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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 edge higher as pound hit by May's Brexit comments London stocks were a little higher in early trade, taking their cue from a strong close in the US at the end of last week and getting some support from a weaker pound, amid worries about a 'hard Brexit' following comments from Prime Minister Theresa May.
At 0825 GMT, the FTSE 100 was up 0.3% to 7,232.34. Meanwhile, oil prices retreated, with West Texas Intermediate and Brent crude down 0.7% at $53.61 a barrel and $56.71, respectively.
On Friday, the S&P 500 and the Nasdaq set new record closing highs, while the Dow was just shy of the 20,000 mark.
Spreadex's Connor Campbell said: "A lethally dull economic calendar couldn't prevent the FTSE from finding its way to fresh all-time highs this Monday morning.
"The main driver of the index's growth seemed to be the latest plunge from the pound, which dropped by 0.8% against both the dollar and the euro following Theresa May's Sky News interview at the weekend. The Prime Minister's comments were read as falling decidedly on the 'hard' end of the Brexit spectrum, with 'control of [the UK's] borders' likely to be prioritised over continued access to the single market.
"This left sterling at a rough two-month low against both the dollar and the euro, something that in turn spurred the FTSE on by another 30 points.That means the UK index is hovering around the 7230 mark, around 10 points shy of the intraday peak it struck soon after the bell."
In overnight trading, sterling fell to just below $1.22, which was its lowest level since the end of October, as May told Sky that Britain could not hang on to certain "bits of EU membership".
In corporate news, Lloyds Banking Group nudged higher as the UK government announced that its stake in the bank has fallen below 6% after it sold 700m shares late on Friday. UK Financial Investments Limited, the government vehicle set up to control stakes in the banks bailed out during the credit crunch in 2008, now holds a 5.95% stake in Lloyds, down from 43% at its peak.
William Hill slid after it warned that its a full-year operating profit for 2016 will be at the bottom end of its guided range due to unfavourable football and horseracing results in December. While it was good news for punters, the bookmaker said it meant gross win margins since mid-November were below expectations.
Barclays rallied as Deutsche Bank upped its stance on the stock to 'buy' from 'hold', saying it is well placed for earnings growth this year.
FTSE 250 oil and gas facility builder Petrofac pushed higher after it signed a contract worth about $600m with Salalah LPG SFZCO, a wholly-owned subsidiary of Oman Oil Facilities Development Company, to undertake the engineering, procurement and construction of its Salalah LPG extraction project in the southern part of Oman.
Swiss iron ore miner Ferrexpo gained as it said it achieved record sales volumes in 2016, but produced lower pellets as it focused on reducing its debt.
Housebuilder Bovis Homes rose after the company announced that its chief executive, David Ritchie, will step down with immediate effect but will stay on until February to help with the transition process.
RSA Insurance was weaker after UBS downgraded the stock to 'sell' from 'neutral', Wm Morrison was in the red as Bank of America Merrill Lynch cut it to 'underperform' and Babcock fell after Deutsche Bank downgraded it to 'hold' from 'buy'.
