| | | | | | | 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 | | |
| | 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 gain after Rio results London stocks were little changed in early trade, but miners put in a solid performance following well-received results from Rio Rinto.
At 0825 GMT, the FTSE 100 was up 0.1% to 7,191.06.
Meanwhile, oil prices were on the back foot after figures late on Tuesday from the American Petroleum Institute showed a 14.2m barrel build in its crude oil inventory last week, compared to a 5.8m barrel rise the week before and expectations for a 2.5m build. West Texas Intermediate was down 0.9% to $51.73 a barrel and Brent crude was off 0.5% to $54.75.
Prices are likely to remain in focus ahead of the US Energy Information Administration's crude oil stocks data at 1530 GMT.
Accendo Markets' Mike van Dulken said: "Another big build would add to last week's disappointment and an uptrend since Christmas, reinforcing concerns about rising US shale production overpowering OPEC cuts."
In corporate news, mining giant Rio Tinto rose after saying it swung to a profit in the year to the end of December thanks to a recovery in commodity prices, as it announced a better dividend than expected and a $500m share buyback. Net earnings came in at $4.6bn compared to a loss of $866m the year before, while underlying earnings rose 12% to $5.1bn.
Peers followed suit, with Anglo American and Antofagasta both on the front foot.
Packaging company Smurfit Kappa advanced after it said earnings grew last year despite headwinds from higher raw material costs and adverse currency effects, while it hiked its dividend by 20%.
RSA rallied as it announced it has signed contracts to dispose of £834m of UK legacy insurance liabilities to Enstar Group.
Sophos Group pushed higher as it agreed to acquire the commercial software arm of Invincea for up to $120m and reported strong trading momentum in the third quarter.
Housebuilder Redrow gained ground as it reported a jump in first-half pre-tax profit and hiked its dividend, while WS Atkins was in the black after reaffirming its outlook for the year to the of September as trading in the year to date was in line with its expectations.
On the downside, Hargreaves Lansdown fell despite posting a strong set of half-year numbers and hiking its dividend 10%, boosted by a much-elevated level of share dealing since the Brexit vote.
Homewares retailer Dunelm slumped after posting a 26% drop in pre-tax profit in the first half amid a weaker market, while Tullow Oil gushed lower as it said it was in the red for the third year running, although its operating loss narrowed.
There are no major UK data releases due. |
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| Market Movers
FTSE 100 (UKX) 7,191.06 0.07%
FTSE 250 (MCX) 18,613.42 0.29%
techMARK (TASX) 3,312.59 -0.03%
FTSE 100 - Risers
Rio Tinto (RIO) 3,530.00p 2.77%
Anglo American (AAL) 1,370.50p 2.62%
Antofagasta (ANTO) 856.50p 2.45%
RSA Insurance Group (RSA) 600.50p 2.39%
Glencore (GLEN) 325.30p 2.34%
Smurfit Kappa Group (SKG) 2,192.00p 2.24%
Royal Bank of Scotland Group (RBS) 229.80p 1.95%
Rolls-Royce Holdings (RR.) 710.00p 1.36%
Persimmon (PSN) 1,981.00p 1.23%
Barratt Developments (BDEV) 501.50p 1.05%
FTSE 100 - Fallers
Hargreaves Lansdown (HL.) 1,364.00p -1.59%
Mediclinic International (MDC) 791.50p -1.25%
Shire Plc (SHP) 4,510.50p -1.11%
Old Mutual (OML) 205.90p -0.96%
Pearson (PSON) 661.00p -0.90%
Fresnillo (FRES) 1,553.00p -0.83%
Randgold Resources Ltd. (RRS) 7,380.00p -0.74%
Imperial Brands (IMB) 3,722.50p -0.57%
Coca-Cola HBC AG (CDI) (CCH) 1,789.00p -0.56%
Royal Dutch Shell 'A' (RDSA) 2,142.50p -0.53%
FTSE 250 - Risers
Sophos Group (SOPH) 283.50p 5.12%
Aberdeen Asset Management (ADN) 262.90p 4.82%
Redrow (RDW) 472.00p 4.31%
