| | | | | | | 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 open: EU deal report, central bank policy in focus Sterling is extending its rebound from the day before after a report from Handelsblatt that the European Union might discuss offering the UK a two-year extension of its single market membership following Brexit, which in turn has served to knock the Footsie off its perch.
According to the German daily, the EU's top Brexit negotiator, Michel Barnier, was to table that proposal at a meeting of EU ambassadors on Friday - although some analysts argued that there was little new in that piece of information.
As of 0831 BST, the Footsie was trading down by 0.41% or 30.75 points at 7,525.49, alongside gains of 0.4% for the pound in its cross against the US dollar to 1.3316.
On Thursday, the top flight index had notched up a fresh record high, even as traders waited on US consumer price data to be released also on Friday which might help consolidate expectations for a US central bank interest rate hike in December.
"Yesterday's PPI data for September would also appear to suggest that price pressures are picking up and if today's headline CPI number follows suit, then it would be a major surprise if US policymakers were to backtrack on a December rate rise now. It is expected that September CPI will see an uptick from 1.9% to 2.3%.
"For the moment markets are pricing a 76% probability of a move in December, they just aren't so sure about how many are coming in 2018 and that's the point," said CMC Markets UK's chief market analyst, Michael Hewson.
The CPI figures would arrive amid a debate around the most probable policy path for the US central bank in 2018, with some - albeit admittedly only a few - economists of the belief that central bankers around the world may need to revisit their models in order to better take into account globalisation's impact on levels of domestic inflation, among other factors.
Acting as a backdrop, the latest Chinese trade numbers published overnight revealed a pick-up in export growth from a 6.9% year-on-year clip in August to 9.0% for September (consensus: 10.9%). Similarly, import demand was stronger than anticipated, rising by 19.5% on the year (consensus: 16.5%), 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.
Charges to weigh on GKN's bottom line
GKN guided towards full-year profits before tax just slightly ahead of their 2016 level as a result of two significant "commercially sensitive" external claims and continuing headwinds at GKN Aerospace North America, with the latter expected to drag on the group's trading margin. Those two claims were seen resulting in a charge of roughly £40m which would be incurred in the last three months of 2017. Third quarter trading at its aerospace arm was described as "disappointing". Over at its Driveline unit on the other hand, sales were "well ahead" of global industrial production rates which were up 2%. Full-year margins at Driveline were now seen at a similar level as in 2016 due to one of the above claims.
Provident Financial has begun to staunch the blood flow at its doorstep lending business after two profit warnings earlier this year. For the full year the sub-prime lender still expects to make losses of £80-120m before exceptional costs, but said the changes made at its Home Credit business "have prevented any further deterioration in performance", with collections in September recovering to 65% from the 57% in August.
Aviva agreed to sell its entire 49% shareholding in its joint venture in Taiwan, First Aviva Life, to Aviva's joint venture partner First Financial Holding Company, it announced on Friday. The FTSE 100 insurance company said that, following a strategic review of Aviva Taiwan, it concluded that the business was not central to the group's strategy to focus on markets where it can achieve scale and profitability or have a distinct competitive advantage. It said the transaction had a "negligible impact" on Aviva's IFRS net assets, Solvency II capital position and IFRS operating profit.
Man Group reported solid growth in its funds under management on Friday, with the total standing at $103.5bn as at 30 September compared to $95.9bn on 30 June, and the board claiming rises of 28% in the year to date. 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. Positive investment movement of $3.3bn was reported in the period. |
| | 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…
Click here for your Complimentary Guide |
| Market Movers
FTSE 100 (UKX) 7,529.05 -0.36%
FTSE 250 (MCX) 20,235.83 -0.08%
techMARK (TASX) 3,553.52 -0.30%
FTSE 100 - Risers
Pearson (PSON) 630.50p 1.37%
G4S (GFS) 282.20p 1.22%
Rio Tinto (RIO) 3,621.00p 1.12%
Tesco (TSCO) 186.80p 0.65%
Convatec Group (CTEC) 282.40p 0.53%
Marks & Spencer Group (MKS) 351.50p 0.43%
Vodafone Group (VOD) 217.15p 0.37%
Sainsbury (J) (SBRY) 240.80p 0.33%
Babcock International Group (BAB) 825.00p 0.30%
Croda International (CRDA) 3,940.00p 0.28%
FTSE 100 - Fallers
GKN (GKN) 334.70p -5.13%
Experian (EXPN) 1,536.00p -1.79%
Relx plc (REL) 1,673.00p -1.47%
easyJet (EZJ) 1,302.00p -1.44%
