Evening Euro Markets Bulletin

ADVFN III Evening Euro Markets Bulletin Daily world financial news Monday, 20 November 2017 18:59:13 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: Homebuilders Jump Ahead Of Budget Shares reversed early losses to close higher on Monday amid a solid performance from housebuilders, as investors digested German Chancellor Angela Merkel's failed attempt to craft a new government coalition. The FTSE 100 finished up by 0.12% to 7,389.46, while the pound had gained 0.16% versus the dollar at 1.3233 and 0.53% against the euro to trade at 1.1275. At the weekend, Germany's Free Democratic Party dropped out of talks to build a new government coalition following four weeks of talks. In response, in remarks to TV broadcaster ARD Merkel voiced skepticism that a minority government would provide the necessary stability. If unable to obtain a parliamentary majority - including via a 'grand coalition' with the Social Democrats - then, "new elections are the better way," Merkel said. That led IG analyst Joshua Mahony to remark "The situation in Germany will be closely watched in Whitehall. While the UK had hoped that business-minded Germany would help enable a beneficial deal for all in Brexit talks, a weaker and less decisive Angela Merkel in the coming months provides yet another hurdle for the UK Brexit story." On the corporate front, Housebuilders Barratt Developments, Persimmon and Taylor Wimpey were all higher, boosted by reports that Chancellor Philip Hammond was set to announce in his Budget on Wednesday plans to help the government build 300,000 new homes a year and a cut to stamp duty for first-time buyers. IG's Mahony added: "The FTSE 100 is being boosted by the house builders, with Wednesday's budget expected to be dominated by the government’s attempts to fix a housing market that has too few new houses being built. "With Labour holding the vote for younger parts of the country, Wednesday’s budget is likely to focus on getting more first time buyers onto the property ladder. This focus on the housing sector should see the government ensure a ramp up in the number of houses being built each year." Outsourcer Mitie traded higher, recovering from earlier losses after it posted a drop in profit for the first half despite a rise in revenue, as it continues to invest in its cost-saving programme. The company also announced that the Financial Reporting Council was opening an investigation under its accounting scheme in relation to the preparation and approval of its accounts for the year ended 31 March 2016. Shares in William Hill slipped after the bookmaker said it was on track to deliver on its 2018 expectations. ZPG racked up healthy gains after RBC Capital Markets initiated coverage of the stock at 'outperform', while Thomas Cook was up after HSBC started coverage of the stock at 'buy'. On the downside, Nex Group retreated after it reported a fall in first-half profit amid challenging market conditions. Spire Healthcare slumped as 29.9% shareholder Mediclinic International said it won't make another bid for the healthcare operator, while Shire was under the cosh after rival Roche announced successes for a lung cancer drug and a haemophilia drug. Eastern Europe-focussed low cost airline Wizz Air flew a little lower despite announcing a massive expansion at its Luton base, with the addition of four Airbus A320 aircraft to its fleet there by June 2018. British Gas owner Centrica slipped after saying it will replace its standard variable tariff with new fixed-term tariffs as it called on the government, energy regulator and industry to make several changes to "create a market that works for everyone". Tritax Big Box nudged down after announcing the acquisition of two logistics facilities, while Diploma advanced after posting a 19% jump in its full-year adjusted pre-tax profit. Market Movers FTSE 100 (UKX) 7,389.46 0.12% FTSE 250 (MCX) 19,871.29 0.37% techMARK (TASX) 3,452.84 0.15% FTSE 100 - Risers Barclays (BARC) 188.75p 2.03% Glencore (GLEN) 359.85p 1.81% Intertek Group (ITRK) 5,405.00p 1.69% BAE Systems (BA.) 544.50p 1.68% Sky (SKY) 955.00p 1.60% Next (NXT) 4,371.00p 1.56% CRH (CRH) 2,740.00p 1.48% Bunzl (BNZL) 2,190.00p 1.44% Ashtead Group (AHT) 1,936.00p 1.31% Rentokil Initial (RTO) 327.00p 1.30% FTSE 100 - Fallers Mediclinic International (MDC) 538.50p -3.06% Shire Plc (SHP) 3,579.00p -2.70% Convatec Group (CTEC) 201.00p -2.14% Hammerson (HMSO) 526.50p -1.31% ITV (ITV) 148.60p -1.26% Sainsbury (J) (SBRY) 224.80p -1.23% Merlin Entertainments (MERL) 372.40p -1.22% United Utilities Group (UU.) 788.50p -1.19% SSE (SSE) 1,331.00p -1.11% Centrica (CNA) 161.40p -1.10% FTSE 250 - Risers Diploma (DPLM) 1,181.40p 10.47% Hikma Pharmaceuticals (HIK) 1,102.00p 5.86% Thomas Cook Group (TCG) 117.00p 5.12% ZPG Plc (ZPG) 345.80p 4.53% Hunting (HTG) 513.00p 3.83% Computacenter (CCC) 1,092.00p 3.79% BTG (BTG) 742.00p 3.78% Intermediate Capital Group (ICP) 1,011.00p 3.75% Dunelm Group (DNLM) 708.50p 2.98% Paragon Banking Group (PAG) 457.80p 2.97% FTSE 250 - Fallers Spire Healthcare Group (SPI) 247.00p -8.42% TalkTalk Telecom Group (TALK) 161.80p -3.98% Telecom Plus (TEP) 1,160.00p -3.81% Tullow Oil (TLW) 166.90p -3.47% Woodford Patient Capital Trust (WPCT) 84.95p -3.47% Drax Group (DRX) 272.00p -2.89% Euromoney Institutional Investor (ERM) 1,117.00p -2.62% QinetiQ Group (QQ.) 204.30p -2.39% Kier Group (KIE) 1,028.00p -2.00% Crest Nicholson Holdings (CRST) 525.50p -1.96%   Following the financial crisis, high street banks have funded fewer SME housebuilders Alternative finance providers are stepping in to fill this void, offering investors high margins and attractive returns. One of these lenders, Clearwell Capital is currently fundraising with a 3-year secured bond paying 10% per annum. Click here to find out more. Capital at risk. Europe Market Report FTSE 100 Euronext Dax perf CAC 40 Europe Close: Stocks Extend Bounce Despite Political Gridlock In Berlin   Stocks on the Continent managed a higher close, overcoming an initial downdraft following German Chancellor Angela Merkel's inability to craft a stable working coalition at the weekend. Overnight, the Free Democrats pulled out of negotiations aimed at creating a government alongside the Green party and Merkel's CDU, possibly paving the way for new elections to be called. The concern of some investors now was that a more 'introspective' Germany might make it harder to reach agreements on a wide range of key issues at the European level, from reforming the single currency bloc, to building a common approach to immigration, Russia and Brexit. Against that backdrop, by the closing bell the benchmark Stoxx 600 was up by 0.67% or 2.59 points to 386.39, alongside a 0.50% or 64.93 point rise for the German Dax to 13,058.66 and an advance of 0.40% or 21.28 points on the Cac-40 to 5,340.45. In parallel, the euro was gave back 0.37% against the greenback to trade at 1.7746. Commenting on the political landscape in Germany, economists atBarclays Research said: "While polls show an outcome similar to September, new elections could give a different result if manifestos change to suit voter preferences. Surveys suggest that Germans are worried about immigration and a rise in social divisiveness. Those parties that directly address these issues will likely do better in a future election. "A weaker – or even lack of – German government would affect key European issues . Without a significant majority in the Bundestag, passing any legislation on euro area reform would likely be difficult. Any deviation from the EU’s current policy on Brexit would also appear much less likely than before." It was a light day in terms of economic data, althought a speech by European Central Bank chief Mario Draghi before the European parliament caught investors' attention. Speaking to the parliament's economic committe, Draghi struck a prudent note, saying: "Despite the firm economic recovery, inflation dynamics have yet to show convincing signs of a self-sustained upward trend. "Headline inflation was 1.4% in October and is expected to temporarily decline towards the turn of the year, mainly owing to a weaker energy component as a result of base effects." Earlier, the German Ministry of Finance reported that factory gate prices in the country advanced at a 2.7% clip year-on-year (consensus: 2.6%) last month. Meanwhile, on the corporate front, Reuters reported that German power outfit RWE was looking to reduce its stake in Innogy, possibly via a deal with Enel. Siemens was also in the spotlight, amid reports in the local press that its workers might strike over the prospect of thousands of job cuts at the industrial conglomerate.   