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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 fall ahead of UK GDP, Fed policy decision London stocks fell on Wednesday ahead of UK economic growth data and the Federal Reserve's announcement on interest rates.
The Office for National Statistics is forecast to reveal at 0930 BST that gross domestic product slowed in the first quarter to a 2.0% year-on-year increase from a previous 2.1% gain. The quarter-on-quarter growth is expected to ease to 0.4% from 0.6%.
In the US, the Fed is widely expected to keep interest rates unchanged amid a slowdown in global economic growth.
Many analysts are pricing in no chance of a rate hike over the next few meetings, and less than one full hike by the end of the year amid worries about the slowdown in the global economy.
"Back in October, the market was pricing in a probability of three hikes in 2016, and now we are pricing in just one hike by end-2017," said Society Generale.
Bank of America Merrill Lynch expects the Fed will raise interest rates this summer, potentially in June if the global market selloff ahead of the Brexit vote is limited. Otherwise, it sees an increase in July. The bank said global economic and financial conditions "have generally stabilised if not improved, and we expect further progress toward the Fed's dual mandate objectives over the coming months".
On the corporate front, shares in Barclays advanced on news that it has agreed to hold exclusive negotiations to dispose of its French retail banking and wealth businesses, according to European private equity group AnaCap Financial Partners.
Antofagasta climbed after saying first quarter copper production rose 7.3% year-on-year to 157,100 tonnes, adding that movements in the copper price over the period suggesting the market was beginning to stabilise.
Croda declined despite reporting a rise in first-quarter sales and reaffirming its outlook for the full year amid continued growth in the group's core businesses.
Standard Chartered reversed the previous day's rally after it reported a 59% drop in first quarter profit amid depressed commodity prices, volatility in Chinese markets and weak emerging market sentiment.
Meanwhile, oil prices rose with Brent crude up 1.78% to $46.57 per barrel and West Texas Intermediate up 1.5% to $44.75 per barrel. |
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| Market Movers
FTSE 100 (UKX) 6,267.80 -0.27%
FTSE 250 (MCX) 16,948.81 0.02%
techMARK (TASX) 3,080.15 -0.10%
FTSE 100 - Risers
Barclays (BARC) 178.80p 2.79%
Worldpay Group (WI) (WPG) 264.10p 2.25%
Informa (INF) 670.50p 1.59%
easyJet (EZJ) 1,483.00p 1.51%
ITV (ITV) 235.60p 1.20%
TUI AG Reg Shs (DI) (TUI) 1,015.00p 0.89%
Randgold Resources Ltd. (RRS) 6,355.00p 0.87%
Whitbread (WTB) 4,000.00p 0.78%
BT Group (BT.A) 432.45p 0.78%
ARM Holdings (ARM) 934.50p 0.75%
FTSE 100 - Fallers
Standard Chartered (STAN) 554.30p -2.99%
Tesco (TSCO) 179.15p -2.34%
BHP Billiton (BLT) 911.20p -1.68%
Rio Tinto (RIO) 2,186.00p -1.55%
Sainsbury (J) (SBRY) 284.40p -1.35%
Standard Life (SL.) 329.00p -1.23%
Lloyds Banking Group (LLOY) 69.16p -1.20%
Provident Financial (PFG) 2,918.00p -1.15%
HSBC Holdings (HSBA) 464.15p -1.12%
Berkeley Group Holdings (The) (BKG) 3,041.00p -1.07%
FTSE 250 - Risers
Centamin (DI) (CEY) 104.40p 3.26%
Amec Foster Wheeler (AMFW) 500.50p 3.09%
Grafton Group Units (GFTU) 714.50p 2.66%
Entertainment One Limited (ETO) 199.60p 2.46%
Balfour Beatty (BBY) 242.00p 2.37%
Paysafe Group (PAYS) 378.70p 2.35%
Tullow Oil (TLW) 248.30p 2.27%
OneSavings Bank (OSB) 292.50p 2.20%
Aldermore Group (ALD) 189.00p 2.16%
Pendragon (PDG) 35.00p 2.01%
FTSE 250 - Fallers
McCarthy & Stone (MCS) 236.20p -5.71%
Stagecoach Group (SGC) 259.90p -3.02%
Polar Capital Technology Trust (PCT) 569.50p -2.98%
CLS Holdings (CLI) 1,646.00p -2.89%
Weir Group (WEIR) 1,129.00p -2.42%
Millennium & Copthorne Hotels (MLC) 458.00p -2.39%
Elementis (ELM) 225.00p -2.39%
