Evening Euro Markets Bulletin

ADVFN III Evening Euro Markets Bulletin Daily world financial news Friday, 28 April 2017 17:36:57 Monitor Quote Charts News CFD's Compare Brokers Free BB   The Top Ten Stocks for Q2 The plethora of events on the horizon present ample opportunities to profit from this compelling quarter. Our first Quarterly Stock Picks Report of 2017 covers the upcoming European Elections, US Reform, Q1 FTSE 100 Outperformers & Underperformers, and our top ten stock picks for this quarter. Download a copy of The Top Ten Stocks for Q2 here. 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 close: FTSE lower as UK, US growth in Q1 disappoints, sterling up Stocks in London drifted to a lower close on Friday as a rise in sterling weighed on blue chips and both UK and US preliminary economic growth data disappointed investors on both sides of the Atlantic. The FTSE 100 closed down 0.46% to 7,203.94, and the FTSE 250 finished down 0.11% to 19,615.36. April's loss of 1.6% for the top flight index was its biggest since November 2016. In parallel, share indices in Europe and on Wall St were mixed. "Markets were left a little unsure which way to turn after an upturn in corporate profits was met with data showing decelerating economic growth," said London Capital Group's Jasper Lawler. Official figures showed the UK economy slowed significantly in first-quarter 2017. GDP growth was 0.3% in the first three months of the year, missing expectations for 0.4% growth and slower than the 0.7% growth seen in the final quarter of last year. In the US, GDP expanded 0.7% in the first quarter of 2017, preliminary official data showed. That was wide of the 1.2% growth that economists had expected and less than the 2.1% rise seen over the previous quarter. CMC Markets UK's Michael Hewson said stocks were limping into the long weekend as the transatlantic GDP data fell short of expectations. "It's turned out to be a decent month for European markets in the wake of this week's Macron bounce, with strong gains across the board," said chief market analyst Hewson. However, after Monday's surge stocks had really struggled for direction. "The under-performing FTSE 100 has not only had a disappointing week, it's also had a disappointing month, giving up all of its March gains in the process, as a rebound in the pound, weak basic resources, and some weakness in the banks weigh on the index." IG chief market analyst Chris Beauchamp said the week had ended on a cautious note as both the UK and US economic growth figures disappointed. "What started off so well for stock markets has turned into a week of mixed fortunes, despite further evidence from earnings season that US firms are doing well." "It wouldn't be a Friday afternoon without an outlandish rumour, and the 2% bounce in Morrisons provides that in spades. Ostensibly Amazon is going to buy up the northern supermarket," said Beauchamp. "This seems like an unnecessary amount of effort for Amazon, which has crushed far larger US firms and looks set to remake the UK grocery market with Amazon fresh." Looking more closely at the FTSE 100, banks, financials, utilities and property were among the bigger fallers, while miners and oil majors performed comparatively well. In corporate news, Barclays fell heavily despite saying profits more than doubled in the first quarter, the bank also announcing it was booking a one-off £884m charge on its Africa business. Fellow lender Royal Bank of Scotland gained as it posted its first quarterly profit since 2015, with total income and margins improving. Net profit was £259m, from a £968m loss. Old Mutual nudged higher as it said its wealth management saw 6% growth in first quarter funds under management and it announced the appointment of Tim Tookey as its chief financial officer. 6 Share Tips for your ISA The Share Centre’s Investment Research Analyst, Helal Miah, highlights six companies to consider for your 2017/18 ISA. From the largest listed company in the UK, to a consistent gold miner.  Download your FREE report. Capital at risk. Read More... Capital at Risk Market Movers FTSE 100 (UKX) 7,203.94 -0.46% FTSE 250 (MCX) 19,615.36 -0.11% techMARK (TASX) 3,474.67 -0.18% FTSE 100 - Risers Royal Bank of Scotland Group (RBS) 265.40p 4.74% Antofagasta (ANTO) 838.00p 2.38% Morrison (Wm) Supermarkets (MRW) 239.90p 2.35% International Consolidated Airlines Group SA (CDI) (IAG) 560.00p 2.10% BHP Billiton (BLT) 1,175.00p 1.86% Anglo American (AAL) 1,106.50p 1.70% Carnival (CCL) 4,766.00p 1.66% Kingfisher (KGF) 341.30p 1.64% Randgold Resources Ltd. (RRS) 6,805.00p 1.57% Micro Focus International (MCRO) 2,588.00p 1.45% FTSE 100 - Fallers Barclays (BARC) 212.05p -5.31% Mediclinic International (MDC) 821.00p -4.42% Royal Mail (RMG) 402.50p -3.92% Standard Chartered (STAN) 723.30p -2.71% Hargreaves Lansdown (HL.) 1,378.00p -1.99% WPP (WPP) 1,653.00p -1.61% DCC (DCC) 7,130.00p -1.59% Vodafone Group (VOD) 199.05p -1.53% Hikma Pharmaceuticals (HIK) 1,937.00p -1.48% Barratt Developments (BDEV) 579.50p -1.45% FTSE 250 - Risers Drax Group (DRX) 323.00p 6.28% Renishaw (RSW) 3,415.00p 5.63% Ferrexpo (FXPO) 158.10p 4.22% Evraz (EVR) 216.60p 4.13% Vedanta Resources (VED) 691.50p 3.83% Aldermore Group (ALD) 258.40p 3.36% Entertainment One Limited (ETO) 246.30p 2.84% Balfour Beatty (BBY) 291.80p 2.71% Weir Group (WEIR) 1,991.00p 2.37% Kaz Minerals (KAZ) 503.50p 2.32% FTSE 250 - Fallers Virgin Money Holdings (UK) (VM.) 317.30p -4.63% Allied Minds (ALM) 157.20p -3.81% McCarthy & Stone (MCS) 184.40p -3.35% Berendsen (BRSN) 839.00p -3.29% Stagecoach Group (SGC) 203.50p -2.72% Kennedy Wilson Europe Real Estate (KWE) 1,039.00p -2.26% Galliford Try (GFRD) 1,434.00p -2.25% Derwent London (DLN) 2,944.00p -2.10% Auto Trader Group (AUTO) 401.10p -2.08% Join City Index for competitive commissions and spreads, including FX from just 0.5 points. We’ve been executing quality trades for over 30 