Ashmore tumbled following a downbeat note by Barclays. |
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| Market Movers
FTSE 100 (UKX) 7,232.34 0.31%
FTSE 250 (MCX) 18,404.88 0.35%
techMARK (TASX) 3,433.88 0.27%
FTSE 100 - Risers
Glencore (GLEN) 295.80p 2.55%
Anglo American (AAL) 1,157.50p 1.98%
BHP Billiton (BLT) 1,337.50p 1.56%
Antofagasta (ANTO) 703.50p 1.37%
Rio Tinto (RIO) 3,128.50p 1.08%
ITV (ITV) 207.60p 1.02%
Barclays (BARC) 237.60p 1.00%
Persimmon (PSN) 1,952.00p 0.93%
Smith & Nephew (SN.) 1,223.00p 0.91%
Taylor Wimpey (TW.) 170.00p 0.89%
FTSE 100 - Fallers
Babcock International Group (BAB) 909.00p -3.25%
Capita (CPI) 509.50p -1.16%
RSA Insurance Group (RSA) 570.50p -1.04%
Vodafone Group (VOD) 209.30p -0.97%
Fresnillo (FRES) 1,337.00p -0.89%
Royal Bank of Scotland Group (RBS) 230.50p -0.82%
Paddy Power Betfair (PPB) 8,755.00p -0.68%
easyJet (EZJ) 1,052.00p -0.66%
Marks & Spencer Group (MKS) 331.70p -0.60%
BT Group (BT.A) 382.45p -0.55%
FTSE 250 - Risers
CMC Markets (CMCX) 126.30p 4.55%
Ferrexpo (FXPO) 133.20p 2.86%
Safestore Holdings (SAFE) 373.30p 2.84%
Tullow Oil (TLW) 333.40p 2.68%
Petrofac Ltd. (PFC) 923.00p 2.67%
Cairn Energy (CNE) 244.10p 2.56%
Bovis Homes Group (BVS) 831.00p 2.47%
Aveva Group (AVV) 1,967.00p 2.23%
QinetiQ Group (QQ.) 266.50p 2.11%
Vedanta Resources (VED) 937.00p 2.01%
FTSE 250 - Fallers
Ashmore Group (ASHM) 288.20p -3.71%
William Hill (WMH) 288.20p -3.19%
Fidessa Group (FDSA) 2,141.00p -2.73%
IP Group (IPO) 178.50p -2.57%
Homeserve (HSV) 601.00p -2.28%
Softcat (SCT) 289.00p -1.93%
Cranswick (CWK) 2,326.00p -1.77%
PayPoint (PAY) 953.50p -1.60%
National Express Group (NEX) 344.40p -1.46% |
| | Share tips 2017 Prudential low risk International insurance and investment product supplier Prudential has had a successful 2016 with the company raising its dividend, reporting an increase in profits whilst all the time continuing to benefit from favourable structural opportunities in its key markets, particularly in Asia. Investors should appreciate that although the group’s Asian exposure is a risk due to the volatility of Asian markets, the demographics of many Asian regions, and the rise of the middle class, should provide a good growth story for Prudential for some time to come. Prudential believes it has adequate capital surplus to withstand further significant deterioration in the European market, which should provide some reassurance to investors. Furthermore, the group’s asset management business M&G continues its expansion into Europe and its retail funds are registered for sale in 20 regions. Ultimately, this is a company which has a good mix of business across a number of regions, with a long-term Asia growth story underpinning the investment case. Read More... Capital at Risk |
| | UK Event Calendar | | Monday 09 January
INTERIMS
Ilika
INTERIM DIVIDEND PAYMENT DATE
3i Infrastructure, Hogg Robinson Group, Intermediate Capital Group, Telford Homes
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (GER) (07:00)
Current Account (GER) (07:00)
Industrial Production (GER) (07:00)
Unemployment Rate (EU) (10:00)
AGMS
Craven House Capital
UK ECONOMIC ANNOUNCEMENTS
Halifax House Price Index (08:30)
|
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks slip despite positive US cues European stocks dipped in early trade despite positive cues from the US.
At 0840 GMT, the benchmark Stoxx Europe 600 index and France's CAC 40 were down 0.3%, while Germany's DAX was 0.2% lower. The UK's FTSE 100 outperformed its European peers, buoyed by a weaker pound, which fell on the back of Prime Minister Theresa May's latest Brexit comments.
On Friday the S&P 500 and the Nasdaq set new record closing highs, while the Dow was just shy of the 20,000 mark.
Meanwhile, oil prices retreated, with West Texas Intermediate and Brent crude down 0.7% at $53.61 a barrel and $56.71, respectively.
Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor, said: "Most European markets are range-bound and struggling to follow Asian markets higher after the S&P reached a record high on Friday.
"The global rally, which has been fuelled by the prospect of a pro-growth Trump administration, was given further energy on Friday when US jobs data suggested that the American economy has reached full employment. Although this may precipitate faster rate hikes, the US market appears to be back to anticipating a very positive outlook, although the outlook for emerging markets is far less certain."
