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Jan 23, 2018

Morning Euro Markets Bulletin

 
ADVFN  Morning Euro Markets Bulletin
Daily world financial news Tuesday, 23 January 2018 10:24:51
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London open: Stocks edge up after record US close; EasyJet flies higher

London stocks edged higher in early trade on Tuesday, taking their cue from a record close on Wall Street after the Senate agreed a temporary deal that has ended the government shutdown.

At 0840 GMT, the FTSE 100 was up 0.1% to 7,725.78, failing to make much headway even as the pound fell back from Monday's post-Brexit high, trading flat against the euro at 1.1410 and 0.3% versus the dollar at 1.3952.

Analyst Michael Hewson at CMC Markets said: "US markets took another leg higher yesterday in the wake of the announcement that the US government shutdown that started at the weekend wouldn't be lasting very long, which in turn means that any potential negative effect on the US economy is likely to be minimal at worst.

"The announcement that US senators had arrived at a stop-gap deal to fund the government until February 8th saw US markets, which had been trading slightly negative to flat, push up further to close at another set of record highs."

On the data front, UK public sector net borrowing figures for December are due at 0930 GMT, while the CBI industrial trends survey is at 1100 GMT. Investors will also be keeping an eye out for any headlines from the World Economic Forum in Davos, which kicks off on Tuesday.

In corporate news, Easyjet flew higher as it reported a 14.4% increase in revenue for the first quarter of its financial year and said it had cut costs by 1.6%. It was also boosted by an upgrade to 'outperform' at RBC Capital Markets.

Sky advanced even as the competition regulator dealt a blow to 21st Century Fox and its planned takeover of the broadcaster. The Competition and Markets Authority said it has provisionally found that Fox taking full control of Sky "is not in the public interest" due to media plurality concerns, but suggested some potential remedies.

Computacenter rose after announcing plans to return up to £100m to shareholders through a tender offer.

SSP was up after the travel catering group posted a 13.5% jump in total revenue for the first quarter, while IG Group gained as it posted record half-year results and announced the launch of a new German subsidiary.

Pets at Home surged as it reported a 9.6% increase in third-quarter sales to £223.3m, while Paragon Bank advanced as it said new lending rose 24% in the first quarter to £469.8m.

On the downside, N Brown, the plus-size clothes retailer, tumbled. Although it had a sturdy third quarter, with a strong surge in its Simply Be brand and in the USA, it was relatively subdued compared to previous months. Sales grew 3.2% over the extended 18-week period, which was slightly short of the average of City analyst forecasts at 3.6%.

Brewer and pub operator Marston's fizzed lower after saying it took a hit from the snowy and icy weather in early December and between Christmas and New Year, although its pubs saw record sales on Christmas day.

National Grid was on the back foot as it hit out at Ofgem over its proposals for the new Hinkley Point power station.

Clothing retailer Superdry, formerly SuperGroup, slipped as it said that chief financial officer Nick Wharton is planning to retire and will be succeeded by Ed Barker, the current director of group finance.

In broker note action, Croda was lifted by an upgrade to 'buy' at Berenberg, but WPP was hit by a downgrade to 'neutral' at Credit Suisse, while Rentokil was lower after a downgrade to 'add' at Peel Hunt.

Homeserve and Serco were also trading lower after downgrades by Peel Hunt.


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Market Movers

FTSE 100 (UKX) 7,725.78 0.13%
FTSE 250 (MCX) 20,602.93 -0.25%
techMARK (TASX) 3,522.64 0.07%

FTSE 100 - Risers

easyJet (EZJ) 1,664.50p 6.46%
Croda International (CRDA) 4,628.00p 3.56%
NMC Health (NMC) 3,466.00p 3.15%
Sky (SKY) 1,031.50p 2.84%
International Consolidated Airlines Group SA (CDI) (IAG) 664.40p 2.18%
Johnson Matthey (JMAT) 3,292.00p 1.60%
Ashtead Group (AHT) 2,161.00p 1.50%
Smurfit Kappa Group (SKG) 2,642.00p 1.38%
Standard Chartered (STAN) 833.50p 1.18%
Scottish Mortgage Inv Trust (SMT) 475.60p 1.15%

