Evening Euro Markets Bulletin

ADVFN III Evening Euro Markets Bulletin Daily world financial news Wednesday, 01 November 2017 17:17:09 Monitor Quote Charts News CFD's Compare Brokers Free BB   Who pockets your portfolio's profits? You or your broker? Make sure you’re not paying too much for your portfolio’s account admin by choosing fixed over percentage-based fees. Capital at risk. Read more London Market Report FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts London close: FTSE despite positive manufacturing, BoE in focus for possible rate hike London stocks closed marginally lower on Wednesday even as the pound fell despite better-than-expected manufacturing data, which underpinned expectations of a rate hike tomorrow by the Bank of England. The top flight index slipped 0.07% or 5.12 points to 7,487.96, while the pound was down 0.13% versus the dollar to 1.3264, having hit 1.3321 after the manufacturing data came out, and 0.05% firmer against the euro at 1.1411, albeit down from an intraday high of 1.1450. Spreadex analyst Connor Campbell said: "October's PMI came in at 56.3 against the 55.8 forecast and the (revised) 56.0 seen in September. And though this didn't cause anything resembling a sterling surge, it did allow the currency to maintain its early gains." "It could be argued that this manufacturing beat gives the Bank of England hawks a bit more ammo heading into Thursday's rate vote," he added. With a PMI above 50 signalling growth, the manufacturing sector has been on the rise for 15 months in a row, according to Markit's figures. Economists said the survey will reassure the Bank of England that the economy is coping relatively well with the prospect of imminently higher interest rates. In a note to clients earlier, Craig Erlam at Oanda chipped in, "A growing number of policy makers now appear to be of the belief that last year's rate cut is no longer necessary and a return to the previous lower bound is warranted," adding, "Markets are heavily pricing in a rate hike tomorrow which may limit any upside in the pound in relation to this, with the accompanying commentary probably more important. With a split among policy makers being clear from recent commentary, a failure to hike tomorrow could trigger a sharp decline in the pound." Total new order intakes rose at a substantial rate during October, according to the survey compiler, bouncing back from a weak prior month to put the manufacturing sector on a solid footing for at the start of the fourth quarter of the year. In corporate news, Paddy Power Betfair rallied after it said trading was good in the third quarter, prompting the bookmaker to make a small upgrade to its annual profit guidance. AstraZeneca was in the black after mixed news. The pharmaceuticals giant said the US Food and Drug Administration has granted accelerated approval to Calquence (acalabrutinib) - a kinase inhibitor indicated for the treatment of adult patients with mantle cell lymphoma who have received at least one prior therapy. However, the company also announced disappointing results for an asthma therapy it has been developing. Irish packaging company Smurfit Kappa advanced as it posted a rise in third-quarter revenue and announced acquisitions in Greece and Russia to expand the group's footprint. Indivior surged after the company's monthly treatment of opioid use disorder was recommended for approval by an advisory body to the US drug regulator. Going the other way, Next was under the cosh after saying it continued to sustain declines in full price sales from its shops in the third quarter but thanks to strong online and catalogue growth the clothing retailer marched on towards its full year targets. Marks & Spencer and Primark owner Associated British Foods were also under pressure. Standard Chartered was in the red after its posted adjusted pre-tax profit of $814m for the third quarter and operating income of $3.59bn, versus estimates of $3.64bn. Retirement savings specialist Just Group ticked higher despite posting a drop in total sales for the third quarter. In broker note action, Pagegroup was boosted by an upgrade to 'buy' at Panmure Gordon, while G4S gained as Jefferies bumped it up to 'buy' and InterContinental Hotels was lifted by an upgrade to 'outperform' at Credit Suisse. Debenhams was hit by a downgrade to 'sell' at Liberum. 