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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 decline as BIS warns of "gathering storm" in global economy The FTSE 100 was on the back foot on Monday after the Bank of International Settlements (BIS) warned of a "gathering storm" in the global economy.
In its latest quarterly report Swiss-based bank BIS said the global economy could spiral downwards as markets lose faith in the "healing powers" of central banks.
BIS said recent policy measures by the world's central banks was not bringing confidence to the markets amid concerns over China's economy and the slump in oil and commodity prices.
Head of the BIS monetary and economics department, Claudio Borio, said central banks are running out of tools to tackle sluggish growth as interest rates are taken negative. Bario added that mounting debt, particularly in emerging markets, pointed to a "gathering storm".
"The latest turbulence has hammered home the message that central banks have been overburdened for far too long post-crisis," Borio said.
"We may not be seeing isolated bolts from the blue, but the signs of a gathering storm that has been building for a long time."
Connor Campbell, financial analyst at Spreadex, said the remarks do not bode well for the European Central Bank's policy meeting on Thursday, which "already faces a weighty set of expectations". The market is pricing in a 13 basis point cut to the deposit facility rate, a six-month extension of quantitative easing and a £10bn increase in pace of QE.
On Monday's agenda, a report showed German factory orders fell 0.1% in January from a month ago, better than the 0.3% decline that was forecast by analysts.
A report on Eurozone investor confidence is due at 0930 GMT and the US sees Federal Reserve policymakers Lael Brainard and Stanley Fischer speak at separate events at 1700 GMT and 1800 GMT respectively.
In company news, Anglo American's shares fell after UBS downgraded the stock to 'sell' from 'neutral', saying the risk/reward was not attractive.
Old Mutual jumped amid reports that it was planning a £9bn split into numerous standalone companies, which could lead to a takeover battle for some of its biggest operations. The company responded to reports by saying that "all options for the strategic review are being considered, but no decision has yet been made".
Meanwhile, oil prices gained with Brent crude rising 1.17% to $39.18 per barrel and West Texas Intermediate increasing 1.23% to $36.37 at 0913 GMT. |
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| Market Movers
FTSE 100 (UKX) 6,162.07 -0.60%
FTSE 250 (MCX) 16,883.84 -0.28%
techMARK (TASX) 3,115.97 -0.68%
FTSE 100 - Risers
Old Mutual (OML) 195.70p 8.90%
St James's Place (STJ) 905.50p 5.41%
Standard Life (SL.) 358.20p 1.79%
ITV (ITV) 234.70p 1.73%
Admiral Group (ADM) 1,969.00p 1.29%
Persimmon (PSN) 2,017.00p 1.26%
WPP (WPP) 1,550.00p 1.24%
Berkeley Group Holdings (The) (BKG) 3,046.00p 1.20%
Experian (EXPN) 1,215.00p 1.00%
Barratt Developments (BDEV) 560.00p 0.99%
FTSE 100 - Fallers
Glencore (GLEN) 154.25p -3.59%
Randgold Resources Ltd. (RRS) 6,415.00p -3.02%
GKN (GKN) 285.80p -2.62%
Aberdeen Asset Management (ADN) 278.90p -2.48%
InterContinental Hotels Group (IHG) 2,675.00p -2.19%
Inmarsat (ISAT) 913.50p -1.98%
Fresnillo (FRES) 940.50p -1.93%
BHP Billiton (BLT) 851.80p -1.84%
Barclays (BARC) 171.20p -1.78%
Whitbread (WTB) 3,736.00p -1.76%
FTSE 250 - Risers
Tullow Oil (TLW) 230.70p 6.41%
Indivior (INDV) 165.20p 3.83%
Ophir Energy (OPHR) 85.95p 3.43%
Rotork (ROR) 192.30p 2.18%
Bovis Homes Group (BVS) 926.00p 1.54%
Marshalls (MSLH) 297.30p 1.47%
Rightmove (RMV) 3,974.00p 1.43%
Fidelity European Values (FEV) 167.80p 1.39%
Pendragon (PDG) 36.14p 1.35%
Galliford Try (GFRD) 1,458.00p 1.32%
FTSE 250 - Fallers
Just Eat (JE.) 397.50p -6.27%
Mitie Group (MTO) 280.50p -4.62%
Ocado Group (OCDO) 258.50p -3.65%
Howden Joinery Group (HWDN) 463.00p -3.22%
Amec Foster Wheeler (AMFW) 474.70p -2.63%
Cineworld Group (CINE) 486.10p -2.43%
Ashmore Group (ASHM) 268.30p -2.19%
Jimmy Choo (CHOO) 132.10p -2.15%
Melrose Industries (MRO) 340.30p -1.96% |
| | Monday 07 March
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Escher Group Holdings, One Media IP Group, Pennant International Group, Telecom Egypt SAE GDS (Regs), Telit Communications
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks edge lower as investors book profits after recent gains European stocks edged lower in early trade, with investors booking a few profits following recent gains as the focus shifts to this week's European Central Bank meeting.
