| | | | | | | Can You Afford to Retire? Ready to retire? If you have a £250,000 portfolio, download the must-read guide for retirees called "The 15-Minute Retirement Plan." Click Here to Download Your Guide! Fisher Investments UK 
| | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London close: Banks pace gains as interest rates rise Stocks edged higher at the start of the week despite uncertainty about the new US administration's economic policies which weighed on government bond prices around the globe and boosted the value of the US dollar.
The FTSE 100 finished up by 0.34% or 22.75 points at 6,753.18 with banks and life insurers tracking the rise in government bond yields.
By the closing bell, the yield on the benchmark 10-year gilt was up by four basis points to 1.41% and cable down by 0.99% to 1.2473.
Oil prices were again lower, with West Texas Intermediate off 2.7% to $42.27 a barrel and Brent crude was losing 2.6% to trade at $43.60.
In an interview on CBS's 60 minutes programme, aired over the weekend, US President-elect Donald Trump announced he would appoint Reince Preibus, the chairman of the Republican National Committee, as his chief of staff.
Some analysts suggested that was a 'market-friendly' outcome.
However, that followed other reports that the election had already claimed its first victim, in the form of President Obama's signature trade deal, the Trans-Pacific Partnership.
Division on what Trump means for US economic policy
Against that backdrop, strategists were divided as to the most likely path for US economic policy under a Trump administration.
For analysts at Morgan Stanley, the most likely scenario meant trade protectionism would go little further than strong rhetoric and that Trump would deliver measurable tax reform and infrastructure spending that, on net, would provide a healthy lift to the economy and enable a pick-up in the pace of monetary policy normalisation.
In such a scenario, US GDP growth would be lifted by 0.3 percentage points in both 2017 and 2018, while the Federal Reserve would hike rates two times in 2017 and three times in 2018, Morgan Stanley said.
Goldman Sachs on the other hand expected growth to be somewhat weaker and inflation to be somewhat stronger than would otherwise have been the case.
Unlike Morgan Stanley, Goldman expected Trump to be able to implement part of his anti-trade policies and for immigration to slow somewhat under his presidency.
Among the more cautious views on interest rates, on 11 November strategists at HSBC upped their first quarter 2017 projection for the yield on the benchmark 10-year US Treasury note from 1.50% to 2.50%.
Yet their end-2017 forecast was kept at 1.35%, on expectations for a slowdown in the economy if yields rose.
"There are now widespread expectations of tax cuts and increased spending, particularly on infrastructure, but little clarity on how such programmes will be financed. We cannot afford to wait for more detail before changing our bond yield forecasts.
"We are cautious about how many of Mr. Trump's pledges can be delivered, including on trade and tariffs. What we do have is analysis of the term premium, inflation expectations, and forward yields, which gives us some insight into how far the Treasury curve could reprice," HSBC's Head of Fixed Income Research, Steven Major, and Lawrence Dyer, the bank's chief US rates strategist, said.
Greencore chomps on the bit
Irish convenience food group Greencore was a high riser after reporting a jump in full-year revenue and earnings as it hiked its dividend and announced the proposed acquisition of Peacock Foods for an enterprise value of $747.5m.
On the corporate front, housebuilder Taylor Wimpey advanced as it said in a trading update that the UK housing market remained resilient, despite the implications of Brexit still being unclear, and reported strong trading in the second half.
Irish distribution and business support services company DCC surged after reporting a rise in half-year revenue and saying full-year operating profit is likely to be ahead of market expectations.
Legal & General was on the front foot after announcing the completion of a £1.10bn pension buyout deal with Rolls-Royce.
Standard Life gained ground despite saying that the possible combination involving its Indian joint venture, HDFC Life, and Max Life Insurance Company, Max Financial Services and Max India, had hit a roadblock.
Bookmaker William Hill pushed higher after saying it expects full-year adjusted operating profit to be at the top end of its guidance, while Tesco rallied as HSBC upped its stance on the stock to 'buy' from 'hold'.
