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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 amid deluge of earnings; Trump eyed Stocks in London were little changed in early trade on Tuesday as investors sifted through a deluge of corporate news and looked ahead to US President Donald Trump's address to Congress later in the day.
At 0830 GMT, the FTSE 100 was flat at 7,255.72.
On Monday, US stocks shook off early losses to end higher after Trump said he would make a "big" infrastructure announcement the next day, so market participants will be keeping a close eye on what he has to say to Congress for any further clues about his plans.
Spreadex's Connor Campbell said: "Already investors have been given a sense of what the Orange One is going to announce, with the President confirming a huge boost to defence spending as promised during his campaign. This has green-lit some decent gains from the relevant companies, with the likes of BAE Systems climbing 2.5% on the news. Now Trump has to deliver on slightly more complicated matters, namely healthcare and tax reforms - failure to do so could plant some further seeds of doubt in those indices sent to highs on the back of his bombastic claims.
"Of course, that's not until much, much later. For now the FTSE has to deal with a far duller economic agenda, barely managing to move after the bell."
The pound, meanwhile, showed little signs of clawing back the previous day's losses, falling 0.2% against both the dollar and the euro.
In corporate news, engineering services company Babcock said it had traded in line with expectations for the quarter to the end of February and the outlook for the full year remained unchanged.
Engineer GKN made gains as it posted a 12% jump in full-year pre-tax profit as sales rose and the company expressed confidence over its prospects for 2017.
Croda International was a high riser after the specialty chemicals group said full-year pre-tax profit was boosted by the weak pound, rising to £288m from £275m the year before.
Virgin Money was also on the front foot after posting a 33% rose in full-year underlying pre-tax profit.
Gold and silver miner Fresnillo shone after saying it more than doubled its profits on a surge in revenue due to higher meal prices in 2016.
FTSE 250 engineer Meggitt gained ground after it reported a drop in full-year pre-tax profit on Tuesday as it highlighted a difficult oil and gas market, but lifted its dividend.
Housebuilder Taylor Wimpey nudged higher as it said it had made a "very good" start to 2017 and suggested the UK housing market will remain supportive for its bump dividend programme for some time.
On the downside, Go-Ahead Group tumbled after lowering its full-year expectations for the bus and rail divisions and reporting a drop in first-half pre-tax profit as operating profit from the rail division slumped due to Southern Rail strikes.
Moneysupermarket was also in the red. Although the price comparison website said profit for the year to the end of December grew and announced a £40m share buyback, it was hit by a downgrade from Credit Suisse. In addition, traders noted the fact that group revenues are currently behind last year and said the stock had had a good run into the results.
Investors were also digesting the latest survey from GfK, which showed UK consumer confidence dropped in February.
GfK's monthly consumer sentiment index nudged down to -6 from -5 in January, in line with expectations.
