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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 FOMC minutes UK stocks on Thursday tracked gains in the US after minutes from the Federal Reserve's latest policy meeting showed several policymakers argued against an interest rate hike in April.
Members of the Federal Open Market Committee were concerned about the threat of slower global growth and low inflation when they voted to keep interest rates unchanged last month, the minutes of the central bank's March 15-16 meeting revealed.
Several also cautioned against an increase in April, saying it would signal a sense of urgency about the US economy that they did not think appropriate.
However, some other participants indicated that a hike at the next meeting "might well be warranted if the incoming economic data remained consistent with their expectations for moderate growth in output, further strengthening of the labour market, and inflation rising to 2% over the medium term", according to the minutes.
"Last night, the FOMC minutes were enough to push US markets higher once again as the dollar dropped," said Naeem Aslam, chief market analyst at Ava Trade. "What many expected or wanted to see did come out in these minutes, but the matter of concern is that Fed members failed to show a solid front and came out looking fragmented. "
Turning to Thursday's agenda, the European Central Bank will release its account of the 10 March policy meeting when the central bank announced a raft of new measures including the expansion of its asset purchase programme and cuts to interest rates, the deposit facility rate and the marginal lending facility rate.
"Even though it has been four weeks since the ECB announced its cocktail of rate cuts, additional asset purchases and ultra-cheap bank funding, it remains interesting to see how the discussion within the Governing Council evolved," Rabobank said.
Closer to home, Halifax revealed UK house prices rose 2.6% month-on-month in March, as second home owners and buy-to-let investors rushed in to purchase homes ahead of higher stamp duty charges in April. It compared to a 1.5% drop in February and beat analysts' forecasts of 0.9%.
Elsewhere, Chinese stocks declined on concerns that a three-month ban on large shareholders selling more than 1% of a company's total shares is about to expire. Worries that it will prompt a barrage of selling pressuring the overall market weighed on Chinese equities.
Meanwhile, oil prices continued to rise following bullish comments from OPEC member Kuwait and an unexpected decline US crude inventories. Brent crude climbed 0.07% to $39.86 per barrel and West Texas Intermediate increased 0.13% to $37.80 per barrel at 0909 BST.
Among corporate stocks, Marks & Spencer's shares rallied after the retailer reported fourth quarter sales that exceeded analysts' estimates as sales at the troubled general merchandise unit fell less than anticipated.
Shire gained after saying it expected its $32bn (£22.6bn) merger with Baxalta to go ahead despite new US tax rules stopping the $160bn deal between Pfizer and Allergan.
Victrex, which specialises in high performance polymer solutions, declined after it reported a drop in first half revenue.
Dunelm jumped after the home furnishings retailer reported total revenue for the third quarter increased 5.9%.
Gold miner Centamin advanced as it said first quarter production from its Sukari operation in Egypt rose 6.5% compared with the previous period to 125,268 ounces.
