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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 close: FTSE gains despite sterling's strength on manufacturing data Equities in London held out for a positive close as sterling made mild gains on the dollar and with the market looking ahead to the US Federal Reserve's interest-rate decision tomorrow.
The FTSE 100 was up 0.64% to 7,250.05, and the FTSE 250 was higher by 0.97% to 19,805.29. The Euro Stoxx 50, Dax and Cac 40 all advanced, but in the US gains were mixed on Wall St.
"Markets returned from May Day (Labour Day) holidays in positive spirit," said Jasper Lawler, senior market analyst at London Capital Group.
He said investors were buying up stocks while discarding bonds and havens, including gold. This was despite an embarrassing start to Brexit talks between the EU and UK, which turned out to be a sideshow to more immediate events in the diary.
"Event-risk like Wednesday's US interest rate decision and the final round of French elections at the weekend may just need to pass to make room for the next leg higher," said Lawler.
Earlier in the session, sterling popped up on the greenback after a survey showed UK manufacturing activity was much stronger than expected in April.
UK's April's manufacturing purchasing managers' index from IHS Markit and CIPS unexpectedly hit a three-year high of 57.3, from 54.2 in March and versus views for a modest fall.
"Markets in Europe have got off to a solid start to the month of May," said Michael Hewson, chief market analyst at CMC Markets UK.
They were helped by a series of upbeat manufacturing surveys from Europe and the UK, and some decent Q1 company announcements, as investors push political concerns into the background.
IG analyst Joshua Mahony continued, adding the recent deterioration in UK manufacturing growth appeared to have arrested, with this morning's bumper PMI announcement sending the pound surging in response.
"The jump to a three-year high (in the PMI) has proven that manufacturing is more resilient than many thought, with employment, output and new orders growth all improving markedly."
In corporate news, house builders and commercial property were performing notably well, as were a number of pharmaceutical giants and supermarkets. Both precious metals and general miners were firmly down.
Shire, which completed its $32bn merger with Baxalta last June, reported a 109% surge in revenues for the first quarter as it said it was on course to achieve its full-year guidance. Total revenues rose to $3.6bn, while operating income rose 82% to $1.5bn.
Smiths Group completed the sale of its Interconnect's Microwave Telecoms (SMT) business, to Infinite Electronics for an enterprise value of £85m.
Oil giant BP gushed higher after saying it got off to a strong first quarter, with a £1.45bn profit and expectations of a "material improvement" in cash flow from the second half of the year.
AstraZeneca turned lower after it and and its global biologics research and development arm, MedImmune, said the US Food and Drug Administration (FDA) has granted accelerated approval to the bladder cancer treatment Imfinzi (durvalumab).
Medical technology company ConvaTec rose as it announced the US launch of the Flexi-Seal PROTECT Fecal Management System, following receipt of 510(k) clearance from the US FDA.
Ocado shares surged on reports it is considering a tie-up with Marks & Spencer. |
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| Market Movers
FTSE 100 (UKX) 7,250.05 0.64%
FTSE 250 (MCX) 19,805.29 0.97%
techMARK (TASX) 3,524.30 1.43%
FTSE 100 - Risers
Intertek Group (ITRK) 4,200.00p 3.30%
Standard Life (SL.) 374.00p 2.78%
Barratt Developments (BDEV) 595.00p 2.67%
Worldpay Group (WPG) 308.00p 2.67%
Persimmon (PSN) 2,390.00p 2.58%
Shire Plc (SHP) 4,651.00p 2.51%
CRH (CRH) 2,887.00p 2.41%
Hikma Pharmaceuticals (HIK) 1,983.00p 2.37%
DCC (DCC) 7,280.00p 2.10%
Paddy Power Betfair (PPB) 8,775.00p 2.03%
FTSE 100 - Fallers
Antofagasta (ANTO) 808.50p -3.52%
Fresnillo (FRES) 1,411.00p -2.82%
Anglo American (AAL) 1,079.00p -2.49%
Randgold Resources Ltd. (RRS) 6,660.00p -2.13%
Glencore (GLEN) 297.85p -1.91%
Ashtead Group (AHT) 1,602.00p -1.78%
Standard Chartered (STAN) 709.00p -1.69%
Burberry Group (BRBY) 1,595.00p -1.18%
Barclays (BARC) 209.85p -1.13%
GKN (GKN) 355.50p -0.95%
FTSE 250 - Risers
Ocado Group (OCDO) 265.50p 5.78%
esure Group (ESUR) 258.90p 5.67%
Cobham (COB) 139.60p 5.36%
Aberdeen Asset Management (ADN) 290.50p 4.12%
Euromoney Institutional Investor (ERM) 1,087.00p 3.92%
Bellway (BWY) 2,955.00p 3.83%
NMC Health (NMC) 2,062.00p 3.77%
Nostrum Oil & Gas (NOG) 463.40p 3.35%
BTG (BTG) 701.00p 3.01%
Fidessa Group (FDSA) 2,437.00p 2.96%
FTSE 250 - Fallers
Vedanta Resources (VED) 649.50p -6.07%
Hochschild Mining (HOC) 241.80p -4.88%
Drax Group (DRX) 309.90p -4.06%
Cairn Energy (CNE) 188.30p -3.09%
Virgin Money Holdings (UK) (VM.) 307.80p -2.99%
Tullow Oil (TLW) 204.60p -2.53%
Telecom Plus (TEP) 1,221.00p -2.32%
Evraz (EVR) 212.10p -2.08%
Atkins (WS) (ATK) 2,105.00p -1.96% |
| | US Market Report | | US open: Stock flat ahead of Apple results Investors were still playing it safe ahead of the eagerly awaited quarterly results from technology giant Apple which were due out after the close and key risk events scheduled for later in the week.
