WEIR) 1,109.00p 3.26% FTSE 250 - Fallers Lancashire Holdings Limited (LRE) 533.00p -2.02%
Dunelm Group (DNLM) 908.00p -2.00%
Debenhams (DEB) 72.60p -1.89%
Aldermore Group (ALD) 216.40p -1.64%
William Hill (WMH) 330.70p -1.20%
Mitie Group (MTO) 250.60p -0.63%
Micro Focus International (MCRO) 1,563.00p -0.57%
Hastings Group Holdings (HSTG) 169.10p -0.53%
QinetiQ Group (QQ.) 228.90p -0.48%
Assura (AGR) 52.65p -0.38% |
| | UK Event Calendar | | INTERIMS
CAP-XX Limited, Diurnal Group, Sinclair Pharma
INTERIM DIVIDEND PAYMENT DATE
Darty, Genus
FINALS
Akers Biosciences, Inc. , Avengardco Investments Public Ltd GDR, Biome Technologies, Cathay International Holdings Ltd., Circle Holdings , Learning Technologies Group , London Capital Group Holdings, Manx Telecom , Personal Group Holdings, XLMedia
ANNUAL REPORT
Nichols
EGMS
Canadian General Investments Ltd., Edita Food Industries S.A.E. GDR (REGS)
AGMS
Aukett Swanke Group , Edita Food Industries S.A.E. GDR (REGS), Local Shopping REIT, Milestone Group, Non-Standard Finance, Sula Iron & Gold, Temple Bar Inv Trust |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise as investors welcome Yellen's dovish stance European stocks rose in early trade, taking their cue from an upbeat session on Wall Street as investors welcomed dovish comments from Federal Reserve Chair Janet Yellen.
At 0845 BST, the benchmark Stoxx Europe 600 index was up 1.1%, Germany's DAX was 1% higher and France's CAC 40 was up 1.2%.
At the same time, oil prices gained after a report by the American Petroleum Institute late on Tuesday showed US crude stocks likely rose by 2.6m barrels last week to 534.4m, which was less than the 3.3m analysts had expected.
West Texas Intermediate was up 1.2% to $38.74 a barrel and Brent crude was 0.9% firmer at $39.50.
"European markets are playing catch-up higher, after an ultra-dovish Janet Yellen detailed a much more cautious and patient approach to normalising US monetary policy than the market had been expecting," said Rebecca O' Keeffe, head of investment at stockbroker Interactive Investor.
"This came as a particular surprise after the more hawkish comments over the past week from many of Yellen's colleagues and has helped to push the dollar sharply lower and risk appetite higher. Investors can only hope that the new data-dependent Fed will not be derailed by any unexpectedly 'good' economic data, starting on Friday with the latest employment report."
In a speech at the Economic Club of New York, Yellen said the central bank would move cautiously when it came to further interest rate hikes, striking a dovish tone that contrasted greatly with the hawkish comments last week from San Francisco Fed President John Williams, Atlanta Fed President Dennis Lockhart and St Louis Fed President James Bullard.
Yellen highlighted global economic uncertainty, including the slowdown in China and sliding oil prices as reasons behind the Fed's decision not to hike in January or March and said there would be "only gradual increases" going forward.
"Considering the risk to the outlook, I consider it appropriate for the committee to proceed cautiously in adjusting policy," Yellen said, noting that growth this year was expected to be weaker than previously thought.
A weaker dollar, which makes commodities more affordable for holders of other currencies, helped to push basic resources up, with the Stoxx 600 index for the sector 3.9% higher.
Meanwhile, the corresponding sub-index for oil and gas was up 2.1% as oil prices advanced.
In corporate news, German retailer Metro AG surged after announcing plans to split in two to boost the company's value.
On the macroeconomic front, investors will eye the release of the ADP employment report in the US at 1315 GMT, which is widely seen as a pre-cursor to Friday's all-important nonfarm payrolls. |
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| | Newspaper Round Up | | Wednesday newspaper round-up: Brexit, EDF, Tata, Sports Direct, BoE Bank of America is warning senior staff not to use the word "Brexit" when talking to clients as it tries to steer clear of the raging debate over the UK's membership in the European Union. The US bank last week told managers "not to provide opinions, not to influence voters, not to assume a particular result and not to engage in campaigning" in the run-up to a June 23 vote on whether the UK should leave the EU. - Financial Times
Senior engineers at French utility EDF have called for at least a two year delay at the controversial Hinkley Point nuclear project in the UK and recommended a redesign of the reactor technology. An internal white paper written by dissenting EDF engineers, which has been seen by the Financial Times, argues that Hinkley Point is so complex and untested that the company should announce a later completion date than the target of 2025. - Financial Times
The steel industry was dealt a hammer blow on Tuesday as it emerged that Tata plans to completely withdraw from its British operation, putting thousands of jobs at risk. The Indian conglomerate's board decided to pull out of the UK after rejecting a turnaround plan for Port Talbot, the nation's biggest steelworks. The South Wales plant employs around 4,000 who face an uncertain future as Tata now seeks a buyer for its British steel assets. - Telegraph
Janet Yellen, the head of US Federal Reserve, has vowed to move with extreme care before tightening monetary policy in the face of lingering global deflation and trouble in China. She swatted aside vociferous hawks on the Fed's voting committee (FOMC), more or less pledging to flood the economy with excess stimulus in order to guarantee a safety margin against any further deflationary shocks. - Telegraph
Sports Direct has upped its stake in Findel to nearly 30%, in the latest stage of its battle to wrest control of the online specialist. The sports retailer, controlled by Mike Ashley, announced it had acquired contracts for difference - a form of derivative - relating to 12.57% of Findel's shares. That takes its total interest in Findel to 29.79% - just below the 30% level at which it would have to launch a full takeover bid. - Guardian
The Bank of England has given David Cameron a significant boost ahead of the EU referendum by warning that a vote to leave risks causing a run on sterling, a credit crunch and higher interest rates for mortgage payers and businesses. Threadneedle Street said the closely fought campaign posed the "most significant near term" domestic risk to financial stability, after one of its key policy committees weighed up the consequences of Britain ending its 43-year relationship with the EU. - Guardian
Twenty-five million savers with National Savings & Investments face a big fall in their incomes after the Treasury-controlled organisation said that it would cut interest rates, as well as reducing the number of premium bond prizes by nearly 300,000. NS&I announced yesterday that it would reduce the rates on five of its variable products, as well cutting the fixed interest part of its index-linked savings certificates. - The Times |
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