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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 firmer as pound losses ground after May speech London stocks had reversed earlier losses to trade a little higher by Friday's close, helped along by a weaker pound as investors weighed up a key speech by Prime Minister Theresa May.
The FTSE 100 was up 0.64% to 7,310.64, while the pound was down 0.44% against the dollar at 1.3522 and 0.63% weaker versus the euro at 1.1302 as the single currency was boosted by encouraging business activity data for the bloc.
Over in Europe, the DAX was 0.06% lower to 12,592.35, the CAC 40 traded 0.27% higher to 5,281.29 and the IBEX 35 gained 0.08% at 10,305.00
Stocks had kicked off the session in the red amid concerns about North Korea, which threatened on Thursday to test a hydrogen bomb over the Pacific.
Speaking at a United Nations meeting in New York, North Korea's foreign minister Ri Yong Ho said the country could consider a nuclear test of "unprecedented scale".
Investors were also weighing up the latest speech from Theresa May regarding the UK's view of Brexit and ongoing negotiations.
In it, she drew many similarities between Britain and the EU and stated that if the complicated talks to unravel more than 40 years of union should fail, then the only beneficiaries would be those who "reject our values and oppose our interests."
She also asserted the UK's call for a two year transition out of the EU while offereing concessions on a divorce deal as she appealed for a revival of Brexit negotiations.
Market participants were also digesting the latest survey from the Confederation of British Industry, which showed that factory orders in the UK grew at their weakest rate since April in September.
The CBI's factory order book balanced fell to +7 from +13 in August, missing expectations for an unchanged reading, largely due to the food and drink sector.
Meanwhile, the export order book balance came in at +10 in September from +11 the month before and the output balance for the last three months fell to +17 from +30.
Still, the CBI pointed out that all three balances remained above the long-run averages.
On the corporate front, specialty chemicals company Johnson Matthey racked up healthy gains for the second day running after it announced a £200m investment in battery technology on Thursday that will allow it to tap into the growing electric car market.
Pets at Home surged after a capital markets day on Thursday that was more upbeat than expected, according to analysts.
Acacia Mining was also on the front foot after saying it has yielded positive results from a trial to increase the proportion of sellable gold produced by its smallest mine in the country.
Going the other way, Smiths Group was under the cosh after it reported a small decline in full year underlying revenue but 11% growth on a reported basis thanks to the weak pound and said its strategic progress set it up to return to growth next year.
Saga, the specialist provider of products and services for those over 50, reversed course to nudge just a touch lower after it reported a 5.5% jump in its underlying pre-tax profit for the first half to £110.2m.
Shares in oil rig builder Lamprell tanked as it posted a drop in first-half revenue and warned that revenue for 2018 would be 10% lower on the year.
In terms of sectors, heavily-weighted mining stocks were marginally higher on the day, with BHP Billiton, Antofagasta, Anglo American and Glencore all up a touch following S&P's downgrade of China's credit rating on Thursday. |
| | 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…
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| Market Movers
FTSE 100 (UKX) 7,310.64 0.64%
FTSE 250 (MCX) 19,517.36 0.51%
techMARK (TASX) 3,443.31 0.85%
FTSE 100 - Risers
AstraZeneca (AZN) 4,912.00p 3.01%
Johnson Matthey (JMAT) 3,492.00p 3.01%
Standard Life Aberdeen (SLA) 427.80p 2.71%
RSA Insurance Group (RSA) 634.50p 2.50%
Hargreaves Lansdown (HL.) 1,454.00p 2.18%
