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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 stocks had reversed course to trade modestly higher by the close on Tuesday, helped by the pound, which slipped back after data revealed that UK construction activity last month declined for the first time in a year.
The FTSE 100 was up 0.39% to 7,468.11, while the pound was down 0.23% versus the dollar at 1.3244.
According to the Markit/CIPS survey of the construction industry, client confidence is "fragile" and a lack of new infrastructure projects is hitting new business volumes.
The construction purchasing managers' index for September fell to 48.1 from the previous month's 51.1, with the consensus forecast expecting a smaller drop to 50.8.
Following on from a softer manufacturing survey announced a day earlier, the weak construction data points to continued lacklustre UK economic growth for the third quarter.
Economists said recent construction PMI surveys indicated that the 0.5% quarter-on-quarter fall in the official measure of construction output in the second quarter will be repeated in the third.
Oanda analyst Craig Erlam said: "The pound is coming under pressure once again on Tuesday following another disappointing PMI survey, this time showing an unexpected contraction in the construction industry, the first since shortly after the Brexit vote. With both PMIs having disappointing so far this week, we're now looking towards the most important of the three, the services PMI, tomorrow to complete the hat-trick.
"The pound may remain volatile over the next couple of days as the Conservative party conference continues in Manchester. With a number of ministers due to speak today including Brexit secretary David Davis and Boris Johnson - a constant thorn in the side of Prime Minister Theresa May - it could be an interesting couple of days for the pound. Johnson's speech in particular will be of interest given his persistent undermining of May when it comes to Brexit and his clear desire to replace her before the next election."
In corporate news, Ferguson, formerly Wolseley, was in the black as it proposed a final dividend of 73.33p and announced a £500m share buyback, after a year of strong profits growth.
Bakery chain Greggs was also on the front foot after it reported solid third quarter growth, with total sales up 8.6% for the 13 weeks to 30 September, and company-managed shop like-for-like sales up 5.0%.
Electrocomponents gained ground after it reported a 13% rise in first-half revenues and upgraded its profit forecast.
Tesco also racked up solid gains ahead of its interim results on Wednesday amid hopes it will reinstate dividends.
Great Portland Estates edged higher after saying it signed 17 new lettings in the second quarter with a combined annual rent of £5.3m.
Airlines were in focus again, with beleaguered budget carrier Ryanair flying higher as it posted a 10% jump in traffic for September despite recent cancellations. Central and Eastern Europe-focused low-cost carrier Wizz Air was also higher as it reported a 26% jump in passenger numbers in September and said the load factor ticked higher. Both airlines put in a solid performance on Monday on the back of Monarch's collapse.
Shares in Coca?Cola HBC fell after it announced the passing of its chief executive Dimitris Lois.
Advertising giant WPP retreated after Morgan Stanley placed 22.5m shares in the company on behalf of Bain Capital at 1,350p.
Britvic finished higher after saying it plans to close its plant in Norwich and transfer production of Robinsons and Fruit Shoot to its manufacturing sites in East London, Leeds and Rugby, in a move that will affect 242 employees.
BAE Systems was weaker as Berenberg cut the stock to 'hold', but Anglo American was boosted by an upgrade to 'buy' at HSBC. |
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| | Market Movers
FTSE 100 (UKX) 7,468.11 0.39%
FTSE 250 (MCX) 20,035.35 0.39%
techMARK (TASX) 3,519.46 -0.10%
FTSE 100 - Risers
Ferguson (FERG) 5,045.00p 4.03%
Ashtead Group (AHT) 1,851.00p 3.29%
Sainsbury (J) (SBRY) 247.50p 3.25%
International Consolidated Airlines Group SA (CDI) (IAG) 622.50p 2.47%
Anglo American (AAL) 1,397.00p 2.46%
Standard Chartered (STAN) 771.30p 2.13%
Rolls-Royce Holdings (RR.) 921.00p 1.99%
Sage Group (SGE) 723.00p 1.83%
Tesco (TSCO) 190.60p 1.82%
Associated British Foods (ABF) 3,266.00p 1.81%
FTSE 100 - Fallers
Admiral Group (ADM) 1,784.00p -2.73%
WPP (WPP) 1,364.00p -2.08%
BAE Systems (BA.) 620.50p -1.67%
Shire Plc (SHP) 3,852.00p -1.46%
Coca-Cola HBC AG (CDI) (CCH) 2,519.00p -1.41%
BT Group (BT.A) 279.35p -1.34%
Pearson (PSON) 608.00p -1.22%
Micro Focus International (MCRO) 2,388.00p -1.12%
Centrica (CNA) 190.90p -1.09%
Prudential (PRU) 1,788.50p -1.08%
FTSE 250 - Risers
Provident Financial (PFG) 904.00p 7.62%
Electrocomponents (ECM) 673.00p 5.40%
Tullow Oil (TLW) 186.20p 3.79%
Coats Group (COA) 80.05p 3.56%
Evraz (EVR) 320.20p 3.09%
Wood Group (John) (WG.) 695.00p 2.96%
IP Group (IPO) 144.80p 2.91%
Wizz Air Holdings (WIZZ) 3,084.00p 2.80%
Amec Foster Wheeler (AMFW) 520.00p 2.77%
Ferrexpo (FXPO) 302.20p 2.75%
FTSE 250 - Fallers
Morgan Advanced Materials (MGAM) 306.70p -2.63%
Saga (SAGA) 196.00p -2.24%
Halfords Group (HFD) 343.40p -2.08%
Lancashire Holdings Limited (LRE) 658.00p -2.01%
Nostrum Oil & Gas (NOG) 404.00p -1.94%
Polypipe Group (PLP) 417.60p -1.88%
Just Group (JUST) 142.50p -1.59%
Euromoney Institutional Investor (ERM) 1,130.00p -1.57%
Auto Trader Group (AUTO) 389.40p -1.44%
Countryside Properties (CSP) 348.50p -1.41% |
| | 
Top of the stocks Number of Deals Bought Number of Deals Sold |
| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Stocks end session mostly higher, Spain lags Stocks on the Continent ended on a mixed note, even as Wall Street continued to push higher, amid renewed weakness in the periphery. As of the closing bell, the benchmark Stoxx 600 was higher by 0.15% or 0.59 points at 390.72, alongside a 0.02% gain in the Ibex 35 to 10,257.50, while Germany's Dax was higher by 0.58% or 73.79 points at 12,902.65. Acting as a backdrop, Spanish government bonds were again under pressure; although the selling pressure abated it was sufficient to push 10-year yields up by three basis points to 1.72%. In Spain, protesters in Barcelona demonstrated on Tuesday against police violence during the illegal referendum vote held on Sunday. Significantly however, overnight Spain's two biggest unions, Comisiones Obreras and UGT, said they would not participate in calls for strike action to support Catalan president Carles Puigdemont's independence drive. "Remarks by Puigdemont on 1 October leave no room for doubt that his only political aim is to unilaterally declare independence. Hence, UGT and CCOO want to clearly express that we do not support such a stance or strategy," the two unions said in a statement issued on Tuesday. They also called on the Catalan president not to act unilaterally. However, CCOO and UGT said they would support limited strike action on Tuesday, as backed by other smaller catalan unions, to protest against police "excesses". For their part, analysts at Credit Suisse said: "The Spanish government will need to show political skill, as failure could see it losing support from other regions and, as it is only a minority government, we cannot rule out the possibility of new general election. "The eventual resolution of the situation will also depend on the reaction of Catalonian leaders, who could: 1) decide to find a political solution, which could ease the situation; or 2) ignore the Spanish government and declare independence, which could lead to the use of Article 155." In economic news, factory gate prices in the Eurozone advanced by 0.3% month-on-month in August and 2.5% on the year (consensus: 2.3%), as energy costs spiked by 0.7% on the month, Eurostat reported. Meanwhile, the unemployment rate in Ireland was steady last month at 6.1%, with 133,200 people out of work, according to the Central Statistics Office. US vehicle sales figures for September were set for release later in the day, alongside a speech from Federal Reserve governor Jerome Powell later in the day. German logistics group Deutsche Post is planning to test deliveries with fuel-cell driven vans, Der Spiegel reported citing director Juergen Gerdes. In notable broker recommendations, JP Morgan lowered its view on Spanish energy outfit Iberdrola to 'neutral'. There is valuation support for the shares at around €14.3 but the list of headwinds they are facing has become too long, the analysts said, give the political uncertainty in Spain. Meanwhile, analysts at Credit Suisse downgraded their recommendation on stock of Ericsson from 'neutral' to 'underperform', slashing their target on the shares from 50 krona to 38 krona in the process. |
| | Asia Market Report | | Markets mixed, RBA upbeat on Australia outlook Markets in Asia were mixed on on Tuesday, amid more quiet trading as a number of exchanges remained closed for holidays.
In Japan, the Nikkei 225 was up 1.05% at 20,614.07, as the yen weakened 0.2% against the dollar, to last trade at JPY 113.
On the mainland, markets remained closed due to public holidays, as they were on Monday.
South Korean traders also got another day off, while the Hang Seng Index in Hong Kong was ahead 2.25% at 28,173.21, as it resumed trading after being closed on Monday.
Oil prices were lower during Asian trading, with Brent crude last down 0.09% at $56.07 per barrel and West Texas Intermediate falling 0.14% to $50.51.
In Australia, the S&P/ASX 200 closed down 0.49% at 5,701.44, after the Reserve Bank of Australia stood pat on interest rates, leaving the official cash rate at a record low 1.5% for the 14th month.
The central bank's governor Philip Lowe said it was expecting a pickup in economic growth going forward.
"The Australian economy expanded by 0.8% in the June quarter," his statement read.
"This outcome and other recent data are consistent with the [Reserve] Bank's expectation that growth in the Australian economy will gradually pick up over the coming year."
Lowe also noted that there had been "more consistent" indications in recent months that non-mining investment was growing, along with a "large pipeline" of infrastructure investment.
There were still risks to the sunburnt country's economy, however, with Lowe specifically fingering slow growth in real wages and concerning levels of household debt as putting a lid on spending.
The major banks were lower, with Australia and New Zealand Banking Group off 0.1%, Commonwealth Bank of Australia down 1.55%, National Australia Bank falling 0.69% and Westpac Banking Corporation 0.37% softer.
Across the Tasman Sea in New Zealand, the S&P/NZX 50 was up 0.06% at 7,933.42, with Metro Performance Glass rebounding 2% after hitting a record low in Monday's session.
Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.1% at AUD 1.2789 and the Kiwi retreating 0.24% to NZD 1.3929. |
| | Broker Tips | | BAE Systems: Berenberg downgrades to Hold with a target price of 600p. Carillion: Jefferies reiterates Hold with a target price of 45p.
Burberry: RBC reiterates Underperform with a target price of 1600p.
Sainsbury: Berenberg initiates on Buy with a target price of 300p.
Tesco: Berenberg initiates on Hold with a target price of 180p.
NMC Health: Jefferies reiterates Hold with a target price of 2810p.
EasyJet: JPMorgan reiterates Underweight with a target price of 1380p.
ITE Group: Canaccord reiterates Hold with a target price of 182p.
Hargreaves Lansdown: Numis reiterates Add with a target price of 1497p.
Greggs: Investec reiterates Buy with a target price of 1350p. | | | | To advertise in the Euro Markets Bulletin please contact advertise@advfn.com |
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