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Dec 13, 2017

Morning Euro Markets Bulletin

 
ADVFN  Morning Euro Markets Bulletin
Daily world financial news Wednesday, 13 December 2017 10:41:20
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London Market Report
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London open: Stocks flat ahead of jobs data, Fed rate announcement

London stocks were little changed in early trade on Wednesday as investors kept their powder dry ahead of UK jobs data and a widely expected rate hike from the US Federal Reserve.

At 0840 GMT, the FTSE 100 was flat at 7,503.60, while the pound was steady against the dollar and the euro at 1.3315 and 1.1339, respectively.

The Office for National Statistics will reveal the ILO unemployment rate, average earnings and claimant count at 0930 GMT.

The average earnings index is expected to see its best reading since February, with analysts forecast a jump to 2.5% including bonuses. The unemployment rate, meanwhile, is set to fall from 4.3% to 4.2%, while the claimant count change is expected to rise from 1.1k to 3.3k month-on-month.

Spreadex analyst Connor Campbell said: "If all these estimates are accurate, then sterling may be able to get its mojo back. However, the fact that this afternoon sees a pre-Fed meeting inflation reading from the US - one that could dictate whether the statement accompanying the near-guaranteed rate hike is on the dovish or hawkish end of the spectrum - might prevent the pound from getting too carried away."

The Fed will make its rate announcement at 1900 GMT amid expectations of a 0.25% hike.

In corporate news, TUI Group was the standout gainer after it saying it expects to achieve at least 10% earnings growth in 2018 after reporting a healthy increase for last year, while Serco rose after saying it expects underlying trading profit for 2017 to be at the top end of its previous guidance.

British American Tobacco nudged higher after saying it is continuing to perform well, in line with expectations.

Dixons Carphone surged as it pledged to simplify its mobile business after a slump in profits in the first half, with the retailer clinging onto market share and maintaining its dividend.

Essentra was a little higher as it announced the acquisition of Micro Plastics for an undisclosed cash consideration.

Quality assurance provider Intertek Group ticked lower as it announced the acquisition of US-based security certification solutions provider Acumen Security for an undisclosed consideration.

Wood Group was in the red after saying proforma earnings before interest, tax, depreciation and amortisation will be in the region of $590m to $610m.

On the broker note front, Ashmore was lifted by upgrade to 'neutral' at JPMorgan, while NEX was boosted by an upgrade to 'overweight' from the same outfit.

Berkeley Group and Sports Direct were hit by downgrades to 'hold' at Jefferies, while Britvic was weaker after Shore Capital cut the stock to 'sell'.


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Market Movers

FTSE 100 (UKX) 7,503.60 0.04%
FTSE 250 (MCX) 20,079.61 0.03%
techMARK (TASX) 3,487.14 0.10%

FTSE 100 - Risers

TUI AG Reg Shs (DI) (TUI) 1,440.00p 2.20%
HSBC Holdings (HSBA) 768.70p 1.53%
Paddy Power Betfair (PPB) 8,537.50p 1.10%
Experian (EXPN) 1,617.00p 0.81%
ITV (ITV) 165.66p 0.77%
Relx plc (REL) 1,726.00p 0.64%
Glencore (GLEN) 349.60p 0.62%
British American Tobacco (BATS) 5,070.00p 0.52%
Anglo American (AAL) 1,387.50p 0.51%
Randgold Resources Ltd. (RRS) 6,775.00p 0.44%

FTSE 100 - Fallers

Ashtead Group (AHT) 1,969.00p -4.42%
Barratt Developments (BDEV) 623.00p -1.50%
Persimmon (PSN) 2,619.00p -1.24%
Berkeley Group Holdings (The) (BKG) 4,052.00p -1.17%
Taylor Wimpey (TW.) 199.10p -1.14%
Severn Trent (SVT) 2,098.00p -1.04%
Aviva (AV.) 507.00p -0.98%
Shire Plc (SHP) 3,730.50p -0.80%
DCC (DCC) 6,970.00p -0.71%
Imperial Brands (IMB) 3,082.50p -0.69%