Education giant Pearson slumped as its shares went ex-dividend. |
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| Market Movers
FTSE 100 (UKX) 6,174.31 0.21%
FTSE 250 (MCX) 16,863.38 -0.02%
techMARK (TASX) 3,160.41 0.53%
FTSE 100 - Risers
BHP Billiton (BLT) 748.40p 2.14%
AstraZeneca (AZN) 4,207.50p 1.94%
Anglo American (AAL) 531.20p 1.67%
Sainsbury (J) (SBRY) 283.90p 1.50%
Marks & Spencer Group (MKS) 426.70p 1.50%
ARM Holdings (ARM) 1,042.00p 1.26%
Royal Dutch Shell 'B' (RDSB) 1,687.50p 1.14%
United Utilities Group (UU.) 940.00p 1.13%
Ashtead Group (AHT) 843.50p 1.08%
TUI AG Reg Shs (DI) (TUI) 1,056.00p 1.05%
FTSE 100 - Fallers
Pearson (PSON) 812.00p -6.45%
Lloyds Banking Group (LLOY) 66.05p -2.98%
Berkeley Group Holdings (The) (BKG) 3,218.00p -2.96%
Worldpay Group (WI) (WPG) 274.80p -2.83%
Aviva (AV.) 429.50p -2.83%
Rexam (REX) 622.50p -1.97%
Burberry Group (BRBY) 1,273.00p -1.39%
St James's Place (STJ) 892.00p -1.38%
Taylor Wimpey (TW.) 191.10p -1.34%
Barratt Developments (BDEV) 563.50p -1.31%
FTSE 250 - Risers
Dunelm Group (DNLM) 957.00p 5.16%
Centamin (DI) (CEY) 94.50p 4.36%
Tullow Oil (TLW) 202.60p 3.31%
Ophir Energy (OPHR) 79.55p 3.18%
Vedanta Resources (VED) 342.50p 3.13%
Just Eat (JE.) 390.50p 2.82%
Indivior (INDV) 171.00p 2.52%
Allied Minds (ALM) 433.90p 2.09%
NMC Health (NMC) 1,099.00p 1.95%
Evraz (EVR) 90.55p 1.74%
FTSE 250 - Fallers
Kaz Minerals (KAZ) 152.00p -4.94%
Vesuvius (VSVS) 299.50p -4.50%
Rotork (ROR) 160.20p -3.32%
International Personal Finance (IPF) 271.60p -3.21%
BBA Aviation (BBA) 193.20p -2.77%
Zoopla Property Group (WI) (ZPLA) 254.00p -2.46%
Fidessa Group (FDSA) 2,362.00p -2.40%
Phoenix Group Holdings (DI) (PHNX) 913.50p -2.19%
Ultra Electronics Holdings (ULE) 1,756.00p -2.17% |
| | UK Event Calendar | | Thursday 07 April
INTERIM DIVIDEND PAYMENT DATE
Alumasc Group, Diageo, Galliford Try, PZ Cussons, Renishaw, Ricardo, Standard Life UK Smaller Companies Trust, Wilmington
INTERIM EX-DIVIDEND DATE
Abbey, Animalcare Group, Begbies Traynor Group, Henderson EuroTrust, Marwyn Value Investors Limited, Photo-Me International, Produce Investments, St Ives, Tracsis, Volta Finance Limited
QUARTERLY EX-DIVIDEND DATE
Investors Capital Trust 'A' Shares, Marsh & Mclennan Cos Inc., Primary Health Properties, SQN Asset Finance Income Fund Limited
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Credit (US) (08:00)
Continuing Claims (US) (13:30)
Initial Jobless Claims (US) (13:30)
FINALS
Alliance Pharma, Belgravium Technologies, NetScientific , PureTech Health , TyraTech Inc. (DI / REGS), Ubisense Group
IMSS
Dunelm Group
SPECIAL DIVIDEND PAYMENT DATE
Hiscox Limited (DI)
SPECIAL EX-DIVIDEND PAYMENT DATE
Headlam Group, JPMorgan Income & Capital Inv Trust, Lloyds Banking Group
AGMS
Glenwick, IPSA Group
TRADING ANNOUNCEMENTS
Marks & Spencer Group
FINAL DIVIDEND PAYMENT DATE
Hiscox Limited (DI), Rio Tinto
FINAL EX-DIVIDEND DATE
4Imprint Group, Aberdeen UK Tracker Trust, Amiad Water Systems Ltd, Amino Technologies, Asian Total Return Investment Company, Aukett Swanke Group , Aviva, BBA Aviation, Berendsen, British Smaller Companies VCT 2, Charles Taylor, Chesnara, Entu (UK) , esure Group, Fevertree Drinks, Fisher (James) & Sons, Fyffes, GKN, HGCapital Trust, Hikma Pharmaceuticals, IDOX, IMI, Integrated Diagnostics Holdings, International Personal Finance, Lloyds Banking Group, Maven Income & Growth 4 VCT, Melrose Industries, Mobeus Income & Growth 4 Vct, Murray International Trust, Pearson, Phoenix Group Holdings (DI), Rentokil Initial, Rexam, Rotork, Secure Trust Bank, St James's Place, Taylor Wimpey, Ultra Electronics Holdings, Vesuvius, Wood Group (John)
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks edge higher as investors digest FOMC minutes European stocks edged higher in early trade, taking their lead from a positive session on Wall Street, after minutes from the latest Federal Reserve meeting highlighted caution over future interest rate hikes.
