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Dec 8, 2017

Morning Euro Markets Bulletin

 
ADVFN  Morning Euro Markets Bulletin
Daily world financial news Friday, 08 December 2017 10:10:00
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London Market Report
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London open: Stocks flat as pound gains on Brexit breakthrough

London stocks were little changed in early trade on Friday as the pound ticked higher after a breakthrough in Brexit talks.

At 0840 GMT, the FTSE 100 was flat at 7,323.82 as the pound rose 0.5% against the euro to 1.1502 and 0.2% versus the dollar to 1.3503. A stronger pound tends to hold back the top-flight index as around 70% of its constituents derive most of their earnings from abroad.

European Commission President Jean-Claude Juncker said "sufficient progress" has been made in the first phase of Brexit talks and recommended that the talks move on to the next stage after both sides reached a preliminary agreement following a week of negotiations.

Prime Minister Theresa May said the deal would ensure there would be no hard border in Ireland, while EU citizens living in the UK will be able to go on living as before.

Juncker said the outcome of the first phase of talks was "of course a compromise" and that negotiations had been "difficult" for both sides. The text now needs to be signed off by leaders of the EU member states at a summit next week.

Oanda analyst Craig Erlam said: "There has been numerous times when an agreement looked difficult or even unlikely before year-end which would have made achieving a trade deal by March 2019 very tough. Today is a hugely significant step forward towards exiting the EU in 2019 and while both sides will be relieved at the progress, many more tough negotiations lie ahead. But we can't underestimate how important today is."

UK manufacturing and industrial production figures at 0930 GMT, along with the goods trade balance. Traders will also be looking ahead to the release of the non-farm payrolls report and unemployment rate in the US at 1330 GMT.

In corporate news, housebuilders got a boost as Berkeley Group said it now expects to generate pre-tax profit of £3.3bn in the five years to 2021, up from £3bn previously and reported a 36% jump in half-year profit. Berkeley surged 7%, with Persimmon, Barratt Developments, Taylor Wimpey, Bovis Homes and Bellway all in the black.

Hammerson, which announced on Thursday a £3.4bn takeover deal for rival Intu Properties, was boosted by an upgrade to 'buy' at Goldman Sachs, having fallen in the previous session.

Vodafone was higher after confirming the end of its merger talks with Melita, putting the blame on regulators in Malta.

International Airlines Group flew higher after saying that its subsidiary, British Airways, has decided to launch a flexible benefits scheme incorporating a new defined contribution pension scheme.

John Laing gained ground after it said total investment commitments to date were well ahead of its original guidance for 2017, while IP Group rose after saying that its portfolio company Mirriad, has successfully priced its IPO.

Halma was hit by a downgrade to 'underweight' at JPMorgan Cazenove.


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Market Movers

FTSE 100 (UKX) 7,323.82 0.04%
FTSE 250 (MCX) 19,857.85 0.24%
techMARK (TASX) 3,417.16 0.21%

FTSE 100 - Risers

Berkeley Group Holdings (The) (BKG) 4,124.00p 7.23%
Lloyds Banking Group (LLOY) 66.52p 3.12%
Hammerson (HMSO) 522.50p 2.85%
Persimmon (PSN) 2,671.96p 2.53%
Barratt Developments (BDEV) 623.00p 2.47%
Taylor Wimpey (TW.) 201.82p 2.40%
Barclays (BARC) 195.30p 1.90%
Royal Bank of Scotland Group (RBS) 279.70p 1.67%
CRH (CRH) 2,621.00p 1.59%
Vodafone Group (VOD) 230.45p 1.14%

FTSE 100 - Fallers

Mediclinic International (MDC) 582.50p -1.35%
Unilever (ULVR) 4,120.50p -1.26%
United Utilities Group (UU.) 805.50p -1.17%
British American Tobacco (BATS) 4,912.00p -0.94%
Diageo (DGE) 2,611.00p -0.89%
BP (BP.) 484.25p -0.81%
Old Mutual (OML) 196.20p -0.71%
Intertek Group (ITRK) 5,105.00p -0.68%
Randgold Resources Ltd. (RRS) 6,665.00p -0.67%
Informa (INF) 733.50p -0.61%