OneSavings Bank (OSB) 353.90p 2.40%
CLS Holdings (CLI) 1,614.00p 2.02%
Henderson Group (HGG) 220.00p 1.99%
Ferrexpo (FXPO) 163.60p 1.93%
Aldermore Group (ALD) 221.60p 1.70%
CMC Markets (CMCX) 114.70p 1.68%
St. Modwen Properties (SMP) 332.04p 1.54%
FTSE 250 - Fallers
Dunelm Group (DNLM) 624.50p -8.77%
Safestore Holdings (SAFE) 371.80p -2.62%
Shaftesbury (SHB) 880.00p -2.33%
AO World (AO.) 156.70p -2.06%
Victrex plc (VCT) 1,938.00p -1.77%
Centamin (DI) (CEY) 174.50p -1.47%
Tullow Oil (TLW) 291.00p -1.46%
Ascential (ASCL) 296.50p -1.33%
Allied Minds (ALM) 385.90p -1.23% |
| | UK Event Calendar | | Wednesday 08 February
INTERIMS
Dunelm Group, Hargreaves Lansdown
INTERIM DIVIDEND PAYMENT DATE
Anglo Pacific Group, Ashtead Group, Halma
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
MBA Mortgage Applications (US) (21:30)
Q3
Sophos Group
FINALS
Sampo OYJ, Smurfit Kappa Group
AGMS
Daily Mail and General Trust A (Non.V), Income & Growth VCT , Victrex plc
TRADING ANNOUNCEMENTS
UK Commercial Property Trust
FINAL DIVIDEND PAYMENT DATE
JPMorgan Chinese Inv Trust
|
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks start on mixed note, Greece in focus European stocks were trading on a mixed note at the start of the session on Wednesday amid heightened fears about the outlook for a third Greek bailout.
As of 0816 GMT the benchmark Stoxx 600 was up by 0.38% to 364.23, while the Dax was higher by 0.13% to 11,567.96 and the Cac-40 was gaining 0.45% to 4,775.21.
Milan's FTSE Mibtel on the other hand was slightly lower, retreating 0.32% to 18,620.99.
"Given Brexit and Trump it has been a while since the Eurozone has been given so much attention. Yet with Draghi disappointing the euro on Monday, an anti-EU presidential campaign from Marine Le Pen and, perhaps most pressingly, the re-emergence of the debt crisis in Greece (something that never really went away, but that has only just returned to the forefront of investors' minds) the region is having a largely negative return to the spotlight," said Connor Campbell, financial analyst at Spreadex.
Overnight, two documents from the International Monetary Fund showed doubts about the long-term sustainability of Greece's pile of government debt remained very high.
In its latest annual review of the Mediterranean country's economy, released during the previous session, the Fund said its debt load was "highly unsustainable".
Greece required substantial debt relief, the IMF said, casting doubt on whether it would join a third bailout package for Greece.
Front month Brent crude oil futures were off by 0.6% to $54.73 per barrel on the ICE, while the single currency was down 0.3% versus the US dollar at 1.0656.
In the corporate space, French drug-maker Sanofi was higher after posting a 3.3% topline growth to reach €8.9bn for the fourth quarter, while net income rocketed 136.5% to €790m. For all of 2016 net income was ahead by 9.8% to €4.71bn.
Another French outfit, luxury firm Hermes said revenue for the three months to December was higher by 7.6%. |
| | US Market Report | | US close: Stocks finish higher as traders weigh earnings, trade data US stocks pared earlier gains on Tuesday after the Dow and the Nasdaq reached intraday records as investors weighed a slew of corporate earnings and trade data.
The Dow Jones Industrial Average closed up 0.19% to 20,090.29 points after climbing to an intraday record of 20,155.35 earlier in the session.
The Nasdaq was 0.19% higher to 5,647.22 points at the closing bell after hitting an intraday all-time high of 5,689.60 earlier.
The S&P 500 index finished with a slight increase of 0.02% to 2,293.08 points.
Among corporate earnings, Michael Kors Holdings was on the back foot after luxury fashion label reported third-quarter revenue and fourth-quarter guidance which both missed analysts' expectations.
