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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 little changed but miners and housebuilders gain London stocks were little changed in early trade as investors digested the latest Federal Reserve minutes and looked ahead to UK services data and some key US jobs figures, although miners and housebuilders racked up healthy gains.
At 0830 GMT, the FTSE 100 was flat at 7,190.70. Meanwhile, oil prices were just a touch weaker, with West Texas Intermediate down 0.2% to $53.14 a barrel and Brent crude 0.3% lower at $56.27.
CMC Markets' Michael Hewson said: "Last night's Fed minutes reinforced US policymaker expectations that we could well see multiple rate rises this year after last month's rate rise, though officials remained cautious given the lack of clarity on the type of fiscal expansion that might be forthcoming in the coming months."
Minutes from the meeting released on Wednesday showed that several committee members believed the current policy path of gradual rate increases was not likely to be appropriate due to the possibility that Trump and a Republican-controlled Congress will push through policies to stimulate the economy further, such as tax cuts, infrastructure spending and regulatory loosening.
"Fed officials pointed to a number of risks that, if realized, might call for a different path of policy than the currently expected," the minutes said.
Almost all of the rate setters said the risks of growth overtaking the FOMC's forecasts had grown because of the possibility of the Trump stimulus plans, while the key theme was the even greater-than-usual degree of uncertainty over the outlook for growth, inflation, and interest rates.
In corporate news, housebuilder Persimmon rallied as it said its private sales rate tailed off towards the end of the year but the value of its forward sales has jumped as it enters 2017.
The FTSE 100 group said its revenues for calendar 2016 of £3.14bn were 8% ahead of the previous year, with average selling prices climbing 4% though the rate of annual sales growth for the second half slowed to 15% from the 19% announced in early November.
Peers Taylor Wimpey and Barratt Developments were boosted by the news.
Tullow Oil was in the red after it announced that its chief financial officer Ian Springett was taking an extended leave of absence in order to undergo treatment for a medical condition. The group said Les Wood, vice president finance and commercial, has been appointed interim CFO.
In terms of sectors, miners were among the best performers amid rising metals prices as the dollar retreated, with Randgold Resources, Anglo American and Glencore all on the front foot.
Still to come, investors will eye the release of UK services PMI at 0930 GMT. In the US, the focus will be on the ADP employment report at 1315 GMT ahead of Friday's all-important nonfarm payrolls, while initial jobless claims are at 1330 GMT.
Hewson said: "We've already seen fairly robust manufacturing and construction numbers this week and a decent number in the services sector will raise expectations for a strong end to a year that six months ago had a lot of people marking down their economic forecasts aggressively.
"Having seen a strong November number of 55.2, expectations are for a slight slowdown in December, but nothing too disastrous with 54.8 being the consensus view, reinforcing an expectation that we could well see a Q4 expansion close to Q3's 0.6%." |
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| Market Movers
FTSE 100 (UKX) 7,190.70 0.01%
FTSE 250 (MCX) 18,214.49 0.35%
techMARK (TASX) 3,405.47 0.51%
FTSE 100 - Risers
Persimmon (PSN) 1,891.00p 4.48%
Taylor Wimpey (TW.) 164.80p 2.11%
Randgold Resources Ltd. (RRS) 6,525.00p 1.95%
Barratt Developments (BDEV) 493.10p 1.90%
Marks & Spencer Group (MKS) 329.50p 1.89%
Anglo American (AAL) 1,159.00p 1.44%
Glencore (GLEN) 286.50p 1.29%
Informa (INF) 684.00p 1.26%
Fresnillo (FRES) 1,328.00p 1.07%
SSE (SSE) 1,552.00p 1.04%
FTSE 100 - Fallers
Rolls-Royce Holdings (RR.) 647.00p -3.07%
RSA Insurance Group (RSA) 565.00p -1.91%
Next (NXT) 4,013.00p -1.76%
Prudential (PRU) 1,618.00p -1.46%
Micro Focus International (MCRO) 2,109.00p -1.45%
Legal & General Group (LGEN) 249.40p -1.11%
Tesco (TSCO) 203.25p -1.09%
CRH (CRH) 2,729.00p -0.91%
Babcock International Group (BAB) 943.00p -0.84%
Burberry Group (BRBY) 1,457.00p -0.82%
FTSE 250 - Risers
