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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: Stocks nudge lower ahead of payrolls; Pearson surges London stocks nudged lower in early trade as investors awaited the release of the US non-farm payrolls report, while oil prices continued to retreat.
At 0830 BST, the FTSE 100 was down 0.2% to 7.235.59, while the pound was up 0.1% versus the dollar at 1.2933.
The always closely followed US non-farm payrolls report is expected to come in at 190,000 for April.
CMC Markets analyst Michael Hewson said there will also be particular scrutiny on any revision to the surprisingly low March number of 98k, especially in light of the fact that the equivalent ADP number was so strong at 263,000.
"Weather related arguments don't really stack up when there is that sort of divergence," he said.
"The unemployment rate is expected to tick up slightly to 4.6%, but the more important factor will be what wages do. Yesterday labour costs for Q1 shot up to 3% from 1.3%, so you would expect to see equivalent inflationary pressures in average hourly earnings, however expectations here are for an unchanged number of 2.7%. Ultimately investors will be looking for evidence of a tightening labour market but thus far there has been little evidence of that despite jobless claims being at multi year lows."
The payrolls and unemployment rate are due at 1330 BST. Investors will also turn their attention to speeches from various Fed officials such as Stanley Fischer, John Williams, Charles Evans and Fed chair Janet Yellen.
There are no major UK data releases scheduled.
Crude oil prices extended their losses below $45 for the first time since Opec's output cut in November, with new fears that the output reduction plans will not be enough to reduce the global supply glut.
The sell-off was deepening as Opec keeps schtum, said Ipek Ozkardeskaya at London Capital Group.
"Dip-buyers are expected to intervene into the $40 level for a minor correction, given that the oil market has stepped into the oversold territory. "
She also noted that copper recorded the biggest two-day loss since July 2015, iron ore futures plunged nearly 15% over the last three sessions, with industrial metals indices trading at their lowest level since January.
"The slowdown in Chinese manufacturing activity is one of the major catalysts for the commodity sell-off," Ozkardeskaya said.
In corporate news, Pearson shares surged over 16% after the education publisher posted a 6% increase in first-quarter underlying sales as it reiterated its guidance for the full year and announced further cost-cutting measures and a strategic review of its K12 courseware publishing business.
Marks and Spencer Group rallied after it appointed Archie Norman as chairman to take over from Robert Swannell at the start of September.
British Airways owner International Consolidated Airlines Group racked up healthy gains as it reported first quarter-profits well ahead of expectations as a drop in costs offset lower passenger revenues. Operating profits in the first three months of the year of €170m before exceptional items were up 10% on the same period last year.
Smith & Nephew advanced after saying its full-year outlook for underlying revenue growth remained unchanged and reporting flat revenue for the first quarter.
Millennium & Copthorne Hotels was unchanged as it posted an 18% rise in first-quarter revenue per available room but highlighted difficult trading conditions in Asia.
EasyJet flew higher after reporting a 12% increase in passenger numbers for April and an improvement in the load factor.
Irish packaging group Smurfit Kappa was in the black after saying it was well positioned for the rest of the year and posting a rise in first-quarter revenue.
BBA Aviation nudged up after saying trading in the first four months of the year was in line, with revenue up 19% compared to the same period last year.
On the downside, InterContinental Hotels was on the back foot after it said first-quarter revenue grew but announced that chief executive Richard Solomons was stepping down after six years in the role.
Morgan Advanced Materials retreated as it said trading conditions since the full year were in line with management expectations, while Inmarsat was hit by a downgrade to 'underweight' at Barclays. |
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| Market Movers
FTSE 100 (UKX) 7,235.59 -0.17%
FTSE 250 (MCX) 19,627.31 -0.27%
techMARK (TASX) 3,529.31 -0.00%
FTSE 100 - Risers
Pearson (PSON) 769.00p 16.87%
International Consolidated Airlines Group SA (CDI) (IAG) 596.50p 4.28%
Smith & Nephew (SN.) 1,311.00p 3.23%
Marks & Spencer Group (MKS) 366.70p 2.57%
easyJet (EZJ) 1,237.00p 2.32%
Fresnillo (FRES) 1,392.00p 1.98%
Randgold Resources Ltd. (RRS) 6,670.00p 1.29%
Smurfit Kappa Group (SKG) 2,164.00p 1.17%
Morrison (Wm) Supermarkets (MRW) 236.80p 1.02%
Kingfisher (KGF) 331.60p 0.91%
FTSE 100 - Fallers
Mediclinic International (MDC) 798.00p -1.97%
BP (BP.) 438.80p -1.35%
InterContinental Hotels Group (IHG) 4,129.00p -1.20%
Barclays (BARC) 209.35p -1.18%
Old Mutual (OML) 188.70p -0.89%