Mondi (MNDI) 1,921.00p -1.23%
Standard Chartered (STAN) 750.40p -1.07%
Scottish Mortgage Inv Trust (SMT) 434.20p -1.05%
TUI AG Reg Shs (DI) (TUI) 1,330.00p -1.04%
Burberry Group (BRBY) 1,877.00p -1.00%
RSA Insurance Group (RSA) 610.50p -0.97%
FTSE 250 - Risers
Provident Financial (PFG) 899.50p 14.01%
Ashmore Group (ASHM) 384.80p 8.95%
Man Group (EMG) 184.70p 2.61%
Tullow Oil (TLW) 188.70p 2.50%
Aldermore Group (ALD) 260.30p 1.68%
Brown (N.) Group (BWNG) 336.20p 1.66%
SIG (SHI) 179.50p 1.41%
Kaz Minerals (KAZ) 857.50p 1.36%
Greencore Group (GNC) 189.70p 1.34%
Woodford Patient Capital Trust (WPCT) 92.40p 1.20%
FTSE 250 - Fallers
Renewi (RWI) 96.25p -7.81%
TalkTalk Telecom Group (TALK) 204.80p -6.06%
Senior (SNR) 275.90p -5.12%
Stagecoach Group (SGC) 159.10p -1.67%
JPMorgan American Inv Trust (JAM) 386.00p -1.48%
FirstGroup (FGP) 107.40p -1.47%
Intermediate Capital Group (ICP) 956.00p -1.39%
Wood Group (John) (WG.) 712.00p -1.39%
Inmarsat (ISAT) 639.00p -1.24% |
| | UK Event Calendar | | Friday October 13
INTERIM DIVIDEND PAYMENT DATE
Alpha Fx Group , Communisis, Computacenter, esure Group, Franchise Brands, G4S, Harworth Group, Highcroft Investment, Highland Gold Mining Ltd., Intertek Group, JPMorgan European Inv Trust Growth Shares, PPHE Hotel Group Ltd, Robert Walters, RPS Group, RSA Insurance Group, SafeCharge International Group Limited (DI), Sanne Group, Total Produce, XLMedia
QUARTERLY PAYMENT DATE
Regional REIT Limited, Schlumberger Ltd.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (EU) (11:00)
Business Inventories (US) (15:00)
Consumer Price Index (GER) (07:00)
Consumer Price Index (US) (14:30)
Retail Sales (US) (13:30)
GMS
Papua Mining
IMSS
Provident Financial
SPECIAL DIVIDEND PAYMENT DATE
esure Group
AGMS
Papua Mining
TRADING ANNOUNCEMENTS
Hargreaves Lansdown
FINAL DIVIDEND PAYMENT DATE
Sophos Group , Trifast |
| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: ECB may cut QE purchases by at least half, report says Stocks have begun the session in a mixed fashion amid reports that European Central Bank policymakers are closer to an agreement on how to go about tapering its asset purchases.
According to Reuters, which cited five people with direct knowledge of the discussion, the ECB's rate-setters are 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 QE purchases may be cut by "at least" half beginning from that same date.
Amid those reports, as of 0923 BST the benchmark Stoxx 600 was up by 1.06 points or 0.27% to 391.34, alongside a minimal 1.97 point advance on the German Dax to 12,984.86 and a 0.17% rise on the FTSE Mibtel to 22,437.
Acting as a backdrop, investors were waiting on a barrage of US data scheduled for release later in the day, including September data on consumer prices and retail sales.
The former, in particular, would be watched particularly closely, given recent low readings on the US personal consumption expenditures price deflator, the Fed's favoured inflation gauge.
Those CPI figures would arrive amid a debate around the most probable policy path for the US central bank in 2018, with some - albeit admittedly only a few - economists of the belief that central bankers around the world may need to revisit their models to account for globalisation, among other factors.
"Yesterday's PPI data for September would also appear to suggest that price pressures are picking up and if today's headline CPI number follows suit, then it would be a major surprise if US policymakers were to backtrack on a December rate rise now. It is expected that September CPI will see an uptick from 1.9% to 2.3%.
"For the moment markets are pricing a 76% probability of a move in December, they just aren't so sure about how many are coming in 2018 and that's the point," said CMC Markets UK's chief market analyst, Michael Hewson.
Meanwhile, in the euro area's largest economy, consumer prices were ahead by 1.8% in September in year-over-year terms, according to the 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.
Spain's ACS will table an offer next week, approximately half in shares and half in stock, for toll road firm Abertis, Reuters said in a sourced report. |
| | 
Top of the stocks Number of Deals Bought Number of Deals Sold |
| | US Market Report | | US close: Markets finish softer as bank stocks fall flat Wall Street finished on a downbeat note on Thursday, as traders took some money off the table following the latest earnings updates out of Citigroup and JPMorgan and somewhat dovish remarks by a trio of top Fed officials.
The Dow Jones Industrial Average lost 0.14% to 22,841.01, the S&P 500 was off 0.17% at 2,550.93 and the Nasdaq 100 was 0.19% softer at 6,069.99.
Weighing on lenders was US Federal Reserve governor Lael Brainard who, speaking at the annual meeting of the International Monetary Fund and World Bank, said that US inflationary headwinds now appeared to be "a little more" structural than cyclical.
She also noted that a persistently low neutral interest rate had "big implications".
Another Fed governor, Jerome Powell, indicated that policy tightening should remain gradual so long as the economy evolved as anticipated.