FTSE 250 - Risers

Serco Group (SRP) 108.30p 13.58%
Dixons Carphone (DC.) 180.20p 7.65%
Sanne Group (SNN) 749.50p 3.45%
Nex Group (NXG) 588.00p 2.89%
Ashmore Group (ASHM) 395.70p 2.41%
Diploma (DPLM) 1,172.00p 2.00%
Spire Healthcare Group (SPI) 245.10p 2.00%
Saga (SAGA) 128.80p 1.82%
Restaurant Group (RTN) 281.80p 1.81%
Provident Financial (PFG) 815.00p 1.75%

FTSE 250 - Fallers

Sports Direct International (SPD) 381.50p -1.93%
Euromoney Institutional Investor (ERM) 1,160.00p -1.86%
Workspace Group (WKP) 906.50p -1.79%
Bellway (BWY) 3,492.31p -1.71%
Hochschild Mining (HOC) 232.60p -1.65%
Homeserve (HSV) 796.50p -1.61%
Crest Nicholson Holdings (CRST) 515.50p -1.53%
SIG (SHI) 168.70p -1.46%
Travis Perkins (TPK) 1,556.00p -1.39%


UK Event Calendar

Wednesday December 13

INTERIMS
Cohort, Dixons Carphone , OPG Power Ventures, Purplebricks Group

QUARTERLY PAYMENT DATE
M Winkworth, Unilever

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Price Index (GER) (07:00)
Consumer Price Index (US) (13:30)
Crude Oil Inventories (US) (15:30)
Industrial Production (EU) (10:00)
MBA Mortgage Applications (US) (12:00)

FINALS
TUI AG Reg Shs (DI)

AGMS
Alternative Liquidity Fund Limited, Avanti Communications Group, Bellway, BowLeven, BowLeven, Henderson Far East Income Ltd., Infrastructure India, Physiomics, Residential Secure Income, Volution Group (WI), World Careers Network

TRADING ANNOUNCEMENTS
Bellway, Dixons Carphone , Serco Group

UK ECONOMIC ANNOUNCEMENTS
Claimant Count Rate (09:30)

FINAL DIVIDEND PAYMENT DATE
Aberdeen Frontier Markets Investment Company

FINAL EX-DIVIDEND DATE
Royal Bank of Scotland Ser 1 Non-Cum Eur Prf (144a)


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2 Ethereum (ETH) 62,800,617,547 644.76 +21.9%
3 Bitcoin Cash / BCC (BCH) 26,182,885,977 1,549.06 +5.28%
4 Ripple (XRP) 18,679,163,384 0.477612 +77.13%
5 Litecoin (LTC) 16,455,822,853 296.4 +21.31%

 

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US Market Report

US close: Markets mixed as Fed finishes first day of meeting

Wall Street's main indices finished mixed on Tuesday as the Federal Reserve kicked off its two-day rate-setting meeting, alongside several positive updates from corporate heavyweights such as Boeing and 3M.

The Dow Jones Industrial Average finished up 0.49% at 24,504.80 and the S&P 500 added 0.15% to 2,664.11, while the Nasdaq 100 fell 0.16% to settle at 6,383.65.

On the economic front, US factory gate prices advanced at a 3.1% clip year-on-year in November, against consensus expectations for 3.0%, with the details of the report leading economists at Barclays and Pantheon Macroeconomics to conclude that inflationary pressures were in the pipeline.

In parallel, the NFIB reported that its small business confidence gauge jumped back to a Reagan-era high of 107.5 last month, the second best reading in that gauge's 44-year history.

Losses for oil were triggered by a statement from the International Energy Agency saying it was monitoring events around the Forties North Sea pipeline, but that there was no reason to act as the market remained well-supplied.

Ahead of the FOMC announcement due on Wednesday, analysts at Rabobank said: "A raise in the target range for the federal funds rate to 1.25-1.50%, from 1.00-1.25%, is widely expected.