At 16:11 BST, the Dow Jones Industrial Average was up by 0.04% at 20,922.77, even as the S&P 500 slipped 0.04% to 2,387.53 and the Nasdaq Composite retreated 0.03% to 6,089.94
LCG analyst Jasper Lawler pointed out: "Stocks in the US opened tentatively higher. First quarter results from Apple could be key for whether the Nasdaq can keep up its run of good form. Optimism for earnings growth from the FANG stocks is leading the market higher, even as the US government teeters on a shutdown.
"Trump said on Tuesday the government maybe needs a 'good shutdown'. 2% of stocks on the Nasdaq exchange hit 52-week lows on Monday when the Nasdaq Composite index closed at a record high. That's a sign the big tech giants are covering up some broader weakness."
At the weekend, US lawmakers reached an agreement on a $1.1trn spending bill to keep the federal government ticking over until September and now investors are looking to tomorrow's Federal Reserve policy decision and the monthly US jobs report on Friday.
Societe Generale said relief that the US economy did not grind to a complete halt last quarter and optimism over faster growth this quarter means there is no compelling reason to expect the Fed to turn more dovish at this week's meeting.
"No change in the fed funds rate is expected tomorrow and the forward guidance should not change much if at all compared to the last meeting in March. Having laboured hard in 1Q to get markets to re-price future rate expectations higher, the Fed will not want to see its hard work undone especially if it emerges that 1Q economic slowdown was transitory.
"Privately, the FOMC must be content that markets are still assigning a 50% probability of a rate increase in June to 1.25%.
Those odds will be subject to change of course depending on Friday's non-farm payrolls report."
In corporate news, shares in chip-maker AMD are plummeting after the chip-maker disappointed investors with its outlook for margins.
Stock in Aetna is 0.71% higher after the health insurer said it swung to a loss in the first quarter of $1.11 per share from a profit of $2.08.
Mastercard was another top riser after the credit crad issuer posted adjusted first quarter earnings per share of $1.01, up from 86 cents in the year ago period (consensus: 95 cents).
Altria Group shares were also on the frontfoot after the cigarette-maker despite missing analysts' forecasts for both its top and bottom line. The mid-point of its full-year EPS guidance also came in a tad short of forecasts.
Over the weekend, reports suggested that Coach could be eyeing a £1bn-plus swoop for UK luxury brand Jimmy Choo.