General Motors edged lower even as it posted fourth quarter earnings and revenue that exceeded forecast.
Walt Disney Co. slumped after reporting fiscal first quarter profit ahead of forecasts but a decline in revenue.
Urban Outfitters shares slid in after-hours trading after the retail company revealed fourth-quarter sales and same-store sales that fell short of estimates.
One the upside, TransDigm Group gained after posting quarterly earnings that beat analysts' projections.
Centene Corp. advanced after revealing its acquisition of Health Net bolstered its quarterly results.
On the economic data front, the US trade deficit reached the highest level in four years in 2016 as exports fell more than imports.
The deficit increased 0.4% to $502.3bn, the Commerce Department revealed.
In December the trade deficit shrank 3.2% to $44.3bn, compared to economists' forecasts of $45bn.
Meanwhile, job openings in December were little changed while hires continued to rise, according to the Labor Department's Job Openings and Labor Turnover Survey report.
There were 5.5 million job openings on the last day of December, broadly unchanged from November. However, there were 5.3 million people hired during the month, compared to 5.2 million the previous month.
Elsewhere, traders continued to digest remarks from Federal Reserve Bank of Philadelphia President Patrick Harker who on Monday suggested an interest rate increase could come sooner than anticipated.
The policymaker said in a speech that March was "on the table" for a possible interest rate hike, depending on the economic data that comes out between now and then.
Harker pointed to last week's strong non-farm payrolls report and continued good news surrounding GDP growth.
His comments sent the dollar higher against many other major currencies, rising 0.56% versus the yen and 0.68% against the euro. The greenback fell 0.31% against the pound, reversing gains from earlier in the session.
Dow Jones - Risers
Boeing Co. (BA) $166.50 1.54%
International Business Machines Corp. (IBM) $178.46 1.48%
Apple Inc. (AAPL) $131.53 0.95%
Coca-Cola Co. (KO) $41.88 0.82%
Wal-Mart Stores Inc. (WMT) $66.89 0.74%
Procter & Gamble Co. (PG) $88.01 0.70%
United Technologies Corp. (UTX) $111.25 0.51%
Cisco Systems Inc. (CSCO) $31.45 0.48%
Caterpillar Inc. (CAT) $93.31 0.47%
3M Co. (MMM) $175.75 0.38%
Dow Jones - Fallers
Chevron Corp. (CVX) $111.38 -1.41%
Merck & Co. Inc. (MRK) $64.20 -1.14%
Exxon Mobil Corp. (XOM) $82.77 -0.65%
Walt Disney Co. (DIS) $109.00 -0.52%
Pfizer Inc. (PFE) $32.08 -0.47%
General Electric Co. (GE) $29.56 -0.34%
Microsoft Corp. (MSFT) $63.43 -0.33%
E.I. du Pont de Nemours and Co. (DD) $76.06 -0.29%
Goldman Sachs Group Inc. (GS) $239.62 -0.15%
American Express Co. (AXP) $77.72 -0.13%
S&P 500 - Risers
Centene Corp. (CNC) $67.00 5.30%
National Oilwell Varco Inc. (NOV) $39.29 4.89%
Emerson Electric Co. (EMR) $62.54 4.48%
Church Dwight Co Inc. (CHD) $47.27 4.00%
Newell Brands Inc (NWL) $45.52 2.92%
Flowserve Corp. (FLS) $49.60 2.54%
Intercontinental Exchange Inc (ICE) $59.94 2.43%
Tyson Foods Inc. (TSN) $64.64 2.41%
Cardinal Health Inc. (CAH) $77.76 2.36%
Tesoro Corp. (TSO) $85.19 2.21%
S&P 500 - Fallers
FMC Corp. (FMC) $57.03 -6.00%
Motorola Solutions Inc (MSI) $77.34 -5.37%
Vulcan Materials Co. (VMC) $121.80 -4.90%
Newfield Exploration Co (NFX) $39.00 -4.15%
Endo International Plc (ENDP) $12.01 -4.15%
Murphy Oil Corp. (MUR) $27.95 -3.92%
Omnicom Group Inc. (OMC) $84.31 -3.58%
Pioneer Natural Resources Co. (PXD) $174.95 -3.39%
PVH Corp. (PVH) $85.43 -3.34%
Chesapeake Energy Corp. (CHK) $6.17 -3.29%
Nasdaq 100 - Risers
Shire Plc Ads (SHPG) $170.41 2.15%
Netflix Inc. (NFLX) $144.00 2.15%
Autodesk Inc. (ADSK) $84.50 2.03%
