| | | | | | | When can you retire? If you have a £250,000 portfolio, download the guide for retirees written by Forbes columnist and money manager Ken Fisher's firm. Even if you have something else in place, this must-read guide includes research and analysis you can use right now. Don't miss it! 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: FTSE ends lower as pound rises on BoE inaction, Brexit ruling The FTSE 100 closed down 0.80% on Thursday as the pound strengthened after the Bank of England stood pat on policy and the High Court ruled that Parliament must vote on Brexit.
The pound rose 1.11% versus the dollar to $1.2441 at 1635 GMT.
As expected, the BoE voted unanimously to keep interest rates at 0.25%, bond purchases at £435bn and corporate bond purchases at up to £10bn. The Bank cited better-than-expected third quarter economic growth data in its decision to sit tight on any policy changes. Previous to the data, the BoE had suggested the possibility of a rate cut in light of Brexit uncertainty.
"Given the stronger than expected GDP figures for Q3, it is not a surprise that the Bank has kept interest rates on hold. However, if the economy weakens in the coming quarters, a further cut to the base rate would be a real possibility," said Suren Thiru, head of economics at the British Chambers of Commerce.
In its latest Inflation Report, released alongside its policy announcement, the Bank revised its economic growth forecast to 2.2% this year, up from its prior 2.0% estimate.
Consumer price inflation is seen at 1.3% for the current year, up from the 1.2% calculation in the previous Inflation Report. Inflation for 2017 and 2018 is expected to rise to 2.7%, up from the prior 2.0% and 2.4% estimates respectively.
The Bank, which is targeting 2% inflation, said there are "limits to the extent to which above-target inflation can be tolerated".
"With the BoE equally open to a rate rise as a rate hike, a rise of inflation to 2.7% next year could put the bank in a tough position," said IG's Joshua Mahony.
"Given the possible challenges that will face the UK economy should we trigger article 50, it will be difficult for Carney and co to keep growth, jobs and inflation within target."
Meanwhile, the High Court on Thursday said the government will not be allowed to invoke Article 50, which starts the process of leaving the EU, without a vote in Parliament.
The government said it was "disappointed" by the ruling and will appeal the decision to the Supreme Court for a hearing expected on 7 December.
Prime Minister Theresa May has previously said she will trigger Article 50 by the end of March 2017.
"The government will appeal the decision so it's not game-over yet," said CMC Markets market analyst Jasper Lawler. "But it's another reason to be near-term positive on Sterling, which will weigh on prospects for the UK's international-leaning stock market."
In other UK news, the Markit/CIPS UK services purchasing managers' index rose to 54.5 from 52.6 the month before, which was ahead of the consensus estimate of 52.4 and the fastest expansion since January. A reading above 50 indicates an expansion in sector activity.
Weakness in the pound since the Brexit vote has driven a "marked intensification of cost pressures" among services companies, Markit said, with input price inflation surging to the highest since March 2011 and with the month-on-month acceleration a record since the survey began 20 years ago.
Elsewhere, Chinese service activity growth accelerated in October at the fastest pace in four months. The Caixin services PMI rose to 52.4 last month from 52.0 in September.
The Eurozone unemployment rate was steady in September at its lowest level in more than five years, according to the latest figures from Eurostat, in line with analysts' expectations. The unemployment rate came in at 10%, unchanged from a downwardly-revised 10% the month before, and down from 10.6% in September last year. Eurostat's previous estimate for August was 10.1%.
In the US, the Labor Department said initial jobless claims last week were up 7,000 from the previous week's unrevised level to 265,000. Economists had been expecting claims to be unchanged at 258,000.
Markit's final US services PMI rose to 54.8 in October, in line with the 'flash' estimate and up from 52.3 in the previous month.
In contrast, ISM's non-manufacturing index fell to 54.8 in October from 57.1 in September. Economists had expected a reading of 56.0.
US factory orders climbed 0.3% in September after an upwardly revised 0.4% increase in August, the Commerce Department said.
In corporate news, biopharmaceutical company Shire got a boost as Bank of America-Merrill Lynch added the stock to its 'Europe 1' list with a 'buy' rating and 6,970p price target, saying the shares are too cheap. Citigroup was also pushing the stock ahead of the company's capital markets day, saying the risk/reward is compelling.
Dixons Carphone rallied as Morgan Stanley upgraded the stock to 'equalweight' from 'underweight' and kept its price target at 315p.