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 US Market Report US Open: Stocks Come Off Lows After Stronger Than Expected Data   Wall Street is trading slightly lower, but well-off its intra-day lows, following the release of stronger than expected consumer price inflation and retail sales data for October and amid lingering concerns about the progress being made by the White House on tax reforms. At 1629 GMT, the Dow Jones Industrial Average was down by 0.34% or 78.62 points at 23,331.17, alongside a dip of 0.31% for the S&P 500 to 2,570.85 while the Nasdaq Composite was lower by 0.28% or 18.58 points to 6,719.21. From a sector standpoint, the weakest areas of the market were Non-ferrous metals (-4.37%), Oil equipment (-2.78%) and Coal (-2.48%). Meanwhile, West Texas Intermediate crude oil futures were paring earlier losses to trade down by 0.6% to $55.37 a barrel on the ICE even after the US Department reported a 1.9m barrel build (consensus: -2.2m) in US stockpiles last week. IG analyst Joshua Mahony said: "The deterioration in global stocks clearly has a footing in last week's Senate announcement that we may not see a US corporate tax cut until 2019. However, the worst may not be over yet. With Senate Majority leader Mitch McConnell hoping to add a repeal of the 'individual mandate' into the bill as a way to undermine Obamacare, the pathway to tax reform just got more complicated." On the data front, total US retail sales volumes increased by 0.2% month-on-month in October to reach $486.6bn, according to the Department of Commerce (consensus: 0.1%), alongside upwards revisions to data for the previous month. In parallel, the Department of Labor said that 'core' consumer price gains accelerated to a 1.8% pace year-on-year last month from a 1.7% clip in September. Commenting on the data, Ian Shepherdson, chief economist at Pantheon Macroeconomics said: "The y/y rate nudged up to 1.8% from 1.7%; it will remain close to this rate until March, the anniversary of the first of the soft numbers this year. At that point, the y/y rate will start to rise rapidly, and will be 2.5%-plus by late summer. "The three-month annualized rate is now 2.4%, up from a low of zero in May. The "transitory" and "idiosyncratic" factors are fading." Be that as it may, the yield on the benchmark 10-year US Treasury note was down by four basis points to 2.33%. In corporate news, investors were digesting date showing that Soros Fund Management hived-off large numbers of shares in tech giants Facebook, Apple, Snap and Twitter. Discount store Target - which is in the throes of a turnaround plan - was also in focus after it posted a bigger-than-expected jump in quarterly same-store sales. However, weaker-than-expected guidance from the retailer more than offset that good news, sending shares spiraling lower. Advance Auto Parts was also in the headlines as the company's stock price skyrocketed in the wake of stronger than forecast quarterly profits. The student accommodation market is one of the most lucrative investments available, and developments like X1 The Campus which are on the university campus and located within easy reach of Manchester city centre are proving to be incredibly popular. Luxury apartments are available from £89,95 – enquire today! Broker Round-Up Broker tips: Centrica, Dignity   ZPG: RBC Capital initiates at Outperform with a target price of 410p. Avation: Canaccord initiates at Buy with a target price of 300p. Aggreko: Deutsche Bank reiterates Hold with a target price of 965p. TalkTalk: Citigroup reiterates Sell with a target price of 150p. Fenner: Citigroup reiterates Buy with a target price of 425p. DCC: Berenberg reiterates Buy with a target price of 8700p. Victoria: Berenberg reiterates Buy with a target price of 950p. Mitie Group: Canaccord stays at Buy with a target price of 300p. Travis Perkins: Deutsche Bank reiterates Buy with a target price of 1760p. Top of the stocks Number of Deals Bought Place EPIC Equity name % 1 GSK GlaxoSmithKline plc 7.39 2 HL. Hargreaves Lansdown plc 4.21 3 SLA Standard Life Aberdeen Plc 3.68 4 RCP RIT Capital Partners plc 2.78 5 FGT Finsbury Growth & Income Trust plc 2.66 6 TW. Taylor Wimpey plc 2.26 7 FRCL Foreign & Colonial Investment Trust plc 1.72 8 PFC Petrofac 1.42 9 BLND British Land Co plc 1.14 10 GGP Greatland Gold Plc 1.10 Number of Deals Sold Place EPIC Equity name % 1 GGP Greatland Gold Plc 2.20 2 IQE IQE plc 1.76 3 VOD Vodafone Group plc 1.53 4 UKOG UK Oil & Gas Investments plc 1.42 5 LLOY Lloyds Banking Group plc 1.30 6 CLLN Carillion plc 1.29 7 ZIOC Zanaga Iron Ore Company Ltd (DI) 1.09 8 BOO Boohoo.com 1.01 9 BP. BP Plc 0.90 10 RDSB Royal Dutch Shell Plc B Shares 0.88   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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