BTG (BTG) 611.00p 3.82%
Hochschild Mining (HOC) 220.40p 3.67%
G4S (GFS) 240.80p 3.61%
CMC Markets (CMCX) 117.80p 2.79%
Vedanta Resources (VED) 928.50p 2.54%
Euromoney Institutional Investor (ERM) 1,149.00p 2.32%
Acacia Mining (ACA) 382.00p 2.30%
Bellway (BWY) 2,547.00p 2.21%
Millennium & Copthorne Hotels (MLC) 459.80p 2.18%
Redrow (RDW) 443.00p 1.96%
FTSE 250 - Fallers
PayPoint (PAY) 984.50p -4.23%
Cairn Energy (CNE) 233.60p -2.71%
Paragon Group Of Companies (PAG) 410.10p -1.65%
Tullow Oil (TLW) 321.70p -1.47%
Petrofac Ltd. (PFC) 876.00p -1.46%
GVC Holdings (GVC) 650.00p -1.37%
Amec Foster Wheeler (AMFW) 464.10p -1.07%
Dairy Crest Group (DCG) 616.00p -1.04%
Ocado Group (OCDO) 258.10p -0.88% |
| | 2016 market review One City commentator provided what may prove the pithiest and most accurate summary of the last 12 months: “2016 – not for the faint-hearted.” Remarkably, he was speaking not at the end of the year but close to its beginning, when the big story was an apparently endless share price crash on the Shanghai stock market, and associated fears that the emerging market boom had very definitely gone bust. Read More... |
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| | UK Event Calendar | | Thursday 05 January
INTERIM DIVIDEND PAYMENT DATE
Caledonia Investments, Hill & Smith Holdings, Mckay Securities, Yu Group
INTERIM EX-DIVIDEND DATE
Auto Trader Group , Aveva Group, Bisichi Mining, Dairy Crest Group, Dart Group, F&C Global Smaller Companies, Hibernia Reit , Latham (James), Livermore Investments Group Ltd., Northern 2 VCT, Northern 3 VCT, United Carpets Group
QUARTERLY PAYMENT DATE
Blackrock North American Income Trust
QUARTERLY EX-DIVIDEND DATE
BlackRock Income Strategies Trust , British Land Company, Investors Capital Trust 'A' Shares, JP Morgan Chase & Co
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Continuing Claims (US) (13:30)
Crude Oil Inventories (US) (16:00)
Producer Price Index (EU) (10:00)
SPECIAL EX-DIVIDEND DATE
European Investment Trust, GVC Holdings
AGMS
Ironveld, Mercom Capital
FINAL EX-DIVIDEND DATE
BBA Aviation 5% Cum Prf, Cerillion , Character Group, European Investment Trust, Henderson European Focus Trust, International Biotech Trust, Lowland Investment Co, McCarthy & Stone, On The Beach Group , Paragon Group Of Companies, Servoca, Stride Gaming, Topps Tiles
|
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks little changed as investors mull Fed minutes European stocks were little changed in early trade as investors mulled over the latest minutes from the Federal Reserve.
At 0855 GMT, the benchmark Stoxx Europe 600 index was flat, Germany's DAX was off 0.1% and France's CAC 40 was down 0.2%.
Meanwhile, oil prices were just a touch weaker, with West Texas Intermediate down 0.2% to $53.17 a barrel and Brent crude 0.3% lower at $56.31.
Minutes from the meeting released on Wednesday showed that several committee members believed the current policy path of gradual rate increases was not likely to be appropriate due to the possibility that Trump and a Republican-controlled Congress will push through policies to stimulate the economy further, such as tax cuts, infrastructure spending and regulatory loosening.
"Fed officials pointed to a number of risks that, if realized, might call for a different path of policy than the currently expected," the minutes said.
Almost all of the rate setters said the risks of growth overtaking the FOMC's forecasts had grown because of the possibility of the Trump stimulus plans, while the key theme was the even greater-than-usual degree of uncertainty over the outlook for growth, inflation, and interest rates.
Lee Wild, head of equity strategy at Interactive Investor, said: "Minutes from the Federal Reserve's December meeting were certainly on the more hawkish side, policymakers fearing the impact of Donald Trump's massive fiscal stimulus programme on inflation. However, there is evidence the Trump effect will keep buyers interested, at least until the inauguration on 20 January.
"After that, with Trump's policies taking time to implement, there's a risk that traders will take money off the table. Question then is whether, like in 2016, it proves to be one of many buying opportunities in the months ahead."
In corporate news, housebuilder Persimmon rallied as it said its private sales rate tailed off towards the end of the year but the value of its forward sales has jumped as it enters 2017.
