| | | | | | | GlaxoSmithKline vs. AstraZeneca This report looks at the two largest UK pharmaceutical companies, both of which are at 2017 lows, and asks which is the better buy, if either has further to fall, which stock is right for you, and what are the city analysts saying? Losses can exceed deposits. Download your report 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: Stocks bounce back amid better-than-expected data London stocks bounced back but were off earlier highs as investors digested the latest figures on consumer credit and mortgage approvals, shrugging off concerns about North Korea.
At the close, the FTSE 100 was up by 0.38% or 27.83 points to 7,365.26, while the pound was up 0.09% against the dollar at 1.2932 and 0.54% firmer versus the euro at 1.0848, recovering after it sank against the single currency on Tuesday - amid frustration over the latest Brexit talks.
Stocks advanced even as US president Donald Trump's asserted that: "The US had been talking to North Korea, and paying them extortion money, for 25 years. Talking is not the answer!"
Yet as Chris Beauchamp, chief market analyst at IG, said: "Widespread relief seems to have spread across financial markets today, with the FTSE gaining ground as fears over North Korea dissipate. Despite today's gains, it is clear that the North Korean problem will not go away anytime soon. While Trump today declared that the time for talking is over, Chinese backing of the Pyongyang regime means conflict remains an unlikely eventuality.
"After recent weeks, traders are cognizant of the fact that any news from North Korea is almost certain to drive a rush to the safety of gold and the yen. With Donald Trump returning to Washington ahead of his latest tax reform speech, FX traders will be hoping that we will see an extension to the greenback rebound seen in the past 24-hours."
In economic news, bank lending figures from the Bank of England painted a mixed picture for households and businesses, with a further reduction in consumer credit but a rise in mortgage approvals and business lending.
At 9.8%, consumer credit growth eased to its slowest rate in a year and its second slowest in three years, as the July flow was a little weaker than recent months.
Net consumer credit took analysts by surprise, falling to £1.2bn from £1.4bn, Bank revealed, when an increase to £1.5bn had been forecast.
In parallel, mortgage approvals increased to 68,689 after a weaker few months to levels seen at the beginning of the year, well up from 65,318 in the previous month and higher than the 65.5K consensus expectation.
Stateside, private payrolls consultant ADP's closely-watched monthly survey showed hiring in the US picked up to a 237,000 person pace in August.
That was comfortably in excess of the 185,000 person gain markets had been expecting.
Meanwhile, eagerly awaited official non-farm payrolls figures due out on Friday were expected to reveal a 180,000 person gain.
On the corporate front, broadcaster ITV was bouncing back from heavy losses in the previous session, when it was hit by a revenue warning from German peer ProSiebenSat.1.
Rental equipment firm Ashtead was also on the front foot, with traders pointing to a possible boost from the rebuild following Hurricane Harvey in the US.
Ocado rallied on the back of an initiation at 'buy' at Citigroup while JD Sports was boosted as Barclays reiterated its 'overweight' rating on the stock.
Diploma was in the black after saying it had continued to trade well in the second half of the year and remained on track to post full year results in line with expectations.
WH Smith reversed early gains to end lower after saying results for the year to the end of August should hit target and that it continues to see further opportunities for international growth in via the airport market, while Petrofac was marginally higher as it reported a jump in first-half pre-tax profit but rebased its dividend.
Hansteen Holdings advanced as it announced the sale of Carvers Trading Estate in Ringwood, north east of Bournemouth on Wednesday for £7.06m, reflecting a net initial yield of 4.93% and a capital value per square foot of £137.
James Fisher was lower despite posting a rise in first-half underlying operating profits and lifting its dividend.
Going the other way, Spectris was in the red after saying it will sell its Microscan Systems unit to Omron Corporation for $157m in cash.