years. Trade shares, indices, commodities and FX across 12,000 markets today from 50p a point with an award-winning Spread Betting service that’s on your side. Losses can exceed deposits. Find out more US Market Report US open: Weak Q1 GDP weighs on stocks, economists sanguine Wall Street was set to limp into the weekend following a weak reading on first quarter economic growth, although the Nasdaq Composite was climbing further into record territory on the back of positive results from the biggest of the so-called FANG stocks. As of 15:59 GMT the Dow Jones Industrials was lower by 0.09% to 20,961.38, as the S&P 500 slipped 0.08% to 2,386.72 and the Nasdaq Composite gained 0.08% to 6,053.35. The American economy expanded at an annualised clip of 0.7% over the first three months of 2017, down from the 2.1% clip seen in the preceding three months and the 1.2% advance economists had been expecting. A slowdown in household spending to just 0.3% was the main driver of the weakness in GDP, even as investment in business structures jumped by 22.1%, their biggest rise since early 2014. "That weakness, in our view, is likely to prove transitory. Warm weather reduced utilities consumption, motor vehicle purchases declined to a more sustainable rate, and early in the quarter, tax refunds were delayed. These factors combined with the timing of the Easter/Passover holiday (in April this year) and a weak March employment report likely weighed on consumption growth," said economists at Barclays Research. Consumer confidence in the world's largest economy slipped in April to a reading of 97.0 from 98.0 in the month before (consensus: 98.5), although a subindex tracking their expectations nudged higher. In corporate news, shares in Google parent Alphabet jumped as its first-quarter results after the close on Thursday beat analysts' expectations, while Amazon was also in the back as it said profit rose more than 40% in the first quarter to $724m. Amazon.com and Facebook also pleased investors with their latest figures. On the downside, however, Microsoft and Intel fell as their quarterly revenues missed expectations. Starbucks was also under the cosh after its quarterly revenues fell short of analysts' forecasts. Shares in oil major Exxon Mobil were on the up despite a mixed set of first quarter numbers, with EPS for the latest three-month stretch printing at 95 cents (consensus: 84 cents) even as top line growth fell short of analysts' forecasts. Aside from corporate news, geopolitical tensions were on investors' minds after President Donald Trump told Reuters that a "major, major conflict" could be on the cards with North Korea. Market participants were also faced with a potential government shutdown this weekend. Government funding expires on Saturday, but Congress is widely expected to pass a one-week spending bill to keep the government going for now. Dow Jones - Risers Chevron Corp. (CVX) $106.51 0.98% Exxon Mobil Corp. (XOM) $81.98 0.88% United Technologies Corp. (UTX) $119.28 0.42% Microsoft Corp. (MSFT) $68.47 0.30% 3M Co. (MMM) $196.39 0.14% Caterpillar Inc. (CAT) $102.76 0.08% Boeing Co. (BA) $183.36 0.08% JP Morgan Chase & Co. (JPM) $87.57 -0.05% Coca-Cola Co. (KO) $42.97 -0.09% Cisco Systems Inc. (CSCO) $33.72 -0.10% Dow Jones - Fallers Intel Corp. (INTC) $36.06 -3.66% Verizon Communications Inc. (VZ) $46.20 -1.01% E.I. du Pont de Nemours and Co. (DD) $79.42 -0.89% Home Depot Inc. (HD) $154.89 -0.79% American Express Co. (AXP) $79.71 -0.77% Travelers Company Inc. (TRV) $121.56 -0.49% Nike Inc. (NKE) $55.21 -0.48% Walt Disney Co. (DIS) $115.36 -0.41% Procter & Gamble Co. (PG) $87.33 -0.41% McDonald's Corp. (MCD) $140.34 -0.38% S&P 500 - Risers Royal Caribbean Cr (RCL) $108.23 7.69% Cerner Corp. (CERN) $64.48 7.36% Southwestern Energy Co. (SWN) $8.13 5.93% Alphabet Inc. Class A (GOOGL) $930.90 4.43% Alphabet Inc. Class C (GOOG) $912.53 4.38% Regeneron Pharmaceuticals Inc. (REGN) $379.61 3.54% Phillips 66 Common Stock (PSX) $80.36 2.96% Goodyear Tire & Rubber Co. (GT) $36.45 2.82% Newmont Mining Corp. (NEM) $33.79 2.67% Honeywell International Inc. (HON) $133.08 2.46% S&P 500 - Fallers Synchrony Financial (SYF) $28.50 -13.77% Host Hotels & Resorts Inc. (HST) $18.34 -4.68% KLA-Tencor Corp. (KLAC) $99.14 -4.30% VF Corp. (VFC) $55.37 -4.29% Frontier Communications Co. (FTR) $1.84 -3.66% Intel Corp. (INTC) $36.06 -3.66% Mohawk Inds Inc. (MHK) $230.26 -3.61% Starbucks Corp. (SBUX) $59.16 -3.49% Skyworks Solutions Inc. (SWKS) $100.63 -3.43% Qorvo, Inc. (QRVO) $68.71 -3.39% Nasdaq 100 - Risers Cerner Corp. (CERN) $64.48 7.36% Idexx Laboratories Inc. (IDXX) $170.79 4.93% Alphabet Inc. Class A (GOOGL) $930.90 4.43% Alphabet Inc. Class C (GOOG) $912.53 4.38% Regeneron Pharmaceuticals Inc. (REGN) $379.61 3.54% Amazon.Com Inc. (AMZN) $939.71 2.32% Western Digital Corp. (WDC) $87.31 1.86% Facebook Inc. (FB) $150.05 1.59% Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $53.49 1.54% Priceline Group Inc (PCLN) $1,849.86 0.76% Nasdaq 100 - Fallers KLA-Tencor Corp. (KLAC) $99.14 -4.30% Baidu Inc. (BIDU) $180.46 -3.94% Intel Corp. (INTC) $36.06 -3.66% Starbucks Corp. (SBUX) $59.16 -3.49% Skyworks Solutions Inc. (SWKS) $100.63 -3.43% QUALCOMM Inc. (QCOM) $51.60 -3.04% Expedia Inc. (EXPE) $133.19 -2.21% O'Reilly Automotive Inc. (ORLY) $251.51 -2.21% Seagate Technology Plc (STX) $41.37 -2.20% TripAdvisor Inc. (TRIP) $44.16 -2.08% Broker Tips Broker tips: Drax, Stagecoach, Micro Focus Drax surged on Friday as Barclays upgraded the stock to 'overweight' from 'equalweight' and lifted the price target to 410p from 400p saying post-results weakness was unjustified. It noted the shares have dropped 20% since the mid-February results, underperforming the Stoxx Europe 600 utilities index by 24%, seemingly "on little more than disappointment that Drax didn't immediately announce a new higher dividend policy", but instead said it would consult with shareholders