At 0850 BST, the benchmark Stoxx Europe 600 index was up 0.1%, Germanys's DAX was up 0.4% and France's CAC was 0.5% firmer.
At the same time, oil prices were higher after data on Wednesday from the Energy Information Administration showed as surprise draw in US inventories. They fell by 4.9m barrels last week, versus expectations for a 3.3m increase.
West Texas Intermediate was up 0.8% to $38.06 a barrel while Brent crude was 0.5% higher at $40.05.
"European markets have opened positively buoyed by overnight gains on Wall St aided by the latest oil price rally and dovish minutes from the March FOMC meeting indicating the Fed will be unlikely to raise interest rates before June as concerns remain around the growth prospects of the global economy," said Andy McLevey, head of dealing at stockbroker Interactive Investor.
"With the oil price continuing to have an influence on global markets the volatility of late is set to continue as investors await speeches from both Mario Draghi and Janet Yellen which may give clues to future Central Bank policy."
The Fed minutes released after the European close on Wednesday revealed that policymakers discussed the possibility of a rate hike in April but the overall consensus was that the risks from a global economic slowdown mean a cautious approach is needed.
"Several expressed the view that a cautious approach to raising rates would be prudent or noted their concern that raising the target range as soon as April would signal a sense of urgency they did not think appropriate," according to the minutes.
Capital Economics said: "Although the minutes acknowledge that a few officials were ready to raise interest rates in April, many thought that the Fed should proceed more cautiously, in particular because of worries about global downside risks.
"At this stage, the chances of an April rate hike are very slim, but we expect the Fed will resume raising rates in June. By that time, fears surrounding global risks should have faded and further increases in core inflation will have convinced officials that the pick-up is in fact genuine. Thereafter, we expect the fed funds rate will end this year at between 1.00% and 1.25%."
In corporate news, London-listed pharmaceutical company Shire was on the front foot after expressing confidence that its takeover of US-based Baxalta will proceed as planned even with new rules from the US Treasury to block 'tax inversion' deals.
Retailer Marks & Spencer was also in the black after it posted a mixed fourth quarter update that beat analysts' expectations. |
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| | US Market Report | | US close: Stocks gain after FOMC meeting minutes US stocks ended higher after minutes of the Federal Reserve's latest meeting showed several policymakers argued against an interest rate hike in April.
The Dow Jones Industrial Average closed up 0.64%, the S&P 500 rose 1.05% and Nasdaq increased 1.59%.
Members of the Federal Open Market Committee were concerned about the threat of slower global growth and low inflation when they voted to keep interest rates unchanged last month, the minutes of the central bank's March 15-16 meeting revealed.
Several also cautioned against an increase in April, saying it was signal a sense of urgency about the US economy that they did not think appropriate.
However, some other participants indicated that a hike at the next meeting "might well be warranted if the incoming economic data remained consistent with their expectations for moderate growth in output, further strengthening of the labor market, and inflation rising to 2 percent over the medium term", the minutes revealed.
Rabobank reiterated that it expects two rate hikes this year, most likely in June and December, following the minutes. The market analyst noted that policymakers remained mixed on their views on interest rates so a rate hike in April remains a possibility.
