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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: FTSE creeps higher on commodities gains London stocks opened surprisingly higher on Wednesday as precious metals miners were joined by commodities heavyweights as the blue chip index looked to continue the advance from the previous day.
The FTSE 100 was up 27.37 points or 0.42% at 6,572.74 by 0837, while the FTSE 250, which is felt more relfective of the UK economy, moved the other way as its commodities companies moved lower.
Trader had thought the market would dip on the back of renewed words of warning from the Bank of England about Brexit, exacerbated by some big-names suspending redemptions for their UK property funds.
Sterling plumbed a new 31-year low versus the dollar, sinking below 1.2800 at one point in the early hours.
Overnight, US stock markets ended lower, dragged down by oil prices falling 4%, while Asian equities also moved lower as the European session began.
"European sentiment is highly negative today as investors have become largely apprehensive about the condition of the European markets," said Naeem Aslam, chief market analyst at Think Forex.
"German and Japanese yields reflect the true picture of this anxiety as bonds up to 15 years produced negative yields. Further spotlight on the Italian banking sector is making investors nervous, and a huge amount of non-performing loans have become a matter of deep concern.
Looking ahead on Wednesday, outside the publishing of the long awaited Chilcot inquiry into the Iraq invasion that will dominate UK news headlines, there are meeting minutes due from the US Federal Reserve's rate setters, with traders looking into the finer details as they position themselves amid a general belief that interest rates will remain at their current level.
The FOMC minutes will show how the committee views the landscape for policy normalisation in light of June's surprisingly weak US jobs report.
"However, with the meeting having taken place in mid-June, well ahead of the Brexit vote and with so much having happened since, the information we get may be of limited use," said analyst Mike van Dulken at Accendo Markets.
"And with the BoE pledging additional stimulus support this summer that could weaken the GBP even more and thus further strengthen the USD, many see central bank action on this side of the pond likely keeping any Fed rate hikes from the markets door until well into next year. Is US data as important as it once was?"
In company news, low cost airline easyJet reported a 5.8% jump in passengers for the month of June on Wednesday, with 6.94m customers taking to their orange jets, compared with 6.56m in June 2015. The FTSE 100 firm's load factor for the month was 94.1%, up 1.4 percentage points from the 92.7% figure the same time last year.
Late on Tuesday, the government unveiled changes to the new Digital Economy Act that will scrap a law that could boost the coffers of public broadcasters such as the BBC, ITV, and Channel 5 by tens of millions of pounds a year. ITV was said to be poised to seek to charge Virgin Media to broadcast its flagship channel as a result.
Melrose Industries has agreed to acquire US air conditioning and security technology group Nortek for $1.44bn in cash, funded by a proposed £1.61bn issue of new shares. Due to the size of the deal, where the proposed offer price of $86 per share values Nortek's shares at $1.436bn (£1.1bn) and the entire enterprise including debt at $2.81bn million (£2.15bn), it will be classed as a reverse takeover and require the approval of FTSE 250-listed Melrose's shareholders. As well as the fundraising, Melrose, which said it had received "very supportive" noises from number of its institutional shareholders about the deal, proposed to fund the balance of the debt repayment through new debt of approximately $780m.