The FTSE 100 group said its revenues for calendar 2016 of £3.14bn were 8% ahead of the previous year, with average selling prices climbing 4% though the rate of annual sales growth for the second half slowed to 15% from the 19% announced in early November.
Deutsche Bank ticked higher after agreeing to pay $95m to resolve a US government lawsuit accusing the bank of tax fraud.
Air Liquide edged lower after saying it has agreed to buy Serdex, a unit of Bayer that makes natural ingredients for cosmetics, for an undisclosed sum.
Tullow Oil was in the red after it announced that its chief financial officer Ian Springett was taking an extended leave of absence in order to undergo treatment for a medical condition. The group said Les Wood, vice president finance and commercial, has been appointed interim CFO.
Aerospace and defence group Rolls-Royce was under the cosh after JP Morgan Cazenove cut its price target on the stock, while RSA Insurance and Hannover Rueck were also hit by comments from JPM.
Still to come, the eurozone producer price index is at 1000 GMT. In the US, investors will eye the release of the ADP employment report at 1315 GMT as it's generally considered a precursor to Friday's all-important nonfarm payrolls, while initial jobless claims are at 1330 GMT. |
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| | US Market Report | | US close: Stocks gain as Fed minutes moot faster pace of rate hikes US stocks gained ground on Wednesday as the dollar fell and Wall Street digested minutes from the last Federal Reserve meeting that indicated a potential faster pace of interest rate hikes will be needed to limit inflation if president-elect Donald Trump's stimulus plans are carried out.
The Dow Jones Industrial Average closed 0.3% higher at 19,942.16, the S&P 500 rose 0.57% to 2,270.75 and the Nasdaq increased 0.88% to exactly 5,477.
At the last Fed meeting on 13-14 December, the central bank's Federal Open Markets Committee nudged interest rates up 25 basis points, the second time in a decade, to a target range between 0.5% and 0.75%, and said there would be three further hikes in 2017.
Minutes from the meeting, released at 1900 London time, showed that several committee members believed the current policy path of gradual rate increases was not likely to be appropriate due to the possibility that Trump and a Republican-controlled Congress will push through policies to stimulate the economy further, such as tax cuts, infrastructure spending and regulatory loosening.
"Fed officials pointed to a number of risks that, if realized, might call for a different path of policy than the currently expected," the minutes said.
Almost all of the rate setters said the risks of growth overtaking the FOMC's forecasts had grown because of the possibility of the Trump stimulus plans, while the key theme was the even greater-than-usual degree of uncertainty over the outlook for growth, inflation, and interest rates.
"While the Fed signalled that it would likely respond to expansionary fiscal policies with a faster pace of rate hikes, the Fed believes it is too early to embed this into its baseline," Barclays economists said.
"Any real shift in the stance of monetary policy will require more clarity on the stance of fiscal policy. Altogether, we see the Fed as waiting and reacting to developments in fiscal policy, which is a significant change from the past decade when monetary policy took the lead role in responding to the crisis."
Meanwhile on the markets, oil prices steadied following big swings on Tuesday, as investors were hopeful that OPEC members will stick to their deal to cut output.
West Texas Intermediate gained 1.95% to $53.35 a barrel and Brent crude was 1.77% higher at $56.45.
Gold on Comex was largely flat at $1,164.20 per troy ounce.
The dollar fell against the major currencies, down 0.7% on the euro to 0.9536, 0.67% on the pound to 0.8115, and 0.34% versus the yen to 117.23.
In corporate news, Hilton Worldwide Holdings surged 5.18% after its stock traded for the first time as a separate entity to its time-share business, now named Hilton Grand Vacations.
General Motors went up a gear on news that it sales were up 10% in December to 319,108 automobiles. While Ford Motors Company also gained after it cancelled plans on Tuesday for a $1.6bn plant in Mexico, instead investing $700m to expand its factory in Michigan. Trump had criticised the carmaker's plans to move production to Mexico within three years.
Electric car maker Tesla Motors rose despite saying late on Tuesday it had experienced production challenges in the fourth quarter.
Women's health company Agile Therapeutics tanked after it announced positive results late on Tuesday from a study of its Twirla contraceptive patch, but said 51.4% of participants had to discontinue the study.
Alphabet fell in aftermarket trading as Google was sued by the US Labor Department to provide data on compensation, with a warning that all of its current government contracts could be cancelled if it does not comply.