Shares in gaming software development company Playtech rose as it agreed to buy Consolidated Financial Holdings for up to $120m - a deal it said will enhance its position as it continues to build a B2B offering in its financials division. |
| | Discover a new way to trade with eToro | | Trade 1000s of markets independently, connect with millions of other traders and copy top performing traders move-for-move. Click Here 
|
| Market Movers
FTSE 100 (UKX) 6,753.18 0.34%
FTSE 250 (MCX) 17,472.40 0.16%
techMARK (TASX) 3,308.08 -0.04%
FTSE 100 - Risers
Barclays (BARC) 212.30p 5.23%
Royal Bank of Scotland Group (RBS) 210.40p 4.37%
Capita (CPI) 573.50p 4.18%
Tesco (TSCO) 205.85p 3.73%
Ashtead Group (AHT) 1,430.00p 3.25%
Dixons Carphone (DC.) 336.80p 3.15%
Taylor Wimpey (TW.) 150.10p 3.09%
Persimmon (PSN) 1,739.00p 3.08%
BHP Billiton (BLT) 1,336.50p 2.85%
DCC (DCC) 6,205.00p 2.82%
FTSE 100 - Fallers
Polymetal International (POLY) 795.50p -4.90%
Severn Trent (SVT) 2,095.00p -3.77%
SSE (SSE) 1,436.00p -3.17%
Associated British Foods (ABF) 2,516.00p -3.16%
National Grid (NG.) 927.00p -3.00%
United Utilities Group (UU.) 854.50p -2.79%
Mediclinic International (MDC) 740.00p -2.76%
Randgold Resources Ltd. (RRS) 5,815.00p -2.35%
Sky (SKY) 770.00p -2.28%
easyJet (EZJ) 1,032.00p -2.18%
FTSE 250 - Risers
Greencore Group (GNC) 319.70p 9.52%
Crest Nicholson Holdings (CRST) 459.60p 5.32%
OneSavings Bank (OSB) 324.90p 5.15%
Vesuvius (VSVS) 389.00p 5.14%
JRP Group (JRP) 130.00p 4.00%
International Personal Finance (IPF) 285.00p 3.64%
Shawbrook Group (SHAW) 258.00p 3.62%
Henderson Group (HGG) 239.50p 3.55%
Man Group (EMG) 127.10p 3.33%
Morgan Advanced Materials (MGAM) 275.30p 3.07%
FTSE 250 - Fallers
Hochschild Mining (HOC) 231.70p -6.12%
AO World (AO.) 162.60p -4.18%
Drax Group (DRX) 290.10p -3.94%
Centamin (DI) (CEY) 135.80p -3.76%
Pennon Group (PNN) 770.00p -3.08%
Tullow Oil (TLW) 239.20p -3.08%
DFS Furniture (DFS) 219.10p -3.05%
Acacia Mining (ACA) 440.30p -2.65%
Big Yellow Group (BYG) 680.00p -2.58%
CMC Markets (CMCX) 199.00p -2.45% |
| | ADVFN CEO Interview Hurricane Energy | | Click here to find out more! |
| | US Market Report | | US open: Stocks continue to advance as dollar rises US stocks continued their ascent on Monday, as investors were seemingly positive about president-elect Donald Trump's economic policies of deregulation, lower taxes and increased infrastructure spending, while the dollar rose.
The Dow Jones Industrial Average rose 0.45% to 18,931.56 points, the S&P 500 increased 0.29% to 2,170.62 points and the Nasdaq hastened by 0.09% to 5,241.58 points at 1517 GMT.
An 80 point increase at the open has seen the Dow Jones rocket to a record peak, crossing the 18,900 mark for the first time in its history, according to Connor Campbell, financial analyst at Spreadex.
"That is, however, slightly less exciting than what the futures had promised this morning, when the Dow was teasing an open closer to the mythic 19,000 mark. Of course there is plenty of time for all that - in the last week the Dow has proven it works best when freed from the weight of Europe."
He said that the dollar and the Dow Jones have continued to rise in unison, which was rare before the election, as an interest rate hike seemed imminent from the Federal Reserve.
"Not that the chances of a rate hike have disappeared, if anything, the Fed may be forced to increase rates if it wants to get a head-start on the potential 'Trumpflation' the market has been so keen to price in during the last few sessions. Against both the euro and the pound the dollar took back more than 1%, leaving the former at a nine-month low and taking the latter back towards $1.245," Campbell said.
The dollar was up 1.63% against the yen to 108.39, rose 1.26% against the euro to 1.0718 and climbed 1.1% against sterling to 1.2454.
Treasury bonds were under pressure, however, with the yield on the 10-year bond trading at its highest level since early January amid worries that Trump's policies with be inflationary, causing the Fed to hike rates sooner than expected. Bond yields move inversely to prices.
In commodity markets, gold on Comex declined 0.96% to $1,212.50 per troy ounce at 1458 GMT.
Oil prices retreated while a PricewaterhouseCoopers report said it was unlikely that prices will return to $100 a barrel in the future, but could rise between $60 and $70 in the next few years.
Brent crude fell 1.26% to $44.19 per barrel and West Texas Intermediate was down 1.37% to $42.81 at 1458 GMT.