over 1H17. "We understand Drax's consultation is a genuine attempt to balance priorities of growth capex and increased returns to shareholders. We thus see no justification for the scale of Drax's recent share price reversion, and upgrade," the bank said. In addition, Barclays argued that post-results regulatory changes and acquisitions are positives. Analysts at HSBC downgraded their recommendation and lowered their target on shares of Stagecoach, in light of the company's "high levels" of off-balance sheet debt together with continued concerns around its rail franchise and UK bus operations. The recommendation was taken down a notch from 'Hold' to 'Reduce' and the target was cut from 205.0p to 200.0p. HSBC's specific concerns around Stagecoach are on top of the sector's shared woes of high variability in companies' earnings streams and continued "difficult" trading conditions, with the best opportunities probably to be had overseas. "In summary, it's simple: The UK is a difficult market and the best opportunities for operators appear to be abroad. New rail franchises may offer opportunities, but existing ones are a risk," the analysts said. Deutsche Bank initiated coverage of Micro Focus International at 'buy' with a 2,900p price target. DB noted the company's strategy is to acquire mature software assets at attractive valuations with significant scope for operational and cost improvement. It said Micro Focus has refined its approach over the past 10 years and intends to maintain its focus on leveraged inorganic growth for the foreseeable future.   To advertise in the Euro Markets Bulletin please contact [email protected]     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

Evening Euro Markets Bulletin

ADVFN III Evening Euro Markets Bulletin Daily world financial news Thursday, 27 April 2017 17:49:25 Monitor Quote Charts News CFD's Compare Brokers Free BB   The Top Ten Stocks for Q2 The plethora of events on the horizon present ample opportunities to profit from this compelling quarter. Our first Quarterly Stock Picks Report of 2017 covers the upcoming European Elections, US Reform, Q1 FTSE 100 Outperformers & Underperformers, and our top ten stock picks for this quarter. Download a copy of The Top Ten Stocks for Q2 here. 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 close: Resources weakness, US tax-reform hangover and ex-divs punish FTSE Equities in London were punished lower on Thursday as pronounced weakness among mining and oil majors, a US tax-reform hangover, and a bundle of ex-dividend shares all told against the FTSE. The FTSE 100 closed the second to last session of the week down 0.71% to 7,237.17, and the FTSE 250 ended down 0.21% to 19,636.64. Indices in Europe and the US were mostly down as well. "European markets are experiencing what can only be described as a post-tax reform hangover today, and as with all hangovers investors should really have seen this one coming," said Michael Hewson, chief market analyst at CMC Markets UK. "It was never particularly likely that the (Donald) Trump administration was going to be able to deliver on the expectations of the market and so it has been proved, though the effect on the US dollar hasn't been particularly marked," said Hewson. Chris Beauchamp, chief market analyst at IG, opined that as the session wound down it was getting quite messy. "The FTSE 100 is at the lows of the day, while European markets have given up their limited gains and the US (aside from the Nasdaq) has turned southwards as well," he said. "The latest attempt to get the Trump bounce moving again has barely got off the ground; disappointment with the tax plan is palpable, and if it weren't for the looming end of the month, markets would probably be a quite a bit lower." Overall, weakness in metals and particularly oil prices weighed on the FTSE 100. European markets shrugged off a European Central Bank that was less than effusive about the recovery in the euro zone. ECB kept its policy interest rates unchanged, as expected. It restated these might yet be cut and that QE could be extended beyond their end-December 2017 expiry, if needed. Connor Campbell, financial analyst at Spreadex, said the ECB had provided a minor distraction from the Trump fallout this afternoon. "The main (ECB) takeaway was that the central bank believes the region needs a 'substantial degree of monetary accommodation' to reach its inflation targets," he said. Blue-chip news and ex-dividends ITV, Rolls-Royce, Legal & General, Antofagasta, Relx, Fresnillo, Informa, Elementis, William Hill, National Express, Senior and UBM all retreated as their stock went ex-dividend. BP has agreed to sell its 50% stake in the Shanghai SECCO Petrochemical Company Ltd to Gaoqiao Petrochemical Co Ltd, a 100% subsidiary of China Petroleum & Chemical Corporation (Sinopec), BP's joint venture partner, for a total of $1.68bn. Housebuilder Persimmon was in the black after it said current forward sales revenue, including legal completions taken to date, was up 11% to £2. 56 bn, adding that it was confident on future prospects. AstraZeneca was on the back foot after it posted a drop in first-quarter sales, while WPP also declined after it said sales slowed in the first quarter due to major account losses. Lloyds Banking Group bucked the trend, rallying after it reported that profits doubled in the first three months of the year. Taylor Wimpey nudged a touch higher as it set aside £130m for a leasehold scandal. Healthcare provider Mediclinic International rocketed on news that Adu Dhabi has waived 20% of the co-payment for Thiqa health insurance card holders. Schroders lost ground even as the fund manager reported a 5% jump in assets under management and administration for the first quarter. Prudential, St James's Place and Aviva were initiated at 'outperform' at Credit Suisse, while Legal & General was rated a new 'underperform'. 