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Dec 28, 2017

Morning Euro Markets Bulletin

 
ADVFN  Morning Euro Markets Bulletin
Daily world financial news Thursday, 28 December 2017 09:29:18
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Stocks for your stocking this Christmas

As it’s the season for sharing Ian Forrest, investment research analyst at The Share Centre, comments on five companies that ‘yule’ likely see prosper as a result of the festive season.  Capital at risk.

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London Market Report
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London open: Stocks nudge up in thin volumes after record highs

London stocks nudged a little higher in early trade on Thursday after hitting fresh records the day before, but volumes and news were light as we head into the new year.

At 0830 GMT, the FTSE 100 was up 0.1% to 7,625.72, just under Wednesday's all-time intra-day high of 7,632.71. The top-flight index ended the previous session at a new high of 7,620.68, with mining companies driving the gains.

Meanwhile, the pound was down 0.1% against the euro at 1.1262 and up 0.4% versus the dollar at 1.3450.

Analyst Henry Croft at Accendo Markets said: "The US dollar extending its sell-off, falling to its lowest level since 1 December, has aided the commodities rally, while growth barometer Copper trading a fresh 4-year high has sparked confidence that global economic growth will be broadly positive in 2018."

Croft said some focus amid the holiday-lightened macroeconomic calendar will be UK mortgage approvals data, where expectations are for a rebound from October's 13-month low but still at lower levels than previous readings in 2017, reflecting a falling trend in official government statistics since July.

The mortgage approvals data is due at 0930 GMT.

A survey released earlier by the British Confederation of Industry early on Thursday showed that manufacturers, service sector companies and retailers reported the sharpest rise in output in two years in December.

The survey of 642 companies across the three sectors showed growth in the private sector in the three months to December rose to a balance of 19% from a balance of 6% in the three months to November and marking its highest reading since December 2015.

Anna Leach, head of economic intelligence at the CBI, said: "Private sector firms are enjoying healthy activity levels, but mediocre expectations for growth underline the ongoing challenges facing companies. Persistent cost pressures will ensure that inflation remains at a high level, perpetuating the squeeze on household spending."

Mining stocks put in another strong performance as metals prices rallied, with Anglo American, Antofagasta and Glencore among the top risers.

Elsewhere, Tritax Big Box REIT nudged up as it acquired a national distribution facility at Hickling Road in Cannock, Staffordshire, which is operated and let to Unilever UK for a total consideration of £44.25m.

BGEO Group ticked lower as its real estate subsidiary, m2 Real Estate, signed its first major third-party construction contract, the total value of which is $11.6m.

BT Group fell as its stock went ex-dividend.


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Market Movers

FTSE 100 (UKX) 7,625.72 0.07%
FTSE 250 (MCX) 20,614.10 -0.13%
techMARK (TASX) 3,525.90 -0.21%

FTSE 100 - Risers

Anglo American (AAL) 1,546.50p 1.48%
Antofagasta (ANTO) 995.50p 1.12%
Ferguson (FERG) 5,375.00p 0.94%
Old Mutual (OML) 229.90p 0.92%
Glencore (GLEN) 385.95p 0.73%
BHP Billiton (BLT) 1,496.50p 0.71%
Rio Tinto (RIO) 3,825.00p 0.67%
Randgold Resources Ltd. (RRS) 7,315.00p 0.62%
Diageo (DGE) 2,701.50p 0.60%
Rentokil Initial (RTO) 316.20p 0.54%

FTSE 100 - Fallers

BT Group (BT.A) 269.45p -1.75%
Standard Chartered (STAN) 769.30p -0.40%
Halma (HLMA) 1,265.00p -0.39%
British American Tobacco (BATS) 4,988.00p -0.34%
3i Group (III) 907.00p -0.33%
Micro Focus International (MCRO) 2,475.00p -0.24%
Sainsbury (J) (SBRY) 240.30p -0.21%
Land Securities Group (LAND) 997.00p -0.20%
CRH (CRH) 2,658.00p -0.19%
HSBC Holdings (HSBA) 762.20p -0.18%