At 0910 GMT, the benchmark Stoxx Europe 600 index was down 0.5%, Germany's DAX was down 0.9% and France's CAC 40 was off 0.5%.
Meanwhile, oil prices were in the black. West Texas Intermediate was up 1.7% to $36.52 a barrel while Brent crude was 1.4% higher at $39.26.
"European markets have opened the week slightly lower, pausing for breath after the 10% gains seen over the last three weeks. Investors, whose profit and loss may have looked awful a month ago, now have a difficult decision to make in determining whether this is a good exit point, or if global stock markets will continue to trend higher," said Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor.
"China's National People's Congress has confirmed the government's priority of sustaining growth in the face of painful structural change. However, with little new information released so far this week there has been nothing said that might push markets higher. This is reflected in weaker industrial metal prices this morning, although oil continues to recover from its recent lows."
Over the weekend, China outlined plans for an expansion of between 6.5% to 7% for this year, down from last year's target of around 7% and weaker than last year's 6.9% rate.
On the corporate front, shares in EDF tumbled after the French energy company confirmed that chief financial officer Thomas Piquemal has quit. Although the group did not give a reason for his exit, press reports over the weekend suggested he was leaving due to concerns over the Hinkley Point nuclear plant.
In London, Old Mutual surged after the insurer said it was considering all the options available under its strategic review amid media reports it is planning a multi-billion pound break-up.
Monday's economic calendar is pretty light, with no major Eurozone data releases due. This week, the focus will be on the ECB's rate announcement and ensuing press conference on Thursday.
Deutsche Bank said expectations are once again running high ahead of the meeting but some caution is warranted.
It said the market was pricing in a 13 basis points facility cut, a six-month extension of quantitative easing and a €10bn increase in the pace of QE.
Deutsche Bank said: "The ECB could in addition announce some term liquidity easing measures such as an extension of the existing TLTROs and/or further TLROs. These term liquidity measures could ease some of the pressures on the European banking system but are unlikely to be hugely significant as the refinancing pressures on the European banking system are not particularly elevated at present and banks need to maintain market access and issue 'bail-in able' debt from a regulatory perspective." |
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| | US Market Report | | US close: Technical resistance brakes rally, strategists very cautious Wall Street gained at the end of the week on news that employers added more positions than forecast in February, although wages unexpectedly declined on the month, while some leading strategists and well-known investors sounded a very cautious note.
In an interview with Bloomberg TV, famed investor Jim Rogers said he was certain the US economy would fall into recession this year.
"It's been seven years, eight years since we had the last recession in the U.S., and normally, historically we have them every four to seven years for whatever reason-at least we always have," Rogers said.
In a similar vein, on Thursday HSBC strategists reportedly raised the weighting of cash in their recommended asset allocation by 11 percentage points to 17%, telling clients that "cash is King in a world with debt overhangs".
The Dow Jones Industrial Average notched up a gain of 62.87 points or 0.37% to finish at 17,006, while the S&P 500 advanced 0.33% to 1999.99 - paring its year-to-date loss to 2.2% - and the Nasdaq Composite tacked another 0.20% to end the day at 4,717.02.