FTSE 250 - Risers

Dunelm Group (DNLM) 722.00p 4.94%
Restaurant Group (RTN) 286.10p 4.07%
Travis Perkins (TPK) 1,605.00p 3.75%
ZPG Plc (ZPG) 336.80p 2.81%
Virgin Money Holdings (UK) (VM.) 271.60p 2.49%
Bovis Homes Group (BVS) 1,156.00p 2.21%
Intu Properties (INTU) 233.60p 2.14%
Bellway (BWY) 3,540.50p 1.94%
Acacia Mining (ACA) 167.00p 1.83%
Countryside Properties (CSP) 347.40p 1.73%

FTSE 250 - Fallers

Halma (HLMA) 1,247.00p -2.12%
William Hill (WMH) 309.40p -1.78%
Investec (INVP) 476.30p -1.39%
Wood Group (John) (WG.) 672.50p -1.32%
RDI Reit (RDI) 34.07p -1.27%
UDG Healthcare Public Limited Company (UDG) 845.50p -1.23%
UBM (UBM) 731.00p -1.22%
Inchcape (INCH) 751.50p -1.18%
UK Commercial Property Trust (UKCM) 86.51p -1.07%


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UK Event Calendar

Friday December 08

INTERIM DIVIDEND PAYMENT DATE
Amati VCT , Maruwa Co Ltd., Rotala, SThree, System1 Group, Triple Point Income VCT A, Young & Co's Brewery 'A' Shares, Young & Co's Brewery (Non-Voting)

QUARTERLY PAYMENT DATE
Honeywell International Inc.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (GER) (07:00)
Current Account (GER) (07:00)
Non-Farm Payrolls (US) (13:30)
U. of Michigan Confidence (Prelim) (US) (14:00)
Unemployment Rate (US) (13:30)
Wholesales Inventories (US) (15:00)

EGMS
Datang International Power Generation Co Ltd.

AGMS
AXA Property Trust Limited, DX (Group), Quadrise Fuels International, River and Mercantile Group , Softcat

UK ECONOMIC ANNOUNCEMENTS
Balance of Trade (09:30)
Industrial Production (09:30)
Manufacturing Production (09:30)

FINAL DIVIDEND PAYMENT DATE
Abcam, Avingtrans, BlackRock Greater Europe Inv Trust, CVS Group, JPMorgan Smaller Companies Inv Trust, Revolution Bars Group, Swallowfield

 


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Cryptocurrencies Report

Top Cryptocurrencies

# Name Market Cap($) Price(%) Change Price Graph(3m)
1 Bitcoin (BTC) 272,830,738,974 15,069.23 +7.74%
2 Ethereum (ETH) 42,138,163,052 435.72 +2.26%
3 Bitcoin Cash / BCC (BCH) 26,619,019,258 1,460.44 +11.15%
4 IOTA (IOT) 11,823,232,374 4.23 +7.44%
5 Ripple (XRP) 9,691,061,994 0.22951 +1.84%

 

See our full list of cryptocurrencies


Hargreaves Lansdown

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

US Market Report

US close: Wall Street higher amid renewed tax reform hopes

Wall Street finished higher on Thursday, with the Nasdaq making gains amid a flurry of share buyback announcements in the wider market and another torrid run higher in Bitcoin.

The Dow Jones Industrial Average closed up 0.29% at 24,211.48, the S&P 500 was ahead 0.29% as well at 2,636.98, and the Nasdaq 100 added 0.37% to settle at 6,316,28.

"A lot has been made of the recent tech sell-off but it also needs to be put into perspective," said CMC Markets UK's Michael Hewson earlier in the day.

"Despite recent price falls companies like Facebook, Alphabet, Apple, Amazon and Microsoft are still over 40% higher year to date, and yesterday we did see some light buying return."

Late on Wednesday, the Republican-led Senate agreed to begin formal negotiations with the House of Representatives on tax reform, sparking hopes that the final tax overhaul will be done by the self-imposed deadline of 22 December.

The week before, the House and Senate passed their own versions of the tax reform bill and now both need to agree on a final bill for President Donald Trump to sign.

In corporate news, a few large share buyback announcements were again part of the market landscape, as Edwards Lifesciences, American Tower and Johnson Controls unveiled fresh share repurchase authorisations from their boards.

