Evening Euro Markets Bulletin

ADVFN III Evening Euro Markets Bulletin Daily world financial news Monday, 27 November 2017 18:16:04 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: Chinese jitters dent sentiment London stocks finished lower, weighed down by losses in miners' shares on the back of weak economic data out in China and amid continuing 'market chatter' regarding the potential risks linked to the country's market for corporate debt. The FTSE 100 finished 0.35% or 25.74 points lower at 7,383.90, as the pound edged 0.14% higher against the euro to 1.1193 but was unchanged against the US dollar at 1.3337. Industrial profit growth in China slowed from a 27.7% clip year-on-year for September to 25.1% in October Against that backdrop, Zhang Qinghua, the head of fixed-income investing at E Fund Management, the manager of the best performing fund in that space in China, told Bloomberg News there was a high probability that credit spreads might widen in the Asian giant in 2018. That sentiment was echoed by strategists at Citi, who recommended clients 'buy the dips' in global stocks, telling them the current bull market still had room to run after checking-off of the list of fifteen stock market indicators that make up their Bear Market Checklist. However, they threw in a couple of caveats. "The end of QE and high Chinese corporate debt give cause for concern. Neither is in our BMC," Citi said. The week may have kicked off on a relatively muted note, but things were set to get a lot busier the following day, with the results of the Bank of England's stress tests. CMC Markets analyst Michael Hewson said: "This year's focus is once again likely to be on RBS given its failure last year, but it should also be remembered that even if the other banks pass the tests they may well have to raise extra capital or submit revised capital plans which in turn could impact any future potential dividend payout. "This is likely to be particularly true of Lloyds which passed last year's test quite easily, however given the rise in domestic lending the bank may not have so much headroom this time around." In corporate news, GlaxoSmithKline was boosted by an upgrade from UBS with budget carrier EasyJet another standout gainer after Exane BNP Paribas upped the stock to 'neutral' Elsewhere, Aviva was a high riser following a Sunday Times report suggesting the company is planning a £1bn buyback. AstraZeneca dipped after submitting a supplemental new drug application to Japan's drug regulator for its Tagrisso to be given as a first-line treatment of patients with certain types of non-small cell lung cancer. Ocado racked up strong gains as Credit Suisse reiterated its 'outperform' rating on the stock and said weakness was overdone. LondonMetric rose as it exchanged on the sale of an Odeon cinema in Derby and a retail asset in Guisborough for £18.6m. On the downside, education publisher Pearson was under the cosh after agreeing to sell its Wall Street English business to a consortium of funds led by Baring Private Equity Asia and CITIC Capital for around $300m. Ultra Electronics slipped despite saying has won a brace of contracts, one in the UK and one with Sweden's Saab, two weeks after the defence and security supplier issued a profit warning due to a slowdown in UK defence spending. Micro Focus fell on the back of a downgrade to 'hold' at Deutsche Bank, while SIG and Marshalls were hit by initiations at 'underweight' from Barclays. FatPROPHETS Successful stock recommendations since 2000 Fat Prophets is a stock market research house that specialises in assisting value based investors