A High Court challenge by alternative network builder CityFibre has accused regulator Ofcom of making "ridiculous" policy decisions that will cement BT Group's position in the broadband market as a "single, unassailable wholesale infrastructure provider". The communications regulator, theTelegraph reported, is planning a major overhaul of the broadband market by allowing rival service providers such as Sky and Vodafone to connect their own equipment to the high-capacity fibre-optic lines inside BT's Openreach network at controlled prices. |
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| | FTSE 100 - Risers
Fresnillo (FRES) 1,971.00p 4.12%
Randgold Resources Ltd. (RRS) 9,625.00p 3.38%
Rio Tinto (RIO) 2,365.00p 1.65%
Diageo (DGE) 2,169.50p 1.40%
BHP Billiton (BLT) 948.20p 1.37%
Mediclinic International (MDC) 1,115.00p 1.36%
Paddy Power Betfair (PPB) 8,095.00p 1.25%
Glencore (GLEN) 159.80p 1.24%
Imperial Brands (IMB) 4,127.00p 1.18%
Antofagasta (ANTO) 466.70p 1.13%
FTSE 100 - Fallers
Barratt Developments (BDEV) 333.70p -4.74%
Royal Bank of Scotland Group (RBS) 152.00p -4.10%
Morrison (Wm) Supermarkets (MRW) 178.60p -3.88%
Tesco (TSCO) 169.00p -3.84%
Persimmon (PSN) 1,292.00p -3.00%
Berkeley Group Holdings (The) (BKG) 2,266.00p -2.62%
Taylor Wimpey (TW.) 118.20p -2.56%
International Consolidated Airlines Group SA (CDI) (IAG) 369.50p -2.38%
Marks & Spencer Group (MKS) 293.60p -2.20%
easyJet (EZJ) 1,034.00p -2.08%
FTSE 250 - Risers
Riverstone Energy Limited (RSE) 957.00p 7.53%
Centamin (DI) (CEY) 154.40p 5.03%
Vedanta Resources (VED) 443.00p 4.24%
Pets at Home Group (PETS) 230.80p 3.87%
Just Eat (JE.) 426.90p 3.52%
Acacia Mining (ACA) 515.00p 3.50%
Hochschild Mining (HOC) 208.00p 2.61%
Polymetal International (POLY) 1,109.00p 2.40%
Carillion (CLLN) 226.70p 2.39%
AO World (AO.) 140.80p 2.18%
FTSE 250 - Fallers
Tullow Oil (TLW) 216.10p -10.18%
Metro Bank (MTRO) 1,573.00p -4.95%
Redrow (RDW) 277.70p -4.86%
Clarkson (CKN) 1,712.00p -4.62%
McCarthy & Stone (MCS) 142.00p -4.05%
Shawbrook Group (SHAW) 133.00p -3.97%
Bovis Homes Group (BVS) 624.00p -3.93%
Savills (SVS) 554.50p -3.90%
Aldermore Group (ALD) 107.50p -3.50% |
| | UK Event Calendar | | Wednesday 06 July
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (US) (13:30)
Factory Orders (GER) (07:00)
ISM Non-Manufacturing (US) (15:00)
SPECIAL DIVIDEND PAYMENT DATE
Helios Underwriting
EGMS
Industrial Mlulti Propety Trust
AGMS
Altitude Group, Booker Group, Mobile Tornado Group, Palace Capital , Sainsbury (J), Shires Income, Summit Germany Limited, TechFinancials (DI)
TRADING ANNOUNCEMENTS
Booker Group
FINAL DIVIDEND PAYMENT DATE
Air Partner, Helios Underwriting, Hunting, Laird, Restaurant Group
|
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks in the red on Brexit worries European stocks were mostly lower on Wednesday after Bank of England warned that the risks of the UK's Brexit had already begun to "crystallise".
In the BoE's financial stability report on Tuesday, Governor Mark Carney said the central bank will loosen UK banks' requirements to hold extra capital to encourage continued lending after Britain voted to leave the EU.
"Bank of England Governor Mark Carney may well be the only adult in the room when it comes to managing the UK economy at the moment, as speculation rises about the prospect of a UK rate cut next week, there is little he can do to stop the contagion seeping into Europe's sclerotic banking system," said Michael Hewson, chief market analyst at CMC Markets.
"At the beginning of this year European banks were already facing a host of problems, including falling profits, a slowing global economy and negative rates reducing their ability to boost their profitability, at a time when a lot of them were being encouraged to boost lending to the wider economy as well as improve their capital buffers. Quite simply it isn't possible to do all of them at the same time."
Meanwhile in economic data, Germany factory orders unexpectedly fell in May. Orders dropped 0.2% year-on-year, compared to forecasts for a 0.9% rise and the previous month's 0.4% decline.