Workspace Group (WKP) 829.50p -2.07%
Michael Page International (MPI) 404.20p -1.65% |
| | UK Event Calendar | | Wednesday 27 April
INTERIMS
British American Tobacco, Character Group, Fenner, Proactis Holdings
INTERIM DIVIDEND PAYMENT DATE
Orchard Funding Group
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
FOMC Interest Rate (US) (19:00)
GFK Consumer Confidence (GER) (07:00)
M3 Money Supply (EU) (09:00)
MBA Mortgage Applications (US) (12:00)
Pending Homes Sales (US) (15:00)
Q4
Apax Global Alpha Limited
GMS
Societatea Commerciala De Distributie Si Furnizare A Energiei Electrice S.A. GDR (Reg S)
FINALS
Aseana Properties Ltd., Home Retail Group, Minds + Machines Group Limited (DI)
ANNUAL REPORT
Minds + Machines Group Limited (DI)
IMSS
Barclays, London Stock Exchange Group
EGMS
Matomy Media Group Limited (DI) , Societatea Commerciala De Distributie Si Furnizare A Energiei Electrice S.A. GDR (Reg S)
AGMS
Amec Foster Wheeler, Bank of America Corp., British American Tobacco, Countrywide, Devro, Fidessa Group, Genel Energy, Glanbia, Global Invacom Group Limited (DI), Greencoat UK Wind, Kennedy Wilson Europe Real Estate , Kerry Group 'A' Shares, Nichols, Opera Investments, Symphony International Holdings Ltd., Synectics
TRADING ANNOUNCEMENTS
Amec Foster Wheeler, Antofagasta, CRH, Croda International, Elementis, Henderson Group, London Stock Exchange Group, Stagecoach Group, Standard Life
UK ECONOMIC ANNOUNCEMENTS
CBI Distributive Trends Surveys (11:00)
GDP (Preliminary) (09:30)
Index of Services (09:30)
FINAL EX-DIVIDEND DATE
Rolls-Royce Holdings
Q1
Antofagasta, GlaxoSmithKline, Norsk Hydro ASA, Ooredoo Q.S.C. GDR (Reg S)
|
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks waver ahead of Fed announcement European stocks wavered in a tight range in early trade, as investors sifted through earnings ahead of the Federal Reserve's rate announcement.
At 0845 BST, the benchmark Stoxx Europe 600 index was down 0.3%, Germany's DAX was 0.2% lower and France's CAC 40 was 0.1% weaker.
At the same time, oil prices advanced, with West Texas Intermediate up 1.2% to $44.55 a barrel and Brent crude 1.2% firmer at $46.30.
"Equity markets remain tentative ahead of tonight's Fed decision and statement. No one is expecting a rate hike from the Fed today, nor is the market expecting a move in June," said Rebecca O'Keeffe, head of investment at Interactive Investor.
"However, with the US labour market continuing to recover, and rising commodity prices suggesting an imminent pick-up in inflation, the Fed may want to keep open the possibility of raising rates in June. There is therefore scope for an unpleasant surprise in the Fed's communication this evening versus the current dovish market expectations."
"The earnings season is showing up considerable disparity in sector performance, with the technology sector underperforming expectations, while oil companies continue to surprise on the upside. The significant differences in sector returns confirm what a stock-pickers market this is, underlining the opportunity available for active traders and funds versus their passive counterparts."
After the close on Tuesday, shares in technology giant Apple fell sharply after its first-quarter results revealed the first drop in revenue in 13 years as iPhone sales dropped for the first time ever.
In European corporate news, Barclays was a high riser. Although it posted a decline in first-quarter profit amid weakness in the investment banking division, the numbers were better than expected.
Delhaize was also in the black after the Belgian food retailer said net profit in the first quarter rose 291%.
Banco Santander pushed up after its first-quarter net profit and net interest income came in pretty much as expected, while oil giant Total gained after its quarterly profit beat analysts' estimates.
Adidas rallied after the German sports retailer lifted its full-year profit guidance for the second time in less than three months.