Randgold Resources shares slumped despite positive results in its third quarter keeping it on track to meet its 2016 guidance, as metal prices declined.
Pharmaceutical giant GlaxoSmithKline was weaker as its stock went ex dividend.
Shawbrook gained after the challenger bank said organic originations were up 23% in the third quarter year-to-date to £1.5bn.
Satellite services provider Inmarsat was in the black after it reported a jump in third-quarter revenues following strong performances in the government and aviation divisions, but a drop in pre-tax profit.
Esure shares tumbled following the completion of the de-merger of price comparison website Gocompare.com. |
| | Get your FREE SIGNALS now! | | Tradeo is a Social Trading Network & Brokerage - tailored for your success.
|
| Market Movers
FTSE 100 (UKX) 6,790.51 -0.80%
FTSE 250 (MCX) 17,581.91 0.68%
techMARK (TASX) 3,308.01 -0.33%
FTSE 100 - Risers
Royal Bank of Scotland Group (RBS) 193.90p 6.13%
Dixons Carphone (DC.) 341.50p 4.63%
British Land Company (BLND) 607.00p 3.76%
Marks & Spencer Group (MKS) 351.20p 3.20%
easyJet (EZJ) 997.50p 3.05%
Legal & General Group (LGEN) 213.60p 2.89%
Whitbread (WTB) 3,683.00p 2.82%
Land Securities Group (LAND) 1,007.00p 2.44%
Shire Plc (SHP) 4,539.00p 2.43%
Sainsbury (J) (SBRY) 258.60p 2.25%
FTSE 100 - Fallers
Randgold Resources Ltd. (RRS) 7,110.00p -6.26%
Fresnillo (FRES) 1,703.00p -4.33%
GlaxoSmithKline (GSK) 1,554.00p -3.27%
Johnson Matthey (JMAT) 3,265.00p -3.09%
Diageo (DGE) 2,070.50p -2.91%
Relx plc (REL) 1,391.00p -2.80%
Croda International (CRDA) 3,367.00p -2.72%
Anglo American (AAL) 1,100.00p -2.70%
Polymetal International (POLY) 924.00p -2.69%
Compass Group (CPG) 1,421.00p -2.47%
FTSE 250 - Risers
Shawbrook Group (SHAW) 242.30p 14.62%
Inmarsat (ISAT) 805.50p 10.34%
Lancashire Holdings Limited (LRE) 758.00p 6.91%
Indivior (INDV) 369.00p 5.31%
AO World (AO.) 168.00p 5.12%
Sports Direct International (SPD) 305.50p 4.51%
Debenhams (DEB) 56.00p 4.48%
CMC Markets (CMCX) 201.00p 4.15%
International Personal Finance (IPF) 303.50p 3.97%
Just Eat (JE.) 582.00p 3.93%
FTSE 250 - Fallers
esure Group (ESUR) 196.10p -26.22%
Evraz (EVR) 189.00p -7.35%
Howden Joinery Group (HWDN) 360.00p -5.73%
Playtech (PTEC) 874.00p -5.10%
Laird (LRD) 134.90p -4.12%
NMC Health (NMC) 1,421.00p -3.80%
Acacia Mining (ACA) 531.00p -3.73%
Petra Diamonds Ltd.(DI) (PDL) 149.10p -3.18%
Monks Inv Trust (MNKS) 518.00p -2.63%
Scottish Mortgage Inv Trust (SMT) 320.10p -2.19% |
| | Think You Know The Markets? Prove It | | Put your trading knowledge to the test at City Index. We’ll be right behind you, with expert analysis and our award winning platforms. The rest is up to you. Losses can exceed deposits. Trade now |
| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks slip after bounce fades The main indices in Europe finished mostly lower, following a short-lived boost after the UK High Court ruling on Article 50 and some decent results from ING and Societe Generale.
The DAX closed down by 0.43% to 10,325.88, the CAC 40 was off 0.07% to 4,411.68 and the benchmark Europe Stoxx 600 was flat at 331.56.
In London, the FTSE 100 fell as the pound strengthened after the UK High Court ruled that Parliament must vote on whether the government can start the formal Brexit process.
The pound rose 1.25% to $1.2457 as the High Court on Thursday said the government will not be allowed to invoke Article 50, which starts the process of leaving the EU, without a vote in Parliament.