Dunelm was hit by the resignation of its chief executive for "personal reasons" and HSS Hire tanked after the tool and equipment hire company warned that year-on-year revenue growth in the current quarter will see a "materially lower" level of improvement than expected at the start of the first half. |
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| Market Movers
FTSE 100 (UKX) 7,365.26 0.38%
FTSE 250 (MCX) 19,616.56 0.45%
techMARK (TASX) 3,385.51 0.69%
FTSE 100 - Risers
Ashtead Group (AHT) 1,672.00p 4.83%
G4S (GFS) 292.90p 2.70%
ITV (ITV) 156.90p 2.55%
Associated British Foods (ABF) 3,293.00p 2.39%
Sainsbury (J) (SBRY) 235.80p 2.21%
BAE Systems (BA.) 603.00p 2.20%
Ferguson (FERG) 4,551.00p 2.04%
Barratt Developments (BDEV) 621.00p 1.80%
GKN (GKN) 319.20p 1.49%
Rentokil Initial (RTO) 300.00p 1.49%
FTSE 100 - Fallers
easyJet (EZJ) 1,182.00p -1.99%
Provident Financial (PFG) 892.00p -1.60%
Mediclinic International (MDC) 743.00p -1.52%
Johnson Matthey (JMAT) 2,756.00p -1.47%
International Consolidated Airlines Group SA (CDI) (IAG) 601.00p -1.39%
Pearson (PSON) 604.50p -1.31%
Old Mutual (OML) 205.90p -1.25%
Royal Bank of Scotland Group (RBS) 248.50p -0.92%
Informa (INF) 680.50p -0.87%
AstraZeneca (AZN) 4,453.00p -0.86%
FTSE 250 - Risers
Diploma (DPLM) 1,089.00p 5.93%
JD Sports Fashion (JD.) 316.40p 4.32%
Ocado Group (OCDO) 304.10p 4.29%
Evraz (EVR) 315.50p 3.95%
Sirius Minerals (SXX) 27.53p 3.57%
Bodycote (BOY) 961.50p 3.33%
Unite Group (UTG) 690.00p 3.23%
Pets at Home Group (PETS) 180.40p 3.09%
Hunting (HTG) 393.50p 2.85%
Aggreko (AGK) 883.50p 2.49%
FTSE 250 - Fallers
Acacia Mining (ACA) 204.60p -5.01%
IG Group Holdings (IGG) 636.50p -4.43%
Dunelm Group (DNLM) 573.50p -4.10%
Carillion (CLLN) 45.46p -3.71%
Euromoney Institutional Investor (ERM) 1,068.00p -3.44%
Hikma Pharmaceuticals (HIK) 1,231.00p -3.30%
Millennium & Copthorne Hotels (MLC) 450.80p -3.07%
Nostrum Oil & Gas (NOG) 373.30p -2.53%
Daejan Holdings (DJAN) 5,900.00p -2.48%
Petrofac Ltd. (PFC) 413.50p -2.29% |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Markets advance as euro dips Stocks on the Continent bounced back, recouping a portion of the prior day's losses helped by gains in foreign stockmarkets and a dip in the euro's value as currency analysts began to speculate that the European Central Bank's 'hands-off' approach to foreign exchange markets might soon be tested.
By the close of trade, the benchmark Stoxx 600 was ahead by 0.70% or 2.59 points at 371.01, alongside a gain of 0.47% or 56.59 points to 12,002.47 for the Dax and a rise of 0.49% or 24.42 points in the Cac-40 that took it to 5,056.34.
Equities rose despite US President Donald Trump's quip that talking to North Korea was not the answer, adding that for the last 25 years the US had been talking to the regime and paying extortion money.
In parallel, the euro was down by 0.57% to 1.1899 against the Greenback with some analysts pointing to 'overextended' long positions in the single currency ahead of the European Central Bank's next policy meeting as a reason why traders might not want to push the currency pair higher - at least not just yet.
Technical resistance towards 1.2040 was cited as another factor.
"At the current level, it is difficult to chase the currency higher ahead of the ECB meeting next week and as long as speculators' positioning remains so extended," said analysts at UniCredit Research.
"We would not be surprised to hear Mario Draghi and co mention this as a worry again at the September 3 meeting. This should help to put a lid on the pair near term," chimed in Sverre Holbek at Danske Bank.
Overnight, the United Nations Security Council issued a "strong" condemnation of Pyongang's latest missile test, the day before, over Japanese skies.
The day before, North Korea attempted to justify its test by pointing at the ongoing military manouevres between the US and South Korea.
In economic news, the European Commission's Eurozone economic sentiment index hit 111.9 in August - its best reading in a decade - which was up from a reading of 111.3 for July.
Germany was the exception, with its corresponding ESI declining from a reading of 112.5 to 111.9.
Later in the day, preliminary data revealed that CPI in the euro area's largest economy accelerated more quickly than foreseen in August, advancing by 0.2% on the month and 1.8% on the year (consensus: 1.7%).
Spain's harmonised CPI advanced at a 2.0% clip in August (consensus: 1.8%), according to the country's statistics office, INE.
RTL shares rose after the German broadcaster posted a 9% rise in second quarter revenues. |
| | Market Analysis 30/08/2017 TodayÂ's highlights: Global markets seen higher - Wall Street closes higher: Despite continuing tensions between the US and North Korea, the Dow Jones, Nasdaq and S&P 500 all closed in the green yesterday.