Next up, Markit releases its purchasing managers' index on Eurozone retail at 0910 BST. Later in the session, US services data from Markit and IM will be published at 1445 BST and 1500 BST respectively.
The main focus, however, will be the Federal Reserve's minutes of its policy meeting on 15 June when the central bank decided to keep interest rates unchanged after a weak May job report and amid uncertainty leading up to the 23 June European referendum. While the Fed's stance on interest rates may have changed since Brexit, the minutes will reveal more details behind the decided to leave policy on hold.
"The Fed is now unlikely to consider rate hikes in the coming months as it analyses the impact of Brexit but the minutes could still provide insight into how close they were to raising and how much of a deterrent the UK's decision could be. For another hike to remain on the table this year, the jobs data will have to remain strong overall and rebound from last month's disappointment," said Craig Erlam, senior market analyst at Oanda.
The US non-farm payrolls report will be released on Friday.
On the company front, Banca Monte dei Paschi di Siena shares recovered after the company said the European Central Bank is pushing the lender to draft a new plan aimed at reducing bad loans.
France's Iliad SA was lower a day after saying it has agreed to create a fourth Italian mobile telecoms operator, paving the way for CK Hutchison Holdings to merge its 3 Italia with Vimplelcom's Wind. |
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| | US Market Report | | US close: Stocks end lower as Brexit concerns mount US stocks finished in the red on Tuesday as investors returned from the long holiday weekend and as concerns about the impact of Brexit mounted.
The Dow Jones Industrial Average fell 0.61%, the S&P 500 dropped 0.68% and the Nasdaq declined 0.82%.
At the same time, oil prices retreated, with West Texas Intermediate down 4.1% to $46.82 a barrel and Brent crude off 4.02% at $48.16 per barrel.
Across the pond, Britain weighed the Bank of England's Financial Stability Report (FSR) on Tuesday.
The BoE loosened UK banks' requirements to hold extra capital and warned that risks from the country's Brexit vote had already started to "crystallise".
In its twice-yearly report, it looked to encourage banks to keep lending by trimming the countercyclical capital buffer rate to 0% from 0.5% with immediate effect and until at least June 2017.
It said the cuts to capital buffers will raise banks' capacity for lending to UK households and businesses by up to £150bn.
"The Fed is now unlikely to consider rate hikes in the coming months as it analyses the impact of Brexit but the minutes could still provide insight into how close they were to raising and how much of a deterrent the UK's decision could be. For another hike to remain on the table this year, the jobs data will have to remain strong overall and rebound from last month's disappointment," said Craig Erlam, senior market analyst at Oanda.
The Federal Reserve releases the minutes of last month's policy meeting on Thursday while Friday sees the all-important non-farm payrolls report.
In currency markets, the pound fell to a fresh 31-year low against the US dollar - hitting $1.3025, intraday - amid ongoing concerns about the fallout from Brexit and after data showed UK services expansion weakened in June to match the 38-year low reached in April, amid a darkening outlook.
In US data, orders for manufactured goods fell by 1.0% to $455.2bn in May after two months of increases, according to the Commerce Department on Tuesday. It was worse than the 0.8% decline economists had been expecting and compared to a 1.8% increase in April.
Meanwhile, New York Fed President William Dudley said the Fed can be patient on raising interest rates due to uncertainty over the impact of Brexit on the US economy and low inflation. Meeting with business and community leaders in Binghamton, New York, he said that the US economy is doing "ok" but that it was too soon to tell the effects of Britain's vote to leave the European Union last month.
On the corporate front, Chevron Corp, Exxon Mobil Corp and their partners said on Tuesday that they had committed to a $36.8bn oil expansion project in Kazakhstan. Shares in Chevron and Exxon dipped.
Shares of McDonald's Corp. rose after the fast food chain won a lawsuit in the EU about other companies using the prefix "Mac" or "Mc".
Goldman Sachs Group slumped after Oppenheimer cut the bank's price target to $214 from $243.