National Grid (NG.) 1,005.50p -0.89%
Royal Dutch Shell 'A' (RDSA) 2,007.50p -0.86%
Royal Dutch Shell 'B' (RDSB) 2,045.50p -0.80%
Merlin Entertainments (MERL) 509.00p -0.78%
Glencore (GLEN) 275.05p -0.78%
FTSE 250 - Risers
Acacia Mining (ACA) 389.90p 3.12%
ZPG Plc (ZPG) 375.30p 1.71%
National Express Group (NEX) 362.19p 1.31%
Just Eat (JE.) 584.00p 1.13%
Polymetal International (POLY) 974.00p 1.09%
Greggs (GRG) 1,088.00p 1.02%
Aldermore Group (ALD) 255.40p 0.95%
Ibstock (IBST) 228.20p 0.93%
Shaftesbury (SHB) 933.50p 0.81%
NMC Health (NMC) 2,127.00p 0.81%
FTSE 250 - Fallers
Inmarsat (ISAT) 778.00p -5.64%
Tullow Oil (TLW) 194.00p -2.95%
Lancashire Holdings Limited (LRE) 682.00p -2.43%
Morgan Advanced Materials (MGAM) 320.60p -2.38%
Hunting (HTG) 516.50p -2.27%
Weir Group (WEIR) 1,831.00p -2.14%
Countryside Properties (CSP) 266.40p -2.06%
Redefine International (RDI) 36.50p -1.59%
Kaz Minerals (KAZ) 433.50p -1.59% |
| | Market Analysis 05/05/2017 Today’s highlights: High volatility for USD expected - High volatility for USD expected today: The Non-Farm Employment, Unemployment and Average Hourly Earnings reports will all be released at 12:30 GMT today, and could cause some volatility for the greenback. Later, at 17:30 GMT, Fed Chair Janet Yellen will give a speech at Brown University, which might also affect the American currency.
- CAD could display volatility today: Employment and Unemployment data will be released in Canada at 12:30 GMT, and could influence the Canadian Dollar’s rates.
- Oil crashes below $45: Oil prices have fallen to their lowest levels since the OPEC production cut came into effect in January, fueled by rising US stockpiles. While talks of the production cut being extended further, some analysts believe that the market is too oversupplied and prices could not recover significantly.
- Euro rises towards six-month high: Recent polls in France show that EU-supporter Macron has extended his lead against Eurosceptic candidate Marine Le Pen in the presidential race, causing the Euro to strengthen against the USD.
- Gold recovers, but will still end week at a loss: The precious metal bounced back this morning and was showing gains. However...
Read More... |
| | UK Event Calendar | | Friday 05 May
INTERIM DIVIDEND PAYMENT DATE
Begbies Traynor Group, Redrow, St Ives
QUARTERLY PAYMENT DATE
British Land Company, F & C UK High Income Trust
FINALS
QinetiQ Group
IMSS
InterContinental Hotels Group
SPECIAL DIVIDEND PAYMENT DATE
Electra Private Equity, F & C UK High Income Trust , Quartix Holdings
AGMS
AssetCo, BBA Aviation, Capital & Counties Properties , Clarke (T.), FBD Holdings, Fitbug Holdings, InterContinental Hotels Group, Kingspan Group, Man Group, Millennium & Copthorne Hotels, Morgan Advanced Materials , Pearson, RSA Insurance Group, Smurfit Kappa Group
TRADING ANNOUNCEMENTS
InterContinental Hotels Group, Smith & Nephew
FINAL DIVIDEND PAYMENT DATE
Berendsen, CRH, Kingspan Group, Lighthouse Group, Meggitt, Mithras Inv Trust, Nichols, Quartix Holdings , Spirent Communications, Synectics, Telit Communications
Q1
Smurfit Kappa Group |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks slip on oil price weakness ahead of US jobs data European stocks are tracking the slight losses seen overnight on Wall Street ahead of the release of the all-important US jobs report for April which may well put paid to expectations of a US central bank rate hike in June.
As of 0828 BST the benchmark Stoxx 600 is lower by 0.31% to 390.78, alongside a drop of 0.20% in the German Dax and a 0.09% slip for the FTSE Mibtel to 21,153.12.
Acting as a backdrop, WTI crude oil futures were extending their recent move lower, erasing another 1.29% to trade at $44.94 a barrel on the ICE.
Analysts at VTB Capital attributed the move to remarks from Russian president Vladimir Putin's press secretary Dmitry Peskov that the Kremlin has yet to decide whether to extend the 30 November OPEC pact for a coordinated reduction in output.
"Yet, as is often the case, this seems to be the proverbial last straw. The relentless growth of US crude production, as well as signs that monetary tightening in China is starting to take toll on growth there, means that a simple extension of the 30 November production cuts is unlikely to be sufficient to keep the oil market in balance in 2H17," they said.
All eyes were on the US non-farm jobs report which was set for release at 1330 GMT, with the consensus calling for 175,000 jobs to be added in April following a disappointing 98,000 in March.
In Europe, Spanish industrial production shrank by 0.4% month-on-month in March (consensus: 0.3%), according to INE.
Ratings agency S&P is set to publish the results of its review of Italy's sovereign long-term debt after the close of trading in London.
Meanwhile, on the corporate front, France's Vivendi clinched an extension of the rights to broadcast Formula 1. |
| | US Market Report | | US close: Stocks end little changed as oil prices tank US stocks ended a choppy session little changed on Thursday as energy shares were dragged lower by weaker oil prices, and after the House of Representatives passed a healthcare overhaul.