"Any momentum behind the post-Brexit, debt-fuelled, consumer spending boom now appears to be softening," said Joe Staton, head of market dynamics at GfK. |
| | Banking Sector Outlook for 2017 | | In the first of a two-part series, this report covers the sector and its main players ahead of a barrage of full year results releases. We take an in-depth look at how US & UK Banks fared during 2016, reporting dates and forecasts for 2017, and what early US results have shown us. Get your copy of the Banking Sector Outlook for 2017 today! Losses can exceed deposits |
| Market Movers
FTSE 100 (UKX) 7,255.72 0.04%
FTSE 250 (MCX) 18,670.52 -0.00%
techMARK (TASX) 3,392.07 0.65%
FTSE 100 - Risers
Pearson (PSON) 679.00p 2.96%
GKN (GKN) 352.60p 2.80%
Babcock International Group (BAB) 909.00p 2.71%
Bunzl (BNZL) 2,299.00p 2.41%
Marks & Spencer Group (MKS) 335.60p 2.01%
BAE Systems (BA.) 630.00p 1.94%
Standard Life (SL.) 370.30p 1.59%
Hikma Pharmaceuticals (HIK) 2,139.00p 1.37%
International Consolidated Airlines Group SA (CDI) (IAG) 530.00p 1.15%
British Land Company (BLND) 616.50p 1.07%
FTSE 100 - Fallers
St James's Place (STJ) 1,024.00p -5.88%
Randgold Resources Ltd. (RRS) 7,400.00p -3.01%
Anglo American (AAL) 1,240.00p -2.25%
BHP Billiton (BLT) 1,302.00p -1.77%
Antofagasta (ANTO) 795.00p -1.43%
Glencore (GLEN) 321.20p -1.38%
Old Mutual (OML) 216.70p -1.37%
Fresnillo (FRES) 1,467.00p -1.28%
Rio Tinto (RIO) 3,298.00p -1.27%
BT Group (BT.A) 327.30p -1.06%
FTSE 250 - Risers
Meggitt (MGGT) 451.20p 8.44%
Derwent London (DLN) 2,803.00p 3.24%
Virgin Money Holdings (UK) (VM.) 342.70p 2.36%
Inmarsat (ISAT) 715.00p 2.29%
Aggreko (AGK) 1,055.00p 2.03%
NMC Health (NMC) 1,775.00p 1.95%
BGEO Group (BGEO) 2,855.00p 1.75%
Ultra Electronics Holdings (ULE) 1,919.00p 1.64%
Cobham (COB) 119.70p 1.44%
BTG (BTG) 577.00p 1.32%
FTSE 250 - Fallers
Go-Ahead Group (GOG) 1,962.00p -14.14%
Moneysupermarket.com Group (MONY) 301.60p -14.07%
Evraz (EVR) 224.30p -4.23%
Polymetal International (POLY) 943.00p -4.12%
ZPG Plc (ZPG) 376.70p -3.80%
Hochschild Mining (HOC) 263.30p -2.84%
Rathbone Brothers (RAT) 2,198.00p -2.83%
Softcat (SCT) 315.30p -2.66%
Ferrexpo (FXPO) 158.20p -2.29% |
| | Tuesday 21 February
INTERIMS
BHP Billiton, Galliford Try, Green Reit, Netcall, Vernalis plc
FINALS
Anglo American, HSBC Holdings, InterContinental Hotels Group, Lighthouse Group, Synectics, Vitec Group
ANNUAL REPORT
HSBC Holdings
AGMS
Blackrock North American Income Trust , Image Scan Holdings
TRADING ANNOUNCEMENTS
Safestore Holdings
UK ECONOMIC ANNOUNCEMENTS
Public Sector Net Borrowing (09:30)
FINAL DIVIDEND PAYMENT DATE
Titon Holdings |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks start slightly higher ahead of key Trump speech European stocks began Tuesday's session with slight gains ahead of a key speech from US president Donald Trump scheduled for late in the evening.
Investors were hoping Trump would use the occasion to provide further details on his tax cut and spending proposals.
As of 0833 GMT the benchmark Stoxx 600 was edging higher by 0.07% to 369.78, as Germany's Dax gained 0.05% to 11,832.85 and the FTSE Mibtel tacked on another 0.13% to 8,939.59.
In parallel, front month West Texas Intermediate crude oil futures were off by 0.11% at $53.99 a barrel on the ICE, while the euro/dollar was edging down by 0.07% to 1.0583.
"Today's highlight is President Trump's speech to Congress with everyone hoping for him to go beyond rhetoric and disclose some details of the new administration's planned tax reform," analysts at UniCredit said.
UniCredit said it was "highly speculative to come up with a clear picture for markets ahead of any detailed announcement and the market response may heavily depend on the question of border-adjustment taxes, which in our view would have negative consequences not just for the main US trading partners but for the US itself. In the end, it would not be surprising to see US yields moving slightly higher across the curve due to a revival of the reflation trade story."
Consumer spending in France grew by 0.6% month-on-month in January, albeit mainly thanks to a large jump in energy consumption, although economists were optimistic that consumption would bounce back over coming months.
