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Nov 17, 2017

Morning Euro Markets Bulletin

 
ADVFN  Morning Euro Markets Bulletin
Daily world financial news Friday, 17 November 2017 10:39:15
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London Market Report
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London open: Stocks edge down as pound ticks up; Carillion tumbles on warning

London stocks edged lower in early trade on Friday as the pound ticked up amid a much quieter corporate calendar.

At 0835 GMT, the FTSE 100 was down 0.2% to 7,374.79, while the pound was up 0.1% versus the euro at 1.1221 and 0.3% firmer against the dollar at 1.3233.

Spreadex analyst Connor Campbell said: "With no data to speak of the pound felt comfortable in continuing yesterday's rebound; the FTSE, on the other hand, wasn't so lucky.

"Despite more negative noise from the EU surrounding Brexit - with the Netherlands preparing for a no deal 'chaos' scenario, and leaked documents suggesting May's aim of a 'deep and special' relationship won't be possible - sterling got off to a decent start this Friday."

In corporate news, outsourcing and construction group Carillion fell a whopping 63% after issuing its third profit warning in 12 months, saying full-year profits will be "materially lower" than current market expectations and that it now expects to breach its covenants.

United Utilities was hit by a downgrade to 'hold' from HSBC, while Supergroup fell after being downgraded to 'sector perform' at RBC Capital Markets.

On the upside, broadcaster Sky was the standout gainer following reports that Comcast and Verizon have approached 21st Century Fox to buy some assets.

Construction and maintenance group Kier rallied after saying it made a smooth start to the year and it is confident of delivering double-digit profit growth.

Ferrexpo was on the front foot after it signed a new secured three year revolving credit facility of $195m that will be used for general corporate purposes.

Pest control and hygiene company Rentokil Initial traded higher as it agreed the issue of a €400m 0.95% bond, due 22 November 2024.

Petrofac gushed higher following a report that Schlumberger and Halliburton are among the companies looking to approach it with a bid.

CRH was boosted by an upgrade to 'overweight' at Morgan Stanley, while B&Q owner Kingfisher edged up after an upgrade to 'sector perform' at RBC Capital Markets.


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Market Movers

FTSE 100 (UKX) 7,374.79 -0.16%
FTSE 250 (MCX) 19,792.10 -0.29%
techMARK (TASX) 3,446.58 -0.33%

FTSE 100 - Risers

Sky (SKY) 927.50p 2.71%
CRH (CRH) 2,709.00p 1.31%
Standard Life Aberdeen (SLA) 421.00p 1.10%
NMC Health (NMC) 2,744.00p 0.96%
St James's Place (STJ) 1,150.00p 0.70%
Berkeley Group Holdings (The) (BKG) 3,729.00p 0.67%
International Consolidated Airlines Group SA (CDI) (IAG) 605.50p 0.67%
London Stock Exchange Group (LSE) 3,809.00p 0.66%
Ashtead Group (AHT) 1,913.00p 0.63%
Convatec Group (CTEC) 199.70p 0.60%

FTSE 100 - Fallers

United Utilities Group (UU.) 815.50p -2.28%
Shire Plc (SHP) 3,665.50p -2.10%
Mediclinic International (MDC) 570.50p -1.38%
Compass Group (CPG) 1,602.00p -1.23%
Severn Trent (SVT) 2,120.00p -1.12%
Marks & Spencer Group (MKS) 300.80p -0.92%
National Grid (NG.) 882.30p -0.81%
Next (NXT) 4,287.00p -0.76%
Mondi (MNDI) 1,741.00p -0.68%
Morrison (Wm) Supermarkets (MRW) 209.40p -0.66%

FTSE 250 - Risers

Petrofac Ltd. (PFC) 426.00p 4.69%
Kier Group (KIE) 1,052.00p 3.24%
Ferrexpo (FXPO) 248.30p 2.01%
Dignity (DTY) 2,002.00p 1.88%
Hunting (HTG) 501.50p 1.72%
PayPoint (PAY) 930.50p 1.53%
Daejan Holdings (DJAN) 6,080.00p 1.33%
Caledonia Investments (CLDN) 2,781.00p 1.13%
Wood Group (John) (WG.) 691.50p 1.10%
Just Group (JUST) 151.00p 1.07%