- Hurricane Harvey hits oil prices: The massive storm put one-fifth of oil refineries in the US out of comission, causing a dramatic drop in demand, subsequently causing oil prices to drop. The Crude Oil Inventories reports, to be released in the US at 12:30 GMT, could affect price further.
Read More... |
| | US Market Report | | US open: Wall Street trading in mixed fashion despite record highs for Apple Stocks were trading on a mixed note at the middle of the week, despite better-than-expected readings on the jobs market and the broader economy, as shares of Apple traded at record highs.
At 1502 BST, the Dow Jones Industrial Average was off by 0.02% or 4.85 points at 21,840.90, with the S&P 500 edging higher by 0.13% or 3.26 points alongside it and the Nasdaq Composite ahead by 0.45% or 28.49 points to 6,330.73.
"Relief returned to markets on Wednesday after two-days of concern over North Korean missile threats and the huge damage inflicted on Texas by tropical storm Harvey," was LCG analyst Jasper Lawler's take on the situation.
Meanwhile, oil prices were lower ahead of the Energy Information Administration crude oil stocks data at 1530 BST. West Texas Intermediate was down 0.69% to $46.12 a barrel.
On the macroeconomic side of things, hiring in the US kept up a steady pace in August, increasing by 237,000 according to payroll specialist ADP's monthly tally, easily outpacing forecasts for a rise of 185,000.
Job creation was especially heavy among online retailers and distributors, according to Moody's Analytics chief economist, Mark Zandy.
Shortly afterwards, the Commerce Department published revised second quarter data showing that gross domestic product expanded at an annualised pace of 3.0% over the three months to June, up from an advanced estimate of 2.6%.
Year-on-year, GDP was ahead by 2.2%.
In all things Federal Reserve, in a speech at the Large Bank Directors Conference in Chicago, Illinois, Governor Jerome Powell opted not to make any remarks on monetary policy.
Meanwhile, in corporate news, Apple was in the spotlight - and trading at fresh record highs - amid investor anticipation ahead of the expected launched of a new iPhone model in September.
In parallel, United Technologies was reportedly on the hunt for a greater than $20bn tie-up with aircraft equipment manufacturer Rockwell Collins.
On a down note, stock in Barnes & Noble cratered after the publisher posted a fiscal first quarter loss of 75 cents, dwarfing analysts' estimates for 55 cents of red ink.
In tandem, shares of H&R Block were sharply lower after the company reported a wider-than-expected quarterly loss late on Tuesday.
Elsewhere, alcohol company Brown-Forman reported earnings per share for the first three months of its fiscal year of 46 cents, ahead of the 39 cents expected on the Street. At $732m, revenues also topped analysts' estimates.
Dow Jones - Risers
Goldman Sachs Group Inc. (GS) $222.65 1.22%
Cisco Systems Inc. (CSCO) $31.79 0.98%
United Technologies Corp. (UTX) $119.48 0.66%
Caterpillar Inc. (CAT) $116.75 0.64%
JP Morgan Chase & Co. (JPM) $91.63 0.58%
Walt Disney Co. (DIS) $102.98 0.40%
E.I. du Pont de Nemours and Co. (DD) $82.53 0.35%
Apple Inc. (AAPL) $163.40 0.30%
Microsoft Corp. (MSFT) $73.25 0.27%
Boeing Co. (BA) $241.06 0.24%
Dow Jones - Fallers
Travelers Company Inc. (TRV) $122.29 -0.59%
Unitedhealth Group Inc. (UNH) $195.64 -0.55%
Verizon Communications Inc. (VZ) $48.25 -0.54%
General Electric Co. (GE) $24.31 -0.53%
Johnson & Johnson (JNJ) $131.51 -0.53%
Chevron Corp. (CVX) $107.40 -0.43%
Pfizer Inc. (PFE) $33.37 -0.39%
McDonald's Corp. (MCD) $158.79 -0.37%
Procter & Gamble Co. (PG) $91.98 -0.37%
International Business Machines Corp. (IBM) $142.65 -0.34%
S&P 500 - Risers
Analog Devices Inc. (ADI) $83.05 4.40%
Martin Marietta Mtrl (MLM) $211.17 4.12%
Gilead Sciences Inc. (GILD) $78.50 3.64%
Vulcan Materials Co. (VMC) $120.27 3.24%
United States Steel Corp. (X) $26.68 2.77%
AutoNation Inc. (AN) $42.91 2.73%
Brown Forman Corp. Class B (BF.B) $52.48 2.50%
Eli Lilly and Company (LLY) $80.39 2.34%
Netflix Inc. (NFLX) $172.70 2.30%
Advance Auto Parts (AAP) $96.93 1.90%
S&P 500 - Fallers
H&R Block Inc. (HRB) $27.11 -7.25%
Endo International Plc (ENDP) $8.47 -2.92%