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Market Movers FTSE 100 (UKX) 7,487.96 -0.07% FTSE 250 (MCX) 20,350.84 0.61% techMARK (TASX) 3,543.70 0.49% FTSE 100 - Risers Paddy Power Betfair (PPB) 8,050.00p 4.48% Glencore (GLEN) 375.55p 3.46% Anglo American (AAL) 1,468.50p 3.42% BHP Billiton (BLT) 1,407.00p 3.27% Rio Tinto (RIO) 3,652.50p 2.93% Smurfit Kappa Group (SKG) 2,308.00p 2.85% AstraZeneca (AZN) 5,155.00p 2.44% Persimmon (PSN) 2,859.00p 2.03% Antofagasta (ANTO) 972.00p 1.83% Aviva (AV.) 514.00p 1.78% FTSE 100 - Fallers Next (NXT) 4,471.00p -9.14% Standard Chartered (STAN) 705.00p -6.05% Marks & Spencer Group (MKS) 329.60p -4.21% Admiral Group (ADM) 1,860.00p -3.33% Smith & Nephew (SN.) 1,378.00p -3.03% Sainsbury (J) (SBRY) 236.60p -2.43% Centrica (CNA) 165.80p -2.36% Reckitt Benckiser Group (RB.) 6,584.00p -2.24% Associated British Foods (ABF) 3,259.00p -2.19% Convatec Group (CTEC) 191.80p -2.09% FTSE 250 - Risers Indivior (INDV) 400.30p 7.72% Hochschild Mining (HOC) 232.70p 5.58% Elementis (ELM) 297.20p 4.54% Drax Group (DRX) 289.80p 4.32% Vedanta Resources (VED) 922.50p 3.89% Ferrexpo (FXPO) 263.70p 3.74% Polymetal International (POLY) 906.50p 3.66% Halma (HLMA) 1,223.00p 3.47% Cairn Energy (CNE) 218.60p 3.41% Bovis Homes Group (BVS) 1,213.00p 3.15% FTSE 250 - Fallers Card Factory (CARD) 304.40p -3.03% Ocado Group (OCDO) 279.90p -2.71% Dixons Carphone (DC.) 169.00p -2.54% Restaurant Group (RTN) 297.10p -2.17% Dunelm Group (DNLM) 717.00p -2.05% Hikma Pharmaceuticals (HIK) 1,144.00p -1.72% RPC Group (RPC) 927.50p -1.59% Serco Group (SRP) 114.80p -1.54% Intu Properties (INTU) 213.20p -1.30% 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 US Market Report US open: Buying momentum spills over into November Wall Street has begun the new month with fresh gains ahead of the US central bank's policy announcement later in the day and various readings on the economy that some analysts said pointed to GDP growth in the vicinity of 3% in the final stretch of 2017. At 1507 GMT, the Dow Jones Industrial Average was up by 0.38% or 89.55 points at 23.465.38, alonsgide a 0.32% gain for the S&P 500 to 2,583.49 and an advance of 0.10% for the Nasdaq Composite to 6,733.58. From a sector standpoint, the biggest gains were to be seen in Gambling (3.24%), Industrial metals (2.84%) and Distillers (2.74%). In parallel, the yield on the benchmark 10-year US Treasury note was off by two basis points to 2.36%. The Fed interest rate decision was due at 1800 GMT, with no change expected. Market participants would also be turning their attention to President Trump's announcement, due Thursday, about who will replace Janet Yellen as the Fed Chair following reports that he is leaning towards Fed Governor Jerome Powell. Konstantinos Anthis at ADS Securities said: "Given that there will be no changes in policy today the focus will be on the forward guidance the Fed decides to provide investors with and with no press conference scheduled for November's meeting market participants will be eager to read what the accompanying statement has to offer. "The dollar has been on the rise recently and even though it pulled back at the start of the week the bias remains to the upside. Should the Fed's statement point towards further tightening this year and more hikes in 2018 the dollar should extend its gains albeit at a moderate pace as traders will want to wait until Friday's non-farm payrolls report to avoid any unpleasant surprises." Investors were also be keeping an eye out for Trump's tax reform bill, which was meant