FTSE 100 - Fallers

WPP (WPP) 1,322.00p -2.69%
National Grid (NG.) 810.10p -2.16%
United Utilities Group (UU.) 754.46p -1.71%
Fresnillo (FRES) 1,374.50p -1.36%
Anglo American (AAL) 1,768.80p -1.31%
Randgold Resources Ltd. (RRS) 7,022.00p -1.29%
SSE (SSE) 1,281.00p -1.20%
Mondi (MNDI) 1,932.00p -1.02%
Rentokil Initial (RTO) 303.60p -1.01%
Severn Trent (SVT) 2,002.00p -0.99%

FTSE 250 - Risers

Pets at Home Group (PETS) 194.18p 6.69%
FDM Group (Holdings) (FDM) 1,004.00p 2.76%
IG Group Holdings (IGG) 800.00p 2.11%
Petrofac Ltd. (PFC) 572.50p 2.01%
Cobham (COB) 134.00p 1.90%
Virgin Money Holdings (UK) (VM.) 292.70p 1.81%
Weir Group (WEIR) 2,198.00p 1.76%
SSP Group (SSPG) 648.00p 1.73%
ZPG Plc (ZPG) 338.80p 1.44%
Wizz Air Holdings (WIZZ) 3,553.00p 1.40%

FTSE 250 - Fallers

Brown (N.) Group (BWNG) 253.30p -9.15%
Just Group (JUST) 148.40p -6.25%
Ocado Group (OCDO) 501.80p -4.71%
Marston's (MARS) 109.60p -4.36%
Homeserve (HSV) 789.00p -3.49%
Auto Trader Group (AUTO) 343.70p -2.85%
Mitie Group (MTO) 187.70p -2.59%
Serco Group (SRP) 94.65p -1.97%
Daejan Holdings (DJAN) 6,200.00p -1.74%


Hargreaves Lansdown

Top of the stocks

Number of Deals Bought

Place EPIC Equity name %
1 GGP Greatland Gold Plc 2.35
2 BOO Boohoo.com 1.90
3 XBT Provider AB 1.86
4 LGEN Legal & General Group plc 1.49
5 SXX Sirius Minerals plc 1.18
6 LION Lionsgold Limited 1.15
7 VRS Versarien plc 1.14
8 XBT Provider AB 1.12
9 DTY Dignity plc 1.11
10 PFG Provident Financial plc 1.08

Number of Deals Sold

Place EPIC Equity name %
1 LLOY Lloyds Banking Group plc 2.33
2 GGP Greatland Gold Plc 2.26
3 XBT Provider AB 1.73
4 XBT Provider AB 1.27
5 GKN GKN plc 1.24
6 IQE IQE plc 1.20
7 Verizon Communications Inc 1.17
8 BOO Boohoo.com 1.02
9 PMO Premier Oil Plc 0.96
10 LION Lionsgold Limited 0.96

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Cryptocurrencies Report

Top Cryptocurrencies

# Name Market Cap($) Price(%) Change Price Graph(3m)
1 Bitcoin (BTC) 180,988,773,824 10,591.56 -1.83%
2 Ethereum (ETH) 95,178,371,762 963.43 -3.19%
3 Ripple (XRP) 50,119,153,403 1.27 -5.48%
4 Bitcoin Cash / BCC (BCH) 27,119,165,346 1,580.58 -1.68%

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US Market Report

US close: Markets on a high as government shutdown deal tentatively reached

Wall Street's main market gauges began the week trading on a positive note, after Congress struck a deal to end the federal government shutdown which had been in place since Friday.

The Dow Jones Industrial Average ended the day up 0.55% at 26,214.60, the S&P 500 was ahead 0.81% at 2,832.97 and the Nasdaq 100 added 1.05% to 6,906.28.

It was the US government shutdown at the top of the agenda for much of the day, as a Sunday session of the Senate failed to yield any kind of agreement between the Democrats and Republicans, after lawmakers failed to agree on a spending bill by the deadline last Friday.

In a vote during the day, Democratic Senator Chuck Schumer said his party was supporting a bill to end the shutdown on the proviso Republicans would address a programme which protects young migrants from deportation.

Analysts at Bank of America-Merrill Lynch earlier warned a week-long shutdown held the potential to slice between one and three tenths of a percentage point from the first quarter's annualised rate of growth in gross domestic product.

"Temporary shutdowns have occurred numerous times in the past, most recently in 2013," Mickey Levy at Berenberg Capital Markets explained in a research note sent to clients..

"Close observation suggests that they have little impact on trends in economic conditions, interest rates, the stock market, or even the US dollar.

