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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: Strength in Sterling puts a lid on stocks London stocks traded fairly flat on Wednesday as the pound popped higher on the back of stronger than expected retail sales data, even as traders waited on the US Federal Reserve's policy announcement later in the day.
The FTSE 100 was marginally lower by the close at 7,271.95, down 0.05%, while the pound was 0.33% firmer versus the dollar at 1.3555, having shot up to 1.3600 immediately after the release of the retail sales figures, which revealed a spike higher on the back of inflationary pressures and increased sales volumes in August.
On the European side, bourses were all relatively flat on the day with the DAX up 0.06% to 12,569.17, the CAC 40 0.08% higher to 5,241.66 and the IBEX 35 0.83% lower at 10,292.10.
Retail sales increased 1% month-on-month in August, much higher than the 0.2% consensus forecast and an improvement on the 0.7% revised figure from a month earlier.
Compared to last year, retail sales were 2.8% higher versus expectations of a 1.4% rise and up from 1.7% in the prior month, the Office for National Statistics said.
The contribution of food stores remained flat year-on-year and there was a fall in the contribution of growth from petrol stations, which the ONS said showed most of the overall growth came from "non-essential items".
Store prices increased across all store types, with non-food store prices up 3.2% on last year from 2.7% the month before, while non-store prices rose 3.3%, both their highest year-on-year price growth since March 1992.
The pound gained as the robust sales data was seen as increasing the odds that the Bank of England will raise interest rates in November, but the currency eased off soon after.
Spreadex analyst Connor Campbell highlighted three factors that were likely to have contributed to sterling's easing: "First is the fear that the increase in spending is being fuelled by a rise in consumer credit, an issue the Bank of England has repeatedly warned on in recent months.
"Then there was the latest round of economic projections from the OECD, which puts the UK at the bottom of the G7 GDP table with expectations of just 1% growth in 2018 (that compares to a forecast 1.9% jump in the Eurozone, and a 2.1% rise by Germany). Of course, a large part of the swift return to forex flatness is the impending Federal Reserve meeting."
The Fed was widely expected to stand pat on rates when it announced its latest policy decision at 1900 BST, leaving market participants eyeing the statement at 1930 BST as the central bank has been signalling that it plans to soon wind down its balance sheet.
On the corporate front, Kingfisher rallied after the B&Q and Screwfix owner posted better profits than were expected for the first half of the year but remained cautious on the second half backdrop in the UK and France.
GlaxoSmithKline advanced as it reported positive headline results from a phase-three impact study of Trelegy Ellipta, a triple-therapy inhaler for patients with chronic obstructive pulmonary disease.
Retailers Marks & Spencer and Next were on the front foot, boosted by the ONS retail sales data, while Babcock racked up healthy gains after reiterating its guidance for the year and saying trading has been in line with its expectations.
Domino's Pizza gained ground after announcing a £15m share buyback programme while Cairn Energy edged lower as it said a final hearing for its tax dispute with India has been scheduled for August 2018.
Outsourcer Mitie traded 0.58% lower as it said it will cut 480 jobs by the end of the year as a result of its transformation programme and that it is considering selling its property management division.
Shire nudged a touch higher after saying that it and its Japanese partner Shionogi saw positive results from a phase III clinical trial of Intuniv in adults with attention deficit hyperactivity disorder.
Diageo was in the red as it said it remained "well set up" to deliver in line with its own expectations but warned that the first-half organic net sales growth rate will be hit by the later timing of Chinese New Year and by the expected impact of the ban on alcohol sales near highways in India.