Stock in Edwards Lifesciences was up 3,61%, while American Tower added 1.63% and Johnson Controls was 0.3% firmer.

SAGE Therapeutics rocketed 70.04% after disclosing positive results from a mid-stage clinical trial for an anti-depression treatment.

General Electric was 0.28% higher after telling investors its power business would cut 12,000 jobs globally.

Discount retailer Dollar General was higher by 2.77%, after posting stronger-than-expected third quarter earnings per share of 98 cents, excluding one-offs, besting the Street consensus of 94 cents.

At the other end, Citigroup was down 0.61% a day after management said that profits are likely take a $20bn hit under the new tax plans passed by Congress.

Ciena was 1.94% lower after the networking technology company missed analysts' forecasts for the company's bottom line in its fourth fiscal quarter.

Among some of the smaller caps, power supply provider Digital Power surged 24.45% on talk of a deal with online retailer Amazon.com.

However, the company said late on Wednesday that it had "entered into no agreement and has received no order from Amazon".

Dow Jones - Risers

Boeing Co. (BA) $282.00 2.33%
Caterpillar Inc. (CAT) $142.89 1.96%
Visa Inc. (V) $111.40 1.51%
Nike Inc. (NKE) $60.60 1.47%
United Technologies Corp. (UTX) $122.40 0.98%
Merck & Co. Inc. (MRK) $54.77 0.77%
3M Co. (MMM) $240.30 0.63%
Exxon Mobil Corp. (XOM) $82.55 0.33%
Apple Inc. (AAPL) $169.32 0.18%
Goldman Sachs Group Inc. (GS) $248.56 0.09%

Dow Jones - Fallers

Walt Disney Co. (DIS) $105.26 -1.83%
Coca-Cola Co. (KO) $45.78 -1.44%
Procter & Gamble Co. (PG) $90.10 -1.26%
Intel Corp. (INTC) $43.08 -0.85%
Travelers Company Inc. (TRV) $134.21 -0.85%
Johnson & Johnson (JNJ) $140.01 -0.74%
Chevron Corp. (CVX) $119.65 -0.63%
Verizon Communications Inc. (VZ) $50.42 -0.53%
Wal-Mart Stores Inc. (WMT) $96.78 -0.51%
Home Depot Inc. (HD) $182.00 -0.46%

S&P 500 - Risers

DaVita Inc (DVA) $67.14 10.19%
First Solar Inc. (FSLR) $68.43 8.21%
Spectra Energy Corp. (SE) $12.92 6.51%
Brown Forman Corp. Class B (BF.B) $66.02 6.48%
Freeport-McMoRan Inc (FCX) $14.85 5.17%
Endo International Plc (ENDP) $7.44 4.94%
Frontier Communications Co. (FTR) $9.15 4.21%
H&R Block Inc. (HRB) $27.39 4.18%
Micron Technology Inc. (MU) $43.20 3.90%
Edwards Lifesciences Corp. (EW) $117.44 3.89%

S&P 500 - Fallers

Chesapeake Energy Corp. (CHK) $3.69 -5.61%
EQT Corp. (EQT) $55.80 -5.46%
Southwestern Energy Co. (SWN) $5.53 -4.98%
FMC Technologies Inc. (FTI) $27.18 -3.75%
Hess Corp. (HES) $44.60 -3.65%
Apache Corp. (APA) $40.64 -3.61%
Advance Auto Parts (AAP) $97.65 -3.50%
Range Resources Corp. (RRC) $15.95 -3.33%
GameStop Corp. (GME) $18.63 -3.32%
Devon Energy Corp. (DVN) $37.15 -3.20%

Nasdaq 100 - Risers

Micron Technology Inc. (MU) $43.20 3.90%
Align Technology Inc. (ALGN) $241.38 3.59%
Twenty-First Century Fox Inc Class B (FOX) $33.77 3.27%
Twenty-First Century Fox Inc Class A (FOXA) $34.18 2.92%
Lam Research Corp. (LRCX) $189.16 2.68%
American Airlines Group (AAL) $50.88 2.56%
Applied Materials Inc. (AMAT) $52.30 2.53%
Autodesk Inc. (ADSK) $109.61 2.52%
Viacom Inc. Class B (VIAB) $29.64 2.42%
Facebook Inc. (FB) $180.14 2.32%