with buy, hold and sell recommendations Click Here 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. Market Movers FTSE 100 (UKX) 7,383.90 -0.35% FTSE 250 (MCX) 19,881.26 -0.32% techMARK (TASX) 3,465.72 -0.03% FTSE 100 - Risers GlaxoSmithKline (GSK) 1,320.50p 1.77% GKN (GKN) 311.10p 1.63% Intertek Group (ITRK) 5,230.00p 1.55% easyJet (EZJ) 1,385.00p 1.47% Old Mutual (OML) 195.20p 1.35% National Grid (NG.) 877.80p 1.29% Persimmon (PSN) 2,589.00p 1.29% International Consolidated Airlines Group SA (CDI) (IAG) 603.50p 1.26% Mediclinic International (MDC) 526.50p 1.15% WPP (WPP) 1,268.00p 0.96% FTSE 100 - Fallers Micro Focus International (MCRO) 2,557.00p -3.69% Antofagasta (ANTO) 945.00p -3.42% Anglo American (AAL) 1,430.00p -2.09% Johnson Matthey (JMAT) 3,015.00p -2.08% Fresnillo (FRES) 1,337.00p -2.05% Pearson (PSON) 693.50p -2.05% Hargreaves Lansdown (HL.) 1,597.00p -1.42% BHP Billiton (BLT) 1,392.50p -1.28% Merlin Entertainments (MERL) 357.50p -1.22% Shire Plc (SHP) 3,677.24p -1.21% FTSE 250 - Risers Ocado Group (OCDO) 256.20p 7.33% Sophos Group (SOPH) 646.00p 3.94% Thomas Cook Group (TCG) 119.40p 2.40% Woodford Patient Capital Trust (WPCT) 86.30p 2.14% Grafton Group Units (GFTU) 746.00p 2.13% Fidessa Group (FDSA) 2,471.00p 2.07% Greencore Group (GNC) 191.90p 1.80% Cineworld Group (CINE) 654.50p 1.79% Marston's (MARS) 103.10p 1.68% FDM Group (Holdings) (FDM) 954.00p 1.64% FTSE 250 - Fallers Acacia Mining (ACA) 182.80p -6.13% Vedanta Resources (VED) 756.50p -4.60% Tullow Oil (TLW) 168.60p -4.48% Drax Group (DRX) 258.70p -4.29% Provident Financial (PFG) 850.00p -4.28% Kaz Minerals (KAZ) 801.50p -4.24% Marshalls (MSLH) 440.80p -4.19% PayPoint (PAY) 921.50p -3.56% esure Group (ESUR) 246.30p -2.53% Latest reports from Atlantic Advisory, including GSK, BP, Lloyds....... Available Now: AstraZeneca, Bitcoin, Boohoo.com, BP, Carillion, Glaxo SmithKline, Glencore, Greatland Gold Plc, UK House Prices, Hurrancane Energy, IQE, Lloyds Banking Group, Barclays vs Lloyds, UK Oil and Gas, Provident Financial and Sirius Minerals. Click here to select your FREE REPORTS from Atlantic Advisory CFDs are leveraged products that carry a high level of risk to your capital. US Market Report US open: Stocks near record, but momentum waning Wall Street is continuing to edge higher, buoyed by gains in retailers and a strong reading on new home sales. With traders back at their desks in full-force following the Thanksgiving break, the main market indices were again at or near record levels. At 1604 GMT, the Dow Jones Industrial Average was 0.16% or 370 points ahead to 23,519.37, alongside a 0.02% or 0.70 point dip on the S&P 500 to 2,601.54 while the Nasdaq Composite was 0.16% or 11.77 points lower at 6,876.50. However, decliners outnumbered advancers on both major exchanges, the NYSE and Nasdaq, a possible indication of waning momentum. Acting as a backdrop, investors were watching for any developments as regards the Republicans' tax plans as a Senate vote on proposed tax changes was expected as early as Tuesday this week. Not far from traders' minds, the price of Bitcoin was up by 3.4% at $9,644.11, according to Coindesk. From a sector standpoint, the best performing areas of the market were: Broadline retailers (1.78%), Home improvement retailers (1.26%) and Business training (0.78%). "US stocks are back to normal today, with the recovery from Thanksgiving overindulgence complete. Tax reform looks a bit less of a done deal today, and it is strange to see the market so blissfully unconcerned. Perhaps it is the thought of a festive rally into year-end that is keeping them stable, or perhaps