Metro Bank was under pressure as Macquarie initiated coverage of the stock at 'underperform', while BTG fell after saying it has been ordered to pay $55.8m in damages plus interest and costs to Wellstat Therapeutics in a dispute over the distribution of Vistogard, an antidote to the overdose of two chemotherapy drugs. |
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| Market Movers
FTSE 100 (UKX) 7,271.95 -0.05%
FTSE 250 (MCX) 19,540.77 0.03%
techMARK (TASX) 3,427.11 -0.12%
FTSE 100 - Risers
Babcock International Group (BAB) 846.50p 5.81%
Kingfisher (KGF) 313.00p 5.60%
ITV (ITV) 162.20p 2.79%
Convatec Group (CTEC) 269.50p 2.78%
WPP (WPP) 1,382.00p 2.52%
Marks & Spencer Group (MKS) 348.00p 2.35%
Barratt Developments (BDEV) 602.00p 2.03%
Next (NXT) 5,070.00p 1.85%
Whitbread (WTB) 3,690.00p 1.82%
Sage Group (SGE) 713.50p 1.57%
FTSE 100 - Fallers
Diageo (DGE) 2,426.50p -2.78%
International Consolidated Airlines Group SA (CDI) (IAG) 596.50p -1.65%
Barclays (BARC) 185.90p -1.27%
Ashtead Group (AHT) 1,763.00p -1.23%
St James's Place (STJ) 1,123.00p -1.14%
NMC Health (NMC) 2,688.00p -1.14%
Burberry Group (BRBY) 1,758.00p -1.12%
RSA Insurance Group (RSA) 624.50p -1.11%
Mediclinic International (MDC) 685.00p -0.94%
British American Tobacco (BATS) 4,606.00p -0.91%
FTSE 250 - Risers
Domino's Pizza Group (DOM) 293.10p 6.54%
Cineworld Group (CINE) 644.00p 3.95%
Aggreko (AGK) 904.50p 3.73%
Auto Trader Group (AUTO) 376.00p 3.33%
Telecom Plus (TEP) 1,112.00p 2.94%
Provident Financial (PFG) 758.00p 2.92%
IP Group (IPO) 129.30p 2.71%
Dixons Carphone (DC.) 176.60p 2.67%
Royal Mail (RMG) 388.20p 2.56%
Clarkson (CKN) 2,897.00p 2.37%
FTSE 250 - Fallers
Metro Bank (MTRO) 3,335.00p -4.04%
Spire Healthcare Group (SPI) 239.10p -3.24%
Fisher (James) & Sons (FSJ) 1,437.00p -3.04%
Lancashire Holdings Limited (LRE) 635.00p -2.68%
Just Group (JUST) 149.40p -2.54%
JD Sports Fashion (JD.) 383.60p -2.49%
Ultra Electronics Holdings (ULE) 1,747.00p -2.46%
PZ Cussons (PZC) 329.90p -2.19%
UDG Healthcare Public Limited Company (UDG) 835.50p -1.99% |
| | Barclays Vs Lloyds - Which is a better Buy? | | Barclays and Lloyds are two of the UK’s most popular stocks.
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Spanish stocks underperform European stocks ended the session little changed amid moderate selling pressure on Spanish stocks on the back of the latest news around the attempted independence referendum in Catalonia and ahead of the US Federal Reserve's policy decision later in the session.
By the close, the benchmark Stoxx 600 had drifted lower by 0.04% or 0.14 points to 381.98, alongside a small rise of 0.06% or 7.38 points to 12,569.17 for Germany's Dax while the Cac-40 managed a gain of 0.08% or 4.22 points to 5,241.66.
Out in the euro area periphery however, Spain's Ibex 35 was down by 0.83% or 86.30 points to 10,292.10, with shares in construction group ACS and Catalan lenders Banco Sabadell and Caixa Bank trading at the bottom of the pile.
In parallel, the yield on the benchmark 10-year Spanish government note was three basis points higher at 1.58%, having dipped to 1.53% earlier. Yields on debt issued by Paris and with a similar maturity was at 0.73%.
Ahead of the 1 October plebiscite, earlier on on Wednesday Spanish police arrested 12 local government officials after they pressed ahead with plans for a poll despite it having been ruled illegal by the country's Constitutional Court.
Still on the calendar, the Federal Open Market Committee's policy statement was scheduled for release at 1900 BST and chair Janet Yellen's press conference a half hour afterwards.