In corporate news, Continental AG was a little weaker after the German automotive supplier said it was targeting higher sales growth but a narrower profit margin in 2017 following as growth in sales and the profit margin in the final quarter helped the company to exceed previously lowered full-year targets.
Fresenius Medical was also on the back foot after it and US rival DaVita Inc received subpoenas from federal prosecutors investigating their links with a charity that helps patients pay for kidney dialysis.
Lloyds Banking Group nudged higher as the UK government announced that its stake in the bank has fallen below 6% after it sold 700m shares late on Friday.
William Hill slid after it warned that its full-year operating profit for 2016 will be at the bottom end of its guided range due to unfavourable football and horseracing results in December. While it was good news for punters, the bookmaker said it meant gross win margins since mid-November were below expectations.
Barclays rallied as Deutsche Bank upped its stance on the stock to 'buy' from 'hold', saying it is well placed for earnings growth this year.
On the data front, figures out earlier from Destatis showed German industrial production rose a touch less than expected in November, but exports surged.
Industrial production was up 0.4% from the previous month, missing expectations for a 0.7% increase. However, exports grew 3.9% in November from October, with imports up 3.5%. |
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| | US Market Report | | US close: Dow Jones Industrials fails to clear 20,000-point mark Wall Street´s main indices finished the session uniformly higher on Friday despite a slightly weaker than forecast jobs report for the month of December, but the 20,000-point level on the Dow Jones Industrials remained unbreached by the closing bell.
The Dow Jones Industrial Average added 0.32% to 19,963.80, the S&P 500 was up 0.39% or 7.98 points to 2,276.98 and the Nasdaq was 0.60% or 33.12 points higher to 5,521.06.
At one point in the session the Dow Jones Industrials rose as high as 19,999.63, later falling back but even so ending the week up by 1%, while the S&P 500 added 1.7%.
Real estate and healthcare stocks paced the weekly advance, rising by 3% and 2.6%, respectively.
Meanwhile, oil prices edged higher as Saudi Arabia and Abu Dhabi started to cut supplies. West Texas Intermediate moved up by 26 cents to $53.99.
Non-farm payrolls rose 156,000 in December, well below analysts' estimates of 178,000. November was revised up to 204,000 jobs from a previous 178,000.
Last month's figure brings total job growth to 2.2m in 2016, compared to 2.7m in 2015.
The jobless rate edged up to 4.7% in December from 4.6% in November and the number of unemployed persons was little changed at 7.5m. However, November's decline in the unemployment rate to 4.6% from 4.9% the prior month was mainly due to a fall in the labour force.
Average hourly earnings rose an annualised 2.9% in December, ahead of a projected 2.8% increase and following a 2.5% gain a month earlier. On the month, earnings edged up 0.4% compared to forecasts of 0.3% growth and November's 0.1% decline.
The labour force participation rate held at 62.7% and was unchanged over the year.
Neil Wilson, chief market analyst at ETX Capital, said: "Jobs numbers missed their mark but this slight slip up alone is certainly not enough to stop the Fed from raising rates this year. The data is a little positive, a little negative. US bond yields and the dollar index both firmed having slipped a little over the last 24 hours, while stock futures turned higher.
"The numbers - the last for the Obama presidency - probably matter a lot less than what is about to come in the shape of Donald Trump's economic policies and how these play out with the Fed's monetary policy. Today's non-farm payroll numbers won't make a whole lot of difference to that, other than confirm that he is taking over with the employment market in good health."
Yields on the benchmark 10-year US Treasury note rose eight basis points to 2.42% following Friday´s jobs data.
In corporate news, shares in restaurant chain Ruby Tuesday shed nearly a quarter of their value after it said late on Thursday that second-quarter losses widened as revenue declined.
Amgen rose after a US Federal judge ruled that Sanofi and Regeneron Pharmaceuticals had to take their competing cholesterol drug off the market as it infringed the company's patent.
Wal-Mart fell 1.4% after the retail giant said than Sam's Club CEO Rosalind Brewer is to retire from 1 February and will be replaced by John Furner.