Best Buy Co. Inc. (BBY) $53.81 -2.20%
Western Digital Corp. (WDC) $88.14 -2.15%
Transocean Ltd. (RIG) $8.06 -2.07%
Freeport-McMoRan Inc (FCX) $14.93 -1.84%
Mylan Inc. (MYL) $29.98 -1.72%
Extra Space Storage (EXR) $76.83 -1.60%
Tenet Healthcare Corp. (THC) $17.35 -1.53%
Southwestern Energy Co. (SWN) $5.36 -1.47%
Nasdaq 100 - Risers
Analog Devices Inc. (ADI) $83.05 4.40%
Biomarin Pharmaceutical Inc. (BMRN) $86.40 4.12%
Incyte Corp. (INCY) $129.79 3.86%
Gilead Sciences Inc. (GILD) $78.50 3.64%
NetEase Inc. Ads (NTES) $272.85 2.90%
Netflix Inc. (NFLX) $172.70 2.30%
Microchip Technology Inc. (MCHP) $85.32 1.78%
Maxim Integrated Products Inc. (MXIM) $45.39 1.43%
Activision Blizzard Inc. (ATVI) $64.36 1.39%
Marriott International - Class A (MAR) $101.57 1.34%
Nasdaq 100 - Fallers
Western Digital Corp. (WDC) $88.14 -2.15%
Mylan Inc. (MYL) $29.98 -1.72%
Seagate Technology Plc (STX) $31.00 -1.43%
American Airlines Group (AAL) $44.13 -0.96%
Mattel Inc. (MAT) $15.95 -0.96%
Dish Network Corp. (DISH) $57.32 -0.78%
Henry Schein Inc. (HSIC) $167.50 -0.55%
Ross Stores Inc. (ROST) $58.42 -0.46%
Paychex Inc. (PAYX) $56.33 -0.46%
Dentsply International Inc. (XRAY) $55.49 -0.38% |
| | Barclays Vs Lloyds - Which is a better Buy? | | Barclays and Lloyds are two of the UK’s most popular stocks.
But which is the better buy?
In this Complimentary Guide we explain in plain English what’s really going on at these key British Banks.
Find out:
Are Lloyds shares set to rocket?
Why Barclays has a ‘secret weapon’ that could unlock serious value
How do they compare in value and safety?
What you’re about to find out may surprise you…
Click here for your Complimentary Guide |
| | 
Top of the stocks Number of Deals Bought Number of Deals Sold |
| | Broker Tips | | Broker tips: Provident Financial, Shell, Ocado Analysts at Liberum added Provident Financial, Pets at Home, Anglo American and Domino's Pizza to their ten-strong list of 'Conviction Sells'.
Provident Financial? 'Forget it', Liberum said, explaining that it saw "no compelling reason" to own the shares - the severe devaluation in their price notwithstanding.
Pets at Home? "It's a value trap with significant pressure across the profit and loss," the broker said.
On a cheerier note, Rio Tinto, Burberry and M&S were taken off 'Conviction sell'.
Regarding the latter two, Liberum said: "we think recent strategic reviews have improved the risk-reward profiles."
When valuing the oil majors, investors need to take into account the investment necessary to replenish their resource reserves with the impact that has on the companies' reserve life and balance sheet gearing, Citi said.
In other words, Big Oil might be able to fully cover its diviend payments at $50 a barrel oil but at a cost; namely, a 20% reduction in their reserve life as a result of underinvestment, it said. For reserve life to grow, the group needs oil at $60 a barrel.
Hence, more changes were needed at the oil majors.
Central to its analysis, geologically Citi believed the US Permian basin was capable of producing at a rate of between six to eight million barrels of crude oil a day, versus just 1.4m b/d at present. That meant output was set to double and then double again, opening the way for cost reductions of roughly 60% (assuming similar learning rates to those at Eagle Ford and Bakken and not much better ones).
Ocado Group's automated warehouse solution and the company's long quest to sell this service to supermarkets around the globe has received backing from Citi, which initiated coverage with a 'buy' recommendation.
Citi, which set a 400p price target for the shares based on the one overseas deal signed so far, feels there is latent demand in the grocery market as the channel shift in retail towards digital that is well under way in other subsectors.
"Grocery has lagged - with complexity and challenging economics damping supply - but penetration is already 5-10% in the lead countries," Citi said, pointing to Wal-Mart, Kroger and Amazon increasing supply in North America.
The bank's base scenario is that Ocado will sign one new international client per year. | | | | To advertise in the Euro Markets Bulletin please contact advertise@advfn.com |
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