| | | | | | | The Top 10 Stocks for Q4 Our latest quarterly stocks report analyses the top and bottom 10 FTSE 100 performers of 2017 so far and looks at our Top Ten Stock Picks for Q4 including City broker consensus and their average target price for each stock. Losses can exceed deposits Download the report here | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London close: Stocks recover after morning swoon London stocks pared most their early losses by the close of trading on Friday, having retreated fairly sharply from a record close the previous day as the pound climbed on rumours about the Brexit negotiations.
The FTSE 100 was just under 21 points or 0.28% lower to 7,535.55 at the closing bell, while the less overseas-focused FTSE 250 index was in positive territory, up 0.04% at 20,259.51.
Sterling was extending its rebound from the start of the week, excepting a few lurches lower, after reports that the European Union might discuss offering the UK a two-year extension of its single market membership following Brexit.
The EU's chief Brexit negotiator, Michel Barnier, was intending to table this proposal at a meeting of EU ambassadors on Friday.
Recovering from a low of just over 1.30 at the end of last week, the pound was up 0.33% against the US dollar to 1.3305 and 0.21% higher versus the euro at 1.1234.
Activity was fairly quiet, said analyst Connor Campbell at Spreadex, due to the impending afternoon's big-ticket US economic calendar.
Acting as a backdrop, data out in the States in the afternoon revealed that core consumer prices fell short of economists' forecasts again in September, clocking in with a 1.8% gain year-on-year (consensus: 1.7%).
On a more upbeat note, the Deptarment of Commerce reported that US retail sales volumes increased by an outsized 1.6% over the month.
Commenting on Friday's data, David Madden at CMC Markets UK said: "The Nasdaq and S&P 500 have hit fresh record highs today, as US indices enjoy the repercussions of another down day for the US dollar.
"On a day where US data was always likely to take precedence, the disappointing inflation data has certainly done little to help interest rate hike expectations, with the dollar sinking in response. With core US inflation rising by only 0.1% over the month, the case for a US rate rise isn't necessarily boosted heavily by today's inflation data, yet with retail sales rising sharply in September, there is reason to believe the consumer-reliant US economy will continue to grow healthily in the coming months."
CORPORATE NEWS
Miners, led by Anglo American, Rio Tinto, Glencore and Rio Tinto, were among the strong performers in London thanks to the latest Chinese trade numbers revealing a pick-up in export growth from a 6.9% year-on-year clip in August to 9.0% for September, ahead of the 10.9% consensus. Similarly, import demand was stronger than anticipated, rising by 19.5% on the year versus a consensus of 16.5% and up from 14.4%.
"Today's figures suggest that not only has strong foreign demand continued to prop up manufacturing activity in China but domestic demand remains resilient too," said Julian Evans-Pritchard at Capital Economics.
Financial stocks were also prominent adorned in green, with upbeat trading news driving the gains.
After plunging, plummeting and plunking around 70% since its first of two profit warnings over the summer, Provident Financial was mounting a mini revival as it claimed to be staunching the blood flow at its doorstep lending business. For the full year the sub-prime lender still expects to make losses of £80-120m before exceptional costs from the home credit business but said organisation changes "have prevented any further deterioration in performance". Analysts said it had a lot to do before it was out of the woods.
Ashmore, the emerging markets-focused fund manager, was also on the front foot as it revealed AIM had increased $6.3bn to $65bn during the first quarter, including positive investment performance of $2.3bn and net inflows of $4.3bn.$65bn
Hedge fund manager Man Group was far from blue after reporting solid growth in its funds under management, with the total standing at $103.5bn as at 30 September compared to $95.9bn on 30 June. The FTSE 250 investment management business said net inflows in the third quarter totalled $2.8bn, which were driven by "strong inflows" into alternative risk premia and emerging market debt strategies.
Bottom of the ladder was engineer GKN as it warned full-year profits before tax will be only slightly higher on the prior year's as a result of two significant "commercially sensitive" external claims, together with continuing headwinds at its North American aerospace arm that are expected to drag on the group's trading margin.