to be released on Wednesday but has been pushed back a day to resolve some issues. On the economic front, the widely-followed ISM manufacturing sector purchasing managers' index slipped a tad more than expected in October, printing at 58.7, which was down from 60.8 for the previous month (consensus: 59.1). Such a reading, Mickey Levy and Roiana Reid at Berenberg Capital Markets said, was consistent with 3% GDP growth in the last quarter of the year. Despite the slight miss, it was also at the 82bn percentile of all historical readings. Also to take note of, according to ADP/Moody's private sector payrolls rose by 235,000 in October (consensus: 190,000) helped in part by reconstruction efforts in the wake of the recent hurricanes on the Gulf Coast. In corporate news, auto manufacturers were in focus, with GM having posted a 2% drop in sales to 252,813 units alongside 13% fewer vehicles sold by Fiat, although Ford reported a 6.4% increase. Sector wide estimates for the month of October were due out later on Wednesday. Shares of US Steel were also in the spotlight, jumping in the wake of better-than-expected quarterly numbers out overnight which helped to quell concerns around the company on the back of rival AK Steel's latest set of figures published the day before. In particular, market participants took note of stronger than forecast guidance. Meanwhile, in the background, investors were eyeing the first move by the nation's retailers to position ahead of Black Friday, as the day after the Thanksgiving holiday - which 'officially' marks the start of the holiday shopping season - is called with Amazon.com and E-Bay unveiling their plans for this critical quarter. Stock of Clorox was also in the green after its fiscal first-quarter earnings beat analysts' estimates, while Estee Lauder shares were rocketing as the cosmetics maker's first-quarter financials surpassed analysts' forecasts. Allergan was holding higher too after the biotech concern posted third-quarter adjusted earnings per share of $4.15 versus consensus expectations of $4.04, while Molson Coors was in focus as the brewer reported third-quarter adjusted EPS in line with expectations and said full-year targets are unchanged. Still to come, earnings were due from Facebook and Tesla after the close, along with Kraft, Heinz and Qualcomm. Dow Jones - Risers Cisco Systems Inc. (CSCO) $34.74 1.71% Pfizer Inc. (PFE) $35.66 1.71% Walt Disney Co. (DIS) $99.32 1.54% Intel Corp. (INTC) $46.13 1.41% Merck & Co. Inc. (MRK) $55.54 0.81% Johnson & Johnson (JNJ) $140.48 0.77% Goldman Sachs Group Inc. (GS) $244.31 0.75% Wal-Mart Stores Inc. (WMT) $87.96 0.74% Travelers Company Inc. (TRV) $133.39 0.71% Visa Inc. (V) $110.67 0.63% Dow Jones - Fallers Apple Inc. (AAPL) $167.19 -1.09% General Electric Co. (GE) $20.11 -0.26% Boeing Co. (BA) $257.32 -0.26% Verizon Communications Inc. (VZ) $47.78 -0.19% Nike Inc. (NKE) $54.89 -0.18% Microsoft Corp. (MSFT) $83.15 -0.03% E.I. du Pont de Nemours and Co. (DD) $83.93 0.00% Unitedhealth Group Inc. (UNH) $210.26 0.02% International Business Machines Corp. (IBM) $154.13 0.05% Coca-Cola Co. (KO) $46.00 0.05% S&P 500 - Risers Estee Lauder Co. Inc. (EL) $122.17 9.26% United States Steel Corp. (X) $27.41 8.25% Verisk Analytics Inc. (VRSK) $90.47 6.37% Devon Energy Corp. (DVN) $39.09 5.93% Garmin Ltd. (GRMN) $59.44 5.00% Freeport-McMoRan Inc (FCX) $14.56 4.15% Mylan Inc. (MYL) $37.09 3.86% Southwestern Energy Co. (SWN) $5.76 3.69% Marathon Oil Corp. (MRO) $14.73 3.55% Murphy Oil Corp. (MUR) $27.58 3.10% S&P 500 - Fallers Frontier Communications Co. (FTR) $9.39 -22.46% Pitney Bowes Inc. (PBI) $11.48 -16.45% CenturyLink Inc. (CTL) $17.83 -6.11% Electronic Arts Inc. (EA) $113.05 -5.48% Cognizant Technology Solutions Corp. (CTSH) $71.84 -5.06% Zimmer Biomet Holdings Inc (ZBH) $115.94 -4.67% Under Armour Inc. Class A (UAA) $12.05 -3.75% Fiserv Inc. (FISV) $124.60 -3.73% Cerner Corp. (CERN) $65.01 -3.72% Hanesbrands