"While the minutes confirm that there is a lot of uncertainty in the Committee about the economic outlook, with risks tilted to the downside, it is clear that hikes are on the agenda of each meeting now," Rabobank said.
Meanwhile, oil prices regained strength following bullish comments from OPEC member Kuwait and an unexpected decline US crude inventories.
Kuwait's Governor for the Organization of Petroleum Exporting Countries (OPEC), Nawal Al-Fuzaia, said she was confident both OPEC and non-OPEC members will go along with plans to cut crude output at the upcoming meeting in Qatar on 17 April.
US Department of Energy's statistical arm - the Energy Information Administration - said American crude oil inventories fell 4.9m barrels in the week to April 1, compared with analysts' expectations for an increase of a 3.1-3.2m barrels.
West Texas Intermediate crude rose 4.9% to $37.77 per barrel and Brent increased 4.6% to $39.71 per barrel.
In company news, Pfizer's shares gained after the company confirmed on Wednesday that the merger agreement with Allergan has been terminated by mutual agreement after the US Treasury announced new measures to curb tax inversions.
In connection with the termination of the merger agreement, Pfizer has agreed to pay Allergan $150m for reimbursement of expenses associated with the transaction.
Baker Hughes and Halliburton advanced after the companies vowed to fight the Justice Department's lawsuit challenging their planned merger.
Harley-Davidson slumped after ITG Investment Research cut its first-quarter unit sales outlook for the motorcycle maker as sales showed weakness in March.
Constellation Brands jumped after the company reported fourth quarter earning that that beat expectations and raised its dividend.
In currencies, the US dollar rose 0.03% against the euro, increased 0.01% against the pound and fell 0.02% versus the yen.
S&P 500 - Risers
Baker Hughes Inc. (BHI) $42.83 +8.82%
Endo International Plc (ENDP) $29.23 +8.62%
Vertex Pharmaceuticals Inc. (VRTX) $91.31 +8.50%
Alexion Pharmaceuticals Inc. (ALXN) $157.02 +6.07%
Celgene Corp. (CELG) $108.22 +5.97%
Constellation Brands Inc. Class A (STZ) $160.34 +5.93%
Halliburton Co. (HAL) $36.44 +5.93%
Regeneron Pharmaceuticals Inc. (REGN) $427.20 +5.83%
Owens-Illinois Inc. (OI) $16.33 +5.63%
Baxalta Incorporated (BXLT) $40.65 +5.58%
S&P 500 - Fallers
Harley-Davidson Inc. (HOG) $46.34 -7.02%
CF Industries Holdings Inc. (CF) $29.32 -2.62%
Valero Energy Corp. (VLO) $61.68 -2.31%
Ventas Inc. (VTR) $62.08 -2.30%
Chipotle Mexican Grill Inc. (CMG) $455.25 -1.76%
Graham Holdings Co. (GHC) $472.77 -1.71%
Southwestern Energy Co. (SWN) $7.68 -1.66%
Wynn Resorts Ltd. (WYNN) $89.55 -1.51%
NRG Energy Inc. (NRG) $12.03 -1.47%
Cummins Inc. (CMI) $106.43 -1.47%
Dow Jones I.A - Risers
Pfizer Inc. (PFE) $32.93 +5.01%
Merck & Co. Inc. (MRK) $55.63 +2.56%
Chevron Corp. (CVX) $94.84 +2.34%
Visa Inc. (V) $78.21 +1.61%
Cisco Systems Inc. (CSCO) $28.00 +1.52%
Exxon Mobil Corp. (XOM) $83.31 +1.34%
Nike Inc. (NKE) $60.31 +1.07%
Apple Inc. (AAPL) $110.96 +1.05%
Microsoft Corp. (MSFT) $55.12 +1.03%
Procter & Gamble Co. (PG) $83.81 +0.78%
Dow Jones I.A - Fallers
Verizon Communications Inc. (VZ) $53.52 -1.05%
American Express Co. (AXP) $59.88 -0.52%
General Electric Co. (GE) $30.90 -0.26%
Travelers Company Inc. (TRV) $115.93 -0.17%
Goldman Sachs Group Inc. (GS) $155.19 -0.10%
Caterpillar Inc. (CAT) $75.22 -0.03%
Nasdaq 100 - Risers
Incyte Corp. (INCY) $81.87 +11.62%
Endo International Plc (ENDP) $29.23 +8.62%