The government said it was "disappointed" by the ruling and will appeal the decision to the Supreme Court for a hearing expected on 7 December.
Prime Minister Theresa May has previously said she will trigger Article 50 by the end of March 2017.
Neil Wilson, market analyst at ETX Capital, said: "Even if Article 50 is triggered as planned, this judgment could underpin sterling for some time and assuage fears about a 'hard Brexit' if the pro-EU camps in Parliament start to dictate terms to the government in return for voting with the people.
"We could see this create a floor under the pound around $1.25."
The pound was also lifted by the Bank of England's decision keep interest rates unchanged, as expected by economists.
The BoE voted unanimously to leave interest rates at 0.25%. The attention now turns to the Inflation Report press release at 1230 GMT.
Meanwhile oil prices were again sliding lower, with Brent losing 1.3% at $46.26 per barrel and West Texas Intermediate retreating 1.75% to $44.56.
On Wednesday, the Federal Reserve decided to stay put on policy, as widely expected, but appeared to suggest that a hike could be on the cards at its next meeting in December.
In corporate news, Credit Suisse crumbled 7.39% after posting a big drop in third-quarter profits as revenue declined 10%, while Repsol fell despite saying it swung to a net profit in the third quarter.
On the upside, Societe Generale gained 5.51% after the bank's third-quarter profit beat analysts' expectations, while ING shares were up 2.29% as third-quarter numbers came in stronger than expected.
Beiersdorf rallied by 4.74% after lifting its full-year profit guidance and reporting better-than-expected sales for the January to September period.
Luxury goods group Hermes reversed earlier gains, trading up 0.4% as it said sales in the first nine months of the year rose 7% compared to the same period a year ago, while Air France-KLM ticked higher as it posted an increase in third-quarter net profit.
Wm Morrison Supermarkets rose 0.95% after reporting its fourth consecutive quarter of growth, helped by its biggest ever Halloween.
Asset manager Schroders gained 0.54% as it said third-quarter assets under management rose 9.1%.
Satellite services provider Inmarsat surged 10.34% after reporting a jump in third-quarter revenues following strong performances in the government and aviation divisions, but a drop in pre-tax profit.
On the data front, figures from Eurostat showed the Eurozone unemployment rate was steady in September at its lowest level in more than five years, in line with analysts' expectations.
The unemployment rate came in at 10%, unchanged from a downwardly-revised 10% the month before, and down from 10.6% in September last year. |
| | IS Lloyds a Brexit Bargain? | | Get all the details now in this FREE Report Lloyds shares have fallen around 40% from last year's high. Download your FREE special report now |
| | US Market Report | | US open: Stocks mixed as it prepares for Clinton or Trump US equities were mixed on Thursday after a surge of economic data was released, while markets prepared for either a Hilary Clinton or Donald Trump presidency.
The Dow Jones Industrial Average rose 0.18% to 17,991.42 points and S&P 500 climbed 0.08% to 2,099.63 points, but the Nasdaq fell 0.2% to 5,095.37 points at 1500 GMT.
Oil prices retreated as investors remained skeptical over OPEC's planned production limit.
Brent crude was down 0.08% to $46.82 per barrel and West Texas Intermediate declined by 0.39% to $45.16 at 1509 GMT.
On Wednesday the Federal Reserve as, expected, stood pat on increasing interest rates with less than a week to go before the presidential election, but indicated that a December hike could be on the cards.
Connor Campbell, a financial analyst at Spreadex, said: "The Dow Jones could only find mild satisfaction in the dollar's weakness this Thursday, rising a meagre 0.2% after the bell. That leaves the index under 18000, until this week a position it hadn't been in since mid-September.
"A weaker than forecast ISM services PMI (at 54.8, the same as the Markit reading) didn't help, though there isn't much ambiguity where the brunt of the Dow's negativity is coming from."
He added: "The US election is now only 5 days away, and with the polls painting an inconsistent picture investors can be forgiven for fearing the worst (a Trump win, if that wasn't clear)."
Meanwhile, the number of Americans filing for unemployment benefits unexpectedly rose last week, as initial jobless claims were up 7,000 from the previous week's unrevised level to 265,000. Economists had been expecting claims to be unchanged at 258,000.
This was the 87th consecutive week of initial claims below 300,000 - the longest streak since 1970.
Non-farm labour productivity, the goods and services produced by workers per hour, increased to a seasonally adjusted annual rate of 3.1% in the third quarter, due to a rise in output while hours grew slightly.