The Dow Jones Industrial Average closed flat at 20,951.47, while the S&P 500 and the Nasdaq eked out a 0.1% gain to 2,389.52 and 6,075.34, respectively.
Energy shares were under pressure as oil prices tanked amid concerns that OPEC and other producing countries would not take further steps to reduce the glut of crude. West Texas Intermediate was down 5% to $45.54 a barrel and Brent crude was off 4.8% at $48.45.
IG analyst Joshua Mahony said: "Oil prices took yet another turn for the worst today, as Brent hit the lowest level since November 2016. Yesterday's smaller than expected drawdown in US crude stocks adds weight to the notion that despite continued compliance in recent crude cuts, the surplus is here to stay. The question now is whether this will force OPEC's hand to enforce larger and longer lasting production cuts in a bid to raise prices once more."
In corporate news, Facebook shares slipped after the company reported a rise in quarterly profit and sales late on Wednesday but warned that revenue could slow "meaningfully" in 2017.
Electric car maker Tesla Inc was also on the back foot after it reported a widening of its adjusted quarterly loss late on Wednesday, while Avon Products tumbled after it reported a loss for the first quarter.
On the upside, healthcare companies Regeneron and Zoetis rallied after their results, while Dunkin Brands also advanced after it reported a bigger-than-expected jump in quarterly adjusted profit.
Meanwhile, investors were continuing to digest the latest policy announcement and statement from the Federal Reserve.
On Wednesday, the Fed left interest rates on hold as widely expected, although the odds of an interest rate hike at the central bank's June meeting rose to 94% from around 70% following the accompanying policy statement, in which it brushed aside the importance of weaker-than-expected first-quarter GDP figures.
Market participants were also mulling over a narrow vote by the House in favour of repealing major portions of the 2010 Affordable Care Act, also known as Obamacare, and replacing it with a Republican healthcare plan.
On the data front, figures from the Labor Department showed the number of Americans filing for unemployment benefits fell more than expected last week.
US initial jobless claims declined by 19,000 to 238,000, beating expectations for a smaller drop to 247,000. The four-week moving average came in at 243,000, up 750 from the previous week.
On Friday, the highlight will be the release of the latest non-farm payrolls report.
SpreadCo analyst David Morrison said: "The consensus forecast for tomorrow's payrolls is an increase of 194,000. Anything around here up to 210k will probably be fairly market neutral, although it could provide the impetus for the Dow and S&P to make fresh record highs. If we get something nearer the 150,000 mark then expect the yield on the 10-year Treasury to dip back below 2.30%, the dollar to retreat and maybe a relief bounce in precious metals, at least temporarily.
"But we also have speeches from Janet Yellen and Stanley Fischer tomorrow afternoon. These could prove to be more market-moving than the payroll number itself." |
| | Newspaper Round Up | | Friday newspaper round-up: Amazon, Elliott Advisors, Sports Direct Amazon is to more than triple its research and development team in Cambridge working on tech innovations such as its Alexa digital assistant, delivery drones and Echo smart speaker. The US online retailer is opening a new building in the city with room for 400 experts in mathematical modelling, speech science, machine learning and "knowledge engineering". - Guardian
Retail Acquisitions, the former owner of the collapsed BHS, is on the point of liquidation, potentially helping investigations into the demise of the department store chain. The group, which bought BHS for £1 in 2015 and was fronted by former bankrupt Dominic Chappell, has been accused of extracting an estimated £17m from BHS despite owning it for just 13 months before it went into administration in 2016. An estimated £6m was owed by Retail Acquisitions to BHS when it collapsed. - Guardian
Activist investor Elliott Advisors will fire the latest salvo in the tug-of-war over Dulux owner Akzo Nobel by claiming the Dutch company's plan to remain independent could result in four times more job losses than if it was taken over by US rival PPG Industries, The Daily Telegraph understands. Elliott, which owns a stake of more than 3pc in Akzo, has been leading the charge in pushing the company to engage with PPG, which has made three takeover bids for the paints giant. - Telegraph
Activist investor Gatemore has said it now has enough support from other shareholders in logistics company DX Group to block its mooted deal with rival John Menzies. Gatemore holds 11pc of the shares in DX but says it now has the public support of 18pc of the shares, including its stake, opposed to the deal and the private backing of an additional 20pc of stakeholders. - Telegraph
The European Commission has embarked on another attempt to claim the City's vast and lucrative euro clearing market in a move that could jeopardise 80,000 jobs. London's status as a global centre for euro-denominated derivatives has been thrown into fresh doubt by Brexit. - The Times
Claire Jenkins, a non-executive director of Sports Direct, has resigned amid speculation that she was frustrated at being unable to influence the actions of the struggling sportswear retailer. She is leaving after six years at Sports Direct which has been embroiled in a scandal over working practices at its Shirebrook warehouse in Derbyshire. - The Times | | | | To advertise in the Euro Markets Bulletin please contact [email protected] |
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