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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 rebound in Brexit aftermath London stocks rebounded on Tuesday after two days of declines in the aftermath of Brexit.
Housebuilders led the gains as they recovered from the initial shock of Britain's vote to leave the European Union. Shares in Taylor Wimpey, British Land and Bovis Homes rose.
Equity markets have lost more than $3trn in the past two days of trading, exceeding losses of the financial crisis. The pound has also dropped by more than 11%, its biggest two-day fall in more than three decades.
David Cameron said on Monday that Article 50 will not be triggered as yet and negotiations over the UK's exit from the EU will wait for the new prime minister.
FXTM chief market strategist Hussein Sayed said Cameron's proposal against enacting Article 50 "will only lead to a prolonged period of uncertainty, exposing the pound to more downside risk".
"I would say another 5-10% drop from current levels can't be ruled out in the next couple of weeks."
The Bank of England will hold a third additional Indexed Long-Term Repo operation around the EU referendum at 1000 BST. The ILTR was scheduled ahead of the referendum to provide extra liquidity in case it was needed.
European Central Bank president Mario Draghi is also due to speak at 900 BST in Sintra, Portugal, where any remarks on Brexit will be closely scrutinised.
In the US , economic growth data is due at 1330 BST along with the S&P/Case Shiller home price index at 1400 BST and consumer confidence index at 1500 BST.
On the corporate front, Legal & General surged after announcing the appointment of former Second Permanent Secretary of HM Treasury, Sir John Kingman, as group chairman.
Old Mutual edged higher even as it said underlying businesses may be affected by the UK's vote to leave the EU.
Online grocer Ocado jumped as it said revenue and earning grew in the first half of the year.. |
| Market Movers
FTSE 100 (UKX) 6,111.56 2.16%
FTSE 250 (MCX) 15,427.96 3.07%
techMARK (TASX) 3,016.49 2.10%
FTSE 100 - Risers
Legal & General Group (LGEN) 179.60p 8.85%
Next (NXT) 4,751.00p 8.37%
Taylor Wimpey (TW.) 124.90p 7.86%
Prudential (PRU) 1,183.50p 7.10%
Associated British Foods (ABF) 2,513.00p 6.94%
ITV (ITV) 164.30p 6.69%
British Land Company (BLND) 588.00p 6.62%
Land Securities Group (LAND) 970.00p 6.59%
Barclays (BARC) 135.35p 6.41%
Aviva (AV.) 366.70p 5.92%
FTSE 100 - Fallers
Randgold Resources Ltd. (RRS) 7,930.00p -1.31%
Fresnillo (FRES) 1,466.00p -1.15%
Carnival (CCL) 3,270.00p 0.18%
Compass Group (CPG) 1,348.00p 0.22%
SABMiller (SAB) 4,289.00p 0.26%
Royal Dutch Shell 'B' (RDSB) 1,929.00p 0.34%
Royal Dutch Shell 'A' (RDSA) 1,913.50p 0.34%
Rexam (REX) 643.00p 0.47%
GlaxoSmithKline (GSK) 1,495.00p 0.47%
Babcock International Group (BAB) 874.00p 0.52%
FTSE 250 - Risers
Ocado Group (OCDO) 235.80p 13.31%
Countryside Properties (CSP) 193.00p 11.43%
G4S (GFS) 180.00p 9.76%
Paysafe Group (PAYS) 369.20p 9.26%
Bovis Homes Group (BVS) 701.00p 9.11%
Marshalls (MSLH) 232.00p 8.92%
Redrow (RDW) 319.80p 8.59%
IP Group (IPO) 130.00p 7.97%
Thomas Cook Group (TCG) 62.60p 7.84%
Rotork (ROR) 206.60p 7.72%
FTSE 250 - Fallers
Shawbrook Group (SHAW) 142.10p -12.88%
Acacia Mining (ACA) 428.00p -2.73%
Centamin (DI) (CEY) 127.20p -2.23%
Darty (DRTY) 167.70p -0.42%
Halfords Group (HFD) 312.10p -0.29%
BH Macro Ltd. GBP Shares (BHMG) 1,939.00p -0.21%
Caledonia Investments (CLDN) 2,154.00p 0.09%
Personal Assets Trust (PNL) 37,760.00p 0.13%
Computacenter (CCC) 697.00p 0.43% |
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| | UK Event Calendar | | Tuesday 28 June
INTERIMS
Benchmark Holdings , Blue Prism Group, Ocado Group
INTERIM DIVIDEND PAYMENT DATE
Henderson European Focus Trust
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Confidence (US) (15:00)
GMS
Fastjet, Old Mutual
FINALS
