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Nov 6, 2017

Morning Euro Markets Bulletin

 
ADVFN  Morning Euro Markets Bulletin
Daily world financial news Monday, 06 November 2017 09:28:37
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London Market Report
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London open: Stocks flat after busy week; Aldermore rallies

London stocks were flat in early trade on Monday as investors paused for breath after an eventful week.

At 0845 BST, the FTSE 100 was flat at 7,558.68, while the pound was up 0.1% against the euro and the dollar at 1.1280 and 1.3089, respectively.

Spreadex analyst Connor Campbell said: "After a bombardment of news - including a Fed statement, dovish Bank of England rate hike and mixed US non-farm jobs report - investors may struggle to scrape together anything of note in the first full week of November.

"Befitting a tame economic calendar, the markets have gotten off to an achingly slow start. The FTSE opened flat, just a smidge below 7560, meaning with a bit of luck it could find itself to a fresh all-time high at some point this week. A decent smattering of gains in the commodity sector, specifically the miners, is helping prop the UK index up, following a 1.2% jump from copper.

"As for the pound, it is continuing to show little interest in recovering last week's post-BoE losses."

In corporate news, challenger bank Aldermore rose after it recommended a bid from South Africa's First Rand bank, as well as reporting 12% growth in net loans by the end of the third quarter.

Rio Tinto advanced as it appointed Simon Trott to the newly-created role of chief commercial officer as it reinforces its focus on driving value across the business from mine to market.

Mitie and Tate & Lyle were boosted by upgrades at Jefferies and Investec, respectively, while GKN was up after Investec lifted the stock to 'buy'.

Plastics maker Synthomer fell after it said sales volumes in the third quarter remained flat on last year and that it continued to hunt for acquisition opportunities.

EasyJet flew lower despite reporting a 9.9% jump in passenger numbers for October as the load factor ticked higher, but Wizz Air fared much better after its October traffic stats.

Redefine was in the red after announcing the successful exchange of contracts with Patrizia Immobilien AG for the sale of a German supermarket portfolio, with completion anticipated to take place in December 2017.

Morgan Advanced Materials retreated despite saying it is trading in line with its expectations as it reaffirmed its outlook for the full year.

Healthcare company BTG was weaker as it said it will pay a £55.3m provision after the final ruling in its patent dispute with WellStat Therapeutics went against the company.

IWG was hit by a downgrade to 'sector perform' at RBC Capital Markets.


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Market Movers

FTSE 100 (UKX) 7,558.68 -0.02%
FTSE 250 (MCX) 20,428.76 -0.21%
techMARK (TASX) 3,567.38 -0.26%

FTSE 100 - Risers

Convatec Group (CTEC) 191.40p 5.16%
BHP Billiton (BLT) 1,458.00p 2.14%
Anglo American (AAL) 1,515.00p 2.02%
NMC Health (NMC) 3,150.00p 1.97%
Rio Tinto (RIO) 3,793.50p 1.84%
GKN (GKN) 323.60p 1.67%
Severn Trent (SVT) 2,156.00p 1.17%
Randgold Resources Ltd. (RRS) 7,015.00p 1.01%
Antofagasta (ANTO) 998.00p 0.81%
Fresnillo (FRES) 1,300.00p 0.78%

FTSE 100 - Fallers

Barclays (BARC) 180.70p -1.39%
Johnson Matthey (JMAT) 3,470.00p -0.94%
InterContinental Hotels Group (IHG) 4,325.00p -0.87%
Morrison (Wm) Supermarkets (MRW) 217.30p -0.78%
Reckitt Benckiser Group (RB.) 6,536.00p -0.71%
Ashtead Group (AHT) 1,963.00p -0.71%
easyJet (EZJ) 1,305.00p -0.68%
Prudential (PRU) 1,855.50p -0.67%
Babcock International Group (BAB) 812.50p -0.61%
G4S (GFS) 284.80p -0.59%

FTSE 250 - Risers

Mitie Group (MTO) 251.40p 5.54%
Tullow Oil (TLW) 196.80p 3.20%
Cairn Energy (CNE) 224.50p 3.17%
Aldermore Group (ALD) 309.80p 2.45%
Lancashire Holdings Limited (LRE) 757.50p 2.23%
Sophos Group (SOPH) 617.00p 1.90%
Tate & Lyle (TATE) 703.00p 1.88%
Euromoney Institutional Investor (ERM) 1,178.00p 1.73%
Playtech (PTEC) 781.00p 1.43%
Hunting (HTG) 537.50p 1.42%

FTSE 250 - Fallers

BTG (BTG) 734.00p -5.78%
Redefine International (RDI) 38.09p -1.96%
Inmarsat (ISAT) 583.00p -1.93%
Greene King (GNK) 545.50p -1.89%
Sports Direct International (SPD) 394.30p -1.65%
TP ICAP (TCAP) 492.10p -1.58%
IWG (IWG) 218.40p -1.58%
JD Sports Fashion (JD.) 357.90p -1.38%
Morgan Advanced Materials (MGAM) 320.70p -1.32%


The Top 10 Stocks for Q4

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UK Event Calendar

Monday November 06

INTERIMS
Grafenia

INTERIM DIVIDEND PAYMENT DATE
Elecosoft, Huntsworth, Manx Telecom , Morrison (Wm) Supermarkets, Safestyle UK , Synthomer, WPP

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Factory Orders (GER) (07:00)
PMI Composite (EU) (09:00)
PMI Composite (GER) (08:55)
PMI Services (EU) (09:00)
PMI Services (GER) (08:55)
Producer Price Index (EU) (10:00)

GMS
Hilton Food Group

FINALS
Beximco Pharmaceuticals Ltd. GDR (Reg S)

AGMS
Genesis Emerging Markets Fund Ltd Ptg NPV, Mid Wynd International Inv Trust, Murray Income Trust

TRADING ANNOUNCEMENTS
Morgan Advanced Materials , Morgan Advanced Materials

FINAL DIVIDEND PAYMENT DATE
CPL Resources, Schroder Japan Growth Fund


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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.


Hargreaves Lansdown

Top of the stocks

Number of Deals Bought

Place EPIC Equity name %
1 GSK GlaxoSmithKline plc 3.66
2 GGP Greatland Gold Plc 1.97
3 LLOY Lloyds Banking Group plc 1.70
4 UKOG UK Oil & Gas Investments plc 1.65
5 SMT Scottish Mortgage Investment Trust 1.50
6 BT.A BT Group plc 1.50
7 IQE IQE plc 1.48
8 XBT Provider AB 1.16
9 PTEC Playtech plc 1.12
10 AST Ascent Resources plc 1.02

Number of Deals Sold

Place EPIC Equity name %
1 BP. BP Plc 1.88
2 FEVR Fevertree Drinks plc 1.75
3 IQE IQE plc 1.73
4 UKOG UK Oil & Gas Investments plc 1.69
5 LLOY Lloyds Banking Group plc 1.56
6 RDSB Royal Dutch Shell Plc B Shares 1.28
7 BT.A BT Group plc 1.27
8 GGP Greatland Gold Plc 1.26
9 GLEN Glencore plc 0.95
10 BOO Boohoo.com 0.93
 

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