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Dec 29, 2017

Morning Euro Markets Bulletin

 
ADVFN  Morning Euro Markets Bulletin
Daily world financial news Friday, 29 December 2017 10:02:29
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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 build on recent highs in quiet trade

London stocks edged a little higher early on Friday on the last trading day of the year - a half day - building on the fresh records seen this week amid low volumes, with little in the way of corporate news and no economic data to provide any momentum.

At 0850 GMT, the FTSE 100 was up 0.1% to 7,632.05, having risen to a new record high of 7,636.67 earlier, above the intraday high reached the day before. On Thursday, the index crept to a fresh record close of 7,622.88.

Accendo Markets analyst Mike van Dulken said: "Bulls need a break above yesterday's early record peak of 7,635 to extend an already generous 4.6% Santa rally from 7300 on 8 Dec. Bears are equally eager for any downside test of 7,615 that could trigger a retrace."

At the same time, the pound was up 0.2% versus the euro at 1.1280 and 0.4% higher against the dollar at 1.3496.

In corporate news, Balfour Beatty was in the red after saying it will pay down debt and its full year results will be higher than recently guided after it sold off another chunk of its stake in Connect Plus, the company which operates the M25 orbital motorway. The infrastructure construction specialist sold a 7.5% stake for £62m cash, making an expected £32m profit, to funds managed by Dalmore Capital. Following sales to Dalmore at an identical price earlier this month, Balfour now has a 20% stake in the M25 operating business.

Low-cost airline Wizz Air flew higher as it completed and signed documentation with Airbus which, amongst other things, provides for the purchase of 146 Airbus A320neo Family aircraft. This purchase will enable Wizz to deliver on its fleet replacement and expansion plans and to continue delivering strong growth for the next decade.

Pharmaceutical giant AstraZeneca was lifted by an upgrade to 'overweight' from 'neutral' at JPMorgan Cazenove.

Just Eat was the top riser, rallying after its shares had lost almost 5% over the past month.


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Market Movers

FTSE 100 (UKX) 7,632.05 0.12%
FTSE 250 (MCX) 20,673.16 0.15%
techMARK (TASX) 3,534.43 0.17%

FTSE 100 - Risers

Just Eat (JE.) 775.50p 2.04%
AstraZeneca (AZN) 5,065.00p 1.33%
NMC Health (NMC) 2,873.00p 1.20%
Micro Focus International (MCRO) 2,495.00p 0.89%
London Stock Exchange Group (LSE) 3,780.00p 0.85%
Hargreaves Lansdown (HL.) 1,800.00p 0.84%
Old Mutual (OML) 226.70p 0.80%
Rio Tinto (RIO) 3,887.50p 0.76%
BHP Billiton (BLT) 1,510.00p 0.70%
Worldpay Group (WPG) 425.70p 0.69%

FTSE 100 - Fallers

Diageo (DGE) 2,676.00p -0.69%
Morrison (Wm) Supermarkets (MRW) 217.70p -0.68%
Smiths Group (SMIN) 1,484.00p -0.60%
Associated British Foods (ABF) 2,817.00p -0.56%
RSA Insurance Group (RSA) 621.50p -0.56%
Sainsbury (J) (SBRY) 240.60p -0.54%
WPP (WPP) 1,344.00p -0.52%
Persimmon (PSN) 2,725.05p -0.51%
Direct Line Insurance Group (DLG) 374.20p -0.51%
Mediclinic International (MDC) 640.50p -0.47%

FTSE 250 - Risers

Entertainment One Limited (ETO) 326.80p 3.75%
Acacia Mining (ACA) 196.70p 3.25%
Vectura Group (VEC) 125.07p 2.94%
Grafton Group Units (GFTU) 809.50p 2.15%
Dignity (DTY) 1,789.25p 2.01%
TI Fluid Systems (TIFS) 249.70p 1.92%
Kaz Minerals (KAZ) 872.25p 1.54%
AA (AA.) 174.80p 1.51%
CYBG (CYBG) 337.50p 1.44%
JD Sports Fashion (JD.) 340.90p 1.43%