Carpetright, Cohort, Picton Property Income Ltd, ULS Technology , Urals Energy Public Co Ltd. (DI), Urals Energy Public Co Ltd. (DI)
EGMS
RAB Special Situations Company Limited
AGMS
Anpario, Ariana Resources, Centralnic Group , Crimson Tide, Eden Research, Elderstreet VCT, Faroe Petroleum, Fastjet, JKX Oil & Gas, JSC Chelyabinsk Zinc Plant GDR (Reg S), Next Fifteen Communications, Nostrum Oil & Gas , Old Mutual, Petropavlovsk, PJSC Centre For Cargo Container Traffic Transcontainer GDR (Reg S), President Energy, RAB Special Situations Company Limited, Savannah Petroleum , ServicePower Technologies, Silver Falcon , Tandem Group, Universe Group, Volvere, Xchanging, Xchanging
UK ECONOMIC ANNOUNCEMENTS
CBI Distributive Trades Surveys (11:00)
FINAL DIVIDEND PAYMENT DATE
Aberdeen New Thai Inv Trust, Spire Healthcare Group, Weiss Korea Opportunity Fund Ltd
|
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks bounce back from Brexit-fuelled losses European stocks rose in early trade, rebounding from two days of heavy losses fuelled by Britain's decision to leave the European Union, as the pound came off its lows.
At 0900 BST, the benchmark Stoxx Europe 600 index was up 2.2%, Germany's DAX was up 2.1% and France's CAC 40 was 2.3% higher.
London's FTSE 100 was 2% higher, while the more domestically-focused FTSE 250 - which was hit harder post Brexit - was 3% firmer.
Italy's FTSE MIB was up 2.6% as the government there considered a €40bn capital injection for the country's banks. Intesa Sanpaolo was up 6.9% while UniCredit gained 7.7%.
Overall, the Stoxx 600 banks index, which took a battering in the last two sessions, was up 3.2%.
At the same time, oil prices advanced, with West Texas Intermediate up 2.2% to $47.35 a barrel and Brent crude up 2% at $48.12. Prices were supported by the possibility of a strike in Norway, where workers on oil and gas fields could go on strike from Saturday if they do not agree a wage deal.
In currency markets, the pound was recovering somewhat after hitting fresh 31-year lows on Monday, trading up 1% against the dollar at $1.3347.
Hussein Sayed, chief market strategist at FXTM, said: "It might look very attractive to buy a major currency which has fallen by more than 11% in two trading days and is currently standing at its lowest levels in more than three decades. However, it might not be the case that sterling has reached its bottom just yet.
"It seems there is very little news to support the currency at the moment, and David Cameron's proposal yesterday not to trigger Article 50 will only lead to a prolonged period of uncertainty, exposing the Pound to more downside risk. I would say another 5-10% drop from current levels can't be ruled out in the next couple of weeks."
EU leaders are due to meet in Brussels later on Tuesday, so investors will eye any developments from there, with Prime Minister David Cameron expected to be pressured to trigger Article 50.
CMC Markets' Michael Hewson said: "Later today Prime Minister David Cameron will be heading to Brussels to attend a meeting of EU leaders in the wake of last week's vote and while his reception is probably likely to be chilly, there will probably also be some light hearted mentions of last night's embarrassment on the football fields of France, as England lost to Iceland.
Despite the upbeat tone in financial markets, some analysts were sceptical that the gains could be sustained.
Lee Wild, head of equity strategy at Interactive Investor, said: "There is still no obvious reason to buy stocks in a big way given a lack of clarity over Britain's future relationship with Europe, and this could be an example of short-covering. Shares certainly look cheap on paper, but the true impact of Brexit on company profits remains a great unknown. Dividend forecasts are being scaled back, too, and there's a sense that prices could go lower before we see broad-based buying."
