Evening Euro Markets Bulletin

ADVFN III Evening Euro Markets Bulletin Daily world financial news Friday, 03 November 2017 17:43:30 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 slightly higher on services PMI as pound free fall stalls London stocks closed marginally higher on Friday as the market was driven by tight correlation with the pound, which itself rebounded off strong services sector data. By the close, the UK stock benchmark index was 0.07% higher at 7,560.35, having topped 7,580 earlier in the session. After Thursday's 1.71% tumble against the dollar - its largest fall since the day after the Brexit referendum last year - sterling was up 0.13% to 1.3076 and up 0.59% on the euro to 1.1269. A weaker pound benefits the Footsie due to its significant contingent of companies earning most of their revenues overseas. European bourses faired a little better with the DAX up 0.28% to 13,478.86, the CAC 40 0.14% firmer to 5,517.97, while the IBEX 35 took a 0.96% hit at 10,347.80. Having been hit by dovish talk from BoE Governor Mark Carney and Donald Trump's announcements over his new tax reform plans and new Federal Reserve chief, the pound was lifted on Friday as UK services growth accelerated more than expected in October. The IHS Markit/CIPS UK services purchasing managers' index climbed to 55.6 in October from 53.6 a month earlier, beating the consensus forecast for a fall to 53.3. Including positive manufacturing and construction surveys, the 'all-sector' PMI output index for October rose for the first time in six months, up to 55.3 from 53.6 a month before. Economists said this was consistent with fourth-quarter UK gross domestic product growth improving to 0.5% from the 0.4% rate seen in the third quarter. Barclays said the survey suggested a supportive backdrop for growth to be sustained in the fourth quarter, but pointed out more cautious hiring plans in the report, given longer term demand uncertainty, adding that continued inflationary pressures suggested upside risks to its inflation forecast. Ruth Gregory at Capital Economics said the surveys indicated the economy has held onto its recent momentum and should post reasonable growth of 2% or so next year: "As a result, it might not be too long before the MPC moves again. We envisage a second hike in the second quarter of 2018." Looking at individual London stocks, Smith & Nephew fell in early trading but gained 2.1% after saying its full year profits would be at the lower end of its guidance after a third quarter where growth was flat outside US and emerging markets but saw its artificial hips business returned to growth. Middle East hospital operator NMC Health was higher on no obvious news, though Smith & Nephew alluded to strong emerging markets growth. IAG was flying lower despite upping its long term cash flow targets ahead of a capital markets day briefing to investors and analysts. Easyjet shares also fell. Precious metals miner Randgold Resources was on the up after gold prices hit fresh two-week highs on the back of the proposed Republican tax plans. Centrica was slightly higher after making a foray onto the Continent with the acquisition of European demand response aggregator REstore, for €70m (£62m) in cash. The company manages peak loads from a portfolio of industrial and commercial customers across Belgium, the UK, France and Germany. TP ICAP was leading the fallers on the FSTE 250 as it updated the market on its trading for the third quarter on Friday and revealing its finance chief was leaving. 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! Market Movers FTSE 100 (UKX) 7,560.35 0.07% FTSE 250 (MCX) 20,472.38 0.43% techMARK (TASX) 3,576.75 0.77% FTSE 100 - Risers NMC Health (NMC) 3,083.00p 4.09% Johnson Matthey (JMAT) 3,503.00p 2.73% Coca-Cola HBC AG (CDI) (CCH) 2,638.00p 2.73% Kingfisher (KGF) 317.20p 2.45% Informa (INF) 708.50p 2.31% Ashtead Group (AHT) 1,977.00p 2.22% Sage Group (SGE) 761.00p 2.15% Smith & Nephew (SN.) 1,412.00p 2.10% InterContinental Hotels Group (IHG) 4,363.00p 1.89% Smiths Group (SMIN) 1,589.00p 1.66% FTSE 100 - Fallers Convatec Group (CTEC) 182.50p -1.99% Morrison (Wm) Supermarkets (MRW) 219.00p -1.75% International Consolidated Airlines Group SA (CDI) (IAG) 621.50p -1.51% BT Group (BT.A) 249.80p -1.50% St James's Place (STJ) 1,183.00p -1.42% Royal Bank of Scotland Group (RBS) 278.00p -1.35% Fresnillo (FRES) 1,290.00p -1.30% Berkeley Group Holdings (The) (BKG) 3,693.00p -1.26% BHP Billiton (BLT) 1,427.50p -1.25% easyJet (EZJ) 1,314.00p -1.20% FTSE 250 - Risers CLS Holdings (CLI) 235.00p 4.44% BTG (BTG) 778.00p 4.22% Just Eat (JE.) 800.00p 4.17% Dechra Pharmaceuticals (DPH) 2,190.00p 3.64% Howden Joinery Group (HWDN) 468.90p 3.26% Renishaw (RSW) 5,260.00p 2.83% IP Group (IPO) 152.00p 2.56% Weir Group (WEIR) 2,045.00p 2.51% Metro Bank (MTRO) 3,657.00p 2.47% Spectris (SXS) 2,668.00p 2.46% FTSE 250 - Fallers TP ICAP (TCAP) 500.00p -6.54% McCarthy & Stone (MCS) 155.30p -4.90% Centamin (DI) (CEY) 131.60p -4.15% Inmarsat (ISAT) 594.50p -3.25% Dixons Carphone (DC.) 163.00p -3.03% Sophos Group (SOPH) 605.50p -2.57% Drax Group (DRX) 280.70p -2.57% Hikma Pharmaceuticals (HIK) 1,091.00p -2.42% Stagecoach Group (SGC) 163.40p -2.33% 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: Wall Street mixed after October jobs report Wall Street appears headed for a mixed close going into the weekend following the release of a somewhat underwhelming US jobs report for October. As of 1458 GMT, the Dow Jones Industrials was down by 0.07% or 14.17 points at 23,501.35, alongside a dip of 0.03% or 0.71 points to 2,579.14 for the S&P 500 although the Nasdaq Composite was ahead by 0.22% or 14.98 points to 6,792.69. To take note of,some traders were likely already eyeing the upcoming Veterans Day holiday on 10 November and engaging in position squaring. According to the Department of Labor, the US economy added just 261,000 new jobs last month (consensus: 313,000). Upwards revisions to prior months' data and an unexpected further fall in the unemployment rate to 4.1% (consensus: 4.2%) more than made up for that 'miss', yet wage growth again fell well short of forecasts, with average hourly earnings running at a 2.4% clip year-on-year versus 2.8% in the month before. Nevertheless, Michael Gapen at Barclays wrote to clients that: "Although some may be willing to look through the drop in the U3 rate due to the volatility in participation, we note that declines in the unemployment rate have generally held during the recovery. "We believe the same will happen this time around as well. Hence, the risk to a substantial undershooting of the Fed's long-run unemployment rate is rising, meaning that gradual normalization should continue even amid sub-target outturns on inflation." As an aside, the day before strategists at Bank of America-Merrill Lynch had cautioned clients that their Bull&Bear indicator had risen last week to 7.3 as a result of narrower equity 'breadth' and declining inflows into bonds and equities. "But stay long risk assets until sentiment reaches euphoric territory of 8.0," they added. Acting as a backdrop, on Thursday night House Republicans presented their proposals for tax cuts which included a permanent reduction in the corporate tax rate from 30% to 20%. As well, President Donald Trump nominated then current Federal Reserve governor Jerome Powell - who some analysts believed might take a softer approach to financial sector regulation than Janet Yellen - to become the next US central bank chief. In other economic news, Commerce reported that US factory orders rose by 1.4% on the month in September (consensus: 1.3%), on the back of which Barclays revised its tracking estimate for the rate of growth in third quarter US GDP from 3.1% to 3.3%. Also making headlines ahead of the opening, stock in Apple was had halved its opening gains to trade roughly 2% higher towards $171.80 after hitting an intra-day and 52-week high at $174.26. The smartphone maker had posted stronger-than-expected third quarter earnings per share and revenues of $2.07 and $52.6bn, respectively, on Thursday night. First quarter 2018 sales guidance also topped analysts' estimates. Meanwhile, and from a sector standpoint, the best performance was being put in by the following industrial groups: Electronic office equipment (2.95%), Computer hardware (2.13%) and durable household products (1.51%). Elsewhere on the corporate front, Duke Energy posted third quarter earnings per share of $1.59 (consensus: $1.55), giving stock in the electricity distributor a small lift. Meanwhile, shares in auction house Sotheby's on the other hand came under selling pressure on the heels of much weaker than forecast EPS for the latest three-month stretch of 78 cents. Stock of Teva Pharmaceuticals was also on the front foot even after the company lowered its outlook for full-year profits and sales. Revenues were now seen in a range of between $22.2bn and $23.2bn, respectively, with EPS between $3.77 and $3.87. Teva had