FTSE 250 - Fallers

PZ Cussons (PZC) 320.00p -1.99%
Lancashire Holdings Limited (LRE) 673.50p -1.17%
ZPG Plc (ZPG) 325.90p -1.15%
Inchcape (INCH) 773.50p -1.15%
Hansteen Holdings (HSTN) 142.90p -1.04%
Sanne Group (SNN) 798.30p -0.83%
Wood Group (John) (WG.) 649.00p -0.76%
Indivior (INDV) 402.60p -0.72%
TBC Bank Group (TBCG) 1,712.00p -0.70%


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Europe Market Report
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Europe open: Stocks on track for best year since 2013

European stocks were flattish after almost an hour on the last day of trading in 2017 as the bloc heads for its best stock market performance in four years.

The benchmark Stoxx 600 was up a very slight 0.23 points to 389.77, with German and Italian stocks trading slightly lower while French and UK stocks were in positive territory. Germany's Dax was down 10 points to 12,969.87 and France's CAC 40 barely one point higher 5340.18.

The Stoxx 600 index is on track to have gained almost 8% over the past 12 months, which would be its best year since 2013.

The rather directionless trading on Friday came on the back of another record close on Wall Street overnight, with the Dow Jones making its 71st record high of the year, but a mixed Asian session.

Continued US dollar weakness was keeping both the UK and German stock benchmarket from making too much progress beyond breakeven, said analyst Mike van Dulken at Accendo Markets.

"However, gains for dual listed miners down-under, in spite of a negative close for the important Aussie ASX index, offers hope to buoy London year-end sentiment thanks to strength for copper and oil on a combination of global growth optimism and expectations of tighter supply."

Spanish consumer price inflation was an early data point for the region, with a below-forecast reading of 1.3% for December after the previous month's 1.8% mark.

Later on, some traders will be focusing on German inflation at 1300 GMT, where the consumer price index is forecast to ease to 1.5% year-on-year from 1.8%, with the harmonised index of consumer prices dropping to 1.4% from 1.8%. However the month-on-month measure of CPI is seen picking up to 0.5% from 0.3%.

After that there is the US Baker Hughes US rig count at 1800 GMT to provide indication on US oil production.

Among individual companies, Airbus was down only slightly despite reports that the company could end production of the A380 superjumbo if it does not receive a new order from Emirates. Reports emerged overnight that the Toulouse-headquartered aeroplane maker was drawing up plans to phase out production of the A380, though the company said the claims were "speculation" as talks over new orders were continuing.


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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.

Significantly, the yield on the benchmark 10-year US Treasury note fell by seven basis points to 2.41%, pushing the 2-10 year spread back towards the decade-lows hit at the start of December, which in turn acted as a drag on the greenback.

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%


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

Cryptocurrencies Report

Top Cryptocurrencies

# Name Market Cap($) Price(%) Change Price Graph(3m)
1 Bitcoin (BTC)

248,350,352,799

14,323.26 -0.05%
2 Ethereum (ETH) 72,536,301,416 722.6 +1.06%
3 Ripple (XRP) 62,512,583,257 1.49 +19.56%
4 Bitcoin Cash / BCC (BCH) 42,617,280,525 2,406.79 -3.08%
5 Litecoin (LTC) 13,482,187,579 242.47 -2.04%

 

See our full list of cryptocurrencies


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Newspaper Round Up

Friday newspaper round-up: UK wages, lack of staff, RBS, Thomas Cook

Britain is set to have the worst wage growth of any wealthy nation next year, ranking behind Italy, Greece and Hungary, according to analysis by the TUC. The UK is forecast to come bottom from 32 Organisation for Economic Co-operation and Development wealthy nations for wage performance in 2018, according to the study of OECD figures by the unions’ umbrella group. - Guardian

British businesses are already suffering from a lack of workers as EU staff quit their jobs and leave the country, and continental sources of labour dry up. Hotels and hospitality firms fear they may have to close as a result, while engineering and manufacturing companies are considering moving overseas to find the staff they need - harming British workers in the process. - Telegraph

