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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: Another spike in Sterling weighs on the Footsie London stocks closed in the red on Friday, taking a turn for the worse as the pound shot to its highest level since the Brexit vote after hawkish comments from Bank of England policymaker Gertjan Vlieghe reinforced expectations for a rate hike.
The FTSE 100 was down 1.10% to 7,215.47, extending earlier losses, as the pound rose 1.04% versus the euro to 1.1359 and 1.4% against the dollar to 1.3585, hitting its highest level since June last year after Vlieghe said interest rates could rise "as early as in the coming months."
A stronger pound tends to dent the top-flight index as around 70% of its constituents derive their earnings from overseas.
European bourses went much the same way, with the DAX down 0.17% to 12,518.81, the CAC 40 0.22% lower to 5,213.91 and the IBEX 35 0.42% in the red to 10,317.40.
Speaking in London as part of the Society of Business Economists' annual conference, Vlieghe said: "There remains a risk that, at some stage, the uncertainty surrounding the Brexit process has a larger impact on the economy than we have seen so far. If that happens, monetary policy would respond appropriately.
"But for now, it seems the net effect of the many underlying forces acting on the UK economy is that slack is continually being eroded and wage pressure is gently building.
"If these data trends of reducing slack, rising pay pressure, strengthening household spending and robust global growth continue, the appropriate time for a rise in Bank Rate might be as early as in the coming months."
By way of a reaction, Neil Wilson, senior market analyst at ETX Capital, said: "The market has taken his comments to mean a quarter point hike is on its way, probably by the end of the year, building on the hawkish tone from the BoE yesterday.
"Quite a metamorphosis and one that highlights how the internal MPC pressures are building rapidly towards a hike in interest rates. This does not mean the start of a tightening cycle as we understand them necessarily, but at least a 'correction' to the Bank's cut last August."
Away from financial markets, the backdrop in London on Friday was unsettling as 18 people were taken to hospital after being injured in an explosion on a London Underground train in West London that was being treated as a terror attack.
Earlier, stocks kicked off the session with only minor losses as investors reacted calmly to news that North Korea had launched another missile over Japan. The missile was said to have traveled 3,700km before landing in the sea off Hokkaido, flying further and higher than the one fire over Japan last month. The launch came just days after the UN Security Council approved fresh sanctions against Pyongyang for its nuclear test on 3 September.
On the corporate front, shares in Coca‑Cola HBC fell as it said that chief executive officer Dimitris Lois will be taking a temporary leave of absence from the company in order to undergo treatment for a medical condition.
GlaxoSmithKline retreated despite saying it had received a "positive opinion" for its Trelegy Ellipta treatment for chronic obstructive pulmonary disease from the European Medical Authority's Committee for Medicinal Products for Human Use.
Indivior was up 1.56% after saying it has launched patent infringement lawsuits against Dr Reddy's, Actavis, Par, Alvogen, Teva, and Mylan over generic versions of its opioid addiction treatment, Suboxone.
JD Wetherspoon bucked the trend, however, surging after it served up a potent 43% shot of earnings growth and a passionate diatribe about Brexit from founder and chairman Tim Martin, while JD Sports Fashion pushed higher after announcing a joint venture agreement with South Korean footwear retailer, Shoemarker Inc.