6 Share Tips for your ISA The Share Centre’s Investment Research Analyst, Helal Miah, highlights six companies to consider for your 2017/18 ISA. From the largest listed company in the UK, to a consistent gold miner.  Download your FREE report. Capital at risk. Read More... Capital at Risk Market Movers FTSE 100 (UKX) 7,237.17 -0.71% FTSE 250 (MCX) 19,636.64 -0.21% techMARK (TASX) 3,480.84 -0.25% FTSE 100 - Risers Mediclinic International (MDC) 859.00p 17.51% Kingfisher (KGF) 335.80p 2.75% Persimmon (PSN) 2,340.00p 2.36% Lloyds Banking Group (LLOY) 68.97p 2.31% Johnson Matthey (JMAT) 3,000.00p 1.69% Taylor Wimpey (TW.) 201.60p 1.56% Hargreaves Lansdown (HL.) 1,406.00p 1.52% Whitbread (WTB) 4,050.00p 1.43% Next (NXT) 4,303.00p 1.41% London Stock Exchange Group (LSE) 3,391.00p 1.28% FTSE 100 - Fallers Legal & General Group (LGEN) 246.90p -5.44% BHP Billiton (BLT) 1,153.50p -4.75% ITV (ITV) 210.50p -4.06% Fresnillo (FRES) 1,436.00p -3.82% Glencore (GLEN) 299.65p -3.15% Antofagasta (ANTO) 818.50p -2.79% Rio Tinto (RIO) 3,030.00p -2.63% International Consolidated Airlines Group SA (CDI) (IAG) 548.50p -2.58% WPP (WPP) 1,680.00p -2.44% BP (BP.) 442.65p -2.42% FTSE 250 - Risers Berendsen (BRSN) 867.50p 5.54% Spire Healthcare Group (SPI) 337.10p 4.82% Allied Minds (ALM) 162.90p 3.49% St. Modwen Properties (SMP) 365.00p 2.99% Ibstock (IBST) 226.90p 2.90% Kaz Minerals (KAZ) 492.10p 2.71% Nex Group (NXG) 617.50p 2.40% NMC Health (NMC) 1,955.00p 2.20% Essentra (ESNT) 536.00p 2.10% Dixons Carphone (DC.) 333.30p 1.99% FTSE 250 - Fallers Fidessa Group (FDSA) 2,400.00p -8.08% Vedanta Resources (VED) 666.00p -7.37% Weir Group (WEIR) 1,945.00p -6.63% Amec Foster Wheeler (AMFW) 548.50p -4.77% Wood Group (John) (WG.) 770.50p -4.11% Ferrexpo (FXPO) 151.70p -3.80% Petrofac Ltd. (PFC) 823.50p -3.74% Entertainment One Limited (ETO) 239.50p -3.62% Hochschild Mining (HOC) 250.50p -3.58% Join City Index for competitive commissions and spreads, including FX from just 0.5 points. We’ve been executing quality trades for over 30 years. Trade shares, indices, commodities and FX across 12,000 markets today from 50p a point with an award-winning Spread Betting service that’s on your side. Losses can exceed deposits. Find out more Europe Market Report FTSE 100 Euronext Dax perf CAC 40 Europe close: ECB pours cold water on expectations of policy shift European stocks declined for the first time in seven days despite the European Central Bank sounding a more confident note on the single currency bloc's economy. The Stoxx Europe 600 index drifted 0.24% lower to 387.80 with miners leading the losses as metal prices fell. Germany's DAX lost 0.23% to 12,443.79 and France's CAC was 0.31% weaker at 5,271.70. A gauge of Basic Resource companies' shares within the Stoxx 600 lost 2.75%, while another linked to lenders' shares dropped 0.88%. Meanwhile, Brent crude was down 2.31% to $50.65 per barrel and West Texas Intermediate fell 2.5% to $48.42, following news that two Libyan oilfields with a combined putput of 390,000 barrels a day had restarted production. Traders at Sucden Financial cited the drop in oil prices which triggered sell-stops on crude and gains for the US dollar as drivers of the weakness in Basic Resources, with losses for banks attributable to fading prospects of a hike in the ECB's deposit rate. ECB chief Mario Draghi sounded a more confident note on the euro area economy, but cautioned that risks from overseas had increased even as underlying inflation was only seen rising gradually over the medium-term. "The risks surrounding the euro area growth outlook, while moving towards a more balanced configuration, are still tilted to the downside and relate predominantly to global factors," said Draghi. One source-based report prior to Thursday's meeting had indicated that many within the ECB Governing Council were mulling dropping a small hint in June of an upcoming shift in the policy stance. Yet according to Draghi no such discussions took place today, sending the single currency lower by 0.30% to 1.0871. Unpeturbed, Philippe Gudin and Antonio Garcia Pascual at Barclays Research told clients: "In June we expect a change to a less dovish and more symmetric forward guidance that would open the door for depo rate hikes in 2018. In particular, we would expect modifications possibly to both the forward guidance on rates and on QE by removing the explicit reference in the statement to a scenario with lower rates and/or higher QE." Dr. Howard Archer, chief European + UK economist at IHS Markit believed any change would have to wait until after the next German elections. Earlier in the day, data revealed that consumer optimism in Europe's largest economy was on the rise. GfK's consumer confidence index rose to 10.2 in May from 9.8 the month earlier and was ahead of the 9.9 reading expected. Meanwhile, a lack of detail meant the Trump administration's US tax announcement on Wednesday failed to get investors excited. Corporation tax is to be slashed to 15% from 35%, the seven tax brackets will be reduced to three and the alternative minimum tax would be cut, with nearly all of the current tax deductions eliminated. In corporate news, Deutsche Bank fell 3.28% after the lender missed revenue expectations but posted a rise in profit. Deutsche Lufthansa dropped 5.21% despite the German airline swinging to a €25m first-quarter profit. Bayer AG gained 4.12% after the German pharmaceutical posted 38% rise in first quarter profit and raised its outlook for the year. US Market Report US open: Stocks edge higher despite doubts over Trump tax plans Stocks managed to hold onto slight gains at the open as investors continued to mull over the White House's tax cut plans announced the night before amid a barrage of largely as expected economic data. As of 1434 GMT the Dow Jones Industrials was higher by 0.05% to 20,985.87, alongside gains of 0.27% in the Nasdaq Composite to 6,041.22 