WPP (WPP) 1,414.00p 1.95%
Fresnillo (FRES) 1,437.00p 1.91%
InterContinental Hotels Group (IHG) 3,803.00p 1.90%
Antofagasta (ANTO) 939.50p 1.90%
Pearson (PSON) 576.50p 1.77%
FTSE 100 - Fallers
Smiths Group (SMIN) 1,517.00p -5.95%
Kingfisher (KGF) 296.70p -1.17%
Smurfit Kappa Group (SKG) 2,349.00p -0.93%
Lloyds Banking Group (LLOY) 66.91p -0.80%
Standard Chartered (STAN) 729.10p -0.76%
Scottish Mortgage Inv Trust (SMT) 413.10p -0.72%
easyJet (EZJ) 1,191.00p -0.58%
Sainsbury (J) (SBRY) 233.30p -0.43%
National Grid (NG.) 944.10p -0.40%
ITV (ITV) 166.30p -0.36%
FTSE 250 - Risers
Pets at Home Group (PETS) 207.50p 6.63%
Tullow Oil (TLW) 178.30p 4.33%
Mitchells & Butlers (MAB) 244.80p 3.55%
Wood Group (John) (WG.) 664.50p 3.26%
Amec Foster Wheeler (AMFW) 497.70p 2.87%
Indivior (INDV) 325.10p 2.85%
Cairn Energy (CNE) 185.00p 2.60%
Safestore Holdings (SAFE) 401.40p 2.50%
Polymetal International (POLY) 828.50p 2.42%
Ultra Electronics Holdings (ULE) 1,771.00p 2.37%
FTSE 250 - Fallers
Millennium & Copthorne Hotels (MLC) 445.00p -2.87%
FDM Group (Holdings) (FDM) 957.00p -2.71%
TBC Bank Group (TBCG) 1,632.00p -2.44%
Galliford Try (GFRD) 1,325.00p -2.29%
JPMorgan Indian Investment Trust (JII) 710.00p -2.07%
Daejan Holdings (DJAN) 5,830.00p -2.02%
Ferrexpo (FXPO) 286.10p -1.82%
CLS Holdings (CLI) 198.80p -1.55%
Metro Bank (MTRO) 3,292.00p -1.29% |
| | 
Top of the stocks Number of Deals Bought Number of Deals Sold |
| | US Market Report | | US open: Wall Street recovers after initial dip Wall Street has started the session slightly lower but was quickly recovering, following a threat from North Korea's top diplomatic official.
At 1442 BST, the Dow Jones Industrial Average was dipping 0.04% or 9.19 points to trade at 22,350.05, with the S&P 500 off by 0.04% or 1.10 points to 2,499.48 alongside it and the Nasdaq Composite declining by 0.08% or 5.60 points to 6,416.66.
From a sector standpoint, the best performing areas of the market were: Mobile telecommunications (2.07%), Electronic office equipment (1.39%) and Business support services (0.88%).
Speaking at a United Nations meeting in New York late on Thursday, North Korea's foreign minister Ri Yong Ho said the country could consider a nuclear test of "unprecedented scale".
Meanwhile, in a statement reported by North Korea's official news agency, Kim Jong Un said US President Donald Trump is "deranged" and will "pay dearly" for his threats. He added that his country would consider "the hardest level of hardline countermeasure in history" against the US.
His comments came after Trump delivered a speech at the United Nations earlier in the week in which he pledged to destroy North Korea if the US was attacked.
Acting as a backdrop, markets were also keeping a close eye on several Fed speakers. Speaking earlier in the day from the Swiss National Bank, San Francisco Fed chief John Williams reportedly held out the possibility of an interest rate hike as soon as in December.
However, he also indicated that in his view the "new normal" for the Fed funds rate - the US central bank's main policy rate - was around 2.5%.
Alongside those remarks, the yield on the benchmark two-year US Treasury was one basis point lower to 1.43%, but off an overnight low of 1.42%.
In parallel, IHS Markit reported a modest drop in its composite purchasing managers' index for the US manufacturing and services sector from 55.3 in August to 54.6.
Nonetheless, the survey compiler labelled the economy's performance "resilient" given the disruptions from various hurricanes.
Still on the macroeconomic calendar for later in the day, Kansas City President Esther George was set to deliver a keynote speech at an oil conference in Oklahoma with Dallas Fed chief Robert Kaplan also scheduled to take part in a Q&A at the same event.
Weekly US oil rig count figures were also still ahead, at 1900 BST.
On the corporate front, shares in biopharmaceutical group Versartis tumbled after it said late on Thursday that its drug somavaratan did not meet its primary endpoint in a phase 3 trial.