Petrofac closed 1.18% lower despite RBC Capital Markets upping its stance on the oilfield services provider to 'sector perform' from 'underperform', but Carnival slumped as it was hit by a downgrade to 'neutral' from Credit Suisse, which removed the stock from its 'focus list'. |
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| Market Movers
FTSE 100 (UKX) 7,215.47 -1.10%
FTSE 250 (MCX) 19,378.16 -0.75%
techMARK (TASX) 3,402.36 -1.08%
FTSE 100 - Risers
Imperial Brands (IMB) 3,327.50p 2.05%
ITV (ITV) 158.20p 1.41%
British American Tobacco (BATS) 4,741.00p 1.03%
Next (NXT) 5,045.00p 1.02%
Royal Mail (RMG) 376.80p 0.94%
Severn Trent (SVT) 2,230.00p 0.72%
BT Group (BT.A) 284.40p 0.67%
easyJet (EZJ) 1,213.00p 0.66%
Babcock International Group (BAB) 800.50p 0.63%
Johnson Matthey (JMAT) 2,835.00p 0.53%
FTSE 100 - Fallers
Carnival (CCL) 4,783.00p -6.22%
Provident Financial (PFG) 794.00p -4.28%
Pearson (PSON) 565.50p -3.58%
Ferguson (FERG) 4,486.00p -3.28%
Fresnillo (FRES) 1,441.00p -2.50%
Reckitt Benckiser Group (RB.) 6,775.00p -2.34%
BHP Billiton (BLT) 1,330.50p -2.28%
Antofagasta (ANTO) 931.50p -2.26%
Convatec Group (CTEC) 257.80p -2.20%
Standard Chartered (STAN) 734.80p -2.13%
FTSE 250 - Risers
Wetherspoon (J.D.) (JDW) 1,189.00p 13.89%
Petra Diamonds Ltd.(DI) (PDL) 84.00p 3.58%
Spire Healthcare Group (SPI) 260.20p 3.17%
JD Sports Fashion (JD.) 383.20p 2.98%
Millennium & Copthorne Hotels (MLC) 453.90p 2.34%
Syncona Limited NPV (SYNC) 168.00p 1.82%
Polypipe Group (PLP) 397.90p 1.74%
Galliford Try (GFRD) 1,364.00p 1.72%
The Renewables Infrastructure Group Limited (TRIG) 110.30p 1.66%
Saga (SAGA) 199.70p 1.63%
FTSE 250 - Fallers
Aggreko (AGK) 862.50p -4.17%
Cairn Energy (CNE) 176.90p -3.81%
BTG (BTG) 663.50p -3.77%
Spirax-Sarco Engineering (SPX) 5,540.00p -3.48%
Nex Group (NXG) 638.00p -3.48%
Greencore Group (GNC) 186.50p -3.47%
NewRiver REIT (NRR) 346.50p -3.40%
Weir Group (WEIR) 1,741.00p -3.01%
Investec (INVP) 552.00p -2.99% |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks finish on slightly lower note European stocks ended the session just slightly lower after the North Korean regime's latest long-range missile test overnight, against a backdrop of a modest rebound in government bond yields around the world on the heels of Thursday's US CPI figures and another dose of 'hawkish' remarks out of the Bank of England.
At the closing bell, the benchmark Stoxx 600 was down by 0.28% or 1.08 points and trading at 380.71, alongside a dip of 0.22% or 11.29 points to 5,213.91 on the Cac-40 whereas the Dax was 0.17% or 21.64 points lower to 12,518.81.
Overnight, just before midnight in London, North Korea fired an intermediate range missile over the Japanese archipelago, its second such test since 29 August.
Despite the regime's latest antics on the world's anti ballistic missile stage, dollar/yen was in fact higher by 0.58% to 110.86 - but off an intraday high of 111.35 - alongside a small dip in gold futures on COMEX to $1,326.40/oz..
Reaching an altitude of 770 kilometres and travelling 3,700 kilometres, Pyongyang demonstrated that its missiles had sufficient range to reach the US Pacific territory of Guam, in what was seen by observers as a response to the latest round of sanctions against the country and a convenient excuse to further refine its arsenal.
Commenting on the reaction in markets, Michael Hewson, chief market analyst at CMC Markets UK, said: "This time global markets have reacted fairly calmly to the test yet it is hard to escape the feeling that this so called shadow boxing between North Korea, and the rest of the world could end with a miscalculation from one side or the other. In a sign of this South Korea responded with some drills and tests of its own."
In response, the United Nations Security Council convened a meeting for 2000 BST on Friday evening to discuss North Korea's latest actions.
