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Jan 19, 2018

Morning Euro Markets Bulletin

 
ADVFN  Morning Euro Markets Bulletin
Daily world financial news Friday, 19 January 2018 10:58:09
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Share Tips for 2018

The Share Centre’s investment research analyst Ian Forrest, comments on five equities, an investment trust as well as an ETF that our expert research team think could flourish in 2018.  Read more. Capital at risk.


London Market Report
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London open: Stocks steady after downbeat Wall St; UK retail sales in focus

London stocks were flat in early trade on Friday following a downbeat session on Wall Street, as investors eyed the latest UK retail sales figures, with more corporate profit warnings doing little to lift the mood.

At 0830 GMT, the FTSE 100 was flat at 7,697.97, while the pound was up 0.2% versus the dollar at 1.3925 and down 0.1% against the euro at 1.1344.

Stocks in the US closed down on Thursday amid concerns about a possible government shutdown. Although the House of Representatives passed a one-month spending bill, it could be derailed if there is enough opposition in the Senate.

Market participants in the UK were looking ahead to UK retail sales at 0930 GMT.

CMC Markets analyst Michael Hewson said: "The latest UK retail sales numbers for December are unlikely to be as positive as the November figures were where Black Friday presales helped boost numbers to 1.1%, but it would be surprising if they are as bad as some are predicting.

"The recent BRC retail sales numbers for December showed an unexpectedly positive number of 0.6%, so despite general expectations that the official retail sales numbers for December could show a sharp decline in the region of -0.9%, we could see a number that comes in better than that.

"That in term would bode well for next week's preliminary Q4 GDP number."

In corporate news, further profit warnings were the order of the day.

Funeral provider Dignity nosedived after issuing a profits warning as it announced a 25% price cut in its simple funerals and a freeze on the cost of traditional ceremonies, blaming stiff competition.

Shares in flooring specialist Carpetright tumbled after it issued its second profits warning in as many months as it reported trading in its important post-Christmas period "significantly behind expectations".

Elsewhere, HSBC was in the red as it agreed a financial settlement with the US Department of Justice to wipe the slate clean after an investigation into the bank's foreign exchange division misusing confidential client information for its own profit between. The bank will pay the DoJ a total of $101.5m, including a US$63.1m fine and US$38.4m in restitution, and has agreed to put further compliance procedures and controls in place.

AstraZeneca was little changed after the drugmaker announced Japanese regulatory approval for Fasenra (benralizumab) as an add-on treatment for bronchial asthma in patients who continue to experience asthma exacerbations despite treatment with high-dose inhaled corticosteroid and other asthma controllers, as well as for its Merck-partnership's Lynparza (olaparib) tablets at 300mg twice daily for use as a maintenance therapy for patients with platinum-sensitive relapsed ovarian cancer

Motor and home insurer Esure edged up as it said chief executive Stuart Vann has left the company with immediate effect as it "evolves" its strategy, with founder and chairman Peter Wood taking a more active role.

British Land slipped as it appointed Simon Carter - currently chief financial officer at Logicor - as its new CFO, succeeding Lucinda Bell.

Fevertree Drinks fizzed higher amid takeover talk and as Jefferies initiated coverage of the stock at 'buy'.

EasyJet flew higher after an upgrade to 'overweight' at Morgan Stanley, while InterContinental Hotels was lifted by an upgrade to 'buy' at Goldman Sachs.


