Evening Euro Markets Bulletin

ADVFN III Evening Euro Markets Bulletin Daily world financial news Friday, 08 December 2017 17:48:44 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: Stocks dip as miners weigh and pound rallies London stocks were not able to hold onto their modest early gains and closed in the red on Thursday as late pressure came from the pound on renewed optimism over a Brexit deal. The FTSE 100 ended 0.37% lower at 7,320.75, as the pound recovered from earlier lows to climb 0.3% against the euro and dollar to 1.1390 and 1.3430 respectively. With Thursday's trading relatively becalmed as markets position themselves ahead of the key US non-farm jobs report at the end of the week, the FTSE suffered at the hands of a strengthening pound and weak session for insurance firms and miners, noted analyst Joshua Mahony at IG. "While many markets have been seen somewhat of a serene session, the same cannot be said for Bitcoin which seems to go from strength to strength amid the rise to $16,000. Incredibly this rally seems to know no bounds, with the news of a massive hack totaling over $64m batted off in favour of new record highs." Brexit was at the forefront of many traders' minds as the European Commission said the UK had a deadline of Sunday to agree a text on a potential deal or it will be told that negotiations cannot proceed to the next stage. Analyst David Cheetham at forex broker XTB said volatility in the pound against the euro has been rising fairly strongly this week and currently sit at levels not seen since June as Brexit talks keep the market on tenterhooks. "Reports this morning that UK PM Theresa May has prepared another Brexit proposal to submit to Ireland in a bid to settle the border dispute have boosted sterling, but until there is official confirmation of a deal the pound's gains will be capped. An EU summit that kicks off this time next week has been earmarked as an event where the Brexit talks can progress to trade negotiations, but this would likely require a resolution on the Irish border by tomorrow at the latest." Property investors were also digesting the latest research from Halifax, which showed house prices are continuing to surge higher, running contrary to most other surveys of the housing market. The Halifax house price index increased by 0.5% month-to-month in November, slightly above the consensus forecast of 0.2% and following a 0.3% increase in October to mark the fifth rise in a row. Growth in the past three months compared to the same period last year slowed to 3.9%, from the 4.5% announced a month ago, which was expected by the market. Pantheon Macroeconomics said it remains inclined to place much more weight on the Nationwide and Rightmove measures. "Looking ahead, we remain concerned that even relatively small increases in mortgage rates - in response to last month's Bank Rate hike and the impending closure of the Term Funding Scheme - will reduce the size of mortgages that households take out, while falling consumer confidence will additionally subdue demand. As such, we still expect house prices merely to flatline over the next 12 months." In corporate news, Sky gained following reports that US cable network Comcast was interested in taking full control of the broadcaster, joining Disney in the pursuit of several assets from Rupert Murdoch's 21st Century Fox. Ladbrokes Coral leapt 29% on news is it in advanced talks with GVC Holdings about a possible £3.9bn takeover of the bookmaker. GVC was also sharply higher. Elsewhere in the sector William Hill also surged more than 8% after it settled a dispute with NYX, a