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Jan 5, 2018

Morning Euro Markets Bulletin

 
ADVFN  Morning Euro Markets Bulletin
Daily world financial news Friday, 05 January 2018 10:40:17
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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 nudge up as investors await non-farm payrolls

London stocks nudged a touch higher in early trade on Friday as investors eyed the latest non-farm payrolls report out of the US, with little in the way of UK corporate or economic news flow to move markets.

At 0830 GMT, the 100 was up 0.1% to 7,699.46, while the pound was flat against the dollar at 1.3551 and 0.1% firmer versus the euro at 1.1239.

On Thursday, the Dow Jones breached the 25,000 level and the S&P 500 and Nasdaq also racked up strong gains, while the FTSE 100 closed at 7,695.88, having hit a new intraday peak just above 7,700.

Spreadex analyst Connor Campbell said: "The FTSE does currently lack the spark to take it across the 7,700 with any kind of permanence. An initial 10 point rise did briefly lead the index above that landmark level, but it needs something more substantial to work with if it is to stay there."

The main focus will be the payrolls release, especially after the ADP report on Thursday blew past expectations. It showed the private sector in the US added 225,000 jobs last months versus 185,000 in November, a figure that was revised down from 190,000. Economists had been expecting an unchanged reading.

CMC Markets analyst David Madden said traders are anticipating 190,000, and that compares with the 228,000 jobs that were added in November, while unemployment is expected to hold steady at 4.1%. Meanwhile, on a month-on-month basis, average earnings are tipped to increase by 0.3% and on an annual basis they are expected to rise by 2.5%.

"The US has been steadily creating new jobs over the past few years, but wage growth has been sluggish. If the US economy wants to step up a gear in terms of economic growth, wage growth and in turn the spending levels will need to tick up," Madden said.

The payrolls report is scheduled for release at 1330 GMT, along with the unemployment rate. There are no UK data releases of note due.

In corporate news, budget airline EasyJet flew higher as it reported a 5.5% year-on-year increase in passengers for December to 5.88m. The load factor was up to 91.4% from 89.9%. Cancellations rose to 580 from 330 a year earlier, largely due to adverse weather conditions causing around 400 and runway closures making up the majority of the rest along with industrial action.

Shipping broker Clarkson edged down after saying it expects full year results for 2017 to be in line with current views. In a brutally short statement, the FTSE 250 group confirmed results for the calendar year will be released on 12 March 2018.

In an otherwise quiet session, broker notes provided some much needed action. Centrica and United Utilities were boosted by upgrades from Credit Suisse, while Anglo American was higher after an upgrade at Jefferies.

Bookie William Hill was in the black following an upgrade to 'buy' at Canaccord.

On the downside, Ultra Electronics slumped as Berenberg reiterated its 'sell' rating on the stock following a 20% rally and following news of a delay to the UK defence review.

Insurer Admiral was hit by a downgrade to 'underweight' at JPMorgan, while recruiter Pagegroup retreated following a downgrade by Morgan Stanley and Vectura was knocked by a downgrade from Shore Capital.


Market Movers

FTSE 100 (UKX) 7,699.46 0.05%
FTSE 250 (MCX) 20,816.06 -0.02%
techMARK (TASX) 3,560.00 -0.08%

FTSE 100 - Risers

Centrica (CNA) 144.70p 2.05%
United Utilities Group (UU.) 813.40p 1.70%
Anglo American (AAL) 1,622.20p 1.07%
GKN (GKN) 326.10p 0.77%
Micro Focus International (MCRO) 2,572.00p 0.70%
Burberry Group (BRBY) 1,764.50p 0.63%
Sainsbury (J) (SBRY) 243.60p 0.62%
Glencore (GLEN) 393.40p 0.61%
GlaxoSmithKline (GSK) 1,347.80p 0.61%
SSE (SSE) 1,306.50p 0.50%

FTSE 100 - Fallers

Admiral Group (ADM) 1,863.00p -3.40%
Marks & Spencer Group (MKS) 306.40p -0.78%
BAE Systems (BA.) 569.60p -0.77%
Direct Line Insurance Group (DLG) 363.70p -0.76%
Fresnillo (FRES) 1,393.50p -0.50%
ITV (ITV) 169.75p -0.47%
RSA Insurance Group (RSA) 621.80p -0.35%
Rolls-Royce Holdings (RR.) 856.20p -0.35%
Mediclinic International (MDC) 630.20p -0.35%
Unilever (ULVR) 4,057.00p -0.34%