On the macroeconomic front, the latest findings by market research group GfK showed German consumer sentiment was set to improve markedly in May from April.
GfK said the overall index was forecasting 9.7 points for May compared to 9.4 points the month before, with growth for both economic and income expectations as well as propensity to buy.
Economists had been expecting the index to be unchanged at 9.4.
The Fed rate announcement is due after the European close at 1900 BST. |
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| | US Market Report | | US close: Markets mixed as Fed meeting begins Markets in New York ended mixed on Tuesday, with energy leading as oil prices climbed, and investors waited ahead of a number of corporate results and major central bank meetings.
The Dow Jones Industrial Average finished up 0.07% at 17,990.32, the S&P 500 was up 0.19% at 2,091.70, and the Nasdaq Composite finished 0.15% lower at 4,888.31.
It was the first four-day losing streak for the Nasdaq since 11 January.
Healthcare and information technology were the two big losses on the S&P 500, with tech closing 0.4% lower on the day, joining healthcare and financials as the negative sectors year-to-date.
"Today the standout sector is energy. People are beginning to look back to single stocks in this very beaten-up space. With crude prices stabilizing, people are reviewing equity stories and individual companies," said ITG head of sales training Brian Fenske.
On the oil front, crude prices ended the session in the black. Brent crude was last up 4.28% at $46.47 per barrel, and West Texas Intermediate ahead by 4.74% at $44.76.
The Federal Open Markets Committee began its two day meeting on Tuesday, with a statement on monetary policy expected late on Wednesday. No rate change is expected, though the committee's rhetoric will be watched closely for an indication of when rates will go up.
Both the Bank of Japan and the Reserve Bank of New Zealand are due to release monetary policy statements on Thursday.
In economic news, durable goods orders in the US rose less than expected in March, at 0.8%, after a revised 3.1% decline in February.
3M was down 1.3% after beating both top and bottom line earnings expectations with increased profit margins, though net sales were down 2.2% on the same period last year. The manufacturing conglomerate maintained its guidance for the current year.
DuPont reported earnings late on Monday that also beat forecasts, and raised its expectations for the current year, citing the greenback's weakness against a number of other currencies. It said on Tuesday it expected the regulatory review of its proposed merger with Dow Chemical to be complete by late June, before gaining 2.4% by close.
Procter & Gamble also beat earnings expectations but missed on revenue - a seventh straight quarter of disappointment on that measure. It said it now expects a decline of 3% to 6% in earnings per share for the year, slightly more upbeat than the 3% to 8% previously forecast. Its shares closed down 2.3%.
ExxonMobil finished 0.3% higher, even after the firm's credit rating was cut by Standard & Poor's to AA+ from AAA, with the agency citing low oil prices for the decision.
Apple, Chipotle and Twitter were all due to report after the closing bell.
S&P 500 - Risers
Micron Technology Inc. (MU) $11.51 +9.10%
Pioneer Natural Resources Co. (PXD) $165.36 +7.73%
Southwestern Energy Co. (SWN) $12.96 +7.11%
Ryder System Inc. (R) $69.45 +6.44%
Centene Corp. (CNC) $66.71 +6.12%
PACCAR Inc. (PCAR) $58.93 +5.14%
Alcoa Inc. (AA) $10.66 +4.92%
Cimarex Energy Co (XEC) $111.26 +4.77%
Carmax Inc. (KMX) $55.47 +4.68%
Marathon Oil Corp. (MRO) $14.44 +4.41%
S&P 500 - Fallers
Corning Inc. (GLW) $19.22 -8.35%
FLIR Systems Inc. (FLIR) $31.31 -7.69%
Wyndham Worldwide Corp. (WYN) $70.39 -7.47%
Whirlpool Corp. (WHR) $179.43 -3.55%
Waters Corp. (WAT) $133.34 -3.07%
Celgene Corp. (CELG) $107.55 -2.73%
Illumina Inc. (ILMN) $139.21 -2.70%
Alexion Pharmaceuticals Inc. (ALXN) $154.01 -2.54%
Procter & Gamble Co. (PG) $79.55 -2.28%
Alphabet Inc. Class A (GOOGL) $725.37 -2.27%
Dow Jones I.A - Risers
E.I. du Pont de Nemours and Co. (DD) $67.55 +2.40%
Boeing Co. (BA) $133.24 +1.90%
Caterpillar Inc. (CAT) $77.65 +1.12%
Cisco Systems Inc. (CSCO) $28.45 +0.78%