Akamai Technologies Inc. (AKAM) $71.12 2.02%
Cognizant Technology Solutions Corp. (CTSH) $53.79 1.95%
Citrix Systems Inc. (CTXS) $77.65 1.77%
Nvidia Corp. (NVDA) $119.13 1.55%
T-Mobile Us, Inc. (TMUS) $61.89 1.53%
O'Reilly Automotive Inc. (ORLY) $262.19 1.47%
Seagate Technology Plc (STX) $46.10 1.45%
Nasdaq 100 - Fallers
Twenty-First Century Fox Inc Class A (FOXA) $30.48 -1.87%
Twenty-First Century Fox Inc Class B (FOX) $30.16 -1.82%
Liberty Global plc Series A (LBTYA) $35.54 -1.63%
Mylan Inc. (MYL) $39.39 -1.48%
Liberty Global plc Series C (LBTYK) $34.40 -1.35%
Liberty Global Plc Lilac Class A (LILA) $23.01 -1.33%
Sirius XM Holdings Inc (SIRI) $4.72 -1.26%
Incyte Corp. (INCY) $118.18 -1.25%
Regeneron Pharmaceuticals Inc. (REGN) $357.69 -1.19% |
| | Newspaper Round Up | | Wednesday newspaper round-up: Brexit, Greece, Shell The UK could lose 30,000 finance sector jobs as a result of Brexit, but EU rivals need to act to avoid importing banking risk to the continent, according to an influential thinktank with close ties to the European commission. The City of London stands to lose 10,000 banking jobs and 20,000 roles in accountancy, law and consulting, as EU clients move business worth €1.8tn (£1.6tn) to the continent after Brexit, according to Brussels-based Bruegel. - Guardian
Fresh worries over Greece's debts have pushed the country's borrowing costs sharply higher amid renewed insistence from Athens it will not swallow further austerity demands from international lenders. The yields on two-year government bonds jumped to their highest level since last June and went above 10% to reflect growing anxiety on financial markets over Greece's ability to keep up to date with debt repayments. Yields on 10-year government bonds were also higher at above 7.8%, the highest close since November. - Guardian
Royal Dutch Shell is to call time on four decades of history as it prepares to publish multi-billion pound plans to dismantle the colossal oil rigs in the Brent oilfield in what will be viewed as a major milestone for the industry. The oil giant will today submit its decommissioning plans to the Government, putting an end to the decade it has spent grappling with how to safely retire the aging field. - Telegraph
Britain's construction industry is on course to add 35,000 jobs a year for the next five years - but much of this expansion is dependent on massive troubled infrastructure projects. The Construction Industry Training Board's (CITB) annual forecast on the sector's future is predicting growth of annual growth of 1.7pc over the coming five years with a total of 179,000 jobs created. At the moment there are 2.6m people working in the sector. - Telegraph
Charles Wilson's charm offensive to win support for Booker's proposed £3.7 billion merger with Tesco made a positive start yesterday, with one independent shopkeeper calling him a "goose that lays the golden eggs". The chief executive of Britain's largest wholesaler and Steve Fox, Booker's managing director for retail, were at Hampden Park in Glasgow for the first of a series of meetings with operators of its "symbol group" stores, such as Premier, Budgens, Londis and Family Shopper. - The Times
The government could demand that the Bank of England blocks the London Stock Exchange and Deutsche Börse's merger, under powers granted to the Treasury when the central bank was nationalised 71 years ago. Senior legal sources said that the chancellor retained the right to direct the Bank's decision on whether to wave through the increasingly contentious deal in the light of the Brexit vote. - The Times | | | | To advertise in the Euro Markets Bulletin please contact [email protected] |
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