Commenting on market expectations ahead of the US central bank's policy announcement, Michael Hewson, chief market analyst at CMC Markets UK said: "The main question surrounds the timing of when the next rate rise is likely to come, and for this there is a school of thought that suggests the market is under-pricing the prospect that we could get one more hike this year, in December.
"This is why particular attention is likely to be focussed on the dot plot projections of where US policymakers see the potential glide path for rates into next year. It is unlikely that Fed officials will want to take the prospect of a December move off the table, so it would be a surprise to see any changes to the short - term predictions, but there is a whole raft of factors that could delay the prospect of a move in December, and see fewer projected increases into 2018."
Wednesday's economic calendar was otherwise quite light, with only German producer price figures for August out earlier which revealed a 2.6% pace of increase year-on-year (consensus: 2.5%).
Outside of energy, factory gate prices were higher by just 2.6% on the year, versus a rise of 2.5% in the month before, according to Claus Vistesen at Pantheon Macroeconomics.
Nontheless, Vistesen pointed out recent gains in Chinese producer prices, typically a good lead indicator for imported manufacturing goods.
On the corporate front, Thyssen Krupp and Tata Steel agreed to combine their European steel activities via a 50-50 joint venture, creating Europe's second-largest steelmaker in the process.
In other news, Hochtief was reportedly studying a potential bid for Spanish firm Abertis. |
| | 
Top of the stocks Number of Deals Bought Number of Deals Sold |
| | US Market Report | | US open: Stocks mixed ahead of FOMC, Apple drags Investors are sitting on their hands ahead of the US central's bank's eagerly-awaited policy meeting.
Against that backdrop, as of 1551 BST the Dow Jones Industrials Average was up by 0.01% or 1.59 points at 22,372.34, alongside a dip of barely 0.04% or 0.95 points to 2,505.52 for the S&P 500.
The Nasdaq Composite on the other hand was off by 0.35% or 22.32 points to 6,438.89, as shares of Apple came under selling pressure.
From a sector standpoint, the best performing areas of the market are: Aluminum (3.66%), Non-ferrous metals 92.48%), Gambling (2.03%), Iron & Steel (1.73%) and Airlines (1.46%).
Following two days of deliberations, at 2000 BST the Federal Open Market Committee was widely expected to announce the start of tapering its quantitative asset purchases.
It was less clear on the other hand to what extent rate-setters would mark down their forecasts for rate hikes over the medium-term contained in their so-called 'dot-plot' projections.
For analysts at Barclays Research, the key aspect would be to what extent they believed recent weaker-than-expected core PCE readings were persistent as opposed to transitory.
In July, the rate of gains in the core price deflator for personal consumption expenditures retreated to a 1.4% year-on-year pace, down from 1.5% in the month before and a print of 1.9% at the start of 2017.
Also on the economic front, in August existing US home sales dropped by 1.7% on the month to reach an annualised pace of 5.35m (consensus: 5.45m), according to the National Association of Realtors.
In corporate news, Apple was a drag on the main indices as reports surfaced of connectivity problems with its new Apple Watch Series 3.
Going the other way, Pfizer was a top-gainer after analysts at Morgan Stanley upgraded their recommendation on the stock from 'neutral' to 'overweight'.
American Outdoor Brands was higher as well following reports late on Tuesday that President Trump will ease rules on gun exports.
Retailer Bed Bath & Beyond tanked nearly 14% after its earnings late on Tuesday missed analysts' expectations. The company said same-store sales declined 2.6% in the second quarter, versus expectations of a 0.7% drop, while sales of $2.9bn fell short of estimates of $3bn.
Elsewhere, FedEx was also in focus after its earnings late on Tuesday also disappointed, with the company cutting its profit forecast for the year as it took a hit from a cyber attack.