FTSE 250 - Risers

William Hill (WMH) 328.10p 2.40%
Equiniti Group (EQN) 274.00p 2.05%
Inmarsat (ISAT) 477.40p 1.77%
Sophos Group (SOPH) 608.94p 1.41%
Intermediate Capital Group (ICP) 1,191.00p 1.28%
BTG (BTG) 758.50p 1.07%
Genus (GNS) 2,458.00p 0.90%
Computacenter (CCC) 1,186.00p 0.85%
Kaz Minerals (KAZ) 891.40p 0.84%
Wizz Air Holdings (WIZZ) 3,644.00p 0.75%

FTSE 250 - Fallers

Ultra Electronics Holdings (ULE) 1,273.00p -8.42%
Pagegroup (PAGE) 446.20p -1.93%
Sanne Group (SNN) 785.00p -1.75%
Inchcape (INCH) 779.00p -1.70%
Vectura Group (VEC) 118.34p -1.54%
esure Group (ESUR) 247.00p -1.44%
National Express Group (NEX) 376.40p -1.41%
ZPG Plc (ZPG) 330.80p -1.25%
CYBG (CYBG) 328.00p -1.20%


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Europe Market Report
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Europe midday: Stocks continue to power higher

Stocks are continuing to power ahead come midday on the back of strong survey data out of the euro area and despite a renewed move higher in the single currency.

According to IHS Markit, service sector activity in the Eurozone accelerated in December to its fastest clip in more than six-and-a-half years, leaving a composite gauge for both factory and services pointing at the highest annual trend since 2006.

"A stellar end to 2017 for the Eurozone rounded off the best year for over a decade, continuing to confound widely-held fears that rising political uncertainty would curb economic growth," said Chris Williamson, chief business economist at IHS Markit.

As of 1228 GMT, the benchmark Stoxx 600 was ahead by 0.67% or 2.64 points at 392.86, alongside a rise of 1.11% or 144.74 points to 13,122.25 for the German Dax and an advance of 2.09% or 458.67 points to 22,363.92 on the FTSE Mibtel.

Pacing gains on the latter was stock in Fiat Chrysler and Ubi Banca, with the former apparently boosted by the outlook for sales on the other side of the Pond thanks to recently approved tax cuts.

From a sector standpoint, Banks (1.44%) and Construction (1.73%) were among the best performers on the Stoxx 600.

Meanwhile, euro/dollar was again moving higher, adding 0.42% to 1.2066.

IHS Markit's euro area services sector Purchasing Managers' Index printed at 56.6 last month, up from a preliminary reading of 56.5 and a print of 56.2 for the month before.

Similarly, the composite PMI for December from the same survey compiler was marked up from an initial reading of 58.0 to 58.1.

Acting as a backdrop, Caixin's Chinese services PMI shot up from a reading of 51.6 in November to 53.0 for December.

Later in the day, at 1330 GMT the Department of Labor will release its latest initial weekly unemployment claims figures.

Potential M&A was again dominating the corporate headlines; according to Reuters, Nestle and the private equity owners of Stada were readying bids for Merck KGaA's consumer health arm.

Further north, in Germany Volkwagen was reportedly in negotiations to buy a stake in GAZ, a Russian light commercial vehicle manufacturer.


Hargreaves Lansdown

Top of the stocks

Number of Deals Bought

Place EPIC Equity name %
1 UKOG UK Oil & Gas Investments plc 2.93
2 LGEN Legal & General Group plc 1.78
3 SOPH Sophos Group plc 1.57
4 SXX Sirius Minerals plc 1.51
5 IQE IQE plc 1.50
6 XBT Provider AB 1.48
7 GSK GlaxoSmithKline plc 1.36
8 XBT Provider AB 1.15
9 XBT Provider AB 1.12
10 LLOY Lloyds Banking Group plc 1.08

Number of Deals Sold

Place EPIC Equity name %
1 UKOG UK Oil & Gas Investments plc 2.75
2 LLOY Lloyds Banking Group plc 2.05
3 IQE IQE plc 1.35
4 GLEN Glencore plc 1.22
5 XBT Provider AB 1.19
6 PURP PurpleBricks Group plc 0.94
7 BP. BP Plc 0.92
8 IWG IWG plc 0.91
9 RDSB Royal Dutch Shell Plc B Shares 0.85
10 RIO Rio Tinto plc 0.83

Cryptocurrencies Report

Top Cryptocurrencies

# Name Market Cap($) Price(%) Change Price Graph(3m)
1 Bitcoin (BTC) 276,284,974,120 15,915.95 +6.49%
2 Ripple (XRP) 130,845,335,635 2.81 -1.45%
3 Ethereum (ETH) 101,101,131,020 999.4 +1.36%
4 Bitcoin Cash / BCC (BCH) 41,603,213,085 2,403.34 +3.36%
5 Cardano (ADA) 27,120,493,595 1.11 -15.85%

US Market Report

US close: Dow powers through 25,000 as records tumble

US shares continued their powerful start to the new year with the Dow Jones index breaching 25,000 points for the first time.