On the corporate front, aerospace group Boeing was 2.42% higher after saying late on Monday that it was lifting its dividend and announced a new $18bn share buyback.

Comcast shares were also active, rising 2.78% after the company said it no longer planned to make a bid for the entertainment assets of 21st Century Fox, leaving Walt Disney as the sole bidder.

Post-it maker 3M was in focus as well, losing 1.12% after saying it expected 2017 earnings per share and sales growth at the top half of the guidance range.

JetBlue Airways stock ended the session 2.7% lower despite the carrier having raised its fourth quarter revenue guidance, saying the impact from the hurricanes in the Gulf of Mexico had been less than anticipated.

Dow Jones - Risers

Goldman Sachs Group Inc. (GS) $257.68 3.02%
Merck & Co. Inc. (MRK) $57.07 2.70%
Verizon Communications Inc. (VZ) $53.19 2.60%
Boeing Co. (BA) $289.94 2.39%
Pfizer Inc. (PFE) $36.59 2.35%
General Electric Co. (GE) $17.91 1.47%
Johnson & Johnson (JNJ) $142.60 1.43%
Visa Inc. (V) $113.51 0.96%
Travelers Company Inc. (TRV) $134.31 0.87%
JP Morgan Chase & Co. (JPM) $106.85 0.87%

Dow Jones - Fallers

Intel Corp. (INTC) $43.33 -0.76%
3M Co. (MMM) $236.56 -0.65%
Chevron Corp. (CVX) $119.68 -0.61%
Procter & Gamble Co. (PG) $89.85 -0.58%
Apple Inc. (AAPL) $171.70 -0.56%
McDonald's Corp. (MCD) $172.23 -0.53%
Exxon Mobil Corp. (XOM) $82.77 -0.33%
Wal-Mart Stores Inc. (WMT) $96.70 -0.26%
Home Depot Inc. (HD) $181.80 -0.25%
Caterpillar Inc. (CAT) $143.41 -0.24%

S&P 500 - Risers

Tenet Healthcare Corp. (THC) $14.91 11.85%
Mallinckrodt Plc Ordinary Shares (MNK) $24.07 7.89%
Mosaic Company (MOS) $24.84 5.08%
Freeport-McMoRan Inc (FCX) $15.71 4.59%
Seagate Technology Plc (STX) $42.12 4.08%
AT&T Inc. (T) $38.10 3.73%
CF Industries Holdings Inc. (CF) $40.60 3.05%
Goldman Sachs Group Inc. (GS) $257.68 3.02%
Nucor Corp. (NUE) $61.95 2.96%
Comcast Corp. (CMCSA) $39.51 2.78%

S&P 500 - Fallers

Edison International (EIX) $68.58 -6.03%
Iron Mountain Inc (New) (IRM) $37.81 -5.78%
Mattel Inc. (MAT) $14.62 -4.88%
Ameren Corp. (AEE) $61.36 -3.61%
Martin Marietta Mtrl (MLM) $207.25 -3.20%
Amer Water Works (AWK) $89.32 -3.18%
Kimberly-Clark Corp. (KMB) $116.42 -3.09%
NiSource Inc. (NI) $26.39 -2.91%
Sempra Energy (SRE) $114.85 -2.82%
Micron Technology Inc. (MU) $41.86 -2.67%

Nasdaq 100 - Risers

Seagate Technology Plc (STX) $42.12 4.08%
Tesla Inc (TSLA) $341.03 3.68%
Comcast Corp. (CMCSA) $39.51 2.78%
Mercadolibre Inc. (MELI) $295.12 2.19%
Activision Blizzard Inc. (ATVI) $64.40 1.95%
Alexion Pharmaceuticals Inc. (ALXN) $113.60 1.52%
Liberty Global plc Series A (LBTYA) $32.00 1.43%
Liberty Global plc Series C (LBTYK) $31.13 1.37%
Twenty-First Century Fox Inc Class A (FOXA) $34.10 1.31%
Tractor Supply Company (TSCO) $67.84 1.03%