Toronto-listed gaming software company in which the bookmaker owns a stake. Coca-Cola HBC edged up after it appointed Zoran Bogdanovic as its new chief executive officer with immediate effect, succeeding Dimitris Lois who passed away in October. Building materials group CRH was on the front foot after deciding not to bid for South African rival PPC. On the downside, packaging and paper group DS Smith reversed earlier gains to trade a touch lower after saying sales increased strongly in the first half of the year but profits grew more slowly due to higher paper prices. Legal & General reversed early gains after saying it expected a record year for profits and earnings with growth accelerating across its businesses. Heavily-weighted miners lost ground as copper and iron prices declined, with Rio Tinto, Anglo American and Glencore all weaker. Cobham was on the back foot after a downgrade to 'reduce' at Kepler Cheuvreux, while Babcock was down as its stock went ex-dividend. 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 Market Movers FTSE 100 (UKX) 7,320.75 -0.37% FTSE 250 (MCX) 19,810.27 -0.09% techMARK (TASX) 3,410.10 -0.02% FTSE 100 - Risers Pearson (PSON) 737.00p 2.22% BT Group (BT.A) 262.75p 2.16% Mediclinic International (MDC) 590.50p 1.46% Vodafone Group (VOD) 227.85p 1.36% Hammerson (HMSO) 508.00p 1.30% Fresnillo (FRES) 1,279.00p 1.27% Worldpay Group (WPG) 418.80p 1.26% Smurfit Kappa Group (SKG) 2,356.00p 1.12% Convatec Group (CTEC) 209.70p 1.06% Reckitt Benckiser Group (RB.) 6,615.00p 0.98% FTSE 100 - Fallers Babcock International Group (BAB) 654.50p -3.47% Admiral Group (ADM) 1,847.00p -2.59% Associated British Foods (ABF) 2,852.00p -2.33% Direct Line Insurance Group (DLG) 357.10p -2.16% Rio Tinto (RIO) 3,440.50p -1.66% Standard Life Aberdeen (SLA) 413.10p -1.60% Whitbread (WTB) 3,928.00p -1.55% Centrica (CNA) 144.80p -1.50% St James's Place (STJ) 1,152.00p -1.45% Ferguson (FERG) 5,330.00p -1.39% FTSE 250 - Risers Ladbrokes Coral Group (LCL) 175.10p 29.03% William Hill (WMH) 315.80p 8.10% GVC Holdings (GVC) 954.50p 5.01% Sophos Group (SOPH) 550.50p 4.76% Aveva Group (AVV) 2,693.00p 3.86% 888 Holdings (888) 269.70p 3.73% JD Sports Fashion (JD.) 329.00p 3.46% TalkTalk Telecom Group (TALK) 148.50p 2.91% Fisher (James) & Sons (FSJ) 1,571.00p 2.75% Just Group (JUST) 162.40p 2.41% FTSE 250 - Fallers Aggreko (AGK) 787.50p -3.55% Vedanta Resources (VED) 633.50p -3.21% Greene King (GNK) 508.50p -3.05% Investec (INVP) 483.00p -2.93% Britvic (BVIC) 796.50p -2.87% PayPoint (PAY) 890.00p -2.79% Electra Private Equity (ELTA) 935.00p -2.71% Smith (DS) (SMDS) 525.00p -2.60% Halfords Group (HFD) 331.60p -2.59% Join a Q&A with eToro's top popular investor, Jaynemesis! Understand how he made over 200% returns trading cryptocurrencies this year.  @ 3pm GMT on Friday, 8th December. Click here to tune in! 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: Coal, Metals stocks jump on Chinese data Wall Street is climbing going into the weekend with commodity stocks pacing gains on the back of strong Chinese trade data for the month of November, even as the latest jobs report revealed wage growth fell short of forecasts once again last month. At 1541 GMT, the Dow Jones Industrial Average was up by 0.24% or 58.69 points to 24,271.57, alongside gains of 0.66% or 44.75 points to 6,857.83 for the S&P 500 and a rise of 0.39% or 10.46 points to 2,647.40 on the Nasdaq Composite. From a sector standpoint, the biggest gains were being recorded in the following market groups: Coal (12.50%), Non-ferrous metals (3.41%) and Iron & Steel (2.64%). Stoking gains in the above segments of the market, overnight