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Market Movers

FTSE 100 (UKX) 7,697.97 -0.04%
FTSE 250 (MCX) 20,630.70 -0.17%
techMARK (TASX) 3,514.46 0.32%

FTSE 100 - Risers

easyJet (EZJ) 1,550.00p 2.45%
InterContinental Hotels Group (IHG) 4,856.00p 1.08%
Severn Trent (SVT) 2,042.00p 1.04%
Imperial Brands (IMB) 3,044.50p 0.89%
Shire Plc (SHP) 3,483.00p 0.88%
Burberry Group (BRBY) 1,602.00p 0.85%
Reckitt Benckiser Group (RB.) 6,846.00p 0.78%
Croda International (CRDA) 4,482.00p 0.72%
United Utilities Group (UU.) 776.20p 0.65%
Berkeley Group Holdings (The) (BKG) 4,175.00p 0.63%

FTSE 100 - Fallers

Kingfisher (KGF) 335.20p -2.56%
Whitbread (WTB) 3,947.00p -1.03%
Old Mutual (OML) 235.00p -0.63%
Hammerson (HMSO) 497.50p -0.62%
British Land Company (BLND) 675.20p -0.59%
HSBC Holdings (HSBA) 783.80p -0.57%
Pearson (PSON) 675.60p -0.53%
Royal Dutch Shell 'B' (RDSB) 2,556.50p -0.51%
Royal Dutch Shell 'A' (RDSA) 2,508.00p -0.48%
Royal Bank of Scotland Group (RBS) 295.90p -0.47%

FTSE 250 - Risers

Vedanta Resources (VED) 907.60p 1.68%
esure Group (ESUR) 248.60p 1.47%
Barr (A.G.) (BAG) 675.00p 1.35%
St. Modwen Properties (SMP) 402.91p 1.28%
Kaz Minerals (KAZ) 931.20p 1.22%
IG Group Holdings (IGG) 782.50p 1.10%
PZ Cussons (PZC) 332.60p 1.09%
Sirius Minerals (SXX) 22.84p 0.97%
Hochschild Mining (HOC) 240.50p 0.97%
Ferrexpo (FXPO) 306.50p 0.92%

FTSE 250 - Fallers

Dignity (DTY) 1,036.00p -45.93%
Howden Joinery Group (HWDN) 443.20p -2.85%
Dixons Carphone (DC.) 189.50p -2.77%
Inmarsat (ISAT) 493.20p -2.30%
Convatec Group (CTEC) 186.60p -2.05%
Provident Financial (PFG) 697.40p -2.02%
Travis Perkins (TPK) 1,490.00p -1.68%
Inchcape (INCH) 736.00p -1.21%
Tullow Oil (TLW) 215.60p -1.15%


Hargreaves Lansdown

Top of the stocks

Number of Deals Bought

Place EPIC Equity name %
1 RMG Royal Mail PLC 6.54
2 BP. BP Plc 5.31
3 NG. National Grid 5.19
4 RDSB Royal Dutch Shell Plc B Shares 4.49
5 SMT Scottish Mortgage Investment Trust 1.45
6 ULVR Unilever plc 1.40
7 CLLN Carillion plc 1.23
8 WTAN Witan Investment Trust 1.20
9 BOO Boohoo.com 1.18
10 SOPH Sophos Group plc 1.08

Number of Deals Sold

Place EPIC Equity name %
1 LLOY Lloyds Banking Group plc 2.81
2 CLLN Carillion plc 2.80
3 BOO Boohoo.com 1.54
4 GKN GKN plc 1.49
5 XBT Provider AB 1.45
6 PMO Premier Oil Plc 1.17
7 IQE IQE plc 1.09
8 XBT Provider AB 1.05
9 GLEN Glencore plc 0.82
10 SXX Sirius Minerals plc 0.80

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Cryptocurrencies Report

Top Cryptocurrencies

# Name Market Cap($) Price(%) Change Price Graph(3m)
1 Bitcoin (BTC) 196,632,567,200 11,580.67 +5.35%
2 Ethereum (ETH) 102,431,516,360 1,044.75 +7.95%
3 Ripple (XRP) 64,156,669,192 1.64 +22.44%
4 Bitcoin Cash / BCC (BCH) 30,780,510,177 1,819.48 +3.14%

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US Market Report

US close: Stocks end session lower on back of weaker industrials

Fears of a partial government shutdown saw US stocks close lower on Thursday as weaker industrials also weighed on investors.