Also in France, the cost of living dipped from a 1.3% year-on-year pace in January to a 1.2% clip for February, missing forecasts for an advance of 1.5% by a wide margin.
Also on the economic calendar for Tuesday, US fourth quarter GDP figures were set for release at 1330 GMT, followed by the Chicago purchasing managers' index for February.
In corporate news, Volkswagen's supervisory board decided to cut executives' pensions to just 40.0% of their base salary, down from 50.0%, German daily Bild reported. |
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| | US Market Report | | US close: Dow notches 12th consecutive record close US stocks shook off early losses to end higher, with the Dow notching up a record close for the 12th session in a row as President Trump teased investors with talk of a "big" announcement on infrastructure when he addresses Congress on Tuesday.
The Dow Jones Industrial Average ticked up 0.1% to 20,837.44, the S&P 500 added 0.1% to 2,369.73 and the Nasdaq closed up 0.3% at 5,861.90.
Meanwhile, oil prices settled little changed, with West Texas Intermediate up 0.2% to $54.08 a barrel and Brent crude down 0.1% to $55.96.
"We're going to make it easier for states to address their infrastructure, and I'm going to have a big statement tomorrow night on infrastructure," Trump told governors visiting the White House. "We're going to start spending on infrastructure big."
However, Trump also said that any details on tax reform would not be revealed until after the administration's proposal on healthcare.
ADS Securities researcher Konstantinos Anthis said that Trump's appearance before Congress on Tuesday should shed more light on how bullish he is over his reforms schedule moving forward. He added that Treasury Secretary Mnuchin attempted to manage expectations last week.
This was echoed by Craig Erlam, senior markets analyst at Oanda: "Trump's appearance before Congress will be watched very closely for some real insight into his plans for taxes and possibly fiscal stimulus which would help to sustain the rally for now. Given the lack of details so far though, I'm not getting my hopes up. In the absence of any details, Trump may instead hope to rely on the very tactics that have been so successful so far, vague yet substantial promises that keep people interested while leaving us all none-the-wiser."
On the data front, US durable goods orders rose a little more than expected in January, almost entirely on the back of a surge in commercial aircraft orders.
Durable goods orders were up 1.8% from the previous month, when they dropped 0.8%. Economists had been expecting a 1.7% increase.
The jump was driven by a 70% rise in passenger plane orders and a 60% increase in orders for fighter jets and related military goods. Excluding transport, new orders fell 0.2%, missing expectations for a 0.5% jump.
Demand in a category that tracks business investment plans dropped 0.4%, marking its first fall since September.
Meanwhile, the pending home sales index fell 2.8% in January to 106.4, versus expectations for a 0.6% rise. The December reading was revised up to 109.5.
In corporate news, La Jolla Pharmaceutical rocketed after it announced positive trial results for its hypertension treatment.
Sotheby's surged after the auction house swung to a fourth-quarter profit, beating forecasts.
Warren Buffett's Berkshire Hathaway edged up after it reported a 15% jump in fourth-quarter profit.
On the downside, Tesla retreated after Goldman Sachs downgraded the driverless car maker to 'sell'.