Elsewhere, Phillips 66 Partners said it had reached an agreement to buy assets from Phillips 66 in a transaction worth $2.4bn.
CarMax stock was a top riser after the used car retailer posted second quarter earnings and sales of 98 cents per share and $4.39bn, respectively.
Sprint and T Mobile shares were both wanted on the heels of a Reuters report that the two firms were now nearer to agreeing on a tie-up.
Dow Jones - Risers
Verizon Communications Inc. (VZ) $49.38 0.89%
Boeing Co. (BA) $258.14 0.82%
Cisco Systems Inc. (CSCO) $32.87 0.52%
Coca-Cola Co. (KO) $45.56 0.35%
Chevron Corp. (CVX) $116.81 0.29%
Procter & Gamble Co. (PG) $92.89 0.27%
Home Depot Inc. (HD) $159.59 0.25%
Caterpillar Inc. (CAT) $125.04 0.20%
Johnson & Johnson (JNJ) $132.01 0.20%
General Electric Co. (GE) $24.79 0.18%
Dow Jones - Fallers
Apple Inc. (AAPL) $151.09 -1.50%
Unitedhealth Group Inc. (UNH) $193.30 -0.98%
Goldman Sachs Group Inc. (GS) $230.08 -0.52%
Intel Corp. (INTC) $37.08 -0.31%
Merck & Co. Inc. (MRK) $65.46 -0.21%
Walt Disney Co. (DIS) $98.71 -0.19%
Nike Inc. (NKE) $53.11 -0.15%
JP Morgan Chase & Co. (JPM) $94.89 -0.15%
Microsoft Corp. (MSFT) $74.13 -0.11%
Travelers Company Inc. (TRV) $121.36 -0.11%
S&P 500 - Risers
Carmax Inc. (KMX) $72.63 5.51%
Equifax Inc. (EFX) $102.71 4.53%
Diamond Offshore Drilling Inc. (DO) $13.37 2.14%
Transocean Ltd. (RIG) $9.27 2.09%
L Brands Inc (LB) $37.61 1.98%
O'Reilly Automotive Inc. (ORLY) $205.79 1.75%
Paychex Inc. (PAYX) $59.16 1.67%
Iron Mountain Inc (New) (IRM) $40.43 1.66%
First Solar Inc. (FSLR) $49.55 1.62%
Allergan plc (AGN) $205.83 1.56%
S&P 500 - Fallers
United States Steel Corp. (X) $23.32 -5.43%
Tiffany & Co. (TIF) $86.89 -3.29%
Mohawk Inds Inc. (MHK) $246.27 -3.09%
International Paper Co. (IP) $55.54 -3.05%
Alcoa Corporation (AA) $44.85 -3.03%
Westrock Company (WRK) $55.90 -2.97%
Mattel Inc. (MAT) $14.65 -2.30%
Endo International Plc (ENDP) $8.61 -2.17%
Centene Corp. (CNC) $89.10 -1.81%
Apple Inc. (AAPL) $151.09 -1.50%
Nasdaq 100 - Risers
O'Reilly Automotive Inc. (ORLY) $205.79 1.75%
Paychex Inc. (PAYX) $59.16 1.67%
T-Mobile Us, Inc. (TMUS) $64.31 1.44%
Expedia Inc. (EXPE) $145.03 1.33%
Liberty Interactive Corporation QVC Group (QVCA) $23.42 1.28%
Texas Instruments Inc (TXN) $87.10 1.22%
American Airlines Group (AAL) $46.84 1.19%
Electronic Arts Inc. (EA) $119.29 1.07%
Lam Research Corp. (LRCX) $173.90 0.94%
Viacom Inc. Class B (VIAB) $27.63 0.84%
Nasdaq 100 - Fallers
Mattel Inc. (MAT) $14.65 -2.30%
Incyte Corp. (INCY) $113.01 -1.77%
Apple Inc. (AAPL) $151.09 -1.50%
Regeneron Pharmaceuticals Inc. (REGN) $427.23 -1.44%
NetEase Inc. Ads (NTES) $273.65 -1.43%
JD.com, Inc. (JD) $42.37 -1.42%
Vertex Pharmaceuticals Inc. (VRTX) $150.81 -0.82%
Ctrip.Com International Ltd. Ads (CTRP) $52.99 -0.81%
Alexion Pharmaceuticals Inc. (ALXN) $142.02 -0.63% |
| | Broker Tips | | Broker tips: CCH, John Laing Group, Johnson Matthey Analysts at Morgan Stanley revised their target for CCH shares sharply higher, telling clients the improvement in the Coca Cola bottler's fundamental drivers looked "sustainable", while adding that its strategic optionality constituted an 'upside' risk for the shares.