The Dow Jones Industrial Average closed 0.37% or 97.84 points lower at 26,017.81, while the S&% 500 slipped 0.16% to 2,798.03 and the Nasdaq 0.03% to 7,296.05.

The Dow hit an an intraday high near the opening bell before before the slide began and it plunged 168 points at one stage before paring back losses in late trading.

Yields on the benchmark 10-year US Treasury rose three basis points to 2.62% as the Fed's Beige Book report showed a strong domestic economy that hinted at a tightening in the labour market.

General Electric shares fell below $17 briefly, and hit their lowest level in seven years. The sell off was prompted earlier in the week as the company reported disappointing results after a review of its GE Capital insurance portfolio.

The company said it would take a $6.2bn after-tax charge for the fourth quarter of 2017, adding that it expected to contribute $15bn over the next seven years to bolster the portfolio's reserves.

IBM shares rose after it reported better-than-expected earnings for the fourth quarter and full year of 2017. The company ended a run of 22 quarters in a row where revenues were lower on a year-on-year basis.

Apple was still in focus as its much heralded plans to increase jobs and repatriate cash came under greater scrutiny.

Bank New York Mellon shares fell as the company said it would take a $246m charge for redundancies and litigation in the fourth quarter.

A poor fourth quarter performance from Goldman Sachs' fixed income, commodities and currencies trading business, where revenues halved from the same period in 2016, saw the shares lower.

American Express followed suit after reporting a $1.2bn final quarter loss as the company took a huge one-off $2.6bn hit related to the new tax cuts law.

Some of the charges were tied to AmEx's deferred tax assets, or credits that could have used toward future tax bills, which it had to write down.

Dow Jones - Risers

International Business Machines Corp. (IBM) $169.15 3.23%
Unitedhealth Group Inc. (UNH) $243.22 1.96%
Wal-Mart Stores Inc. (WMT) $104.34 1.60%
Boeing Co. (BA) $340.20 1.50%
Dowdupont Inc. (DWDP) $76.04 1.45%
Pfizer Inc. (PFE) $37.00 1.09%
Home Depot Inc. (HD) $198.38 1.05%
Visa Inc. (V) $123.09 0.91%
JP Morgan Chase & Co. (JPM) $113.28 0.90%
Coca-Cola Co. (KO) $46.89 0.77%

Dow Jones - Fallers

General Electric Co. (GE) $16.79 -7.80%
Merck & Co. Inc. (MRK) $61.14 -1.50%
Goldman Sachs Group Inc. (GS) $251.01 -1.04%
Exxon Mobil Corp. (XOM) $87.44 -0.66%
American Express Co. (AXP) $99.90 -0.44%
Chevron Corp. (CVX) $131.60 -0.31%
Verizon Communications Inc. (VZ) $51.57 -0.31%
Caterpillar Inc. (CAT) $168.84 -0.28%
Walt Disney Co. (DIS) $110.46 -0.21%
Microsoft Corp. (MSFT) $90.10 -0.04%

S&P 500 - Risers

AES Corp. (AES) $11.53 7.96%
Viacom Inc. Class B (VIAB) $33.95 6.23%
Wyndham Worldwide Corp. (WYN) $122.76 4.81%
M&T Bank Corp. (MTB) $186.24 4.76%
GameStop Corp. (GME) $17.86 4.08%
Target Corp. (TGT) $77.89 3.92%
Discovery Communications Inc. Class A (DISCA) $25.59 3.60%
Ralph Lauren Corp (RL) $109.83 3.56%
Discovery Communications Inc. Class C (DISCK) $24.23 3.55%
Fluor Corp. (FLR) $60.06 3.49%