Dow Jones - Risers
Nike Inc. (NKE) $53.91 1.60%
Walt Disney Co. (DIS) $108.98 1.49%
Goldman Sachs Group Inc. (GS) $244.90 1.48%
Visa Inc. (V) $82.21 1.38%
Apple Inc. (AAPL) $117.91 1.11%
United Technologies Corp. (UTX) $112.55 1.08%
McDonald's Corp. (MCD) $120.76 0.89%
Microsoft Corp. (MSFT) $62.84 0.87%
International Business Machines Corp. (IBM) $169.53 0.49%
Intel Corp. (INTC) $36.48 0.36%
Dow Jones - Fallers
Verizon Communications Inc. (VZ) $53.26 -2.53%
Wal-Mart Stores Inc. (WMT) $68.26 -1.37%
E.I. du Pont de Nemours and Co. (DD) $73.38 -0.58%
Johnson & Johnson (JNJ) $116.30 -0.48%
Chevron Corp. (CVX) $116.84 -0.40%
Pfizer Inc. (PFE) $33.48 -0.39%
Home Depot Inc. (HD) $133.53 -0.28%
Exxon Mobil Corp. (XOM) $88.50 -0.06%
Travelers Company Inc. (TRV) $118.27 -0.05%
Procter & Gamble Co. (PG) $85.03 -0.04%
S&P 500 - Risers
Illumina Inc. (ILMN) $141.49 5.15%
AES Corp. (AES) $11.82 3.59%
eBay Inc. (EBAY) $31.05 3.47%
TripAdvisor Inc. (TRIP) $50.77 3.19%
Alexion Pharmaceuticals Inc. (ALXN) $143.61 3.18%
Waters Corp. (WAT) $139.98 3.13%
Agilent Technologies Inc. (A) $47.99 3.12%
Autodesk Inc. (ADSK) $79.30 3.08%
Helmerich & Payne Inc. (HP) $81.07 2.88%
Medtronic Plc (MDT) $72.87 2.88%
S&P 500 - Fallers
Regeneron Pharmaceuticals Inc. (REGN) $358.68 -5.84%
Endo International Plc (ENDP) $16.54 -5.70%
Newmont Mining Corp. (NEM) $35.42 -3.14%
AT&T Inc. (T) $41.32 -3.12%
Martin Marietta Mtrl (MLM) $219.84 -2.95%
Vulcan Materials Co. (VMC) $123.80 -2.86%
Verizon Communications Inc. (VZ) $53.26 -2.53%
PulteGroup Inc. (PHM) $18.46 -2.48%
Chesapeake Energy Corp. (CHK) $7.01 -2.37%
Archer-Daniels-Midland Co. (ADM) $44.72 -2.29%
Nasdaq 100 - Risers
Illumina Inc. (ILMN) $141.49 5.15%
eBay Inc. (EBAY) $31.05 3.47%
Maxim Integrated Products Inc. (MXIM) $39.74 3.38%
Incyte Corp. (INCY) $108.31 3.33%
Liberty Global plc Series C (LBTYK) $32.10 3.22%
TripAdvisor Inc. (TRIP) $50.77 3.19%
Alexion Pharmaceuticals Inc. (ALXN) $143.61 3.18%
Liberty Global plc Series A (LBTYA) $33.34 3.16%
Autodesk Inc. (ADSK) $79.30 3.08%
Amgen Inc. (AMGN) $156.78 2.48%
Nasdaq 100 - Fallers
Regeneron Pharmaceuticals Inc. (REGN) $358.68 -5.84%
Sirius XM Holdings Inc (SIRI) $4.56 -1.72%
Mylan Inc. (MYL) $38.50 -1.69%
Mattel Inc. (MAT) $30.47 -1.52%
T-Mobile Us, Inc. (TMUS) $56.77 -1.46%
Seagate Technology Plc (STX) $38.49 -1.43%
Dollar Tree Inc (DLTR) $77.09 -1.24%
Monster Beverage Corp (MNST) $45.62 -1.23%
Liberty Global Plc Lilac Class A (LILA) $23.35 -1.14% |
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| | Newspaper Round Up | | Monday newspaper round-up: Consumer spending, factory outlook, drug deals Shoppers and business owners have signalled confidence in spending more, suggesting the credit-fuelled growth seen in late 2016 is showing few signs of flagging. Consumer spending on credit and debt cards rose 2.6pc during last year, with higher spending both online and in bricks-and-mortar retailers, according to figures from Visa. - Telegraph
The war chest to protect the pound in the face of a sterling crisis has shrunk since June's referendum to leave the European Union. Official figures show that the government's stock of foreign currency reserves has declined by $5 billion in five months, or about 5 per cent, the largest and most sustained fall this decade. - The Times
British factory bosses are downbeat about the outlook for the economy after last year's Brexit vote even though they expect their sales both at home and abroad to improve in 2017, an industry survey showed on Monday. An annual survey by manufacturing association EEF showed 47 percent of executives in the sector predicted a decline in Britain's economic fortunes this year, up from 28 percent in the same survey in 2016. - Daily Mail