Dow Jones - Risers
Nike Inc. (NKE) $53.07 2.10%
Walt Disney Co. (DIS) $107.44 1.28%
International Business Machines Corp. (IBM) $169.26 1.24%
American Express Co. (AXP) $76.26 1.21%
Boeing Co. (BA) $158.62 1.05%
Home Depot Inc. (HD) $135.50 0.89%
Pfizer Inc. (PFE) $33.29 0.88%
Visa Inc. (V) $80.15 0.82%
E.I. du Pont de Nemours and Co. (DD) $74.16 0.76%
Goldman Sachs Group Inc. (GS) $243.13 0.65%
Dow Jones - Fallers
Cisco Systems Inc. (CSCO) $30.09 -1.44%
Exxon Mobil Corp. (XOM) $89.88 -1.10%
Travelers Company Inc. (TRV) $120.25 -0.54%
Intel Corp. (INTC) $36.41 -0.52%
Microsoft Corp. (MSFT) $62.30 -0.45%
Caterpillar Inc. (CAT) $93.57 -0.45%
JP Morgan Chase & Co. (JPM) $86.90 -0.37%
Coca-Cola Co. (KO) $41.65 -0.36%
Johnson & Johnson (JNJ) $115.65 -0.16%
McDonald's Corp. (MCD) $119.48 -0.12%
S&P 500 - Risers
Tenet Healthcare Corp. (THC) $16.75 8.77%
Freeport-McMoRan Inc (FCX) $14.82 7.62%
United States Steel Corp. (X) $37.33 7.55%
NRG Energy Inc. (NRG) $13.03 5.93%
Alcoa Corporation (AA) $30.26 4.96%
Ford Motor Co. (F) $13.17 4.61%
Mosaic Company (MOS) $30.81 4.33%
Red Hat Inc. (RHT) $73.10 4.25%
Kohls Corp. (KSS) $51.88 4.22%
AutoNation Inc. (AN) $51.22 3.94%
S&P 500 - Fallers
Valero Energy Corp. (VLO) $67.91 -3.59%
Tesoro Corp. (TSO) $85.73 -3.44%
Marathon Petroleum Corporation (MPC) $51.24 -3.19%
Cerner Corp. (CERN) $47.93 -2.98%
Intuitive Surgical Inc. (ISRG) $629.49 -1.92%
Varian Medical Systems Inc. (VAR) $89.11 -1.70%
ConAgra Brands Inc (CAG) $39.08 -1.69%
Cisco Systems Inc. (CSCO) $30.09 -1.44%
Kroger Co. (KR) $33.25 -1.42% |
| | Newspaper Round Up | | Thursday newspaper round-up: business confidence, car industry, John Lewis Britain's economy is bouncing back from the slump in business confidence which struck in the wake of the Brexit vote, with services, manufacturing and construction firms all reporting solid growth in the final months of 2016. At the same time the housing market showed signs of recovery, with sales on the up and construction firms receiving more orders as demand for homes rises. Businesses across the economy reported rising confidence in the final quarter of the year, making them more willing to hire and invest, according to a survey from the British Chambers of Commerce. - Telegraph
Bosses at now-collapsed cruise firm All Leisure Group paid themselves almost £1m in 2015, despite the struggling owner of the Swan Hellenic brand posting profits of less than £550,000 in the same period. About 400 holidaymakers have been left in chaos abroad after the troubled business, which counted former P&O chairman Lord Sterling as its second-biggest shareholder, ceased trading on Wednesday. - Telegraph
The government has moved to crack down on unscrupulous employers by appointing a new boss to lead the collection of government bodies tasked with stamping out exploitation in the workplace. Prof Sir David Metcalf, a founding member of the Low Pay Commission and former chairman of the Migration Advisory Committee, was named on Thursday as the first director of Labour Market Enforcement. - Guardian
The British car industry has warned of a sales downturn this year as the economic uncertainty that followed the Brexit vote kicks in. A fifth consecutive year of growth saw nearly 2.7m new car registrations in the UK last year, a rise of 2.2% on 2015. But the Society of Motor Manufacturers and Traders said it expected growth to reverse, with a sales decline of 5-6%, as the cost of new cars rises due to sterling's fall. An end to cheap financing deals would also hit sales, it said. - Guardian
Three top investment bankers at a boutique St James's firm have shared almost £37 million after advising on a string of the biggest takeover deals of recent years. Robey Warshaw, founded only three years ago, has increased its operating profit by 89 per cent in the year to the end of March, accounts filed at Companies House show. - The Times | | |
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