FTSE 250 - Risers

Hochschild Mining (HOC) 260.70p 2.12%
Homeserve (HSV) 824.00p 1.29%
Investec (INVP) 542.50p 1.21%
Dunelm Group (DNLM) 692.50p 1.17%
Woodford Patient Capital Trust (WPCT) 84.44p 1.12%
Ferrexpo (FXPO) 295.00p 1.10%
Computacenter (CCC) 1,146.00p 1.06%
Kaz Minerals (KAZ) 847.00p 1.01%
Vedanta Resources (VED) 797.50p 0.89%
Petrofac Ltd. (PFC) 504.40p 0.88%

FTSE 250 - Fallers

NewRiver REIT (NRR) 334.91p -2.04%
Grafton Group Units (GFTU) 785.00p -1.63%
Dixons Carphone (DC.) 198.50p -1.24%
Grainger (GRI) 287.40p -1.24%
IWG (IWG) 251.40p -1.18%
McCarthy & Stone (MCS) 155.60p -1.14%
IP Group (IPO) 137.62p -1.14%
Ibstock (IBST) 259.70p -0.99%
esure Group (ESUR) 254.10p -0.97%


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Hargreaves Lansdown

Top of the stocks

Number of Deals Bought

Place EPIC Equity name %
1 XBT Provider AB 3.10
2 XBT Provider AB 3.03
3 SXX Sirius Minerals plc 2.59
4 IQE IQE plc 2.32
5 XBT Provider AB 2.01
6 VAL Valirx plc 1.82
7 LION Lionsgold Limited 1.43
8 XBT Provider AB 1.31
9 UKOG UK Oil & Gas Investments plc 1.16
10 SMT Scottish Mortgage Investment Trust 1.05

Number of Deals Sold

Place EPIC Equity name %
1 XBT Provider AB 3.30
2 XBT Provider AB 2.04
3 LLOY Lloyds Banking Group plc 1.75
4 XBT Provider AB 1.54
5 IQE IQE plc 1.23
6 VAL Valirx plc 1.12
7 UKOG UK Oil & Gas Investments plc 1.06
8 SXX Sirius Minerals plc 1.02
9 LION Lionsgold Limited 1.00
10 RMG Royal Mail PLC 0.96

Europe Market Report
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Europe open: Stocks dip as US dollar falls to September lows

Stocks have started the morning dipping slightly lower amid a retreat in the US dollar to its weakest level since September.

As of 0837 GMT, the benchmark Stoxx 600 was off by 0.09% or 0.33 points at 390.21, alongside a fall of 0.23% to 5,356.67 in the Cac-40 and a drop of 0.22% for the FTSE Mibtel to 22,155.27.

Meanwhile, the US dollar spot index was 0.38% lower to 92.667.

In the background, deadly attacks overnight in Russia and Afghanistan were reminding investors of the current difficult geopolitical backdrop.

On Wednesday evening, the explosion of a home-made bomb sowed chaos in a St.Petersburg supermarket, wounding at least 10 shoppers.

Further afield, a suicide attack on an office of Afghan Voice, in Kabul, claimed at least 40 victims.

At 0900, the European Central Bank was scheduled to release its monthly economic bulletin.

It would be followed later in the day by data on US foreign trade and on factory sector conditions in the Mid-West.

On the corporate front, Lufthansa was in the spotlight after Germany's anti-trust officials queried for further information on ticket prices after receiving complaints of price hikes in the wake of rival Air Berlin's demise.

Elsewhere, four of Italian lender Intesa San Paolo's top executives will step down in coming days, local daily Il Messaggero reported.

In other news, Standard&Poor's revised its outlook on the long-term corporate debt of Fresenius Medical Care from 'stable' to 'positive'.


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US Market Report

US close: Slight gains for stocks in subdued trading ahead of year-end

US stocks edged higher on Wednesday as investors digested the latest data on home sales and consumer confidence, with volumes light as many traders were still away from their desks for the holidays.

At the closing bell, the Dow Jones Industrial Average was up by 0.11% to 24,774.30, alongside a gain of 0.08% for the S&P 500 to 2,682.62 and a 0.04% advance on the Nasdaq Composite to 6,939.34.

From a sector standpoint, the strongest segments of the market were: Aluminum (2.90%), Transportation (1.69%), Hotels (1.30%), Gambling (1.02%) and Railroads (0.91%).

Oanda analyst Craig Erlam said: "This period between Christmas and New Year is often very quiet, with politicians and central banks endeavouring to wrap everything up ahead of the holiday period. With the US having got tax reform over the line last week and kicked the budget issue back to January at the last minute, investors have been left with little to turn their attention to.