"They also have little impact on the wide array of government operations."

Levy added that in 2013 and 1995-1996, shutdowns lasted two weeks.

"Resolving this shutdown is complicated by the upcoming elections in November.

"With a third of the Senate seats up for grabs and the whole of the House of Representatives, both parties seek to blame the other for the shutdown."

The economic calendar was light at the start of the week, with just the Federal Reserve bank of Chicago's national activity index due for release.

It rose from a reading of 0.11 for November to 0.27 in December, having printed at 0.87 in October, its best reading since December 2006.

In corporate news, shares of Juno Therapeutics surged 26.82% after the firm agreed to be bought by Celgene for around $9bn in cash.

Validus was also trading on the front foot, rocketing 44.03% after news that insurance giant AIG was set to takeover the Bermudian reinsurance company for $5.56bn.

Going the other way, shares of contract chip manufacturer Sanmina plunged 23.55% after management delivered a weaker-than-expected outlook alongside its fourth quarter results.

Dow Jones - Risers

Verizon Communications Inc. (VZ) $53.45 2.99%
Goldman Sachs Group Inc. (GS) $261.52 2.11%
Intel Corp. (INTC) $45.75 2.07%
Microsoft Corp. (MSFT) $91.61 1.79%
Home Depot Inc. (HD) $204.45 1.55%
Visa Inc. (V) $124.33 1.33%
JP Morgan Chase & Co. (JPM) $114.33 1.17%
Wal-Mart Stores Inc. (WMT) $105.45 1.10%
Travelers Company Inc. (TRV) $139.33 1.09%
Chevron Corp. (CVX) $132.52 0.96%

Dow Jones - Fallers

Nike Inc. (NKE) $66.39 -1.22%
Apple Inc. (AAPL) $177.00 -0.82%
General Electric Co. (GE) $16.17 -0.55%
United Technologies Corp. (UTX) $135.21 -0.51%
3M Co. (MMM) $247.30 -0.35%
Merck & Co. Inc. (MRK) $61.25 -0.05%
Pfizer Inc. (PFE) $36.93 -0.03%
McDonald's Corp. (MCD) $176.21 0.05%
Boeing Co. (BA) $338.15 0.08%
Unitedhealth Group Inc. (UNH) $243.56 0.09%

S&P 500 - Risers

FirstEnergy Corp. (FE) $32.47 10.44%
Frontier Communications Co. (FTR) $8.53 9.78%
Wynn Resorts Ltd. (WYNN) $195.23 8.68%
Halliburton Co. (HAL) $56.42 6.40%
Tenet Healthcare Corp. (THC) $18.10 4.99%
TripAdvisor Inc. (TRIP) $37.20 4.94%
Devon Energy Corp. (DVN) $44.81 4.57%
Schlumberger Ltd. (SLB) $79.76 4.41%
Archer-Daniels-Midland Co. (ADM) $42.75 4.37%
Anadarko Petroleum Corp. (APC) $60.72 4.33%

S&P 500 - Fallers

Chipotle Mexican Grill Inc. (CMG) $330.00 -4.03%
Symantec Corp. (SYMC) $26.54 -3.35%
GameStop Corp. (GME) $17.55 -3.20%
AES Corp. (AES) $11.39 -3.15%
Qorvo, Inc. (QRVO) $66.34 -3.01%
Ball Corp (BLL) $37.76 -2.48%
Dentsply International Inc. (XRAY) $60.80 -1.86%
Harris Corp. (HRS) $143.15 -1.85%
Hasbro Inc (HAS) $90.86 -1.84%
Broadcom Limited (AVGO) $262.11 -1.61%

Nasdaq 100 - Risers

Wynn Resorts Ltd. (WYNN) $195.23 8.68%
Netflix Inc. (NFLX) $227.58 3.23%
eBay Inc. (EBAY) $39.58 2.99%
Biomarin Pharmaceutical Inc. (BMRN) $91.71 2.91%
Liberty Interactive Corporation QVC Group (QVCA) $27.47 2.61%
Amazon.Com Inc. (AMZN) $1,327.31 2.53%
Vertex Pharmaceuticals Inc. (VRTX) $161.91 2.49%
Facebook Inc. (FB) $185.37 2.25%
Texas Instruments Inc (TXN) $119.44 2.23%
Dish Network Corp. (DISH) $46.26 2.21%