FTSE 250 - Fallers

Supergroup (SGP) 1,908.00p -3.10%
Greene King (GNK) 521.50p -2.80%
Savills (SVS) 925.50p -2.27%
CLS Holdings (CLI) 222.00p -2.16%
Stagecoach Group (SGC) 155.90p -1.89%
Marston's (MARS) 103.40p -1.80%
Hikma Pharmaceuticals (HIK) 1,003.00p -1.76%
Dixons Carphone (DC.) 151.20p -1.75%
Just Eat (JE.) 810.50p -1.64%


UK Event Calendar

Friday November 17

INTERIMS
NextEnergy Solar Fund Limited Red, Record

INTERIM DIVIDEND PAYMENT DATE
Aviva, Bovis Homes Group, Coats Group, Harvey Nash Group, Howden Joinery Group, Menzies(John), Saga , Ted Baker, Walker Greenbank, Warpaint London

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Building Permits (US) (13:30)
Current Account (EU) (09:00)
Housing Starts (US) (12:30)

SPECIAL DIVIDEND PAYMENT DATE
Hays, Octopus Apollo VCT, ProVen Growth & Income VCT, ProVen VCT

AGMS
Amur Minerals Corporation NPV, Central Rand Gold Ltd, Kier Group, Myanmar Strategic Holdings Limited NPV (DI), Salt Lake Potash Limited (DI), Seeing Machines Ltd., Sylvania Platinum Ltd (DI)

FINAL DIVIDEND PAYMENT DATE
Dechra Pharmaceuticals, Hays, Ricardo, Smiths Group, Wilmington

 


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Europe Market Report
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Europe open: Stocks starts slightly higher, analysts wary

Stocks have started the morning trading slightly higher, tracking overnight gains on Wall Street but analysts are worried about buying into Thursday's bounce.

At 0811 GMT, the benchmark Stoxx 600 was ahead by 0.04% or 0.17 points to 385.10, alongside a rise of 0.20% or 25.62 points to 13,072.84 for the German Dax but a dip of 0.03% or 7.36 points for the FTSE Mibtel to 22,199.24.

"European markets managed to snap their five day losing streak yesterday, as some cautious buyers returned to the fray after the worst run of daily losses so far this year. The big question remains as to whether this is merely a pause in the context of a wider correction or whether we'll see a resumption of the uptrend that has been in place since the beginning of 2016.

"Having seen sharp declines last week it remains to be seen whether we'll see two successive weekly declines for markets in Europe, as we head into the weekend," said Michael Hewson, chief market analyst at CMC Markets UK.

The economic calendar was light at the end of the week, with only euro area current account data for September set for release at 1000 GMT, alongside figures on construction output in the single currency bloc due out at 1000 GMT.

Later in the session, US housing starts data for October were expected at 1330 GMT, followed by a speech from San Francisco Fed boss John Williams at 2230 GMT.

Speaking on Thursday evening, Williams called a re-think of how central banks, globally, can stimulate their economies when many of them are facing the so-called zero bound on interest rates - including the impact of 'spill-over' effects.


Hargreaves Lansdown

Top of the stocks

Number of Deals Bought

Place EPIC Equity name %
1 SMT Scottish Mortgage Investment Trust 3.58
2 LLOY Lloyds Banking Group plc 2.85
3 GSK GlaxoSmithKline plc 2.41
4 SXX Sirius Minerals plc 1.18
5 BT.A BT Group plc 1.07
6 RCP RIT Capital Partners plc 1.07
7 NG. National Grid 0.98
8 BP. BP Plc 0.92
9 IQE IQE plc 0.87
10 XBT Provider AB 0.86

Number of Deals Sold

Place EPIC Equity name %
1 IQE IQE plc 2.23
2 LLOY Lloyds Banking Group plc 1.45
3 BP. BP Plc 1.16
4 BT.A BT Group plc 1.01
5 WPCT Woodford Patient Capital Trust PLC 0.98
6 FEVR Fevertree Drinks plc 0.96
7 TLW Tullow Oil plc 0.89
8 88E 88 Energy Ltd 0.87
9 UKOG UK Oil & Gas Investments plc 0.85
10 BOO Boohoo.com 0.83

US Market Report

US close: Wall Street back in the green despite tax reform concerns

Wall Street was back in the green on Thursday, bouncing back from weakness earlier in the week thanks to a crop of positive corporate updates and a robust reading on factory output, even as some analysts continue to differ on the outlook.