British companies are grappling with higher costs and bracing for further pressure in the months ahead as the start of Brexit talks threatens to drag the pound down further and ramp up the price of imports to the UK. Reports from the manufacturing and construction sectors on Monday point to a sharp rise in the prices paid for materials by firms in Britain and worries that their profit margins will be squeezed as they decide how much of those higher costs they can pass on to customers.
The pharmaceuticals industry is set for a surge in deal-making this year, as companies under pressure from weak drugs pricing and higher costs take advantage of low valuations and a tax-friendly political climate in the US to bolster faltering sales growth. Even those with solid growth prospects may pursue M&A, leading to a sharp rise in the value of deals this year, according to a report from EY. - Telegraph
Aviva is in talks with LinkedIn about a partnership that could help millions of savers to locate forgotten pension pots. Chris Wei, global chairman of Aviva UK digital, said that in 2017 "we'd like to partner with LinkedIn to create a scheme which could be called the UK's biggest treasure hunt". - The Times
Under a banner of the 'sharing society', Theresa May is expected to harden the government's shift of philosophy with a new focus on those living just above the benefits level not just the very poorest improving mental health support. Immediate changes will include making improvements to mental health care. - Financial Times
The internet is fast becoming the destination of choice for shoppers, heaping pressure on traditional bricks and mortar retailers who are struggling to keep up with their online-only rivals, analysts have warned ahead of week in which a string of some of the UK's most prominent shops will report crucial Christmas trading figures. Sales growth at online-only fashion seller Boohoo is expected to total nearly 40pc, while City analysts have pencilled in an increase of more than a quarter at Asos, as more consumers turned to the internet, and away from the high street, for their Christmas shopping. - Telegraph
Bankers' bonuses may be cut by 10 per cent in the next few weeks, with employees of some struggling European banks set for no rewards at all in this year's pay round. Many investment banks are expected to clamp down on pay amid anxiety about eurozone economies, Brexit and possible fallout from the trade policies of America's president-elect Donald Trump. - The Times
Britain's biggest carmaker Jaguar Land Rover (JLR) sold a record 583,312 cars last year as the Indian-owned firm continues its rapid expansion with the aim of building 1 million vehicles a year at the turn of the decade. Sales were up 20 percent from the previous year, although sales growth slowed to 12 percent year-on-year in December, the carmaker said. - Daily Mail
Half of today's car owners will not want to own a vehicle and more and more will want self-driving and electric cars in future, a survey of car manufacturing bosses has found. As fewer people see the need to buy a car, a majority of automotive executives believe the industry will increasingly focus on making money from peripheral digital services to be used with their vehicles. - Guardian
Crispin Odey has begun to shed staff after the billionaire hedge fund manager's investments suffered the worst year in his firm's history, losing nearly half their value as bets on a market collapse failed to come good. He said that Odey Asset Management had made redundancies after a torrid 12 months in which its main investment fund fell by 49.5 per cent. - Times | | |
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