| | | | | | | 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. |
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| 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)
|
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| | 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] |
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