they're hoping Mr Trump will pull a rabbit out of the hat. "Either way, as we head into the final month of the year a sudden pullback due to tax reform worries offers the dip-buyers their best hope," said Chris Beauchamp, chief market analyst at IG. Market participants were also waiting on comments by New York Fed President William Dudley, who was to take part in a moderated discussion at an event sponsored by the University of California. In addition, Minneapolis Fed President Neel Kashkari was set to participate in a moderated discussion at Winona State University later on Monday. Economic data on Monday was limited to monthly home sales figures and the Federal Reserve bank of Dallas's regional manufacturing gauge. New homes sales jumped by 6.2% on the month in October to reach an annualised pace of 685,000 (consensus: 624,000), according to Commerce. With a focus on the South, the Dallas Fed's factory sector index fell back by 10.0 points from its October level to a reading of 15.1 in November. In the corporate space, and as was often the case on Mondays, traders were busy reacting to the latest newsflow on M&A deals. As such, shares of Time Inc. were up by 9.17%, outpacing gains after Meredith Corp inked a deal to buy the magazine publisher for $2.8bn. Unusually for a suitor company, which got the financial backing of the Koch brothers for the deal, stock in Meredith was ahead by almost as much. Shares of Barracuda Networks were also sharply higher after the company agreed to an all-cash takeover from private equity outfit Thoma Bravo for $1.6bn, for a 22.5% premium. Teva Pharma was also trading on the front foot after unveiling a big reorganisation and multiple changes in its top ranks. Dow Jones - Risers General Electric Co. (GE) $18.45 1.43% Verizon Communications Inc. (VZ) $47.48 1.00% Wal-Mart Stores Inc. (WMT) $97.50 0.91% Microsoft Corp. (MSFT) $83.93 0.80% 3M Co. (MMM) $233.21 0.79% JP Morgan Chase & Co. (JPM) $99.06 0.75% Cisco Systems Inc. (CSCO) $36.74 0.69% Home Depot Inc. (HD) $173.51 0.68% Visa Inc. (V) $112.44 0.42% International Business Machines Corp. (IBM) $152.25 0.27% Dow Jones - Fallers Dowdupont Inc. (DWDP) $70.48 -0.96% Chevron Corp. (CVX) $115.69 -0.70% Exxon Mobil Corp. (XOM) $81.08 -0.42% Intel Corp. (INTC) $44.60 -0.35% McDonald's Corp. (MCD) $168.73 -0.22% Merck & Co. Inc. (MRK) $54.28 -0.13% United Technologies Corp. (UTX) $116.79 -0.10% Caterpillar Inc. (CAT) $137.32 -0.05% Boeing Co. (BA) $265.76 -0.05% Apple Inc. (AAPL) $174.90 -0.04% S&P 500 - Risers Gap Inc. (GPS) $30.60 3.24% L Brands Inc (LB) $49.92 3.23% Mallinckrodt Plc Ordinary Shares (MNK) $21.90 3.20% TripAdvisor Inc. (TRIP) $35.12 2.78% GameStop Corp. (GME) $17.87 2.60% Frontier Communications Co. (FTR) $7.62 2.28% Urban Outfitters Inc. (URBN) $30.72 1.86% Amazon.Com Inc. (AMZN) $1,205.66 1.66% AutoZone Inc. (AZO) $642.33 1.48% Crown Castle International (CCI) $114.34 1.44% S&P 500 - Fallers Western Digital Corp. (WDC) $86.17 -7.12% Micron Technology Inc. (MU) $47.69 -4.01% Seagate Technology Plc (STX) $38.79 -3.72% Diamond Offshore Drilling Inc. (DO) $15.37 -3.70% Kimco Realty Corp. (KIM) $18.15 -3.46% Transocean Ltd. (RIG) $9.75 -3.18% Lam Research Corp. (LRCX) $210.03 -3.14% Marathon Oil Corp. (MRO) $14.72 -2.72% Hess Corp. (HES) $43.28 -2.52% Murphy Oil Corp. (MUR) $28.00 -2.35% Nasdaq 100 - Risers Align Technology Inc. (ALGN) $261.10 2.49% Mercadolibre Inc. (MELI) $277.40 2.22% Amazon.Com Inc. (AMZN) $1,209.74 2.00% Illumina Inc. (ILMN) $216.94 0.97% Cisco Systems Inc. (CSCO) $36.83 0.95% eBay Inc. (EBAY) $36.16 0.90% Dentsply International Inc. (XRAY) $68.10 0.87% Alphabet