Dow Jones - Risers
Intel Corp. (INTC) $36.80 1.35%
Visa Inc. (V) $92.12 0.94%
Exxon Mobil Corp. (XOM) $82.57 0.62%
Apple Inc. (AAPL) $147.47 0.61%
Chevron Corp. (CVX) $106.50 0.55%
3M Co. (MMM) $195.80 0.51%
Wal-Mart Stores Inc. (WMT) $75.61 0.51%
Caterpillar Inc. (CAT) $102.47 0.46%
McDonald's Corp. (MCD) $141.69 0.38%
International Business Machines Corp. (IBM) $159.32 0.30%
Dow Jones - Fallers
Pfizer Inc. (PFE) $33.30 -1.42%
JP Morgan Chase & Co. (JPM) $86.07 -1.14%
Procter & Gamble Co. (PG) $86.49 -0.69%
Goldman Sachs Group Inc. (GS) $223.47 -0.61%
Walt Disney Co. (DIS) $114.33 -0.35%
Travelers Company Inc. (TRV) $120.84 -0.28%
Unitedhealth Group Inc. (UNH) $174.37 -0.13%
Johnson & Johnson (JNJ) $123.18 -0.13%
Verizon Communications Inc. (VZ) $45.85 -0.05%
Microsoft Corp. (MSFT) $69.41 0.00%
S&P 500 - Risers
Tenet Healthcare Corp. (THC) $18.64 20.39%
Pitney Bowes Inc. (PBI) $15.47 15.20%
Coach Inc. (COH) $42.79 10.48%
Martin Marietta Mtrl (MLM) $239.94 7.83%
Cummins Inc. (CMI) $161.47 6.84%
Vulcan Materials Co. (VMC) $128.80 4.42%
Flowserve Corp. (FLS) $51.77 4.21%
Delta Airlines Inc. (DAL) $47.03 3.59%
FMC Technologies Inc. (FTI) $31.04 3.36%
EQT Corp. (EQT) $59.85 2.99%
S&P 500 - Fallers
Archer-Daniels-Midland Co. (ADM) $42.40 -6.96%
NRG Energy Inc. (NRG) $15.56 -5.79%
Mosaic Company (MOS) $25.36 -5.32%
Emerson Electric Co. (EMR) $57.38 -5.09%
Borg Warner Inc. (BWA) $40.80 -4.65%
Ford Motor Co. (F) $10.99 -3.72%
AutoNation Inc. (AN) $40.10 -3.71%
TEGNA Inc (TGNA) $25.16 -2.48%
Nvidia Corp. (NVDA) $104.25 -2.24%
Expeditors International Of Washington Inc. (EXPD) $54.78 -2.16%
Nasdaq 100 - Risers
Shire Plc Ads (SHPG) $181.59 2.90%
PACCAR Inc. (PCAR) $67.87 2.55%
O'Reilly Automotive Inc. (ORLY) $246.90 2.15%
American Airlines Group (AAL) $42.87 1.88%
Intel Corp. (INTC) $36.92 1.67%
Paypal Holdings Inc (PYPL) $48.27 1.54%
Vodafone Group Plc ADS (VOD) $26.51 1.16%
Hasbro Inc (HAS) $99.91 1.14%
Fastenal Co. (FAST) $44.99 1.03%
Ctrip.Com International Ltd. Ads (CTRP) $52.60 1.00%
Nasdaq 100 - Fallers
Nvidia Corp. (NVDA) $104.25 -2.24%
Micron Technology Inc. (MU) $27.73 -1.98%
Charter Communications Inc. (CHTR) $337.40 -1.96%
Biomarin Pharmaceutical Inc. (BMRN) $95.92 -1.73%
Incyte Corp. (INCY) $122.02 -1.60%
Vertex Pharmaceuticals Inc. (VRTX) $118.70 -1.59%
Discovery Communications Inc. Class A (DISCA) $27.55 -1.54%
Discovery Communications Inc. Class C (DISCK) $26.80 -1.43%
Sirius XM Holdings Inc (SIRI) $4.89 -1.41% |
| | Broker Tips | | Broker tips: N Brown, Lloyds N Brown's full-year results showed progress with the plan to transform the clothes retailer into an online heavyweight, said HSBC, upgrading the shares to a 'buy' rating.
HSBC, which hefted its target to 280p from 215p, noted that the results demonstrated the improvement in the underlying performance of the 'power brands' - JD Williams, Simply Be and Jacamo - thanks to more flexible sourcing and new product collections, which helped accelerate its online growth.
Enhanced online exposure, with internet sales representing 69% of total sales and 77% of new customer sales, offers access to structurally higher growth markets despite the challenging consumer outlook, the bank said.
"From a transformation plan perspective the 'Fit 4 the Future' IT project is critical to realising group potential," analyst Paul Rossington wrote, noting that progress was in in line with expectations.
Improved net margins and further liability cost reductions at Lloyds will help the lender sustain sufficient capital returns to allow it to return roughly a quarter of its market capitalisation to shareholders, Barclays said.
Analysts at the broker laud the lender's positive surprises on both net interest margins and lower provision charges in its first quarter numbers.
Admittedly, the latter might not be sustained, they say.
However, the stronger NIM looks "stickier" with additional reductions in Lloyds's liability costs expected to largely offset asset pricing pressure, Barclays says.
Hence, the broker believes Lloyds will be able to sustain an underlying return on tangible equity of nearly 15%.
That, the broker explains, is what will allow it to return about 25% of its current market capitalisation to shareholders over the coming three years. | | | | To advertise in the Euro Markets Bulletin please contact [email protected] |
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