Meanwhile, in economic news, speaking at the Society of Business Economists' annual conference, in London, the MPC's Martin Vlieghe reiterated the panel's stance from the day before than a hike in Bank Rate may be in order "in coming months".
That saw cable spike again, by 1.28% to 1.3569, and drove the yield on the benchmark 10-year Gilt up by eight basis points to 1.31%, after hitting an intra-day high at 1.34%.
In other economic news, Eurostat reported that the single currency area's foreign trade surplus slipped from €21.7bn in June to €18.6bn for July.
Also worth noting, in a speech delivered in Frankfurt, ECB governing council member Sabine Lautenschlager indicated that "some" monetary accomidation was still needed in order to return euro are-wide inflation back to target.
On the corporate front, investors in Carnival were left splashing about after analysts at Credit Suisse downgraded their recommendation from 'outperform' to 'neutral' given the uncertain outlook.
Nordic retailer Hennes & Mauritz on the other hand was higher after posting a 5% jump in the group's third quarter sales and a "good start" to sales of its "autumn collection".
Renault-Nissan pledged to double the cost synergies from their alliance to €10bn by 2022.
Air Berlin finished lower as the deadline for submitting bids for the bankrupt carrier's assets loomed over it. |
| | US Market Report | | US open: Stocks higher even as analysts mark down GDP forecasts Wall Street is keeping its head above water going into the weekend, with investors taking the latest missile launch by North Korea in their stride and despite the release of a string of indicators which revealed that hurricanes Harvey and Irma were already taking their toll on activity last month.
At 1700 BST, the Dow Jones Industrial Average was higher by 0.20% or 44.12 points to 22,247.72, while the S&P 500 was edging higher by 0.10% or 2.57 points to 2,498.27 and the Nasdaq Composite was ahead by 0.40% or 25.54 points to 6,454.60.
Investors reacted with a certain degree of calm to news that North Korea has launched another missile over Japan. The missile was said to have travelled 3,700km before landing in the sea off Hokkaido, flying further and higher than another one fired over Japan last month. The launch came just days after the UN
Security Council approved fresh sanctions against Pyongyang for its nuclear test on 3 September.
IG analyst Joshua Mahony said: "Following a new set of sanctions, it seemed almost a foregone conclusion that we would see North Korea emerge with another test before long. Yet the fact that markets have chosen to brush aside this latest test is testament to how far market opinion has come after the hysteria of recent weeks."
Economic data was almost uniformly weak on Friday, mainly as a result of hurricane Harvey and Irma's impact, save for the so-called Empire State manufacturing index for September which slipped by just 0.8 points to 24.4, denoting confidence in the sector's outlook, according to analysts.
In parallel, the Commerce Department reported a 0.2% drop for retail sales volumes in August (consensus: 0.1%), alongside downwards revisions to prior month's data.
August industrial production figures also fell well short of the mark, dropping by 0.9% month-on-month (consensus: 0.1%), according to figures from the Federal Reserve, as mining and utilities output.
Meanwhile, the University of Michigan reported a drop in its consumer confidence gauge for September to 95.3, down from a reading of 96.8 in the month before (consensus: 96.5). Again, here too those two hurricanes left a clear imprint, with survey responses showing a clear link between them and expectations for the economy weakness.
On the back of the retail sales and industrial production figures, Barclays Research took down its third quarter tracking estimate for US GDP from 2.6% to 2.0%.
Nonetheless, Berenberg sounded an optimistic note on the underlying trend for investment, pointing to the results from the Empire State survey to back up its conclusions.
Meanwhile, in the corporate space, Oracle's share price got pummelled after co-CEO Safra Catz guided toward growth in fiscal second quarter sales of between 2% to 4%, versus market forecasts calling for an increase of 4.7%.
Steel-maker Nucor was also lower as the company lowered its outlook for third quarter profits.
Amazon.com also attracted some attention at the end of the week on the heels of market speculation that it might be set to buy German-listed Shop Apotheke, with stock in the latter up by a further 15% despite denying it was in talks with the US internet giant.