At the close the Dow was up 0.61% or 152 points to 25,074, led by advances in IBM and Goldman Sachs, alongside a rise of 0.4% or 10.85 points for the S&P 500 to 2,724 and an increase of 0.18% or 12.38 points to 7,078 for the Nasdaq Composite.

Stoking buying interest, consultancy ADP reported a 250,000 person increase in private sector hiring during December, outpacing a consensus forecast for a 190,000 person jump.

CMC Markets analyst David Madden said the upbeat outlook from the Federal Reserve minutes investor sentiment.

"The minutes from the latest Fed meeting last night showed that US central bankers predict a tick up in economic activity from the tax reforms introduced by President Trump," he said.

In other economic news, initial jobless claims increased by 3,000 to 250,000 over the week ending on 30 December, according to the Department of Labor (consensus: 230,000).

In corporate news, electric car maker Tesla was in the red after saying late on Wednesday that it delivered fewer vehicles than expected in the fourth quarter and pushing back its production target for the Model 3

Elsewhere, Intel Corp retreated after the technology company said on Wednesday that its chips have a security vulnerability that will require software patches. Sector rival AMD on the other hand rose on the news.

Shares of agricultural giant Monsanto were also in demand despite posting first quarter adjusted earnings per share of 41 cents cents on the back of $2.66bn in revenues, both of which were shy of analysts' forecasts.

The owner of Victoria's Secret, L Brands, plummeted after the firm lowered its guidance for its fourth quarter EPS to roughly $2.0, from a range of between $1.95 to $2.10.

Sears Holdings fell after announcing plans to close more than 100 Sears and Kmart stores in March and April of this year while Macy's shares were also lower as it reported an increase in its holiday same-store sales, but also said it would be closing outlets in early 2018.

Walgreens Boots Alliance shares were down 5.2%, despite a 4.1% rise in first quarter sales year on year. The company reported lower sales from its UK Boots pharmacy chain.

Dow Jones - Risers

International Business Machines Corp. (IBM) $161.60 4.76%
Dowdupont Inc. (DWDP) $74.35 3.41%
General Electric Co. (GE) $18.53 3.09%
Exxon Mobil Corp. (XOM) $86.66 1.92%
American Express Co. (AXP) $100.83 1.91%
United Technologies Corp. (UTX) $130.33 1.69%
Merck & Co. Inc. (MRK) $57.09 1.55%
Unitedhealth Group Inc. (UNH) $224.56 1.54%
Caterpillar Inc. (CAT) $159.38 1.49%
Visa Inc. (V) $116.14 1.42%

Dow Jones - Fallers

Intel Corp. (INTC) $44.51 -1.67%
Verizon Communications Inc. (VZ) $52.67 -1.61%
Cisco Systems Inc. (CSCO) $39.02 -0.38%
Boeing Co. (BA) $296.55 -0.10%
Nike Inc. (NKE) $63.47 -0.02%
Chevron Corp. (CVX) $127.80 0.17%
Goldman Sachs Group Inc. (GS) $256.52 0.33%
McDonald's Corp. (MCD) $173.82 0.35%
Travelers Company Inc. (TRV) $132.54 0.42%
Walt Disney Co. (DIS) $112.28 0.43%

S&P 500 - Risers

SCANA Corp. (SCG) $46.40 19.37%
Transocean Ltd. (RIG) $11.83 8.14%
Under Armour Inc. Class A (UAA) $15.94 6.05%
Apache Corp. (APA) $46.81 5.67%
Carmax Inc. (KMX) $68.24 5.37%
Hess Corp. (HES) $50.41 5.35%
Schlumberger Ltd. (SLB) $73.12 5.18%
Noble Energy Inc. (NBL) $31.72 5.07%
Stericycle Inc. (SRCL) $71.00 4.98%
Chipotle Mexican Grill Inc. (CMG) $307.45 4.95%