In corporate news, defence and aerospace group Rolls-Royce was on the front foot after saying the UK's decision to leave the EU would not have an immediate impact on day-to-day business, adding that it remains committed to the UK "where we are headquartered, directly employ over 23,000 talented and committed workers and where we carry out a significant majority of our research and development".
Housebuilder Redrow was sharply higher after saying it expects pre-tax profit for the year to be above the top end of analysts' estimates, which currently stand at £240m.
Nestle rallied after it named Ulf Mark Schneider as successor to chief executive Paul Bulcke.
On the macroeconomic calendar, the third release of first-quarter US GDP is at 1330 BST. S&P Case-Shiller house prices are at 1400 BST, while US consumer confidence is at 1500 BST. |
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| | US Market Report | | US close: Stocks end firmly lower on Brexit worries US stocks closed firmly in the red on Monday as investors continued to worry about the impact of Britain's decision to leave the European Union.
The Dow Jones Industrial Average ended down 1.5%, the S&P 500 fell 1.8% and the Nasdaq slumped 2.4%.
Joshua Mahony, market analyst at IG, said: "What we really need is some form of decisive action, as financial markets seek reassurance that things will be OK. What we look likely to get is two months of political infighting, followed by another 20 months of uncertainty as the new leader somehow attempts to secure a deal which appeals to the many facets of the leave campaign. This will all take time and in the meanwhile, investors and businesses are left to ponder what the potential impact will be of this monumental decision."
George Osborne said on Monday that the UK was ready to face the future "from a position of strength", adding that there would be no immediate emergency Budget.
Looking to calm financial markets in his first public address since the referendum results, the Chancellor said in a statement: "Growth has been robust and employment is at a record high. Our economy is now about as strong as it could be to confront the challenge the country now faces."
After the result of the EU referendum, the Bank of England said it stood ready to provide £250bn of additional funds to support the UK's banks.
In currency markets, the dollar was enjoying further gains on Monday as the pound slid to fresh 31-year lows.
Societe Generale strategist Kit Juckes said: "The extent of the uncertainty that now clouds the UK's economic and political outlook is hard to exaggerate. The government is in limbo ahead of a Conservative Party leadership contest. The opposition is in chaos. The rest of the EU would like negotiations on the UK's exit to begin but they have no-one to negotiate with.
"Uncertainty is negative for the UK economy, for investor confidence and obviously, for the pound. Sterling has now fallen by 9% against the US dollar since the eve of the UK referendum, and we look for an eventual move in GBP/USD to 1.20- 1.25."
Banks suffered heavy losses; Bank of America tumbled over 12%, JPMorgan ended down 5% and Citigroup fell 4.5%.
On the upside, however, US-listed shares of Randgold Resources rallied as gold continued to make gains on its safe-haven appeal and following an upgrade by Goldman Sachs.
On the data front, figures from Markit showed activity in the US services sector was unchanged this month, missing economists' expectations.
Markit's flash US services purchasing managers' index came in at 51.3, undershooting estimates of 51.9. A reading above 50 indicates expansion.
Markit's chief economist Chris Williamson said: "The survey data indicate that any rebound in the economy from the weak first quarter was largely confined to April, and that growth has since faded again. The June PMIs, which provide the first insight into national business activity in the second quarter, suggest the underlying rate of growth in the economy is only a meagre 1%."
Oil prices settled lower amid Brexit woes, with West Texas Intermediate down 2% at $46.70 a barrel and Brent crude 1.7% lower at $47.58.