Chevron Corp. (CVX) $102.29 +0.77%
American Express Co. (AXP) $66.20 +0.76%
General Electric Co. (GE) $30.90 +0.72%
Nike Inc. (NKE) $59.54 +0.56%
JP Morgan Chase & Co. (JPM) $63.93 +0.52%
Visa Inc. (V) $78.53 +0.50%
Dow Jones I.A - Fallers
Procter & Gamble Co. (PG) $79.55 -2.28%
3M Co. (MMM) $166.18 -1.31%
Microsoft Corp. (MSFT) $51.44 -1.29%
Apple Inc. (AAPL) $104.35 -0.69%
Verizon Communications Inc. (VZ) $50.44 -0.63%
Johnson & Johnson (JNJ) $112.91 -0.53%
Pfizer Inc. (PFE) $33.05 -0.48%
Coca-Cola Co. (KO) $44.53 -0.40%
United Technologies Corp. (UTX) $104.80 -0.38%
Travelers Company Inc. (TRV) $109.97 -0.34%
Nasdaq 100 - Risers
Micron Technology Inc. (MU) $11.51 +9.10%
PACCAR Inc. (PCAR) $58.93 +5.14%
Nxp Semiconductors Nv (NXPI) $86.69 +4.02%
Akamai Technologies Inc. (AKAM) $52.66 +3.07%
Liberty Global plc Series A (LBTYA) $39.05 +3.03%
Liberty Global plc Series C (LBTYK) $38.17 +3.00%
Western Digital Corp. (WDC) $44.54 +2.77%
Seagate Technology Plc (STX) $27.00 +2.70%
Xilinx Inc. (XLNX) $46.95 +2.53%
Bed Bath & Beyond Inc. (BBBY) $49.32 +2.30%
Nasdaq 100 - Fallers
JD.com, Inc. (JD) $25.07 -8.60%
T-Mobile Us, Inc. (TMUS) $39.33 -4.49%
Incyte Corp. (INCY) $74.43 -2.77%
Celgene Corp. (CELG) $107.55 -2.73%
Illumina Inc. (ILMN) $139.21 -2.70%
Alexion Pharmaceuticals Inc. (ALXN) $154.01 -2.54%
Alphabet Inc. Class A (GOOGL) $725.37 -2.27%
Alphabet Inc. Class C (GOOG) $708.14 -2.08%
Endo International Plc (ENDP) $29.47 -1.90% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: Oil, Brexit, BHS, Apple, Twitter The World Bank has boosted its forecast for global oil prices by 10pc for 2016 but at the same time warned that commodity prices will remain well below last year's levels inflicting further pain on resource-rich countries. In January the World Bank pointed to a price of $37 a barrel for the benchmark oil price but in its latest quarterly report raised the forecast to $41 due to "improving sentiment and a weakening dollar". - Daily Telegraph
Growing confidence in the markets that Brexit will be avoided has sent the pound to a 12-week high against the dollar, taking it back to levels last seen in early February before Boris Johnson decided to back the "leave" campaign. Sterling reached $1.4640 at one point yesterday, a rise of nearly two cents, before it slipped back to $1.4580 to close the day in London one cent higher. - The Times
A publicity-shy retail billionaire is leading a pack of bidders that has begun circling the carcass of failed department store BHS. Philip Day, the entrepreneur behind the Edinburgh Woollen Mill and Peacocks chains, is understood to be weighing a bid for a chunk of the retailer's stores, and could even keep the BHS name alive. - Daily Telegraph
Dominic Chappell, the owner of BHS, moved £1.5m from the retailer into an obscure corporate vehicle last week as its financial problems worsened. BHS sources said Chappell transferred the funds to an entity called BHS Sweden, which is not connected to the company, following a board meeting on 18 April that concluded that BHS needed to find emergency funding or would have to call in administrators. - The Guardian
A key board member of the former owner of BHS raised concerns about the conduct of Dominic Chappell and corporate governance at the collapsed retailer at least six months ago. The Times understands that Eddie Parladorio, a lawyer on the board of Retail Acquisitions, which bought BHS from Sir Philip Green for £1 in March 2015, objected to a decision to loan £1.5m to a company linked to Mr Chappell's father. The loan was then used to pay off the £1.3m mortgage on Mr Chappell's father's house. - The Times
Petty soon, Sir Philip Green will make Fred Goodwin look like a reasonable bloke. True, shredded Fred brought down a bank, costing the taxpayer £45 billion, but at least he didn't take £400 million out of BHS 12 years before it collapsed - or have a yacht and a wife in Monaco. - The Times
Sales of the iPhone fell off a cliff in the first quarter, the first decline since Steve Jobs launched it in 2007 with a promise to revolutionise the mobile world. The highly anticipated slide and Apple's first drop in quarterly revenues since 2003 signalled a massive turning point, but by no means the end of the road, for a company that analysts believe still has potential to grow in its home market as well as in new territories, such as India and Africa. - The Times