"News flow aside, trade during this week is often very thin with large numbers of people taking the week off and the lack of volatility we've seen so far isn't exactly drawing traders back in. With the data calendar not looking particularly full over the coming days, I don't hold much hope for conditions improving dramatically."

In corporate news, shares of Boeing nudged higher after Morocco's Royal Air Maroc said it ordered four 787-9 Dreamliners valued at $1.1bn at list prices.

Apple was a little weaker following reports the technology giant is being sued for slowing down older iPhone models to compensate for poor battery performance.

Shares of Pareteum Corp were in the red following sharp gains in the previous session, when the company said it had "completed development enabling it to add support of Blockchain technology to its billing and settlement services".

Horizon Pharma rose after the company said it has received US Food and Drug Administration approval to expand the indication for its treatment for nephropathic cystinosis, a life-threatening metabolic disorder.

Electric car maker Tesla was in the red after chief executive Elon Musk promised to make a pick-up truck as part of future plans for the company. Musk made the pledge on Twitter after asking followers for suggestions about how the company could improve. Also on Wednesday KeyBanc cut its fourth-quarter estimates for Model 3 deliveries to around 5,000 from 15,000.

On the data front, pending home sales in the US edged higher last month, according to one of the sector's leading industry groups, but existing home sales were seen flatlining in 2018 due to sharp price growth and the impact of recently approved changes to the country's tax laws.

The National Association of Realtors' pending home sales index increased at a 0.2% month-on-month clip in November to reach 109.5, versus expectations for a 0.5% drop, and was left standing 0.8% above its year-earlier level.

"The strengthening economy, and expectation that more millennials will want to buy, serve as promising signs for solid homebuying demand next year, while also putting additional pressure on inventory levels and affordability," said NAR chief economist Lawrence Yun.

"Sales do have room for growth in most areas, but nationally, overall activity could be slightly negative. Markets with high home prices and property taxes will likely feel some impact from the reduced tax benefits of owning a home."

Elsewhere, data revealed that consumer confidence declined in December a month after hitting a 17-year high, although optimism among Americans this year was the highest since 2000.

The Conference Board's consumer confidence index fell to 122.1 in December from a revised 128.6 in November, missing expectations for a reading of 127.5.

Dow Jones - Risers

Visa Inc. (V) $114.03 0.91%
McDonald's Corp. (MCD) $172.67 0.81%
Caterpillar Inc. (CAT) $157.50 0.69%
American Express Co. (AXP) $99.14 0.57%
Unitedhealth Group Inc. (UNH) $220.42 0.37%
Microsoft Corp. (MSFT) $85.71 0.36%
Johnson & Johnson (JNJ) $140.56 0.34%
Pfizer Inc. (PFE) $36.32 0.33%
United Technologies Corp. (UTX) $127.57 0.32%
3M Co. (MMM) $236.20 0.32%

Dow Jones - Fallers

Nike Inc. (NKE) $62.94 -1.10%
Goldman Sachs Group Inc. (GS) $255.97 -0.69%
Walt Disney Co. (DIS) $107.64 -0.44%
Procter & Gamble Co. (PG) $92.10 -0.41%
Chevron Corp. (CVX) $125.48 -0.34%
General Electric Co. (GE) $17.38 -0.29%
Exxon Mobil Corp. (XOM) $83.88 -0.10%
Home Depot Inc. (HD) $190.15 -0.09%
Travelers Company Inc. (TRV) $134.76 -0.01%
Dowdupont Inc. (DWDP) $71.43 -0.00%

S&P 500 - Risers

Spectra Energy Corp. (SE) $13.38 2.92%
Alcoa Corporation (AA) $51.84 2.90%
Marriott International - Class A (MAR) $136.25 2.21%
Qorvo, Inc. (QRVO) $67.26 2.06%
Carnival Corp. (CCL) $66.75 1.63%
H&R Block Inc. (HRB) $26.44 1.52%
Wyndham Worldwide Corp. (WYN) $115.37 1.28%
Union Pacific Corp. (UNP) $136.30 1.25%
Applied Materials Inc. (AMAT) $51.68 1.23%
Western Digital Corp. (WDC) $80.96 1.20%