That was in spite of news overnight that US senator Ron Johnson would not support Senate Republicans' tax package, meaning that if just two other senators pulled their support, the plan would no longer be approved by the start of December.

The Dow Jones Industrial Average finished ahead 0.8% at 23,458.36, the S&P 500 was up 0.82% at 2,585.64, and the Nasdaq 100 added 1.29% to 6,339.14.

"Investors are beginning to punish the corporate debt and equity of highly indebted US companies," said SocGen's Albert Edwards.

"We have highlighted consistently that excess US corporate debt is probably the key area of vulnerability that could bring down the QE inflated pyramid scheme that the central banks have created."

Thursday's economic data was a bit of a mixed bag, with October's print on industrial production clearly better-than-expected while the import price figures for that same month contained some indications that prices were headed higher.

Powering gains on the Street, Cisco Systems and Wal-Mart bounded higher on the back of their latest quarterly figures, rising 5.19% and 10.9% respectively.

Shares of data storage outfit NetApp surged 15.91% after the company posted fiscal second quarter earnings of 81 cents a share, on the back of stronger-than-forecast revenues and well ahead of consensus forecasts for 69 cents.

Rockwell Automation was also well bid, rising 2.54% after Emerson Electric put in a revised unsolicited bid on the industrial automation outfit of $225 a share, up from an initial $215.

The Coca-Cola Company finished down 0.56%, having earlier risen after it reaffirmed its guidance on its investor day.

JM Smucker was ahead 9.57% despite 2018 sales to be down slightly or flat.

Bringing up the rear, Procter & Gamble was edging higher, adding 1.14% after activist investor Nelson Peltz managed to win a seat on the board.

Dow Jones - Risers

Wal-Mart Stores Inc. (WMT) $99.62 10.90%
Cisco Systems Inc. (CSCO) $35.88 5.19%
Dowdupont Inc. (DWDP) $70.68 2.48%
Verizon Communications Inc. (VZ) $44.77 1.50%
International Business Machines Corp. (IBM) $149.09 1.37%
Home Depot Inc. (HD) $167.49 1.21%
Apple Inc. (AAPL) $171.10 1.19%
Procter & Gamble Co. (PG) $89.27 1.13%
Nike Inc. (NKE) $57.23 1.06%
3M Co. (MMM) $229.42 0.83%

Dow Jones - Fallers

Travelers Company Inc. (TRV) $130.85 -2.18%
Chevron Corp. (CVX) $114.57 -1.62%
Caterpillar Inc. (CAT) $136.36 -0.86%
Exxon Mobil Corp. (XOM) $80.54 -0.80%
Coca-Cola Co. (KO) $46.55 -0.56%
Johnson & Johnson (JNJ) $138.85 -0.17%
Walt Disney Co. (DIS) $103.57 -0.10%
General Electric Co. (GE) $18.25 -0.05%
United Technologies Corp. (UTX) $117.88 0.26%
JP Morgan Chase & Co. (JPM) $98.47 0.26%

S&P 500 - Risers

NetApp Inc. (NTAP) $53.11 15.91%
Wal-Mart Stores Inc. (WMT) $99.62 10.90%
J. M. Smucker Co. (SJM) $116.65 9.52%
Amerisource Bergen Corp. (ABC) $80.31 6.51%
Paypal Holdings Inc (PYPL) $77.70 5.82%
Cisco Systems Inc. (CSCO) $35.88 5.19%
Patterson Companies Inc. (PDCO) $36.07 4.70%
Campbell Soup Co. (CPB) $48.34 4.12%
Centene Corp. (CNC) $96.14 4.08%
Express Scripts Holding Co (ESRX) $62.45 4.00%