To take note of, gains in the S&P 500 were capped by technical resistance in the form of the gauge's 200-day moving average.
Total non-farm payrolls rose by 242,000 last month, beating analysts' expectations for a 195,000 increase, the Labor Department revealed. The unemployment rate was unchanged at 4.9% in February, as expected by markets.
While the non-farms number came in better than anticipated, average hourly earnings fell unexpectedly in February by 0.1% on the month to $25.35. Economists had pencilled in a 0.2% month-on-month rise in average hourly earnings in February following a 0.5% gain in January.
On the year, hourly earnings rose 2.2% in February compared to 2.5% year-on-year growth in January and analysts' forecasts for no change.
"The rebound in hiring was driven by the service-providing sector, which added 245k jobs on the month. Continued job gains of 200k or more per month are more than enough to keep the unemployment rate trending lower. We no longer see any substantive slack in labor markets.
"We continue to expect the FOMC to keep rates unchanged at its March meeting; however, consistent job growth and further improvement in other macroeconomic data could raise risks of a move as early as April. Our baseline forecast of rate hikes in June and December remains unchanged," Barclays's Jesse Hurwitz said in a research note sent to clients.
West Texas Intermediate crude oil futures continued rising, closing up by 0.54% to $38.93 per barrel, helping to fuel gains in the oil patch.
Baker Hughes's weekly US oil rig count revealed a drop of 8 active rigs targeting oil to 392, the least since December 2009.
The KBW index of bank stocks ended the session up by 0.83% to 65.49 points.
Markit's CDX North American High Yield Index, a gauge of credit-default swaps linked to the debt of 100 'junk-rated' firms, fell for a eighth day to the lowest level of the year, according to Bloomberg.
At the sector level, the best performance was seen in the following industrial groups: Non-ferrous metals: (6.92%), Paper (3.49%) and Forestry (3.49%).
As far as individual stocks are concerned, shares in Big Lots rallied after the retailer's fourth quarter net income beat expectations.
Staples dropped after the office supplies retailer said it swung to a profit of $86m in the fourth quarter versus a loss of $260m the previous year.
Hewlett-Packard advanced after the company's first quarter earnings and revenue released late on Thursday surpassed analysts' forecasts.
Facebook slumped following a media report that the social network is set to pay millions of pounds more in UK tax after a major shake-up of its tax structure.
According to the BBC, profits from the majority of its advertising revenue initiated in Britain will now be taxed in the UK. The company will no longer route sales through Ireland for its largest advertisers, which include Tesco, Sainsbury's, Unilever and WPP.
The yield on the benchmark 10-year US Treasury note rose four basis points to 1.87%.
S&P 500 - Risers
Chesapeake Energy Corp. (CHK) $5.08 +18.97%
Transocean Ltd. (RIG) $12.71 +17.36%
Ensco Plc. (ESV) $12.36 +13.08%
Murphy Oil Corp. (MUR) $23.70 +11.53%
Marathon Oil Corp. (MRO) $11.00 +10.33%
Freeport-McMoRan Inc (FCX) $9.74 +6.92%
Southwestern Energy Co. (SWN) $7.83 +6.68%
Genworth Financial Inc. (GNW) $2.88 +6.67%
ConocoPhillips (COP) $41.12 +6.64%
Apache Corp. (APA) $48.04 +6.54%
S&P 500 - Fallers
Symantec Corp. (SYMC) $16.62 -19.01%
H&R Block Inc. (HRB) $27.76 -15.62%
EQT Corp. (EQT) $56.34 -5.60%
GameStop Corp. (GME) $31.23 -4.52%
CF Industries Holdings Inc. (CF) $34.59 -4.42%
Tenet Healthcare Corp. (THC) $27.06 -3.67%
Wynn Resorts Ltd. (WYNN) $85.44 -3.29%
Cabot Oil & Gas Corp. (COG) $21.47 -3.16%
FMC Technologies Inc. (FTI) $25.68 -2.91%
Staples Inc. (SPLS) $9.60 -2.74%
Dow Jones I.A - Risers
E.I. du Pont de Nemours and Co. (DD) $63.18 +2.05%
Caterpillar Inc. (CAT) $72.84 +1.52%
Apple Inc. (AAPL) $103.01 +1.49%
Boeing Co. (BA) $121.07 +1.22%
Goldman Sachs Group Inc. (GS) $156.84 +0.97%