TalkTalk led the fallers on the mid-cap the index after it received a downgrade to 'equal weight' from 'overweight' by analysts at Barclays, forecasting stalling earnings for the first half of the year.
Likewise, Renewi was following close behind after Credit Suisse downgraded its rating on the former Shanks Group, as the shares were felt to be pretty much up with events after the strong gains since its merger with Van Gansewinkel.
Renewi has delivered around a 59% total shareholder return since reports of the VGG merger in May 2016, with the deal completing in February this year and synergies of €40m from the merger now priced-in.
Aviva shares dipped even after it agreed to sell its entire 49% shareholding in its joint venture in Taiwan, First Aviva Life, though the transaction had a "negligible impact" on Aviva's IFRS net assets, Solvency II capital position and IFRS operating profit. |
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| Market Movers
FTSE 100 (UKX) 7,535.44 -0.28%
FTSE 250 (MCX) 20,259.51 0.04%
techMARK (TASX) 3,551.66 -0.35%
FTSE 100 - Risers
Rio Tinto (RIO) 3,688.50p 3.00%
Glencore (GLEN) 376.60p 2.35%
Johnson Matthey (JMAT) 3,475.00p 1.97%
Pearson (PSON) 634.00p 1.93%
Anglo American (AAL) 1,469.50p 1.80%
Kingfisher (KGF) 309.30p 1.78%
BHP Billiton (BLT) 1,398.00p 1.64%
Barratt Developments (BDEV) 681.00p 1.41%
Berkeley Group Holdings (The) (BKG) 3,861.00p 1.15%
Persimmon (PSN) 2,807.00p 0.97%
FTSE 100 - Fallers
GKN (GKN) 318.00p -9.86%
Centrica (CNA) 174.60p -2.46%
Smurfit Kappa Group (SKG) 2,180.00p -2.24%
Experian (EXPN) 1,536.00p -1.79%
Mondi (MNDI) 1,912.00p -1.70%
Standard Chartered (STAN) 746.10p -1.63%
Severn Trent (SVT) 2,104.00p -1.59%
Next (NXT) 4,911.00p -1.56%
Merlin Entertainments (MERL) 452.80p -1.50%
BT Group (BT.A) 274.85p -1.49%
FTSE 250 - Risers
Aldermore Group (ALD) 303.50p 18.55%
Provident Financial (PFG) 887.00p 12.42%
Ashmore Group (ASHM) 378.50p 7.16%
Brown (N.) Group (BWNG) 347.10p 4.96%
Virgin Money Holdings (UK) (VM.) 285.20p 4.09%
OneSavings Bank (OSB) 393.50p 3.85%
Ferrexpo (FXPO) 289.20p 3.80%
Man Group (EMG) 186.10p 3.39%
Tullow Oil (TLW) 190.00p 3.20%
Capita (CPI) 571.50p 2.88%
FTSE 250 - Fallers
TalkTalk Telecom Group (TALK) 204.90p -6.01%
Renewi (RWI) 99.00p -5.17%
CLS Holdings (CLI) 215.00p -3.17%
Senior (SNR) 282.30p -2.92%
Sophos Group (SOPH) 578.00p -2.61%
IWG (IWG) 324.10p -2.50%
Just Eat (JE.) 732.50p -2.20%
Coats Group (COA) 87.55p -1.86%
Inmarsat (ISAT) 635.00p -1.85%
UK Commercial Property Trust (UKCM) 87.25p -1.75% |
| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Stocks finish session with slight gains Stocks finished the day slightly higher amid reports that European Central Bank policymakers were closer to an agreement on how to go about tapering their asset purchases.
According to Reuters, which cited five people with direct knowledge of the discussion, the ECB's rate-setters were in broad agreement about extending their asset purchases - albeit at a slower pace - for another nine months starting from January 2018.
To be more precise, according to Bloomberg Frankfurt may cut the size of its quantitative easing by "at least" half, beginning from that same date.
Amid those reports, by the closing bell the benchmark Stoxx 600 was up by 0.29% or 1.14 points to 391.42, alongside a dip of 9.07 points for the French Cac-40 to 5,351.74, while the German Dax was up by 0.07% or 8.98 points to 12,991.87 and a 0.07% rise on the FTSE Mibtel to 22,413.54.