Vertex Pharmaceuticals Inc. (VRTX) $91.31 +8.50%
Biomarin Pharmaceutical Inc. (BMRN) $89.34 +7.61%
Illumina Inc. (ILMN) $174.16 +6.37%
Alexion Pharmaceuticals Inc. (ALXN) $157.02 +6.07%
Celgene Corp. (CELG) $108.22 +5.97%
Regeneron Pharmaceuticals Inc. (REGN) $427.20 +5.83%
Mylan Inc. (MYL) $48.34 +5.27%
Biogen Inc (BIIB) $279.57 +5.25%
Nasdaq 100 - Fallers
Vimpelcom Ltd Ads (VIP) $3.87 -1.78%
Fastenal Co. (FAST) $47.11 -0.57%
Mattel Inc. (MAT) $32.91 -0.51%
Bed Bath & Beyond Inc. (BBBY) $48.81 -0.51%
Monster Beverage Corp (MNST) $134.17 -0.33%
NetApp Inc. (NTAP) $26.56 -0.26%
Netflix Inc. (NFLX) $104.83 -0.10%
T-Mobile Us, Inc. (TMUS) $39.10 -0.10% |
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| | Newspaper Round Up | | Thursday newspaper round-up: Cameron, Tata, Petrofac David Cameron personally intervened in 2013 to weaken an EU drive to reveal the beneficiaries of trusts, creating a possible loophole that other European nations warned could be exploited by tax evaders. The disclosure of the prime minister's resistance to opening up trusts to full scrutiny comes as he faces intense pressure to make clear whether his family stands to benefit from offshore assets linked to his late father. - Financial Times
Dutch voters opposed a trade deal between the EU and Ukraine by a margin of nearly two-to-one, in a result that could trigger ructions in Brussels and boost those in the UK campaigning for Britain to leave the bloc. Turnout breached the 30 per cent level required to force the hand of a government that had agreed to abide by the result if the threshold were passed. - Financial Times
Barack Obama's derailment of Pfizer's $160bn (£114bn) merger with Allergan sparked immediate speculation on Wednesday that the US drugs company would turn its attention to another big pharmaceutical takeover. Pfizer, best known for Viagra and its cholesterol pill Lipitor, will pay the Botox producer Allergan $150m for pulling out of what would have been the world's biggest healthcare deal, first announced in November and now abandoned after the US Treasury Department stunned financial markets with measures to clamp down on tax efficient mergers and takeovers. - Guardian
Sajid Javid has said that he has received assurances from Tata that it will allow time to find a saviour for its British steelmaking business, including the Port Talbot plant. The business secretary said Tata will impose "no set time-frame" on the sales process and sought to assuage fears that the company could shut the loss-making Port Talbot steelworks within weeks after meeting its senior figures in Mumbai, including the chairman, Cyrus Mistry. - Guardian
Hutchison, the owner of mobile operator Three, has signed deals worth £3bn to guarantee space on its expanded mobile network as it makes its final appeal to officials in Brussels to allow its controversial takeover of O2. The future of Britain's mobile phone sector is in now the hands of European competition watchdog after Hutchison made its final offer of concessions today. - Telegraph
The Federal Reserve is preparing to raise US interest rates yet again, despite the financial turmoil that gripped global markets after the central bank increased its rates last December. Members of the Federal Open Market Committee (FOMC), which decides on US monetary policy, were split on raising rates as early as this month, minutes of the committee's last meeting have revealed. - Telegraph |
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