China's Customs Administration reported much stronger than expected readings on the country's exports and imports for November, including an acceleration in the pace of commodity import volumes from a 0.9% year-on-year clip in October to 6.1% last month. In parallel, the yield on the benchmark 10-year US Treasury note was up by one basis point to 2.38%, with the US dollar spot index up by 0.14% to 93.929 but gold down by 0.27% to $57.47/oz. on COMEX - a near four-and-a-half month low. Helping to boost sentiment, the Department of Labor reported that US non-farm payrolls increased by 228,000 in November (consensus: 200,000), which was well above the roughly 90,000 monthly gain needed to keep up with new entrants into the jobs market, according to economists. However, average hourly earnings advanced at just a 2.5% year-on-year clip last month, undershooting projections calling for a gain of 2.7%. Be that as it may, Blerina Uruci and Pooja Sriram at Barclays Research said: "FOMC members view the longer run rate of UR as 4.6%, indicating that at current levels and given the continued solid increases in employment, the risk of a substantial undershooting of the Fed's long-run unemployment rate is rising. "In our view, this suggests that gradual normalization of monetary policy will likely continue next year even amid sub-target outturns on inflation." In corporate news, gun-maker American Outdoor Brands was sharply lower after the company posted a large drop in third-quarter revenues and cut its forecast for annual earnings. Shares in food distributor United Natural Foods were higher following its first-quarter earnings on Thursday. Elsewhere, stock in Denali Therapeutics was trading slightly lower after pricing its stockmarket float at the midpoint of its proposed pricing range. MSG Networks was going the other way, with its Board having announced a $150m share buyback programme. GigCapital was also tarding a bit lower on the day of its stockmarket debut. Dow Jones - Risers Caterpillar Inc. (CAT) $143.50 2.25% Boeing Co. (BA) $284.50 2.24% Microsoft Corp. (MSFT) $84.03 1.86% Nike Inc. (NKE) $61.29 1.15% Home Depot Inc. (HD) $182.65 1.02% Visa Inc. (V) $112.41 0.91% Goldman Sachs Group Inc. (GS) $247.50 0.63% American Express Co. (AXP) $98.80 0.60% Apple Inc. (AAPL) $170.22 0.53% Johnson & Johnson (JNJ) $140.68 0.48% Dow Jones - Fallers Coca-Cola Co. (KO) $45.21 -1.25% Walt Disney Co. (DIS) $104.40 -1.01% Travelers Company Inc. (TRV) $133.05 -0.86% 3M Co. (MMM) $239.06 -0.52% Procter & Gamble Co. (PG) $89.71 -0.43% Wal-Mart Stores Inc. (WMT) $96.56 -0.23% JP Morgan Chase & Co. (JPM) $104.39 -0.22% Chevron Corp. (CVX) $119.59 -0.02% McDonald's Corp. (MCD) $172.90 -0.01% Exxon Mobil Corp. (XOM) $82.57 0.02% S&P 500 - Risers CF Industries Holdings Inc. (CF) $39.41 7.82% Alexion Pharmaceuticals Inc. (ALXN) $113.60 6.39% Edison International (EIX) $72.56 5.59% Edwards Lifesciences Corp. (EW) $118.00 4.09% Delta Airlines Inc. (DAL) $54.35 3.92% Freeport-McMoRan Inc (FCX) $14.86 3.55% CenturyLink Inc. (CTL) $14.28 3.22% Celgene Corp. (CELG) $106.03 3.21% Centene Corp. (CNC) $101.42 2.95% Cummins Inc. (CMI) $169.90 2.73% S&P 500 - Fallers H&R Block Inc. (HRB) $27.80 -4.10% Ball Corp (BLL) $39.28 -3.73% DaVita Inc (DVA) $67.18 -2.92% General Mills Inc. (GIS) $55.88 -2.67% Campbell Soup Co. (CPB) $48.94 -2.50% EQT Corp. (EQT) $55.81 -2.39% Viacom Inc. Class B (VIAB) $29.01 -2.11% Dr Pepper Snapple Group Inc. (DPS) $93.12 -1.93% Cardinal Health Inc. (CAH) $58.76 -1.61% Coca-Cola European Partners Limited (CCE) $38.91 -1.59% Nasdaq 100 - Risers Alexion Pharmaceuticals Inc. (ALXN) $113.60 