Inc. Class A (GOOGL) $1,065.36 0.84% Alphabet Inc. Class C (GOOG) $1,048.31 0.74% Microsoft Corp. (MSFT) $83.87 0.73% Nasdaq 100 - Fallers Western Digital Corp. (WDC) $86.77 -6.48% Seagate Technology Plc (STX) $38.88 -3.50% Micron Technology Inc. (MU) $48.24 -2.90% Liberty Global plc Series A (LBTYA) $30.01 -2.25% Charter Communications Inc. (CHTR) $321.73 -2.20% Mylan Inc. (MYL) $36.55 -2.19% Liberty Global plc Series C (LBTYK) $29.05 -2.17% Ctrip.Com International Ltd. Ads (CTRP) $46.65 -2.09% Lam Research Corp. (LRCX) $212.32 -2.08% Top of the stocks Number of Deals Bought Place EPIC Equity name % 1 CNA Centrica plc 4.98 2 CLLN Carillion plc 2.62 3 GSK GlaxoSmithKline plc 1.69 4 SMT Scottish Mortgage Investment Trust 1.63 5 LLOY Lloyds Banking Group plc 1.40 6 BAB Babcock International Group 1.36 7 VRS Versarien plc 1.20 8 BOO Boohoo.com 1.08 9 NG. National Grid 1.03 10 XBT Provider AB 1.02 Number of Deals Sold Place EPIC Equity name % 1 LLOY Lloyds Banking Group plc 1.58 2 CLLN Carillion plc 1.53 3 EZJ easyJet plc 1.24 4 PFC Petrofac 1.12 5 RMG Royal Mail PLC 1.09 6 VRS Versarien plc 1.06 7 CNA Centrica plc 1.04 8 TSCO Tesco plc 1.03 9 GGP Greatland Gold Plc 0.97 10 BOO Boohoo.com 0.95 Broker Tips Broker tips: Mothercare, Ophir Energy, Informa Analysts at Canaccord cut their 2018 pre-tax profit forecast for Mothercare by 43% on Friday to £12.0m, reassessing their estimate for losses from its UK business from £500,000 to £7.8m. In parallel, Canaccord dropped Mothercare's target from 103p to 47p and reiterated its 'sell' rating on the retailer. To take note of, the Canadian broker's PBT estimate for the firm was also reduced, by 36%. Critically, the analysts adjusted their projections for Mothercare's like-for-like sales, anticipating a 4% drop in the second half of 2018 and flat gross margins. At the company's international unit, Canaccord reduced its full-year EBIT forecast from £36m to £33m driven by weakness in its Saudi business unit, which had accounted for "the bulk of the pressure" on sales and operating profits. "Our DCF-based price target falls from 103p to 47p. High operational gearing and balance sheet risk makes this no place to be in a difficult consumer environment. Maintain Sell," the broker said. Credit Suisse believes the market has become too pessimistic on Ophir Energy's ability to reach a financing deal with its potential Chinese investors in order to progress on Fortuna. With a delay in Ophir's first-investment-decision already priced-in and following 10% underperformance in the shares quarter-to-date, Credit Suisse said it now saw an "attractive" risk-reward trade-off in the shares; hence its decision to upgrade its recommendation for the same from 'neutral' to 'outperform'. According to the Swiss broker's analysts, market pricing was currently implying only a 50% chance of success. "With an offtake agreement already in place, securing project financing may help to further de-risk the project to 90% we carry in our NAV," Credit Suisse added. Furthermore, the broker hailed the company's decision to search for alternate project financing options in parallel to its talks with those Chinese investors. Ophir was set to update the market in December and was aiming to wrap-up the necessary talks on project financing by mid-month with a view to taking FID in the first quarter of 2018. Nonetheless, missing that schedule was a near-term risk which might potentially push-out FID and negatively impact management's credibility, the broker said.   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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