Meanwhile, in the euro area's largest economy, consumer prices were ahead by 1.8% in year-over-year terms last month, according to the German Ministry of Finance.
Yet at the 'core' level, the rate of price gains slipped from 1.6% to 1.5%.
Nonetheless, commenting on the data Claus Vistesen at Pantheon Macroeconomics said:"We think the underlying trend in the German core rate is up, in line with a tighter labour market and stronger GDP growth. We are looking for an increase to just under 2% in the next the six-to-nine months. In the short run, though, the core rate could well fall a bit further as net rent inflation eases after its recent jump."
In Italy, harmonised consumer prices advanced at a 1.3% clip year-on-year last month, ISTAT reported, confirming a preliminary estimate.
Deutsche Bank, Citigroup and HSBC acquiesced to a combined $132m fine to settle a class action lawsuit brought against them in the States for having allegedly manipulated LIBOR interest rates. |
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Top of the stocks Number of Deals Bought Number of Deals Sold |
| | US Market Report | | US open: Stocks rise after weak September CPI, Trump in the spotlight Stocks are holding on to slight gains heading into the weekend despite inflation data for last month that was shy of market estimates.
As of 1651 BST, the Dow Industrials was climbing 0.17% or 38.24 points to 22,879, with the S&P 500 up by 0.19% or 4.90 points to 2,556 alongside it and the Nasdaq Composite adding 0.31% or 20.91 points to trade at 6,612.
In parallel, front month West Texas Intermediate crude oil futures were trading higher by 1.56% to $51.41 a barrel on the NYMEX.
From a sector standpoint, the best performing areas of the market are: Industrial suppliers (2.28%), Iron & Steel (1.97%) and Industrial Metals (1.93%).
To take note of, investors were also waiting on president Donald Trump's decision, expected later in the day, on whether to certify or not that the 2015 Iranian nuclear arms control deal was in the best interests of the country.
Headline consumer prices in the US picked up to a 2.2% clip year-on-year in September, according to the Department of Labor, versus the 2.3% gain economists had penciled in on the back of the expected impact from hurricanes Harvey and Irma. That was despite a 6.1% surge in energy costs.
So-called 'core' inflation also misses projections for an advance of 1.8%, increasing instead at a 1.7% pace, the same as last month.
Friday's weak reading on inflation saw the yield on the benchmark 10-year US government bond was down by four basis points to 2.28%.
Commenting on the possible implications of Friday's CPI data, Craig Erlam, senior market analyst at Oanda, said: "Just as the Fed first went into quantitative easing blind, the return to normalisation has been far from conventional or straightforward and it seems policy makers are nearing an impasse, with a growing number becoming increasingly uncomfortable with raising interest rates.
"The problem with raising interest rates on the expectation that inflation will rise towards target due to an apparent tightness in the labour market, is that when the results take longer to materialise than first thought, policy makers will naturally doubt the models being used and whether more damage than good is being done."
Retail sales volumes on the other hand jumped 1.6% month-on-month in September to reach $483.9bn, according to the Department of Commerce, bang in line with forecasts.
Of interest, in remarks to Bloomberg TV, Boston Fed chief Eric Rosengren said that whomever took over at the helm of the US central bank, he or she would have to work with the rest of the Committee. So while change in the Federal Reserve's handling of monetary policy might happen, it would probably evolve relatively slowly.
In other Fedspeak, Dallas Fed boss Robert Kaplan reportedly said that inflationary pressures were building but were being offset.
Still on the economic calendar for later in the session, US central bank governor Jerome Powell was set to deliver a speech at 1800 BST.
On the corporate side of things, Bank of America posted weaker than expected top line growth for the third quarter due to a sharp fall in sales and trading revenues at its Global Markets arm. Yet shares in the lender advanced as the results showed that the remainder of the lender's business lines performed well. | | | | To advertise in the Euro Markets Bulletin please contact advertise@advfn.com |
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