S&P 500 - Risers
Extra Space Storage (EXR) $93.25 +2.87%
Realty Income Corp. (O) $71.47 +2.63%
Public Storage (PSA) $259.74 +2.32%
Kroger Co. (KR) $37.33 +2.13%
Humana Inc. (HUM) $177.21 +1.84%
Pinnacle West Capital Corp. (PNW) $82.56 +1.83%
Dr Pepper Snapple Group Inc. (DPS) $97.34 +1.77%
Campbell Soup Co. (CPB) $67.19 +1.71%
Macerich Co (MAC) $86.67 +1.67%
ProLogis (PLD) $49.54 +1.64%
S&P 500 - Fallers
Danaher Corp. (DHR) $80.40 -21.42%
Harley-Davidson Inc. (HOG) $48.37 -10.84%
Southwestern Energy Co. (SWN) $11.66 -10.38%
Murphy Oil Corp. (MUR) $30.09 -7.87%
Freeport-McMoRan Inc (FCX) $10.50 -7.49%
National Oilwell Varco Inc. (NOV) $32.14 -6.68%
Chesapeake Energy Corp. (CHK) $4.30 -6.32%
Marathon Oil Corp. (MRO) $14.72 -6.12%
Skyworks Solutions Inc. (SWKS) $58.82 -6.04%
Zions Bancorporation (ZION) $23.44 -5.94%
Dow Jones I.A - Risers
Johnson & Johnson (JNJ) $122.27 +0.81%
Procter & Gamble Co. (PG) $85.44 +0.78%
Coca-Cola Co. (KO) $45.43 +0.69%
Pfizer Inc. (PFE) $35.81 +0.67%
Verizon Communications Inc. (VZ) $56.53 +0.53%
Unitedhealth Group Inc. (UNH) $141.56 +0.50%
Wal-Mart Stores Inc. (WMT) $73.14 +0.45%
McDonald's Corp. (MCD) $120.76 +0.30%
Visa Inc. (V) $74.67 +0.26%
Merck & Co. Inc. (MRK) $58.00 +0.10%
Dow Jones I.A - Fallers
JP Morgan Chase & Co. (JPM) $59.55 -2.79%
Caterpillar Inc. (CAT) $74.38 -2.71%
Goldman Sachs Group Inc. (GS) $144.45 -2.56%
American Express Co. (AXP) $59.15 -2.54%
E.I. du Pont de Nemours and Co. (DD) $62.96 -2.18%
Boeing Co. (BA) $126.97 -2.10%
United Technologies Corp. (UTX) $100.62 -2.05%
Cisco Systems Inc. (CSCO) $28.33 -1.63%
Apple Inc. (AAPL) $95.04 -0.89%
Exxon Mobil Corp. (XOM) $93.02 -0.87%
Nasdaq 100 - Risers
Nvidia Corp. (NVDA) $47.35 +1.48%
Activision Blizzard Inc. (ATVI) $40.15 +1.36%
Netflix Inc. (NFLX) $97.91 +1.28%
Dollar Tree Inc (DLTR) $94.98 +1.28%
Paychex Inc. (PAYX) $60.09 +1.09%
Verisk Analytics Inc. (VRSK) $81.62 +0.85%
Intuit Inc. (INTU) $112.74 +0.74%
Monster Beverage Corp (MNST) $160.91 +0.74%
Priceline Group Inc (PCLN) $1,275.03 +0.60%
Automatic Data Processing Inc. (ADP) $93.31 +0.60%
Nasdaq 100 - Fallers
Liberty Global plc Series A (LBTYA) $27.49 -7.44%
Liberty Global plc Series C (LBTYK) $27.01 -6.86%
Skyworks Solutions Inc. (SWKS) $58.82 -6.04%
Micron Technology Inc. (MU) $11.91 -4.72%
Western Digital Corp. (WDC) $44.72 -3.77%
Seagate Technology Plc (STX) $23.16 -3.62%
Dish Network Corp. (DISH) $50.81 -3.35%
NetApp Inc. (NTAP) $23.48 -3.33%
Bed Bath & Beyond Inc. (BBBY) $42.26 -3.01% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: Sterling, ITV, BT, Ofcom, Network Rail The pound plumbed new depths against the dollar and investors rushed for the perceived havens of gold and government bonds as financial turmoil intensified in the wake of the UK's Brexit vote, with sterling hitting $1.2798 in early Asian trading on Wednesday - its lowest in more than 31 years. Investors, spooked by a number of UK property funds halting redemptions, switched to risk-off mode and sent yields on government bonds tumbling to new lows. - Financial Times
ITV is set to seek to charge Virgin Media to broadcast its flagship channel, after the government said it will scrap a law that could boost its coffers by tens of millions of pounds a year. The UK's public sector broadcasters, which include the BBC and Channel 5, have argued for years that that they should receive significant fees from pay-TV operators because subscribers spend most of their time viewing their channels. - Guardian