Nasdaq 100 - Fallers

Ctrip.Com International Ltd. Ads (CTRP) $43.76 -3.36%
Alexion Pharmaceuticals Inc. (ALXN) $106.78 -2.41%
Walgreens Boots Alliance, Inc. (WBA) $69.61 -2.03%
Comcast Corp. (CMCSA) $37.89 -1.92%
Express Scripts Holding Co (ESRX) $67.41 -1.69%
Monster Beverage Corp (MNST) $62.30 -1.53%
Mondelez International Inc. (MDLZ) $42.68 -1.50%
Kraft Heinz Co. (KHC) $79.36 -1.40%
Amgen Inc. (AMGN) $173.96 -1.28%


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Newspaper Round Up

Friday newspaper round-up: Bitcoin, Asda, Pret, Buzzfeed

Bitcoin has been likened to Dante’s Inferno by the chairman of the Royal Bank of Scotland. As the digital currency surged towards $16,000, Sir Howard Davies suggested it should carry a similarly apocalyptic warning for investors. Davies, a former head of the UK’s top financial watchdog, called on the Bank of England and other authorities around the world to launch a coordinated warning against the digital currency. – Guardian

Businesses are struggling to find the skilled workers they need, stalling firms' growth and holding up wage increases, jobs market data has revealed. Workers won permanent jobs at the quickest pace for three months in November, according to the Report on Jobs, compiled by IHS Markit on behalf of the Recruitment and Employment Confederation. - Telegraph

Hitachi could stop funding the development of a new nuclear plant on Anglesey unless the government agrees a viable financial support package by the middle of next year, the head of the project has warned. Duncan Hawthorne, chief executive of the Horizon venture, said that its Japanese owners had already spent £2 billion and would not keep "throwing a bottomless pit of cash at a project without some certainty it can get to a successful conclusion". - The Times

More than half of the European Union's 619 coal-fired power stations are losing money, according to a new report. As a result, the industry's slow plans for shutdowns will lead to €22bn in losses by 2030 if the EU fulfils its pledge to tackle climate change, the report warns. - Guardian

An activist investor has taken a stake in TLA Worldwide, the troubled global sports management agency whose clients include the Olympians Sir Chris Hoy and Rebecca Adlington. Gatemore Capital Management has bought 6.6 per cent of the shares in the Aim-quoted group, which was plunged into turmoil in June after Donald Malter, the chief financial officer, stepped down amid allegations of the misappropriation of cash and the unauthorised transfer of funds totalling about $800,000. - The Times

Hammerson could be on the hook to pay £150,000 a year to Sir Donald Gordon, the South African property grandee behind the creation of Intu Properties, if its takeover of the rival business succeeds. The UK business behind centres such as the Bullring in Birmingham surprised the market this week when it announced a £3.4 billion all-share takeover of Intu Properties, which owns the Trafford Centre in Manchester. - The Times

More than 800 Asda jobs are at risk after it emerged the Walmart-owned supermarket has launched a consultation with stores over slashing management positions. The proposals, sent to stores three weeks ago, are thought to apply to every Asda store across the UK, with a couple of people in the "section leader" position to be affected from each store.- Telegraph

Sandwich and coffee chain Pret A Manger will open more stores at motorway service stations after striking a deal with Roadchef. The chain will open at Chester services on the M56 before Christmas and at Clacket Lane West on the M25 in the spring. - Telegraph

Universities are presiding over a "mis-selling" scandal which is leaving some graduates with a lower earning capacity than people who eschew degrees, a major report finds today. Graduates have an average debt of £50,000 but they have less consumer protection than other complex products such as financial services, according to the National Audit Office's review into the higher education market. - Telegraph

Digital news and entertainment outlet Buzzfeed is now planning to cut just under a third of its UK staff after falling short of revenue targets. Staff were told on Thursday that Buzzfeed was proposing to cut 45 roles, across commercial and editorial operations, from the total 140 staff based London. Of the 76 journalists at the bureau, 23 are said to be facing redundancy. ?" Telegraph

 

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