Nasdaq 100 - Fallers

Micron Technology Inc. (MU) $41.86 -2.67%
Applied Materials Inc. (AMAT) $50.47 -2.23%
Lam Research Corp. (LRCX) $181.57 -2.15%
Nvidia Corp. (NVDA) $190.84 -1.96%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $53.65 -1.96%
Incyte Corp. (INCY) $95.40 -1.90%
Microchip Technology Inc. (MCHP) $85.84 -1.77%
American Airlines Group (AAL) $50.47 -1.62%
Fastenal Co. (FAST) $52.96 -1.60%


Hargreaves Lansdown

Top of the stocks

Number of Deals Bought

Place EPIC Equity name %
1 XBT Provider AB 3.98
2 XBT Provider AB 2.61
3 SAGA Saga plc 2.47
4 LION Lionsgold Limited 1.79
5 GSK GlaxoSmithKline plc 1.73
6 SMT Scottish Mortgage Investment Trust 1.61
7 VRS Versarien plc 1.57
8 LLOY Lloyds Banking Group plc 1.48
9 PYC Physiomics plc 1.37
10 IQE IQE plc 1.37

Number of Deals Sold

Place EPIC Equity name %
1 XBT Provider AB 3.03
2 LLOY Lloyds Banking Group plc 2.23
3 XBT Provider AB 1.76
4 LION Lionsgold Limited 1.45
5 PYC Physiomics plc 1.34
6 TSCO Tesco plc 1.23
7 SMT Scottish Mortgage Investment Trust 1.22
8 BOO Boohoo.com 1.19
9 GGP Greatland Gold Plc 1.05
10 VRS Versarien plc 1.04

Newspaper Round Up

Wednesday newspaper round-up: Ryanair, Uber, Walt Disney/21st Century Fox

The World Bank will end its financial support for oil and gas exploration within the next two years in response to the growing threat posed by climate change. In a statement that delighted campaigners opposed to fossil fuels, the Bank used a conference in Paris to announce that it “will no longer finance upstream oil and gas” after 2019. – Guardian

Pilots working for Ryanair in Ireland have called a one-day strike next week, potentially disrupting flights for Europe's biggest airline on its home territory. Flights to and from Dublin, Shannon and Cork are likely to be affected by the walkout on Wednesday. The action has been taken in a bid to win collective representation in pay deals rather than through Ryanair's own employee channels. - Guardian

York has become the third UK city to refuse Uber a licence to operate, citing concerns about the ride-hailing company's 2016 data breach, which affected 2.7m British users and drivers, and customer complaints. The City of York council's gambling, licensing and regulatory committee had been considering an application by Uber Britannia Ltd to renew its private hire operator's licence in York at a meeting late on Tuesday, but ultimately the councillors decided to refuse the application. ?" Telegraph

Canada's government has launched a fresh attack in the row over the US imposing import tariffs on airliners built by Bombardier, a move which threatened UK jobs. Launching a tender to buy 88 new fighters, the Canadian government referenced tension with the US after Boeing-led a campaign for trade levies on imports of Bombardier's C-Series airliners. ?" Telegraph

Walt Disney is on the verge of clinching a deal to acquire a sizeable part of Rupert Murdoch's 21st Century Fox entertainment group in a deal worth about $60 billion that could be announced as early as tomorrow. Negotiations were moving quickly last night for a deal in which Disney would take control of 21st Century Fox's stake in Sky, the European broadcaster, as well as 20th Century Fox, its Hollywood film studio business, plus a string of other companies including Star India. The rest of Fox's assets, including Fox News Channel, would be spun off into a separate company worth about $10 a share, according to reports. - The Times

An explosion at the Baumgarten gas facility in Austria yesterday left one dead, 21 injured and melted plastic on cars up to half a kilometre away, but its shockwaves were felt even further afield. With Europe in the grip of a cold snap and about a fifth of the UK's gas production already forced to shut down after the closure of the Forties pipeline, the loss of the key gas hub in Austria that processes supplies from Russia sent prices up across the Continent. ?" The Times


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