and a rise of 0.07% for the S&P 500 to 2,389.24. However, news that the White House was not going to pursue an exit from NAFTA, opting instead for a renegotiation, was likely a relief for many operators. On Wednesday, US stocks ended slightly lower as investors were left disappointed by the lack of specifics in Trump's tax reform announcement. As widely expected, the announcement included plans to cut corporate tax to 15% from 35% and reduce the top individual tax rate to 35% from 39.6%. Yet the US administration's proposals did not include specifics on the costing of the cuts. Among other things, that led some to speculate that they might not be 'deficit neutral' and therefore not permanent, expiring in 10 years' time instead. Also worth noting, the proposals in effect ditched plans for a Border Adjustment Tax as a means of financing the fiscal expansion, contrary to the wishes of many Republicans. Acting as a backdrop, durable goods orders undershot market forecasts, rising by 0.7% month-on-month in March (consensus: 1.2%), although the 'miss' was offset by upwards revisions to figures for the prior month. The headline read prompted Ian Shepherdson, chief economist at Pantheon Macroeconomics to say: "Doubtless this report will spark another round of hand-wringing over the gap between the soft and hard data, but the weather might well have materially depressed these numbers and we want to see what happens in the next couple of months before reaching any firm conclusions." Initial weekly jobless claims increased by 14,000 during the week ending on 22 April to hit 257,000, coming in above the 245,000 expected by analysts. In corporate news, shares in PayPal Holdings jumped 8.06% after its earnings late on Wednesday beat expectations and the company announced a $5bn stock-repurchase plan. Stock in Ford Motor dropped after posting a 35% fall in first quarter net income in comparison to the year ago level as the carmaker's bottom line was hit by safety recall expenses. Dow Chemical on the other hand slipped despite reporting both and top line figures which exceeded analysts' forecasts. American Airlines fell like a stone with its retreating nearly 7% despite an in-line set of revenue figures for the first three months of the year, as the carrier announced a pay rise for its crew members. Broker Tips Europe close: ECB pours cold water on expectations of policy shift European stocks declined for the first time in seven days despite the European Central Bank sounding a more confident note on the single currency bloc's economy. The Stoxx Europe 600 index drifted 0.24% lower to 387.80 with miners leading the losses as metal prices fell. Germany's DAX lost 0.23% to 12,443.79 and France's CAC was 0.31% weaker at 5,271.70. A gauge of Basic Resource companies' shares within the Stoxx 600 lost 2.75%, while another linked to lenders' shares dropped 0.88%. Meanwhile, Brent crude was down 2.31% to $50.65 per barrel and West Texas Intermediate fell 2.5% to $48.42, following news that two Libyan oilfields with a combined putput of 390,000 barrels a day had restarted production. Traders at Sucden Financial cited the drop in oil prices which triggered sell-stops on crude and gains for the US dollar as drivers of the weakness in Basic Resources, with losses for banks attributable to fading prospects of a hike in the ECB's deposit rate. ECB chief Mario Draghi sounded a more confident note on the euro area economy, but cautioned that risks from overseas had increased even as underlying inflation was only seen rising gradually over the medium-term. "The risks surrounding the euro area growth outlook, while moving towards a more balanced configuration, are still tilted to the downside and relate predominantly to global factors," said Draghi. One source-based report prior to Thursday's meeting had indicated that many within the ECB Governing Council were mulling dropping a small hint in June of an upcoming shift in the policy stance. Yet according to Draghi no such discussions took place today, sending the single currency lower by 0.30% to 1.0871. Unpeturbed, Philippe Gudin and Antonio Garcia Pascual at Barclays Research told clients: "In June we expect a change to a less dovish and more symmetric forward guidance that would open the door for depo rate hikes in 2018. In particular, we would expect modifications possibly to both the forward guidance on rates and on QE by removing the explicit reference in the statement to a scenario with lower rates and/or higher QE." Dr. Howard Archer, chief European + UK economist at IHS Markit believed any change would have to wait until after the next German elections. Earlier in the day, data revealed that consumer optimism in Europe's largest economy was on the rise. GfK's consumer confidence index rose to 10.2 in May from 9.8 the month earlier and was ahead of the 9.9 reading expected. Meanwhile, a lack of detail meant the Trump administration's US tax announcement on Wednesday failed to get investors excited. Corporation tax is to be slashed to 15% from 35%, the seven tax brackets will be reduced to three and the alternative minimum tax would be cut, with nearly all of the current tax deductions eliminated. In corporate news, Deutsche Bank fell 3.28% after the lender missed revenue expectations but posted a rise in profit. Deutsche Lufthansa dropped 5.21% despite the German airline swinging to a €25m first-quarter profit. Bayer AG gained 4.12% after the German pharmaceutical posted 38% rise in first quarter profit and raised its outlook for the year.   To advertise in the Euro Markets Bulletin please contact [email protected]     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

Morning Euro Markets Bulletin