Overnight on Wednesday, the minutes of the US central bank's last policy meeting had indicated that "many participants" had shown concern that low inflation readings might not only reflect transitory factors.
However, some market observers remained wary of lofty valuations even for benchmarks such as the S&P 500.
In economic news, initial jobless claims in the US fell by 15,000 over the week ending on 7 October to reach 243,000, against consensus forecasts for 250,000, according to the Bureau of Labor Statistics.
Wholesale prices advanced at a 0.4% month-on-month and 2.6% year-on-year clip last month, as forecast by economists.
On the corporate front, shares in Citigroup lost ground, falling 3.42% despite reporting third quarter earnings per share of $1.42 against forecasts for $1.32, on the back of $18.2bn in revenues, well ahead of forecasts for $17.9bn.
JPMorgan Chase & Co stock was also trading on the back foot, finishing down 0.75% even after posted better than expected earnings per share for the latest three-month stretch, albeit alongside falling market revenues and higher credit loss provisions.
Dow Jones - Risers
Caterpillar Inc. (CAT) $129.99 1.08%
Microsoft Corp. (MSFT) $77.12 0.92%
United Technologies Corp. (UTX) $118.84 0.91%
Procter & Gamble Co. (PG) $92.16 0.75%
3M Co. (MMM) $217.54 0.50%
McDonald's Corp. (MCD) $163.85 0.47%
Wal-Mart Stores Inc. (WMT) $86.11 0.43%
Travelers Company Inc. (TRV) $126.00 0.27%
Boeing Co. (BA) $261.92 0.18%
Johnson & Johnson (JNJ) $136.83 0.13%
Dow Jones - Fallers
Walt Disney Co. (DIS) $96.93 -1.64%
Unitedhealth Group Inc. (UNH) $192.92 -1.20%
Goldman Sachs Group Inc. (GS) $239.79 -1.07%
Verizon Communications Inc. (VZ) $48.33 -1.04%
Cisco Systems Inc. (CSCO) $33.26 -0.98%
JP Morgan Chase & Co. (JPM) $95.99 -0.88%
International Business Machines Corp. (IBM) $146.97 -0.40%
Home Depot Inc. (HD) $164.60 -0.40%
Nike Inc. (NKE) $50.80 -0.39%
American Express Co. (AXP) $91.61 -0.38%
S&P 500 - Risers
Host Hotels & Resorts Inc. (HST) $19.40 3.91%
XL Group Ltd (XL) $40.67 3.35%
Fastenal Co. (FAST) $45.94 3.21%
W.W. Grainger Inc. (GWW) $177.55 2.93%
CF Industries Holdings Inc. (CF) $35.82 2.66%
J.B. Hunt Transport Services Inc. (JBHT) $108.35 2.53%
ConAgra Brands Inc (CAG) $34.59 2.37%
Iron Mountain Inc (New) (IRM) $39.81 2.23%
FirstEnergy Corp. (FE) $32.45 1.95%
Cabot Oil & Gas Corp. (COG) $26.00 1.92%
S&P 500 - Fallers
Endo International Plc (ENDP) $8.24 -8.24%
PG&E Corp. (PCG) $64.50 -6.72%
AT&T Inc. (T) $35.86 -6.10%
Juniper Networks Inc. (JNPR) $25.48 -5.17%
Tenet Healthcare Corp. (THC) $13.87 -4.41%
Gap Inc. (GPS) $27.21 -4.26%
Comcast Corp. (CMCSA) $35.95 -3.93%
Signet Jewelers Ltd (SIG) $61.59 -3.90%
Discovery Communications Inc. Class C (DISCK) $18.23 -3.70%
Discovery Communications Inc. Class A (DISCA) $19.28 -3.60%
Nasdaq 100 - Risers
Fastenal Co. (FAST) $45.94 3.21%
J.B. Hunt Transport Services Inc. (JBHT) $108.35 2.53%
Idexx Laboratories Inc. (IDXX) $161.76 2.33%
Dentsply International Inc. (XRAY) $58.41 1.90%
Paypal Holdings Inc (PYPL) $68.86 1.59%
Intuit Inc. (INTU) $145.86 1.53%
Paychex Inc. (PAYX) $64.42 1.48%
Activision Blizzard Inc. (ATVI) $62.05 1.12%
NetEase Inc. Ads (NTES) $271.76 1.10%
Incyte Corp. (INCY) $112.73 0.99%
Nasdaq 100 - Fallers
Mercadolibre Inc. (MELI) $246.26 -10.28%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $190.16 -8.53%
Dish Network Corp. (DISH) $49.03 -5.07%
Comcast Corp. (CMCSA) $35.95 -3.93%
Discovery Communications Inc. Class C (DISCK) $18.23 -3.70%
Discovery Communications Inc. Class A (DISCA) $19.28 -3.60%
JD.com, Inc. (JD) $38.51 -2.80%
Charter Communications Inc. (CHTR) $355.71 -2.58%
Viacom Inc. Class B (VIAB) $24.57 -2.54% | | | | To advertise in the Euro Markets Bulletin please contact advertise@advfn.com |
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