S&P 500 - Fallers

Macy's Inc. (M) $25.64 -4.51%
Chesapeake Energy Corp. (CHK) $3.88 -3.00%
Viacom Inc. Class B (VIAB) $30.98 -2.79%
Kohls Corp. (KSS) $55.29 -2.78%
L Brands Inc (LB) $61.26 -2.70%
NRG Energy Inc. (NRG) $27.70 -2.58%
Discovery Communications Inc. Class C (DISCK) $21.74 -2.51%
Celgene Corp. (CELG) $104.46 -2.35%
Discovery Communications Inc. Class A (DISCA) $23.05 -2.21%
Frontier Communications Co. (FTR) $6.81 -2.16%

Nasdaq 100 - Risers

Marriott International - Class A (MAR) $136.25 2.21%
Align Technology Inc. (ALGN) $226.45 1.30%
Applied Materials Inc. (AMAT) $51.68 1.23%
Western Digital Corp. (WDC) $80.96 1.20%
Incyte Corp. (INCY) $96.51 1.16%
Fastenal Co. (FAST) $54.71 1.07%
Wynn Resorts Ltd. (WYNN) $170.21 0.94%
Facebook Inc. (FB) $177.62 0.93%
Symantec Corp. (SYMC) $28.45 0.78%
Ctrip.Com International Ltd. Ads (CTRP) $44.64 0.77%

Nasdaq 100 - Fallers

Liberty Global Plc Lilac Class C (LILAK) $20.49 -3.49%
Liberty Interactive Corporation - Series A Liberty Ventures (LVNTA) $54.08 -3.36%
Liberty Global Plc Lilac Class A (LILA) $20.71 -3.18%
Celgene Corp. (CELG) $104.46 -2.35%
Charter Communications Inc. (CHTR) $333.25 -2.10%
Tesla Inc (TSLA) $311.64 -1.78%
Liberty Interactive Corporation QVC Group (QVCA) $25.34 -1.55%
Dish Network Corp. (DISH) $47.67 -1.39%
Hasbro Inc (HAS) $91.67 -1.22%


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Newspaper Round Up

Thursday newspaper round-up: Automation, business growth, Lloyds

The rise of the machine economy risks social disruption by widening the gap between rich and poor in Britain, as automation threatens jobs generating £290bn in wages. Jobs accounting for a third of annual pay in the UK risk being automated, according to the study by the IPPR thinktank. Warning that low-paid roles are in the greatest danger, it urged ministers to head off the prospect of rising inequality by helping people retrain and share in the benefits from advances in technology. – Guardian

The British economy has received a double boost from reports showing signs of modest wage growth and accelerating output from businesses. According to a study by the jobs search engine Adzuna, the average salary for vacancies advertised online in November was 1.2% higher than the same month a year before ?" the first annual increase recorded by the website since June 2015. Meanwhile, a survey by the business group the CBI found firms reporting a rise in economic output. ?" Guardian

Business growth picked up at its fastest pace since 2015 in the final months of 2017, reinforcing hopes that the economy is recovering. Factories, services firms and retailers all reported improved growth in the three months to December, the Confederation of British Industry (CBI) said. ?" Telegraph

Lloyds Banking Group was the UK's biggest corporate taxpayer for the second year running last year, after paying £2.3bn in taxes for 2016. The high street bank stumped up £500m more to the Treasury than the previous year, according to an analysis of Britain's top companies' tax records by consultancy PwC. ?" Telegraph

Households face higher borrowing costs next year regardless of whether the Bank of England raises interest rates, according to a survey of 50 leading economists by The Times. Two thirds of respondents predict that policymakers will lift the official interest rate at least once in 2018. More than nine in ten also forecast an increase in the benchmark rate for government debt, used to price almost all aspects of personal and consumer borrowing from mortgages to business loans. ?" The Times

Economics may be a dismal science but the predictions for the year ahead are not as bad as might have been expected. The 50 respondents to the fourth annual economics survey by The Times are confident that a hard Brexit on World Trade Organisation rules will be avoided, the squeeze on living standards will end and growth is more likely to overshoot official forecasts than fall short. The only group for which there is strong agreement that 2018 will not be kind is London homeowners: economists expect house prices to drop by as much as 5 per cent in the capital next year while creeping up nationally. ?" The Times

 

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