Inc. (HBI) $21.75 -3.33% Nasdaq 100 - Risers Verisk Analytics Inc. (VRSK) $90.47 6.37% Mylan Inc. (MYL) $37.09 3.86% Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $208.68 3.41% Viacom Inc. Class B (VIAB) $24.73 2.91% Wynn Resorts Ltd. (WYNN) $151.56 2.76% Liberty Global Plc Lilac Class A (LILA) $22.29 2.62% Biogen Inc (BIIB) $319.08 2.38% QUALCOMM Inc. (QCOM) $52.22 2.37% Liberty Global Plc Lilac Class C (LILAK) $22.51 2.32% Liberty Global plc Series A (LBTYA) $31.48 2.04% Nasdaq 100 - Fallers Check Point Software Technologies Ltd. (CHKP) $105.27 -10.57% Electronic Arts Inc. (EA) $113.05 -5.48% Cognizant Technology Solutions Corp. (CTSH) $71.84 -5.06% Fiserv Inc. (FISV) $124.60 -3.73% Cerner Corp. (CERN) $65.01 -3.72% Tesla Inc (TSLA) $322.26 -2.80% NetEase Inc. Ads (NTES) $275.56 -2.26% Alexion Pharmaceuticals Inc. (ALXN) $117.07 -2.16% Idexx Laboratories Inc. (IDXX) $162.63 -2.13% Prime Centrum Specialists in UK Residential Property Investment with High Income 68% Return on Investment with UK Buy-to-Let Property  Invest From £119,950 7% NET income Assured for 3 Years 15% Discount Below Market Comparables Request More Information Broker Tips Broker tips: Debenhams, G4S, IHG Debenhams was under the cosh on Wednesday as Liberum downgraded its stance on the department store chain to 'sell' from 'hold' and cut the price target to 40p from 58p as it revisited the investment case following the group's prelims. "Looking past the low current rating (CY18E PER 8.4x), we focus on the fundamentals, which do not enthuse us," it said. The brokerage argued that ongoing structural challenges, a soft consumer environment, rising costs and increasing capex demands make for a difficult outlook. Liberum acknowledged management's ambition and the progress made so far with the 'Debenhams Redesigned' strategy. However, it highlighted long-term structural challenges which it reckons will demand increasing investment just to maintain - at best - market position. "Mid-market department stores are being squeezed by more premium players, specialists and online. We acknowledge the progress under the new CEO, but turning 13m sq. ft. into 'destination' space is tough. Material closures/right-sizing will take time." Security services company G4S was on the front foot on Wednesday as Jefferies upgraded the stock to 'buy' from 'hold' and lifted the price target to 330p from 270p. It noted that the shares have underperformed on the back of disappointing second-quarter organic revenue growth, but said momentum should recover in the first half of 2018, helped by improving emerging markets and US wage inflation. "A new Cash360 contract should contribute 1% to organic revenue growth from Q4; emerging markets momentum should improve over the next 12 months; US wage rate inflation has accelerated sharply; and the bid pipeline continues to edge higher," it said. Jefferies pointed out that according to the Bureau of Labor Statistics, security wage inflation has accelerated sharply to 10-15%. Top of the stocks Number of Deals Bought Place EPIC Equity name % 1 GSK GlaxoSmithKline plc 6.09 2 GGP Greatland Gold Plc 3.69 3 BARC Barclays plc 2.32 4 LLOY Lloyds Banking Group plc 2.23 5 VAST Vast Resources plc 1.79 6 SXX Sirius Minerals plc 1.52 7 UKOG UK Oil & Gas Investments plc 1.14 8 BT.A BT Group plc 1.08 9 SMT Scottish Mortgage Investment Trust 1.04 10 ULVR Unilever plc 0.93 Number of Deals Sold Place EPIC Equity name % 1 LLOY Lloyds Banking Group plc 3.23 2 GGP Greatland Gold Plc 2.37 3 VAST Vast Resources plc 1.43 4 SXX Sirius Minerals plc 1.42 5 UKOG UK Oil & Gas Investments plc 1.06 6 GSK GlaxoSmithKline plc 0.93 7 GLEN Glencore plc 0.87 8 BDEV Barratt Developments plc 0.86 9 BOO Boohoo.com 0.86 10 BP. BP Plc 0.86   To advertise in the Euro Markets Bulletin please contact advertise@advfn.com     To unsubscribe from this news bulletin or edit your mailing list settings click here. 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