Dow Jones - Risers
Apple Inc. (AAPL) $160.85 1.63%
Boeing Co. (BA) $249.03 1.55%
Intel Corp. (INTC) $36.83 0.96%
Cisco Systems Inc. (CSCO) $32.46 0.84%
American Express Co. (AXP) $86.73 0.63%
Microsoft Corp. (MSFT) $75.23 0.62%
Walt Disney Co. (DIS) $98.47 0.58%
3M Co. (MMM) $212.57 0.54%
JP Morgan Chase & Co. (JPM) $91.40 0.47%
Wal-Mart Stores Inc. (WMT) $80.01 0.42%
Dow Jones - Fallers
General Electric Co. (GE) $23.77 -2.02%
Goldman Sachs Group Inc. (GS) $224.85 -0.88%
International Business Machines Corp. (IBM) $144.37 -0.81%
Pfizer Inc. (PFE) $35.49 -0.66%
Visa Inc. (V) $105.45 -0.59%
Exxon Mobil Corp. (XOM) $79.68 -0.51%
Procter & Gamble Co. (PG) $93.22 -0.35%
Chevron Corp. (CVX) $114.14 -0.27%
United Technologies Corp. (UTX) $113.03 -0.10%
E.I. du Pont de Nemours and Co. (DD) $83.93 0.00%
S&P 500 - Risers
First Solar Inc. (FSLR) $51.42 6.17%
Nvidia Corp. (NVDA) $178.24 5.22%
Western Digital Corp. (WDC) $88.24 2.86%
Frontier Communications Co. (FTR) $13.22 2.32%
Macy's Inc. (M) $22.42 1.93%
TripAdvisor Inc. (TRIP) $43.79 1.91%
Skyworks Solutions Inc. (SWKS) $109.02 1.81%
Dentsply International Inc. (XRAY) $59.12 1.72%
CenturyLink Inc. (CTL) $19.02 1.71%
Analog Devices Inc. (ADI) $83.73 1.69%
S&P 500 - Fallers
Henry Schein Inc. (HSIC) $83.94 -47.91%
Oracle Corp. (ORCL) $49.40 -6.42%
Carnival Corp. (CCL) $65.26 -5.06%
Equifax Inc. (EFX) $92.48 -4.32%
Southwestern Energy Co. (SWN) $5.71 -3.38%
Mylan Inc. (MYL) $31.90 -2.95%
United Continental Holdings Inc. (UAL) $59.45 -2.94%
Tenet Healthcare Corp. (THC) $16.68 -2.77%
Royal Caribbean Cr (RCL) $120.41 -2.54%
H&R Block Inc. (HRB) $25.85 -2.23%
Nasdaq 100 - Risers
Nvidia Corp. (NVDA) $178.24 5.22%
Western Digital Corp. (WDC) $88.24 2.86%
Skyworks Solutions Inc. (SWKS) $109.02 1.81%
Dentsply International Inc. (XRAY) $59.12 1.72%
Analog Devices Inc. (ADI) $83.73 1.69%
Twenty-First Century Fox Inc Class B (FOX) $26.42 1.62%
Texas Instruments Inc (TXN) $84.54 1.50%
Twenty-First Century Fox Inc Class A (FOXA) $26.87 1.40%
Vertex Pharmaceuticals Inc. (VRTX) $155.47 1.36%
Apple Inc. (AAPL) $160.42 1.35%
Nasdaq 100 - Fallers
Henry Schein Inc. (HSIC) $83.94 -47.91%
Mylan Inc. (MYL) $31.90 -2.95%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $56.28 -2.49%
Marriott International - Class A (MAR) $104.97 -1.33%
Citrix Systems Inc. (CTXS) $75.74 -1.16%
Comcast Corp. (CMCSA) $37.24 -0.94%
Regeneron Pharmaceuticals Inc. (REGN) $437.18 -0.92%
Amgen Inc. (AMGN) $187.81 -0.86%
Autodesk Inc. (ADSK) $114.73 -0.64% |
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