"Whilst we continue to believe the soft drinks industry faces structural challenges, we note that improving macro and a healthier consumer outlook across CCH markets should support a sustainable improvement in top-line growth," they said.
Year-to-date the stock was up by 43% as management forged ahead on reaching its target for 11% EBIT margins by fiscal year-end 2020, leading to upgrades from the analyst consensus which in turn had driven a re-rating in the company's valuation multiples. Tailwinds from FX movements - given that the company earns euros but reports in Sterling - were also cited as a factor behind the recent share price appreciation.
In terms of strategic optionality, the analysts noted reports that the outfit was among the bidders for Coca Cola Beverages Africa.
Such a transaction would be double digit accretive for the firm's earnings per share. It would also speed-up its growth profile over the medium-term and top line growth, Morgan Stanley said.
Nonetheless, and on a more cautionary note, they added: "We take no view on the outcome of CCH's rumoured bid for CCBA or the specific timing, but highlight this as a potential upside risk to our price target."
There was also potential for a move to 'optimise' the balance sheet, resulting in cash returns and special dividends which had now been incorporated into its 'base' and 'bull' cases.
On the back of all of the above, the broker raised its target from 1,800p to 2,400p and lifted its recommendation from 'underweight' to 'equalweight'.
"Despite ~5% downside to our price target,given balanced risk-reward and uncertainty surrounding the potential acquisition of CCBA (CCH is under levered and managementhas not ruled out larger M&A)."
John Laing's growing pool of public-private partnerships and renewable energy investment opportunities should allow the company to grow 12% a year through to 2019, said HSBC as it restarted coverage of the stock with a 'buy' recommendation.
HSBC said Laing's investments opportunities are in low risk territories in Europe, North America and Australasia, "where there is political support for PPP and a rising weight of secondary investment funds that exceeds the flow of finished projects".
Opportunities in these territories are expected to structurally rise in both PPP and renewables, which the group can access through the network of offices, most recently expanded in the US.
"We see PPP investment as the most expedient means of realising infrastructure demand," while HSBC's climate change strategist, Ashim Paun, has set out expectations for the renewable energy provision to increase by multiples of up to 3.3 times current levels by 2030 in the group's key markets.
Analyst set a 340p share price target that projects a rise to a 20% premium to net asset value to reflect the growth prospects in both investment pools and the group's advantageous position and track record for realising surpluses.
After Johnson Matthey set out financial guidance at a capital markets day focused on growth opportunities ahead, analysts at Deutsche Bank and Credit Suisse were among those to hike their expectations for the chemicals group.
As well as highlighted its ability to grow earnings ahead of the market in the face of the changing nature of the global automotive industry, the announcement that caught investors and analysts' eye was a big investment in its battery material technology business and launch into battery cathode materials with a proprietary cathode material 'eLNO'.
"We acknowledge the earnings opportunity is still 4-5 years away. However, launching a viable cathode materials technology (potentially more cost efficient than NMC [nickel manganese cobalt], positive early feedback from customers) should improve investor sentiment towards JMAT," said Credit Suisse, ascribing zero value for this business in our valuation.
Credit Suisse increase its earnings forecasts by an average 1%, increase its target to 3,700p and retain its 'outperform' rating.
Deutsche Bank, which reiterated its 'buy' with a target of 3,600p, was impressed with management predictions that autocatalysts will grow for at least the next ten years driven by market share gains and growth in Asia, more than offsetting the decline in diesel market share in Europe and increasing electrification. | | | | To advertise in the Euro Markets Bulletin please contact advertise@advfn.com |
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