S&P 500 - Fallers

L Brands Inc (LB) $51.00 -14.84%
Macy's Inc. (M) $24.44 -7.11%
Kroger Co. (KR) $26.94 -4.81%
Dominion Energy Inc. (D) $76.73 -4.42%
Federal Realty Inv Trust (FRT) $128.51 -3.92%
Public Service Enterprise Group Inc. (PEG) $49.08 -3.75%
Tenet Healthcare Corp. (THC) $15.39 -3.75%
Macerich Co (MAC) $64.12 -3.74%
Urban Outfitters Inc. (URBN) $34.37 -3.55%
Gap Inc. (GPS) $32.69 -3.48%

Nasdaq 100 - Risers

Micron Technology Inc. (MU) $46.89 4.25%
Workday, Inc. (WDAY) $109.21 3.84%
Mylan Inc. (MYL) $44.34 2.78%
Autodesk Inc. (ADSK) $112.03 2.42%
Xilinx Inc. (XLNX) $70.64 2.02%
Sirius XM Holdings Inc (SIRI) $5.30 1.82%
Intuit Inc. (INTU) $161.92 1.73%
Cintas Corp. (CTAS) $161.00 1.63%
Cadence Design Systems Inc. (CDNS) $43.62 1.61%
Cognizant Technology Solutions Corp. (CTSH) $72.69 1.59%

Nasdaq 100 - Fallers

Walgreens Boots Alliance, Inc. (WBA) $71.67 -5.09%
Liberty Interactive Corporation - Series A Liberty Ventures (LVNTA) $56.24 -2.67%
Regeneron Pharmaceuticals Inc. (REGN) $383.51 -2.61%
Incyte Corp. (INCY) $98.39 -2.57%
Electronic Arts Inc. (EA) $107.11 -2.41%
Biomarin Pharmaceutical Inc. (BMRN) $89.98 -2.28%
Celgene Corp. (CELG) $106.99 -1.97%
Intuitive Surgical Inc. (ISRG) $376.80 -1.83%
Intel Corp. (INTC) $44.51 -1.67%


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Newspaper Round Up

Friday newspaper round-up: Investment banks, Colman's, diesel cars

Investment banks earned a record of nearly $104bn (£76.7bn) in fees globally last year from work advising companies on more than $3.5tn worth of takeovers and mergers. Globally, banks billed their clients for $103.9bn worth of fees for their work, a 16% increase on 2016 and the highest yearly total since Thomson Reuters began collating data in 2000. – Guardian

The factory that has been making Colman's Mustard in Norwich for nearly 160 years is to close, with the loss of local jobs. Parent company Unilever said the Carrow Works site, where Colman's has been made since 1858, would shut by the end of 2019. Unilever is seeking to keep Colman's historical links with Norwich by retaining production and packing of mustard powder, the mustard milling process and mint processing at a new site in the area, in partnership with local farmers. ?" Guardian

New cars sold in Britain last year were more harmful to the environment than those in 2016 because of the "demonisation" of diesel. Data from the Society of Motor Manufacturers and Traders (SMMT) revealed that average CO2 emissions from cars sold last year were higher than in 2016, reversing a near 20-year decline. The increase ?" to 121.04 grams of CO2 per kilometre from 120.1g/km ?" is being blamed by the trade group on the backlash against diesel vehicles, which pump out less CO2 than petrol vehicles. ?" Telegraph

Facebook founder Mark Zuckerberg has pledged to dedicate the next year to fixing the social network, admitting that a barrage of scandals means it hast lost the faith of users and governments.In a New Year's message posted on Facebook, he said he would be dedicating 2018 to repairing the company's reputation following a year in which it has been attacked over fake news, Russian political meddling and allegations that social media can be detrimental to people's mental health. ?" Telegraph

The administrators of the collapsed recruitment agency that failed to pay the minimum wage to more than a thousand Sports Direct workers are pursuing debts owed by its directors. Qualitycourse, which traded as Transline Group, collapsed into administration in May and the main business was sold immediately to Russell Taylor Group leaving a rump in the hands of Deloitte, the administrators. In a report posted at Companies House last week Deloitte said that it would "continue to pursue the recovery of the directors and related company loan accounts". ?" The Times

Households' appetite for debt slowed sharply in November in a sign that consumers may be becoming cautious after a two-year credit binge and an increase in interest rates. Official figures from the Bank of England showed that unsecured consumer lending grew by 8.5 per cent in November on an annualised three-month basis, down from 9.3 per cent in the three months to October and the weakest since June 2015. For the 12 months to November the rate slowed to 9.1 per cent, the weakest on that measure since December 2015. ?" The Times


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