S&P 500 - Fallers

Ford Motor Co. (F) $12.06 -7.90%
General Electric Co. (GE) $16.79 -7.80%
Mallinckrodt Plc Ordinary Shares (MNK) $21.72 -6.10%
Alcoa Corporation (AA) $53.01 -5.74%
FMC Corp. (FMC) $90.16 -5.07%
Endo International Plc (ENDP) $7.35 -4.42%
NRG Energy Inc. (NRG) $26.79 -3.98%
Bank Of New York Mellon Corp. (BK) $55.35 -3.81%
Chesapeake Energy Corp. (CHK) $3.98 -3.74%
Juniper Networks Inc. (JNPR) $27.68 -3.25%

Nasdaq 100 - Risers

Asml Holdings N.V. (ASML) $203.36 2.10%
Fastenal Co. (FAST) $53.29 2.09%
Charter Communications Inc. (CHTR) $365.25 2.07%
eBay Inc. (EBAY) $38.74 1.97%
Electronic Arts Inc. (EA) $115.28 1.89%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $243.15 1.87%
Incyte Corp. (INCY) $91.92 1.78%
Analog Devices Inc. (ADI) $97.24 1.75%
Broadcom Limited (AVGO) $269.80 1.50%
Western Digital Corp. (WDC) $86.40 1.46%

Nasdaq 100 - Fallers

Expedia Inc. (EXPE) $126.89 -2.87%
Twenty-First Century Fox Inc Class A (FOXA) $36.18 -2.51%
Texas Instruments Inc (TXN) $116.41 -2.31%
Henry Schein Inc. (HSIC) $74.62 -2.27%
Twenty-First Century Fox Inc Class B (FOX) $35.73 -2.08%
Ctrip.Com International Ltd. Ads (CTRP) $47.45 -1.84%
JD.com, Inc. (JD) $45.90 -1.52%
Alexion Pharmaceuticals Inc. (ALXN) $120.35 -1.45%
T-Mobile Us, Inc. (TMUS) $62.88 -1.38%


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Newspaper Round Up

Friday newspaper round-up: RBS, Ryanair, women in business

Vince Cable has attacked the City watchdog for failing to publish a full report into the mistreatment of small businesses by the Royal Bank of Scotland, as MPs lined up to condemn the bank in parliament. The leader of the Liberal Democrats expressed “disgust” that passages of a damning report by the Financial Conduct Authority had not been released, four-and-a-half years after he first referred the case to the regulator during his time in the coalition government. – Guardian

Ryanair has been referred to employment and tax authorities for investigation by two parliamentary committees, citing the airline's "refusal to cooperate" with inquiries over crew pay and conditions. Frank Field, chair of the work and pensions committee, and Rachel Reeves, chair of the business select committee, have written to HMRC and the director of labour market enforcement asking them to investigate Ryanair and the agencies that supply its cabin crew. ?" Guardian

Britain's pub and restaurant industry looks to have suffered a tough Christmas as festive revellers curbed their spending on food. Data from the Coffer Peach business tracker, which is seen as a bellwether for the industry, has shown comparable sales were down 0.1pc for the six-week Christmas period compared to the prior year. ?" Telegraph

Britain's most successful companies tend to have a large proportion of women in senior management roles but the UK lags behind the US and Australia on diversity at the top, new research suggests. Between 2011 and 2015, the most gender diverse quarter of companies were 20pc more likely than the least diverse to have above average financial performance, a report by management consultants McKinsey found. ?" Telegraph

White-collar criminals are acting with impunity, with fewer than ten prosecutions for insider trading in the past five years, an investigation has found. A freedom of information request to the chief City watchdog revealed how little was being done to stop stock market abuse despite research by The Times suggesting the system was being exploited. ?" The Times

Britain's productivity could be better than thought because officials may have underestimated the size of the telecoms industry. Advances in broadband and digital technology may not have been shown in GDP numbers by the Office for National Statistics, analysis suggests. The work, instigated by the ONS after a review of economic data in 2016, found that inflation in telecommunications services may have been overstated by 90 per cent from 2010 to 2015. ?" The Times

 

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