On the macroeconomic front, Chinese data released earlier was mixed as the country's fixed-asset investment was up 8.3% in the January-to-October, ahead of forecasts, but industrial output and retail sales growth in October fell short of expectations.
In corporate news, German engineer Siemens agreed to buy Mentor Graphics Corp for $4.5bn. Mentor's shares flew 18.9%.
Harman International Industries' shares soared 25.4% as technology giant Samsung said it would acquire it for $8bn.
Shares in AMC Entertainment climbed 0.87% as the company is poised to win approval to buy Carmike Cinemas for $1.2bn, which would make it the largest cinema chain in the world.
Twitter's shares edged higher by 1.75% after investor Jana partners disclosed that it had over 2.9m shares in the social media company.
The Treasury Department is to auction three and six-month bills at 1630 GMT. |
| | Q4 Top 10 Stock Picks | | Moving into the final quarter of the year, a packed events calendar is going to create opportunities aplenty for investors, and we've highlighted the top 10 stocks we believe could outperform the market in Q4. Download this report today Losses can exceed deposits |
| | Broker Tips | | Broker tips: Marks & Spencer, Tesco, SIG Citigroup upgraded Marks & Spencer to 'buy' from 'neutral' and lifted the price target to 365p from 325p as it said downside was limited and the UK strategy presents upside.
The bank said that while it remains cautious about the company's strategy to sustainably reignite sales growth, it has become more confident about delivery on the UK store plan and sees opportunity on central cost savings.
In addition, Citi highlighted encouraging signs around full price clothing sales and said that despite the increased cash costs, the free cash flow yield is 6.5% in FY18E and 11% in FY19E, with a dividend yield of 6%.
"With the stock down around 7% since the strategy update, investor concerns look overdone.
"Our buy rating is predicated on MKS being able to deliver on its strategic elements whilst maintaining its returns within the Food business. But we see limited downside to the shares at this level and upside from potential upgrades of around 25% over the medium term if MKS delivers."
The bank kept its full-year 2017 pre-tax profit estimate at £608m but lifted its estimate for FY18 by 4% to reflect half the benefit from the International loss elimination.
Citi said the investment case for Marks is not without risks and it sees more value in the likes of Dixons and Pets at Home, both of which it rates at 'buy'.
HSBC upgraded Tesco to 'buy' from 'hold' and lifted the price target to 260p from 195p, saying the recovery has gained pace, with sales and market share up.
When the bank downgraded the stock back in July, it was due to worries that ASDA might undertake a major price repositioning. While it still expects ASDA to get more aggressive on price, it pointed out that the pace of the Tesco recovery is increasing, meaning it is better able to cope with whatever ASDA throws at it.
"Volumes, cash sales and market share are all improving. At the same time, the company is keeping a tight control on costs to ensure the high contribution margin of extra sales falls through to the bottom line, allowing further investment in price. This momentum gives Tesco firepower to defend against ASDA or to fund its own pricing initiatives."
HSBC expects Tesco to be highly cash generative by 2020, with a UK operating margin of around 4%.
"At this point, we expect the industry will be back to equilibrium, with Tesco having proved the long-term winner."
Canaccord Genuity downgraded SIG to 'hold' from 'buy' and cut the price target to 99p from 130p following the company's profit warning and announcement of its chief executive's departure last week.
SIG said on Friday that it now expects underlying pre-tax profit for the year ending 31 December to be between £75m and £80m, which is down from £87.4m last year and below consensus estimates of £90m. It attributed the expected decline in part to weaker-than-expected trading conditions since the EU referendum.
As a result, Canaccord has cut its forecasts and now expected 2016 pre-tax profit of £77m, down from a previous estimate of £95m followed by £78.5m in 2017, down from a previous estimate of £102m. In addition, the brokerage said it cautious the group will manage to retain its incremental cost savings.
"Until there is more visibility on both trading and the plans of a new management team, we find it difficult to see a compelling investment case, other than acknowledging the potential to extract better growth and returns. |
| | Discover a new way to trade with eToro | | Trade 1000s of markets independently, connect with millions of other traders and copy top performing traders move-for-move. Click Here
| | |
New ADVFN Service - FREE Reports Get your free report on Isa's, Investment Trusts, Funds,
Sipps Travel and Cars - FREE and Easy service CLICK HERE
To advertise in the Euro Markets Bulletin please contact advertise@advfn.com |
| | | | | | | To unsubscribe from this news bulletin or edit your mailing list settings click here. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +44 (0) 207 0700 961. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49 | |
No comments:
Post a Comment