S&P 500 - Fallers

Advance Auto Parts (AAP) $90.50 -5.45%
Viacom Inc. Class B (VIAB) $23.69 -3.74%
Best Buy Co. Inc. (BBY) $55.33 -3.59%
Apache Corp. (APA) $40.49 -3.32%
Emerson Electric Co. (EMR) $59.02 -2.83%
Transocean Ltd. (RIG) $10.23 -2.39%
Chesapeake Energy Corp. (CHK) $3.85 -2.28%
American International Group Inc. (AIG) $60.06 -2.28%
AutoNation Inc. (AN) $52.06 -2.22%
Travelers Company Inc. (TRV) $130.85 -2.18%

Nasdaq 100 - Risers

NetEase Inc. Ads (NTES) $326.24 7.86%
Paypal Holdings Inc (PYPL) $77.70 5.82%
T-Mobile Us, Inc. (TMUS) $59.80 5.49%
Cisco Systems Inc. (CSCO) $35.88 5.19%
Express Scripts Holding Co (ESRX) $62.45 4.00%
Applied Materials Inc. (AMAT) $57.84 3.71%
Seagate Technology Plc (STX) $39.12 3.46%
Shire Plc Ads (SHPG) $144.63 3.29%
CSX Corp. (CSX) $50.12 3.06%
Celgene Corp. (CELG) $103.35 3.00%

Nasdaq 100 - Fallers

Viacom Inc. Class B (VIAB) $23.69 -3.74%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $53.97 -2.00%
Liberty Global Plc Lilac Class A (LILA) $21.80 -1.67%
Liberty Global Plc Lilac Class C (LILAK) $21.92 -1.44%
Liberty Global plc Series C (LBTYK) $28.77 -0.93%
Liberty Global plc Series A (LBTYA) $29.83 -0.80%
Mylan Inc. (MYL) $37.50 -0.79%
Vertex Pharmaceuticals Inc. (VRTX) $147.94 -0.48%
Mercadolibre Inc. (MELI) $262.48 -0.40%


Newspaper Round Up

Friday newspaper round-up: 21st Century Fox, Black Friday, driverless cars

Cable and media giant Comcast has reportedly approached 21st Century Fox about a possible acquisition, a move that comes after Disney was also reported to be circling Rupert Murdoch’s media empire. 21st Century Fox’s share price shot up in after-hours trading following the news on Thursday, first reported by CNBC. It is unclear whether the cablecompany is exploring a purchase of all or part of Fox, which owns Hollywood studios 20th Century Fox and Fox Searchlight as well as the Fox news and sports channels. – Guardian

British shoppers are expected to spend £10.1bn in the week of Black Friday, nearly 4% higher than last year as more retailers take part in the US-inspired promotional day. But the bargain fever seen in earlier years is thought unlikely to materialise as most activity will be online with experts warning that the discounts are likely to be less exciting on the day, which falls on 24 November this year. ?" Guardian

Jaguar Land Rover has quietly started testing driverless cars on British roads that are simultaneously being used by the general public, in a clear indication that Britain's biggest manufacturer is determined the country will play a leading role in the race to develop autonomous vehicles. Coventry-based JLR has been putting its computer-controlled vehicles. ?" Telegraph

Siemens does not expect to enforce compulsory redundancies in the UK as part of plans to cut 6,900 roles worldwide. The industrial group said half of the jobs would be slashed in Germany, with around 1,100 to go in the rest of Europe and 1,800 in the US. ?" Telegraph

Britain's biggest debt collector has pulled its plans for a London flotation, blaming poor and volatile market conditions amid claims it was overvalued. In what would have been one of the market's biggest listings of the year, Cabot Credit Management had hoped to complete the pricing of its shares this week. Yesterday it said that moving forward with the initial public offering "would not be in the best interest of the company or its shareholders". ?" The Times

The Serious Fraud Office has charged two people in an investigation into the oil and gas company Unaoil. Ziad Akle and Basil Al Jarah have been charged with conspiracy to make corrupt payments to secure contracts in Iraq to Unaoil's client SBM Offshore between June 2005 and August 2011, the SFO said. ?" The Times

 

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