previously guided towards earnings between $4.30 and $4.50. Dow Jones - Risers Apple Inc. (AAPL) $171.69 2.13% Wal-Mart Stores Inc. (WMT) $89.53 1.81% McDonald's Corp. (MCD) $168.55 1.31% United Technologies Corp. (UTX) $121.20 0.90% Home Depot Inc. (HD) $164.03 0.81% 3M Co. (MMM) $231.90 0.75% Unitedhealth Group Inc. (UNH) $210.86 0.63% Coca-Cola Co. (KO) $46.06 0.57% Nike Inc. (NKE) $55.31 0.44% Walt Disney Co. (DIS) $98.68 0.33% Dow Jones - Fallers Intel Corp. (INTC) $46.35 -1.58% Goldman Sachs Group Inc. (GS) $244.37 -1.02% Verizon Communications Inc. (VZ) $47.44 -0.82% International Business Machines Corp. (IBM) $152.16 -0.78% Exxon Mobil Corp. (XOM) $83.30 -0.68% JP Morgan Chase & Co. (JPM) $100.99 -0.59% Johnson & Johnson (JNJ) $139.38 -0.40% Visa Inc. (V) $110.67 -0.36% Travelers Company Inc. (TRV) $133.05 -0.31% General Electric Co. (GE) $19.88 -0.30% S&P 500 - Risers NRG Energy Inc. (NRG) $27.06 8.92% Teradata Corp. (TDC) $36.02 8.20% L Brands Inc (LB) $47.13 8.06% Yum! Brands Inc. (YUM) $79.60 7.12% Dentsply International Inc. (XRAY) $65.50 7.10% Zoetis Inc (ZTS) $68.62 6.37% Fluor Corp. (FLR) $46.36 4.27% Endo International Plc (ENDP) $6.19 4.03% Marathon Oil Corp. (MRO) $15.45 3.90% Citrix Systems Inc. (CTXS) $85.45 3.75% S&P 500 - Fallers Newell Brands Inc (NWL) $31.61 -22.90% Frontier Communications Co. (FTR) $8.65 -5.83% Tenet Healthcare Corp. (THC) $13.56 -5.47% Zimmer Biomet Holdings Inc (ZBH) $109.01 -5.28% Mallinckrodt Plc Ordinary Shares (MNK) $30.52 -4.80% American International Group Inc. (AIG) $61.87 -4.79% Time Warner Inc. (TWX) $93.78 -4.69% TEGNA Inc (TGNA) $11.80 -4.65% ONEOK Inc. (OKE) $52.10 -4.46% Lennar Corp. Class A (LEN) $54.73 -3.92% Nasdaq 100 - Risers Mercadolibre Inc. (MELI) $260.19 10.25% Dentsply International Inc. (XRAY) $65.50 7.10% Citrix Systems Inc. (CTXS) $85.45 3.75% Hologic Inc. (HOLX) $39.57 2.99% Henry Schein Inc. (HSIC) $78.50 2.88% Starbucks Corp. (SBUX) $56.40 2.79% Align Technology Inc. (ALGN) $238.77 2.27% Apple Inc. (AAPL) $171.69 2.13% NetEase Inc. Ads (NTES) $281.18 1.84% Dollar Tree Inc (DLTR) $94.23 1.81% Nasdaq 100 - Fallers Liberty Global Plc Lilac Class C (LILAK) $21.82 -3.28% Activision Blizzard Inc. (ATVI) $63.37 -3.18% Liberty Global Plc Lilac Class A (LILA) $21.73 -3.16% Discovery Communications Inc. Class A (DISCA) $16.80 -2.95% Discovery Communications Inc. Class C (DISCK) $15.81 -2.77% Liberty Global plc Series A (LBTYA) $31.01 -1.93% Liberty Global plc Series C (LBTYK) $29.92 -1.87% Western Digital Corp. (WDC) $87.11 -1.68% Intel Corp. (INTC) $46.35 -1.58% 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: Shell, Randgold Resources, G4S Analysts at Barclays reaffirmed their positive stance on shares of Royal Dutch Shell, pointing to management's ability to 're-set' the outfit's cash break-even level lower, the likelihood that it would soon be able to scrap its scrip dividend and the 6% dividend yield on offer. The key, they explained, was management's decision to avail themselves of lower capital expenditures, reduced operating expenditures, divestments and new project start-ups to cut the company's cashflow break-even level of oil to $50 a barrel. That was so even after paying out a full cash dividend. Over the past four years, Shell had cut the oil price needed to cover both capex and payouts by nearly $80 a barrel, Barclays explained. Yes, at 25% gearing remained above the firm's targeted level of 20%. However, Barclays judged that: "continued strong organic cashflow and further divestment proceeds should give management the required line of sight to lower gearing that it needs to turn off the optional scrip dividend sooner rather than later." Analysts at Numis reiterated their 'buy' recommendation and 900p target on Randgold Resources's shares despite its third quarter earnings 'miss' on the back of higher costs and lower gold sold as a proportion of output. Indeed, cash costs printed at $667/oz., versus Numis's forecast for $606/oz, due to a combination of factors, including as a result of a higher strip ratio at its Loulo-Gounkoto and Tongon mines. Instead, the analysts highlighted the 8.5% quarterly increase in cash from $572m at the end of the previous quarter to $621m and management's decision to reiterate their full-year guidance. In particular, the directors had reaffirmed their intention to return to shareholders cash in excess of its targeted $500m. 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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