Nasdaq 100 - Fallers

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $235.01 -3.74%
Symantec Corp. (SYMC) $26.54 -3.35%
Dentsply International Inc. (XRAY) $60.80 -1.86%
Hasbro Inc (HAS) $90.86 -1.84%
JD.com, Inc. (JD) $45.26 -1.65%
Broadcom Limited (AVGO) $262.11 -1.61%
Ctrip.Com International Ltd. Ads (CTRP) $46.14 -1.52%
Align Technology Inc. (ALGN) $267.10 -0.88%
Apple Inc. (AAPL) $177.00 -0.82%


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Newspaper Round Up

Tuesday newspaper round-up: Bookies, cyber-attacks, builders' warning, Barclays

Big bookmakers are weighing up the possibility of legal action against the government after suggestions that ministers have decided to cut the maximum stakes on betting machines from £100 to £2. The reports spooked investors, who had been forecasting a cut in the maximum stake to £20. - The Times

The head of the UK's National Cyber Security Centre has warned that a major cyber-attack on the UK is a matter of "when, not if", raising the prospect of devastating disruption to British elections and critical infrastructure. Ciaran Martin said the UK had been fortunate to avoid a so-called category one (C1) attack, broadly defined as an attack that might cripple infrastructure such as energy supplies and the financial services sector. - Guardian

Britain is one of only three housing markets in the developed world in which house prices are not likely to rise this year, one of the world's biggest credit ratings agencies has claimed. Fitch Ratings, which produces an annual outlook on the housing market for 22 countries, said that average house prices in the UK would be flat in 2018 because of stretched affordability, low income growth and financial services jobs being relocated to the rest of Europe. - The Times

The nation is running out of brickies, chippies and sparkies just as it embarks on the biggest housebuilding push in a generation and the construction of HS2, the Hinkley Point nuclear power and expansion at Heathrow. According to the Federation of Master Builders, the skills shortage ?" the failure to find the number of people qualified and needed to work in the industry ?" is at a record high. - The Times

The government has been accused of leaving businesses "in the dark" after it admitted that a long-expected paper on the future of financial services after Brexit may never be published. Senior figures in the City said that they had been promised a detailed position paper last autumn that would set out Britain's priorities for the financial services sector, which accounts for more than 1.1 million jobs nationwide. - The Times

Jaguar Land Rover is cutting production at its Halewood plant as economic uncertainty and concern over the future of diesel hit Britain's biggest car maker. The company's Merseyside facility, which builds the Range Rover Discovery Sport and smaller Evoque models will reduce the rate at which it turns out the cars. - Telegraph

Barclays has attracted stinging criticism over plans to give responsibility for its giant staff pension fund to its "riskier" investment banking division. Frank Field MP, who chairs the influential Work and Pensions parliamentary committee, has written to the chief of the Pensions Regulator over concerns that 280,000 savers' pensions have been put under threat by the move. - Telegraph

A little-known telecoms investor's shares jumped 130pc on Monday morning after it became the latest company to take advantage of the cryptocurrency craze and add the word "blockchain" to its name. Stapleton Capital, which listed last year and has not announced a single investment to date, said it had changed its name to Blockchain Worldwide and would explore the blockchain technology that underpins Bitcoin. - Telegraph

New subscribers drawn in by shows including Stranger Things, Bright and The Crown helped push the valuation of Netflix past $100bn on Monday for the first time. Releasing its latest quarterly figures the video streaming service announced it had added 8.33 million subscribers in the three months to the end of December. - Guardian

Nine out of 10 business leaders in Britain are upbeat about the growth prospects for their companies over the coming year despite uncertainty about the impact of Brexit, the consultancy firm PwC has reported. In its annual survey of chief executives to mark the start of the World Economic Forum in Davos, PwC found that optimism about the health of the global economy was boosting confidence. - Guardian

The UK energy system will be able to cope with the extra demand caused by the uptake of millions of electric cars, provided drivers shift their charging to off-peak times, according to new research. The number of battery-powered cars on Britain's roads will grow from around 120,000 today to 10m by 2035 and pass the 17m mark five years later, predicted Aurora Energy Research. - Guardian

A major new trade body representing the UK's £130bn hospitality sector is being proposed in a bid to get the sector's voice better heard by Government. The British Hospitality Association (BHA) and Association of Licensed Multiple Retailers (ALMR) will put their proposed merger to a vote next month and if the pair's respective members agree it will create a new body called UKHospitality. - Telegraph

 

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