ITV has set itself on a collision course with its biggest shareholder after the Government announced it will scrap laws that guarantee Virgin Media free access to its main channel. The pay-TV operator is owned by Liberty Global, the New York-listed cable giant that also owns 9.9pc of Britain's biggest commercial broadcaster. It is understood that once the law changes under the new Digital Economy Act, unveiled by the Government on Tuesday, ITV intends to demand negotiations with Virgin Media with a view to extracting a fee for its main channel. - Telegraph
Ofcom has been accused of making "ridiculous" policy decisions that will cement BT's position in the broadband market as a "single, unassailable wholesale infrastructure provider" in a High Court challenge by alternative network builder CityFibre. The communications regulator is planning a major overhaul of the broadband market by allowing rival service providers such as Sky and Vodafone to connect their own equipment to the high-capacity fibre-optic lines inside BT's Openreach network at controlled prices. - Telegraph
When three funds holding £9bn of investors' money halted trading this week, it brought back memories of the credit crunch of 2007, when a run on property funds was an early sign of the financial crisis. But fund managers and others in the industry say much has changed since a race to the bottom in commercial property values helped to cripple banks and plunge the world into financial distress. "This is not a Lehman Brothers moment," said one fund manager in the sector. - Financial Times
Government plans to electrify domestic heating and encourage a switch away from gas-fired boilers and radiators are "mad", the boss of Britain's biggest energy supplier has claimed. Iain Conn, chief executive of Centrica, the owner of British Gas, has attacked plans to encourage families to strip out their domestic gas-fired home central heating systems and replace them with electricity-powered alternatives. The scheme is part of efforts to reduce emissions of greenhouse gases by 80 per cent by 2050. - The Times
British Airways has missed the regulatory deadline for agreeing a plan to fill its multibillion pound pension deficit, because of a legal dispute over increased payouts for retired workers. By June 30, the airline was meant to have agreed a way of making good the funding deficit in its two main pension schemes, which stood at £3.3bn in 2012. - Financial Times
About £1bn of work that Network Rail planned to carry last year was not undertaken by the troubled infrastructure company and will instead be completed at a later date, according to the transport regulator. The state-owned business, which manages tracks, stations and power lines, deferred £981m of projects, including renewals and enhancement work, in England and Wales in the 12 months to the end of March, the Office of Rail and Road said. - Telegraph
The government has withdrawn a subsidy offer to help to bankroll an £800 million gas-fired power station in Manchester after its developers failed to win funding for the scheme. Carlton Power, developer of the Trafford gas-fired power station, confirmed that it had received a termination notice after missing a deadline set by the government to begin the project. - The Times
Mastercard is facing a multi-billion pound lawsuit for imposing card charges that were ultimately borne by UK consumers in what is set to be one of Britain's first US-style class action cases.
The landmark lawsuit will be one of the first brought under the Consumer Rights Act 2015, which enables consumers to bring collective damages claims on behalf of individuals who have suffered losses in competition cases. - Financial Times | | |
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