ADVFN  Morning Euro Markets Bulletin Daily world financial news Thursday, 27 April 2017 09:39:00 Monitor Quote Charts News CFD's Compare Brokers Free BB   The Top Ten Stocks for Q2 The plethora of events on the horizon present ample opportunities to profit from this compelling quarter. Our first Quarterly Stock Picks Report of 2017 covers the upcoming European Elections, US Reform, Q1 FTSE 100 Outperformers & Underperformers, and our top ten stock picks for this quarter. Download a copy of The Top Ten Stocks for Q2 here. 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 in the red as Trump tax plan disappoints London stocks edged lower in early trade on Thursday as US President Donald Trump's tax announcement failed to get investors' pulses racing. At 0840 BST, the FTSE 100 was down 0.6% to 7,247.11. As widely expected, the announcement included plans to cut corporate tax to 15% from 35% and reduce the top individual tax rate to 35% from 39.6%. Spreadex analyst Connor Campbell said: "Somewhat inevitably Donald Trump's tax plan didn't contain all that investors were looking for last night, leading the markets to pull back from their recent highs after the bell. "Alongside cutting corporate tax rates to 15%, Treasury Secretary Steven Mnuchin and National Economic Council director Gary Cohn revealed that the USA's 7 tax brackets would be reduced to 3, while the alternative minimum tax would be slashed and nearly all of the current tax deductions eliminated. "Yet when pressed for more information, specifically if these reforms would be revenue neutral, the pair came up short, producing some Trumped up rhetoric about how it would pay for itself through 'growth, reduction of deductions and closing loopholes' and that the administration had a 'once in-a-generation opportunity to do something really big'." In corporate news, AstraZeneca was on the back foot after it posted a drop in first-quarter sales, while WPP also declined after it said sales slowed in the first quarter due to major account losses. Weir Group fell despite saying full-year profits are likely to be in line with current market expectations, as its stock went ex-dividend. Engineer Meggitt was weaker as it said lower US demand for defence products had contributed to a small drop in first-quarter organic revenue growth. Aerospace and defence group Cobham slipped despite saying that first-quarter trading was in line with the board's expectations, following a string of profit warnings. Schroders lost ground even as the fund manager reported a 5% jump in assets under management and administration for the first quarter. Howden Joinery was in the red after the company said first half profits would be hit by currency movements and extra operating costs as it reported a 3.9% rise in UK revenues for the 16 weeks to April 15. Lloyds Banking Group bucked the trend, rallying after it reported that profits doubled in the first three months of the year. Healthcare provider Mediclinic International was a high riser on news that Adu Dhabi has waived 20% of the co-payment for health insurance card holders. Housebuilder Persimmon was in the black after it said current forward sales revenue, including legal completions taken to date, was up 11% to £2. 56 bn, adding that it was confident on future prospects. Meanwhile, Taylor Wimpey nudged a touch higher as it set aside £130m for a leasehold scandal. FTSE 250 commercial laundry group Berendsen rose as it said first-quarter trading was in line with management expectations, and announced the retirement of its chief financial officer. Prudential, St James's Place and Aviva were initiated at 'outperform' at Credit Suisse, while Legal & General was rated a new 'underperform'. ITV, Rolls-Royce, Antofagasta, Relx, Fresnillo, Informa, Elementis, William Hill, National Express, Senior and UBM all retreated as their stock went ex-dividend. 6 Share Tips for your ISA The Share Centre’s Investment Research Analyst, Helal Miah, highlights six companies to consider for your 2017/18 ISA. From the largest listed company in the UK, to a consistent gold miner.  Download your FREE report. Capital at risk. Read More... Capital at Risk Market Movers FTSE 100 (UKX) 7,247.11 -0.57% FTSE 250 (MCX) 19,597.57 -0.41% techMARK (TASX) 3,470.71 -0.54% FTSE 100 - Risers Mediclinic International (MDC) 813.50p 11.29% Lloyds Banking Group (LLOY) 69.55p 3.17% Taylor Wimpey (TW.) 200.90p 1.21% Persimmon (PSN) 2,311.00p 1.09% Royal Bank of Scotland Group (RBS) 255.30p 1.03% Kingfisher (KGF) 328.50p 0.52% Croda International (CRDA) 3,815.00p 0.47% Randgold Resources Ltd. (RRS) 6,780.00p 0.44% St James's Place (STJ) 1,133.00p 0.18% Barratt Developments (BDEV) 582.50p 0.17% FTSE 100 - Fallers Legal & General Group (LGEN) 247.60p -5.17% ITV (ITV) 211.30p -3.69% Informa (INF) 639.50p -2.22% Rolls-Royce Holdings (RR.) 810.50p -1.88% Glencore (GLEN) 303.65p -1.86% WPP (WPP) 1,697.00p -1.45% Ashtead Group (AHT) 1,643.00p -1.38% AstraZeneca (AZN) 4,625.00p -1.31% BHP Billiton (BLT) 1,195.50p -1.28% Relx plc (REL) 1,576.00p -1.25% FTSE 250 - Risers Kaz Minerals (KAZ) 495.60p 3.44% Berendsen (BRSN) 846.50p 2.98% AO World (AO.) 139.30p 2.43% Ibstock (IBST) 224.00p 1.59% Acacia Mining (ACA) 396.10p 1.30% Jupiter Fund Management (JUP) 476.60p 1.19% Countryside Properties (CSP) 272.90p 0.96% Smith (DS) (SMDS) 439.20p 0.80% NMC Health (NMC) 1,928.00p 0.78% Polymetal International (POLY) 1,037.00p 0.78% FTSE 250 - Fallers JRP Group (JRP) 0.00p -100.00% William Hill (WMH) 291.40p -3.19% Elementis (ELM) 307.00p -3.19% Fidessa Group (FDSA) 2,538.00p -2.80% UBM (UBM) 715.50p -2.65% National Express Group (NEX) 352.10p -2.63% Weir Group (WEIR) 2,031.00p -2.50% Greggs (GRG) 1,067.00p -2.11% Savills (SVS) 911.50p -1.94% UK Event Calendar Thursday 27 April INTERIMS C4X Discovery Holdings INTERIM EX-DIVIDEND DATE EJF Investments Ltd NPV, McCarthy & Stone, Wetherspoon (J.D.) QUARTERLY EX-DIVIDEND DATE APQ Global Limited, City of London Inv Trust, Custodian Reit INTERNATIONAL ECONOMIC ANNOUNCEMENTS Continuing Claims (US) (13:30) Durable Goods Orders (US) (13:30) ECB Interest Rate (EU) (12:45) Economic Sentiment Indicator (EU) (11:00) GFK Consumer Confidence (GER) (07:00) Industrial Confidence (EU) (11:00) Initial Jobless Claims (US) (13:30) Pending Homes Sales (US) (15:00) FINALS Air Partner, Allied Minds , Aseana Properties Ltd., Avocet Mining, Brown (N.) Group, Deltex Medical Group, Gaming Realms, Harvey Nash Group, Morses Club , Styles & Wood Group IMSS Atlas Mara Limited (DI), Jardine Lloyd Thompson Group, Lloyds Banking Group, Schroders SPECIAL EX-DIVIDEND DATE Elementis, ITV EGMS Societatea Energetica Electrica SA GDR (Reg S) AGMS Aggreko, Alliance Trust, AstraZeneca, Berendsen, Cobham, Countrywide, CRH, EFG-Hermes Holding SAE GDR (Reg S), EP Global Opportunities Trust, FDM Group (Holdings), Franchise Brands, Green & Smart Holdings, Jardine Lloyd Thompson Group, Just Eat , LSL Property Services, Meggitt, Minoan Group, Patagonia Gold, Persimmon, Sampo OYJ, Satellite Solutions Worldwide Group, Satellite Solutions Worldwide Group, Schroders, Synectics, Synectics, Synthomer, Taylor Wimpey, Unilever, Weir Group, Witan Inv Trust TRADING ANNOUNCEMENTS Aggreko, Berendsen, Persimmon, Taylor Wimpey, WPP UK ECONOMIC ANNOUNCEMENTS Nationwide House Price Index (07:00) FINAL DIVIDEND PAYMENT DATE Hammerson FINAL EX-DIVIDEND DATE Antofagasta, Capital Drilling Ltd. (DI), Cenkos Securities, Chemring Group, Churchill China, Dunedin Enterprise Investment Trust, Elementis, Eurocell , Foxtons Group , Fresnillo, G4S, Greggs, Harwood Wealth Management Group, Henry Boot, Hostelworld Group , Hunters Property , Impax Environmental Markets, Informa, ITV, IWG , Kerry Group 'A' Shares, Legal & General Group, Maven Income & Growth 4 VCT, Morgan Sindall Group, NAHL Group, National Express Group, Polypipe Group , Porvair, Relx plc, Rolls-Royce Holdings, Senior, Smart Metering Systems, Spirax-Sarco Engineering, StatPro Group, UBM, Weir Group, William Hill Q1 AstraZeneca, Lloyds Banking Group, Novolipetsk Steel GDS (Reg S) Join City Index for competitive commissions and spreads, including FX from just 0.5 points. We’ve been executing quality trades for over 30 years. Trade shares, indices, commodities and FX across 12,000 markets today from 50p a point with an award-winning Spread Betting service that’s on your side. Losses can exceed deposits. Find out more US Market Report US close: Markets fall as investors react to Trump tax plan US stocks were down on Wednesday as investors digested the details of President Donald Trump's tax reform. The Dow Jones Industrial Average lost 0.1% to 20,975.09, while the S&P 500 fell 0.05% to 2,387.45 and the Nasdaq 100 softened 0.13% to 5,541.09. Trump's chief economic adviser Gary Cohn and treasury secretary Steven Mnuchin confirmed on Wednesday afternoon that the President's plan would cut the number of federal individual income tax brackets to three from seven, and slash corporate tax rates to 15% from 35%. Trump tweeted on Saturday that his administration was set to make a big announcement on tax mid-week, after telling the Associated Press a day earlier that his proposal would contain a "massive tax cut" for businesses and individuals. During the campaign when Trump floated the tax cut analysts said that it would enlarge the country's deficit. Russ Mould, investment director at AJ Bell, said that it is unclear whether any of Trump's proposals will pass through Congress unmolested, especially as the November 2015 Bipartisan Budget Act, which suspended America's debt ceiling, lapsed on 15 March. Mould said Trump has a lot less room for manoeuvre than Ronald Reagan, to whom he is regularly compared for his tax-cutting and deregulating zeal, as Trump has taken control at a time when interest rates and inflation are rising, federal debt stands at nearly $20trn, a record high, or 105% of GDP, US stocks look expensive after an eight-year bull run, and US corporations are already paying historically low tax. US companies' tax bills represented just 7.5% of pre-tax profit and 3.4% of sales in 2016, according to Federal Reserve data. Mould said that a tax cut to 15% would likely add 1.5 percentage points to corporate profit margins, using that 3.4% tax paid-to-sales ratio as the starting point and on a total company sales base of $15.6trn, the equivalent to around $225bn, or 13% of the aggregate post-tax profits made by corporate America in 2016. "This is the profit uplift that the Wall Street lemmings are clearly seeking, but the S&P 500 is already up 11% since Trump's election, while it remains to be seen whether such a windfall is landed, given likely opposition in Washington and how American corporations' tax affairs already seem to be run very efficiently," he said. In corporate news, Twitter surged 7.91% after it posted better-than-expected earnings and revenues with user growth exceeding forecasts. Health insurer Anthem rose 3.81% after it said first-quarter profit rose 44%, while PepsiCo fell 0.73% after it reported a 42% increase in first-quarter profit. Procter and Gamble was down 2.51% after posting disappointing sales due to slow consumer spending, while Hershey fell 0.89% after the chocolate and sweets maker topped profit forecasts, but revenue fell short. Boeing dipped 1.66% after better-than-expected earnings but weaker-than-forecast revenue and United Technologies was up 1.14% after posting a 17.8% rise in quarterly profit. Dow Jones - Risers Verizon Communications Inc. (VZ) $47.36 1.41% United Technologies Corp. (UTX) $118.20 1.14% Home Depot Inc. (HD) $154.22 0.78% Merck & Co. Inc. (MRK) $62.70 0.64% Travelers Company Inc. (TRV) $122.02 0.57% Wal-Mart Stores Inc. (WMT) $75.43 0.51% Walt Disney Co. (DIS) $115.58 0.35% Coca-Cola Co. (KO) $43.24 0.30% Pfizer Inc. (PFE) $33.85 0.27% Caterpillar Inc. (CAT) $104.66 0.23% Dow Jones - Fallers Procter & Gamble Co. (PG) $87.74 -2.51% Boeing Co. (BA) $181.71 -0.98% E.I. du Pont de Nemours and Co. (DD) $81.62 -0.73% General Electric Co. (GE) $29.26 -0.65% Chevron Corp. (CVX) $106.11 -0.61% McDonald's Corp. (MCD) $140.84 -0.61% Apple Inc. (AAPL) $143.68 -0.59% Nike Inc. (NKE) $55.16 -0.52% Exxon Mobil Corp. (XOM) $81.40 -0.40% Visa Inc. (V) $91.82 -0.31% S&P 500 - Risers Edwards Lifesciences Corp. (EW) $109.30 10.49% Wyndham Worldwide Corp. (WYN) $100.54 9.02% Perrigo Company plc (PRGO) $73.03 7.68% Total System Services Inc. (TSS) $58.19 7.14% Juniper Networks Inc. (JNPR) $29.46 6.05% Wynn Resorts Ltd. (WYNN) $125.19 5.90% Thermo Fisher Scientific Inc. (TMO) $168.01 5.79% First Solar Inc. (FSLR) $28.99 5.27% Baxter International Inc. (BAX) $55.59 4.47% Anthem Inc (ANTM) $179.03 3.81% S&P 500 - Fallers United States Steel Corp. (X) $22.78 -26.78% Seagate Technology Plc (STX) $42.01 -16.83% CH Robinson Worldwide Inc (CHRW) $72.81 -6.29% Dr Pepper Snapple Group Inc. (DPS) $92.92 -5.52% Boston Properties Inc. (BXP) $127.35 -4.94% Kansas City Southern (KSU) $86.78 -3.96% Discover Financial Services (DFS) $65.26 -3.05% Vornado Realty Trust (VNO) $97.59 -2.95% Capital One Financial Corp. (COF) $83.07 -2.94% GGP Inc (GGP) $21.97 -2.83% Nasdaq 100 - Risers Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $52.76 3.29% Costco Wholesale Corp. (COST) $176.80 2.39% Express Scripts Holding Co (ESRX) $61.28 2.12% Biomarin Pharmaceutical Inc. (BMRN) $96.07 2.00% TripAdvisor Inc. (TRIP) $44.50 1.95% Marriott International - Class A (MAR) $96.31 1.83% Henry Schein Inc. (HSIC) $173.18 1.74% Illumina Inc. (ILMN) $184.58 1.70% Gilead Sciences Inc. (GILD) $68.22 1.64% Mylan Inc. (MYL) $37.44 1.60% Nasdaq 100 - Fallers Seagate Technology Plc (STX) $42.01 -16.83% NetEase Inc. Ads (NTES) $265.40 -4.52% Intuit Inc. (INTU) $115.81 -2.75% Western Digital Corp. (WDC) $84.61 -2.61% Biogen Inc (BIIB) $280.03 -2.41% Sirius XM Holdings Inc (SIRI) $5.11 -1.83% Analog Devices Inc. (ADI) $77.98 -1.73% Texas Instruments Inc (TXN) $81.11 -1.52% J.B. Hunt Transport Services Inc. (JBHT) $90.76 -1.49% Newspaper Round Up Thursday newspaper round-up: Brexit deal, Trump, bank exits, pharma warning European leaders must "get on" with securing an ambitious trade deal between the UK and EU that will secure jobs and boost living standards after Brexit, the head of Britain's biggest business group says today. Carolyn Fairbairn, director general of the Confederation of British Industry (CBI), will call on policymakers to focus on the "real prize" of a trade deal worth hundreds of billions of pounds every year that will "dwarf" any potential divorce settlement. - Telegraph The Trump administration unveiled what it called the biggest tax cuts "in history" on Wednesday, in a move that will simplify the US tax system, slash taxes for businesses large and small - including his own - eliminate inheritance taxes and set the president on a collision course with Congress over the likely $2tn-plus cost of the proposal. Critics immediately called it "basically a huge tax cut for the rich". - Guardian The Trump administration has given its strongest indication yet that Britain is sliding back in the queue to strike a free-trade agreement with America, with the US commerce secretary suggesting that a deal is a low priority. The upcoming general election and the UK's need to negotiate a post-Brexit trade agreement with the EU were among several complications that made a deal with the US a low priority, Wilbur Ross said. - The Times The White House has announced that the United States will not unilaterally withdraw from Nafta, the landmark free trade agreement with Canada and Mexico, after multiple reports that Donald Trump was planning to pull out of the deal. In a readout of calls between Trump, Canadian prime minister Justin Trudeau and Mexican president Enrique Pena Nieto on Wednesday, the White House said: "President Trump agreed not to terminate Nafta at this time." - Guardian Britain's shops are slashing workers as they try to cut costs in the face of rising prices and falling sales. The number of jobs in the industry fell by 2.2pc in the first quarter of the year compared with the same period of 2016. - Telegraph Deutsche Bank has warned that up to 4,000 UK jobs could be moved to Frankfurt and other locations in the European Union as a result of Brexit. Germany's biggest bank employs 9,000 staff across the UK, including 7,000 in the City, and has called for clarity about how transactions worth billions of euros will be dealt with after the UK leaves the EU. - Guardian At least seven international banks based in London have taken the decision to open offices in Frankfurt to beat trading restrictions in the wake of Brexit, the German city said yesterday. A further 20 banks were in advanced talks on relocating some staff, Frankfurt officials said, while reports cited US giants Goldman Sachs and Citigroup and Swiss banks Credit Suisse and UBS as all being understood to be considering a relocation of London staff. - The Times The pharmaceutical industry has issued an unprecedented warning that the world's biggest drug companies will abandon Britain unless the NHS receives an extra £20 billion a year. The Association of the British Pharmaceutical Industry (ABPI) says that increased rationing of treatments is a sign that the NHS is falling out of the top tier of world health systems, and that patients and companies will suffer as a result. - The Times Plain cigarette cartons featuring large, graphic health warnings could persuade 300,000 people in the UK to quit smoking if the measure has the effect it had in Australia, scientists say. Standardised cigarette packaging will be compulsory in the UK from 20 May. A new review from the independent health research organisation Cochrane on the impact of plain packaging around the world has found that it does affect the behaviour of smokers. - Guardian   To advertise in the Euro Markets Bulletin please contact [email protected]     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