The residential property market is likely to slow before the European Union referendum and is doing so already in London, Britain's biggest estate agent has warned. Countrywide, which owns agents including Hamptons and Bairstow Eves and has 400 offices across the country, said yesterday that it expected housing sales to slow because of "challenges from the political and economic uncertainty in the lead-up to the EU referendum in June". - The Times
The head of the UK's largest commercial property company by capitalisation has warned that a British exit from the EU would result in a sustained shock to demand for real estate in London. Robert Noel, chief executive of Land Securities, said Britain's departure from the union would have a bigger impact than other external events because the consequences would not be clear for some time. - Financial Times
Shares in Twitter dropped more than 13 per cent in after-hours trading as the company missed expectations on revenue, as brand marketers were slower to increase spending on the platform. The San Francisco based company also issued a disappointing outlook for revenue in the second quarter, below the consensus forecast. Sluggish user growth, which has dogged the company, continued in the last quarter. - Financial Times
The Culture Secretary has rejected suggestions that privatising Channel 4 would force it downmarket, claiming the potential investors that have approached the Government are attracted by the broadcaster's reputation for quality and would seek to maintain it. John Whittingdale told a Lords inquiry that no decisions have been taken by his review of Channel 4 ownership, but appeared to dismiss the main arguments against privatisation put forward by the broadcaster's management. - Daily Telegraph
Google faces a new threat in its rapidly expanding antitrust battle with the EU after Getty Images, the US photo agency, complained that the search giant was unfairly undermining its business. Getty said that it would file a formal complaint in Brussels on Wednesday, arguing that Google was trying to freeride on the business of photojournalism without generating the content itself. - FT
Britain's big four banks face another £20bn of misconduct fines and compensation in the next two years - but then their painful £100bn ordeal will be over, according to analysts at credit ratings agency Standard and Poor's. Barclays, Lloyds, Royal Bank of Scotland and HSBC have spent £55.8bn on conduct and litigation charges since 2011, with the PPI mis-selling scandal at the top of the list for compensation and other costs. - Daily Telegraph
Former Barclays chief Bob Diamond said he has the funding in place to bid for Barclays Africa Group (BAG), the business which is currently up for sale as the British bank cuts back its global operations. Barclays owns 62.3pc of BAG and wants to reduce that to a non-controlling stake in the coming years. If Bob Diamond's consortium - including private equity giant Carlyle Group as well as his own firm Atlas Merchant Capital, and partners the Mara Group - does want to buy the whole stake, it would have to stump up at least the current market value of 76.8bn rand (£3.7bn). - Daily Telegraph
Shareholders in Citigroup staged a significant rebellion over its executive pay scheme on Tuesday as more than a third of votes were cast against the bank. Citi this year increased the potential pay package for Michael Corbat, chief executive, by 27 per cent to $16.5m. Leading corporate governance groups that advise investors, Institutional Shareholder Services and Glass Lewis, took issue with the scheme. The pay plans were approved but 36.4 per cent of votes were cast against. - FT
Volvo is set to run self-driving versions of its family 4x4s on roads around London next year as the motor industry's trial of autonomous vehicles accelerates. While self-driving pods and shuttles were already due to operate on pavements in Greenwich and Milton Keynes this summer, the Swedish carmaker is planning to test autonomous vehicles on public roads in the capital from 2017. - The Guardian |
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