Dow Jones - Risers
Pfizer Inc. (PFE) $35.87 1.18%
McDonald's Corp. (MCD) $159.26 1.17%
Boeing Co. (BA) $254.80 0.93%
International Business Machines Corp. (IBM) $145.37 0.68%
Home Depot Inc. (HD) $158.62 0.61%
Verizon Communications Inc. (VZ) $49.62 0.57%
Cisco Systems Inc. (CSCO) $32.67 0.54%
JP Morgan Chase & Co. (JPM) $94.42 0.51%
General Electric Co. (GE) $24.32 0.50%
Exxon Mobil Corp. (XOM) $80.59 0.46%
Dow Jones - Fallers
Apple Inc. (AAPL) $154.22 -2.84%
3M Co. (MMM) $210.16 -1.59%
Johnson & Johnson (JNJ) $133.10 -1.57%
Intel Corp. (INTC) $36.92 -0.83%
Microsoft Corp. (MSFT) $74.92 -0.69%
Caterpillar Inc. (CAT) $124.53 -0.17%
Merck & Co. Inc. (MRK) $65.88 -0.11%
United Technologies Corp. (UTX) $113.53 -0.11%
Coca-Cola Co. (KO) $45.97 -0.02%
E.I. du Pont de Nemours and Co. (DD) $83.93 0.00%
S&P 500 - Risers
Diamond Offshore Drilling Inc. (DO) $13.83 4.22%
Alcoa Corporation (AA) $47.76 3.38%
Transocean Ltd. (RIG) $9.64 3.10%
W.W. Grainger Inc. (GWW) $175.88 3.08%
TEGNA Inc (TGNA) $12.74 2.95%
Helmerich & Payne Inc. (HP) $50.41 2.75%
Roper Technologies Inc (ROP) $244.99 2.68%
Marathon Oil Corp. (MRO) $12.32 2.67%
American Airlines Group (AAL) $45.47 2.44%
Devon Energy Corp. (DVN) $34.55 2.31%
S&P 500 - Fallers
Bed Bath & Beyond Inc. (BBBY) $23.14 -14.39%
Western Digital Corp. (WDC) $85.42 -5.00%
General Mills Inc. (GIS) $52.62 -4.98%
L Brands Inc (LB) $37.37 -4.74%
Adobe Systems Inc. (ADBE) $150.15 -4.12%
Qorvo, Inc. (QRVO) $71.71 -3.51%
First Solar Inc. (FSLR) $47.15 -3.50%
Broadcom Limited (AVGO) $242.18 -3.03%
Skyworks Solutions Inc. (SWKS) $104.73 -2.96%
Apple Inc. (AAPL) $154.22 -2.84%
Nasdaq 100 - Risers
American Airlines Group (AAL) $45.47 2.44%
Dish Network Corp. (DISH) $54.66 2.40%
Liberty Interactive Corporation QVC Group (QVCA) $23.05 1.77%
Mercadolibre Inc. (MELI) $294.57 1.59%
CSX Corp. (CSX) $52.56 1.51%
Ctrip.Com International Ltd. Ads (CTRP) $53.71 1.30%
Dentsply International Inc. (XRAY) $58.60 1.30%
Fastenal Co. (FAST) $44.75 1.24%
O'Reilly Automotive Inc. (ORLY) $205.41 1.23%
Mylan Inc. (MYL) $31.36 1.23%
Nasdaq 100 - Fallers
Western Digital Corp. (WDC) $85.42 -5.00%
Adobe Systems Inc. (ADBE) $150.15 -4.12%
Broadcom Limited (AVGO) $242.18 -3.03%
Skyworks Solutions Inc. (SWKS) $104.73 -2.96%
Apple Inc. (AAPL) $154.22 -2.84%
Lam Research Corp. (LRCX) $172.67 -2.51%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $54.16 -2.34%
Microchip Technology Inc. (MCHP) $88.97 -2.21%
Maxim Integrated Products Inc. (MXIM) $46.26 -1.91% | | | | To advertise in the Euro Markets Bulletin please contact advertise@advfn.com |
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