6.39% Celgene Corp. (CELG) $106.03 3.21% eBay Inc. (EBAY) $37.85 2.70% Incyte Corp. (INCY) $97.13 2.43% Hologic Inc. (HOLX) $42.69 2.42% Shire Plc Ads (SHPG) $146.75 2.36% Mercadolibre Inc. (MELI) $278.60 2.17% Western Digital Corp. (WDC) $80.03 2.14% Micron Technology Inc. (MU) $44.07 2.01% Vertex Pharmaceuticals Inc. (VRTX) $141.32 1.83% Nasdaq 100 - Fallers Viacom Inc. Class B (VIAB) $29.01 -2.11% Twenty-First Century Fox Inc Class B (FOX) $33.36 -1.21% Twenty-First Century Fox Inc Class A (FOXA) $33.81 -1.10% Starbucks Corp. (SBUX) $58.53 -1.03% Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $219.93 -0.75% Kraft Heinz Co. (KHC) $78.85 -0.64% Align Technology Inc. (ALGN) $239.84 -0.64% Autodesk Inc. (ADSK) $109.05 -0.51% Paypal Holdings Inc (PYPL) $73.39 -0.41% Top of the stocks Number of Deals Bought Place EPIC Equity name % 1 PYC Physiomics plc 3.35 2 XBT Provider AB 2.48 3 LLOY Lloyds Banking Group plc 2.47 4 SMT Scottish Mortgage Investment Trust 2.14 5 GSK GlaxoSmithKline plc 1.90 6 VRS Versarien plc 1.67 7 XBT Provider AB 1.67 8 XBT Provider AB 1.47 9 GGP Greatland Gold Plc 1.30 10 CNA Centrica plc 1.18 Number of Deals Sold Place EPIC Equity name % 1 PYC Physiomics plc 3.48 2 LLOY Lloyds Banking Group plc 1.98 3 XBT Provider AB 1.81 4 VRS Versarien plc 1.49 5 GGP Greatland Gold Plc 1.24 6 RMG Royal Mail PLC 1.07 7 XBT Provider AB 1.04 8 CNA Centrica plc 1.03 9 UKOG UK Oil & Gas Investments plc 1.00 10 BARC Barclays plc 0.95 Broker Tips Broker tips: Carnival, Easyjet, Ted Baker Analysts at Morgan Stanley have upgraded their recommendation on cruise ship operator Carnival on the back of strong demand signals. Looking to the long-term, the broker was still worried about potential overcapacity in the cruise industry. "A lot is riding on China being able to absorb much of the industry order book," the broker said. More specifically, Morgan Stanley explained how the industry's order book had reached a record 235,000 berths, for supply growth of 45% out to 2025. Net of scrappage, that would equate to a roughly 6% compound annual rate of growth between 2017 and 2021. Hence, for the industry to sustain yield growth of between 2% and 3%, demand would need to rise by between 8% and 9% annually. "[Maintaining that rate] for four consecutive years seems optimistic and is much more than historical levels (6% demand, 1% yield, 5% capacity)," the analysts wrote in a research note sent to clients. Yet in 2017 stronger demand had outweighed record supply growth and a qualitative survey of US travel agents conducted by Morgan Stanley pointed to strong demand for cruises in November. Indeed, tax reform in the States might be set to further boost consumer income and confidence and a stockmarket at records was also helping, the broker added. JPMorgan Cazenove upgraded EasyJet to 'overweight' from 'underweight' and lifted the price target to 1,550p from 1,330p as it incorporates the acquired Air Berlin slots. The bank pointed to a "much improved" FY18 pricing outlook and estimated profit contributions from FY19 onward related to the slots EasyJet is taking over from Air Berlin. "There is no change to our standing concerns around Brexit-related uncertainty given EZJ's outsized exposure to UK point-of-sale. However, we believe the market is more likely to refocus on these risks after the summer peak season," JPM said. The bank projects a swing from the guided £60m FY18 Air Berlin pre-tax loss to a profit of £36m in FY19, largely owed to growth and load factor improvement more than offsetting a projected fare headwind of around 2%. 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