S&P 500 - Risers
Kroger Co. (KR) $36.62 +4.21%
Dr Pepper Snapple Group Inc. (DPS) $95.85 +3.98%
Extra Space Storage (EXR) $90.31 +3.96%
Public Storage (PSA) $250.21 +3.68%
NextEra Energy Inc. (NEE) $127.88 +3.30%
Tyson Foods Inc. (TSN) $65.24 +2.63%
Edison International (EIX) $76.45 +2.49%
Eversource Energy (ES) $58.59 +2.39%
Amer Water Works (AWK) $81.71 +2.23%
Southern Co. (SO) $52.20 +1.97%
S&P 500 - Fallers
Western Digital Corp. (WDC) $42.17 -11.85%
Seagate Technology Plc (STX) $20.87 -9.89%
Invesco Ltd. (IVZ) $23.16 -9.43%
PVH Corp. (PVH) $84.91 -9.24%
Borg Warner Inc. (BWA) $27.69 -9.21%
Owens-Illinois Inc. (OI) $16.33 -9.08%
CBRE Group Inc (CBG) $24.88 -8.90%
Mosaic Company (MOS) $24.69 -8.25%
People's United Financial Inc. (PBCT) $13.84 -8.22%
United Continental Holdings Inc. (UAL) $37.75 -8.06%
Dow Jones I.A - Risers
Johnson & Johnson (JNJ) $116.55 +0.80%
Verizon Communications Inc. (VZ) $54.74 +0.57%
Dow Jones I.A - Fallers
American Express Co. (AXP) $57.67 -3.98%
JP Morgan Chase & Co. (JPM) $57.61 -3.34%
Boeing Co. (BA) $122.70 -3.02%
E.I. du Pont de Nemours and Co. (DD) $64.08 -2.91%
Microsoft Corp. (MSFT) $48.43 -2.81%
Intel Corp. (INTC) $30.72 -2.63%
McDonald's Corp. (MCD) $116.30 -2.63%
Visa Inc. (V) $73.34 -2.28%
Caterpillar Inc. (CAT) $71.38 -2.26%
International Business Machines Corp. (IBM) $143.50 -2.11%
Nasdaq 100 - Risers
Tesla Motors Inc (TSLA) $198.55 +2.80%
Whole Foods Market Inc. (WFM) $31.25 +1.59%
Comcast Corp. (CMCSA) $62.46 +1.31%
Tractor Supply Company (TSCO) $92.90 +1.19%
Monster Beverage Corp (MNST) $154.81 +0.89%
Dollar Tree Inc (DLTR) $92.56 +0.73%
Ross Stores Inc. (ROST) $54.75 +0.61%
T-Mobile Us, Inc. (TMUS) $41.20 +0.24%
O'Reilly Automotive Inc. (ORLY) $267.73 +0.03%
Nasdaq 100 - Fallers
Western Digital Corp. (WDC) $42.17 -11.85%
Seagate Technology Plc (STX) $20.87 -9.89%
Endo International Plc (ENDP) $13.69 -7.81%
Micron Technology Inc. (MU) $12.24 -7.34%
NetApp Inc. (NTAP) $22.97 -7.08%
Liberty Global plc Series C (LBTYK) $26.71 -6.80%
American Airlines Group (AAL) $25.27 -6.58%
Autodesk Inc. (ADSK) $50.54 -6.48%
Liberty Global plc Series A (LBTYA) $26.99 -6.28% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: $trn lost, AAA rating, EU negotiation, banks Global stock markets lost a record $3trn in the past two trading days after a sharp sell-off in equities around the world in response to the UK referendum vote to leave the EU. Observers said the falls on the first day after the vote on Friday were tied mainly to the short-term unwinding of trading positions related to expectations of a Remain vote ahead of the shock result, while the further selling on Monday was more about long-term revaluing of assets in anticipation of the potential fallout from the decision. - Financial Times
Markets are braced for another torrid session after Britain was stripped of its top-notch credit rating last night. S&P was the last of the three major agencies to rank Britain AAA, but, in an unusually severe move, slashed the rating two notches and left it on "negative" outlook, leaving the country on a par with France. - The Times
Britain's decision to leave the EU has continued to reverberate around the Asia-Pacific financial markets as some analysts warned that global markets were bracing for a full-blown recession in the UK. "Markets already appear to be pricing in a full-blown recession in the UK and rising recession risk in the rest of Europe," said David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management. - The Guardian
Britain must pursue a Norway-style agreement with the EU if it is to avoid a damaging recession, according to Morgan Stanley. The bank said negotiating membership of the European Economic Area (EEA) and retaining access to the single market would help the UK to secure a "civilised divorce" from the EU. - The Telegraph
Italy is preparing a €40bn rescue of its financial system as bank shares collapse on the Milan bourse and the powerful after-shocks of Brexit shake European markets. An Italian government task force is watching events hour by hour, pledging all steps necessary to ensure the stability of the banks. "Italy will do everything necessary to reassure people," said premier Matteo Renzi. - Telegraph