The A380 superjumbo could be running out of runway after reports that Airbus will end production of the world's largest commercial aircraft if it does not receive a new order from Emirates. Airbus did not deny reports last night that it was drawing up plans to phase out production of the A380. - The Times

British companies need "unity, clarity and certainty" from politicians rather than the constantly changing policies of the past year if business is to thrive in 2018, according to the CBI. In a year-end letter to members which also set out priorities for the the next 12 months, Carolyn Fairbairn, director-general of the business lobby group called for an end to the near-total focus on Brexit after what she described as a "jaw-dropping, roller-coaster" year. - Telegraph

Britain's biggest oil and gas pipeline should resume normal flows around the new year, its operator said yesterday. Ineos previously had expected the Forties pipeline, which was shut on December 11 because of a crack, to resume normal operations early next month. - The Times

Passengers lost at least 3.6m hours due to significantly delayed trains in 2016-17, according to research. Delays of at least half an hour affected 7.2m passenger journeys in Britain, the consumer group Which? said, with Virgin Trains East Coast having the highest proportion of significant delays, followed by Virgin Trains West Coast and CrossCountry. - Guardian

Small shareholders in Royal Bank of Scotland have mounted a fresh bid to overhaul the state-backed bank's governance processes to give themselves more of a say in how it is run. ShareSoc, a not-for-profit group that represents retail investors, claimed 100 RBS shareholders had backed its call for RBS to create a shareholder committee and that it would be pressing for a vote on the matter at its AGM in May. - Telegraph

A scheme to make pubs and bars pay towards policing the night-time economy raised less than £4 million in five years. Eight licensing authorities have brought in a late night levy, according to figures from the Home Office, despite its estimate that more than ten times that number would seek to impose one. - The Times

France will demand that Britain pays for new customs infrastructure at its ports after Brexit, it emerged today. President Macron is expected to demand that the government shares the cost of building new posts at Calais, Dunkirk and other ports when he meets Theresa May next month. - The Times

Thomas Cook will launch a bank in Britain next year in a partnership with one of Europe's largest digital lenders and with the aim of slashing the cost of paying for items in foreign currencies. The travel company is joining forces with Ferratum, a Finnish lender that already has a mobile bank in five European countries. - The Times

Britain's homes could be lit and powered by windfarms surrounding an artificial island deep out in the North Sea, under advanced plans by a Dutch energy network. The radical proposal envisages an island being built to act as a hub for vast offshore windfarms that would eclipse today's facilities in scale. Dogger Bank, 125km (78 miles) off the East Yorkshire coast, has been identified as a potentially windy and shallow site. - Guardian

SoftBank has bought a major stake in Uber at a steep 30pc discount, after a chaotic year in which the ride-hailing firm faced a string of scandals, saw its chief executive resign and was hit with UK city bans. According to a source familiar with the deal, Uber's shareholders have agreed to sell more than a 14pc stake to an investor group led by SoftBank, crossing the threshold needed for the deal to complete. - Telegraph

Apple will cut the price of replacement iPhone batteries by two-thirds as it confronts a backlash after admitting that it slows down old handsets. Faced with legal claims of hundreds of billions of dollars, the company issued a lengthy apology yesterday. - The Times

Ratings agency Moody's has downgraded embattled South African retailer Steinhoff International over concerns about its looming debt pile and its liquidity. Moody's has given three parts of the company a CAA1 rating, meaning it considers it a very high credit risk. The rating is the 17th of 21 possible levels. - Telegraph

India's richest man confirmed yesterday that he was buying telecoms assets from his younger brother, adding a humiliating twist to a bitter feud between the two men who control Asia's largest family fortune. Mukesh Ambani is buying telecoms towers, fibre-optic cables and airwaves owned by his brother Anil's indebted Reliance Communications, 15 months after Mukesh sparked a ferocious price war in India's telecoms market with the launch of Jio, a rival mobile operator into which Reliance Industries, his oil conglomerate, pumped about $30 billion.- The Times

 

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