Shutterstock tumbled after it missed profit and revenue expectations and issued a gloomy outlook. |
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| | Newspaper Round Up | | Tuesday newspaper round-up: Budget, post-Brexit rules, PPI complaints Solid economic growth and strong tax receipts since the Brexit vote have put Philip Hammond on course to announce a drop in government borrowing when he presents his spring budget next week, a leading thinktank has predicted. The Resolution Foundation said it would be the first time since March 2014 that a chancellor could stand at the dispatch box and announce borrowing will be lower - not higher - than previously thought. - Guardian
Businesses are calling for European Union regulations to remain in place to minimise the cost and disruption of Brexit, according to a report by the British Chambers of Commerce. It also calls on the government to consider a transitional arrangement with the EU if concluding both the exit negotiations and the future trade relationship with the single market proves impossible within the two years under Article 50 of the Treaty of Lisbon. - The Times
The Bank of England has tweaked an obscure rule which could make it easier for borrowers to get a mortgage of more than four-and-a-half times their annual income. The rule change applies immediately and effectively loosens the cap placed on the amount of high loan-to-income mortgage lending banks and building societies are allowed to do. - Daily Mail
The United States would sidestep World Trade Organisation rules and level sanctions directly against China and other nations under proposals being considered by the White House. Officials at the office of the US Trade Representative, the government agency responsible for policy, are exploring legal mechanisms to circumvent the WTO's disputes process, sources said. - The Times
Complaints to the financial ombudsman about payday loans have risen to almost 200 a week - and not all of those experiencing problems necessarily fit the image of low-income borrowers relying on short-term loans to get by. Payment protection insurance continues to be the most complained-about product, with just over 78,000 complaints - making up more than half of the total. - Guardian
Consumers are increasingly worried about their personal finances as food and fuel prices rise, according to a survey. A bounce in households' optimism about their financial outlook in January evaporated in February, pulling the closely watched GFK consumer confidence barometer down by one point to -6.
A group of former top bank regulators has warned the US and European authorities that rolling back the reforms of the past eight years could sow the seeds for a worse financial crisis than 2008. The warning from the Systemic Risk Council, chaired by Sir Paul Tucker, former deputy governor of the Bank of England, follows President Trump's pledge to repeal parts of Dodd-Frank, the package of legislation the US introduced in 2010 to tighten the rules after the crisis. - The Times
Jones Bootmaker, one of the oldest brands on the British high street, has been put up for sale by its owners in a move that raises questions over the future of its 170 shops and thousands of employees. Retail sources said the company's owners, turnaround firm Alteri Investors, have recently engaged advisers at KPMG to explore all options for the 160-year-old company including a straight sale of the business or a potential administration. - Telegraph
Two private space tourists plan to boldly go where no thrill-seeker has gone before, travelling on the world's most powerful rocket for a 400,000-mile trip around the moon next year. The entrepreneur Elon Musk announced the plans last night, saying that the two customers who have signed up for the week-long ride are "very serious" about going and have put down a significant deposit with SpaceX. The total cost is in excess of $80 million each. - The Times
A supermarket chain is to be the first major UK retailer to sell "free range" milk - from cows that have been kept outside for at least six months of the year - after consumers said they wanted to be able to buy tasty milk that gives a better deal to farmers. Asda will from Wednesday exclusively sell the new milk, which will carry a Pasture Promise logo, indicating that it comes from animals grazed for at least 180 days and nights a year and also offers farmers a fair price. - Guardian
Netflix is in talks to introduce a 'pay as you go' option for smartphones in collaboration with mobile operators, in what would mark a departure from the TV and film streaming service's subscription charges. It is understood from senior sources at the Mobile World Congress trade show in Barcelona that Netflix is in ongoing and detailed discussions about ways to charge mobile customers for streaming or downloading individual episodes, series or films to watch on the move. - Telegraph
British Land and Oxford Properties are close to selling their stakes in one of the City of London's most distinctive modern buildings to a Chinese bidder in what would be one of the UK's largest ever land deals. Leadenhall Building, better known as the Cheesegrater, is expected to be sold by the UK companies for about £1 billion to CC Land, Cheung Chung Kiu's investment vehicle. - The Times
Jeff Immelt, chairman and chief executive of GE, has used his annual letter to shareholders to warn of turbulent times ahead with past business practices turned on their head. "There is deep skepticism toward the ideas that powered economic expansion for a generation, with concepts like innovation, productivity and globalisation being challenged and protectionism on the rise," he said. - Telegraph
More firms are expected to announce bottle deposit return services after Coca-Cola unexpectedly came out in favour of the idea. Pepsi, Nestlé, Unilever and M&S have already committed to producing more eco-friendly bottles by using plant-based materials or less plastic, and an uptick in that trend could now be on the cards. - Guardian | | | | To advertise in the Euro Markets Bulletin please contact [email protected] |
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