Wal-Mart Stores Inc. (WMT) $66.78 +0.97%
United Technologies Corp. (UTX) $97.00 +0.93%
General Electric Co. (GE) $30.46 +0.79%
Procter & Gamble Co. (PG) $83.49 +0.78%
Travelers Company Inc. (TRV) $110.40 +0.55%
Dow Jones I.A - Fallers
Home Depot Inc. (HD) $125.56 -0.98%
Microsoft Corp. (MSFT) $52.03 -0.61%
Pfizer Inc. (PFE) $29.71 -0.60%
Walt Disney Co. (DIS) $98.48 -0.34%
Nike Inc. (NKE) $61.26 -0.34%
Cisco Systems Inc. (CSCO) $26.80 -0.26%
Verizon Communications Inc. (VZ) $51.81 -0.15%
Johnson & Johnson (JNJ) $106.50 -0.14%
Exxon Mobil Corp. (XOM) $82.29 -0.13%
Merck & Co. Inc. (MRK) $52.08 -0.04% |
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| | Newspaper Round Up | | Monday newspaper round-up: BCC leader, EDF, FCA on banks John Longworth resigned on Sunday night as director-general of the British Chambers of Commerce after being drawn into a political row over his support for the UK to leave the European Union. The surprise decision illustrates the increasingly febrile atmosphere around the impending referendum on EU membership on June 23. - Financial Times
The chief financial officer of EDF, the French utility, has resigned following an internal disagreement over whether to push ahead next month with the Hinkley Point reactor project in the UK. According to two people familiar with the situation, Thomas Piquemal quit amid concerns that plans to make the final investment decision so soon put the group's entire financial future in jeopardy. - Financial Times
Big six energy supplier Npower is set to axe 2,500 jobs from its UK business after a dismal 2015 in which it hemorrhaged customers due to a consistently poor service record. Sky News has reported that plans for a 20pc staff cut will be outlined this week, at the same time that its German parent company RWE is expected to report further losses in its full year results. - Telegraph
Increasing female participation in the British labour force to match the level reached in Sweden could add £170bn to the UK economy and boost GDP by 9pc, according to PwC. Six out of 10 women in Sweden are in full-time employment and 13pc work part-time - giving the Scandinavian country one of the highest female employment rates in the OECD - compared to 42pc and 26pc respectively in the UK. - Telegraph
The City's top regulator has said a new system designed to hold bank executives to account is "not about trying to get heads on sticks". The new regulatory regime, which came into force on Monday and holds top executives responsible for failures in banks, has been watered down since it was first proposed, though Tracey McDermott, the acting head of the Financial Conduct Authority, insisted it would still have a major impact. - Guardian
Women are likely to earn £300,000 less than men over their working lives, according to a new analysis that has sparked fresh calls for more shared parental leave to close the UK's stubborn gender pay gap. Before International Women's Day on Tuesday, figures show a gap of £5,732, or 24%, in average full-time annual salaries between women and men - more than four decades after the Equal Pay Act of 1970 was introduced. - Guardian
The global economy is heading for a storm as faith in policymakers dwindles, according to a stark warning from one of the world's most respected financial institutions. The uneasy calm in financial markets last year has given way to turbulence, the Bank for International Settlements, known as the central bank for the world's central banks, said in its latest quarterly report. - The Times
Sir Philip Green is in talks with the owners of BHS over a possible contribution to the struggling chain's gaping pension deficit, amid fears that 20,000 present and former staff may not receive their full pensions. BHS, which was sold by Sir Philip's Arcadia Group last year for a nominal £1, announced plans last week to scythe its rent bill as part of a rescue deal with landlords. - The Times |
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