David Cameron will travel to Brussels on Tuesday to explain to Europe's stunned leaders why Britain has voted for Brexit, as Conservative MPs pushed to speed up the process of replacing him as prime minister. Cameron will meet the European commission president, Jean-Claude Juncker, and the European council president, Donald Tusk, before a working dinner with his counterparts from the 27 other member states, at which the verdict in Thursday's historic referendum will be the only item on the agenda. - Guardian
The world's biggest banks are pushing regulators and politicians for answers so they can plan for the future of their London operations after the UK's vote to leave the EU. Lenders including HSBC, JPMorgan and Morgan Stanley had warned before Thursday's vote of thousands of job cuts because they would no longer be able to use London as a jumping off point for selling into the EU. - Financial Times
Britons are more likely to see Father Christmas climb down their chimneys than secure unfettered access to the single market and restrict free movement of people into the UK. That was the blunt message from Jean-Claude Piris, the former director-general of the EU council's legal service, which has been echoed by many European leaders. If Britain wants to do a deal, it needs to play by the rules. - Telegraph
David Cameron's successor as Conservative leader and prime minister should be elected by September 2, senior Tories have announced, in a fast-track contest that is likely to help Boris Johnson in his bid to reach Number 10. Nominations for the new leader should open on Wednesday evening and close on Thursday lunchtime, a tight timetable giving little time for low-key candidates to gather support among MPs or Conservative grassroots supporters in the country. - Financial Times
Britain's steel industry could "crumble" because of the Brexit referendum, according to union leaders, who are now demanding an urgent meeting with the Government over their concerns. Community, the union which represents steelworkers, is calling for talks with Business Secretary Sajid Javid to address fears that the crisis-hit steel industry will fail as the referendum dominates the agenda. - Telegraph
Morrisons has the worst record among major supermarkets for mistreating suppliers, according to a report by the industry watchdog. A fifth of respondents to a survey of more than 1,000 suppliers and trade associations said that Morrisons "rarely" or "never" complied with industry rules governing supply chain relations. - Times
Sadiq Khan today demands that a representative for London is appointed to the UK's team for negotiations over its departure from the European Union. The mayor of London is expected to insist that the capital deserves a seat around the table as British and European officials thrash out the details of Brexit over the coming years. - Times
Britain's historic vote to leave the EU has prompted some of the world's most powerful investment houses to turn their focus to inequality. Bank of America and the international investment firm Pimco have warned their clients that the gulf between rich and poor could spark a further anti-establishment backlash. - Guardian
KPMG's role in assessing HBOS' finances in the year ahead of its collapse in the financial crisis will at long last come under scrutiny, the UK's audit watchdog has decided. Eight years on from the bank's collapse, takeover by Lloyds, and subsequent taxpayer bailout, the accountants' work will be investigated by the Financial Reporting Council. - Telegraph
Volkswagen's settlement with nearly 500,000 US diesel owners and government regulators over polluting vehicles is valued at more than $15bn (£11.3bn) cash, a source briefed on the matter said on Monday night. The settlement, to be announced on Tuesday in Washington, includes $10.03bn to offer buybacks to owners of about 475,000 polluting vehicles and nearly $5bn in funds to offset excess diesel emissions and boost zero emission vehicles, the source said. - Guardian
Over his eight years as mayor of London, Boris Johnson made a name for himself as an outspoken defender of bankers when their reputation in the rest of the country could scarcely have been lower. Yet as Britain and its finance industry deal with the aftermath of last week's Brexit vote, his stock in the Square Mile could scarcely be lower. "He's a bloody clown and should be shot for what he's done," one chief executive of a London stockbroker said, speaking hours after the result of the vote had been announced. - Times | | |
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