Markit's services purchasing managers' index rose to 54.8 in October from 52.3 in the previous month, above the 50 mark that separates contraction from expansion. It was the steepest rate of expansion for almost a year.
Adjusted for seasonal influences, the composite PMI output index came was 54.9 from 52.3, the strongest upturn in private sector output since November 2013.
Factory orders edged higher in September by 0.3% month-on-month to $455.5bn, economists had forecast a 0.4% rise.
In the corporate news, Facebook's shares slumped 4.29% after the social media company cautioned after the close on Wednesday that advertising revenue growth will slow "meaningfully".
Shares in natural gas producer Chesapeake Energy rose 2.92% as it reported that production fell 3.3% in the third quarter, compared to last year to 59m barrels of oil equivalent, due to asset sales.
Net loss fell nearly 75% to $1.20bn, while adjusted profit was 9 cents per share, above analysts' expectations of 3 cents.
Avon Products' shares fell 5.31% after the cosmetics company said it swung to a £35.6m profit in the quarter from a loss of $691m a year earlier. |
| | 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 
|
| | Broker Tips | | Broker tips: Shire, Next, Cineworld Credit Suisse downgraded retailer Next to 'underperform' from 'neutral' and slashed the price target to 4,600p from 4,950p.
The bank said it was becoming increasingly cautious about Next's ability to stabilise margins in an environment of rising opex and input costs, and with brand sales looking increasingly mature.
"In particular the strategy of passing through higher costs, in a deflationary environment, and continuing to add space, seems likely to lead to cost de-leverage, without increasing productivity gains," CS said.
The bank had upgraded the stock back in May as it reckoned the environment in the second half and through 2017 would start to improve, but it no longer believes that, as sterling weakness is likely to hit UK consumption and input costs as FX hedges roll off in H2.
"We are also concerned about the maturity of the Next Brand, and the sustainability of large market shares in a fragmenting apparel market, where store portfolios are of decreasing relevance."
Cineworld Group's shares rose on Thursday as HSBC initiated coverage of the stock with a 'buy' rating and a target of 720p.
HSBC said Cineworld is a "UK cash cow" with the one of the market leading cinema chains in the nation. It has 115 sites generating more than £100m in earnings before interest, tax, depreciation and amortisation.
"Management's strategy of investing in sites and lean operations is paying off, leaving it with an up-to-date estate, circa 500,000 monthly subscribers and a strong cash base to capture market share for the upcoming blockbuster year in 2017," HSBC said.
"The counter cyclical nature of the industry should benefit from any Brexit related uncertainty."
The first half of 2016 struggled against tough comparatives in 2015 with the release of blockbuster films Spectre, Star Wars, Avengersand Jurassic Park.
However, the second half has picked up with a strong July-September quarter and HSBC expects the momentum to continue.
"The future looks bright for the rest of H2 16 with a number of major titles including Doctor Strange, Harry Potter's: Fantastic Beasts and Where to Find Them and Star Wars: Rogue One setting in the rest of the year for success," HSBC said.
Shire got a boost on Thursday as Bank of America Merrill Lynch added the stock to its 'Europe 1' list with a 'buy' rating and 6,970p price target, saying the shares are too cheap.
The bank pointed out that Shire shares have been weak since the third quarter results due to a 3% revenue miss on weakness in the legacy Baxalta franchises in their first full quarter in Shire.
"However, concern looks unwarranted given the miss was due to order phasing and FY16 guidance was actually tightened to the upper half of its $12.70-$13.10 range."
Merrill said the share price has failed to fully regain the ground it lost after proposing its acquisition of Baxalta in August last year. It noted the stock is trading at just 9x its 2018 price-to-earnings ratio despite forecast 10% earnings per share compound annual growth rate between 2018 and 2021.
The bank also argued that risks are now priced into the stock. "Although markets worry about new competition to the acquired hemophilia franchise from Roche's competitor ACE-910, and a potential $10bn tax liability from the Baxalta deal, we believe these are more than priced in."
In addition, Merrill said hemophilia sales may be more robust than the market fears and that the acquired immunology business is largely being ignored.
Citigroup was also pushing the stock on Thursday ahead of the company's capital markets day, saying the risk/reward is compelling.
Citi said the share price was discounting an overly bearish outlook for hematology. | | |
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